Policy number: 4.3
Policy section: Business & Finance
Revised Date: January 2, 2019
Definitions of capitalized terms are set forth in Appendix A.
2. Policy Statement
It is the policy of the University to safeguard the Capital Assets of the University and other Capital Assets under its stewardship.
The purpose of this policy is to establish the responsibilities of University Personnel, and others, as applicable, with respect to Capital Assets.
This policy applies to all Capital Assets owned by the University or under the care of any University Personnel and any others using Capital Assets.
5. Purchase of Capital Assets
All Capital Assets must be purchased pursuant to applicable University Policies and procedures relating to purchasing, including providing appropriate notice to the Office of Risk Management.
6. Security and Maintenance of Capital Assets
University Personnel and any others using Capital Assets are responsible for safeguarding those Capital Assets to the extent practicable and for the prudent and proper care and maintenance of those Capital Assets. Safeguarding and maintenance of Capital Assets titled to a third party (such as the United States government) is the responsibility of the Principal Investigator or Project Director responsible for the award relating to the Capital Assets (see University Policy 10.5, Government Property Management) in case of grants or contracts, and of the custodian of the Capital Assets in all other cases.
7. Responsibilities of the Controller’s Office
- The Controller’s Office is responsible for accounting for Capitalized Capital Assets.
- The Controller’s Office will provide Capitalized Capital Assets inventory schedules to the business managers for each school or department, which must be completed and returned to the Controller’s Office to verify and update the University’s asset management records. All Capital Assets must be accounted for and explanations for discrepancies between the asset management records and the Capital Assets identified must accompany the inventory schedules returned. Annually, the Controller’s Office will review and audit Capital Asset inventories for accuracy.
8. Disposition of Capital Assets
Disposition or movement of Capital Assets must be coordinated by the Purchasing Department (see University Policy 4.9, Excess Property) and reported to the Controller’s Office by a method established by the Controller’s Office. The Controller’s Office will make the appropriate adjustments to the asset management records.
Questions about this policy may be directed to the Vice President for Business and Finance.
Appendix A: Definitions
“Capital Assets” means long-lived assets such as property, plant, and equipment that provide ongoing benefits to the University.
“Capitalized Capital Assets” means Capital Assets owned by the University or its subsidiaries that have an acquisition cost of $5,000 and over and have an estimated useful life of at least two (2) years, with the exception of software, where the cost must exceed $75,000 before the Capital Asset will be capitalized.
“University Personnel” means faculty, staff, students, volunteers, and contractors.
Revised: January 2, 2019
Adopted: July 29, 2002