Property is purchased via the usual procurement processes (see Procurement Pathways Summary), but must also be tracked separately for purposes of internal control and financial reporting. If the unit cost of an item is $5,000 or more (inclusive of sales/use tax and freight) and has a life expectancy of two years or more, it is considered a capital asset. Capital assets are recorded as assets for financial reporting purposes and must be depreciated over their useful lives.
When property must be returned to the vendor, departments must complete the Shipment Request & Return Material Request . If the equipment has already been tagged, notify the Property Office immediately to remove the tag. Distribution Services will forward a copy of the Shipment Request & Return Materials Request to the Property Office, which will complete the Property Survey Report and forward to the department for signature.
Donated property may require approval before delivery by ITS, the Art Collection Committee, and/or FD&O for conformance with university standards. If worth $5,000 or more, the Property Office must tag the property. Finally, the University Advancement Office must formally accept the property on behalf of the university and provide the donor with the appropriate documentation needed for tax filings. Complete the Non-Monetary Gift Acceptance Form and forward as appropriate to make sure these steps are performed.
Property donated from external parties is recorded at fair market value. Property gifts made between the university and one of its auxiliary organizations are recorded at historical cost net of accumulated depreciation.