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:
Property Management Post Award Financial Operations 25 Buick Street, Room 228 Boston, Massachusetts 02215
Property Manager: Benjamin DeGennaro, Jr. bdegenna@bu.edu (617) 353-8087
Property Management (PM), located within the department of Post Award Financial Operations (PAFOSponsored Programs (SP)- Post Award
SP- Post Award assist...), 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.
Responsibilities
The primary responsibilities of Property Management are:
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.
Departmental Assistance
Property Management can provide assistance with many areas of information including:
Acquisitions 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
Disposition 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
Government Interaction
Per the terms and conditions of various grants and contracts, Property Management assists Research Accounting in filing reports with government agencies. These “equipment reports” are generated from information that is contained in the Asset Accounting Module. The reports detail award spending including dates of purchases, amounts paid, and the purchasing department’s title to equipment.
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.
Common Questions
What does capital equipment mean?
Capital equipment refers to moveable capital equipment and 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, and Boston University has title to, is the custodian of, or is held responsible to account for the item.
Why does the equipment have to be tagged on the front?
The front of the equipment is tagged to easily be visible by Property Management and custodians of the equipment. It also displays that the equipment belongs to Boston University. Additionally, a tag on the front of the equipment allows for a quick inventory of the item and a minimal disturbance to the equipment or its users.
What happens if a tag is removed from my equipment?
If a tag is removed, falls off, or is damaged, please contact Property Management with the model number, serial number, and brief description of the equipment. Property Management will make arrangements to physically tag the equipment with a new tag.
How can I get a list of all my capital equipment?
Upon request, Property Management can run a query of all equipment for a department, custodian/principle investigator, building, or room/lab.
How do I know which items I can take when I transfer?
Property Management can run a query on all equipment for a PIPrincipal Investigator
View Boston University's policy on... or custodian and determine if title is vested with BU, a contractor, or the federal government.
Why are there duplicate items on my list of equipment?
When equipment purchased utilizing multiple sources of payment, it shows up for each department involved with the purchase and the price each department paid.
How do I make a correction to a purchase requisition?
Reach out to Sourcing or BUworks to make any changes after a requisition has been submitted or approved.
What are G/L Accounts?
A general ledger (G/L) account is an account or record used to sort and store balance sheet and income statement transactions
How do I get my equipment serviced?
Equipment under guarantee may be serviced by the purchasing vendor or manufacturer. The department may select its own servicing company or seek assistance from Facilities Management & Planning to service equipment no longer under guarantee.
Who or what is a Department Property Administrator?
Individual selected to facilitate in property management process for their department or group.
What is the difference between real estate property and Property Management?
Property Management handles all things pertaining to capital equipment $5,000 and greater while Real Estate Property Management handles buildings and apartments.
How do I know who hold the title to equipment?
Property Management can determine where the title of equipment is vested.
How do I get approval to take equipment with me when I transfer or retire from BU?
Written approval is required by the dean, department chair, or unit head via a Movable Capital Equipment Management Form. If the equipment is titled to the government or other agency, written approval must also be given by the agency.
How is a custodian selected?
The custodian is usually the principle investigator (PI), department director, or office manager.
How can I get equipment removed?
Contact Facilities Management & Planning to schedule the removal of non-hazardous equipment and contact Environmental Health & Safety for hazardous equipment. Please see Disposition section for additional details.
What do I do if equipment is being donated to BU or I want to donate equipment to another institution?
Please see Gift and Donations section for additional information regarding donated equipment.
I want to build a fabrication. What do I do?
Contact Office of Sponsored Programs (OSP) to setup a child account for the fabrication. Once the child account has been setup, fill out a Fabrication Application and submit it to Property Management. Please see Fabricated Capital Equipment section for additional information regarding fabrications.
What do asset numbers mean and what is the difference between an asset number and an inventory number?
An asset number is the unique identification number given to an asset by the SAPBoston University’s financial system system only used within Property Management. Inventory number is the unique number displayed on a BU-Property Tag.
What do I do if my equipment is stolen or damaged?
If an item is stolen, contact Boston University Police Department to file a report. If an item is damaged, notify Risk Management. Property Management must also be contacted on both occasions.
What do I do if I have equipment that is not in use?
If the equipment is still in usable condition, it can be sold to other departments or other institutions. Equipment may also be added to our equipment Not in Use list. If equipment no longer in an operable condition, follow the correct procedures to have the equipment properly disposed of.
Glossary of Terms
Name
Definition
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
Asset Class
199400 – Moveable Capital Equipment 199405 – Gift Moveable Equipment 300499 – Non-Capital Asset
TRBU – Trustees of Boston UniversityAsset Status A – Active D – Disposed H – Hold M – Missing N – Not In Use (storage) W – Written Off
Disposition Reason
DN – Donated DS – Destroyed (Fire, Flood, Etc.) RV – Returned to Vendor SC – Scrapped SO – Sold ST – Stolen TI – Trade In TR – Transferred WO – Written Off
Business Area
1CRC – Charles River Campus 2MED – Medical Research Campus 3NBL – NEIDLNational Emerging Infectious Diseases Laboratories
The NE... 8 Sub – Subsidiaries 9 TRS – Treasury Business Area
Inventory Status
G – Good P – Poor S – Supplies U – Unusable X – Not Inventoried
Property Indicator
B – Boston University F – Federal Government L – Leased N – Loaned O – Other Institution
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