The Property Management Policy and Procedure Manual (PRO) provides information necessary for managing the capital assets of Oregon State University from acquisition to disposal.

Inventory Control is responsible for:

• Administration of the OSU equipment inventory system;  
• Maintaining asset records for OSU;
• Ensuring that equipment accounting transactions are reconciled with updates to the asset file;
• Performing audits and approving all changes to the asset database;
• Assigning unique inventory numbers and tags for new assets;
• Coordinating and reviewing physical inventories to ensure compliance with university, state, and sponsoring organization requirements;
• Assisting university faculty and staff with equipment procedures and inventory control;
• Producing reports for departments, administration, and sponsoring organizations as needed;
• Assisting with acquisition and recording of federal excess and federal surplus property;
• Developing accountability procedures to meet federal, state, sponsor, donor, and lender requirements;
• Preparing forms for relief of accountability of federal property due to loss, damage or destruction;
• Disposing of surplus property through the Surplus Property Program and authorizing disposal of other property as appropriate

Corrections, changes, or suggestions should be communicated to the PRO manual coordinator at 541-737-4084.

In the event of an inconsistency or conflict, applicable law and the State Board of Higher Education's policies supersede University policies and University policies supersede college, department or lower unit bylaws, policies, or guidelines.

The University reserves the right to add, amend, or revoke any of the contained rules, policies, regulations, and instructions or incorporate additional ones, with or without notice, as circumstances or the good of the University community may require.

A printout of this manual and each change to this manual is created from the original text source for the online version and retained permanently as an official record at University Archives.  Printouts of all revisions to online P&P manuals are similarly available.

A

Accountable Equipment

Property acquired for a current sponsored research project and not released unconditionally to OSU.

Activate

To cause an asset item to show up on the Banner FIS fixed asset system.

ADPE

Automatic Data Processing Equipment (usually means computing equipment).

Agency-Owned

Property owned by the sponsored agency and furnished on loan for a specific research project.

Annual

Every year, as in annual supplies valuation update.

Asset (or Fixed Asset)

Tangible, non-expendable personal property that meets the following criteria:

• Is not consumed in the normal course of business.
• Has a unit value of $5,000* or more.
• Has a useful life that exceeds one year.

* The unit cost limit does not apply in the following circumstances:

• When an item is included as an attachment to an existing asset (see attachment).
• When purchased on a grant or contract with a sponsor-mandated lower threshold.

Asset Inventory

Equipment inventory.

Asset Record

An electronic record of specific standard information maintained for each piece of equipment.

Asset Tag

A permanent identifying label or decal attached to a piece of equipment (may or may not be bar-coded).

Asset Type

A Banner code that groups similar equipment into separate categories. Each code is associated with a specific useful life for depreciation. See the Banner Code: Asset Type Code matrix on the Inventory Control website.

Attachment

Items that are an integral part of an existing capitalized asset, and necessary for the functionality or performance of that asset. Attachments must have the same title-to code as the parent asset, and must be purchased from the same funding source if title is restricted. Attachments are depreciated and disposed with the parent asset. Therefore, all attachments must be purchased and capitalized in the same fiscal year as the parent asset. The $5,000 unit does not apply to attachments.

Automatic-Pay Vendors:

Vendors paid by Accounts Payable without waiting for departmental approval.

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B

B Number

A code defining an institution within the State System of Higher Education. The Agency Number for Oregon State University is 580-300.

Biennial

Every two years, as in biennial equipment inventory.

Biennium

The two-year fiscal budgeting period used by the State of Oregon.

Book Value

The original cost of an asset. In the case of donated equipment, it is the appraised or market value at the time of the gift.

Building Number

A unique four-digit code preceded by "B" used to identify each OSU building on the space inventory. Most buildings also have a 'Code Prefix' used in conjunction with the room number to specify an asset's location in Banner. See the Banner Code: Building Code matrix on the Inventory control website.

Building Retirement

The complete demolition of a building.

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C

Cannibalize for Parts

Taking components from a piece of (usually outdated or non-functional) property for use in one or more other pieces of property (see also "salvage for parts").

Capital Asset

Capital assets are major assets that benefit more than a single fiscal period. Typical examples are land, land improvements, easements, buildings, building improvements, vehicles, machinery, equipment, works of art, historical treasures, and infrastructure.

Capital Equipment

An article of property that is not permanently attached to buildings or grounds and has an acquisition cost of $5,000 or more and a life expectancy of one year or more. Allowable acquisition costs include shipping and installation fees and all costs related to the importation of equipment from foreign countries.

Capital Expenditure Category

A group of account codes beginning with '4' used to identify expenditures for long-term assets, such as equipment, buildings, or land.

Capitalization Threshold

The minimum unit value at which an item is defined as equipment and added to the asset records (currently $5,000, except where a lower threshold is required by the research sponsor).

Capitalize

To spend funds from the capital expenditure category.

Change

Any modification to an inventory record that is currently on the OSU fixed assets inventory.

Collection

Collections of items such as antiques, artifacts, works of art, and historical treasures that meet the definition of a capital asset (value of $5,000 or more) should be recorded as capital assets. Collections are generally held for reasons other than financial gain, are protected, cared for and preserved, and are subject to an organizational policy requiring that proceeds from sales of collection items be used to acquire other items for the collection. Collections are not depreciated.

Commingling

Housing federal and non-federal property in the same location.

Component

An asset that works with another asset and in which FIS Banner can link the records to show a relationship.

Condition

The physical condition of an asset that is represented by a code.

Contract Close-Out

Completing the reporting and financial requirements of a research contract.

Contractor-Acquired

Property acquired by OSU for a sponsored research project-usually purchased with research funds.

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D

DARIC

An acronym for Defense Automation Resources Information Center (U.S. Government).

DD-1419

A Department of Defense form used to screen industrial plant equipment and NASA equipment with unit acquisition cost of $1,000 or more.

DD-1662

A Department of Defense form used for reporting value of federal property accountable to certain types of Department of Defense contracts on an annual basis.

DD-1851

A Department of Defense form used for screening Automatic Data Processing Equipment.

Delete

To remove a record from the fixed assets inventory.

Depreciate

An accounting method whereby the cost of a capital asset is apportioned over its useful life to the periods benefiting from the expenditure. OUS uses a straight-line method of depreciation, processed on a monthly basis.

Depreciation Expense

The portion of a capital asset's cost that is charged to expense each period. Please see FIS 607 Depreciation for additional information.

DIPEC

Acronym for Defense Industrial Plant Equipment Center (U.S. Government).

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E

Equipment

Generally, tangible personal property with a unit value of $5,000 or more, a life expectancy of more than one year, that is not consumed in the course of operation (unless a more restrictive definition is required by the research sponsor who furnishes the funds for equipment purchase). See also Capital Asset definition.

Equipment Record

An electronic record of specific standard information maintained for each piece of equipment.

Equipment Share Program

An OSU program identifying equipment that is not fully utilized and making it available for sharing with other OSU researchers or departments.

Executed Agreement

An agreement approved by the enabling authority, such as the university Contract Administrator.

Expendable Asset

An asset with a useful life of more than one year that does not meet the threshold for a capital asset ($5,000). Such assets are considered to be supplies.

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F

Fabrication

Building property from parts or from scratch.

FADE form

Fixed Assets Data Entry form, used for initiating "new" and "change" transactions in the fixed asset inventory file.

FASOM

The Financial Administration Standard Operating Manual (OSSHE).

Federally Accountable

Something acquired on a federal contract and still assigned to that contract by the sponsor.

Federal Excess

Federal property no longer needed by the owning agency.

Federal Surplus

Federal property no longer needed by any federal agency.

First Pass Scan

A room-to-room scan of every OSU asset label encountered (see also "initial scan").

Fiscal Year

The 12-month sequence used for accounting purposes. The State of Oregon fiscal year is July through June.

Fixed Asset

A piece of equipment that should be recorded on the fixed asset inventory.

Fixed Assets Data Entry form

A form used to approve and record new fixed asset records or changes to existing fixed asset records. Used when the change is NOT accomplished with an equipment (40101) expenditure on a Banner FIS invoice. Also referred to as the "FADE form."

Fixed Assets Transfer form

A form used to approve and record transfers of assets between responsible orgs, and/or between physical locations.

FOAPAL

Acronym for the accounting distribution code fields in the BANNER FIS system. These fields are Fund / Organization / Account / Program / Activity / Location.

Funding Source

Where the money for a project or piece of equipment came from.

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G

Gain/Loss

Upon disposal, each asset will produce a gain or loss, depending on whether the proceeds from the disposal are greater (gain) or less than (loss) the Net Book Value of the asset.

Gift

Something bestowed voluntarily and without expectation of any tangible compensation.

Government-Furnished Property (GFP)

Property furnished (loaned) by the federal government for use on a specific sponsored research project.

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H

Historic Property

Three-dimensional objects including furnishings, art objects and items of personal property which have historic significance. This designation does not include paper, electronic or other media that are classified as public records.

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I

Indirect Cost

The administrative and overhead costs associated with a sponsored research project and not charged as direct costs to the contract or grant fund.

Infrastructure

Long-lived capital assets such as streets, bridges, culverts, water distribution piping, etc., that are a part of a network of assets that can have a service potential for an extended period and that are normally stationary.

Initial Scan

Room-to-room scan of every OSU asset label encountered (see also first- pass scan).

Inventory Number

A unique asset number assigned to each asset or piece of equipment on the inventory.

Inventory Record

An electronic record of specific standard information maintained for each piece of equipment.

Investment in Plant

A Banner FIS account used with a particular fund behind the scenes to record value increases and decreases to fixed assets.

IOTB

Improvement Other Than Building.

IPE

Industrial plant equipment.

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J

K

L

Lease

An agreement for the right to use property for a specified period at a specified cost. Title remains with the lessor. At no time does the lessee build equity in the property.

Lease/Purchase

An agreement for the right to use property for a specified period at a specified cost. During the term of the lease, the lessee builds equity at a specified rate so that, at the end of the lease period, the lessee has the option of purchasing the property at a specified amount. Title to the property remains with the lessor until the lessee exercises the option to purchase.

Loaned Equipment

Property provided by an outside party for use by the institution for sponsored project or research-related activities; title to the property does not pass to the university.

Location Code

The Banner FIS code from the chart of accounts that identifies building and room number.

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M

Manual Inventory

A physical inventory conducted without bar-code scanners.

Master Copy

The copy of the inventory report to be signed by department head and returned to Property Management.

Minor Equipment

Property meeting the equipment definition except that it has a unit value of less than $5,000. See also "non-capital equipment."

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N

NASA 1018

National Aeronautics and Space Administration form used for reporting value of NASA-owned property in various categories annually.

Negative Report

Reporting that we have no records that meet the information characteristics requested (e.g., reporting to the Department of Defense that we have no agency-owned property accountable to a particular contract).

Net Book Value

The original cost of an asset less accumulated depreciation.

Non-Capital Asset

An asset that does not meet all the criteria for a capital asset, also called minor equipment. See also "expendable asset".

Non-Capital Equipment

Same as non-capital asset.

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O

OMB

Acronym for Office of Management and Budgets (U.S. Government).

ONR

Acronym for Office of Naval Research (U.S. Government).

Organized Storeroom

A segregated and controlled storeroom for supplies distributed outside the department; annual expenditures of $150,000 or value at any time of $50,000.

O-Tag

Origination tag. A unique identifier for the temporary master record created in Banner for an asset. This record is either converted to a permanent asset record or is attached to a permanent record.

OUS

Acronym for Oregon University System. Formerly OSSHE.

Ownership Code

The code on an asset record indicates whether the asset is owned by OUS, the federal government, an employee or another person or agency.

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P

PDR

Acronym for Property Disposition Request, used to request approval to remove an asset from the inventory.

Personally Owned Equipment

Equipment owned by a university employee or other private party from whom the university employee has received proper and valid authorization for use.

Personal Property

Property that is not real property (meaning real estate): movable or fixed equipment, minor equipment, supplies, etc.

Physical Inventory

A periodic inspection of everything in an inventory that includes a review of the condition - for equipment/fixed assets, physical inventory includes reconciling to the asset records.

PI

Principal investigator.

Pick-up Request

Worksheet filled out to request that property be picked up by the Surplus Property Office for disposal.

Principal Investigator (PI)

The primary person under whose name a grant or contract is awarded; the person responsible for the research and the appropriate management of award funds.

Property Control System Analysis

A biennial audit of OSU's property management system conducted by the office of Naval Research.

Property Disposition Request (PDR)

A state form used to request approval to remove an asset from the inventory.

Purge

To remove from the asset inventory items that no longer meet the equipment definition.

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Q

R

Real Property

Land and permanently affixed buildings and improvements.

Release Date

The date on which a sponsoring organization releases its interest in equipment acquired for a research project to OSU; in effect, the date they transfer equipment title to OSU.

Responsible Org or Organization

The departmental organization code used to identify what department and/or sub-group within a department is accountable for an asset.

Retired

Deleted from the property control system.

Room Number

The four-digit room number plus alpha room suffix, if any.

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S

Salvaging for Parts

Taking components from a piece of (usually outdated or non-functional) property for use in one or more other pieces of property (see also "cannibalize").

Scanners

Bar-code reading devices used to record inventory numbers and room locations for the biennial asset inventory.

Screening

To see if property is available from another source before purchasing it.

Software

The entire set of programs, procedures, and related documentation associated with a system, particularly a computer system. The Oregon Executive Department ruled in 1992 that software purchases should be considered a license, not a tangible asset. Software is only inventoried if the actual source code is purchased, and the value is above the asset threshold of $5,000. The only exception is software purchased for auxiliary or service departments, although the amortization schedule for these 'licenses' should be two to five years (depending on the expected useful life) instead of the standard five years.

SPD

Surplus Property Declaration and Pick-Up Request form used to transmit property to Surplus Property Office for disposal.

Sponsored Project

A research project funded by a sponsor outside of OSU.

Sponsoring Agency

The organization, usually a federal agency, that has supplied funds for sponsored research.

Sponsoring Organization

An organization supplying funds to OSU for a sponsored research project.

State Price Agreements

Contracts with vendors for merchandise utilized by OSU and other state agencies that include discounted prices.

STOP (Security Tracking of Office Property) Tag

Stop tags are tamper-proof security plates with a barcode and indelible tattoo. The tags are pre-printed with information that ownership of the property is permanently monitored, and explains that a police traceable tattoo is beneath the plate. Once applied to a piece of property it takes approximately 800 lbs of pressure to remove the tag. If the tag is successfully removed, it leaves a 'tattoo' on the asset with the words 'Stolen Property' and a telephone number. In the event of a loss, the police can easily identify recovered property and return it to its rightful owner. These tags are ideal for equipment that cannot be cabled down, or may be in a location that cannot be adequately secured. Laptops, projectors and small or easily portable property are excellent candidates for STOP Tags.

The STOP tag program is being coordinated by the Department of Public Safety. Tags are available at a minimal cost and Public Safety staff will apply the tags. Please call (541) 737-3010 for more information. See the STOP THEFT - Campus Security program (pdf format) for additional information.

Straight-Line Depreciation

A method that allocates an equal amount of an asset's net cost to each period of its useful life. Useful life, by asset category type, has been determined by the State of Oregon.

Sub-Account

A 2-digit code that may be recorded in the Banner Fixed Asset record to break down a department's inventory into smaller sub-groups. The code is recorded under the "make" field in the asset record. Also referred to as "PI Code".

Supplies

Expendable property, non-capital assets, and other minor equipment not meeting the capitalization threshold.

Surplus Property

Property not needed by a department within the University. Surplus property includes all excess items and materials other than items that would be typically disposed of in a wastebasket, such as scrap paper, consumed pencils and pens, etc.

Surplus Property Pickup Request

A form used to list equipment and supplies no longer needed by a department. The Surplus Office reviews this form and schedules an appointment for removal.

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T

Tag

A permanent identifying label or decal attached to a piece of equipment

Title

Legal ownership of property

Title-To Code

FIS Banner fixed asset field that identifies who has title to an asset, and whether OSU insures the asset-see also "ownership code."

Trade-in

Providing a vendor with a piece of used property in return for a credit on the purchase of a piece of new property.

Transfer

The act of changing what department or organization is responsible for an asset.

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U

Un-Scanned items

Assets not scanned with the bar-code scanner during the physical inventory.

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V

W

Write-up

An equipment inventory entry to increase the value of a particular asset to its market value at the time of acquisition.

X Y Z

Purpose

To define general guidelines for the acquisition of university-funded and sponsor-funded equipment.

 

Background Information

Inventorying equipment or fixed assets is an accounting procedure, as well as, a procedure for physically tracking assets. The creation of preliminary inventory records is an automatic part of the invoice payment process for equipment acquired with OSU-administered funds on Banner FIS.

 

Policy

Individual departments may purchase equipment using state, sponsored, affiliated foundation pass-through, and auxiliary funds. Regardless of the source of funds, all purchases must be made in accordance with applicable federal and state law and Oregon University System and OSU policies.

Equipment acquisitions may be made by purchase, installment purchase, lease/purchase, lease, loan, gift, transfer, trade, or fabrication. The equipment may be new or used. The acquisition cost must be =>$5,000 per unit/item to be capitalized as equipment (40xxx account codes). All other movable equipment of a lesser amount will be accounted for as minor equipment (202xx account codes).

Allowable acquisition costs include any costs related to the obtainment and installation of the equipment such as the purchase price, shipping, and installation fees. Also, all costs related to the importation of equipment from foreign countries [such as entry fee, broker's fee, cartage fee, custom's bond, import service fee and custom duty fees] are allowable as part of the acquisition cost.

Unallowable costs include extended maintenance, warranties and training.

Software in the purchase of equipment which is separately itemized on a vendor invoice is not capitalized. This cost is expensed as 20202 "software."

Buy, Fabricate, Lease/Rent Policy
When determining the best method to acquire equipment, the following considerations should be made:

• The method chosen should be in the best interest of the University.
• The method chosen should be the most cost effective.
• The method chosen should not be used to circumvent normal procurement procedures.

Fabrication (assembly) of a Capitalized Unit
See PRO 210 for guidance on what constitutes a fabricated piece of equipment and specific approval procedures for fabricated units.

Ways of Acquiring Ownership (Title) of Equipment
OSU may acquire ownership of equipment in several ways including, but not limited to, the following:

1. purchase or fabrication of equipment using state, affiliated foundation flow-through, or auxiliary funds,
2. purchase or fabrication of equipment using federal or non-federal sponsored funds for which the award document states that OSU retains title upon receipt of the equipment,
3. purchase or fabrication of equipment using federal or non-federal sponsored funds for which equipment title is vested with the sponsor and subsequently transferred to OSU at the completion of the project,
4. donation of equipment,
5. lease/purchase of equipment after the lease/purchase option has been exercised. Normally, lease/purchase equipment is treated as university equipment when the first installment payment is made.

Ways of Acquiring Use of Equipment (not Title)
OSU may acquire the use of equipment, though not ownership, by receiving the following:

• government-furnished property (GFP), with title vesting with the government,
• loaned equipment, with title remaining with the lender, or
• purchased or fabricated equipment using federal or non-federal sponsored funds for which equipment title remains vested with the sponsor.

Purpose

To ensure that equipment purchases are made in accordance with applicable federal and state law; and Oregon University System and Oregon State University policies.

 

Applicability

All equipment (other than vehicles – see PRO 501: Vehicles) purchased with state, local, or sponsored funds for which title vests with OSU or the sponsor upon acquisition.

 

Policy

Equipment purchases using state, local, or sponsored funds must be made in accordance with applicable federal and state law and Oregon University System and OSU policies.   Equipment purchases over $5,000 must be made through the Purchasing department.  Use of the procurement card for purchases associated with account code 40199 Construction in Progress [Equipment] is allowable.

Departments may purchase equipment out of multiple indexes.  However, this practice is prohibited in two instances:

1. Equipment purchased by Service Centers and Auxiliaries must be funded solely by the unit and must be used solely in support of the service department for which it was purchased.
2. Equipment purchased on a grant or contract where the sponsor retains title, either fully or conditionally, must be purchased solely from that grant or contract.

Equipment Purchased with University or Sponsored Funds

Coding Requisitions
A departmental requisition must reflect the proper account code and must be used to classify purchases.  See GCG 204-02:  Cost Classification: Assigning Account Codes and GCG 205: Expenditure Account Codes in the Grant, Contract & Gift Accounting Manual because sponsors with grants and contracts may have a lower threshold for equipment purchases. 

Determination of Factors Affecting Installation or Use
The requesting department is responsible for determining all factors affecting the installation or use of equipment, including, but not limited to:

• utilities availability
• space requirements
• floor loading capacity, and
• building accessibility

Obtaining Approval for the Purchase of Used Equipment
Before purchasing used equipment, an individual must obtain approval from the department chair, dean, director, or designee. Approval may be given in a memo or as a statement on the requisition.

Capital Budget
Most purchases require equipment to be in an approved capital budget. If the equipment is not budgeted, the supervisor’s or sponsor’s approval may be necessary before purchasing.

Equipment Purchased with Sponsored Funds

See PRO 902-02: Ordering, Receiving & Tagging.

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Procedure

Equipment Costing $5,000 or More (General)

Responsible Party	Action
Department:	Prepare a departmental requisition, obtain necessary approvals and send the document to the Purchasing department using the appropriate transaction account code: 40101  Equipment 40102  Livestock 40103  Art/Museum Collections 40104  Vehicles 40199  Asset under Construction 40201  Vessels
Purchasing Department	Ensure document is prepared properly. Solicit bids or quotes on the item from vendors. Prepare purchase order in FIS Banner on commodity level accounting.
Department:	After receiving equipment (see PRO 301), process the invoice in FIS Banner. Include appropriate information in the text field for the asset record.  See PRO-EX1: Creating an Asset Record from a Banner Invoice.
Property Management	Create asset record from invoice information and sends department a bar code tag for equipment.

Equipment Costing $5,000 or More (Service Centers and Auxiliary)

Responsible Party	Action
Department	Equipment purchases are an exchange of a capital item (cash) for a capital item (equipment).  Prepare a departmental requisition, obtain necessary approvals and send the document to the Purchasing department. Note: Process Purchase Orders and Invoices on an operating index using account code 40199, 'Asset Under Construction.'
Purchasing Department	Ensure document is prepared properly. Solicit bids or quotes on the item from vendors. Prepare purchase order in FIS Banner
Department	Process payment for new asset on an operating index and capital account code 40199. A journal voucher is submitted simultaneously moving the expense from the operating index and 40199 to the unit’s fund code and using the appropriate capital asset account code: A8011   Capital Equipment A8012   Vehicles A8015   Vessels A8031   Collections A8032   Works of Art and Historical Treasures A8042   Library Books (General) The journal voucher number should be referenced on the invoice's text, and vice versa. The journal voucher should contain the necessary information to create the asset record. See PRO-Ex2: Completing a Journal Voucher.
Property Management	Create asset record from journal voucher information and sends department a bar code tag for equipment.

NOTE:  See PRO 401: Depreciation of Equipment for additional information when replacing existing equipment.

Equipment Costing $5,000 or More Purchased with Agricultural Research Foundation (ARF) or OSU Foundation (OSUF) Funds

Responsible Party	Action
Department	Prepare a departmental requisition, identifying the funds to be used and appropriate transfer index, obtain necessary approvals and send the document to the Purchasing department.
Purchasing Department	Ensure document is prepared properly. Solicit bids or quotes on the item from vendors. If applicable, prepare purchase order in FIS Banner. Note: Departments do not have delegated authority to make purchases over $5,000 unless approved by the Purchasing Department, regardless of the source of funds.
Department	After receiving equipment (see PRO 301), process the invoice in FIS Banner or submits check request to ARF or OSUF. If Banner is used, then include appropriate information in the text field for the asset record.  See PRO-EX1: Creating an Asset Record from a Banner Invoice. If Banner is not used, then submit a Fixed Asset Data Entry (FADE) form to Property Management including a copy of the invoice and the check request.  FADE forms are available on the Inventory Control website.  See PRO-Ex3 for a sample FADE form.
Property Management	Create asset record from invoice information and sends department a bar code tag for equipment.

 

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Cross Reference

See the Procurement and Contract Services (PaCS) Website for more information on purchasing requirements.

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Additional Information

Automatic-pay vendors
Due to a high volume of OSU purchases, certain vendors have been designated "automatic pay" by Accounts Payable. They submit invoices directly to Accounts Payable, where they are input and paid without routing to departments for approval. The expense is then distributed to departmental indexes using journal vouchers. Accounts Payable makes every effort not to use automatic payments for equipment expenditures-such invoices, when identified, are forwarded to department accounting personnel for payment through the regular Banner invoice process.

To assist Accounts Payable in making that identification, the person making the purchase should give the vendor the 40101 account code along with the Banner index code to be charged. Despite all efforts, we recognize that the information will not always get to the vendor, nor will it always get from the vendor to Accounts Payable. Department accountants should review automatic payments as they occur and enter journal vouchers to correct any incorrectly coded purchases.

Oregon State University VISA procurement card purchases
The VISA procurement cards may not be used for the purchase of equipment or equipment upgrades. VISA instructions detailing the restrictions on individual purchases, etc. are supplied with each card. Please refer to these for further information.

Wire Transfers
Wire transfers do not create an origination tag in the fixed asset module.  If a payment must be made via wire transfer, use account code 40199 and a journal voucher to redistribute to the appropriate transaction code.

Multiple Invoice Function in Banner
The multiple invoice function in FIS Banner under FAAINVE does not create an origination tag in the fixed asset module.  If a payment must be made via the multiple invoices function, use account code 40199 and a journal voucher to redistribute to the appropriate transaction code.

Purpose

To allow the purchase of equipment through installment purchases.

Background Information

Installment-Purchases may be desirable to extend the payout of capital Purchases over time instead of lump sum purchasing. However, installment-purchases are avoided because of the additional costs incurred in the form of interest.

Policy

Departments are permitted to make installment purchases of equipment, regardless of the funding source. All installment purchases must be approved by the Procurement and Contract Services (PaCS) group. Installment purchases/financing in excess of $100,000 require that the financing be acquired separately from the equipment through a third-party financing bid administered by the State of Oregon Department of Administrative Services (DAS).

An installment purchase made with grant funds must have the purchase (payment of installments) completed within the time period of the grant. (If a grant is for 3 years and equipment is purchased on an installment plan in the first month of the grant, then the payment schedule cannot be longer than 36 months.)

The Installment purchase option should not be used when the ownership of the equipment is Federally-Owned (FN) or Other-Owned (OI).

Title to the equipment passes to OSU with the first payment. The first payment is usually coded "equipment," and the item is added to inventory at its full value (total of all principal payments) at the same time. The remaining payments are coded "principal installment payments" and "interest expenses" as appropriate (see PRO-Ex10: Account Codes).

Procedure

Installment Purchases - General Fund Transactions

Responsible Party	Action
Department	Complete and submit a requisition for the proposed installment purchase of equipment to PaCS.
PaCS	Ensure requisition is properly completed. Solicit bids or quotes on the item from vendors. Select vendor and create purchase order. Notify Business Affairs of approved installment purchase and market value of purchased assets.
Department:	Receive equipment and invoice. Process FIS Banner invoice: Code the initial payment as 40101 to initiate the inventory record, exclusive of any interest. Add text: (1) providing the inventory information for the creation of the asset record, and (2) noting the market value of the purchased asset. Code the subsequent payments as 40113: Installment-Purchase, with the interest portion coded 28810: Interest Expense. Each payment should reference the inventory number assigned to the asset, either on the description line or in the text field (e.g., Monthly payment on copier, FA#315062.) Note: Business Affairs will adjust the Installment purchase liability for Non-Proprietary Funds.
Property Management	Create asset record and send bar code tag to department.

Installment Purchases - Service Centers and Auxiliary

Responsible Party	Action
Department	Complete and submit a requisition for the proposed installment purchase of equipment to PaCS.
Purchasing Department	Ensure requisition is properly completed. Solicit bids or quotes on the item from vendors. Send a copy of the signed leased agreement to Business Affairs. Initiate purchase order in FIS Banner using operating index and account code 40199 for the asset and 28810 for the interest expense.
Department	Department receives equipment and invoice. Simultaneously process a FIS Banner invoice and a FIS Banner Journal Voucher. Process a FIS Banner invoice for initial payment using operating index and account code 40199 for asset portion and 28810 for interest. Then liquidate balance of PO. Process a FIS Banner Journal Voucher to book the asset and the liability incurred: Debit A8011 for the full value of the asset, Credit operating index and account code 40199 for portion paid on initial invoice, Credit B2102 for the balance of the principal, Add appropriate text (See PRO-Ex2: Completing a Journal Voucher) Example: PO processed for $20,000 asset paid over 24 months with 5% interest. Total PO equals $21,000. Initial invoice pays: Index/40199 $833.33 Index/28810 41.67 Journal voucher is processed: Dr: Fund/A8011 $20,000.00 Cr: Index/40199 833.33 Cr: Fund/B2102 19,166.67 Process remaining payments to vendor (to reduce liability) on department fund and account code B2102. Interest expense should be processed against unit's index and account code 28810. Each payment should reference the inventory number assigned to the asset, either on the description line or in the text field (e.g., Monthly payment on copier, FA#315062.)
Property Management	Create asset record from journal voucher information and sends department a bar code tag for equipment.

Purpose

To allow the purchase of lease/purchase equipment.

Background Information

Lease-Purchases may be desirable to extend the payout of capital Purchases over time instead of lump sum purchasing. However, lease-purchases are avoided because of the additional costs incurred in the form of interest.

Definition

A lease/purchase or capital lease has at least one of the following characteristics:

1. Ownership of the property passes to OSU at the end of the lease;
2. The lease contains a lease/purchase option;
3. The lease lasts for 75 percent or more of the useful life of the equipment;
4. The total of all lease payments (excluding insurance and maintenance costs) is greater than or equal to 90 percent of the fair market value of the equipment.

Policy

Lease/purchase equipment may be purchased using installment payments over a period of five years or less. Lease/purchase agreements must be approved by the OSU Contracts Office. Lease/purchase equipment is "conditionally owned" (title code CI) until the final payment is made and the department exercises the option to purchase.

When the final payment is made, the department notifies Property Management. The inventory record is then corrected to show "purchase" rather than "lease purchase" for the acquisition method, and the title code is corrected to SI. If the option to buy is not executed, the asset is returned to the vendor and a PDR should be submitted to remove it from inventory

Acquisitions Involving Federal Funds
If federal funds are involved in the acquisition of equipment for lease/purchase, the principal investigator must first determine that the source of funding allows for leasing.

Procedure

Lease Purchases (General)

Responsible Party	Action
Department	Complete and submit a requisition for the proposed lease purchase of equipment to Purchasing.
Purchasing	Ensure requisition is properly completed. Solicit bids or quotes on the item from vendors. Send a copy of the signed leased agreement to Business Affairs. Initiate purchase order in FIS Banner.
Department	Department receives equipment and invoice. Process FIS Banner invoice: Code the initial payment as 40101 to initiate the inventory record, exclusive of any interest. Add text: (1) providing the inventory information for the creation of the asset record, and (2) noting the market value of the purchased asset. Code the subsequent payments as 40113: Installment-Purchase, with the interest portion coded 28810: Interest Expense. Each payment should reference the inventory number assigned to the asset, either on the description line or in the text field (e.g., Monthly payment on copier, FA#315062.) After final payment is made, the department notifies Property Management and Business Affairs.
Property Management	Correct the inventory record to reflect, "purchase" rather than "lease purchase" for the acquisition method, and the title code is changed from CI to SI. If the option to buy is not executed, the asset is returned to the vendor and a PDR should be submitted to remove it from inventory.

Lease Purchases (Service Centers and Auxiliary)

Responsible Party	Action
Department	Complete and submit a requisition for the proposed installment purchase of equipment to PaCS.
Purchasing Department	Ensure requisition is properly completed. Solicit bids or quotes on the item from vendors. Send a copy of the signed leased agreement to Business Affairs. Initiate purchase order in FIS Banner using operating index and account code 40199 for the asset and 28810 for the interest expense.
Department	Department receives equipment and invoice. <!--[endif]--> Process FIS Banner invoice for initial payment using operating index and account code 40199 for asset portion and 28810 for interest. Then liquidate balance of PO. <!--[endif]--> Simultaneously process a FIS Banner Journal Voucher to book the asset and the liability incurred: Debit A8011 for the full value of the asset, Credit operating index and account code 40199 for portion paid on initial invoice, Credit B2102 for the balance of the principal, Add appropriate text (See PRO-Ex2: Completing a Journal Voucher) Example: PO processed for $20,000 asset paid over 24 months with 5% interest. Total PO equals $21,000. Initial invoice pays: Index/40199 $833.33 Index/28810 41.67 Journal voucher is processed: Dr: Fund/A8011 $20,000.00 Cr: Index/40199 833.33 Cr: Fund/B2102 19,166.67 Process remaining payments to vendor (to reduce liability) on department fund and account code B2102. Interest expense should be processed against unit's index and account code 28810. Each payment should reference the inventory number assigned to the asset, either on the description line or in the text field (e.g. Monthly payment on copier, FA#315062.) 10. After final payment is made, notifies Property Management and Business Affairs whether or not equipment will be retained or returned to vendor.
Property Management	Correct the inventory record to reflect, "purchase" rather than "lease purchase" for the acquisition method, and the title code is changed from CI to SI. If the option to buy is not executed, the asset is returned to the vendor and a PDR should be submitted to remove it from inventory.

Cross Reference

For information on buying or leasing capital equipment, see the Procurement and Contract Services (PaCS) Website.

Purpose

To identify the responsibilities associated with leased or rented equipment.

Background Information

An operating lease allows the acquisition and use of equipment in a quickly changing technological area while avoiding ownership of equipment that may become obsolete.  

For Service Centers and Auxiliaries, operating leases permit the use of equipment without the obligation to own and fund reserves and steady the operational cash flow and associated expense reports.

Definition

Lease

An agreement for the right to use property for a specified period at a specified cost.  Title remains with the lessor.  At no time does the lessee build equity in the property.

Policy

All lease agreements must be approved by the OSU Contracts Office.  The lease agreement should specify whether or not OSU is responsible for insuring the equipment.  OSU assumes no responsibility for leased or rented equipment unless a responsibility is specifically stated in the contract or written agreement.  Only then does OSU insure the equipment against theft or damage.   Property control, security, and administration of the equipment are the lessor’s responsibility.

Procedure

Responsible Party	Action
Department	Draft a lease agreement and forward official document to the Contracts Office for approval. Submit copy of approved lease agreement to Business Affairs. If lease requires OSU to insure equipment and the asset will be held less than 90 days, a copy of the agreement should be forwarded to OSU Risk Management.  (Item will be covered under supplemental insurance.) If lease requires OSU to insure equipment and the asset will be held more than 90 days, the asset must be added to inventory.  A copy of the agreement should be forwarded to Property Management along with a Fixed Asset Data Entry form.  See PRO-Ex3: Fixed Asset Data Entry (FADE) form. Lease payments are coded "equipment-rentals and leases" (see PRO-Ex10: Account Codes).
Purchasing	Add leased equipment to the university asset records at its replacement value for tracking and insurance purposes.
Department	When lease ends and equipment is returned, the department will submit a PDR to remove the equipment from inventory.

Purpose

To identify and record equipment loaned to OSU.

Background Information

Personal property brought on campus for the convenience of the employee and not required for institutional purposes will not be insured against loss or theft by OSU (paintings, pictures, stereos, etc.).  Property not under the specific control of the University will not be insured.

Definition

Control

Having the legal ability and responsibility to (i) direct the property's use and location, (ii) direct who may have access to it, and (iii) take possession of it.  State control cannot exist when the property is in the possession or control of the owner and the owner is not the state. 

Policy

Equipment may be loaned to OSU by individuals, organizations, institutions or research project sponsors.   Oregon State University assumes no responsibility for equipment on loan unless the user has submitted a Personal Property Loan Agreement form to Property Management.  If the form is not submitted, the Oregon Department of Administrative Services (DAS) Risk Management Division may not insure the equipment.  Property Management must approve all Personal Property Loan Agreements.  Loan agreements must be for a finite period of time not to exceed five years.

Faculty and staff members who use their personal equipment at university facilities do so at their own risk and are responsible for marking their property to indicate ownership. 

Departments may receive equipment loans from organizations or institutions with their own standard loan agreements.  All such loan agreements must be forwarded to the OSU Contracts Office for review.  Departments may only enter these agreements with the written approval of the Contracts Office.  Once approval has been obtained, the property is accounted for on the inventory and the agreement is filed at Property Management.

Some equipment is loaned by an agency or organization for use on a sponsored research project.  If the loaned equipment is from the sponsoring agency, we usually call this equipment "agency-owned."  Risk Management will insure sponsor-furnished property or government-furnished property.  See PRO-Ex11: Types of Federal Property for details.

When equipment loans accompany a PI from another university, these agreements must be documented and written approval must be obtained from Property Management.  When these agreements are in the form of contract modifications, the original copy is kept in Contract Administration.  For additional information, see PRO: 701: Loaned Equipment.

Procedure

Property Loaned for 90 Days or Less

Responsible Party	Action
Borrowing Department	Complete and submit a Personal Property Loan Agreement form to Property Management.
Property Management	Review loan agreement.  If approved - forwards it to risk Management. If not approved - returns agreement to department with deficiencies noted.
Department	Record loan under supplemental insurance policy.

Property Loaned for More Than 90 Days

Responsible Party	Action
Borrowing Department	Complete and submit the Personal Property Loan Agreement and Fixed Asset Data Entry forms to Property Management.
Property Management	Review loan agreement.  If approved - create fixed asset record and file the form and loan agreement.    If not approved - return to department with deficiencies noted.

Additional Information

See the DAS Risk Management website.

Purpose

To properly record gifts acquired by the University.

Background Information

Individuals, corporations or other organizations sometimes donate equipment to OSU.  The OSU Foundation is responsible for OSU gift administration, gift recognition, and IRS tax forms.

Policy

Any gift or donation acquired by or given to the University must be reported to the OSU Foundation for the purposes of acknowledging the gift and issuing an official OSU gift receipt.

Please report all gifts in writing to the OSU Foundation. Include the following information:

• name, address, and social security number or tax ID number of the donor;
• fair market value (FMV) of the gift;
• purpose of the gift;
• name and title of the staff member in charge of the gift; and
• a copy of the gift letter and/or any other documents furnished by the donor.

The IRS requires that any gifts that are disposed of within three years of receipt have an additional tax form (8282) filed with the IRS; departments are advised to keep gift equipment for at least three years.

All gifts meeting the equipment definition should be added to inventory immediately.  The true market value of the gift should be ascertained by a formal appraisal at the time of transfer of ownership.

Antiques, or personal property received from noted alumni, and Assets gifted to the University that may have historic significance to OSU or the State of Oregon should be reviewed for possible inclusion in the Historic Properties register.  Property Management should be contacted if an item of possible interest is received.

Booking Gifts as Revenue
OUS has instituted a new policy requiring that tangible property (gifts-in-kind) donated to the university must be booked as revenue.  To facilitate the appropriate entries to the General Ledger, the OSU Foundation will send Property Management a monthly listing of all gifts-in-kind (capital and non-capital) received on behalf of OSU.  Property Management will contact individual departments requesting additional information on any item that appears to be a capital asset, and will process the journal voucher to book these gifts as required.

Prohibited Gifts and Gratuities
University employees shall not accept or solicit, directly or indirectly, anything of economic value as a gift, gratuity, favor, entertainment, or loan that is or may appear to be designed to influence official conduct in any manner, particularly from a person who is seeking to obtain contractual or other business or financial arrangements with the university (e.g., a vendor who has interests that might be affected substantially by the performance or nonperformance of the employee’s duty).

Such persons include both present and potential suppliers and contractors to the university and agents working on behalf of suppliers and contractors.

Procedure

Property Loaned for 90 Days or Less

Responsible Party	Action
Department	Receive equipment and letter of acknowledgement (gift letter) from donor. Submit acknowledgement letter and Gift-in-Kind form to the OSU Foundation for tax acknowledgement. Submit photocopies of all documentation (gift letter, appraisal, Gift-in-Kind form, etc.) along with a completed Fixed Assets Data Entry form to Property Management.
Property Management	Create asset record in FIS Banner and sends bar code tag to department.

Additional Information

See the OSU Foundations website for related information on Gifts.

Purpose

To identify and record equipment transferred from other institutions and agencies to OSU.

Policy

Individuals must notify Property Management of equipment transfers from another institution or agency to OSU.  Unless otherwise stated, title of equipment vests with the University at the time of the transfer.

Equipment transferring to OSU from other institutions with new faculty should be reviewed and documented IMMEDIATELY upon receipt.  This type of property becomes state property (not personal property of the principal investigator) and must be added to the inventory in order to be tracked and insured.

Equipment that is accountable to a sponsor award that is transferring to OSU must be documented immediately, including information on the index and sponsor ID assigned by the Office of Post Award Administration.

Procedure

Transfer of Equipment Into OSU

Responsible Party	Action
Department	Request the following written information from the transferring institution: current market value, age, description, serial number, funding source, condition and federal accountability. Submit Fixed Asset Data Entry form to Property Management along with any backup documentation from the transferring institution or agency within 30 days of receipt. Note: If the transferring institution cannot provide the market value, a certified appraiser must appraise the equipment.  Contact Property Management for assistance with appraisals.
Property Management	Create asset record in FIS Banner and sends bar code tag to department.

Transfer of Grant or Contract Accountable Equipment to OSU

Responsible Party	Action
Department	Request the following written information from the transferring institution: current market value, age, description, serial number, funding source, condition and federal accountability. Submit Fixed Asset Data Entry form to Property Management along with any backup documentation from the transferring institution or agency within 30 days of receipt, including information on the award designation to OSU. Note: If the transferring institution cannot provide the market value, a certified appraiser must appraise the equipment. Contact Property Management for assistance with appraisals.
Property Management	Create asset record in FIS Banner and sends bar code tag to department.

Purpose

To define a procedure for the trade-in of university/sponsor owned capital equipment.

Policy

Units are permitted to trade all or part of an asset to reduce the cost of a new asset.  All trades require prior approval from Property Management and must  be fully documented in FIS Banner.  Items acquired by trade are capitalized at their full value, not the amount after it was reduced by a trade-in allowance.  Please see PRO 803: Trade-in of Equipment for additional information on trade transactions.

Procedure

Exchange of an older piece of equipment for a reduction in cost on a new asset.

Responsible Party	Action
Unit	Contact Property Management (via phone or email) to request approval for the proposed trade. Submit to Purchasing within the appropriate Business Center: A Departmental Requisition and vendor quote of the item to be obtained. A Property Disposition Request (PDR) form containing the following: The asset(s) to be traded. Note under ‘resale price’ the credit that is to be received from the vendor for the traded asset(s). A description of the item to be received for the traded item. Note: If multiple assets are being traded there must be a specific amount for each asset – not a lump sum for all.
Purchasing	Set up the Purchase Order in FIS Banner to reflect the full value of the new asset (including, rather than less than, the value of the trade-in credit). There should be a text notation on the Purchase Order regarding the amount of credit to be received from the vendor. Purchasing will provide a copy of the PO as well as the original PDR to Inventory Control to keep on file until the asset is received and payment processed.
Business Center	Process the invoice for the new asset for the full amount of the asset (including trade-in credit) even though the invoice from the vendor will probably be reduced by the value of the trade-in allowance.  In order to pay the correct amount, a credit memo must be created in Banner for the amount of the trade-in allowance.  Be sure to process the invoice and credit memo simultaneously (cross-referencing the document numbers in the text field of both). This allows the proper payment to the vendor. Set up the credit memo for the amount of the trade-in, and posted to fund 095880 Asset-Undistributed Income Clearing and Account Code B5801 Undistributed Income.
Property Management	Create the new asset record from the Origination tag created by the invoice. Then the disposition of the traded asset will be processed in the Fixed Asset module under the ‘sale of asset’ function. This function will take the ‘proceeds’ of the sale (the credit amount in the undistributed clearing account from the credit memo) and return it to the appropriate departmental fund. This process allows the proper recording of the gain or loss on the disposal of the traded-in asset. Gain or loss will only be posted to 09XXXX Service Center and 1XXXXX Auxiliary funds.
Exception: If the traded item is not a capital asset, this process cannot be used as there is no way to return the proceeds (credit) to the unit through the ‘sale of asset’ function. In this case, the credit memo should reflect the same index as the invoice and use account code 06981 Sale or Trade-In of Assets to reduce the payment to the vendor. The new asset will be recorded on inventory at full value.

One-to-One swap of equipment with no dollars changing hands.

Responsible Party

Action

Department

Request permission from Property Management to trade an asset. Obtain the current market value of the asset being received.  (May require services of a certified appraiser.) Use current market value as its inventory value, if it meets the capital threshold. A letter documenting and justifying the swap should be sent to Property Management with a PDR to remove the traded asset from inventory and a Fixed Asset Data Entry form with information to add the received asset to inventory.

Purpose

To outline procedures for fabrication (assembly) of a capitalized equipment unit.

Definition

Fabricated Unit

Transformation of materials (supplies and minor equipment) into an identifiable unit by fabrication and meets the following criteria:

1. Total finished value =>$5,000 and has a useful life of > 1 year.
2. The ownership or title-to code must be the same for the entire fabricated unit. Funding sources can not be mixed so part of the fabricated unit is owned by the Federal Government or another outside entity and the remaining part(s) is owned by the university.
3. Free standing, movable as an entire unit, not permanently attached to a structure, and will not lose its identity when installed in other property.
4. Unit must be complete in itself. It will be added to, accounted for, and removed from capital inventory as one unit or record. All pieces stay together until entire unit is surplused.
5. Assembled parts must be integrated, permanently attached to each other, and essential in the performance of the unit. A basic schematic diagram with a description must show how the parts are integral to the unit.
6. A fabricated unit with all assembled parts must be physically found in one location at all times. Parts which do not meet this requirement are considered individually for capitalization.

Policy

Fabricated, assembled or constructed equipment that meets the above definition will be capitalized and added to the equipment inventory. The faculty member and department will be responsible for pre-approval prior to purchasing of any parts or items for the fabricated unit. This includes a basic schematic diagram of the proposed fabricated unit with explanations of the integration of the parts (see Procedures section).

Costs to assemble or fabricate can include parts, shipping costs, and labor of an organized shop. Faculty time may not be included. Donated parts will be recorded at fair market value. (See Procedures below for details).

Network and communication wiring can not be capitalized as equipment. This is infrastructure and special rules apply. Contact Property Administration if you have questions concerning these costs.

Software that is leased or licensed for use and which is separately itemized on a vendor invoice can not be capitalized. Do not include this expense in a fabricated unit cost.

Replacement parts:
Once a fabricated unit has been initially completed and placed in service, all replacement items, parts, or pieces to upgrade or enhance the unit will be expensed.

Example: a battery is replaced with a more powerful battery. The new battery must be purchased as an expense using Account Code “23501 Equipment Maintenance & Repairs”. [Note: the original battery remains on inventory and depreciates as part of the fabricated unit.]

Prototype fabrications:
OSU may receive special grant or contract funding to assemble and test a specialized piece of equipment which has not been previously constructed. These prototype units are unique experimental pieces of equipment which are designed for a specific purpose. There is a testing period. Even though on the fixed asset inventory as an asset, the unit should not be coded as “in-use” until the testing period is completed or the end date of the grant/contract; which ever comes first. If the item is found to be non-functional after the testing period, it must be removed from inventory.

Removal of a fabricated unit from fixed asset inventory:
When a fabricated unit is no longer in-service as it was designed and the department wants to surplus the parts or use some of them for another purpose the asset record must be removed from the fixed asset inventory and any remaining depreciation expensed to the university. These parts can not be added back to inventory as a single asset or part of a newly fabricated unit.

Procedure

Transfer of Equipment Into OSU

Responsible Party	Action
Faculty Member & Department	Prepare Fabricated Equipment Unit Pre-approval form and basic schematic diagram with an explanation of the integration of the parts. Present the completed, signed form and schematic diagram to OSU Property Administration (Business Services) for review and approval. Property Administration will review the application within 24 hours of receipt. a. If the cost of the fabricated unit is part of a sponsored proposal, the approved form and schematic should accompany the Proposal Transmittal Form presented to Office of Sponsored Programs and Research Compliance (OSPRC). b. If the fabricated unit is to be funded with Research Equipment Reserve Funds (RERF), the approved form and schematic must accompany the funding application to the Research Office for approval by the Research Council. c. If the fabricated unit is to be funded with other funding, the approved form is to be maintained at the department business office. Once funding is approved, Purchase Requests may be processed. A copy of the approved Fabricated Equipment Unit form (with the funding indexes noted) with the basic schematic diagram attached should accompany the first Purchase Request to the PaCS office. Begin fabricating the unit. (Note: approval is required when using sponsored funds. On the grant index, look for a dollar amount budgeted as account code 40101 Equipment.) a. Process all vendor invoices using account code 40199 for all parts associated with the construction of the unit. b. External shop labor invoices should be processed using account code 24995 Construction Contract Services due to IRS 1099 reporting requirements for services received. After processing these invoices through Accounts Payable, complete a Journal Voucher (JV), with the appropriate text, to change the account code to 40199. c. If fabrication includes OSU shop labor, prepare a Journal Voucher (JV) to debit account 40199 on the funding source and credit account 79343 on the shop index. When fabrication is complete or at fiscal year-end, whichever comes first, costs must be redistributed by JV from account code 40199 to account code 40101 so the asset record can be created. The text field of the JV must have the necessary information to create the asset record, including the original “I” doc numbers. The asset will be capitalized as a CIP (Construction in Progress) unless it is completed and in-use. [See FIS 601 Equipment for additional reference.] If the asset is “CIP” (Construction-in-process), any additional costs in the new fiscal year should continue to be processed on account code 40199 and converted to account code 40101or A80xx for an auxiliary or service center at completion or fiscal year-end. When construction is complete and the asset is in use, process a final journal voucher to convert any remaining costs from account code 40199 to the equipment account code 40101. Include the in-service date in the text of the JV. All modifications after asset is placed in service must be expensed.
Property Management	Receives the Fabrication Equipment Unit Pre-approval form and basic schematic diagram from the faculty member/department. Reviews and returns the pre-approval form within 24 hours of receipt. Retains a copy for future reference. Approves Journal Vouchers which move costs from account code 40199 to account code 40101 or A80xx. At fiscal year-end, creates the capital inventory record as “CIP” until the unit is placed in-service or use. Issues a Bar Code Tag to the department for the fabricated unit. Requests a detailed update annually from the department for all assets that are still coded “CIP."

Purpose

To facilitate the reuse and acquisition of excess OSU, State and Federal property. 

Definition

Surplus Property

Property not needed by a department within the University. Surplus property includes all excess items and materials other than items that would be typically disposed of in a wastebasket, such as scrap paper, consumed pencils and pens, etc.

Background Information

OSU Surplus Property
OSU departments have access to a variety of used equipment. OSU Property Management staffs the Property Services warehouse at the corner of 13th and A streets in Corvallis, where departments may purchase OSU surplus equipment and supplies.

State Surplus Property
The Oregon Department of Administrative Services (DAS) in Salem offers state and federal surplus property for sale to state agencies.  Information on this program may be found on the DAS State Property Program website.

Federal Surplus Property
The Oregon Department of Administrative Services (DAS) has a property screener to assist state agencies in locating, reviewing and acquiring property from other federal sites as well as from the Salem depot.  Information on this program may be found on the DAS State Property Program website.

Federal Excess Property
Nationwide, the federal government also makes federal excess property available for use on federally-sponsored programs such as research projects, Agricultural Experiment Stations, etc.

Policy

Departments may purchase surplus property for university and sponsored use from the OSU Surplus Property Department and Oregon Department of Administration’s Services Surplus Property Management Office. 

Procedure

Acquisition of Used Equipment

OSU Surplus Property

1. Departments may purchase available surplus property at the Surplus Property warehouse on SW 13th and A streets in Corvallis, Oregon.
2. General fund indexes may only be used (no federal grant/contract indexes may be used).
3. Purchases can be made during regular business hours, except during closed periods prior to public auctions.  See the current sales schedule on the OSU Surplus Property Website.  Additional information is available at the Property Surplus website.

State Surplus Property

State surplus equipment acquisitions of less than $5,000 are considered minor equipment.  Acquisitions costing $5,000 or more must be inventoried.  If processed on a FIS Banner invoice, see PRO-Ex1: Creating an Asset Record from a Banner Invoice.  If not processed through FIS Banner, see PRO-Ex3: Fixed Asset Data Entry (FADE) Form.

Departments have two options for reviewing and acquiring Surplus Property through DAS in Salem, Oregon.

Option (1) The OSU employee can bring a letter of authorization (from their Department) to purchase items on a single day.  The letter may be either a general authorization to purchase any item or restricted to specific items.  The letter must be signed by an authorized representative of OSU.  Authorized signers for OSU are:

• Mark McCambridge, Vice President for Finance& Administration
• Brian Thorsness, Director - Property, Contract & Risk Management
• Patsy Hendricks, Surplus Property Supervisor
• Bil Burton, Equipment Systems Specialist

Option (2) An OSU employee can get permanent authorization to go to DAS by completing three forms found on the DAS State and Federal Surplus Property website. 

• Application Return Checklist
• Application for Eligibility
• Certifications & Agreement form
• Return Policy Agreement form

Click on "Eligibility" and then "State Agency, Boards & Commissions" to locate the forms.  These forms must be completed in advance, signed by the employee’s supervisor or Department Chair, and returned to DAS prior to the visit.  If an individual who is not on the application for eligibility wants to go to DAS, she or he may hand carry a letter from an eligible person.  If an item is purchased, the letter is attached to the DAS invoice.

Federal Surplus Property

Federal surplus property is recorded in a similar manner; however the "cost" of federal surplus property is really a handling fee from DAS rather than a capital expense-the property is donated to the state of Oregon by the U.S. General Services Administration. 

Departments may acquire property through this program or through other screeners who are certified to review and acquire surplus property for the state (contact Property Management for details).  In either case, the donation is coordinated through DAS, and a 5% or 6% fee is levied to pay for their handling costs.

Federal surplus property must be put in use for the purpose for which it was donated within one year of donation, and be kept in use for 12 months (18 months for vehicles and property with original acquisition cost of $5,000 or more).  If these terms are not met, possession reverts to DAS.  During this restriction period, title to the equipment vests with the federal government.

Federal Excess Property

Such property remains titled to the federal government and is considered "government furnished equipment" on loan to the university.  Title never reverts to the university.  Disposal of Federal Excess Property must be back to the original federal agency.  For details about Federal Excess Property acquisition and inventory, see PRO 900: Sponsored Research and Federal Property.

Additional Information

OSU Surplus Property website

State of Oregon Surplus Property website

Purpose

To properly receive and record equipment to protect the University against loss.

Policy

The receiving department is responsible for receiving and inspecting newly acquired equipment, regardless of the method of acquisition.   Inspection should occur prior to processing the invoice.

Assets Purchased through Banner FIS
All assets purchased through the Banner FIS system have a record generated automatically and results in an inventory bar code tag being sent to the owning department. 

Assets Received Through Other Means
Assets received through other means (loans, government-furnished, leases, etc.) must be added to inventory via a Fixed Asset Data Entry (FADE) form. FADE Form (pdf format) are available at the Inventory Control website.  See PRO-Ex3 for an example of a FADE form. 

Adding to Inventory
All capital assets must be added to inventory within 60 days of receipt.  Any asset stolen or damaged after the 60-day window may not be covered by Risk Management.

Procedure

Responsible Party

Action

Receiving Department

Prior to signing any documentation to accept a shipment, ensure that the package(s) has not been damaged.  The shipment should be refused if damage is apparent. Verify contents against Bills of Lading, Purchase Orders or other receiving documents to assure that the order is complete.  If overages, shortages, or damages are discovered, the vendor or shipper should be contacted immediately.  Packing slips, bills of lading & other documents should be submitted to the department's accounting office and archived with the purchase order/invoice. Test equipment to make sure that it functions properly within the allotted warranty period. For reporting requirements for Federal Sponsored Grants and Contracts, see PRO 902-02: Principal Investigator Responsibilities - Ordering, Receiving & Tagging.

Cross Reference

See PRO 304: Insurance for information on interim period.

Additional Information

See Campus Freight website for information relating to shipping and receiving packages.

Purpose

To properly identify and track OSU equipment via a bar code inventory tag .

Policy

Equipment Tagging
All equipment on the OSU inventory must be tagged with an OSU bar-code inventory tag, which is furnished by Property Management. Equipment acquired for sponsored research may also require an asset tag from the sponsoring organization (See PRO 902-02: Federal Property Requirements in Section 9). At the time the tag is attached, all information on the inventory record should be verified against the actual equipment and updated as needed.  Clear laminated covers should be used to protect tags that will be exposed to the elements or to harsh environments; contact Property Management at 541-737-7350 for details.

Historic Properties
Assets included on the Historic Properties register should have a tag from the Historic Properties Commission.  This tag begins with an "H" and should not be removed under any circumstances.

Tag Locations
Tags should be placed where they can easily be seen and scanned, but where they will not interfere with the use of the equipment or be hidden when the equipment is used.

Replacement Inventory Tags
When inventory tags are lost, damaged or poorly located, replacement inventory tags should be obtained from Property Management.  They are printed in-house, so response time is usually 48 hours.  Please e-mail (Kim.Rowe@oregonstate.edu),  fax (541-737-2170), or campus mail a list of the tags needed to be replaced to Property Management.  New tags will be attached to the request and returned via campus mail or US mail.

Tagging Non-Capital Equipment
Property Management does not identify or tag equipment with an acquisition cost of less than $5,000.  If a department has an interest in identifying, tagging, and tracking equipment costing less than $5,000, Property management can supply "Property of OSU" identification labels to the department.

STOP (Security Tracking of Office Property) Tags
Departments may tag equipment with STOP Tags to protect OSU's property interests and help prevent theft of equipment. 

Untaggable Items
Use the term "untaggable" to describe items that cannot be tagged because they are too small, delicately calibrated, or they are used in harsh environments that would immediately destroy a tag.  The word "untaggable" and a brief explanation should be added to the asset record text of the item.  Departments should keep the tags in a notebook with information about the equipment to which they refer (description, serial number, etc.).   When the inventory is conducted, the equipment is located and identified from the information contained in the notebook, and then the tag is scanned.

Marking Equipment
When an item is untaggable, or can be tagged but has no serial number, permanently mark the OSU inventory number on it using an engraver or indelible marker.  An engraver is available for loan from the Oregon State Police / Department of Public Safety.

Procedure

Tagging Equipment

Responsible Party	Action
Department	Place tags on equipment promptly upon receipt in a location that is visible and scannable.

Tag Locations

Responsible Party

Action

Department

Tag items consistently in accordance with the following guidelines: General location: on the front, near the upper left corner Machinery, instruments and vehicles: near the equipment manufacturer's nameplate, overlaminated as needed with clear protective label available from Property Management Cylindrical items: tag should go up and down the length of the cylinder, not wrapped around it Small items and movable internal components: see Untaggable Items section herein, or contact Property Management for assistance.

Purpose

To ensure that capital equipment is properly used, maintained, and serviced to maintain the efficiency and usefulness of the equipment for as long as possible and to make the most effective use of the university's assets.

Policy

Use
Equipment on the OSU inventory is intended for institutional use and not for private purposes.  Use may be additionally restricted by the terms of the research contract or grant for which the equipment was acquired, if applicable.  See PRO 900: Sponsored Research and Federal Property and PRO 206: Equipment Acquisition-Loan.  Equipment should only be used by properly trained personnel and only for the manufacturer's intended purposes, and not misused.

Non-Use
Non-required equipment that has not been used for a substantial period of time should be made available to others or sent to Surplus Property for disposal. 

Maintenance
Capital equipment should be maintained by department personnel or outside vendors in accordance with the manufacturer’s recommended maintenance schedules.  Maintenance schedules should be followed for equipment currently in use and equipment in storage.  Records of maintenance performance should be kept for each item of capital equipment.  Maintenance may include:

1. Periodic inspection,
2. Regularly scheduled lubrication,
3. Protection from exposure,
4. Routine cleaning,
5. Proper cleaning prior to storage, and
6. Associated record keeping.

Maintenance records must be kept for agency-owned equipment (e.g., federally owned equipment belonging to DOD, NASA, DOE, etc.).

Cross Reference

See PRO 1002: Inventory Records Maintenance

Purpose

To protect the University against loss by properly insuring equipment

Background Information

The State of Oregon Insurance Fund covers all property included on the Annual Risk Report, including the OSU fixed asset inventory.  The fund is used to replace, repair, restore or rebuild state property that is lost, damaged, or destroyed, subject to specific exclusions outlined in the Department of Administrative Services Policy Manual #125-7-101.  A $2,500 deductible applies to most equipment and supply losses; a $10,000 deductible applies to equipment lost due to theft or hazard which was preventable.

Policy

The Department of Administrative Services (DAS) Risk Management Division (RMD) provides supplemental insurance to insure newly acquired capital equipment within a 60-day interim period after receipt.  After 60 days the item is not considered insured against loss unless it has been added to equipment inventory.  Departments must process the appropriate documents (Invoice or Fixed Asset Data Entry form) within the 60-day interim period to add the equipment to inventory.     

Employees are responsible for promptly reporting loss or damage to their supervisors, who in turn are responsible for reporting the loss or damage to OSU Risk Management and the Law Enforcement.

Losses should be reported immediately to the OSU Risk Management Office, (541) 737-7252, to allow adequate time to process the claim.  OSU must file a claim with Risk Management within a time limitation of 90 days from the date of a loss. 

Procedure

Insuring Equipment

Responsible Party	Action
Department	Within 60 days after receipt, submit the invoice or a completed Fixed Asset Data Entry form to Property Management.
Property Management	Add to inventory by creating an asset record in FIS Banner, assigning an OSU inventory number. Send bar code tag to departmental inventory coordinator for application to asset.

Filing an Insurance Claim

Responsible Party	Action
Department	Complete a State Self-Insurance Claim Report form (pdf) and submit to Risk Management located in the Property Services Building. If loss occurs from a criminal act contact the Oregon State Police / Department of Public Safety (or local police if loss occurs out-of-state) If Capital Equipment has been lost or damaged beyond repair, a Property Disposition Request should be submitted to remove the equipment from inventory.
Note: If Risk Management pays on a claim, the asset becomes the property of Risk Management.  Any proceeds from the sale of damaged assets must be returned to Risk Management.  A Surplus Pick-up Request form should be submitted for such items, identifying them as 'claimed' property, and Property Management returns anything received from their sale back to Risk Management.  If a stolen asset is retrieved that Risk management had paid a claim on, that asset is also Risk Management property, and the department must either pay Risk Management for the asset, or sell it with the proceeds going back to Risk Management.

Additional Information

The State Insurance Fund self-insures agencies of the State of Oregon.  Claims approved for OSU increase the insurance premium that is levied against OSU in future years.  This results in OSU fully repaying the fund for any funds disbursed.  All reasonable precautions should be taken to adequately secure and protect OSU property from theft or damage.

See the Property Security Policy in the General University Policies section of the OSU Administrative Policies and Procedures Manual for more information.

See the State of Oregon Risk Management Division web site for additional information.

Purpose

To ensure that OSU-owned equipment and equipment in our custody is properly stored, protected and preserved during long-term storage.

Background Information

Federal and State of Oregon policies encourage the use or disposal of equipment that has not been used for long periods of time.

Policy

Equipment used for current operational needs is generally considered required equipment and should be stored as appropriate.  The long term storage of non-required equipment is not advocated.  Non-required equipment that has been in storage for a substantial period of time should be made available to others or sent to Surplus Property for disposal.  However, equipment that is extremely specialized and used only intermittently or during specific seasons for field work may be appropriately stored for future use.

When equipment is not in use, the responsible department must make arrangements for the optimal maintenance and protection of the asset.  The equipment should be housed adequately with proper packaging to ensure preservation of the asset.  Special controls and inspections should be provided for (1) equipment that is subject to corrosion or may be damaged by humidity and temperature extremes, and (2) the accessories and special tools that may or may not be regularly used with the parent asset. 

Government property in the custody of a department should be segregated when required and adequate security and protection must be provided for assets both inside and outside storage.  Access to property in storage should be limited to authorized personnel. 

Cross Reference

PRO 303: Use and Maintenance

PRO 804: Surplus Property

Purpose

To document and record equipment being leased to non-OSU individuals, businesses or institutions.

Policy

OSU owned equipment may be leased to outside organizations or individuals when leasing the equipment is in the best interest of the University.

Procedure

Responsible Party	Action
Department	Download an OSU Owned Equipment lease Agreement form from the Inventory Control website. Complete and submit the Lease Agreement with the appropriate signatures (Department & Lessee) to the Contracts Office.
PaCS	Ensure lease agreement is properly completed. Forward a copy of the approved lease agreement to the leasing department and sends the original to Property Management.
Property Management	Update asset records to reflect asset's new location with text information regarding the lease. Maintain the original executed agreements at Property Management.
Department	Ensure that equipment is returned or lease agreement is renewed.

Cross Reference

See PRO-Ex7: OSU-Owned Equipment Lease Agreement on how to complete a the lease agreement

Purpose

To ensure that university departments follow the necessary procedures when reporting lost, damaged or destroyed equipment.

Applicability

All equipment in the custody of OSU.

Policy

Departments must report all incidents resulting in equipment loss, damage or destruction to the OSU Risk Management Office (541-737-7252) for insurance purposes.  Departments must notify Property Management (737-7350) if the equipment is lost or damaged beyond repair and should be removed from inventory.  If the property is accountable to a grant or contract, the principal investigator must also follow instructions in the award document for reporting lost, missing, stolen or damaged property to the sponsoring organization.

Departments must report all equipment loss, damage or destruction resulting from suspected criminal activity to the Oregon State Police/Department of Public Safety (737-3010) or local law enforcement if the incident occurred away from the OSU main campus.

Procedure

Reporting Lost or Damaged Equipment

Responsible Party	Action
Department	Complete and submit a State Self-Insurance Claim Report form (pdf) to the OSU Risk Management Office.  (Record the police case number on the Preliminary Report (if applicable)).

Removing Lost, Damaged or Destroyed Equipment from Inventory

Responsible Party	Action
Department	Complete a Property Disposition Request Form along with copies of the State Self-Insurance Claim Report form. Record the police case number on the Property Disposition Request (if applicable). Submit to Property Management.
Property Management	Remove equipment from inventory.

Cross Reference

See PRO 304: Insurance for filing a claim for lost, damaged or destroyed equipment.

See PRO 802: Stolen Equipment.

See PRO 903: Reporting & Inventories.

Additional Information

See the Department of Public Safety & Oregon State Police website for procedures on reporting crimes and incidents to law enforcement.

Purpose

To define a procedure for the trade-in of university capital equipment.

Policy

Departments are permitted to trade-in state owned property upon obtaining approval from Property Management.  

Trade-in values that are substantially less than the market value of the equipment are prohibited.

Procedure

Reporting Stolen Equipment

Responsible Party	Action
Department	Contact Property Management (541-737-7350) to obtain approval to trade-in state owned property.
Property Management	Review asset records and determines if item is eligible for trade-in. If eligible, grant verbal authorization to department. If not eligible, department is not granted authorization for disposal of equipment via trade-in.
Department	Complete a Property Disposition Request (PDR) form available at the Inventory Control website. Submit PDR with Purchasing Requisition (see PRO 209: Acquisition-Trade) and quote form the vendor.
Property Management	Remove traded asset from inventory as new asset is being added to inventory.

Cross Reference

See PRO 209: Acquisition-Trade.

Purpose

To facilitate the reuse and disposal of excess departmental property in compliance with State of Oregon Departments of Administrative Services policies.

Background Information

The Surplus Property department is a self-sustaining unit of OSU.

Policy

All excess state owned property must be disposed of through the OSU Surplus Property department.  Experiment stations, extension offices and other remote sites must bring their surplus items to the Surplus Property department in Corvallis.  Surplus property is taken on a consignment basis.

All sales of state owned property to outside individuals or agencies are prohibited except for sales through the Surplus Property department.

Exemptions

Excess property authorized for disposal by transfer, or trade-in.

Procedure

Disposal of Excess Property

Responsible Party	Action
Department	Complete and submit to Property Management a Surplus Property Pick-up Request (SPR) Worksheet that lists all items to be collected by Surplus Property.  Hard copy and online SPR forms are available on the Surplus Property Website.
Surplus Property	Review list and verify that all capital assets are eligible for collection and disposal.  (Surplus Property will not collect or dispose of federally or other owned property.)    Schedule an appointment with department (if necessary or requested) for collection of surplus property.  Collect surplus property and relocates it to surplus warehouse.  Send computer generated receipt listing the items collected to the department.
Department	Compare items on list to the original pickup request and communicates discrepancies to Surplus Property.
Surplus Property	Make property available to OSU departments, state agencies or other authorized non-profit organizations. Property not purchased internally will be made available at public sales. Proceeds from the sale of surplus property (less consignment fee) are returned via a journal voucher in the month after the sale occurred.

Disposal of Historic Property

Responsible Party	Action
Department	Complete and submit a Surplus Property Pick-up Request (SPR) Worksheet (that specifically identifies the historical asset property tag number) to Surplus Property.  Hard copy and online SPR forms are available on the Surplus Property Website.
Surplus Property	Schedule an appointment with department (if necessary or requested) for collection of historical asset. Collect historical asset and relocates it to surplus warehouse.  Send computer generated receipt listing the historical items collected to the department.
Department	Compare items on list to the original pickup request and communicates discrepancies to Surplus Property.
Surplus Property	Makes historical asset available to OSU departments and state agencies. Note: There are restrictions on the disposal of any asset included on the Historic Properties register. These items may be transferred to another OSU department or another state agency. If a department no longer wishes to keep an asset marked as Historic Property, it should be sent to Surplus Property. Surplus Property will contact the State Parks and Recreation Department (which now handles Historic Properties) and request that they claim the asset or release it for sale or other disposition.

Additional Information

Any equipment on inventory will remain on inventory for record-keeping purposes until it is sold or otherwise disposed of.  Property Management will then remove it from inventory.

Some equipment may be difficult or inconvenient to move to the surplus warehouse.  In these cases, Surplus Property will arrange the sale of the item at its current location and coordinate dismantling/moving the equipment when the item is sold. 

Purpose

To facilitate the return of equipment to sponsoring agencies and owners.  

Policy

Agency or other owned equipment must be returned to the agency or owner; upon request, upon completion of project, or expiration of the loan agreement.  The returning department must notify Property Management of the return and complete a Property Disposition Request form (PDR).

Procedure

Return to Sponsoring Agency at Contract Close-out

Responsible Party	Action
Office of Post Award Administration (OPAA)	At contract or grant closeout, request sponsor's disposition instructions for sponsor owned equipment. Submit a copy of the sponsor's instructions to Property Management. If applicable, submit a copy of the sponsor's instructions to departmental Principal Investigator.
Returning Department	Complete a Property Disposition Request (PDR) Form including information such as the Sponsoring Agency's name, address, telephone number and contact person. Obtain department head signature and send PDR to Property Management. Ship equipment to Sponsoring Agency's contact person.
Property Management	Remove asset record from inventory.

Return to Owner

Responsible Party	Action
Returning Department	Complete a Property Disposition Request (PDR) Form including information such as the owner's name, address, telephone number and the owner's contact person.    Obtain department head signature and send PDR to Property Management. Ship equipment to owner or contact person.
Property Management	Remove asset record from inventory.

Cross Reference

See PRO 701-03: Equipment Loaned to OSU.

See PRO 900: Sponsored Research and Federal Property.

Purpose

To manage the disposal of salvaged or cannibalized capital equipment and to ensure compliance with federal and university requirements.

Background Information

Departments can use components from outdated or nonfunctional equipment to build or repair other equipment.

Policy

Departments may salvage or cannibalize obsolete or nonfunctional equipment upon obtaining approval from Property Management. 

Procedure

Responsible Party	Action
Department	Prepare a list of potential equipment to be salvaged or cannibalized. Submit list to Property Management and requests approval to salvage or cannibalize equipment.
Property Management	Audit the asset record to see that the property is OSU-owned and not accountable to a current grant or contract, and that the Surplus Property Program could not get a better value by reselling the property for the department.  (Note:  This process is usually completed over the phone in just a few minutes.) Approve or disapprove request and notifies department of decision.
Department	If approved, submit a Property Disposition Request (PDR) Form to Property Management.
Property Management	Remove equipment from inventory.

Purpose

To manage the disposal of capital and other equipment through donations and to ensure compliance with state and university requirements.

Background Information

The State of Oregon Department of Administrative Services policy on disposition of surplus property requires that equipment no longer needed by an agency must be made available to other agencies in the following order:

1. OSU departments, then
2. other state agencies and political subdivisions, then
3. non-profit organizations with a current 501-C status.

Equipment not utilized by these agencies or organizations will be disposed of through public sales.

Policy

Departments may donate excess, unused, or unneeded equipment to the qualified non-profit organization upon obtaining approval from Property Management.   OSU requires a copy of the 501-C status each time a non-profit organization receives a donation or purchases an item from the Surplus Office.  All donations MUST BE PROCESSED through Surplus Property, which is responsible for documenting the donations for audit purposes.

Departments will not show favoritism to any particular organization.  If a department appears to be directing supplies/equipment to any one organization on a regular basis Property Management may intervene and take corrective actions.

Procedure

Responsible Party	Action
Department	Create a list of items to be donated. Complete a Surplus Property Pickup Request (SPR) worksheet listing the items to be donated. In the body of the form, type the name and address of the receiving organization as well as a contact name and telephone number. If additional space is needed to identify items, attach a memo with the information and the department head's signature. Obtain department heads signature on the SPR approving the donation. Submit completed SPR form to Surplus Property department.
Surplus Property	Post the availability of this equipment in the Warehouse for a reasonable period of time.  If requested by department, picks up property for disposition. If not needed by another department or state agency, Surplus will collect the equipment when appropriate, verify that the non-profit organization is properly authorized to receive donations before they are allowed to pick up the donation, make sure the organization receives the donation, and processes the necessary paperwork.

Additional Information

Online version of the Surplus Property Pickup Request (SPR) worksheet.

Downloadable Surplus Property Pickup Request (SPR) worksheet (pdf format).

Purpose

To comply with federal, state and sponsor mandated requirements regarding equipment purchased or acquired on grants or contracts.

Background Information

The federal government specifies screening, tagging, use, maintenance, reporting and disposal requirements for property accountable to federal grants and contracts.  See PRO-Ex11: Types of Federal Property.

Policy

Property acquired from a research sponsor or purchased with sponsored research funds is accountable to the grant or contract.  Contract authority must exist for the acquisition of facilities, special test equipment and other capital equipment on sponsored research funds. Equipment budgeted in the grant or contract award is assumed to be approved by the award sponsor.  Additional acquisitions of capital equipment on award funds must be pre-approved in writing by the sponsor when required by the regulations of that sponsor.

There may be additional management procedures and restrictions required by an award sponsor.  In the case of federally sponsored research, procedures and restrictions are specified in OMB Circular A110 (Property Standards section), OMB Circular A21, the Federal Acquisition Regulations (FAR), and the NASA Grant Handbook, as well as terms of the individual contract or grant.  (Note: The NASA Grant Handbook has been updated as of October 19, 2000.  The revised rules are not retroactive, but affect awards begun after that date.) 

Principal Investigators acquiring equipment for sponsored research are held accountable for following the Sponsor's requirements regarding screening, receiving, acquisition, tagging, use, maintenance, storage, physical inventories, record keeping, reporting and disposition of property.

Additional Information

See Federal Publications for additional information on federal requirements at the links below:

Office of Management & Budget (OMB)
OMB Circular A21
OMB Circular A110
Federal Acquisition Regulations (FAR)

Purpose

To properly account for the equipment in the hands of subcontractors.

Background Information

Subcontracts are predicated on the prime award, and a copy of the prime award is always attached to the subcontract agreement.  The terms of the prime award flow down to the subcontractor.  However, such terms are not automatic in the area of federally owned property.

Policy

A subcontractor must have an approved property system, including procedures for the care and maintenance of equipment, in order to receive federally owned equipment.  The subcontractor is required to adequately care for and maintain such property (as required by federal regulations per OMB Circular A-110 or FAR 45.510) and assure that it is used only as authorized by the contract.  Equipment reports must be submitted to OSU for referral to the sponsoring agency, as required by the prime award and\or at contract closeout.

The Contract Office must give prior approval for the acquisition of equipment not specified in the subcontract where title will vest with the federal government.  A subcontractor will assume full risk for loss, damage or destruction of federal property in the subcontractor's possession or control except to the extent that the subcontract, with the advance approval of the Contracts Office, relieves the subcontractor from such liability, per FAR 52.245-4.  If there are unusual property requirements, they will be stated in a special conditions attachment to the subcontract. These will include title restrictions and reporting requirements.

Purpose

To retain university property records for the required period of time.

Policy

OSU will keep and maintain property control records for all active, missing, and retired capital equipment on the FIS Fixed Asset Module.  Other property records are retained by Property Management and Departments for the periods listed below:

Record Type	Property Management	Departments
Equipment Inventory Lists	4 years	2 years
Lost/Stolen Property Reports	4 years after loss	2 years after loss
Damage Or Loss Of State
Property Claim	4 years after loss	2 years after loss
Equipment transfer forms	4 years	2 years
Biennial inventory reconciliation	4 years	2 years
Equipment Loan agreements	6 years after term	3 years after term
Equipment Maintenance Records		1 year after disposal
Equipment Loan/Usage logs		2 years after return of prop
Federal Property Records	6 years	3 years
Personal Property Loan Agreements	6 years after term	Upon return of property
Storeroom physical inventories	6 years	2 years
Property Disposition Requests	4 years	2 years
Supplies Inventory Records	4 years	2 years
Surplus Property Records	4 years	2 years
Vehicle Records	2 years after disposal	2 years after disposal

Additional Information

The OSU Archives Records Retention and Disposition Schedule is available online at the Archives website.