Moveable Capital Equipment Policies and Procedures Presented by: Property Management Post Award Financial Operations
Property C y Cont ntacts Michael Alessandro, Director, Facilities Cost Analysis 353-8079 Ben DeGennaro Jr, Property Manager 353-8087 Stephen Doolin, Property Administrator 358-5259 Sarah Neveux, Property Administrator 353-8083 Property Website: http://www.bu.edu/cfo/post-award-financial-operations/ departments/property-management-pm/resources-overview/ property-training-presentation / Post Award Financial Operations October 2012
Present ntation O n Obje jectives Define what is “Moveable Capital Equipment” Define Property Management’s role in the University Community Define Department’s role in the management of Moveable Capital Equipment How Property Management supports the University Community Helping all Departments follow University Policies and Procedures when: A) moveable capital equipment is transferred into or out of the University B) equipment donation policies C) equipment disposal policies Understanding fabrications, Government titled equipment, equipment off campus, Leased equipment, and Surplus equipment. SAP G/L Accounts Related to Moveable Capital Equipment Stolen Equipment Post Award Financial Operations October 2012
Wha hat i is M Moveable le C Capital E l Equipme ment nt Moveable Capital Equipment is defined as any article of non-expendable tangible property (e.g. automobiles, centrifuge, microscope, network server) that meets the following capitalization criteria: The item purchased has a useful life of one year or greater The cost of the item is $5,000 or greater including delivery and installation cost, and including the cost of attachments required to operate the item when those attachments are a part of the original purchase The University has title to, is the custodian of, or is responsible to account for the item Post Award Financial Operations October 2012
Role le o of t the he P Property M y Mana nageme ment nt O Office Maintain an accurate equipment inventory database Comply with federal regulations (OMB Circular A-110, A-21) Tag all moveable capital equipment owned by and/or located at Boston University Complete government property reports Supply information to Risk Management and University departments Assist in accounting functions depreciation for the financial statement Conduct physical inventories at least every 2 years Post Award Financial Operations October 2012
Inf Informa mation M n Maint ntaine ned A About E Each A h Asset Asset ID number BOSTON UNIVERSITY Descriptive profile IIIIIIIIIIIIIIIIIIII BU - 123456 Manufacturer Property Management (617-353-8083) Model number Serial number Acquisition price /invoice information Campus location Building & room Owner Title Responsible Cost Center Capitalization Date Custodian Post Award Financial Operations October 2012
OMB C Circula lar A A-1 -110 & & A A-2 -21 A physical inventory shall be taken at least once every two years. All equipment must be located, verified to exist, and functioning Investigate and correct any differences between the physical A-21 inventory and the property system A-110 Verify the existence, current utilization and continued need for the equipment Reports submitted annually listing all federally owned equipment Screening procedures must be in place to ensure all purchases are necessary Depreciation must be supported by adequate and current property records October 2012 Post Award Financial Operations
Fina nanc ncial S l Stateme ment nt a and nd De Depreciation n Financial Statement The Property System is used as the basis for moveable capital equipment depreciation expense for the University’s Financial Statements Depreciation Depreciation expense will be recovered through the Facilities & Administrative (F&A) Cost Rate; FY 2013-2014 63.7% Calculated via the SAP Property Module Straight line method; 3-15 year useful lives October 2012 Post Award Financial Operations
Role le o of t the he De Departme ment nt i in P n Property M y Mana nageme ment nt Assign a primary property coordinator, keeps accurate records of where and to whom equipment is delivered once received by the department Comply with University policies & procedures regarding equipment including all transfers and donations. Assist during physical inventories Contact Property Management* when -equipment moves permanently within the cost center (between buildings, floors) -equipment transfers to another cost center or is leaving the University -equipment is disposed, transferred, sold, stolen, traded in, scrapped, donated, returned to vendor, destroyed or damaged by fire or flood, etc. -equipment is no longer in use *Movable Capital Equipment Management Form Post Award Financial Operations October 2012
Acquisition – n – S Sho hopping ng C Cart Shopping cart completed by department and forwarded through an approval process is the best method for equipment purchasing Property Management processes all shopping carts on a daily basis unless coding of the cart is a factor and the shopper does not respond in a timely manner Property Management is notified through A/P system when transactions are invoiced. Payments on the purchases are linked to the asset shell that Property creates from the shopping cart. Property Management will call to set up an appointment to come to your location to tag and gather specific information from the new equipment BU asset ID tags are placed on the front of all equipment. This policy ensures that the equipment is easily identified as Boston University equipment and it enables the moveable capital equipment inventories to be completed safely and without shifting or relocating any equipment Feel free to call us if we don’t call you October 2012 Post Award Financial Operations
Security T y Tracki king ng o of O Office P Property y S.T.O.P. S ECURITY T RACKING OF O FFICE P ROPERTY PROTECT OUR PROJECTORS STOP THEFT SAVES MONEY ON LINE DATABASE MULTI-YEAR PROGRAM WITH NO LOSSES Post Award Financial Operations October 2012
Trans nsferred a and nd L Loane ned E Equipme ment nt a at B Boston U n Uni niversity y Property Management will supply the Department Chair or Department Head with a list of equipment. He/she must select which equipment the P .I. will be permitted to take from the University. Property Management will make all necessary adjustments to the System, Ledger, and forward all necessary paperwork to each individual involved, including the new institution. The Department Chair must approve the transfer of the equipment by notifying the Property Manager via electronic mail. The Department Property Administrator should notify Property Management when a new P .I. transfers into the University with equipment. This equipment will be reviewed and entered into the Property database Equipment in the Property database will be covered by the University’s insurance policy Departments must notify Property Management when equipment is on loan to the University from another institution to ensure the equipment is covered by the University’s insurance policy Post Award Financial Operations October 2012
Do Dona nations ns t to t the he U Uni niversity y All donations/gifts to the university should be reported to the Development Office The Development Office will supply the donor with the necessary paperwork for their tax purposes Property Management is notified through the Development Office of all items that meet capitalization criteria, Property will then contact the department for the location of the donation in order to tag the equipment and enter it into the Property database October 2012 Post Award Financial Operations
Equipme ment nt Di Disposals ls When equipment is sold, stolen, traded in, scrapped, donated to another institution, destroyed, returned to the vendor, or otherwise made unavailable to the University, it is the responsibility of the Department Property Administrator to notify Property Management by submitting the Moveable Capital Equipment Management Form prior to any disposal. The form can be found and down loaded from the Property web site. It is listed under “Forms”. Title to any equipment must be determined before the equipment can be disposed. Property Management can assist you in that determination. Please note that stolen property must immediately be reported to the Boston University Police, Risk Management and Property Management Post Award Financial Operations October 2012
Fabricated M Moveable le C Capital E l Equipme ment nt Prior to the start of the fabrication the department must notify and request a Fabrication Application from Property Management. The application must be filled out completely and returned to Property Management for review. A BU asset ID tag will be issued via return mail Items must meet the capitalization criteria when completed, parts must be assembled or manufactured by one University Dept for use by the University. Shop charges-including materials & labor can be charged to the fabrication. Purchased items must be a PERMANENT part of the fabrication to be charged to G/L account 571420. Reference the assigned tag number on all shopping carts Post Award Financial Operations October 2012
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