Handbook of Business Procedures
Feb. 17, 2005
Feb. 17, 2005
16.4. OTHER TRANSACTIONS RELATING TO EQUIPMENT
Equipment items stored in the Surplus Property warehouse are available, without cost, for transfer to those departments in need of such equipment. Requests must be submitted in writing to Surplus Property identifying completely the items desired and justification for their need. Surplus Property will be responsible for initiating the Report of Transfer of Equipment form (see Forms) and, upon request, will inspect the equipment to determine its suitability for further use.
Periodically, Surplus Property will review all items in storage and advise the Property Manager of those items that have been in storage for a period in excess of ninety days. The purpose for this is to review for possible removal from the inventory those items that are serviceable but have no further value to the University. If it is determined that the equipment is not needed for any department, the equipment shall be sold at a public sale.
Surplus Property is responsible for constant surveillance of the Surplus Property inventory. If an item is damaged and/or broken beyond repair, an Inventory Removal Request form (see Forms) will be initiated to remove it from the inventory.
University-owned equipment may be removed from the premises to be used only for official business of the University. When equipment is removed, the individual removing it must assume financial responsibility unless otherwise specifically relieved of such responsibility by appropriate administrative officials.
For removal of equipment other than personal computers, a Removal of Equipment from University Campus form (see Forms) must be completed, signed by the department head, and sent to Inventory Services. Insurance is placed on equipment with a value of $5,000 or more, and the premium is charged to the department's account by IDT from Inventory Services.
In instances in which the nature of the work conducted is such that the equipment must be used off campus repetitively, blanket authority will be granted in order to make frequent requests for permission unnecessary. The insurance coverage must cover the repetitive removals.
For removal of personal computers, logs must be maintained and should include the name of the employee who will have custody of the equipment, description of the equipment, inventory number(s), date checked out, estimated date to be returned, the signature of the department head, and the signature of the employee who checks out the equipment. These logs must be maintained in the department office and shall be made available for inspection by representatives the Office of Internal Audits, and Inventory Services.
A department may loan property to another department to be used for official purposes only; however, it is the responsibility of the department loaning the equipment to prepare, have signed, and distribute a Receipt for Equipment Loaned or Returned form. When property has been returned to the department that loaned it, another receipt form shall be prepared, signed, and distributed in order that the borrower may be relieved of responsibility. Forms for these purposes are available from University Supply Service.
University property may be loaned to another state agency. Such transactions are governed by the state's property accounting system. This mandates that a change in custody of property between state agencies be properly documented. Therefore, the lending of University property must be authorized in writing by the head of the department that is lending the property and a receipt is required from the agency receiving the property.
When equipment acquired from U. S. Government excess property sources is no longer needed by a department or agency, the department head or designated representative shall prepare a list of such equipment showing the following information for each item:
- Inventory number
- Excess property order number
- Date acquired
- Description of the article
- Value shown on the inventory
- Estimated actual value
- Present location
The list, with a Report of Transfer of Equipment form (see Forms), shall be sent to the Property Manager. The transferor should indicate whether the equipment is available to other departments or is for sale. To preclude wrongful disposal of equipment obtained from Government excess property sources, it is essential that the transferor apprise the Property Manager if there is any obligation to the Government agency with regard to selling or salvaging the equipment. Further, such property must not be cannibalized or otherwise disposed of prior to receiving the Property Manager's approval. If the equipment is sold, the proceeds will be deposited into an account to be administered by the Executive Vice President and Provost.
Some grants include a condition that equipment acquired with grant funds be made available for transfer upon request by the awarding agency, unless such transfer is precluded by statute. The primary reason for this type of transfer involves transfer of the principal investigator and grant to a new institution to continue the project.
Transfer of equipment to another institution must be made pursuant to a grant award that includes an authorization to assume title and establish accountability for the equipment. The transferring institution shall be required to provide the receiving institution and the awarding agency with a listing of the items of equipment, their dates of purchase, and acquisition costs. The receiving institution shall formally acknowledge receipt of the equipment and furnish copies of the acknowledgement to the transferring institution. The principal investigator should secure approval from the granting agency if the cost of transferring the equipment is to be paid from grant funds.
Equipment need not be transferred if:
- The original grantee retains the project for which the equipment was acquired and, with the approval of the awarding agency, places the project under the direction of a new principal investigator, or
- The cost of transferring the equipment as determined by the awarding agency is excessive, or
- The new grantee does not need the equipment in order to continue the project.
In order to transfer the equipment, the principal investigator shall submit a letter to the Executive Vice President and Provost, through the Dean or appropriate official, requesting approval to transfer the equipment. The letter should include the grant number and name, the name of the receiving institution, and the name and title of the official authorized to assume title to the equipment. A copy of the letter from the granting agency authorizing the transfer of the grant and equipment to the receiving institution should accompany the letter to the Executive Vice President and Provost.
A list of the equipment must be submitted with the request letter showing:
- Inventory number
- Year acquired
- Acquisition cost
The equipment shall not be removed from campus until the department chairman has received the Property Manager's approval for the transfer. At this time, the inventory number tag shall be removed and sent to Inventory Services.
It is the responsibility of the head of each department to see that accurate records are maintained concerning their departmental inventory and that changes are accurately reflected. Inventory Services will assist in this process.
If the need arises to alter the description of an item on the inventory, the department may make the change on the NV1 screen in *DEFINE, if authorized to do so. Inventory Services should be advised of any other adjustments needed.
Once a year, each department will take a physical inventory of the property assigned to it on the departmental inventory. A Physical Inventory Certification form must be completed and submitted to Inventory Services each year. The department head or designated representative will complete the Physical Inventory Certification form, noting any exceptions to the listing of property in the electronic Inventory System Instructions for conducting the annual physical inventory are available on the User Guides page of this Handbook
Departments failing to submit completed Physical Inventory Reports to Inventory Services in the Office of Accounting by the established deadline will be considered non-compliant. Non-compliant departments' inventory will be considered lost or stolen as defined in Part 16.3 F of this Handbook and will be accounted for as such.