University System of New Hampshire

11. Property, Plant and Equipment

 

Issue Date   Revised Date  
01/20/2021 002   Property and Plant Asset Capitalization
11/07/2005 010 11/01/2012 Maintaining an Equipment Inventory System
08/14/1997 020 11/01/2012 Acquisition of Equipment
08/14/1997 020P 11/01/2012 Preparation of Furnished Equipment Form
(USNH-11-020F)
08/14/1997 021 11/01/2012 Screening for Existing Equipment
08/14/1997 022 11/01/2012 Fabricated Equipment
08/14/1997 022P 11/01/2012 Preparation of Fabricated Project Report Form (USNH-11-022F)
08/14/1997 023 11/01/2012 Tagging/Bar-coding Equipment
08/14/1997 023P  11/01/2012 Preparation of Off-Campus Location (OCL) Form (USNH-11-023F)
08/14/1997 030 11/01/2012 Disposal of Surplus Property
08/14/1997 040 11/01/2012 Inventory of Equipment
 

Forms for Asset Management

08/14/1997 010F  11/01/2012 Equipment Location Form
(USNH-11-010F)
08/14/1997 020F 11/01/2012 Externally Furnished Equipment Form (USNH-11-020F)
08/14/1997 022F 11/01/2012 Fabrication Project Report
(USNH-11-022F)
08/14/1997 023F  11/01/2012 Off Campus Location (OCL) Form
(USNH-11-023F)

The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version. 

11 - 002 Property and Plant Asset Capitalization

A. SUMMARY ADMINISTRATIVE PROCEDURE

1. Purpose: This document explains how Property & Plant (P&P) acquisitions are tracked by USNH. These procedures are needed to ensure adherence with Generally Accepted Accounting Principles (GAAP), Governmental Accounting Standards Board (GASB) and other regulatory requirements, and to ensure consistent accounting treatment across the campuses.

2. Responsibility: All capital P&P assets acquired with USNH funds, including grant funds, are recorded in the USNH general ledger or related subsystems (carried as an asset), and monitored by USNH Accounting Services staff.

3. Definition: P&P assets, also referred to as capital assets, include all assets acquired or constructed for use by the operations of USNH with an expected period of use of more than one year. USNH classifies its property and plant assets into the following categories for reporting purposes:

a. Land – Vacant parcels acquired by purchase or donation are capitalized at acquisition cost or appraised value.

i. Cost includes the purchase price paid, legal cost, title costs, broker’s fees and other costs incurred to obtain title to the land, or appraised values for donated land.

ii. All land acquisitions will be capitalized in the fiscal year of the purchase or gift.

iii. The value of land assets is not depreciated over time.

iv. The settlement cost for new land purchases should be recorded under the Real Estate Purchases account code (7404A1) and the related closing costs should be recorded under the Real Estate Closing Costs account code (7404A2).

b. Land Improvements – These include items such as landscaping, fencing or sodding for athletic uses that cost $50,000 or more and increase the value of the property. These amounts are capitalized at the original cost.

c. Infrastructure – Land improvements that provide functionality such as roads, walkways, parking lots, streetlights, water drainage systems, and similar items are components of infrastructure. These projects must cost at least $50,000 to qualify for capitalization.

d. Buildings and Building Improvements – Individual buildings are capitalized if they meet one of the following requirements:

i. an existing building is acquired at a cost of $50,000 or more

ii. a new building is constructed with a cost of $50,000 or more

iii. an addition or expansion with a cost of $50,000 or more is completed for an existing building.

iv. improvement of an existing building/infrastructure or a portion of an owned existing building/infrastructure, including upgrade of major systems at a cost of $50,000 or more which extends the building/ infrastructure’s usable capacity or useful life.

  • The useful life of an asset is considered extended when the change to the asset is significant enough to cause the expected useful life to increase beyond the original estimation. Some examples are:
    • Restoration of a building or building components occurring toward the end of the building estimated useful life
    • Reinforcement of floors or walls
    • Upgrade of plumbing and electrical wiring

v. Projects that improve multiple buildings will only be capitalized if the cost related to an individual building meets the $50,000 threshold. In these cases, it is necessary to have a breakdown of cost per building so that the assets are capitalized appropriately. If this is not easily done, then a % of the cost may be used. Square footage of each space being worked on can assist in determining this. This may result in portions of a project being expensed.

vi. Furniture and equipment when purchased as part of a major capital project (defined as an approved budget of total capital investment exceeding $2,000,000) may be capitalizable if the individual asset does not qualify as capital equipment (See Policy 11-020 Acquisition of Equipment section A.2) or  built-in equipment as described in section 3.f. below, and the value of the related assets is $50,000 or more.  These assets have a shorter life than the structure where housed. This necessitates that they must be tracked and depreciated separately in the Banner Fixed Assets module.

e. Leasehold Improvements – These are costs incurred to improve building space, leased by USNH. These costs are capitalizable if the total is $50,000 or greater.

Note: Furniture is never capitalizable as part of a leasehold improvement. However, it may qualify as capital equipment.

f. Built-in equipment – This is equipment attached to a structure (building or infra-structure). The related costs are capitalizable if the cost is $50,000 or more. These assets typically have a shorter life than the structure where housed, are unlikely to be used in another location, and would remain as part of the structure if sold or abandoned by the institution. Typical examples are chillers, water heaters, ranges, hoods, central air units, furnaces, wireless access points, etc.

Note: Any equipment item not attached to a building or infrastructure, or not meeting the built-in equipment criteria above, does not qualify as capital plant. However, it may qualify as capital equipment.

g. Plant project costs that are not capitalizable include:

i. Pollution remediation costs (asbestos, lead, etc.) are not capitalizable per GASB Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations, and should always be coded to a non-capital project account (account code 71NC series).

ii. Demolition/removal of buildings/other structures. Please notify USNH Accounting Services when this occurs so that the related asset inventory records can be adjusted accordingly.

iii. Expenditures that do not add value to the building/structure (i.e. paint, maintenance & repairs, etc.).

iv. Other examples can be found on the Capitalization Grid.

B. PROPERTY AND PLANT DETAILED OPERATING PROCEDURES

1. Work in Progress (WIP)

a. WIP tracks capitalizable projects costs before projects are completed and ready for use.

b. Capitalizable projects in progress should have a dedicated Chart of Accounts element, preferably a plant fund code. Campuses using Chart of Accounts elements other than a fund code to individually track capitalizable facilities projects should ensure that all capitalizable charges are tracked per project using an alternate FOAPAL element. Plant fund types X and N are dedicated to construction projects and are not to be used for any other type of projects. Only funds for construction, renovation, and acquisition of capital assets as defined in Section A.3 above may reside in Plant funds. Non-capitalizable expenditures, which may not be charged to Plant Funds, would include the following:

i. Expenditures related to maintaining an asset or returning the asset to its original condition.

ii. Restoration of a facility so that it can be effectively used for its current purpose.

iii. Work to restore infrastructure to its original condition.

iv. Other repair and maintenance items.

v. Amounts budgeted annually for future renovation, deferred maintenance or purchases of assets.

c. USNH labor costs must be identified with a specific capital project and appropriately tracked and documented to be eligible for capitalization. The work of our employees must be directly and exclusively related to the specific capital project and directly managed by the campus facilities department which must track hours by person and by project.

d. When an invoice related to a capital improvement project involves both capitalizable and non-capitalizable activity and those costs are not easily separable, the accounting treatment should be that of the predominant activity.

i. For example, re-painting is typically not capitalized. However, if a capital project does not break out the individual costs and repainting is included, USNH does not require splitting of the costs to determine how much of the project is related to repainting. Instead, we will capitalize the full project costs in these cases.

e. Construction expenditures posted to plant funds (other than equipment account codes) are compiled annually by USNH Accounting Services and reviewed with the campuses to determine what is capitalizable. USNH Accounting Services records entries each yearend to move plant expenditures to WIP account codes until the projects are completed. Then a final determination is made related to the capitalization or expense status of the project.

f. Real estate account codes are reviewed throughout the year to record any new land and building purchases in the year they are purchased.  During the annual WIP review, all other plant expenditures are reviewed to determine what is capitalizable as described below.

g. Projects are capitalized at the end of each calendar year if the space is in use or a Certificate of Occupancy has been issued. Some projects may have an open punch list at this point. The total remaining costs for the project will be expensed unless they meet the $50,000 threshold. Note that these costs may be accrued in advance of payment to facilitate the capitalization process.

h. See the Capitalization Grid for examples of capital and noncapital purchases and PPE Account Cheat Sheet for related account to use.

2. Useful Lives – Each asset is given an associated useful life based on what is being capitalized. USNH uses a half year convention to record related depreciation. In other words, one half year of depreciation expense is recorded in the first year any plant expenditures are capitalized, regardless of the date the costs were incurred.

Useful Lives for Plant Capital Project Assets:

a. New Acquired or Constructed Buildings1 – 30 or 40 years

b. Leasehold Improvements – related lease term

c. Infrastructure/Building Improvements – 25 years

d. Built-in Equipment/Furniture/Fixtures – 10 years

e. Network Wiring/Wireless Access Points – 4 years2

f. Componentized Buildings (specific UNH research facilities only) – 10 to 50 years

i. Shell (Foundation and major vertical, floor and roof structures and exterior cladding) – 50 years

ii. Building systems (HVAC, plumbing, electrical, elevator, fire protection) – 20 years

iii. Roofing and building outfitting, interior partitions, finishings – 15 years

3. Funding sources for capital projects.

a. Certain projects require funding from multiple sources. Unrestricted and restricted funds may be used for a single project. In these cases, funding should be applied in the order below. For restricted funds, time-limited restrictions should be taken into consideration when determining which source to use first.

i. Gift/grant funding

ii. State capital appropriations (available for educational and administrative facilities only)3

iii. NH-HEFA bond funding (available for self-supporting auxiliary facilities only)3

iv. Unrestricted campus transfers

b. Allowable costs for the select types of funding

i. State capital appropriations - Capital appropriations made to the University System are available for all costs incidental to the completion of related projects including the costs of the services of architects, engineers, and other consultants of such kind and capacity as the University System Board of Trustees may, in its discretion, wish to employ on such terms and conditions as the Board determines. These monies shall be spent under the direction of the University System Board of Trustees in accordance with BOT Policy VI.A.2.1.

ii. NH-HEFA funding is limited for spending on assets that will be incurred and capitalized in accordance with the USNH bond indenture agreement which states that “obligations in the stated amounts have been incurred by the Authority or USNH and are presently due and payable or are properly reimbursable to USNH, and each item thereof is a necessary cost of the Project or of issuing the Bonds and is a proper charge against the Construction Fund.”

iii. Beginning with new construction approved on or after July 1, 2019, campuses should make every effort to have any capitalizable furnishings and equipment related to a HEFA bond project paid with available campus funds. The related costs may be charged to the existing project fund using account codes in the 7404F series. The campus must then transfer an equivalent amount from a non-HEFA fund to cover the costs. The related purchases may be capitalized by USNH Financial Services as equipment assets if an individual item costs is $5,000 or more.

1 depending on the type of construction

2 per discussion with Campus IT offices

3 in certain instances, a project may involve both State capital appropriation and NH-HEFA funding. Please contact USNH Accounting Services at 862-3127 for assistance with rules associated with these types of projects.

11 - 010 Maintaining an Equipment Inventory System

A. SUMMARY OF ADMINISTRATIVE PROCEDURE

This document explains the requirements for and purposes of the USNH Equipment Inventory System. The System ensures management control of USNH assets, including the acquisition, utilization, location, reporting, and disposal of equipment.

1. ​USNH Equipment Inventory System. USNH uses the Banner Fixed Asset module of Banner Finance to maintain records on all capitalized USNH equipment.

2. Why is a Equipment Inventory System Necessary? An Equipment Inventory System safeguards the physical assets of USNH, assures compliance with federal regulations, and provides an auditable subsidiary ledger to the USNH general ledger. Federal grant and contract regulations require that a structured equipment inventory be maintained and that available equipment be fully utilized before federal funds are spent on additional equipment purchases.

3. Responsibility.

a. The Fixed Asset Management Department of the VPFA Office at UNH is responsible for maintaining inventory records for UNHD, UNHF, UNHL and UNHM equipment.

b. The Property Control department of USNH Financial Services is responsible for maintaining  inventory records for all PSU, KSC, GSC, and System Office equipment.

c. The Principal Investigator (PI)/Project Director (for grant funded items), or assigned Equipment Custodian/Manager is required to inform UNH Fixed Asset Management (for UNHD, UNHF, UNHL and UNHM) or USNH Property Control (for PSU, KSC, GSC, and System) of any changes to the status of equipment assets under their control in a timely manner.

B. DETAILED OPERATING PROCEDURE

1. Required Information: The following elements must be included in the Equipment Inventory System per federal guidelines.

a. Identification: Tag/Barcode number, description, model, manufacturer, serial number, or other identification number

b. Location: Campus, department, building, and room number

c. Award: Funding source (Banner fund/org), responsible person, grant code and name of project director or user

d. Acquisition and Use: Date acquired, condition, title to, purchase order number, invoice number, and/or related journal entry numbers.

e. Cost: Unit acquisition cost

f. Disposal: Date, reason, disposal method, sale price

2. Reconciliation. The Banner Fixed Assets files are reconciled to the general ledger annually and additions are reconciled on a monthly basis.

3. Reporting of Federally-Owned Equipment - UNH Fixed Asset Management and USNH Property Control are responsible for the submission of annual inventory reports and other reports upon termination of grants and contracts of federally-owned equipment. UNH Sponsored Programs Administration and the equivalent office at the other campuses are responsible for letting UNH Fixed Asset Management/USNH Property Control know when a grant or contract has ended and for communicating any reporting requirements. This notification must be in writing. The communication must include the name and address of the report recipient. UNH Fixed Asset Management/USNH Property Control will communicate to the federal sponsor, title holder, or cognizant contracting officer all instances of loss, damage, or destruction of equipment within 30 days of notification.

4. Custodian Responsibilities - Equipment Custodians/Managers must inform UNH Fixed Asset Management/USNH Property Control of changes to the status of equipment, both as part of the inventory process and as part of normal operations, including:

a. Maintenance Information. It is the Equipment Custodian/Manager's responsibility to return warranty cards, conduct regular or periodic maintenance, such as lubrication, cleaning, or calibration and maintain records of deficiencies discovered as a result of inspections, as well as any maintenance actions.

b. Subrecipient responsibilities. The Principal Investigator or Program Director must advise sub-recipients of their responsibility to comply with USNH equipment policies and procedures where applicable.

c. Physical Movement of Equipment. When equipment is loaned to non-USNH entities, sold or given by one department to another, or moved from one location to another within a department, a completed Equipment Location Form USNH 11-010F must be sent to UNH Fixed Asset Management or USNH Property Control within 30 days following the move. In addition, custodians or equipment managers should report all instances of loss, damage, or destruction of equipment to UNH Fixed Asset Management/USNH Property Control, as soon as possible.

d. Title Transfer. When a grant or contract closes which has sponsor owned or titled equipment, the project director must notify UNH Fixed Asset Management/USNH Property Control to request authorization from the sponsor to transfer ownership to USNH. Please contact the UNH Sponsored Programs Administration or equivalent campus office for assistance in these instances.

e. Transfer of Equipment to Another Institution. Faculty members transferring to another institution must receive written approval from the Senior Vice Provost for Research at UNH or the campus finance office at the other campuses, and the sponsor as required, to transfer grant or contract funded equipment. To transfer equipment purchased with non-grant funds, written approval must be received from the campus VP for Finance. A copy of applicable approval, including the USNH barcode #, the Banner PTAG #, and other applicable identifying and contact information, should be forwarded to UNH Fixed Asset Management/USNH Property Control.

f. Theft. In addition to completing the appropriate disposal documentation (see Section B.4.g. below), property which is stolen or vandalized must be immediately reported by the Equipment Custodian/Manager to the respective campus security office and to the USNH Internal Audit Department

UNH Campus Police*   862-1427
KSC Campus Safety  358-2228
PSU Campus Safety  535-2330
GSC Campus Safety  513-1382
USNH Internal Audit Department  862-3500

* Includes off-campus buildings

g. Disposal. See USNH Procedure 11-030: Disposal of Surplus Property.

h. Inventories. See USNH Procedure 11-040: Inventory of Equipment.

5. Contacts

a. UNH Fixed Asset Management

PropertyControl2@unh.edu
Manager Cost Analysis and Fixed Assets, Telephone 603-862-4855; or
Accountant II, Telephone 603-862-5041

b. USNH Property Control

Accounting.Operations@usnh.edu
Accountant III, Telephone 603-862-4263; or
Accounting Manager, Telephone 603-862-3127


The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version. 

11 - 020 Acquisition of Equipment

A. SUMMARY OF ADMINISTRATIVE PROCEDURE

This document explains the manner in which equipment acquisitions are recorded within the USNH Equipment Inventory System.  All items of equipment acquired with USNH funds, including grant and contract funds, will be capitalized (carried as an asset in the USNH general ledger) and monitored in the USNH Equipment Inventory System.  Ownership may vest with a sponsoring agency or with USNH.  USNH capitalizes and tracks all equipment within the Equipment Inventory System regardless of ownership. 

1. Definition of Equipment. Most assets with a purchase price of $5,000 or more and having an estimated useful life of more than one year are defined by USNH as equipment.  Items which meet this definition but are not considered equipment include:  works of art, library acquisitions other than collections for the UNH School of Law, and goods purchased for resale.

2. Responsibility (see the exclusions section below for additional information.)

a. Campus Business Offices and UNH Business Service Centers (BSCs) are responsible for the initial determination that a purchase meets the equipment definition, and for charging the expense to the appropriate funding source (Banner fund/org/account combination).
b. Equipment Custodian Managers are responsible for properly maintaining and safeguarding all assets in their possession, reporting loss, damage or disposal of all assets promptly, and participating in a bi-annual physical inventory of all assets under their control.
c. UNH Fixed Asset Management is responsible for reviewing all UNHD, UNHF, UNHL and UNHM purchases, tagging movable assets as appropriate, tracking asset locations, and performing a bi-annual physical inventory of all assets in cooperation with equipment custodian managers.
d. The UNH Sponsored Programs Administration office is responsible for notifying UNH Fixed Asset Management of equipment ownership terms for each grant/contract purchase at UNHD, UNHF, UNHL and UNHM.
e. USNH Property Control is responsible for reviewing all PSU, KSC, GSC and System Office purchases, tagging movable assets as appropriate, tracking asset locations, and performing a bi-annual physical inventory of all assets in cooperation with equipment custodian managers.
f. Campus grant offices are responsible for notifying USNH Property Control of equipment ownership terms for each grant/contract purchase at for PSU, KSC and GSC.

b. DETAILED OPERATING PROCEDURE

1. Equipment Acquisition Process

a. Screening for Existing Equipment: This process is required before the purchase of new equipment funded by federal grants and contracts. See USNH Procedure 11-021, Screening for Existing Equipment.
b. Procurement Information: Documentation related to the purchase of all equipment should contain the following specific information to facilitate the evaluation of the asset for appropriate useful life, data entry, tagging/bar-coding and the inventory process:

i. A clear description of the equipment. This is not just the vendor's catalog number. Rather, supporting documentation must state the description of the item(s) in general terms. For example, "XT-235" is not an appropriate description, however, "electron microscope" or "Dell Pentium computer" would be satisfactory. This information should be provided in the commodity description field of the invoice document at the point of data entry if at all possible.
ii. The name of the project director, lab manager, or equipment manager. This will be the person designated as the custodian.
iii. The location where the equipment is normally housed. Campus, building name and room number are required.
iv. If something is being added to an existing piece of equipment, such as an internal disk or memory upgrade for a computer, a reference to the tag/ barcode number, permanent tag number, purchase order number or invoice number of the original item is needed. This can be documented either in the document text or noted on the invoice.
v. The 7400 series of account codes must be used for capital equipment purchases. All items coded to these accounts should meet the definition of equipment (see Section A.1 above) with the exception of the following: Account code 740010: Capital Equipment - Flight Parts. Expenses that meet the flight part criteria will not be capitalized and do not meet the definition of equipment.  This account code is used to meet the reporting requirements of certain limited sponsored awards.  Use of the document text field for additional notes or further description such as number of installment payments, progress payment terms, reference to a fabricated equipment project, etc. is encouraged.

c. Cost of Purchased Equipment: The total cost of a piece of equipment includes the initial accessories or apparatus which are necessary to make it usable. These costs must be noted in the documentation to be properly capitalized as part of the equipment total purchase cost. This is particularly critical when payment is made via installments.  The total cost may also include costs normally considered supplies such as:

i. Shipping and delivery charges or freight;
ii. Installation and set-up charges not included with the purchase price but necessary for use of the equipment;
iii. Significant improvements, repairs, or upgrades to the equipment which either significantly extend its useful life or increase its market value;
iv. Cables, mounting apparatus or other items that are required to enable use of the equipment but are not included in the purchase price;
v. Software purchased to run the new equipment that is included in the initial purchase price. This should not include any annual maintenance for the software as those costs are normal operating expenses.

C. Types of Equipment Acquisitions

1. Standard Equipment: Equipment that is generally stand-alone, is not part of any other asset either by connection or construction, is conventionally purchased through normal USNH procurement processes and meets the definition of equipment defined in Section A.1 above.

2. Fabricated Equipment: Equipment that is constructed by USNH which, when complete, meets the definition of equipment in Section A.1 above but is composed of multiple items some of which may not meet the capital equipment requirements individually. This type of asset cannot be purchased off the shelf. See USNH Procedure 11-022, Fabricated Equipment for the appropriate handling of items being constructed.

3. Furnished Equipment: Furnished Equipment is loaned to USNH by a sponsor for use on sponsored activities. Title is generally retained by the sponsor unless USNH receives written notification of title transfer from the sponsor. UNH Fixed Asset Management (for UNHD, UNHF, UNHD and UNHM) or USNH Property Control (for PSU, KSC and GSC) must track all furnished equipment and file annual reports on government owned equipment. To enable this, all furnished equipment should be reported to USNH Property Control/UNH Fixed Asset Management by the department receiving the equipment, using the USNH Form 11-020F: Externally Furnished Equipment. See Procedure 11-020F: Preparation of Furnished Equipment Form for assistance in completing the form.

4. Equipment Gifts: Contact UNH Fixed Asset Management (for UNHD, UNHF, UNHL and UNHM) or USNH Property Control (for PSU, KSC and GSC) and your campus Advancement office regarding appropriate handling of gift-in-kind items meeting the definition of equipment in Section A.1 above.

5. Betterment to Sponsor-Titled or Personal Equipment: USNH funds should not be used to partially purchase a piece of equipment, or to purchase any betterment to any item that is not owned by USNH. When title vests with a sponsor, they could demand that the item be returned at grant or contract termination. USNH funds may not be used to repair, upgrade, or enhance personally owned equipment.

6. Principal Investigator/Project Director Funds: Equipment purchased with principal investigator/project director funds is the property of USNH and not the personal property of the faculty member. As such, the item should be recorded as an equipment purchase, tracked in the fixed asset system and be available for tagging and inventory.

7. Other: UNH Fixed Asset Management/USNH Property Control must be notified prior to equipment being acquired with a trade. Notification must include the gross cost of the acquired equipment, the trade value of the traded equipment and barcode/serial number of the traded equipment.

d. Exclusions

1. The following associated costs are not considered equipment expenses:

a. Software not bought as part of an original system - These items should be charged to supplies; account codes in the 711 or 715 range.
b. Software licenses, service contracts, and maintenance agreements - These items should be charged to maintenance account codes in the 716 range.
c. Demolition or dismantling of equipment.
d. Moving items from one USNH location to another.
e. Repair costs may be capitalized if the repair will add more than one year to the equipment's useful life or the cost significantly increases the value of the equipment (see B.1.c Cost of Purchased Equipment above). 

2. Fixed Equipment: Items which become part of a building are not recorded as equipment, but are capitalized as part of the building of which they become part. This includes items such as fume hoods, built-in furnishings, fire systems, etc. Please contact USNH Property Control with questions on fixed equipment.

3. Flight Parts: Flight parts are prototypes or deliverables bought on federal contracts. These items are not capitalized as they do not meet the useful-life test. As noted above, account code 740010 is used for flight part expenditures.

4. Leased Equipment: See USNH Procedure 8-115, Leases and Rental Agreements for proper definition and management of leased equipment.

 

The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version. 

11 - 020F Preparation of Furnished Equipment Form

A. USNH 11-020F: Furnished Equipment Form

Form: USNH 11-020F: Furnished Equipment Form
Obtain Blank Forms From: USNH 11-020F: Furnished Equipment Form
or Call UNH Fixed Asset Management (862-5041),
or USNH Property Control (862-4263)
Forward Completed Forms To:

For UNHD, UNHF, UNHL and UNHM send completed forms to:
UNH Fixed Asset Management VPFA Office
207 Thompson Hall,
Durham, NH 03824
PropertyControl2@maple.unh.edu

For KSC, PSU, GSC, and System send completed forms to:
USNH Property Control
5 Chenell Drive, Suite 301
Concord, NH 03301
accounting.operations@usnh.edu

 

B. Purpose of USNH 11-020F: Furnished Equipment Form

Purpose of Form USNH 11-020F: To provide information on items which are in the custody of USNH personnel, but not owned/used by USNH. These items are tracked by USNH, but are not recorded by USNH or barcoded by USNH. Receipt of sponsored government furnished equipment should be reported to Property Control by the department receiving the equipment. Furnished equipment is titled to the government and reports must be filed concerning government-owned equipment.

C. Instructions for Completing USNH 11-020F: Furnished Equipment Form

1. Required Custodial Information

Department:

Name of the department receiving the equipment

Orgn Code:

Banner Orgn code associated with the above department

Date Received:

Date the equipment was received by the department

Furnishing Agency:

The agency or institution the equipment was received from

Agency Code:

Banner USNH ID code associated with the furnishing agency

Address:

Address of the furnishing agency/institution the equipment

Grant Name:

The grant name associated with the equipment

Grant Code:

Banner grant code associated with the equipment

Equipment Custodian:

Name of the person who is responsible for the location and the use of the equipment while it is at the University

Custodian ID:

USNH ID # of Equipment Custodian/Manager

 

2. Required Information about the Equipment:

Description:

A clear description of the equipment

Serial #

The unique identification number which manufactures often assign to each piece of equipment. This can usually be found of the piece of property.

Model #:

The manufacturer's model number

Manufacturer:

The name of the company or organization which produced the equipment

Estimated Value:

Value given to the item by the provider. If no value has been given, use an estimated value.

Estimated Age:

Approximate age of equipment in years

Condition:

Condition of equipment

Location:

The building name, number, and room where the equipment will be housed while at the University

11 - 021 Screening for Existing Equipment

A. SUMMARY OF ADMINISTRATIVE PROCEDURE

This policy explains the process involved in screening for existing equipment prior to the purchase of new equipment funded by federal grants and contracts.

1. Why is a Screening Policy Necessary? Government regulations require that existing equipment be fully utilized before federal funds are expended on equipment.

2. Responsibility: The project director on federal grants and contracts is expected to contact UNH Fixed Asset Management (for UNHD, UNHL and UNHM) or USNH Property Control (for PSU, KSC, GSC, and System) to determine availability and suitability of substitute equipment for a proposed purchase.

B. Detailed Operating procedure

1. General Screening: Before purchasing equipment with a unit cost above USNH’s capitalization threshold ($5,000) using grant or contract funds, the project director is expected to check with UNH Fixed Asset Management ( for UNHD, UNHL and UNHM) or USNH Property Control (for PSU, KSC, GSC, and System) for availability and suitability of existing equipment. In addition, a database is posted online at https://cems.unh.edu for UNHD, UNHL and UNHM equipment. If the equipment cost exceeds $25,000, the project director must receive written confirmation from UNH Fixed Asset Management or USNH Property Control confirming that no comparable equipment exists on campus. This approval is received after the Grant and Contract Administrator has reviewed the grant or contract proposal and forwarded a review request to UNH Fixed Asset Management or USNH Property Control.

2. Contract Screening:

a. Industrial plant equipment is used for altering the physical properties of materials, components or end items used in manufacturing, maintenance, supply, processing, assembly, or research and development operations. For industrial plant equipment purchased on a U.S. Department of Defense (DOD) or NASA contract and costing more than $15,000, the project director must contact the appropriate Military Service or Component Forms Manager (http://www.dtic.mil/whs/directives/forms/fpoc.htm) and request a copy of the necessary form to complete to obtain government approval prior to purchasing such equipment.
b. Automatic data processing equipment means computer components and systems, including peripheral, auxiliary, and accessory equipment used in support of computers. For automatic data processing equipment purchased on a DOD or NASA contract and costing more than $25,000, the project director must complete an Automation Equipment Requirement Form (DD Form 1851) and obtain government approval prior to purchase.

 


The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version. 

11 - 022 Fabricated Equipment

a. SUMMARY OF ADMINISTRATIVE PROCEDURE

This procedure explains the way equipment fabricated by USNH is handled.

1. Definition of Fabricated Equipment: Fabricated equipment is self-constructed equipment having a useful life of more than one year and a total cost of $5,000 or more upon completion. Fabricated equipment cannot be purchased off the shelf. Fabricated equipment does not include upgrades to existing equipment and refers only to the construction of a new piece of equipment.

2. Why are Fabricated Equipment Procedures Necessary? Fabricated equipment procedures are needed to ensure that all items purchased for the construction of a single piece of new equipment are captured for capitalization. This procedure allows the charging of components to equipment account codes even when an individual acquisition cost does not meet the capitalization threshold.

3. Responsibility:

a. The Project Director constructing a piece of fabricated equipment is responsible for:

i. Providing notification that an item is being fabricated to the UNH Business Service Center (BSC) and UNH Fixed Asset Management (for UNHD, UNHL and UNHM), or to the Campus Business Office and USNH Property Control (for PSU, KSC, GSC, and System);
ii. Maintaining supporting documentation; and
iii. Providing notification that construction is completed to the BSC and UNH Fixed Asset Management (for UNHD, UNHL and UNHM), or to the Campus Business Office and USNH Property Control (for PSU, KSC, GSC, and System).

b. UNH Fixed Asset Management and USNH Property Control are responsible for maintaining the system to track acquisitions relating to fabrication projects.

b. DETAILED OPERATING PROCEDURE

1. Beginning the Fabrication Project:

a. The project Director should complete the top of the USNH 11-022F: Fabrication Project Report Form, prior to beginning the equipment construction and send a copy to UNH Fixed Asset Management or USNH Property Control as appropriate. The form will let UNH Fixed Asset Management/USNH Property Control know that a fabricated project is in progress and provides an approximate beginning and end date. It will also give UNH Fixed Asset Management/USNH Property Control the information needed to properly capitalize and tag the equipment once it has been completed.
b. Procurement transactions related to the fabrication of equipment must include:

i. The phrase "Fabricated Equipment",
ii. The project name or the name of the item being built, and
iii. The name of the Project Director.
Please insert this information in the document text section of the Banner Requisition Form (FPAREQN). The text will then be brought forward into the Banner Purchase Order document text (FPAPURR) automatically. This information lets UNH Fixed Asset Management/USNH Property Control staff know that charging this item to fabricated equipment account code 740005 is appropriate, regardless of cost.

c. Once a Ptag number (Banner Fixed Asset system record identifier) is created for the fabricated project, it will be communicated to the BSC/Campus Business Office in order to be used as a reference number for all future purchase transactions for that specific fabricated project. For Banner PCard and invoice transactions, the BSC/Campus Business Office should put the Ptag number in the commodity field to identify the fabricated project the transaction is assigned to.

2. Completing the Fabrication Project:

a. The projector director should fill out the bottom of the USNH 11-022F: Fabrication Project Report Form, when construction is completed and send the form to UNH Fixed Asset Management or USNH Property Control as appropriate.
b. Fabricated equipment is considered complete when it becomes useable for its intended purpose.
c. Fabricated equipment is added to the equipment inventory upon completion with a value equal to the sum of the cost of components.

3. Additional guidance is also included at Procedure 11-022P: Preparation of Fabrication Project Report Form.


The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version.

 

11 - 022F Preparation of Fabricated Project Report Form

A. USNH 11-022F: FABRICATION PROJECT REPORT FORM

 
Form: USNH 11-022F: Fabrication Project Report Form
Obtain Blank Forms From:

USNH 11-022F: Fabrication Project Report Form
or Call UNH Fixed Asset Management (862-5041),
or USNH Property Control (862-4263)

Forward Completed Forms To:

For UNHD, UNHF, UNHL and UNHM send completed forms to:
UNH Fixed Asset Management VPFA Office
207 Thompson Hall
Durham, NH 03824
propertycontrol2@maple.unh.edu

For KSC, PSU, GSC, and System send completed forms to:
USNH Property Control
5 Chenell Drive, Suite 301
Concord, NH 03301
accounting.operations@usnh.edu

B. PURPOSE OF THE FABRICATION PROJECT REPORT FORM (USNH-11-022F)

Purpose of Form USNH-11-022F: Documenting the beginning of an equipment fabrication project and documenting its subsequent completion. Project Directors constructing equipment must complete and submit USNH-11-022F: Fabrication Project Report Form to their UNH BSC or Campus Business Office representative. The BSC/Campus Business Office representative will forward the completed USNH-11-022F: Fabrication Project Report Form to UNH Fixed Asset Management or USNH Property Control at the beginning of the project and provide the necessary updated information to these areas at the completion of the project as described below.

C. INSTRUCTIONS FOR COMPLETING USNH 11-022F: FABRICATION PROJECT REPORT FORM

1. Prior to beginning a fabricated project fill out Form USNH 11-022F and submit it to UNH Fixed Asset Management or USNH Property Control. The following fields must be completed.

Project Name: The name of the grant award
Banner Grant Code: The Banner Grant number
Project Director: The person who is named as project director on the grant or contract used to support the project
Fabricated Item Description: This should be a general description of the item being built. It may or may not be the same as the project name.
Department: The department responsible for the project
Location: Building and room or off-site location
Funding Source: The Banner fund/orgn charged for the purchase of the asset
Project Begin Date: Date fabrication project began
Project End Date: Expected completion date of fabrication project
Custodian Name and Phone #: The person who is responsible for the location of the equipment
Equipment Manager Name and Phone #: The person who uses the equipment if different than the custodian
BSC Contact Name and Phone #: The person to contact with questions relating to the accounting of the fabricated project  

2. When the fabricated project has been completed, update the second half of the USNH-11-022F. Be sure that both the top and bottom sections of the form have been completed and send a copy to UNH Fixed Asset Management or USNH Property Control. The following fields must be completed.

Total Cost: Total of all payments made for the components used in the fabricated project
Funding Source: If more than one Banner fund/orgn is used list the Banner fund/orgs here
Amount: Total amount for each Banner fund/orgn. Note: the total of all amounts reported here must equal the total recorded above and the amounts expended for the equipment.
Location of Completed Item: Indicate campus, building name and room number. If the item is located off campus, please indicate where it is physically located
Completion Date: The date the fabricated project was actually completed
Responsible Person(s): The name of the Equipment Custodian/Manager responsible for the use and location of the equipment

11 - 023 Tagging/Bar-coding Equipment

a. SUMMARY OF ADMINISTRATIVE PROCEDURE

This document explains the requirement and process used in tagging/bar-coding capital equipment. Timely identification and tagging/bar-coding of all capital equipment is required upon receipt or in the case of fabricated equipment, upon completion. A unique UNH/ USNH bar-code number is assigned and affixed to all capital equipment. Equipment which does not met the definition of equipment is not capitalized or bar-coded (see Procedure 11-020 - Acquisition of Equipment, Section A.1).

1. Why is this process necessary? Bar-coding of equipment is necessary for equipment identification, physical security, and maintenance of an accurate equipment inventory.

2. Responsibility: UNH Fixed Asset Management Department (for UNHD, UNHF, UNHL and UNHM) and USNH Property Control Office (for PSU, KSC, GSC, and System) are responsible for the bar-coding of equipment.

b. DETAILED OPERATING PROCEDURE

1. Bar-coding of Equipment: A unique property barcode tag, provided by UNH Fixed Asset Management or USNH property control will be affixed to each piece of equipment within 3 months of acquisition. It is the responsibility of the Custodian/Equipment Manager to make the item available for bar-coding.

2. Sponsor-Titled Equipment: In addition to the USNH/UNH barcode, if title is held by a government sponsor, a "Property of US Government" or "Property of State/Local Government" tag/barcode will be affixed to the item. A separate tag/barcode will be created for individual items owned by other types of sponsors (industrial, foundations, etc.).

3. Off-Campus Equipment: USNH 11-023F: Off-Campus Location (OCL) Form is initiated by UNH Fixed Asset Management/USNH Property Control when equipment is at an off campus location or when UNH Fixed Asset Management/USNH Property Control is unable to physically barcode equipment (such as testing instruments which can only be tagged between tests). The OCL is sent to the custodian/equipment manager of the equipment along with the barcode to be attached to the item. The custodian/equipment manager has the responsibility to physically attach the property control tag to the equipment and to complete the OCL form, see Procedure 11-023F: Preparation of Off-Campus Location (OCL) Form for instructions. Please return the completed form to UNH Fixed Asset Management/USNH Property Control in a timely manner.

4. Un-taggable Equipment: Some items of equipment, because of their size, location, or use, cannot be bar-coded. UNH Fixed Asset Management/USNH Property Control will add relevant location information in the Banner Fixed Assets Module to accommodate tracking these items.


The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version. 

11 - 023F Preparation of Off-Campus Location (OCL) Form (USNH-11-023F)

A. USNH 11-023F: OFF-CAMPUS LOCATION (OCL) FORM

Form USNH 11-023F: Preparation of Off-Campus Location (OCL) Form
Obtain Blank Forms From:

USNH 11-023F: Preparation of Off-Campus Location (OCL) Form
or Call UNH Fixed Asset Management (862-5041), 
or USNH Property Control (862-4263)

Forward Completed Forms To:

For UNHD, UNHF, UNHL and UNHM send completed forms to:
UNH Fixed Asset Management VPFA Office
207 Thompson Hall,
Durham, NH 03824
propertycontrol2@maple.unh.edu

For KSC, PSU, GSC, and System send completed forms to:
USNH Property Control
5 Chenell Drive, Suite 301
Concord, NH 03301
accounting.operations@usnh.edu 

B. PURPOSE OF THE OFF-CAMPUS LOCATION (OCL) FORM (USNH-11-023F)

Purpose of Form USNH-11-023F: To provide information on items which are off-site or otherwise unavailable for UNH Fixed Asset Management/USNH Property Control staff to affix the tag. The Off-Campus Location (OCL) Form (USNH-11-023F) is used whenever a piece of equipment is located at a site off campus and/or whenever UNH Fixed Asset Management/USNH Property Control is unable to physically tag/barcode a piece of equipment themselves. The OCL form is sent to the Equipment Custodian/Manager of the item after initial population by UNH Fixed Asset Management/USNH Property Control. The Equipment Custodian/Manager is charged with the responsibility of physically attaching the property tag to the equipment in these instances. The Equipment Custodian/Manager completes the form by filling in or changing any missing or incorrect information and, after signing it, returns it to UNH Fixed Asset Management or USNH Property Control as appropriate.

C. INSTRUCTIONS FOR COMPLETING USNH 11-023F: OFF-CAMPUS LOCATION (OCL) FORM

1. Items for UNH BSC or Campus Business Office (PSU, KSC, GSC, and System) completion

Manufacturer: The name of the company or organization which produced the equipment
Model #: The manufacturer's model number
Serial #: The unique identification number which manufactures often assign to each piece of equipment. This can usually be found on the piece of property.
Description: A general description of the asset
Location: The address where the piece of equipment is located
Equipment Manager/Custodian: The person who is to be contacted with questions regarding the equipment
Equipment Manager/Custodian's ID: The 9 digit USNH ID # of Equipment Custodian/Manager
Department: The name of the department whose inventory this piece of equipment is listed on
Banner Orgn: The Banner orgn associated with the department
USNH Barcode #: The tag/barcode number that is physically attached to the piece of equipment

2. Items for UNH Fixed Asset Management/USNH Property Control completion

Permanent tag (P-Tag): The P-tag is the permanent fixed asset number assigned by Banner which is unique for each piece of equipment at USNH. This information is the most effective means for identifying the item in the Banner Fixed Asset system
Date: The date UNH Fixed Asset Management/USNH Property Control filled out and sent the OCL form
Invoice #: The Banner Invoice number on which the piece of equipment was acquired
Invoice Date: The vendor invoice date
Cost: Invoice amount
Vendor: The name of the vendor from which the piece of equipment was acquired

11 - 030 Disposal of Surplus Property

a. SUMMARY OF ADMINISTRATIVE PROCEDURE

This policy explains the process involved in the disposal of USNH surplus supplies and equipment. Supplies and equipment acquired through USNH are the property of USNH or a state, federal or other sponsor.

1. Definition of Surplus Property: Surplus property is supplies or equipment which are obsolete, damaged and unusable or in excess of need. This includes all tangible assets with the exception of real property. (The sale or disposal of real property is addressed in BOT, Section VI.C.e, Policy on the Disposal of Real Property.)

2. Why is a Disposal of Surplus Property Policy Necessary? Internal controls are necessary to meet the fiduciary responsibilities of the USNH Trustees to protect and properly monitor USNH resources. This policy facilitates the physical removal of surplus property, finds an alternative internal use, reduces the storage burden and maximizes USNH's return on salable items. In addition, timely and proper recording of disposed property is important for maintaining an accurate financial system and safeguarding USNH assets.

3. Responsibility: Each Equipment Custodian/Manager (see Procedure 11-010, Section A.3.c.) is responsible for all property under his/her control. Campus purchasing offices are responsible for determining the appropriate disposition of all surplus property not covered under the Safe Electronic Equipment Disposal (SEED) program, and for authorizing and accomplishing such disposition. UNH Fixed Asset Management (for UNHD, UNHF, UNHL and UNHM) or USNH Property Control (for PSU, KSC and GSC) is responsible for properly recording disposal of surplus property listed within the USNH Equipment Inventory System including any proceeds received, if applicable. Transactional records should also be kept by UNH/USNH Purchasing/Surplus and the department. Equipment Custodians/Managers, with the assistance of campus Facilities if needed, are responsible for removal and transportation of surplus property.

b. DETAILED OPERATING PROCEDURE

1. Preference for Disposition of Surplus Property: When disposing of property, the following priority should be used to determine preferred recipients of surplus property:

a. other departments on campus,
b. other USNH campuses/departments,
c. State of New Hampshire,
d. other interested parties.

2. Internal Transfers: The transferring department must complete the USNH 11-010F - Equipment Location Form and submit the form to UNH Fixed Asset Management or USNH Property Control to ensure the asset location is updated in the inventory records.

3. Special Considerations for Equipment Sales (See Procedure 11-020, Acquisition of Equipment, for definition)

a. An Equipment Custodian/Manager may not unilaterally dispose of USNH or sponsor's property.
b. Government-owned Equipment - For tagged equipment, if the Equipment Custodian/Manager is unsure of the funding for a piece of surplus equipment, he/she should contact UNH Fixed Asset Management or USNH Property Control for determination. For disposal of equipment purchased with federal grant or contract funds, UNH Fixed Asset Management or USNH Property Control must obtain all necessary written approvals from the applicable sponsor and/or the federal cognizant agency prior to advertisement or disposal.
c. Other Equipment Items - If an Equipment Custodian/Manager is requesting an item(s) be scrapped, the Request to Scrap Form (http://www.unh.edu/purchasing/surplus/index.html) must be completed. UNH/USNH Purchasing will forward the request to UNH Fixed Asset Management or USNH Property Control for final approval if tagged/logged in inventory.
d. File Updates - UNH Fixed Asset Management, USNH Property Control and designated PSU, KSC and GSC personnel have update capability to the equipment inventory data in Banner Fixed Assets. This includes location, tag/barcode, serial number, Equipment Custodian/Manager, etc. Financial updates to Banner Fixed Assets, including cost, depreciation and related financial adjustments, are maintained by UNH Fixed Asset Management or USNH Property Control.

4. Proceeds from the Sale: Proceeds from external sales should be recorded in accordance with Procedure 10-001, Revenue Accounting, Section B.4, Sales of Departmental Equipment.

5. Sale to USNH Employees: All sales to employees must be approved by the applicable Campus Purchasing Office Surplus Administrator prior to sale, even in cases where estimated current market value is $0. The sale price of all property sold to employees should approximate current market value, and associated receipts should be recorded as revenue to the selling departments.

6. Campus Specific Procedures:

a. UNHD, UNHF, UNHL and UNHM: The Equipment Custodian/Manager is responsible for the following actions in this sequence:

i. Contact UNH Fixed Asset Management if the property was purchased using government funds.
ii. Notify UNH Fixed Asset Management in writing if the property being disposed is on the equipment inventory list. Items must be adequately identified; include tag/barcode number, description, etc.
iii. Determine the estimated current market value of the property.
iv. Determine if there are any hazardous substances/materials that may require special handling (e.g., refrigerants, chemicals, radioactive, etc.) For disposal of equipment that may contain hazardous materials, contact the Office of Environmental Health and Safety (OEHS) at: http://www.unh.edu/research/environmental-health-and-safety.
v. For UNHD, UNHF, UNHL and UNHM, the IT Safe Electronic Equipment Disposal (SEED) staff members are responsible for determining the appropriate disposition of equipment containing data storage as well equipment containing circuit boards and for authorizing and accomplishing such disposition. They may delegate authority for disposition as size, condition, value, location, etc., of the item dictates. To request disposal of electronic equipment use the Safe Electronic Equipment Disposal Form found on the UNH IT website at: UNH SEED Program.
vi. For all other equipment, notify Surplus.Request@unh.edu to determine proper disposition or complete the appropriate on-line form on the UNH/USNH Purchasing website at: http://www.unh.edu/purchasing/surplus/index.html.
vii. The following thresholds should be used when determining the appropriate procedure for the actual disposal of surplus items:

1. Surplus item(s) that are obsolete or damaged, etc. do not have to be advertised if the property is to be scrapped.

a. After an Equipment Custodian/Manager has received permission to scrap/dispose of an item(s) via email from UNH/USNH Purchasing/Surplus, he/she may do so him/herself or call Maintenance Control (2-1437) directly for disposal arrangements.
b. If disposing of the item(s) him/herself, he/she must make sure the property being disposed of is placed directly inside a dumpster and not left laying or sitting beside one.
c. If an item to be disposed of is electronic or hazardous, SEED or OEHS staff, respectively, must approve all such scrap requests and notify Fixed Asset Management.

i. For electronic items, after approval by SEED, the Equipment Custodian/Manager should work directly with SEED staff for removal/disposal.
ii. For items containing hazardous substances/materials, the Equipment Custodian/Manager should work directly with OEHS staff for removal/disposal.

2. Surplus item(s) with an estimated current market value per unit of $1000 or greater, or vehicles of any type including boats, trailers, etc. (regardless of current market value) require UNH/USNH Purchasing/Surplus approval, and must be advertised for bid for up to 14 days by UNH/USNH Purchasing/Surplus. Items which receive bids at or above the advertised asking price, or items which are being requested by other UNH/USNH departments, maybe be sold/transferred sooner.

a. Departments may place ads at their own expense offering the item(s) for sale in local or regional newspapers or trade magazines.
b. At the end of the 14-day advertising period, if no UNH or USNH department has made an offer on the item(s), the goods can be:

i. Sold to the highest bidder or donated within the next category of preference under Section B.1. above, or
ii. Relisted for additional 14-day periods if desired.

c. If there are no bidders for the item(s), the department may send a Request to Scrap or a Request to Donate to UNH/USNH Purchasing/Surplus via the UNH/USNH Purchasing/Surplus website. Surplus items may be donated to a non-profit organization with UNH/USNH Purchasing/Surplus approval.
d. Removal of Surplus items - If there are no acceptable offers for a surplus item(s) and no identified non-profit organization is interested in the item as a donation; the Equipment Custodian/Manager should contact the UNH Maintenance Control Department for assistance with pickup if necessary.
e. Safe Electronic Equipment Disposal (SEED) Removal - If there are no acceptable offers for an electronic item(s), the Equipment Custodian/Manager should contact the SEED program for disposal instructions.
f. Environmental Health & Safety (OEHS) Removal - If there are no acceptable offers for a hazardous item(s), they will be removed by OEHS after approval by UNH/USNH Purchasing/Surplus.

b. Follow Plymouth State's policies and procedures at http://www.plymouth.edu/office/purchasing/surplus-procedures/.

c. KSC - Email KSC Purchasing with item(s) to be declared surplus. KSC Purchasing will promptly remove the surplus item from the department and handle the full disposition process from a central storage facility. If property being disposed is on the equipment inventory list, KSC Purchasing will notify USNH Property Control to remove the item(s) from the inventory. KSC Purchasing will update the equipment inventory records regularly.

d. GSC - When one of the regional offices determines that there is surplus property, they should notify the Dean's Office of Finance and Administration. The regional office completes the appropriate on-line form at the UNH/USNH website at http://www.unh.edu/purchasing/surplus/index.html. If the property being disposed is on the equipment inventory list, GSC must notify USNH Property Control to remove the item(s) from the inventory.

e. System Office - Each department is responsible for completing the appropriate on-line form at the UNH/USNH Purchasing/Surplus website at http://www.unh.edu/purchasing/surplus/index.html.

C. Contacts

USNH/UNH Purchasing Office 862-6187            USNH Procurement
UNH Fixed Asset Management            862-5041 propertyControl2@maple.unh.edu
USNH Property Control 862-3760 Accounting.Operations@usnh.edu
PSU Purchasing Office   PSU Purchasing Office
KSC Purchasing Office 358-2493 Purchasing@keene.edu
GSC Dean's Office 513-1335 Lisa Shawney

The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version. 

11 - 040 Inventory of Equipment

A. SUMMARY OF ADMINISTRATIVE PROCEDURE

This policy explains the inventory process for capitalized equipment. An on-going physical review and identification procedure is required under the supervision of UNH Fixed Asset Management (for UNHD, UNHF, UNHL and UNHM) or USNH Property Control (for PSU, KSC and GSC).

1. Definition of the Inventory Process: An inventory is a verified listing of all capitalized pieces of moveable equipment administered by a department. UNH Fixed Asset Management and USNH Property Control rely on Equipment Custodians/Managers to review and verify all data on the biennial inventory reports for equipment under his/her care for accuracy and completeness.

2. Why is the Inventory Process Necessary? Inventorying is an important and necessary requirement for sponsor funding, internal budgeting, and annual federal and financial audits. Federal regulations requires a physical inventory of government owned assets annually. Also, part of a good internal control system includes the performance of regular inventories.

3. Responsibility: Equipment Custodians/Managers are responsible for the accuracy, completeness and timeliness of the equipment inventory assigned to them.

4. Inventory Requirements: For government owned equipment a physical inventory is required on an annual basis. Physical inventories are required to be taken and reconciled per OMB Omni-Circular at least once every two years.

B. DETAILED OPERATING PROCEDURE

1. Annual Inventory: Annual inventories are performed by UNH Fixed Asset Management or USNH Property Control for all government titled items.

2. Biennial Inventory: Biennially, inventory reports are distributed to Equipment Custodians/Managers of record by UNH Fixed Asset Management or USNH Property Control. The Equipment Custodian/Manager must personally verify the existence of every item, validate every attribute on the report, and sign the attestation statement included with the reports. The Equipment Custodian/Manager must return the completed inventory to UNH Fixed Asset Management or USNH Property Control Office within 60 days of receipt of the report.


The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version.