This manual has been prepared to assist all departments of Boston University understand the policies, procedures, and government regulations regarding moveable capital equipment from the time of acquisition through disposal.
All purchases that are deemed to be moveable capital equipment owned by or located at Boston University should be identified. This includes items that are donated, leased, loaned, or transferred to BU, as well as all equipment purchased by BU with University or sponsored funds.
Moveable Capital Equipment is defined as any article of non-expendable tangible property (e.g., automobile, centrifuge, microscope, projector, network server) that meets the following capitalization criteria:
- Purchased item has a useful life of one year or greater.
- Cost of the item is $5,000 or greater, including delivery and installation costs, and including the cost of attachments required to operate the item when those attachments are acquired as part of the original equipment purchase.
- Boston University has title to, is the custodian of, or is held responsible to account for the item.
Each Member of the Boston University community has a general obligation to safeguard and make appropriate use of property owned by or accountable to BU. Funds are appropriated to each department’s budget to maintain and service the department’s equipment. Equipment must be kept in good working order and free from defects.
New Construction & Renovations
For all capital projects in excess of $100,000, the capitalization threshold of $5,000 is waived for the purchase of movable capital equipment, provided the following requirements are met:
- The equipment must be non-expendable, tangible personal property having an economic useful life of more than one year. During the normal course of business, these items would be expensed solely because they did not meet the University’s $5,000 capitalization threshold. This exception allows for the capitalization of an original complement of low cost equipment for the initial outfitting of a tangible capital asset or operational unit, or an expansion or renovation to either.
- Equipment eligible for this treatment should be budgeted and charged on the capital budget project as G/L Account 510100 (Minor Equipment) for non-capital items that do not meet these requirements should be expensed.
- This equipment will be accounted for as a composite asset and will be depreciated using the straight-line method over the applicable useful life with no salvage value.
Questions regarding Property Management policies and procedures should be addressed to:
Post Award Financial Operations
25 Buick Street, Room 228
Boston, Massachusetts 02215
Benjamin DeGennaro, Jr. firstname.lastname@example.org (617) 353-8087
Maura Blanchard email@example.com (617) 353-8083
Property Management Team’s Role
Property Management (PM), located within the department of Post Award Financial Operations (Post Award Financial Operations PAFO assists faculty and ...), develops and implements policies, procedures, and a system that enables effect management of equipment for Boston University. Property Management provides support for all matters regarding moveable capital equipment related issues from pre-purchase considerations through retirement of assets. Property Management staff members can assist with purchase & sale, accounting for, and disposal of moveable capital equipment. Property Management should be consulted and can facilitate with equipment matters throughout the entire lifecycle from purchase planning to asset disposition.
Maintain a detailed record of all moveable capital equipment, either owned by or in the custody of Boston University (Any department possessing leased, rented, or loaned equipment must notify Property Management upon receipt of this equipment in order for it to be identified in the Asset Accounting Module);
Physically tag all moveable capital equipment;
Conduct an inventory of physical equipment every two years; and
Provide training and guidance relating to Property Management procedures.
Property Management can provide assistance with many areas of information including:
Assisting in pre-purchase decisions by supplying current equipment information throughout the university
Determining whether or not purchase is needed by providing list of equipment within department
Classifying equipment as either expendable or capital
Identifying and tagging equipment
- Records and Documentation
Recording all moveable capital equipment within the Asset Accounting Module
Documenting the movement of equipment to other departments within BU
Authenticating use and verifying the value of donated and leased equipment
Performing and reconciling physical inventories of department equipment
Reporting property issues to University management, sponsors, and donors
Transferring title of equipment between BU and other institutions
Assisting departments with the proper disposal of moveable capital equipment
Screening (prior to disposal) excess equipment
Facilitating the disposal of moveable capital equipment having hazardous materials
- Sponsored Projects
Reconciling equipment expenditures on sponsored projects
Assisting with subcontractors
Requests for use of equipment in research participation agreements
Assisting with fabrication procedures
All government furnished equipment, regardless of its value, must be reported to Property Management and included within the equipment reports. Physical inventories, disposition requests for material purchased under the award, and issues pertaining to contract closeouts are also detailed within these reports.
Equipment titled to the government may never be dismantled, cannibalized, or sold without prior permission from the contracting agency. This equipment remains titled to the government from acquisition to disposition. Tampering with government titled equipment can result in the loss of future sponsored grants and/or financial repercussions.
What does capital equipment mean?
Why does the equipment have to be tagged on the front?
What happens if a tag is removed from my equipment?
How can I get a list of all my capital equipment?
How do I know which items I can take when I transfer?
Why are there duplicate items on my list of equipment?
How do I make a correction to a purchase requisition?
What are G/L Accounts?
How do I get my equipment serviced?
Who or what is a Department Property Administrator?
How do I dispose of Hazardous waste?
What is the difference between real estate property and Property Management?
How do I know who hold the title to equipment?
How do I get approval to take equipment with me when I transfer or retire from BU?
How is a custodian selected?
How can I get equipment removed?
What do I do if equipment is being donated to BU or I want to donate equipment to another institution?
I want to build a fabrication. What do I do?
What do asset numbers mean and what is the difference between an asset number and an inventory number?
What do I do if my equipment is stolen or damaged?
What do I do if I have equipment that is not in use?
Glossary of Terms
|Asset||An item or group of items functioning together that meet the capitalization level and recorded within the Asset Accounting Module.|
|Asset Accounting Module||The Property Management database containing information for all accounted moveable capital equipment.|
|Asset ID Number||The unique identification number given to an asset by the SAP system only used within Property Management.|
|BU-Property Tag||An adhesive label affixed to an asset containing a barcode and a unique inventory number.|
|Cannibalization||The removal, for reuse of components rendering the parent unit unusable.|
|Capital Equipment||Moveable tangible equipment having a life expectancy of one year or more and a unit cost of $5,000 or more (exclusive of sales and/or use tax, freight, and installation).|
|Capital Improvement Projects||Projects embodying the constructions or purchase of new facilities, construction of major additions to existing facilities, or construction incident to a major change in function of an existing facility.|
|Capitalization||The process of assessing assets to determine if the equipment has a life expectancy of one year or more and an acquisition cost of $5,000 or more.|
|Capitalized||Recognized an expenditure and/or gift as an asset rather than an expense, usually at its present value.|
|Care of (C/O)||C/O stands for Care Of and it is a field in the delivery address tab of a shopping cart. This field is used for providing the name of the recipient of the purchased goods.|
|Child Account||A sub account of a grant used for various purchasing needs.|
|Contractor Furnished Equipment||Equipment furnished and owned by a contractor and loaned to BU.|
|Cost Center||The unique number given to identify a department.|
|Custodian||The individual tasked with being accountable for an asset. Most cases it is the principle investigator (PI)|
|Department Property Administrator (DPA)||Individual selected to facilitate in property management process for their department or group.|
|Depreciation||The amount of cost charged to current operating budget for assets capitalized by BU and charged to expense over a period of time. BU utilizes straight line depreciation.|
|Disposal||The act of removing equipment from the university.|
|Disposition||The action taken to physically transfer property from one’s accountability by means of disposal, cannibalization, or transfer.|
|Equipment Not-in-Use||Excess equipment in working condition that is made available for use by other departments.|
|Excess||Also referred to as “surplus,” is the term used to describe assets that are no longer in use or no longer benefits a project or person.|
|Expendable||Equipment that is less than $5,000 and/or has a useful life of less than one year.|
|Fabrication||Equipment that was assembled or built by a BU department.|
|General Ledger (G/L) Account||Balance sheet and income statement accounts.|
|Government Furnished Equipment||Equipment furnished and owned by a government agency and loaned to BU.|
|Internal Order (IO)||An Account Assignment Category that is used for purchasing.|
|Inventory Number||The unique number displayed on a BU-Property Tag.|
|Movement||The act of relocation of equipment from one location to another or from one custodian to another.|
|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 and has reported to Property Management to be properly insured.|
|Principle Investigator (PI)||The individual who holds the ultimate responsibility for the design, conduct, and management of a research study.|
|Product Category Code||A code that represents a type of product or service.|
|Purchase Order (PO)||A legally binding document used to purchase materials and services from suppliers.|
|Repair & Maintenance||Routine maintenance is defined as normal recurring expenditures required to maintain equipment in efficient, operating condition.|
|Responsible Cost Center||The department responsible for accounting for the equipment.|
|SAP||SAP, which stands for Systems, Applications, & Products in Data Processing, is the University-wide system for database management.|
|Scrapping||Also referred to as disposal, is the act of removing equipment from the university.|
|Shopping Cart||Used to request goods and services at BU. Also known as a requisition.|
|Surplus||Equipment currently not in service and with no anticipated future use.|
|Transfer||When equipment permanently relocates on or off campus and title is relinquished by or given to BU.|
Master Data Record Codes
199405 – Gift Moveable Equipment
300499 – Non-Capital Asset
Asset Class Name
199110 – Land Improvements
199200 – Buildings
199210 – Building Improvements
199220 – Leasehold Improvements
199300 – Capital Leases
199400 – Moveable Equipment
199405 – Gifts –MME
199410 – Non-Moveable Equip
199420 – Capitalized Software
199500 – Library Books
199660 – AUC
199700 – FIN-47
199800 – Infrastructure
200100 – Non-Core Land
200110 – Non-Core Land Imprs.
200200 – Non-Core Buildings
300499 – Non-Capital Equip.
020 – Office Equipment
030 – Laboratory & Scientific
040 – Medical & Dental
050 – Computer Equipment
060 – Audio-Visual & Photographic
070 – Shop Machinery & Tools
080 – Printing, Copying & Binding
090 – Musical Instruments
100 – Athletic Equipment
110 – Housekeeping & Garbage
120 – Transportation Equipment
130 – Food Prep. & Service
140 – Fine Arts
150 – Residence Furnishings
160 – General Purpose
170 – Misc.
A – Active
D – Disposed
H – Hold
M – Missing
N – Not In Use (storage)
W – Written Off
DS – Destroyed (Fire, Flood, Etc.)
RV – Returned to Vendor
SC – Scrapped
SO – Sold
ST – Stolen
TI – Trade In
TR – Transferred
WO – Written Off
2MED – Medical Research Campus
3NBL – National Emerging Infectious Diseases Laboratories The NE...
8 Sub – Subsidiaries
9 TRS – Treasury Business Area
P – Poor
S – Supplies
U – Unusable
X – Not Inventoried
F – Federal Government
L – Leased
N – Loaned
O – Other Institution