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UCR Policies and Procedures

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Campus Policy Number: 750-12

Equipment Management - Purpose and Responsibilities for Management of

Policy Owner: Equipment Management

Effective Date: July 1, 2004

University of California policy and sound business practices require on-going accounting and management of high dollar Campus equipment assets. In addition, the awarding of contracts and grants is contingent on the University having an approved property management system in place and functioning.

  1. Responsibility of the Head of the Custodial Department and the Principal Investigator
  2. The head of the custodial department and the Principal Investigator have primary responsibility for the care, maintenance, records, physical inventory, control, and disposition of inventorial equipment and other University or extramurally funded property. They must maintain up-to-date departmental records and, if a contract is involved, fully inform the Equipment Management Department as to all provisions of each contract document regarding the care, custody, maintenance, records, control, and all transactions involving said property so that the Equipment Management Department may properly carry out its functions regarding inventorial equipment.

  3. Basic Requirements
    1. Equipment Management establishes and maintains an equipment inventory system for the Campus and the Office of the President. Both State funded and extramural-funded equipment are recorded in the system. Equipment Management adds inventorial equipment to the Campus inventory as it is purchased, received as a gift or transferred to this Campus from other institutions.
    2. The criteria used for adding an item to the Campus equipment inventory system is that the item be non‑expendable, have an acquisition cost of greater than $5,000 (including shipping & taxes), be free standing, is complete in itself, does not lose its identity when affixed to or installed in other property, and have a life expectancy of one year or more.
    3. Each department is responsible for providing adequate care, maintenance, security and accountability for all property under its jurisdiction. The location of each item of inventorial equipment shall be noted in the departmental records.
    4. Items added to the inventory are assigned a nine-digit Campus property number. An inventory bar coded label (2" X 1 ¼") is generated, sent to the acquiring department and is required to be applied to the actual the piece of equipment in an easily visible area.
    5. Inventorial equipment is ordered utilizing FAU Account Code series 803XXX. Please refer to UCRFS golden tree for complete account code information.
    6. Component Part or Equipment Enhancement item must have a value of at least $5,000 per part/item in order to be considered an "upgrade" to an existing piece (as identified by the University property number) of inventoried equipment. If the item is an upgrade to computer equipment, then use Account Code 803150, for all other type of equipment use Account Code 803180.
    7. Equipment upgrades valued at less than $5,000 are to be expensed as non-inventorial transactions using Account Code 720XXX. Repair components, regardless of cost, shall also be expensed as non- inventorial transactions. Please refer to UCRFS golden tree for complete account code information.
    8. Changes to the department active inventory (disposal, transfer, loans, lost, stolen etc.) will be reported to the Equipment Management Office utilizing the on-line system. An Equipment Inventory Modification Request (EIMR), available at http://matmgmt.ucr.edu/equipment/ (or equivalent document) will be used for all off campus transfers.
    9. Once a year, an email notice is sent to all departments to conduct an annual verification or a physical inventory. Campus departments can print out their own equipment inventory listing (EQ920) for reconciliation of its inventory with updating instructions via email. An annual verification is required once a year. The custodial department will conduct a physical inventory of their assets at least every two years.
    10. Every year, the Equipment Management Office generates a statistical sampling of inventorial equipment, which is utilized in conducting physical inventories. The purpose of these statistical sampling inventories is to verify the accuracy of an individual department's records.
      1. Upon notification of the updated inventory from the department, Equipment Management will forward copies of the statistical sampling to the department chair or designated representative. The department must determine the location of all items on the sample inventory (5% of department inventory) and provide the name and telephone number of the individual responsible for coordinating the sample inventory with Equipment Management. An appointment will then be made to actually conduct the physical inventory.
      2. If 90% accuracy is obtained on the first sample inventory, control of equipment will be considered adequate. If 90% accuracy is not obtained, a second statistical sampling inventory is required. Should the second physical inventory also fail to indicate at least 90% accuracy, the department will be scheduled for a complete departmental inventory. All results of this inventory process are reported to the Office of the President.
    11. All required equipment reports are made by the Equipment Management Office to the Office of the President and Federal and State agencies (i.e. NASA, State Air Resources Board) that provide research funds to the Campus.
    12. Once every two years, the Federal Government audits the Campus equipment management system to validate that it meets the requirement to qualify for continued research funding.
  4. Other Requirements
    1. Equipment Off Campus: An Off‑Campus Loan Form should be executed for all equipment removed from the campus proper. This form is available at http://matmgmt.ucr.edu/equipment/.
    2. Loan of Equipment to the Campus: The University is not responsible for loss or damage to personal equipment unless an Employee Equipment Loan Agreement is executed. This form can be obtained from Equipment Management web page at http://matmgmt.ucr.edu/equipment/. Loaned equipment should be carefully marked to reflect "personal equipment of"
    3. Transfer of Equipment:
      1. To another U.C. Campus Department: An Equipment Inventory Modification Request (EIMR), available at http://matmgmt.ucr.edu/equipment/ (or equivalent document) will be used for all off campus transfers.
      2. To a non U.C. Institution: Contact the Equipment Manager, as special restrictions apply. University of California policy is that Federally funded items can be transferred at no charge; reimbursement is required on State and University funded equipment at fair market value (UCR Policy & Procedure 750‑24).
      3. Fabrication of Equipment: See UCR Policy & Procedure 750-18.
INVENTORIAL EQUIPMENT - EXCEPTIONS
  1. Purchases which are considered inventorial regardless of acquisition cost and life expectancy:
    1. Firearms, regardless of cost, are considered inventorial.
    2. Equipment acquired under contracts and grants that set a dollar limit of less than $5,000 for inventorial items (Consult specific Agency guidelines and contract provisions for exceptions to cost limitation).
    3. The small initial complement of supplies, spare parts, and non-inventorial accessories acquired with and needed to put an inventorial equipment unit into operation are to be capitalized and added to the value of the primary unit of equipment. Spare parts or subsequently acquired replacement parts are not added to the value of the equipment.
    4. Guidelines governing the control of theft-sensitive items (valued at less than $5,000) may be established at the department level for managing theft sensitive items valued at less than $5,000. Examples of theft-sensitive items include:
      1. Typewriters,
      2. Cameras and projectors,
      3. Binoculars, telescopes, periscopes, microscopes, microscope assemblies, optical elements,
      4. Parts, attachments, and accessories for optical apparatus,
      5. Recorders, audio, visual cassette,
      6. Wheeled stretchers,
      7. Powered hand tools,
      8. Stereo components, and
      9. Computers, PDA, computer printers, computer terminals.
  2. Non-Inventorial - Except materiel secured under contract or grant where special requirements are established. Non-inventorial items are not subject to the requirements for property number identification and physical tracking. However, they may be subject to group capitalization or capitalization as part of an existing unit of equipment.
    1. The following items are considered non-inventorial regardless of cost:
      1. Consumable and expendable supplies,
      2. Systems furniture,
      3. Replacement parts that do not extend the life or increase the value of the equipment,
      4. Mattresses,
      5. Mayo instrument stands,
      6. Sectional slide file cabinets,
      7. Linen hampers,
      8. Microtome knives,
      9. Diamond knives,
      10. Regulators (flow type valves),
      11. Platinum crucibles,
      12. Medical transducers, except ultrasonic transducers,
      13. Equipment components. (Except that components shall be added to the equipment inventory system when they meet the criteria specified under either part B7 or are part of an equipment fabrication
      14. Surgical loupes,
      15. Surgical instruments contained in sterile wrap procedure trays, such as scissors, retractors, needle holders, and
      16. Laser tubes.
    2. Parts of buildings and structures are considered non-inventorial and include:
      1. Items of equipment normally classified as inventorial, which are permanently built in or installed, the removal of which would impair the building or structure.
      2. Items of equipment permanently built in or installed which, if removed, would be substantially reduced in value.
      3. Items of equipment, which provide general services to more than one department.
      4. Heat distributing systems servicing only the building in which the equipment is installed. Central heating plants that service more than one building are reported under plant distributing systems as a complete unit.
      5. Electrical and power distribution systems within the building or structure, including all permanently attached lighting fixtures, distribution panels, and other such equipment.
      6. Water distributing systems including all piping, plumbing, drains, and fixtures.
      7. Telephone and intercommunication wiring systems, but excluding intercommunication stations which operate independently of wiring systems.
      8. Fire protection systems, including all fire alarm systems, boxes and gongs, sprinkler systems, and other fire fighting apparatus that is permanently installed.
      9. Air conditioning, air purification and dust collection systems, excluding unit air conditioners and dust collection units.
      10. Compressed air and industrial medical distributing systems, but excluding generating or compressing equipment that serves only one department.
      11. Railroad trackage within a building or structure.
      12. Elevator shafts and elevators.
      13. Crane runways, but excluding the cranes and operating mechanisms.
      14. Pits and special foundations.
      15. Mechanically operated doors.
      16. Venetian blinds, awnings, shades, drapes, wall-to-wall carpeting, and similar items.
      17. Any facility changes, the total cost of which is $4,999 or less, including the construction, alteration or demolition of structures or fixed equipment, changes to utility outlets, the extension of existing utility outlets, the construction and/or installation of shelves, hangers, hooks, bulletin boards, directories, and signs which are attached to the wall, the initial installation of venetian blinds and window shades, and changing of windows from transparent to translucent or opaque glass or vice versa.
    3. Software
    4. Only software costs included with the purchase cost of hardware (not separately identified on the vendor's invoice) shall be capitalized and included as part of the value of inventorial equipment.

      All separately invoiced software development costs, license fees, and maintenance costs, capitalized or not, are non-inventorial expenses.

DEFINITIONS

Accessory Item - defined in FAR 45.501 as - An item that facilitates or enhances the operation of plant equipment, but which is not essential for its operation.

Agency - Entity, i.e., organization, corporation, foundation, person, from which the University derives extramural support through contracts or grants.

Auxiliary Item - defined in FAR 45.501 as - An item without which the basic unit of plant equipment cannot operate.

Award - A legal document providing extramural support. Award includes grants as well as contracts.

Borrowed (Loan From) Equipment - Equipment under the control of The Regents, whose title is vested with another University campus, a non-university, non-government agency, or government agency.

Component Parts - Items which are not complete in themselves and thus are not separately inventoried. Component parts are capitalized or expensed according to Section B.7.

Contract - An agreement. As used in this Bulletin, it includes grants and cooperative agreements, as well as contracts with extramural sponsors.

Contractor - University, i.e. the Corporation; The Regents of the University of California.

Contracting Officer - The duly authorized individual delegated by appropriate authority to enter into a contract, and thereafter administer the contract, on behalf of the Government.

Custodial Department - That department or unit of a University campus having responsibility for materiel; i.e., using department or sponsoring department for a contract.

Discrepancies Incident to Shipment - defined in FAR 45.501 as - All deficiencies incident to shipment of Government Property to or from a Contractor's facility whereby differences exist between the property purported to have been shipped and the property actually received. Such deficiencies include loss, damage, destruction, improper status and condition coding, errors in identity or classification and improper consignment.

Equipment:

University Inventorial Equipment - Non-expendable, tangible, personal property which has an acquisition cost of $5,000 or more, is freestanding, is complete in itself, does not lose its identity when affixed to or installed in other property and has a normal life expectancy of one year or more.

Found Equipment - Equipment discovered either by the Equipment Management Department or a custodial department, which does not appear on the records of inventorial equipment.

Government Inventorial Equipment - Government-titled personal property which has an acquisition cost of $5,000 or more and a normal life expectancy of one year or more. Government equipment does not lose its identity as personal property by reason of affixation to any real property.

Equipment Administrator - The campus administrative officer to whom the Chancellor has delegated authority to control equipment.

Equipment Account Code - A six-digit code assigned to inventorial equipment. The classification code matrix is maintained by the UCRFS Financial System Steering Committee.

Fabrication - An item of non-expendable, tangible, personal property, physically constructed by a University activity, which has a total acquisition cost of $5,000 or more, is freestanding, is complete in it self, does not lose its identity when affixed to or installed in other property and has a normal life expectancy of one year or more. Fabrication as used in this policy does not include equipment fabricated for the sole purpose of sale and delivery to an external entity under an award specifically for the fabrication of the equipment. See Accounting Manual, Section P‑415‑32(IV) "Departments are responsible for the proper valuation of fabricated equipment and for disseminating to department units the procedures detailed in this chapter."

Fair Market Value - The fair market value of equipment is the price at which a willing buyer and a willing seller settle a sale of such equipment. Recent transactions or advertisements can be used as an estimate of fair market value.

Furniture - Excluding systems furniture, any item used to furnish a room including, but not limited to, chairs, desks, credenzas, tables, bookcases, and shelving units that meet the definition of equipment. Systems furniture is defined as:

  1. Panel/screen - non-load-bearing: All freestanding screens that provide visual and/or acoustical separations, and are intended to be used to divide space but not used to physically support furniture items.
  2. Panel supported systems: Individually connected panels and work surfaces, filing, storage and shelving components and accessories which receive their primary support from the panels and which, when combined, form complete workstations.
  3. Modular systems furniture: Modular furniture made up of independent work surface and storage units with panels used as end panels or space dividers. Includes all modular furniture components that collectively are required to complete a workstation.
  4. Government - United States of America, Federal government, unless otherwise specified, as in "State government."

    Government Property - A special category of materiel defined in FAR 45.101 as - All property owned by or leased to the Government or acquired by the Government under the terms of the contract. It includes both Government-furnished property and contractor-acquired property. Such property acquired under contracts and grants with the University includes:


    1. Government-Furnished Property: property in the possession of, or directly acquired by, the Government and subsequently delivered to or otherwise made available to the University for use under specified contracts and grants.
    2. Contractor-Acquired Property: property acquired or otherwise provided by the University for performing a contract, and to which the government has title.
    3. Excess Government Property: property, which is no longer required by the holding Federal activity and is available to other Federal agencies or Federal contractors such as the University.
    4. Federal Surplus Property: property, which has been screened by all Federal agencies and generally made available to eligible institutions through the State Agency for Surplus Property.

    Loan from Equipment - Equipment under the control of The Regents whose title is vested with another University campus, a non-university, non-government agency, or government agency.

    Loan to Equipment - Equipment loaned by a University department to another department, either intra-campus or intercampus, or by the University to an external agency or individual.

    Material - defined in FAR 45.301 as - Property that may be incorporated into or attached to a deliverable end item or that may be consumed or expended in performing a contract. It includes assemblies, components, parts, raw and processed materials, and small tools and supplies that may be consumed in normal use in performing a contract.

    Materiel - Equipment, apparatus, and supplies.

    Motor Vehicle - Any motorized carrier designed primarily for the transportation of persons or property, which is operated on a public road for a distance greater than one-quarter mile. Not included is any implement of husbandry used for agricultural operations and only incidentally operated or moved over a public road.

    Personal Property - Any movable item subject to ownership; materiel but not real property.

    Plant Equipment - defined in FAR 45. 101 as - Personal property of a capital nature (including equipment, machine tools, test equipment, furniture, vehicles, and accessory and auxiliary items) for use in manufacturing supplies, in performing services, or for any administrative or general plant purpose. It does not include special tooling or special test equipment.

    Principal Investigator - The academic or administrative staff member responsible for initiating and conducting an extramurally funded research, training, or public service project. The individual may also be known as the Project Director or Project Administrator.

    Property Administrator - The duly authorized representative of the contracting officer delegated the authority to administer the contract requirements and obligations relative to government property.

    Special Test Equipment - defined in FAR 45.101 as - Either single or multi-purpose integrated test units engineered, designed, fabricated, or modified to accomplish special purpose testing in performing a contract. It consists of items or assemblies of equipment that are interconnected and interdependent so as to become a new functional entity for special testing purposes. It does not include material special tooling, facilities (except foundations and similar improvements necessary for installing special test equipment), and plant equipment items used for general plant testing purposes.

    Special Tooling - defined in FAR 45.101 as - Jigs, dies, fixtures, molds, patterns, taps, gauges, other equipment and manufacturing aids, all components of these items, and replacement of these items, which are of such a specialized nature that without substantial modification or alteration their use is limited to the development or production of particular supplies or parts thereof or to the performance of particular services. It does not include material, special test equipment, facilities (except foundations and similar improvements necessary for installing special tooling), general or special machine tools, or similar capital items.

    Sponsoring Department - That department or unit of a University campus responsible for the administration of an extramurally funded project.

    State - State of California.

    University - The Corporation; The Regents of the University of California.

    University Property - That property to which title is vested in the University whether secured with general University funds or funds derived from extramural sponsors, or property which has been received as a gift or transferred from another institution.

    Useful Life Schedule - A schedule for assigning life expectancy to inventorial equipment based on the Equipment Classification Code. The schedule is maintained by the Director-Materiel Management.

    OTHER LAWS, POLICIES AND PROCEDURES FOR EQUIPMENT MANAGEMENT:

    OMB CIRCULARS

    A-21 - Cost Principles for Educational Institutions

    A-110 - Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations

    A-133 - Audits of States, Local Governments, and Non-Profit Organizations


    UNIVERSITY BUSINESS & FINANCE BULLETINS

    BUS-4 - University Commodity Codes for Equipment and Supplies

    BUS-29 - Management and Control of University Equipment

    BUS-38 - Disposal of Excess Material and Transfer of Federally-Funded University-Owned Material

    UNIVERSITY WEBSITES

    http://www.purchasing.ucr.edu/equipment/index.php

    http://www.ucop.edu/matmgt/cem.html