4209 PR.01 Acquisition and Maintenance of Moveable Equipment

Contents

1.     Overview

2.     Purchase or Lease of Moveable Equipment

3.     Transfer (Gifts/Donations) of Moveable Equipment to the University

4.     Fabricated Equipment

5.     Government Furnished Property (“GFP”)

6.     Placing Moveable Equipment in Service

7.     Maintaining the University’s Moveable Equipment Inventory (“MEI”)

This procedure, in support of Policy 4209 Moveable Equipment, sets forth the procedures for acquiring and maintaining Moveable Equipment.  All Yale community members involved in the acquisition or management of Moveable Equipment must follow the procedures described in this document.  Acquisition refers to any method through which the University obtains Moveable Equipment.  Acquisition includes, but is not limited to, the purchase, lease, and transfer (including gifts/donations) of Moveable Equipment.

Note: This procedure does not cover fixed equipment or equipment on capital projects.  For guidance on fixed equipment or equipment on capital projects, consult Policy 4202 Capitalization, Depreciation, and Disposal of Capital Assets.

Prior to purchasing or leasing Moveable Equipment, departments must determine the need for such Moveable Equipment and must avoid acquisition of unnecessary or duplicative items.

A. Avoiding Acquisition of Unnecessary or Duplicative Items

The “Find Assets by Cost Center - Yale” report in Workday provides a full inventory of the University’s Moveable Equipment Inventory (“MEI”).  Departments should run this report to determine whether acceptable Moveable Equipment already exists at the University to avoid the purchase or lease of duplicate pieces of Moveable Equipment.  Cost Center Business Asset Tracking Specialists (among select other roles) have the appropriate access to run this report.  Departments may also contact the Capital Asset Accounting team at mei.admin@yale.edu with questions or for further information.

If acceptable Moveable Equipment already exists in the University’s MEI, departments should contact the department where the Moveable Equipment is assigned to determine whether they can share the piece of Moveable Equipment.  If so, departments should coordinate a mutually acceptable schedule of use.

If the MEI does not include the necessary Moveable Equipment, or if existing Moveable Equipment does not have acceptable availability, departments may consider purchasing or leasing Moveable Equipment.

B. Purchase or Lease of Moveable Equipment

Prior to purchasing or leasing Moveable Equipment, departments must confirm an approved budget exists.

Departments evaluating whether to purchase or lease Moveable Equipment must consider the overall costs associated with each purchase or lease alternative and must work with the Procurement Department to ensure that the purchase or lease transaction conforms to all applicable procurement standards.

Principal Investigators (“PIs”) planning to purchase or lease Moveable Equipment using sponsored funds must refer to the terms and conditions of the sponsored award and contact Sponsored Projects Financial Administration (“SPFA”) for any necessary advance approvals.

C. Capitalization of Equipment

The University’s Moveable Equipment Inventory (“MEI”) System automatically capitalizes all equipment purchases that meet or exceed the University’s Capitalization Threshold and use any of the University’s thirteen MEI spend categories, which include:

            SC022              Equipment – Animal Caging

            SC023              Equipment – Cleaning & Maintenance

            SC025              Equipment – Computer

            SC028              Equipment – Electrical & Power

            SC031              Equipment – Food Preparation and Serving

            SC032              Equipment – Furniture

            SC034              Equipment – Laboratory Instruments

            SC047              Equipment – Musical Instruments

            SC048              Equipment – Office & Photographic

            SC051              Equipment – Recreational and Athletic

            SC052              Equipment – Refrigeration, Air Conditioning, Air

            SC053              Equipment – Shop

            SC058              Equipment – Vehicles

Transactions with unit costs less than the Capitalization Threshold cannot use the above spend categories.  For purchases with unit costs less than the University’s Capitalization Threshold, select an appropriate materials and supplies spend category within Yale’s e-procurement system.

Note: If the purchase of equipment is distributed across multiple invoices (e.g., initial deposit, installment payments), the purchaser (or purchaser’s business office) is responsible for contacting the Capital Asset Accounting team via email at mei.admin@yale.edu to inform them of the purchase.  The purchaser (or purchaser’s business office) is responsible for sending two emails: one at the time of initial purchase and one at the time of final invoice payment.  This ensures the proper creation of a single asset in the system.

D. Avoiding Issuance of Multiple Property Tags to a Single Asset

If a department is entering into a capital lease where the University expects to retain the title to the leased Moveable Equipment at the end of the lease term, or if a Moveable Equipment purchase involves multiple payments by installments, the department should work with Procurement, prior to purchase, to avoid the issuance of multiple property tags to a single asset.

Departments must inform the Capital Asset Accounting team at mei.admin@yale.edu at the time they obtain any Moveable Equipment, or items that may meet the definition of Moveable Equipment, transferred to the University from another institution, donated/gifted to the University, or otherwise obtained by the University without consideration.

The Capital Asset Accounting team determines the value (or remaining value) and useful life (or remaining useful life) of all such items.

If the Capital Asset Accounting team determines that the item meets the University’s definition of Moveable Equipment, the item is added to the MEI and the department is responsible for maintaining, safeguarding, and tracking the item.

Fabricated Equipment represents the costs incurred to fabricate non-expendable, tangible, personal property, by building or assembling various components and or materials into one identifiable unit. 

Such costs are accounted for as “equipment in process” until the item is completed and placed in service, at which time it is added to the University’s MEI. 

Allowable costs for Fabricated Equipment include:

• costs of materials;
• non-salary direct costs; and
• direct labor and related fringe benefit costs attributable to the fabrication.

Fabricated Equipment delivered to third parties without being placed in service at the University may not be capitalized.

Note: Fabrications associated with sponsor-funded research and development are not considered true assets of the University and, therefore, will not be capitalized.

A. Preparing and Submitting a New Project Request Form

Prior to purchasing Equipment or components to be used in the fabrication of an asset that will be funded using internal debt financing or gift funding, a new project request form must be completed and submitted to coa@yale.edu. All capitalizable costs incurred during the fabrication period should be charged to this project. All fields are required, unless otherwise stated.

It is the responsibility of the department fabricating the equipment to supply the Capital Asset Accounting team with any needed information relative to the asset being constructed.

B. Approval

If the requested new project meets all criteria for capitalization, and is approved by the Capital Asset Accounting team, the MEI manager adds the Fabricated Equipment asset to the MEI system. Once the Fabricated Equipment is fully assembled, an MEI tag is issued and placed on the piece of Equipment by a member of the Capital Asset Accounting team.

Note: If at the time the project is closed costs do not meet the University’s Capitalization Threshold, all costs are expensed.

Departments are responsible for identifying when a sponsored award in their department includes GFP. Departments are also responsible for, upon obtaining any GFP, informing the Capital Asset Accounting team by submitting Form 4209 FR.01 Government Furnished Property Form. The completion of this form allows the Capital Asset Accounting team to include the GFP in the University’s asset tracking system.

Sponsored Projects Financial Administration (“SPFA”) reviews initial notices of award for mention of GFP. If identified, SPFA includes GFP in the “special terms and conditions” within the Workday award record and provide courtesy notice to the applicable department and the Capital Asset Accounting team.

The University does not include GFP in the MEI. Rather, the Capital Asset Accounting team enters the GFP into Workday and issues an asset number and static tag. The Capital Asset Accounting team holds the static asset tag on behalf of the department for the duration of the loan.

Departments are responsible for accurately maintaining and tracking GFP and notifying the Capital Asset Accounting team via mei.admin@yale.edu of any changes to GFP (i.e., changes in “Location” or “Issued to”).

When the GFP is properly disposed or returned to the sponsor, the department is responsible for notifying the Capital Asset Accounting team so they can make the necessary updates in the asset tracking system.

Once the piece of Moveable Equipment is issued to an individual in the MEI system, it is considered placed in service, at which point depreciation begins.

Departments must ensure proper maintenance of their MEI.

Maintaining an accurate inventory includes:

• Ensuring a University-issued RFID tag – or Yale asset tag for Moveable Equipment not located on the main Yale campus or West Campus - is placed on the piece of Moveable Equipment by a member of the Capital Asset Accounting team;
• Assigning the Moveable Equipment to the PI or person responsible for the Moveable Equipment;
• Ensuring the Moveable Equipment has an up-to-date location assigned to it, including a building and room number;
• Proper disposal of Moveable Equipment. For detailed procedures regarding the disposal of Moveable Equipment, see Procedure 4209 PR.03 Transfer, Sale, Disposal, or Release of Moveable Equipment.

If a department identifies a piece of Moveable Equipment that cannot be tagged, they must complete Form 4209 FR.02 Asset Tag Exemption Request Form and submit to mei.admin@yale.edu for consideration.  The Capital Asset Accounting team will review and make a determination regarding the final tagging of the asset(s) in question.

Instances where Moveable Equipment may not be tagged include, but are not limited to:

• physical barriers to the Moveable Equipment;
• the nature of the Moveable Equipment;
• situations where the frequency of the tag may affect the operation of the Moveable Equipment;
• Moveable Equipment sensitivity;
• the Moveable Equipment in question is an internal component of another machine;
• the Moveable Equipment is not located on the main Yale campus in New Haven or West Campus;
• the Moveable Equipment is decorative, and tagging would diminish the aesthetic value;
• the Moveable Equipment is used for research and tagging would impede that research.

Note: Government Owned Moveable Equipment may be subject to government-imposed tagging requirements.  Refer to the terms and conditions of the applicable agreement.