To be used in the following situations:

TRANS CODE 

ERROR – Error corrections (for use by Property Accounting and University Surplus and Salvage Department only)
LOST – Lost or cannot be located
RTURN – Returned to the vendor
SALE – Sold off campus (only by University Surplus and Salvage)
STOLN – Stolen (University Police case number required)
TRADE – Used as a trade-in (must be approved by University Surplus and Salvage)
TROFF – Transferred to another institution
(Documentation of proposed transfer, with proper approvals must be attached)

Put an “X” in the box marked RETIREMENT FORM and complete the RETIRED FROM SECTION of the form. Also, complete the ASSET SECTION of the form and indicate the Asset Inventory Number, Kind of Tag Code, the Asset Description, one of the seven codes shown above, giving the reason for the retirement, and the U of U Police Department Case Number, if the asset was stolen. Obtain the appropriate approval signatures, and send the original copy to PROPERTY ACCOUNTING. Keep a photocopy in the department.

Retirement/Transfer Form

To be used in the following situations:

TRANS CODE

CANNI – Cannibalized (shell must be sent to University Surplus and Salvage)
INTRA – Sold or transferred to another department on campus (other than University Surplus and Salvage)
SCRAP – Scrapped (Asset must be sent to University Surplus and Salvage)
SURSV – Sold or given to University Surplus and Salvage

Put an “X” in the box marked TRANSFER FORM and complete both the TRANSFERRED FROM SECTION and the TRANSFERRED TO SECTION of the form. Complete the ASSET SECTION of the form and indicate the Asset Inventory Number, Kind of Tag Code, the Asset Description, the New Location of the Asset, and one of the four codes shown above, giving the reason for the transfer.

Obtain the appropriate approval signatures for both TRANSFERRED FROM and TRANSFERRED TO departments.

NOTE: Use the New Location Code only when making a transfer to another University Department, other than University Surplus and Salvage. To find the Location Code, Log in to CIS, click on Location Codes located under Resources & Information in the Financial & Business Services Pagelet. If you have questions regarding valid locations, please call Property Accounting at Ext. 1-3973.

If the form is being used to sell or transfer an asset to another University department (other than University Surplus and Salvage), code INTRA, send the original copy to PROPERTY ACCOUNTING, give a copy to the TRANSFERRED TO department and keep a copy in the TRANSFERRED FROM department.

If the form is being used to transfer an asset to University Surplus and Salvage (codes CANNI, SCRAP, SURSV), complete all of the information on the TRANSFERRED FROM SECTION and ASSET SECTION and complete a Surplus Work Order Request to request a pick up by the University Surplus and Salvage Department. Have University Surplus and Salvage sign and complete any unfinished parts of the form when they pick up the asset. Give the original copy to University Surplus and Salvage and keep a copy of the signed form in the department.

If transferring computer equipment to University Surplus and Salvage please complete the COMPUTER SECTION regarding hard-drive sanitation.

KIND OF TAG CODE

1. UNIVERSITY RED STICKER
2. UNIVERSITY YELLOW STICKER
3. INK EMBOSSED NUMBER
4. ENGRAVED OR ETCHED NUMBER
5. OTHER (Please describe in attached memo)

If you have any questions, please call Property Accounting at 581-8673 or 581-3973.

REVISED 11/10

Retirement/Transfer Form

This page clarifies inventory procedure expectations regarding Noncapital and Capital Equipment.

• The Noncapital Inventory Form, a spreadsheet template to be used for inventory tracking, is provided in the Information and Forms section of the Property Accounting website or on the FS Forms. Capital Inventory Forms A & B can continue to be found at these sites as well.
• Noncapital equipment must have a yellow property tag affixed when the item is put into service, while Capital equipment continues to be tagged with red property tags.
• An inventory of Noncapital equipment should be conducted at least biennially (every other year). Noncapital inventory instructions are provided in the Information and Forms section of the Property Accounting website.
• Noncapital equipment is to be inventoried for five years after purchase, while Capital equipment continues to be inventoried until retired.
• The Off Campus Authorization form is to be completed and kept on file in the department for both Noncapital and Capital equipment being used off campus. Send a copy of the completed Off Campus Authorization form to Property Accounting ONLY for Capital Equipment.
• When no longer used or in service, both Noncapital and Capital equipment will be disposed of by completion of a Retirement/Transfer form and scheduling a pick up by University Surplus & Salvage. A copy of the Retirement/Transfer form signed by Surplus is to be kept in the department as proof of Surplus pick up.
• During periodic departmental audits conducted by the University’s Internal Audit department, randomly selected Noncapital and Capital equipment will be checked for the proper tag and inventory details.

Mandatory inventory of all university-owned computers, laptops, tablets, and cell phones of any value less than $5,000 that may contain Personally Identifiable Information (PII) at any point during the university’s ownership of the asset.

Reference University of Utah Policy 3-041 Accountability for Noncapital Equipment

What is Fabricated Equipment?

Fabricated equipment is defined as scientific or other complex equipment comprised of a number of individual components that are fabricated/built into a single functional unit. Fabricated equipment is capitalized as a single asset for a combined total cost in excess of $5,000 and a useful life greater than one year. Typically, these components would be purchased with separate transactions and may be from multiple vendors. All components must function as a singular unit and will be collectively disposed of at the end of the useful life of the equipment. Individual components cannot be used independently of the remaining pieces of fabricated equipment and cannot function separately apart from the fabricated unit to which it is attached.

What is not Fabricated Equipment?

• Standard items that are altered or customized to make them usable on a sponsored project do not qualify as fabricated equipment.
• Connecting components together in a system (physically or virtually) does not constitute an equipment fabrication e.g., when individual computers and servers are joined to create a network.
• Components greater than $5,000 which are not physically attached or can function independently should be considered stand-alone capital equipment.

Please note: If a computer is purchased because it is required to run complex scientific equipment and the fabricated equipment cannot function without it, the computer can be capitalized as part of the fabricated equipment. However, the computer MUST be used strictly for that fabricated equipment and cannot be used in any other capacity.

Fabricated Equipment Procedures

1. Principal Investigator (PI), in conjunction with the departmental staff, should notify Property Accounting to establish new fabricated equipment by completing a Notice of Intent to Fabricate Form when the grant has been awarded or funding determined. Completed forms should be sent to Paula.Monaco@admin.utah.edu.
2. Property Accounting will review the Intent to Fabricate, will notify the PI once approved and assign an asset number.
3. When purchasing components use the fabricated account codes 61100-61119. The asset number MUST be on all requisitions, noted in the comments. If a University Purchase card is used for purchases contributing to the fabricated asset you must contact Property Accounting (Paula Monaco Paula.Monaco@admin.utah.edu) and inform her of the totals charged, vendors and asset project number.
4. All receipts for contributions to the fabricated assets should be retained by the department and saved for verification. Property Accounting will ask for copies of receipts to verify eligibility as needed. It is the department’s responsibility to keep copies of all receipts for the components of fabricated equipment. These receipts may be required during an audit.
5. When the fabricated asset is assembled and operational, the department should notify Property Accounting. The red tag will be sent out for the asset.

Notice of Intent to Fabricate Form

• Is this new?Yes, the Governmental Accounting Standards Board issued guidance covering accounting and financial reporting for intangible assets. This guidance was effective July 1, 2009. The University’s Board of Trustees adopted Policy 3‐043 Accountability for Intangible Assets on February 9, 2010. While the policy covers several different kinds of intangible assets, the type most frequently encountered by departments will involve the purchase or development of software. The entire policy can be found here.
• What kinds of software are capitalized under this policy?
  • Purchased software
    • Cost must be at least $100,000 and have a useful life of at least five years
  • Internally developed software (e.g. a “project”)
    • May be fully developed by the University or may be purchased, but require more than minimal incremental resources to implement. “More than minimal incremental resources” suggests a project involving significant staff time; an extended implementation period; and/or the use of outside consulting assistance to implement.
    • If the project is for research purposes, it is not subject to this policy and is not capitalized. In general, software purchased on Fund 5000 Projects would not be within the scope of this policy.
    • Projects must have an estimated budget of at least $1,000,000 and an expected useful life in excess of ten years. “Useful life” refers to the period the software is expected to be utilized before it becomes obsolete. A useful life generally begins after the development or implementation are complete.
    • Typically, a project subject to this policy would have been prioritized through the ITC or one of the Portfolio Committees
• What about upgrades?Upgrades and enhancements are capitalized only if there is a significant increase in functionality. Routine upgrades are not capitalized.
• What about annual maintenance costs?Annual maintenance costs are not capitalized.
• My department is planning a software purchase soon and it will be over $100,000. What should we do?A new Account was created, 61500 Software Purchase >$100,000. Please use that Account when purchasing software that should be capitalized under this policy. Please keep in mind that annual maintenance payments or user licenses, even if over $100,000, should not be capitalized.
• What if I have questions?Departments in Business Unit 01 should contact Financial Reporting & Accounting.