Departments \ Property Accounting \ Explanation of Policies

Property Accounting - Explanation of Policies

B040 EQUIPMENT CAPITALIZATION – Capital equipment is equipment that has a cost which equals or exceeds $5,000 and with a useful life of greater than one year. The cost for repair or replacement parts, general maintenance, and warranty are not capitalized.

B041 EQUIPMENT FABRICATED BY DEPT. WITHIN UM – Is equipment assembled from various individual parts (Purchase Orders) that when completed operate as an individual unit.

B043 PERMANENT CHANGES EQUIP LOCATION WITHIN THE UNIVERSITY – It is required by OMB Circular A-110, to maintain accurate equipment information in the property system.

B044 CHANGE IN USE/DISPOSITION OF EQUIP PURCHASED WITH FEDERAL FUNDS – As per OMB Circular A-110, approval from the awarding agency is required for active awards. 
Contact the Office of Research Administration to obtain approval.

B045 OFF CAMPUS USE OF UNIVERSITY-OWNED EQUIPMENT - Use of university owned equipment off-campus is subject to the approval of the appropriate chairman, dean or vice president.

B046 REDISTRIBUTION OF EXCESS EQUIPMENT TO OTHER UM DEPARTMENTS - Departments should communicate any transfers of equipment to other departments.

B047 SALE, DISPOSITION OF EQUIPMENT – All sales of equipment must be negotiated, coordinated and approved by Property Surplus

B048 EQUIPMENT DONATIONS & TRANSFERS TO OTHER INSTITUTIONS – Grants and contracts are awarded to the University and not to individual investigators, therefore all equipment purchased with sponsor funds, unless otherwise specified by the grant or contract, is the property of the University.
When an investigator leaves the University, it is expected that equipment which has been purchased will continue to be needed in the ongoing research and/or educational activities of the specific department concerned, and will therefore remain at the University.
When an investigator requests that certain specialized equipment be made available for transfer to the new institution, such requests may require approval from Sponsor Programs and the department chair or dean.

B049 EQUIPMENT DELETION FROM UNIVERSITY ASSETS – This policy is used to record equipment disposals resulting from trade-ins, casualty loss, not found, beyond economical repair and/or robbery.

A trade-in occurs when a piece of equipment is returned to a vendor for value in order to obtain an updated piece of equipment or new equipment. All trade-ins of equipment purchased with sponsored funds should be verified through the Sponsor Programs Office if prior approval from the sponsor is required. Once approved the Property Administrator should be notified to delete the equipment from the inventory and advise Property Accounting to update and reflect the gain or loss on the transaction.  The PO with the new equipment must specify the trade-in amount in a separate line.  It is recommended to coordinate with surplus Office regarding trade-in value.

B050 EQUIPMENT TRANSFERS FROM OTHER INSTITUTIONS – It is the responsibility of the department to notify Property Accounting of any capital equipment transferred to the University.

B051 ACCOUNTING FOR GOVERNMENT OWNED EQUIPMENT – It is the responsibility of the Principal Investigator to maintain accurate records of all equipment acquired with federal funds.

B052 ACQUIRING FEDERAL EXCESS OR SURPLUS PROPERTY - All requests to acquire federal surplus or excess property must be submitted to the Property Accounting Office which will authorize the transaction.

B053 INVENTORY CERTIFICATION – In order to comply with federal regulations, OMB Circular A-110, it is University policy for departments to conduct an annual physical inventory and certification. 
Equipment Web System Instructions.