II. Property Management Policies A. Moveable Capital Equipment Policies Moveable Capital Equipment (Object Code 0930)
Components, Upgrade, Bundling, and Bulk Purchasing
Software/Databases The policy regarding software/databases is similar to that of components:
Fabricated Capital Equipment (Object Code 0955) Object code 0955 is used for items that meet the capitalization criteria and are assembled or manufactured by one University department (e.g., Physics Shop) for use in that department, or for sale to another department that uses purchased materials and in-house machinery, tools, or labor (see University Service Center Manual). Supplies and materials used in the fabrication by the shop (service center) will be expensed to the appropriate object code. When the "fabricating department" charges the "acquiring department," it should use object code 0955 for the debit and object code 0983 (Expense Recovery) for the credit. An Asset ID number should be requested from the Property Management Office before processing the initial requisition. The Asset ID number must be noted on all requisitions and journal entries associated with the fabricated item. The item will be physically tagged when assembly is complete. When a department purchases parts to assemble equipment, please contact the Property Management Office and provide the following information (prior to the purchase):
If a grant or contract funded fabrication is expected to go over budget, the department must obtain approvals and re-budgeting from the Office of Sponsored Programs. When an item is fabricated without the use of a campus shop (or other University-designated service center), the cost of the fabrication should only include the cost of materials and equipment that become a permanent part of the fabrication. The Property Management Office must be consulted prior to beginning work on the fabrication. Items fabricated for sale to other institutions (excluding the federal government) are not considered Boston University moveable capital equipment. Materials purchased for this type of fabrication should be charged to object code 0910. The funds received from the external buyer should be credited to object code 0839 (Receipts and Credits). The Budget office should be consulted regarding the appropriate account in which to deposit the revenue. Equipment and furnishings fabricated by Buildings and Grounds or Facilities Management are charged to object code 0931 (Buildings and Grounds Services). Fabrications that do not meet the capitalization criteria should be charged to a non-capital object code, as follows:
Gifts and Loans of Equipment All gifts to Boston University must be reported promptly to the Development Office. The Development Office will record the value of the gift and the Property Management Office will maintain a record of items that meet the capitalization criteria. These items will be recorded in the Property Management System for insurance and financial statement purposes and will be assigned an Asset ID number. Boston University is responsible for safeguarding and insuring items loaned to the University. The recipient of equipment that is loaned to the University for a period of one year or more, should determine the replacement value of the items and inform Property Management if the loaned equipment meets the capitalization criteria. Please contact the Office of Procurement if assistance is needed to determine the value of an item loaned to the University. Loaned equipment will be recorded in the Property Management System and will be assigned an Asset ID number. Equipment Leases Boston University is responsible for safeguarding and insuring capital equipment leased to the University. Please contact the Property Management Office upon receipt of equipment leased for one year or more. A member of the Property Management staff will tag the items and record them as leased equipment in the Property Management System. Lease agreements are processed by the Office of Procurement for the Charles River Campus, and the Office of Purchasing for the Medical Campus, based on approved requisitions. Please consult with the Office of Procurement or the Office of Purchasing prior to entering into a lease agreement. All lease payments should be charged to a non-capital object code, as follows: 0913 - rental of all equipment except reproduction and printing equipment 0916 - rental of reproduction and printing equipment (e.g., copiers) Final buyout of a lease should be charged to object code 0930 if the item meets the capitalization criteria cited in Part I. Transfers of Equipment from Other Institutions Title is vested in the University for each item of equipment transferred into the University unless grant regulations dictate otherwise. This equipment must be recorded in the Property Management System by submission of the Moveable Capital Equipment Management Form (see Appendix A). University Moveable Capital Equipment Located Off Campus When University equipment is located at a personal residence or some other off-campus location, the address of the off-site location should be recorded on the Property Management System. At the time of purchase, moveable capital equipment must be delivered directly to the University and tagged by the Property Management Office before it is moved to another location. If the item must be forwarded quickly to its final location, the department should call the Property Management Office and request that a Property Administrator come to the department to tag the item before it is moved off campus. Moveable capital equipment should not be shipped directly from the vendor to a person's home. In situations where it is impractical to ship equipment directly to the University, please contact the Office of Property Management to make arrangements to have the asset tagged (see Appendix C). Written department level approval should be obtained when equipment will be located off campus for an extended period of time. Government Equipment (also see Government Regulations) Title to federally funded property remains vested in the federal government, except when exempted by statutory authority. Disposition of government property is subject to strict regulations that are enforced by the Property Management Office. Specific policies regarding government equipment are described throughout this manual. Equipment purchased with federal grant funds is an example of "federally funded property." B. Equipment Repair/Maintenance (also see Maintenance) Routine maintenance is defined as normal recurring expenditures required maintaining equipment in efficient operating condition. These costs should be expensed to a non-capital object code, as follows: 0915 - Contracted Services (warranty costs and service of all equipment, except reproduction and Printing) 0916 - Reproduction and Printing (warranties and service of reproduction and Printing equipment) |
PROPERTY HOME MOVEABLE CAPITAL EQUIPMENT MANUAL EXPENSE OBJECT CODES (from Office of the Comptroller) INCOME OBJECT CODES (from Office of the Comptroller) FORMS CONTACT US LINKS PROPERTY TRAINING PRESENTATION |
