4-OP-D-2-F PROPERTY

Responsible Division: Finance and Administration
Approving Official: Kyle Clark
Effective Date: October 3, 2014
Last Revision Date: September 11, 2014

 

 

 

SPECIFIC AUTHORITY
BOG Regulation 9.001 – Definitions
BOG Regulation 9.002 – Recording and Marking of Property
BOG Regulation 9.003 – Property Inventory
BOG Regulation 9.0031 – Disposition of Property
Circular A-110 Subpart C – Property Standards related to Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations

OBJECTIVE
The purpose of this policy is to provide direction for the purchasing, recording, safeguarding and disposing of University and Government owned assets.

OVERVIEW
These policies and procedures describe department roles regarding the purchase, donation, transfer, fabrication, exchange, removal and disposition of University property.

A.  DEFINITION OF TERMS

Account Code - A 6 digit code utilized by the OMNI system. Tangible personal property that is a capital asset should be purchased using the 760000 series account codes.

Accountability Release Form (AR212) - Form used to document the disposition of a capital asset and to document transfers of capital and expendable property to the surplus warehouse.

Asset Profile - Identifies the depreciation criteria for an asset. Asset Profile is the flag within the OMNI System which identifies that an item is a capital asset. Assignment of an Asset Profile is required for items to be capitalized within the OMNI system.

Attractive Item Additions Form (PA 02) – Form used to request adding an attractive/sensitive property item in the University’s Asset Management System (OMNI) for the purpose of identifying and tracking such items.

Attractive / Sensitive Property – Expendable property items that are prone to theft because they are either portable, contain new technology, or are easily adaptable for personal use.

Capital Asset - Real, personal or intangible property that has a cost equal to or greater than an established capitalization threshold and has a useful life extending beyond one year.

Computer Scrubbing - Sometimes referred to as data cleansing or hard drive wiping, is the process of completely deleting the contents of a computer’s hard disk. Deleting all files is not the same as scrubbing the hard drive. All computers or other equipment with hard drives must be scrubbed prior to sending the property to the surplus warehouse. The property must have the completed scrub sticker attached to the equipment.

Direct Support Organization (DSO) - Separately incorporated organization that operates exclusively to provide the University with supplemental resources.

Equipment Use Request Form (ER 244) - Form used to request approval to use capital assets that are tangible personal property at off-campus locations.

Expendable Property - Non-consumable tangible personal property with a useful life less than one year and/or an acquisition cost of less than $5,000. Although tagging and annual inventory of expendable property is not required, departments are still held accountable for the safeguarding of such items.

Intangible Assets - Lack physical substance, are nonfinancial in nature and have a useful life extending beyond a single reporting period. Common examples are computer software, easements, patents, copyright and trademarks. Intangible assets with a cost equal to or greater than the capitalization threshold and have a useful life extending beyond one year are capital assets.

Inventory Certification Form (IC 852)-Form used to certify the completion of the annual inventory  and to document custody verification of capital assets that have been located but cannot be scanned during the annual inventory.

Internally Generated Intangible Assets – Assets developed by in-house staff or with contractors who work on behalf of the University or commercially available software that is purchased or licensed and modified using more than minimal effort before placed into service. Changing code, changing fields, adding special reporting capabilities and testing changes satisfy the more than minimal effort to place into service criterion.

Library Resources - Books and other reference materials, such as journals, periodicals, audio/visual media, computer-based information, manuscripts, maps, documents and similar items.

Online Management of Networked Information (OMNI) - The name of the University’s enterprise resource planning system, designed to meet the University’s financial and human resource administration needs.

Operating Capital Outlay (OCO) - The budget category used to fund the purchase of equipment, fixtures and other tangible personal property of a non-consumable and non-expendable nature. The OMNI Account Code range for identifying OCO items is the 760000 series.

Tangible Personal Property - Equipment, fixtures, and other tangible property of a non-consumable and nonexpendable nature. All tangible personal property that are capital assets acquired by or for the University through purchase, fabrication, donation, transfer or loan should be recorded on the University property records and inventoried annually.

Property Change Form (PC 213)– Form used to document when there is a location change, Department, Fund Code or Project ID change of capital assets, or when transferring any capital assets or expendable property to Surplus. Accounting & Property Services staff will not move or remove any tagged or untagged items from a department that are not listed and properly approved via the Property Change Form process.

Property Tag Number - The number assigned to an item by Accounting & Property Services; usually in the form of a decal, which is affixed to tangible personal property items that are capital assets.

B. RESPONSIBILITY
All property is owned by the University and not by a specific individual, department or other operating unit. Responsibility is delegated to the Vice Presidents, Deans and Directors. The Vice President, Dean or Director may delegate this responsibility to another individual by sending a memorandum to Accounting & Property Services specifying the delegate and the Department ID's for which the delegate will be responsible.

1. Accounting & Property Services
The role of Accounting & Property Services is to establish policies and procedures that help ensure the accountability and safeguarding of University assets; ensure compliance with applicable laws, rules and policies and procedures; coordinate the annual physical inventory; account for acquisitions, transfers and disposition of tagged property; depreciate tangible property over the estimated useful life; and maintain the property records in the OMNI System.

2. University Departments
The role of the University departments is to effectively manage and safeguard property; ensure that University assets are marked / tagged in accordance with applicable rules, policies, and procedures; provide non-accounting information in a timely manner to Accounting & Property Services for updating the OMNI System; and to perform the annual inventory of assets in its custody.
Property Manager - The department Property Manager is the individual designated by the Vice President, Dean or Director who has been assigned the responsibility for authorizing the transfer or disposal of University property. If a department Property Manager has not been assigned, these duties will default to the Department Budget Manager. In the case of contract and grant acquired property, and as long as the contract or grant is active, the Principal Investigator is the Property Manager.

Property Custodian - The department Property Custodian is the individual designated by the Vice President, Dean or Director who has been assigned the responsibility for the identification of University property and the maintenance of the department's property records. The assignment of this responsibility does not relieve the Vice President, Dean or Director from accountability for property assigned to his or her area.

Inventory Taker - The department Inventory Taker is an individual designated by the Vice President, Dean or Director who has been assigned the responsibility for the inventory of property. To help maintain adequate internal controls, this person should not be the Property Custodian or the department Property Manager. In small personnel-limited departments, the Property Custodian may inventory the property; a memorandum should be included with the final inventory statement explaining the circumstances.
3. Property Survey Board
The role of the Property Survey Board is to examine and approve the disposition of capital assets. The Board has delegated approval for the disposition of capital assets, with a cost of less than $100,000, to the Accounting & Property Services supervisor.

4. Sponsored Research Administration (SRA) Post-Award Office
SRA must approve transfers and dispositions of property acquired with contract or grant funds. After SRA approval, the appropriate property change form should be sent to Accounting & Property Services for processing.
C. SAFEGUARDING OF UNIVERSITY PROPERTY

It is the department’s responsibility to ensure University property is safeguarded. This includes the following:
• Locking equipment in secured locations

• Performing adequate maintenance and upkeep of equipment

• Training staff on procedures for properly handling equipment

• Locking doors when rooms are not in use

• Storing equipment in environmentally suitable locations to prevent corrosion, contamination and damage of sensitive parts

• Tracking items that are removed from campus
Attractive/sensitive property will vary from department to department and should be evaluated in the context of its environment. Factors that should be considered when evaluating the attractiveness or sensitivity of an item includes its portability, its adaptability for personal use, whether it contains new technology, its potential resale value if stolen, and/or the security of its location. Departments should perform a risk assessment (both financial and operational) on their property to identify those items that are particularly at risk or vulnerable to loss. Departments are encouraged to conduct a cost/benefit assessment before developing any internal policies for managing these property items, which includes conducting a periodic inventory. The University’s Asset Management System (OMNI) is available for departments use to help identify and track attractive/sensitive property. A property tag may be obtained for the item by submitting an Attractive Item Additions Form (PA 02) to Accounting & Property Services. Recommended information that may be maintained on such items includes:
• Acquisition date
• Cost
• Description
• Manufacturer
• Serial number
• Current location
• Comments
D. ACQUISITIONS
1. Purchases
In most cases, capital assets should be purchased from Operating Capital Outlay (OCO) funds. The Purchase Requisition or ID Requisition must reference the applicable Account Code and Asset Profile in addition to the Department ID and Fund Code. The asset profile flags items to be placed in the OMNI Asset Management tables. If a property item is acquired and the expenditure erroneously coded with an account code other than a 76XXXX and/or does not have an asset profile attached to the item, the department Property Manager should notify Accounting & Property Services of the acquisition via a memorandum. Accounting & Property Services will make the necessary online corrections in the Asset Management module.

Freight, installation, and other costs incurred to acquire or install the property are considered part of the cost of the item and will be included in the cost of the asset.

Expenditures of $5,000 or more for addition of components to an existing item of property should be added to the cost of the existing asset. In preparing the requisition, the property tag number of the property to which the component is being added should be referenced. Replacement parts, repairs, and service contracts are not additions to the property.

Unless approved in advance by Accounting & Property Services, capital assets may not be purchased on blanket purchase orders or with the FSU Purchasing Card.

2. Internally Generated Intangible Assets
Computer software is the most common internally generated intangible asset. Activities associated with developing internally generated intangible assets should be classified in three phases and whether the activities are expensed or capitalized depends on the associated phase.
a) Preliminary Project Stage - Activities include conceptual formulation and evaluation of alternatives, determination of existence of needed technology and final selection of alternatives for the development of the software. Expenditures incurred in this phase should be expensed.

b) Application Development Phase - Activities include software configuration and interfaces, coding, installation of hardware, testing parallel processing, and data conversion. Expenditures in the application development phase should be capitalized.

c) Post-Implementation Phase - Activities include application training, and software maintenance. Expenditures incurred in this phase should be expensed.
Capitalization of costs should begin when both the Preliminary Project phase is complete and management has authorized or committed to funding the software project with the intent it will be completed and used to perform its planned functions. Capitalization should cease when the software is substantially complete and operational.



3. Donated Property
Property may be donated to the University without expenditure of funds other than shipping costs. Donations of capital assets must be processed through one of the University’s DSO’s.
a)  Benefiting a Contract or Grant Organization
Prior to acceptance of donated property, the Property Manager should send a memorandum detailing the description of the property, the value of the property (cost or fair market value), and the name and address of the providing agency to SRA. A copy of the memorandum should be forwarded to Accounting & Property Services. SRA will determine if the acquisition is in the best interest of the University and ensure the transaction is handled in accordance with applicable State and Federal regulations. When the property is received, SRA will forward the documentation to Accounting & Property Services to support the acquisition. The documentation should include the department code to which the property is to be assigned. All donations of capital assets will be processed through one of the university's DSO's.

b) Benefiting other than a Contract or Grant Organization
Prior to acceptance of donated property, the Property Manager should send a memorandum detailing the description of the property, the value of the property (cost or fair market value), the Department ID to which the property is to be assigned, and the name and address of the donor to the appropriate DSO (FSU Foundation Inc., Seminole Boosters Inc., The Research Foundation, Inc., etc.) A copy of the memorandum should be forwarded to Accounting & Property Services.
4.  Fabrication of Equipment

Property fabricated or constructed by the University may meet the criteria of a capital asset.  Accounting & Property Services should be notified at the outset of such a project.  The department Property Custodian should maintain accurate records of all related expenditures, including, but not limited to, the cost of labor and component parts. The Property Custodian should also ensure all related expenditures are properly recorded as capital expenditures (using a 76XXXX Account). 

Upon completion, the department Property Custodian should submit a memorandum to Accounting & Property Services detailing a description of the property, the accumulated cost of the property, and the Department ID and Fund Code to which the property is to be assigned. If the accumulated cost is not practicably determinable, the estimated cost or fair market value should be provided.

5. Vehicles
Accounting & Property Services is the only department authorized to have direct contact with the Department of Motor Vehicles.

6.  Capital Asset Property Identification Number
All capital asset tag numbers/decals are assigned by Accounting & Property Services, who will coordinate with the department’s Property Custodian in order to ensure a tag is affixed to each capital item acquired. Accounting & Property Services will also work with the Property Custodian to ensure all pertinent data about the newly acquired capital asset is accumulated and loaded into OMNI.

In situations where the decals cannot be affixed directly to the capital asset (i.e., lenses, delicate equipment, software, etc.), the tag should be placed on the container of the property, or in the case of software, on the software documentation. If no container or documentation is available, an identification number with a prefix of 09 will be assigned to the capital asset. The 09 prefix indicates that a decal could not be affixed, but recording and inventory is still required. The department is responsible for developing and maintaining procedures for the identification and control of the capital asset without a decal directly affixed.
E. PROPERTY INVENTORY OF CAPITAL ASSETS

BOG Regulation 9.003 requires an annual inventory of tangible personal property that is a capital asset. An annual physical inventory is not required for library resources. The catalog and inventory control records maintained by the libraries shall constitute the property records. The Dean or Director of each unit, in order to ensure that the annual inventory is completed, will designate an Inventory Taker who will be responsible for the inventory of that unit’s property. This individual should be an employee other than the Property Custodian or the Property Manager. Note that in some cases the annual inventory may be completed by central Property Services staff for departments with a very small number of assets.
1.  Annual Inventory
The annual inventory will be scheduled and coordinated by Accounting & Property Services who will notify the department of the inventory deadline and the assets that must be inventoried in that fiscal year. Accounting & Property Services will also ensure that all departments are issued a property inventory scanner on either a permanent or temporary basis. The Property Custodian, Property Manager and Inventory Taker are required to complete property-related training, as specified by Accounting & Property Services. Scanning equipment will be provided to the Inventory Taker at the training session.

2.  Inventory Certification
In order to certify the completion of the annual inventory, the Inventory Taker, Property Custodian and Property Manager must complete and sign the Inventory Certification Form (IC 852). This form should detail assets that have been disposed, transferred to another University department, as well as any items that were physically verified but which could not be scanned. Additionally, the form should detail all items that could not be located and are deemed missing, if any.

3.  Missing Items
The department is responsible for determining the status of each missing item and should make a good faith attempt to locate items missed in the initial scan. Inventory items that the department is unable to locate must be documented via the Accountability Release Form (AR 212) along with a Police Report. These forms should be completed at the time the asset is identified as missing.

Departments have a responsibility to continue to actively search for any items reported as missing after they have certified the completion of their inventory. Departments have a two (2) year period in which to locate the items unaccounted for during annual inventory before the assets are permanently removed from the University's property records.


4.  Inventory Compliance

A department is deemed to be out of compliance with the Property Inventory policy if any of the following conditions exist:
a)  The department is, in any given year, unable to account for property equal to or more than:
i. 5% of the unit’s total inventory count or dollar value, or
ii. Seven (7) of the unit’s items, or
iii. $20,000 in value
b)  The department is, for any two consecutive years, unable to account for property equal to or more than:
i. 3% of the unit’s inventory count or dollar value, or
ii. Five (5) of the unit’s items
iii. $15,000 in value
c)  The department fails to complete the annual physical inventory and return a completed and signed Inventory Certification Form to Property Services by the deadline established.
5.  Poor Inventory Management
Units with poor inventory management records will:
a) Receive written notification regarding their performance deficiencies
b) Develop an improvement plan
c) Schedule additional training
d) Commence the inventory process early.
F. LOCATION OR DEPARTMENT CODE CHANGE OF PROPERTY

When there is a location or departmental code change for capital assets, the transferring department's Property Manager should approve the Property Change Form (PC 213).
1.  When changing a capital asset’s Department ID or Fund Code, the Office of SRA must approve the Property Change Form (PC 213) if the property is listed under a contract or grant-funded department.

2.  When assistance is required for the physical move of tagged property, the Property Change Form (PC 213) should be completed with the exception of the receiving department's Property Manager's signature, and submitted to Accounting & Property Services. Accounting & Property Services will pick up the property and give the transferring department a copy of the Property Change Form (PC 213) with the signature of the mover. This copy should be retained by the transferring department as proof of release. Upon delivery, the receiving department's Property Manager or designee should sign as receiving the property and retain a copy of the Property Change Form (PC 213).

3.  When assistance is not required for the physical move of tagged property, the transferring department's Property Manager must approve the Property Change Form (PC 213), obtain the signature of the receiving department's Property Manager, and then submit the original Form to Accounting & Property Services. Each department's Property Manager should retain a copy of the completed Form.

4.  Building Services should be contacted for assistance when the move consists of only untagged property (excluding transfers to Surplus); a Property Change Form (PC 213) is not required.

5.  When an entire office or unit is relocating to another area, Building Services may handle the move or hire an outside vendor. After completion of the relocation, the department is responsible for submitting a Property Change Form (PC 213) indicating the new location of all tagged property. Building Services should be contacted when property is to be temporarily moved for special events (set-ups).
G. REMOVAL OF PROPERTY FROM CAMPUS LOCATIONS

Property may be removed from campus locations only if it is required by a contract or grant, or if the use of the property in the off-campus location will further the goals of the University. Campus locations are buildings and areas owned or leased by the University. The removal of tagged property from campus locations must be authorized in writing utilizing the Equipment Use Request Form (ER 244), prior to removal.
1.  Tagged property items removed for a period up to one (1) year requires the Department Property Manager’s written authorization utilizing the Equipment Use Request Form (ER 244). The Equipment Use Request Form (ER 244) associated with an item removed for a period up to one (1) year will automatically expire on June 30th of the fiscal year in which the form was completed.

2.  Tagged property items removed for a period in excess of one (1) year requires the Department Property Manager’s and VP, Dean, or Director’s written authorization utilizing the Equipment Use Request Form (ER 244). The Form associated with an item removed for a period in excess of one (1) year does not expire; however, arrangements must be made for the item to be inventoried in each fiscal year that the item is located off campus.

3.  The department retains the original Equipment Use Request Form (ER 244) and sends a copy to Accounting & Property Services when the property item is checked out. Upon return of the property item, the departments should complete the Equipment Use Request Form (ER 244) and send the original to Accounting & Property Services.

4.  Property removed from FSU locations may be covered under the insurance policy for the off-site location (i.e. home-owners insurance policy). If such coverage is not available, or if property will be removed for more than one (1) year, the department's Property Manager is responsible for working with the Department of Risk Management and Insurance to ensure appropriate coverage.
H.  DISPOSITIONS

Accountability of University property is assigned to the Property Manager of the unit to which the property is assigned. The Accountability Release Form (AR212) should be completed and approved prior to the disposition of all capital and expendable University property. Departments do not have the authority to dispose of university property without written permission from the Property Survey Board or the Supervisor of Accounting & Property Services. Removal of property from University control may occur via the following:
1.   Surplus
When University property (capital and expendable) becomes obsolete, uneconomical, inefficient, or no longer serves a useful function, the department should request the property be classified as surplus. To classify property as surplus and initiate the transfer of property to the surplus warehouse, the department Property Custodian should complete a Property Change Form (PC 213). Property Services will review and approve the form, and release the department from accountability for the property once it has been received by Surplus. Property which is unsafe for further use should not be classified as surplus, but may be disposed of via recycling/scrap using the Accountability Release Form (AR 212).

SRA Property that may contain, or has been exposed to, hazardous material should be cleared through the Department of Environmental Health and Safety prior to requesting classification as surplus.

Devices that contain a hard drive such as PCs, laptops and some copiers must be properly scrubbed by the transferring department prior to their release to Surplus. It is the responsibility of the department Property Manager to ensure these types of devices that are classified as surplus, salvaged, or otherwise disposed have had their drives and devices wiped. Visit the FSU Information Technology Services website to see Instructions for Data Cleansing Computers or contact Accounting & Property Services for additional information.

All items submitted to Surplus Property are held for a period of at least five business days and made available to FSU departments at no cost before auctions are held. After this period, items held for sale at auction are no longer available to departments.

2.  Lost/Stolen, Maliciously Destroyed
When University property (capital or expendable) is stolen, lost or maliciously destroyed, the FSU Police Department must be notified immediately. The department Property Manager must approve the Accountability Release Form (AR 212) and submit it to Accounting & Property Services along with a copy of the police report. Accounting & Property Services will present the Accountability Release Form (AR 212) to the Property Survey Board for approval. The Property Survey Board will review each request and release the department from accountability where appropriate. If capital property is subsequently located, the department's Property Custodian must submit an Inventory Certification Form (IC 852). Submitting this form initiates the process of restoring the property to an active status in OMNI, and removes it from a lost/stolen status.

3.  Cannibalization
To cannibalize University property (capital or expendable) and use its component parts for the repair of other property, the department Property Manager must request and receive permission prior to cannibalization. An Accountability Release Form (AR 212) must be completed to request this approval from the Property Survey Board. If the Property Survey Board approves the request, Accounting & Property Services will advise the department to proceed with the cannibalization. The department should ensure that the property decal and all other references to the FSU property identification number are removed or defaced at the time the property is cannibalized. After cannibalization, the unused parts should be treated as expendable property, and disposed of through classification as surplus.

4.  Scrapped
To recycle or dump University property (capital or expendable) that has no value other than as scrap, the Property Manager must approve the Accountability Release Form (AR 212) to request advance approval from the Property Survey Board. If the Property Survey Board approves the request, Accounting & Property Services will advise the department to proceed with the disposition. The department should ensure the property decal and all other references to the FSU property identification number are removed or defaced. Once the department’s Accountability Release Form (AR 212) has been approved, the scrapped property may be physically disposed of by taking it to FSU Solid Waste & Recycling or by arranging for its pickup by FSU Surplus Property.

5.  Abandoned or Non-Recoverable Property
When University property (capital or expendable) is abandoned or non-recoverable because the cost to retrieve the property is greater than the value of the property, the department Property Manager must approve an Accountability Release Form (AR 212). If the Property Survey Board approves the release of accountability, Accounting & Property Services will update the property records.

6.  Accidentally Destroyed
When University property (capital or expendable) is accidentally destroyed or damaged beyond repair; the Property Manager should approve an Accountability Release Form (AR 212) and forward it to Accounting & Property Services. A police report detailing the circumstances of the occurrence/incident involving the damaged property is required in conjunction with the Accountability Release Form (AR 212). Accounting & Property Services will present the form and related police report to the Property Survey Board. The Property Survey Board may verify the damage to, or the destruction of the item. If the Property Survey Board approves the request, Accounting & Property Services will advise the department to proceed with the disposition. The department should ensure that the property decal and all references to the FSU property identification number are removed or defaced. Departments may dispose of the property by taking it to FSU Solid Waste & Recycling or by arranging for its pickup by FSU Surplus Property.

7.  Transfer Out or Donation of Non-C&G Property
Transfer of non-C&G University property (capital or expendable) to other state agencies or political subdivisions must be processed via an Accountability Release Form (AR 212). Donations to approved, private nonprofit agency will be done by Accounting & Property Services. The department will transfer the property to be donated to FSU Surplus Property, and the Accounting & Property Services staff will process the donation through the use of an Accountability Release Form (AR 212). Requirements for a non-profit organization to be approved include submitting to Accounting & Property Services: 1) cover letter of the agency, 2) copy of 501c letter from the IRS, and 3) copy of the Florida Exempt Sales Tax cover page. Prior to transfer or donation, approval must be obtained from the Property Survey Board, and from the appropriate Dean/Director.

8.  Motor Vehicles
When transferring a motor vehicle to another University department or to Surplus, the keys must accompany the Property Change Form (PC 213). Please contact Accounting & Property Services for questions on transferring the vehicle tag. The department is responsible for arranging the towing or delivery of the vehicle to the Surplus warehouse area.

9.  Contract or Grant Property
SRA must approve all dispositions and transfers to Surplus of property acquired with, and still remaining on a sponsored project. SRA' approval will be documented on the Accountability Release Form (AR 212) and the Property Change Form (PC 213).

10.  U.S. Government Owned Property
When U.S. Government property becomes excess to the contract for which it was provided, it must be screened against the needs of other contracts before it is declared excess. If such need is disclosed, a request should be made to the contracting officer for authority to use or transfer the equipment. Additionally, if the department wishes to cannibalize government equipment, a request to cannibalize must be made to the Contracting Officer for approval. When a transfer of title has been affected, all U.S. Government identification must be removed and a University Property decal will be provided by Accounting & Property Services and affixed to the equipment.

11.  Disposal by Sale
When University property (capital or expendable) is no longer needed by a department it should be transferred to FSU Surplus Property. If the property is not claimed for use by another FSU department, it will be sold. All dispositions of University property by sale must be handled by Accounting & Property Services.

12.   Transfer of Equipment Acquired with Contract or Grant Funds
Under certain conditions, equipment acquired with contract or grant funds may be transferred to institutions that are not a part of the State University System of Florida, agencies of the State of Florida, or Florida counties. The Principal Investigator of the grant or contract may request equipment purchased with funds furnished under the grant or contract be transferred to the institution to which the Principal Investigator is transferring. The Principal Investigator may also request transfer of other equipment utilized in the research that has been certified as surplus under surplus property procedures. The written request should include a list of the items to be transferred with the corresponding FSU Property Tag Numbers, the original acquisition date, cost, and funding source, the grant or contract number and any additional information/documentation that would help to evaluate the request. Factors to be considered in granting the request are:
• Is the Principal Investigator continuing the same research project at the new institution

• Will the transfer negatively affect other research of the department and the functions of the remaining faculty
The written request should be attached to a completed Accountability Release Form (AR 212) and submitted to the Department Chairman and the Dean of the College for approval. The Accountability Release Form (AR 212) and written request, including required signatures, is then routed to SRA to ensure the transfer is in compliance with the terms and conditions of the contract or grant. SRA will forward the request to Accounting & Property Services for final approval, who will send the transfer request approval or denial back to the Principal Investigator.

Physical transfer of the equipment cannot occur until all required signatures and final approval have been obtained. Proof of receipt and acceptance by the receiving institution is required upon transfer.

13.  Traded-In / Exchanged

When University property (capital or expendable) is traded-in or exchanged for the acquisition of new property, the following information should be included on the Purchase Requisition:
• Description of property traded

• A statement of condition

• Details on the Trade-in allowance

• FSU property decal number(s)

• Serial number(s)

• Model number(s)

• Age of the property

• Location of the property
If the transaction is approved by the FSU Procurement Services, a copy of the Purchase Order and a signed Accountability Release Form (AR 212) should be sent to Accounting & Property Services. The department should ensure that the property decal and all other references to FSU Property are removed or destroyed at the time the property is released to the vendor. If the trade-in is not properly documented on the Purchase Order and sufficient documentation cannot be obtained to support the trade-in, the item will be treated as lost or unaccounted for in the department’s annual inventory.

Capital assets may not be traded-in for expendable materials or expendable property.

I.  CAPITALIZATION OF ASSETS

University capital assets consist of land, buildings, infrastructure and other improvements, furniture and equipment, library resources, works of art and historical treasures, construction in progress, and other capital assets. These assets are capitalized and recorded at cost at the date of acquisition or at estimated fair value at the date received in the case of gifts and purchases of State surplus property.

Additions, improvements, and other outlays in excess of $5,000 that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. The University has a capitalization threshold of $5,000 for all tangible personal property, $250 for library resources, $100,000 for buildings and other improvements and $1,000,000 for internally generated intangible assets.

Depreciation/Amortization is computed on the straight-line basis over the estimated useful lives of the following asset:
• Buildings – 10 to 50 years

• Infrastructure and Other Improvements – 12 to 50 years

• Furniture and Equipment – 3 to 20 years

• Software – 5 to 10 years

• Library Resources – 10 years