Capital Equipment Policy and Procedures

Youngstown State University (the University) utilizes a wide variety of equipment to support its mission. Accounting for University property is the responsibility of the Controller’s Office; however, this also requires on-going review and accountability by all University departments.

Definition

Capitalized equipment is labeled with a red metal tag containing a unique five-digit ID number. The Controller’s Office will be responsible for assigning tags and distributing them to the department responsible for the capital equipment. The department is then in charge of placing tags on capital equipment, preferably near an externally visible manufacturer’s model/serial number. If a tag is not physically able to be attached to the item, the tag should be kept in the responsible department’s records for the life of the asset. These tag numbers will appear on the Annual Verification Inventory Report and if a piece of equipment is missing a tag number the Controller’s Office will assign one.

Computer items of less than $5,000 may be tagged with a green metal tag containing a unique ID# that is tracked by Information Technology Services.

Red and green tags should never be removed.

ACCOUNTABILITY

Financial Managers are responsible for the physical security of all equipment assigned to their department/organization, as well as the accuracy of the equipment records. The Controller’s Office is responsible for maintaining the permanent detailed record of all capital equipment owned by the University including Sponsored Programs acquisitions and all gifts of equipment. Transfer or disposition of equipment acquired with grant or gift funds must comply with any applicable grant, agency, or donor restrictions.

ANNUAL VERIFICATION

An Annual Equipment Inventory Verification Report, which is a complete listing of equipment in a department/organization, will be sent to each Financial Manager in April of each fiscal year. An inventory must be performed, the verification report updated and approved by the Financial Manager, and returned to the Controller’s Office by May 31st of each year. If the verification report is not returned by the May 31st deadline, a second notification will be sent to the Financial Manager and a copy will be sent to the administrative officer over the division. The Annual Verification Report that is returned to the Controller’s Office is subject to periodic unannounced independent verification. Capital equipment inventory instructions can be found on the General Accounting web page.

CHANGES IN EQUIPMENT STATUS

Changes in equipment status should be reported and approved by the Financial Manager as they occur throughout the year. Changes are to be reported at the time of the change using the Equipment Status Change Form, which can be found on the General Accounting Forms web page. Changes that must be reported are:

1. Relocation of Property Within a Department
   When capital equipment is moved to another room or building, the new location must be reported.
    
2. Transfer of Property to Another Department
   When ownership of capital equipment is transferred from one department to another the new location must be reported.
    
3. Equipment Trade-In
   Departmental personnel may trade in equipment that is outdated or surplus as needed for replacement purchases. The words “TRADE-IN” should be included on the purchase order. Before trade-in decisions are made, the department should consider disposal alternatives. If an item is traded-in, the item will be deleted from inventory records by the Controller’s Office and the net book value of the trade-in will be added to the cost of the new item.
    
4. Cannibalized Equipment
   Before equipment is destroyed or “cannibalized” to make a new asset or improve an existing asset, it must be approved by the Financial Manager.
    
5. Destroyed Equipment
   Capital equipment that was destroyed by an accident or disaster.

STOLEN/MISSING OR VANDALIZED EQUIPMENT

University Police must be immediately notified of each piece of equipment that cannot be located and is believed stolen or if equipment is vandalized. The Financial Manager must provide as much detail as possible to police investigators and should contact the Controller’s Office if it is not readily available in the department. The promptness with which the police are contacted as well as the completeness of record detail is essential for a successful investigation. A copy of the security report must be forwarded to the Controller’s Office immediately. The equipment will then be deleted from the department/organization’s inventory.

TAGGING EQUIPMENT

Generally capitalized equipment is labeled with a red metal tag containing a unique five-digit ID number. This tag is attached to an area that should be easily observable. If a tag is not physically able to be attached to the item, a unique six-digit ID# that begins with a “9” is assigned. These tag #s will appear on the Annual Verification Report. Equipment that does not have a tag number assigned will be followed-up on by the Controller’s Office as part of the Annual Equipment Verification process.

Computer items of less than $5,000 may be tagged with a green metal tag containing a unique ID# that is tracked by Information Technology Services.

Red and green tags should never be removed.

SURPLUS PROPERTY AND SCRAP MATERIALS

Usable university property not in active use is considered surplus. Obsolete equipment may be traded-in, recycled, sold, or scrapped. Recycling should be contacted for the correct handling of all of these types of property. They can be contacted at surplus@ysu.edu. The Financial Manager is responsible for property until removed by Recycling. Forms and instructions regarding surplus, scrap, and recycling can be found on the Recyling website.

GA-CapEquipProcd 4.13.15