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
The purpose of this policy is to ensure the accountability and safeguarding of University assets.
These policies and procedures describe department roles regarding the purchase, donation, transfer, fabrication, exchange, removal and disposition of University property.
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 Property Accounting Services specifying the delegate and the Department ID's for which the delegate will be responsible.
Property Accounting Services (PAS)
The role of PAS is to establish policies and procedures that help ensure accountability for and the 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.
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 PAS 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.
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 PAS supervisor.
Sponsored Research Accounting Services (SRAS)
SRAS must approve transfers and dispositions of property acquired with contract or grant funds. After SRAS approval, the appropriate property change form should be sent to PAS for processing.
Account code is 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.
The Accountability Release form (AR212) is used to document the disposition of a capital asset and to document transfers of capital and expendable property to the surplus warehouse.
Asset Profile is a classification that 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.
Capital Asset is 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 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
The Equipment Use Request Form (ER 244) is utilized to request approval to use capital assets that are tangible personal property at off-campus locations.
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 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.
The Inventory Certification Form (IC 852) is to be used to document custody verification of items that have been located but cannot be scanned during the annual inventory. This form will not be accepted for any item that can be scanned. A department cannot certify more than a total of 15 items, excluding non-taggable and off-campus assets.
Internally Generated Intangible Assets
Internally generated intangible assets are 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.
Books and other reference materials, such as journals, periodicals, audio/visual media, computer-based information, manuscripts, maps, documents and similar items.
The official accounting system for the University is the OMNI system, which stands for Online Management of Networked Information.
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
Tangible Personal Property is 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
The Property Change Form (PC 213) is to be completed 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. PAS 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 Identification Form
The Property Identification Form is used to document the location, description and other required information for capital assets.
Property Inventory Reconciliation
The Property Inventory reconciliation is prepared annually by PAS. The reconciliation compares the departments' beginning inventories to their ending inventories. The appropriate department staff member will review the form, sign and return it to PAS.
Property Tag Number
The number assigned to an item by PAS; usually in the form of a decal, which is affixed to tangible personal property that are capital assets.
A. 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 Dept 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 PAS of the acquisition via a memorandum. PAS will make the necessary online corrections in the Asset Management module.
B. 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.
C. 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.
D. Unless approved in advance by PAS, capital assets may not be purchased on blanket purchase orders or with the FSU Purchasing Card.
E. Unless approved in advance by Property Accounting Services, major accountable property may not be purchased on blanket purchase orders or with the FSU Purchasing Card.
F. For any questions concerning the classification of a particular item being acquired, call PAS.
G. PAS is the only department authorized to have direct contact with the Department of Motor Vehicles.
OP-D-2-F4 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.
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.
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.
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.
OP-D-2-F5 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.
OP-D-2-F6 FABRICATION OF EQUIPMENT
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 SRAS. A copy of the memorandum should be forwarded to PAS. SRAS 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, SRAS will forward the documentation to PAS 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 Dept 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 PAS.
Property fabricated or constructed by or for the University may meet the criteria of a capital asset. The department Property Custodian should maintain accurate records of all related expenditures, including, but not limited to, the cost of labor and component parts. Upon completion, the department Property Custodian should submit a memorandum to PAS detailing a description of the property, the accumulated cost of the property, and the Dept 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.OP-D-2-F7 PROPERTY IDENTIFICATION NUMBER
A. All property tag numbers/decals are assigned by PAS.
B. The appropriate property decals are affixed to the Property Identification Form and sent to the Property Custodian.
C. The Property Custodian is responsible for ensuring the decals are affixed to the appropriate equipment upon receipt of the form/decals.
D. In all cases, it is the responsibility of the departments to notify PAS when equipment is received, so decals may be issued.
E. After tagging the property, the Property Identification Form must be completed and returned to PAS within fifteen (15) days. The department should notify PAS as soon as possible if they expect delays in tagging property items.
F. In situations where the decals cannot be affixed directly to the property (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 property. 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 property without a decal directly affixed. PAS will provide suggestions or advice for development of the procedures upon request.
OP-D-2-F8 PROPERTY INVENTORY
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.
A. Annual Inventory Overview
The annual inventory will be scheduled and coordinated by PAS who will notify the department of the scheduled inventory date and conduct inventory training for the departments. The department Custodian, Manager and Inventory Taker should attend the training sessions as required. Scanning equipment will be provided to the Inventory Taker at the training session.
B. 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.
C. Items That Cannot be Scanned
Items which have been physically located and verified, but which cannot be scanned electronically, should be reported on an Inventory Certification Form (IC 852).
D. Inventory ReconciliationE. Inventory Compliance
After the status of all capital assets for the inventory site is documented; PAS will complete a Property Inventory reconciliation and forward it to the department for review and signatures.
A department is deemed to be out of compliance with the Property Inventory policy if any of the following conditions exist:
1. The department is, in any given year, unable to account for property equal to or more than:
a. 5% of the unit’s total inventory count or dollar value, or2. The department is, for any two consecutive years, unable to account for property equal to or more than:
b. Seven (7) of the unit’s items, or
c. $20,000 in value
a. 3% of the unit’s inventory count or dollar value, or
b. Five (5) of the unit’s items
c. $15,000 in value
3. The department fails to complete the annual physical inventory or have their signed Property Inventory Reconciliation returned to PAS by May 30th of any year.
Non-compliance with the Property Inventory policy will result in a fine to the department. The amount of the fine for inventory non-compliance will initially be $5,000. The fine will be increased by 10% for each successive year that a department is in non-compliance. Assessment of this fine will be executed by a budget transfer from unit expense funds for E&G departments and by cash transfer for non-E&G departments. The transfers will take place in August of the year following the date on which property is permanently removed from the University's property records. Units must appeal in writing extraordinary circumstances contributing to unaccounted items by July 15 following the permanent removal from the University's property records. Appeals should be directed in writing to the Provost. Only appeals providing compelling evidence and circumstance will be favorably entertained. For units that cannot be assessed due to funding source restrictions, or that are of such small size that the assessment would present an undue hardship, the budget to which the unit reports will be responsible. In addition, the department will be referred to the Office of Audit Services to help facilitate positive changes through consulting, audits and investigations. The Office of Audit Services may further refer investigations to the FSU Police Department as necessary.
F. Poor Inventory Management Consequences
Units with poor nventory management records will:1. Receive written notification regarding their performance deficiencies
2. Develop an improvement plan
3. Schedule additional training
4. Commence the inventory process early.
G. Permanent Removal of Unaccounted for Property from Property Records
Units have a responsibility to continue to actively search for all items reported as "Unaccounted for During Annual Inventory" after the inventory reconciliation process has concluded. Units have a two (2) year period in which to locate the items unaccounted for during annual inventory before the items are permanently removed from the University's property records.
H. Additional Inventory Information
Additional detailed information about the property inventory process, including detailed instructions on how to use the scanners and additional information about inventory training may be found on the Controller’s website.
OP-D-2-F9 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).
OP-D-2-F10 REMOVAL OF PROPERTY FROM CAMPUS LOCATIONS
A. When changing a capital asset’s Dept ID or Fund Code, the Office of SRAS must approve the PC 213 Form if the property is listed under a contract or grant-funded department.
B. When assistance is required for the physical move of tagged property, the PC 213 Form should be completed with the exception of the receiving department's Property Manager's signature, and submitted to PAS. PAS will pick up the property and give the transferring department a copy of the PC 213 Form 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 form.
C. When assistance is not required for the physical move of tagged property, the transferring department's Property Manager must approve the PC 213 Form, obtain the signature of the receiving department's Property Manager, and then submit the original to PAS. Each department's Property Manager should retain a copy of the completed form.
D. Building Services should be contacted for assistance when the move consists of only untagged property (excluding transfers to surplus); a PC 213 Form is not required.
E. 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 PC 213 Form 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).
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.
A. Tagged property items removed for a period up to one (1) year requires the Department Property Manager’s written authorization utilizing the ER 244 Form. The ER 244 Form 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.
B. 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 ER 244 Form. The ER 244 Form associated with an item removed for a period in excess of one (1) year does not expire. However, an Inventory Certification Form (IC 852) must be completed for each fiscal year that the item is located off campus.
C. The department retains the original ER 244 Form and sends a copy to PAS when the property item is checked out. Upon return of the property item, the departments should complete the ER 244 Form and send the original to PAS.
D. 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.
OP-D-2-F11 DISPOSITION OF CAPITAL AND EXPENDABLE PROPERTY
Accountability of University property is assigned to the Property Manager of the unit to which the property is assigned. The removal of property from University control may occur via: missing (unaccounted for during inventory); theft; maliciously or accidentally destroyed; traded-in; cannibalized; transferred to other state agencies; donated to specified non-profit organizations; transferred to contract or grant specified institutions; scrapped; abandoned; or sold at public surplus auction. The Accountability Release Form (AR212) should be completed and approved prior to the disposition. Departments do not have the authority to dispose of university property without written permission from the Property Survey Board or the Supervisor of PAS.
When property becomes obsolete, uneconomical, inefficient, or no longer serves a useful function, the department may request the property be classified as surplus. Only capital or expendable property that is in working condition, or which has parts that are valuable and may be readily used or sold, should be classified as surplus. Property which is unsafe for further use or which has no value should NOT be classified as surplus, but may be disposed of via cannibalization or recycling/dumping using the AR 212 Form.
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 Change Form (PC 213). To complete the form, the Property Custodian should list the items to be classified as surplus, including property and serial numbers, obtain the signature of the Property Manager, and forward the form to SRAS if purchased with Contract and Grant funds, or to PAS. PAS will review and approve the form, and release the department from accountability for the property once it has been received by Surplus.
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. Computers 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 computers and storage 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 call PAS for additional information.
B. Lost/Stolen, Maliciously Destroyed Items
When a capital asset is stolen, lost or maliciously destroyed; the Police Department must be notified immediately. The department Property Manager must approve the AR 212 Form and submit it to PAS along with a copy of the police report. PAS will present the AR 212 Form 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.
To cannibalize a capital asset and use its component parts for the repair of other property, the department Property Manager must request and receive permission prior to cannibalization. An AR 212 Form must be completed to request this approval from the Property Survey Board. If the Survey Board approves the request, PAS will advise the department to proceed with the cannibalization by sending the department an approved copy of the AR 212 Form along with a Disposition Confirmation Form. 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, and ensure the Disposition Confirmation Form is completed. Upon receipt of the Disposition Confirmation Form, PAS will update the property records to process the deletion. After cannibalization, the unused parts should be treated as expendable property, and disposed of via recycling/dumping or if there is residual value, through classification as surplus.
To recycle or dump a capital asset that has no value other than as scrap, the Property Manager must approve the Accountability Release Form (AR212) to request advance approval from the Property Survey Board. If the Survey Board approves the request, Property Accounting Services will advise the department to proceed with the disposition by sending the department an approved copy of the Accountability Release Form and a Disposition Confirmation Form. Personnel from the requesting department should ensure that the property decal and all other references to the FSU property identification number are removed and returned or defaced and ensure the Disposition Confirmation Form is completed. Departments may physically dispose of the property by taking it to the recycling area, or by contacting Building Services to arrange for its removal.
E. Abandoned or Non-Recoverable Property
When a capital asset 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 AR 212 Form. If the Property Survey Board approves the release of accountability, PAS will update the property records.
F. Accidentally Destroyed
When a capital asset is accidentally destroyed or damaged beyond repair, the Property Manager should approve an AR 212 Form and forward it to PAS. A police report detailing the circumstances of the occurrence/incident involving the damaged property is required in conjunction with the AR 212 Form. PAS will present the form package to the Property Survey Board. The Property Survey Board may verify the damage to, or the destruction of the item. If the Survey Board approves the request, PAS will advise the department to proceed with the disposition by sending the department an approved copy of the AR 212 Form and a Disposition Confirmation Form. The department should ensure that the property decal and all references to the FSU property identification number are removed or defaced and ensure the Disposition Confirmation Form is completed and returned to PAS. Departments may dispose of the property by taking it to the recycling area, classifying the item as surplus (without reference to the tag number) if there is residual value, or by contacting Building Services to arrange for its removal.
G. Transfer Out or Donation of Non-C&G Property
Transfer of non-C&G property to other state agencies or political subdivisions must be processed via an AR 212 Form. Donations to approved, private nonprofit agency will be done by PAS. The department will transfer the property to be donated to Surplus, and the PAS staff will process the donation through the use of an AR 212 Form. Requirements for a non-profit organization to be approved include submitting to PAS: 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.
H. Motor Vehicles
When transferring a motor vehicle to another University department or to Surplus, the keys must accompany the PC 213 Form. Please contact PAS 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.
I. Contract or Grant Property
SRAS must approve all dispositions and transfers to Surplus of property acquired with, and still remaining on a sponsored project. SRAS' approval will be documented on the AR 212 Form and the PC 213 Form.
J. 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 Property Accounting Services and affixed to the equipment.
K. Disposal by Sale When property is no longer needed by a department it should be transferred to the surplus warehouse. If the property is not recycled to another FSU department, it will be sold. All dispositions of university property by sale must be handled by PAS.
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:
1. Is the Principal Investigator continuing the same research project at the new institution
2. 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 AR212 Form and written request, including required signatures, is then routed to SRAS to ensure the transfer is in compliance with the terms and conditions of the contract or grant. SRAS will forward the request to PAS 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.
OP-D-2-F14 CAPITALIZATION OF ASSETS
A. When property is traded-in or exchanged for the acquisition of new property, the following information should be included on the Purchase Requisition1. Description of property traded
2. A statement of condition
3. Details on the Trade-in allowance
4. FSU property decal number(s)
5. Serial number(s)
6. Model number(s)
7. Age of the property
8. Location of the property
B. If the transaction is approved by the Purchasing Department, a copy of the Purchase Order and as signed AR 212 Form should be sent to PAS. 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.
C. Capital assets may not be traded-in for expendable materials or expendable property.
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