This policy/procedure is designed to comply with state regulations and guidelines and to assist management in carrying out their responsibilities regarding the accountability for university equipment, including:

Reporting of changes in equipment status.

Tracking of fixed assets.

Scope

Definitions:

University Equipment - For purposes of this policy, university equipment is defined as non-consumable, movable items with a useful life of one year or more.  Equipment items are used in normal departmental operations and are not for resale purposes. Equipment items are generally complete in themselves (i.e., do not become a component item and do not lose their identity).

Fixed Assets - For purposes of this policy, fixed assets are defined as those non-consumable university equipment items with a useful life of one year or more and a cost of $2500 or more. Computers are considered fixed assets regardless of cost.

Note:  In determining whether equipment meets the fixed asset definition (i.e., cost exceeds $2500 or it is a CPU or laptop computer):

1. For donated equipment items, the fair market value at the time of donation determines whether the item meets the fixed asset definition.
2. For other equipment items, the initial acquisition cost determines whether an item meets the fixed asset definition.  The initial acquisition cost includes the total of the following, if all these costs are on the same initial order:
   1. Purchase price of the equipment, and
   2. Reasonable and necessary expenses (such as shipping charges, tax, start-up or installation if applicable) to prepare the equipment for its intended use, and
   3. Accessories and component parts (excluding software) for the equipment.
   4. To meet the fixed asset definition, the total of these costs must equal at least $2500 or be a computer.
3. Items with an initial acquisition cost of less than $2,500 are not defined as fixed assets, even when a subsequent addition or improvement to the equipment item causes the cost to exceed $2500.  Computer peripherals will not change the fixed asset acquisition cost either.

Accountability for University Equipment

The individual charged with budget and expenditure authority (hereafter called the Custodian) is responsible for the appropriate use, safeguarding, and tracking of all university equipment assigned to his/her respective department, whether or not the equipment meets the fixed asset definition.

Fixed Asset Tracking and Tagging

All university equipment meeting the fixed asset definition is tracked in the university’s computerized fixed asset system by Fixed Assets.   A UNCW fixed asset tag number is attached or assigned to such equipment for inventory and identification purposes.  If equipment meeting the fixed assets definition is not tagged within a reasonable time after receipt, the owning department is responsible for notifying the Fixed Assets Assistant.  Once items have been tagged, it is important not to remove, relocate, or damage fixed asset tags.

Equipment not meeting the fixed asset definition (i.e., cost is under $2500 or is not computer) is not tracked in the university’s computerized fixed asset system and a fixed asset tag number is not attached or assigned to the equipment, even when a subsequent addition or improvement to the item causes the cost to exceed $2500. However, such equipment items are considered state property and the Custodian is responsible for this equipment which is subject to random selection for audit.

Receipt of Equipment as a Gift

All non-cash gifts to the university shall be coordinated with University Advancement prior to receipt in accordance with Procedure ADV 1.40.  If university tracking of the gift is required, the Director of Purchasing Services, in cooperation with the department receiving the gift, is responsible for establishing the fair market value of the gift for reporting purposes.

Grant Equipment

Grant equipment is managed separately by the Department of Sponsored Programs until assigned to the university at the end of the grant period. The Department of Sponsored Programs must approve any change in the status of grant-supported equipment.  Prior to the transfer of grant-supported equipment, the Office of Sponsored Programs should be consulted, as the sponsor may have imposed restrictions on the use of such equipment.

Fixed Asset Inventory and Audit

Departments are required to perform a physical inventory of fixed assets on an annual basis.  During the year, the Internal Audit Office or Fixed Assets may perform random audits to ensure university compliance with state regulations.

Changes in Fixed Asset Listings

The Custodian is responsible for notifying Fixed Assets via a Movable Equipment form whenever fixed asset items are transferred to another department or relocated so that fixed asset records may be appropriately adjusted.

In addition, the Custodian is responsible for notifying Fixed Assets in accordance with the guidelines listed below when any equipment items are sent to Surplus Property for disposal, lost, stolen, or traded in.

Disposal of University Equipment Through Surplus Property

University equipment (including software media) that is no longer needed by a department cannot be thrown away or discarded.   If not transferred directly to another university department, all university equipment regardless of cost must be sent to Surplus Property for disposal.  (See Procedure AUX 9.20.)   A Movable Equipment form is required to handle the disposal through Surplus Property, whether or not the equipment has a fixed asset tag.

(See Procedure statement 2 for additional information on the disposal of software.)

Lost or Stolen Equipment

The Authorized University Official is responsible for notifying University Police immediately if equipment is lost or stolen, whether or not the equipment has a fixed asset tag.   In addition, a Movable Equipment form must be prepared and forwarded to Fixed Assets, with the police report attached. The Fixed Assets Assistant will report missing equipment to the Senior Officers.

(See PSD 1.10 for additional information concerning the theft of university property.)

A list of all missing university equipment is circulated in conjunction with the annual physical inventory of fixed assets for two years.  If any missing equipment is found, departments are responsible for notifying the Fixed Assets Assistant.

Missing fixed assets that are reported as lost remain on the department’s fixed asset inventory until the missing equipment list has been circulated with the annual physical inventory the second year. If not found at that time, the equipment is declared permanently lost and removed from the department’s fixed asset inventory.

Fixed assets reported as stolen are immediately removed from the department’s fixed asset inventory.

Replacement or Trade-In of Equipment

When equipment items are returned to the vendor for repair or replacement, departments must handle such returns through Purchasing Services, in accordance with Procedure AUX 4.20.

When an equipment item is traded in, the department must notify Fixed Assets on a Movable Equipment form if either the cost of the old item or the cost of the new item (including the trade-in allowance) meets the fixed asset threshold of $2,500 or is a computer in order that the fixed asset records may be adjusted.

Temporary Relocation of Equipment

Departments are required to maintain a current record of any temporary relocation (using the Equipment Temporary Check-Out List or comparable form) whenever equipment is removed from the custody of the department or the employees to which the equipment is normally assigned, regardless of whether or not the equipment meets the fixed asset definition.

Equipment may be temporarily relocated with prior department head approval.  Except for repairs, the temporary removal of equipment is authorized only for university departments, employees, or for members of the SGA (when SGA equipment is involved).   Off-campus use should be for work on a university assignment.

Removal of university equipment for off-campus use without department head approval may result in the individual being prosecuted for misappropriation of state property and/or larceny.  University equipment used off campus or loaned to another campus department or activity is subject to immediate return if requested by university officials, state auditors, or other state agencies.

Personal Use

Items purchased with university funds are the property of the state and are not intended for personal use.