• Capitalized Equipment
• Minor Equipment
• High-risk Minor Equipment
• Attachment vs. Component
• Organized Storeroom Inventory
• FIS Fixed Asset Records System

Capitalized Equipment (Non-Expendable Personal Property)
FASOM 08.03 A1

Capitalized non-expendable assets are defined as tangible, personal property which is owned, leased, controlled or possessed by an institution and that meet the following criteria:

• Are not consumed in the normal course of business.
• Have a unit value of $5,000 or more.
• Have a useful life that exceeds one year.

Use account code 40XXX (A8XXX for Service Centers and Auxiliaries) for asset purchases that meet the above criterion. The following associated costs may also be capitalized:

• Freight or excess charges on newly purchased assets if charges exceed $25  
• The cost of shipping the asset to a foreign country should not be included in the capitalized value
• All installation expenses  
• The cost of modifications that increase an asset's value by more than $5,000

Periodic physical inventories are required. See Annual Inventory Review/QUACS Review section for frequency of inventory reviews. See High Risk Equipment for special considerations regarding equipment at high risk of loss.

Minor Equipment (Expendable Personal Property)
FASOM 08.04 A2

Minor Equipment includes the following:

• Equipment valued at less than $5,000
• Books, periodicals and reference materials that are not a part of a reference library or audio-visual department
• Animals used for research (Such animals are normally consumed as a result of research.)
• Property held for resale (e.g., bookstore merchandise)

Use account code 20200 for asset purchases that meet the above criterion.

High-risk minor equipment  

Personal property and equipment that is under the $5,000 limit for capitalization and is portable by nature or easily misplaced or stolen.  For the purpose of this policy, we have specifically identified items that will be considered high-risk minor equipment.

Policy

The following high-risk minor equipment will be recorded and tracked in Banner Fixed Assets and Banner FIS for all funds, except agency funds:

• Stereo systems

• Televisions

• VCRs and DVDs players/recorders  

• Balances and scales  

• Cameras (digital, film, or video)

• Desk top CPUs

• Notebooks and laptop computers

• Hand Held PDA's

• Printers

• Projectors

• Copiers

• Lawnmowers

• Microscopes

• Musical instruments

This requirement will be in effect on purchases beginning with July 1, 2006 and forward.   Departments may add items purchased prior to July 1, 2006 if desired. Departments may require additional equipment not outlined in this policy to be tracked.  Approval to track additional assets within Banner Fixed Assets must be requested in writing (email is acceptable) to the Property Control Coordinator.

Procedure

Purchase

• Department will identify using commodity codes at point of purchase

• Property Control will add the item to the Banner Fixed Asset System

• Property Control will tag items purchased

• Department must notify Property Control by email swanson@uoregon.edu when

          a purchase is made using the procurement card.

Monitoring

• Property Control will conduct central inventory at least every two years (with the regular fixed asset inventory)

• Departments will be able to print a listing from Banner to monitor in the interim

 

Disposition

• Departments will process disposition forms (as is currently required)

• Property Control will update Banner Fixed Assets records as appropriate

Contact: Property Control Coordinator, Bob Swanson at 346-3163

Attachment vs. Components
FASOM 08.03 A1a

Attachment

Attachments are tangible, personal property that have an integral relationship with a Parent asset (they become one). There is no dollar threshold limit on attachments but they must meet the following criteria:

• Must have same Responsible Chart, Organization, Location, Grant & Custodian as Parent asset.
• Must have same Condition and Title-To as the Parent asset.
• Must have same User status as the Parent asset.
• Must have same Functional Use as Parent asset.
• Must be depreciated and disposed with their Parent asset.

Use account code 40XXX (A8XXX for Service Centers and Auxiliaries) for asset purchases that meet the criterion of an Attachment.Attachments can also be used to reflect changes to an asset where no physical object is involved.

(Note: Attachment costs are automatically added to the Parent Asset Total Cost and Total Net Book Value. Attachment Funding is displayed on the Parent asset, as is the Capitalization data.)

Components

Components are tangible, personal property that are related to, but not an integral part of, an existing asset. Components must meet the following criterion.

• Must meet all requirements of a stand-alone capitalized asset.
• Are not consumed in the normal course of business.
• Have a unit value of $5,000 or more.
• Have a useful life that exceeds one year.
• Are related to, but not an integral part of, an existing asset.
• Are depreciated and disposed of separate from Parent asset.

Use account code 40XXX (A8XXX for Service Centers and Auxiliaries) for asset purchases that meet the criterion of a Component. Components can have different Responsible Organization, Location, Grant, Custodian, Condition Title-To, and Status codes from the Parent asset.(Note: Components must be "unlinked" before disposal of the Component or the Parent asset can occur.)

When purchasing assets that do NOT meet the criterion for capitalized non-expendable assets, attachments or components, use the appropriate (20XXX) supplies expense account codes.

Asset Relationships

Parent assets can have both Components and Attachments.
Components can have Attachments but NOT Components.
Attachments can NOT have Components or Attachments.

Example:

Printers and monitors are NOT attachments to a computer, they may be components however if they meet the above criterion.

Organized Storeroom Inventory
FASOM 08.04 C2 & 3

A departmental storeroom or organized departmental inventory is a segregated and controlled store of expendable property intended primarily for department use. The property is not normally intended for resale. Such stores must be managed as departmental storerooms if the inventory is valued at $50,000 or more at any time or if annual purchases equal or exceed $150,000. Stores, with inventories less than $50,000 and annual purchases less than $150,000, are not organized or departmental storerooms and therefore treat their inventories as departmental supplies.

Use account code A40XX for asset purchases that meet the above criterion.

FIS Fixed Asset Records System

The Banner system contains a module to manage Fixed Assets. These records are updated and maintained by the Property Control Manager. Equipment is accounted for and controlled on a departmental basis. The department head is accountable for all equipment purchased for or assigned to the department. The department head is also responsible for ensuring the proper use, reasonable care and maintenance of equipment until released from this responsibility by an approved Property Disposition Request.

Generally, when a department purchases new equipment an invoice is created. When the electronic invoice is completed, it is routed to an approval queue that is solely monitored by Property Control. The information that is documented in the text field of the invoice is used to update the fixed asset records. When changing the status or disposing of an existing asset, hard copies documents are to be completed by the home department and routed to the Property Control Manager, for updating.

The information maintained in the fixed asset records is used to determine the value of fixed assets on hand, and subsequently to determine insurance coverage needs. On a periodic basis, the Property Control Manager will route reports identifying all fixed assets by organization code. This tool should be used to verify the accuracy of asset records and disposition. If you have question regarding this process or the status of an asset, please contact the Property Control Manager directly.