Financial Services

Equipment may be acquired by purchase, gift, loan, transfers between departments or campuses within the university or from another institution, or Government surplus program

An asset is anything owned by the University that has a monetary value--usually its cost or fair market value.

A physical verification of noncapital equipment conducted by the department or unit every two years.

Equipment having an acquisition or donated value of $5,000 or more and a useful life in excess of one year.

Capitalization means to classify the cost of an item as a long-term asset because the item will be used over a period of time. Therefore, the cost is not charged against the earnings of one fiscal year as part of day-to-day operations. It is charged over several fiscal years.

The benefits the University gets from a fixed asset extend over several years. Because of "wear and tear" the asset is "used up" or "consumed" over that time period. Therefore, the value of the asset is incrementally reduced annually; this is referred to as depreciation.

Equipment is tangible property (other than land or buildings) of a more or less durable nature that is useful in carrying on the operations of a business. Regardless of cost, equipment is considered University property and must be managed according to University Policies and State Law.

University property that is unusable or no longer required by the university.

The price that property would sell for on the open market. For equipment donated to the University, this value may need to be determined by an independent party to the transaction.

The most probable price that could be paid for equipment or property by average, informed purchasers.

Fixed assets are sometimes referred to as PPE (property, plant, and equipment). They are called "fixed" because they cannot easily be liquidated or converted into cash (liquid assets). These assets are purchased for continued and long-term use in conducting the University's business. They include land, buildings, machinery, furniture, computers, tools, etc.

Property owned or furnished by the federal government or acquired by the university with federal funds under the terms of a contract or grant for which the federal government retains title.

Property containing substances that are identified as hazardous by federal and/or state laws and regulations and/or by university policies and Procedures as administered by the Environmental Health and Safety Department.

Equipment having an acquisition or donated value between $1,000 and $4,999 and a useful life in excess of one year.

Intangible assets possess three characteristics: lack of physical substance, an initial useful life in excess of one year, and nonfinancial in nature. Examples include software; intellectual property such as patents, copyrights, royalties, or trademarks; and easements.

Movable equipment is not permanently attached to a building or grounds as fixed equipment or an improvement other than buildings.

Equipment having an acquisition cost or donated value of greater than or equal to $1,000, but less than the $5,000 capital threshold, and with a useful life in excess of one year. Examples include, but are not limited to, photographic equipment, computers, printers, scanners, etc.

Equipment, material, supplies, land, land improvements, buildings or building improvements purchased with any funds administered by the university, acquired from the State Department of Facilities Construction and Management or bequeathed or contributed to the university.

Land, buildings and related improvements purchased with university funds, bequeathed or donated to the university.

An official University document that is used to transfer property/equipment from one department to another and/or to retire property/equipment from a department's inventory records. The Retirement/Transfer form may be obtained from the Property Accounting Department or University Surplus and Salvage Department.

Programming code used to operate computer systems. Software may be purchased or developed internally.

Unneeded equipment is considered surplus equipment if it is still functional. Surplus equipment is transferred to the campus surplus department and made available for use by other University departments.

Property determined to be excess by the state or federal government which is made available to the university for purchase or as a gift.

Funds administered by the University without regard to source of such funds (excludes Agency Funds).

That property to which title is vested in the university whether purchased with university funds or acquired by bequest or gift.