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Capital Equipment Policies and Procedures

The mission of the Capital Equipment Program is to provide timely and accurate capital asset information that supports departments with the tagging, tracking and reporting of capital equipment on campus and to ensure that federal acquisition, funding and disposal regulations are met. Accurate maintenance of property records is essential in order to assure safeguarded assets, financial accountability, reporting accuracy, adequate insurance coverage and efficient utilization of property already on hand.

Definition

Capital equipment records are maintained for those items which individually cost $5,000 or more and have a useful life of one year or more. Capital acquisitions are identified in PeopleSoft and e-commerce orders and then transferred to the asset inventory program. Purchasing issues bar coded tags to the asset's owner for affixing to the equipment and performs annual inventories. Additional information is provided in the Capital Equipment Definitions.

Responsibilities

The central responsibility for maintaining the University's capital equipment records was transferred from ORPA to the Treasurer's Office on July 1, 1991. The Treasurer's Office manages the capital equipment program in the Purchasing Department.

The decision to dedicate additional resources to the management of capital assets was due to government and generally accepted accounting procedures that require the University to maintain detailed inventory records. The Purchasing Department uses an asset management program that identifies capital acquisitions in the electronic Purchasing Systems and transfers pertinent data regarding the asset to the capital asset inventory program. Bar coded tags are sent by Purchasing to the asset's owning Department for affixing to the equipment.

Each department is accountable for capital equipment and the accuracy of information for financial records and indirect cost calculations. Departments are responsible for properly tagging and accounting for all capital equipment owned by their department. A physical inventory of capital equipment will be performed by the Treasurer’s Office every three years in order to verify that the capital equipment listed on the inventory records can be located and is in use.

It is recommended that, before the physical inventory, each department verify, to the extent practical, that all capital equipment for which it is responsible, including that used by employees at home or off premises, can be located and is in use. Inventory records should be updated accordingly in order to minimize the number of errors in the subsequent physical inventory. Any difference between quantities determined by the physical inspection and those shown in the inventory records shall be investigated to determine the causes of the difference.

Acquisition

All capital equipment purchases are handled by the Purchasing Department, in conjunction with ORPA, in compliance with the standard purchasing policies and procedures. Title to all capital equipment vests with the University, unless otherwise stated in the specific grant terms and conditions.

Disposal

Equipment purchased on 4XXX or 6XXX accounts cannot be sold, discarded or transferred without consent of the Office of Research and Project Administration. All equipment must be disposed through the central Surplus Program. All capital equipment that is disposed must be removed from the capital equipment system on a timely basis. Please click here to submit a disposal request to Purchasing.

Purchasing and ORPA work together to establish a fair market value for equipment leaving the University with departing faculty and to ensure that the transfer takes place in accordance with sponsored projects and grants. Faculty who are not taking research grants with them to another institution may still purchase equipment bought on grants, or with University startup funds, when leaving the University, provided that both the Department and ORPA approve the request in advance. A formal procedure has been established for handling all requests for equipment leaving with departing faculty.

Contact Information

Contact the Purchasing Department with any questions or comments.