20. PROPERTY/INVENTORY

TUFTS CAPITALIZATION POLICY

Capital expenditures can occur at any time throughout the year. There are two types of capital expenditures: construction projects and equipment purchases. All construction projects are managed by the Operations Division. All capital equipment purchases are processed by the Purchasing Department. The university capitalizes movable equipment expenses that exceed $5,000.

EQUIPMENT POLICY SUMMARY – CAPITALIZATION

Equipment is capitalized and recorded in the Property Management System database if the acquisition cost of the item is $5,000 or more and has a useful life of one or more years. A system with multiple components which cannot operate independently of each other and together cost $5,000 or more will also be capitalized. Property tags are affixed to each equipment item.

ACCOUNT CODES

For record keeping purposes, all capitalized equipment purchases are recorded to specific account codes in the PeopleSoft Financial system. Accounts 5401 through 5405 are reserved for capital equipment purchases. Only items with an individual cost or total component cost of $5,000 or more should be coded to these accounts when completing a requisition for a purchase order.

TAGGING

Once payment has been recorded, the Property Management Department will obtain a copy of the invoice for the purchase order. With this information, an individual from the Property Management Department will visit your department and tag the equipment. This usually occurs within thirty days of notification that payment for the equipment has been finalized.

Equipment may be acquired in the following ways:

  • Through the Purchasing process
  • From donations
  • Through transfer from other institutions
  • From surplus
  • Under government grants and contracts
  • Fabrication

Each department is requested to notify Property Management concerning equipment that is not acquired through the purchasing process. If you would like to inquire about the status of tagging for an equipment item, please contact Ed Fanikos within the Property Management Department at extension 72008 or via email.

DISPOSITION OF EQUIPMENT

The Property Management Department must be notified concerning any change in status for any item in the equipment inventory. This includes: moves, trade-ins and equipment transfers and surplus. Before disposition can be done, one must notify the Property Management Department by completing an online equipment change/notification request. Upon review, a representative of the Property Management Department will contact you.

PHYSICAL INVENTORIES

In order to comply with federal regulations, the Property Management Department will conduct a physical audit every two years. A representative from the Property Management Department will coordinate the audit with each department.

REPORTING

If you would like information about your department’s equipment inventory, please contact Ed Fanikos within the Property Management Department at extension 72008 or via email.

EQUIPMENT TRANSFERS

If you have equipment that is no longer of use to your department and is in good condition, the equipment will be offered to other departments within your division. Before doing so, one must notify the Property Management Department by completing an online equipment change/notification request .

Should no interest for utilization be found within your division, the items will then be offered to all departments at the university. Delivery arrangements for the equipment are the responsibility of the department obtaining the equipment.

Only after it has been determined that such equipment cannot be utilized at the university, the item will be made available for personal purchase. A fair market value, including sales tax, will be obtained for the item and the purchaser will be required to file a bill of sale. The proceeds from the sale will be allocated by the BFO to the department selling the equipment.

RECYCLING

The university makes every effort to recycle equipment in an environmentally responsible manner.

Departments must coordinate the removal of computer equipment with Facilities Management and report any Tufts University property bar code numbers to Property Management. Most electronic equipment will be moved at no charge to the department. For larger items, i.e. refrigerators, desks and other lab equipment, a requisition will be required from the department so that charges can be allocated. All lab equipment must be inspected and approved by Environmental Health and Safety prior to removal.