Moveable Capital Equipment Policies and Procedures Presented by: - - PowerPoint PPT Presentation

Moveable Capital Equipment Policies and Procedures

Post Award Financial Operations

Presented by: Property Management

Property C y Cont ntacts

Post Award Financial Operations

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/

October 2012

Present ntation O n Obje jectives

Post Award Financial Operations

 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

October 2012

Wha hat i is M Moveable le C Capital E l Equipme ment nt

October 2012 Post Award Financial Operations

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

Role le o

• f t

the he P Property M y Mana nageme ment nt O Office

Post Award Financial Operations

 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

October 2012

Inf Informa mation M n Maint ntaine ned A About E Each A h Asset

October 2012 Post Award Financial Operations

 Asset ID number  Descriptive profile  Manufacturer  Model number  Serial number  Acquisition price /invoice information  Campus location  Building & room  Owner Title  Responsible Cost Center  Capitalization Date  Custodian

BOSTON UNIVERSITY IIIIIIIIIIIIIIIIIIII BU - 123456

Property Management (617-353-8083)

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

inventory and the property system

 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 A-21 A-110

Fina nanc ncial S l Stateme ment nt a and nd De Depreciation n

October 2012 Post Award Financial Operations

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

Role le o

• f t

the he De Departme ment nt i in P n Property M y Mana nageme ment nt

Post Award Financial Operations October 2012

 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

Acquisition – n – S Sho hopping ng C Cart

October 2012 Post Award Financial Operations

 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

• f 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

Security T y Tracki king ng o

• f O

Office P Property y

Post Award Financial Operations

S.T.O.P.

SECURITY TRACKING OF OFFICE PROPERTY

 PROTECT OUR PROJECTORS  STOP THEFT  SAVES MONEY  ON LINE DATABASE  MULTI-YEAR PROGRAM WITH NO

LOSSES

October 2012

Trans nsferred a and nd L Loane ned E Equipme ment nt a at B Boston U n Uni niversity y

October 2012 Post Award Financial Operations

 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

Do Dona nations ns t to t the he U Uni niversity y

October 2012 Post Award Financial Operations

 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

Equipme ment nt Di Disposals ls

October 2012 Post Award Financial Operations

 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

Fabricated M Moveable le C Capital E l Equipme ment nt

October 2012 Post Award Financial Operations

 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

Fabrication Inf n Informa mation n

October 2012 Post Award Financial Operations

The fabrication application will be provided by e-mail or may be downloaded from the Property web site The fabrication application asks for:

 Detailed description of the fabrication & items that will comprise it  Estimated cost of the completed fabrication  Expected date of completion & location  Name of individual to contact when fabrication is completed so that

Property Management may tag the completed fabrication Multiple grants are permitted on one fabrication with prior approvals

 Grant I.O. number(s)

Build lding ng t the he F Fabrication n

October 2012 Post Award Financial Operations

 Tools, Supplies, or Equipment which are used, but do not become a

permanent part of the fabrication, should be charged to appropriate G/L accounts (510010, 510040, 510100, 571400)

 Any purchase using G/L account 571420 must become a permanent part

• f the fabrication

 Fabrications on awards will need the approval of the Research

Administrator(s) to obtain the appropriate funding available

 Award should reflect a fabrication budget line item

 EVERY FABRICATION ON A SPONSORED AWARD

MUST ALSO HAVE A UNIQUE I.O. NUMBER

Comple letion o n of t the he F Fabrication n

October 2012 Post Award Financial Operations

Upon Completion of a fabrication:

 Property Management will notify General Accounting to finalize their

asset under construction (AUC) information. Property Management will create a shell for the fabrication.

 Once the paperwork is completed, the fabrication becomes a newly

activated piece of moveable capital equipment and will now depreciate

 Once activated, no additional charges may be added or charged to the

fabrication

Go Governme nment nt T Title led E Equipme ment nt

October 2012 Post Award Financial Operations

 All of the same requirements as BU property and:  May require sponsor approval before purchase  Sponsoring agencies may have their own tags  Item cannot leave the university without notifying Property

Management and the awarding agency

 The Government does not depreciate equipment, the purchase price remains

the value forever or until the Government relinquishes title or the asset is transferred from the University

 The equipment may not be cannibalized  Call Property Management; we will assist in the title transfer

Moveable le C Capital E l Equipme ment nt o

• ff C

Campus

October 2012 Post Award Financial Operations

 All off campus University-owned moveable capital equipment must be

tagged by Property Management.

 Contact Property Management if item is to be moved off campus  make certain equipment is tagged  must have department heads approval to be off campus  Some equipment delivered

directly to off campus location;

 Tag-By-Mail Process

Leased E Equipme ment nt

October 2012 Post Award Financial Operations

 BU insures items leased by the University.  Department must contact Property Management when

leased moveable capital equipment is received.

 Leased equipment G/L Account: 511800  Lease buyout: G/L Account 571400 If >= $5,000

Surplu lus E Equipme ment nt

October 2012 Post Award Financial Operations

 Surplus equipment is equipment that is not in use for its specified function  Federal titled equipment requires the agency permission for disposal. Call Property

Management to confirm equipment title

 Donations can be made to an organization  Sold to scrap dealer or re-seller

Property Management must be notified prior to any type of equipment disposal and approval of the department head is required! Equipment remains on the Ledger until it is removed by Property Management

Ge Gene neral L l Ledger A Account nts

October 2012 Post Award Financial Operations

571410 571420

Category General Ledger Account

Non-moveable capital equipment Fabricated capital equipment Replacement parts: Under $1,000.00 510010 or 510040 From $1,000.00 to $4.999.99 510100 Repairs 515005 Consumable Supplies – Research Laboratory 510040 Warranties / Licenses 515000 Software license 516200 Fine Arts (Unclassified Expense) 519999 Size or other restriction - Moveable capital equipment not tagged 571400 Accessories 510010 or 510100 Attachments (with original order) 571400

G/ G/L A Account nt E Example les

October 2012 Post Award Financial Operations

Equipment

Cost G/L account code

Server $5,500.00 571400 21” Monitor $300.00 571400 2 TB hard-drive $230.00 571400 Back-up system $450.00 510010 Equipment

Cost G/L account code

Laser jet printer $1,500.00 510100 Toner $125.00 510010 Maintenance contract $1,300.00 515005 Software License $1,000.00 516200

Stole len E n Equipme ment nt

October 2012 Post Award Financial Operations

Stolen Equipment Telephone Number

Property Management 353-8083 Risk Management 353-3020 B.U.P .D. 353-2110

Questions ns & & A Ans nswers

Questions & Answers

October 2012 Post Award Financial Operations