OP-D-2-F PROPERTY
SPECIFIC AUTHORITY
Chapter 273.02, Florida Statutes
OBJECTIVE
The purpose of this policy is to ensure the accountability and safeguarding of University assets.
OVERVIEW
This document describes department roles and University policies regarding purchase, donation, transfer, fabrication, exchange, removal and disposition of University property.
Property Accounting Services (PAS)
The role of Property Accounting Services is to establish policies and procedures that help ensure accountability for and the safeguarding of University assets; ensure compliance with applicable laws, rules and internal policies and procedures; coordinate the annual physical inventory; account for acquisitions, transfers and disposition of tagged property; depreciate tangible property over the estimated useful life; and maintain the property records in the OMNI System.
The President is responsible for all University property. Responsibility is delegated to the Vice Presidents, Deans and Directors. The Vice President, Dean or Director may delegate this responsibility to another individual by sending a memorandum to Property Accounting Services specifying the delegate and the Department ID's for which the delegate will be responsible.
University Departments
The role of the University departments is to effectively manage and safeguard assets; ensure that University assets are marked/tagged in accordance with applicable rules, internal policies, and procedures; provide non-accounting information in a timely manner to the Property Accounting Services department for updating the OMNI System; and to perform the annual inventory of assets in its custody.
- Property Manager
The department Property Manager is the individual designated by the Vice President, Dean or Director who has been assigned the responsibility for authorizing the transfer or disposal of University property. If a department Property Manager has not been assigned, these duties will default to the Department Budget Manager. In the case of contract and grant acquired property, and as long as the contract or grant is active, the Principal Investigator is the Property Manager.
- Property Custodian
The department Property Custodian is the individual designated by the Vice President, Dean or Director who has been assigned the responsibility for the identification of University property and the maintenance of the department's property records. The assignment of this responsibility does not relieve the Vice President, Dean or Director from accountability for property assigned to his or her area.
- Inventory Taker
The department Inventory Taker is an individual designated by the Vice President, Dean or Director who has been assigned the responsibility for the inventory of property. To help maintain adequate internal controls, this person should not be the Property Custodian or the department Property Manager. In small personnel-limited departments, the Property Custodian may inventory the property; a memorandum should be included with the final inventory statement explaining the circumstances.
Property Survey Board
The role of the Property Survey Board is to examine and make recommendations on approval or disapproval of dispositions of major accountable property.
Sponsored Research Accounting Services (Contracts & Grants)
Sponsored Research Accounting Services must approve transfers and dispositions of property acquired with contract or grant funds.
Account Code
Account code is a 6 digit code utilized by the OMNI system. Major accountable property should be purchased using the 760000 series account codes.Accountability Release
The Accountability Release form (AR212) is used to document the disposition of major accountable property, and remove the items from the department's custody.Asset Profile
Asset Profile is a classification that identifies the depreciation criteria for an asset. Asset Profile is the flag within the OMNI System which identifies that an item is major accountable property. Assignment of an Asset Profile is required for items to be capitalized within the OMNI system. See the OMNI system for a listing of Asset Profiles.Computer Scrubbing Computer scrubbing, also sometimes referred to as data cleansing or hard drive wiping, is the process of completely deleting the contents of a computer’s hard disk. Deleting all files is not the same as erasing/scrubbing the hard drive.
Direct Support Organization (DSO)
Separately incorporated organization that operate exclusively to provide the University with supplemental resources.Equipment Use Request
The Equipment Use Request form (ER244) is utilized to request approval to use major accountable property at off-campus locations.Inventory Certification
The Inventory Certification Form (IC 852) is to be used to document custody verification of items that have been located but cannot be scanned during the annual inventory. This form will not be accepted for any item that can be scanned. A department cannot certify more than a total of 15 items, excluding non-taggable and off-campus assets.Major Accountable Property
Tangible personal property of a non-consumable nature which has a unit acquisition value of $1,000 or more and an expected life of one year or more, hardback-covered bound books valued at $250 or more that are not circulated to students or the general public, hardback-covered bound books valued at $25 or more that are circulated to students or general public, or computer software that has an expected life of one year or more and a unit acquisition value of $1,000 or more per licensed user. Section 273.02, Florida Statutes specifically exempts libraries from marking/tagging hardback-covered bound books. The catalog and inventory control records maintained by the libraries shall constitute the property record of hardback-covered bound books with a value or cost of $25 or more.All costs involved with the acquisition and installation of property (i.e. shipping, set-up charges, etc.) should be included in the acquisition value.
All major accountable property acquired by or for the University through purchase, fabrication, donation, transfer or loan should be recorded on the University property records and inventoried annually.
Minor Accountable Property
Non-consumable tangible personal property with a useful life less than one year and/or an acquisition cost of less than $1,000. Although tagging and annual inventory of minor accountable property is not required, departments are still held accountable for such items.OMNI
The official accounting system for the University is the OMNI system, which stands for Online Management of Networked Information.Operating Capital Outlay (OCO)
The budget category used to fund the purchase of equipment, fixtures and other tangible personal property of a non-consumable and non-expendable nature. The OMNI Account Code range for identifying OCO items is the 760000 series.Property Change Form
The Property Change Form (PC213) is to be completed when there is a location change, Department, Fund Code or Project ID change of major accountable property, or when transferring any accountable property to surplus. Property Accounting Services staff will not move or remove any tagged or untagged items from a department that are not listed and properly approved via the Property Change Form process.Property Identification Form
The Property Identification Form is used to document the location, description and other required information for major accountable property items.Property Inventory Reconciliation
The Inventory Reconciliation form is prepared annually by Property Accounting Services. The form reconciles the departments' beginning inventories to their ending inventories. The appropriate department staff member will review the form, sign and return it to Property Accounting Services.Property Tag Number
The number assigned to an item by Property Accounting Services; usually in the form of a decal, which is affixed to major accountable property.Property/Operating Capital Outlay (OCO)
Property is tangible personal property and computer software of two principal classifications: major and minor accountable property.
OP-D-2-F3 PURCHASE OF PROPERTY
A. In most cases, major accountable property should be purchased from Operating Capital Outlay (OCO) funds. The Requisition to Purchase or the ID Requisition must reference the applicable Account Code and Asset Profile in addition to the Dept ID and Fund Code. The asset profile flags items to be placed in the Asset Management Tables of the OMNI System. If a property item is acquired and the expenditure erroneously coded with an account code other than a 76XXXX and/or does not have an asset profile attached to the item, the department Property Manager of the unit receiving the property should notify Property Accounting Services of the acquisition via a memorandum. Property Accounting Services will make the necessary online corrections in the Asset Management module.
B. Freight, installation, and other costs incurred to acquire or install the property are considered part of the cost of the item and will be paid from OCO.
C. Expenditures of $1,000 or more for addition of components to an existing item of property are also OCO. In preparing the requisition, the property tag number of the property to which the component is being added should be referenced. The cost of the component will be added to the cost of the original property in the inventory record.
D. Replacement parts, repairs, and service contracts are not additions to the property.
E. Unless approved in advance by Property Accounting Services, major accountable property may not be purchased on blanket purchase orders or with the FSU Purchasing Card.
F. For any questions concerning the classification of a particular item being acquired, call Property Accounting Services, 644-9758.
OP-D-2-F4 DONATED PROPERTY
Property may be donated to the University without expenditure of funds other than shipping costs. Donations of major accountable property must be processed through one of the University's direct support organizations.
OP-D-2-F5 FABRICATION OF EQUIPMENTA. Benefiting a Contract or Grant Organization
Prior to acceptance of such property, the Property Manager of the benefiting unit should send a memorandum detailing a description of the property, the value of the property (cost or fair market value), and the name and address of the providing agency to Sponsored Research Accounting Services (Contracts and Grants). A copy of the memorandum should be forwarded to Property Accounting Services. Sponsored Research Accounting Services will determine if the acquisition is in the best interest of the University and ensure the transaction is handled in accordance with applicable State and Federal regulations. When the property is received, Sponsored Research Accounting Services will forward the documentation to Property Accounting Services to support the acquisition. The documentation should include the department code to which the property is to be assigned. All donations of major accountable property will be processed through one of the university's DSO's.B. Benefiting other than a Contract or Grant Organization
Prior to acceptance of donated property, the department Property Manager should send a memorandum detailing the description of the property, the value of the property (cost or fair market value), the organization code to which the property is to be assigned, and the name and address of the donor to the appropriate direct support organization (FSU Foundation Inc., Seminole Boosters Inc., The Research Foundation, Inc., etc.) A copy of the memorandum should be forwarded to Property Accounting Services.
Property fabricated or constructed by or for the University may meet the criteria of major accountable property. The department Property Custodian should maintain an accurate record of all related expenditures, including, but not limited to, the cost of labor and component parts. Upon completion, the department Property Custodian should submit a memorandum to Property Accounting Services detailing a description of the property, the accumulated cost of the property, and the Dept ID and Fund Code to which the property is to be assigned. If the accumulated cost is not practicably determinable, the estimated cost or fair market value should be provided.
OP-D-2-F6 PROPERTY IDENTIFICATION NUMBERA. All property tag numbers/decals are assigned by Property Accounting Services.
B. The appropriate property decals are affixed to the Property Identification Form and sent to the Property Custodian.
C. The Property Custodian is responsible for ensuring the decals are affixed to the appropriate equipment upon receipt of the form/decals.
D. In all cases, it is the responsibility of the departments to notify Property Accounting Services when equipment is received, so decals may be issued.
E. After tagging the property, the Property Identification Form must be completed and returned to Property Accounting Services within fifteen (15) days. Notify Property Accounting Services of any tagging delay.
F. In situations where the decals cannot be affixed directly to the property (i.e., lenses, delicate equipment, software, etc.), the tag should be placed on the container of the property, or in the case of software, on the software documentation. If no container or documentation is available, an identification number with a prefix of 09 will be assigned to the property.The 09 prefix indicates that a decal could not be affixed, but recording and inventory is still required. The department is responsible for developing and maintaining procedures for the identification and control of property without a decal directly affixed. Property Accounting Services will provide suggestions or advice for development of the procedures upon request.
G. When the United States Government provides property to the University and retains title; a U.S. Government identification tag must be affixed to the property. The U.S Government identification tag will be forwarded along with the FSU bar-code decal and Property Identification Form. If the item is purchased with contract or grant funds, it may revert to the U. S. Government upon expiration of the contract. Sponsored Research Accounting Services should be consulted to determine if the property must be sent elsewhere, or if ownership should be transferred to an FSU department or project permanently. If the department Property Custodian does not receive a U.S. government identification tag for U.S. Government owned property, Property Accounting Services should be notified.
OP-D-2-F7 PROPERTY INVENTORY
Chapter 273.02, Florida Statutes, requires an annual inventory of major accountable property. The Dean or Director of each unit, in order to ensure that the annual inventory is completed, will designate an Inventory Taker who will be responsible for the inventory of that unit’s property. This individual should be an employee other than the Property Custodian or the Property Manager.
A. Annual Inventory Overview
The annual inventory will be scheduled and coordinated by Property Accounting Services who will notify the department of the scheduled inventory date and conduct inventory training for the departments. The department Custodian, Manager and Inventory Taker should attend the training sessions as required. Scanning equipment will be provided to the Inventory Taker at the training session.B. Missing Items
The department is responsible for determining the status of each missing item and should make a good faith attempt to locate items missed in the initial scan. Inventory items that the department is unable to locate must be documented via the Accountability Release Form (AR 212) along with a Police Report. These forms should be completed at the time the asset is identified as missing.C. Items That Cannot be Scanned
Items which have been physically located and verified, but which cannot be scanned electronically, should be reported on an Inventory Certification Form (IC 852).D. Inventory Reconciliation
E. Inventory Compliance
After the status of all major accountable property for the inventory site is documented, Property Accounting Services will complete a Property Inventory Reconciliation Form and forward it to the department for review and signatures.
A department is deemed to be out of compliance with inventory policy if any of the following conditions exist:
1. The department is, in any given year, unable to account for property equal to or more than:
a. 5% of the unit’s total inventory count or dollar value2. The department is, for any two consecutive years, unable to accounts for property equal to or more than:
OR
b. Seven (7) of the department’s items
OR
c. $20,000 in value
a. 3% of the department’s inventory count or dollar value
OR
b. Five (5) of the unit’s items
OR
c. $15,000 in value
3. The department fails to complete their physical inventory and have the corresponding Property Inventory Reconciliation Form signed off on and returned to PAS by May 30th of any year.
Non-compliance with the inventory policy will result in a fine to the department. Only one of these thresholds must be exceeded for the department to be subject to the inventory non-compliance fine.
The amount of the fine for inventory non-compliance will initially be $5,000. The fine will be increased by 10% for each successive year that a unit exceeds the threshold limitations.
Assessment of this fine will be executed by a budget transfer from unit expense funds for E&G departments and by cash transfer for non-E&G departments. The transfers will take place in August of the year following the date on which property is permanently removed from the University's property records. Units must appeal in writing extraordinary circumstances contributing to unaccounted items by July 15 following the permanent removal from the University's property records. Appeals should be directed in writing to the Provost. Only appeals providing compelling evidence and circumstance will be favorably entertained. For units that cannot be assessed due to funding source restrictions, or that are of such small size that the assessment would present an undue hardship, the budget to which the unit reports will be responsible.
Units whose unaccounted property exceeds one or more of the thresholds described in section E.1. and 2. above will be subject to a review of their physical inventory by an independent entity. These departments will also be referred to the Office of Audit Services to help facilitate positive changes through consulting, audits and investigations. The Office of Audit Services may further refer investigations to the FSU Police Department as necessary.
F. Poor Inventory Management Consequences
Units with poor management records will:1. Be notified in writing of their performance,
2. Develop a management improvement plan,
3. Schedule additional training and
4. Be scheduled to commence the inventory process early.G. Permanent Removal of Unaccounted for Property from Property Records
Units have a responsibility to continue to actively search for all items reported as "Unaccounted for During Annual Inventory" after the inventory reconciliation process has concluded. Units have a two (2) year period in which to locate the items unaccounted for during annual inventory before the items are permanently removed from the University's property records. If a unit locates a sufficient number of items within the two-year period to reduce the amount of unaccounted for items to less than the threshold amounts, the assessment described in section G. above will not be executed. The assessment will become final upon removal of the property items from the University's records.H. Additional Inventory Information
Additional detailed information about the property inventory process, including detailed instructions on how to use the scanners and additional information about inventory training, may be found on the Controller’s website.
OP-D-2-F8 LOCATION/DEPARTMENT CODE CHANGE OF PROPERTY
When there is to be a location/departmental code change for major accountable property, the transferring department's Property Manager should approve the Property Change Form (PC213).
A. When changing a major property item's Dept ID or Fund Code, the Office of Sponsored Research Accounting Services must approve the Property Change Form if the property is listed under a contract or grant-funded department.
B. When assistance is required for the physical move of tagged property, the Property Change Form should be completed with the exception of the receiving department's Property Manager's signature, and submitted to Property Accounting Services. Property Accounting Services will pick up the property and give the transferring department a copy of the Property Change Form with the signature of the mover. This copy should be retained by the transferring department as proof of release. Upon delivery, the receiving department's Property Manager or designee should sign as receiving the property and retain a copy of the form.
C. When assistance is not required for the physical move of Major Accountable Property, the transferring department's Property Manager must approve the Property Change Form, obtain the signature of the receiving department's Property Manager, and then submit the original to Property Accounting Services. Each department's Property Manager should retain a copy of the completed form.
D. Building Services is to be contacted for assistance when the move consists of only minor (untagged) property (excluding surplus); a Property Change Form is not required. When an entire office or unit is relocating to another area, Building Services may handle the move or hire an outside vendor. After completion of the relocation, the department is responsible for submitting a Property Change Form indicating the new location of all major accountable property. Building Services should be contacted when property is to be temporarily moved for special events (set-ups).
OP-D-2-F9 REMOVAL OF PROPERTY FROM CAMPUS LOCATIONS
Property may be removed from campus locations only if it is required by a contract or grant, or if the use of the property in the off-campus location will further the goals of the University. Campus sites are buildings and areas owned or leased by the University. Planning and Space Managment assigns these sites. Off-campus sites are buildings or areas not owned or leased by the University.
A. The removal of University property from campus sites must be authorized in writing prior to removal. Items removed for a period of one (1) year or less should be authorized by the department's Property Manager in writing utilizing the Equipment Use Request form (ER244). This form should include the signature of the user acknowledging responsibility for the item(s), location, the date received, and the date returned (when the item is returned and accounted for). A copy of the ER244 form should be sent or faxed to Property Accounting Services (fax 644-6201) when the property item is checked out. The department's Property Custodian will retain the original form until the item is returned, then send it to Property Accounting Services. The department's Property Custodian then retains a copy of the completed form. The ER244 form associated with an item removed for a period of one (1) year or less will automatically expire on June 30th of the fiscal year in which the form was completed.
B. Property items removed in excess of one (1) year require the completion of the Equipment Use Request form (ER244) signed by the user and the department's VP, Dean, or Director, and forwarded to Property Accounting Services. The ER244 form associated with an item removed for (1) year or more does not expire. However, an Inventory Certification Form (IC 852) must be completed for each fiscal year that the item is out.
C. Property removed from FSU locations may be covered under the insurance policy for the off-site location (i.e. home-owners insurance policy). If such coverage is not available, or if property will be removed for more than one (1) year, the department's Property Manager is responsible for working with the Department of Risk Management and Insurance to ensure appropriate coverage.
OP-D-2-F10 DISPOSITION OF MAJOR ACCOUNTABLE PROPERTY
Accountability of University property is assigned to the Property Manager of the unit to which the property is assigned. The removal of property from University control may occur via: missing (unaccounted for during inventory); theft; maliciously or accidentally destroyed; traded-in; cannibalized; transferred to other state agencies; donated to specified non-profit organizations; transferred to contract or grant specified institutions; scrapped; abandoned; or sold at public surplus auction.
A. Surplus
When property becomes obsolete, uneconomical, inefficient, or no longer serves a useful function, the department may request the property be classified as surplus. Only Major or Minor Accountable property that is in working condition, or which has parts that are valuable and may be readily used or sold, should be classified as surplus. Property which is unsafe for further use or which has no value should NOT be classified as surplus, but may be disposed of via cannibalization or recycling/dumping using the Accountability Release Form (AR212).To classify property as surplus and initiate the transfer of property to the surplus warehouse, the department Property Custodian should complete a Property Change Form (PC213). To complete the form, the Property Custodian should list the items to be classified as surplus, including property and serial numbers, obtain the signature of the Property Manager, and forward the form to Sponsored Research Accounting Services if purchased with Contract and Grant funds, or to Property Accounting Services. PAS will review and approve the form, and release the department from accountability for the property once it has been received by Surplus.
Property that may contain, or has been exposed to, hazardous material should be cleared through the Department of Environmental Health and Safety prior to requesting classification as surplus. Computers must be properly scrubbed by the transferring department prior to their release to Surplus Property. It is the responsibility of the department Property Manager to ensure computers and storage devices that are classified as surplus, salvaged, or otherwise disposed have had their drives and devices wiped. Go to the Surplus Property web page to see Instructions for Scrubbing Computers or call Property Accounting Services at 644-9037 or 644-9757 for additional information.
B. Lost/Stolen, Maliciously Destroyed Items
When major accountable property is stolen, lost or maliciously destroyed, the Department of Public Safety must be notified immediately. The department Property Manager must approve the Accountability Release Form (AR212) and submit the form to Property Accounting Services along with a copy of the police report. Property Accounting Services will present the Accountability Release Form to the Property Survey Board for approval. The Property Survey Board will review each request and release the department from accountability where appropriate. If major accountable property is subsequently located, the department's Property Custodian must submit an Inventory Certification Form (IC 852). Submitting this form initiates the process of restoring the property to an active status in OMNI, and removes it from a lost/stolen status.C. Cannibalization
To cannibalize major accountable property and use its component parts for the repair of other property, the department Property Manager must request and receive permission prior to cannibalization. An Accountability Release Form (AR212) must be completed to request this approval from the Property Survey Board. If the Survey Board approves the request, Property Accounting Services will advise the department to proceed with the cannibalization by sending the department an approved copy of the Accountability Release Form and a Disposition Confirmation Form. Personnel from the requesting department should ensure that the property decal and all other references to the FSU property identification number are removed or defaced at the time the property is cannibalized, and ensure the Disposition Confirmation Form is completed. Upon receipt of the Disposition Confirmation Form, Property Accounting Services will update the property records to process the deletion. After cannibalization, the unused parts should be treated as Minor Accountable Property, and disposed of via recycling/dumping or if there is residual value, through classification as surplus.D. Scrapped
To recycle or dump Major Accountable Property that has no value other than as scrap, the Property Manager must approve the Accountability Release Form (AR212) to request advance approval from the Property Survey Board. If the Survey Board approves the request, Property Accounting Services will advise the department to proceed with the disposition by sending the department an approved copy of the Accountability Release Form and a Disposition Confirmation Form. Personnel from the requesting department should ensure that the property decal and all other references to the FSU property identification number are removed and returned or defaced and ensure the Disposition Confirmation Form is completed. Departments may physically dispose of the property by taking it to the recycling area, or by contacting Building Services to arrange for its removal.E. Abandoned or Non-Recoverable Property
When major accountable property is abandoned or non-recoverable because the cost to retrieve the property is greater than the value of the property, the department Property Manager must approve an Accountability Release Form (AR212). If the Property Survey Board approves the release of accountability, Property Accounting Services will update the property records.F. Accidentally Destroyed
When major accountable property is accidentally destroyed or damaged beyond repair, the Property Manager should approve an Accountability Release Form (AR212) and forward the form to Property Accounting Services. A police report detailing the circumstances of the occurrence/incident involving the damaged property is required in conjunction with the AR212. Property Accounting Services will present the form package to the Property Survey Board. The Property Survey Board may verify the damage to, or the destruction of the item. If the Survey Board approves the request, Property Accounting Services will advise the department to proceed with the disposition by sending the department an approved copy of the Accountability Release Form and a Disposition Confirmation Form. Personnel from the requesting department should ensure that the property decal and all references to the FSU property identification number are removed or defaced and ensure the Disposition Confirmation Form is completed and returned to Property Accounting Services. Departments may dispose of the property by taking it to the recycling area, classifying the item as surplus (without reference to the tag number) if there is residual value, or by contacting Building Services to arrange for its removal.G. Transfer Out or Donation of Non-C&G Property
Transfer of non-C&G property to other state agencies or political subdivisions must be processed via an Accountability Release Form (AR212). Donations to approved, private nonprofit agency as defined in F.S. 273.01(3) will be done by Property Accounting Services through Surplus Property. The departments transfer property to be donated to Surplus Property, and the PAS staff accomplishes the donation through the use of an Accountability Release Form (AR212). Requirements for a non-profit organization to be approved include submitting to PAS: 1) cover letter of the agency, 2) copy of 501c letter from the IRS, and 3) copy of the Florida Exempt Sales Tax cover page. Prior to transfer or donation, approval must be obtained from the Property Survey Board, and from the appropriate Dean/Director.H. Motor Vehicles
When transferring a motor vehicle to another University department or to Surplus, the keys must accompany the Property Change Form. Please contact PAS at 644-9756 for questions on transferring the vehicle tag. The department is responsible for arranging/coordinating the towing or delivery of the vehicle to the Surplus warehouse area.I. Contract or Grant Property
Sponsored Research Accounting Services must approve all dispositions and transfers to Surplus of property acquired with, and still remaining on a sponsored project. Sponsored Research Accounting Services' approval will be documented on the Accountability Release Form and the Property Change Form.J. U.S. Government Owned Property When U.S. Government property becomes excess to the contract for which it was provided, it must be screened against the needs of other contracts before it is declared excess. If such need is disclosed, a request should be made to the contracting officer for authority to use or transfer the equipment. Additionally, if the department wishes to cannibalize government equipment, a request to cannibalize MUST be made to the Contracting Officer for approval. When a transfer of title has been affected, all U.S. Government identification must be removed and a University Property decal will be provided by Property Accounting Services and affixed to the equipment.
OP-D-2-F11 TRANSFER OF EQUIPMENT ACQUIRED WITH CONTRACT OR GRANT FUNDS
Under certain conditions, equipment acquired with contract or grant funds may be transferred to institutions that are not a part of the State University System of Florida, agencies of the State of Florida, or Florida counties. The Principal Investigator of the grant or contract may request equipment purchased with funds furnished under the grant or contract be transferred to the institution to which the Principal Investigator is transferring. The Principal Investigator may also request transfer of other equipment utilized in the research that has been certified as surplus under surplus property procedures. The written request should include a list of the items to be transferred with the corresponding FSU Property Tag Numbers, the original acquisition date, cost, and funding source, the grant or contract number and any additional information/documentation that would help to evaluate the request.
Factors to be considered in granting the request would include:
a) if the Principal Investigator is continuing the same research project at the new institution;
and
b) would the transfer negatively affect other research of the department and the functions of the remaining faculty.
The written request should be attached to a completed Accountability Release Form (AR212) and submitted to the Department Chairman and the Dean of the College for approval. The AR212 and written request, including required signatures, is then routed to Sponsored Research Accounting Services to ensure the transfer is in compliance with the terms and conditions of the contract and grant. Sponsored Research Accounting Services will forward the request to the Controller for final approval, who will send the transfer request approval, or denial, back to the Principal Investigator.
Physical transfer of the equipment cannot occur until all required signatures and final approval have been obtained. Proof of receipt and acceptance by the receiving institution is required upon transfer.
OP-D-2-F12 TRADED-IN/EXCHANGED
OP-D-2-F13 CAPITALIZATION OF ASSETSA. When property is traded-in or exchanged for the acquisition of new property, the budget account manager will complete a Requisition to Purchase that should include the following information:
1. Description of property traded
2. A statement of condition
3. Trade-in allowance detailed on the Purchase Order; a copy should be included with the Accountability Release Form (AR212)
4. FSU property decal number(s)
5. Serial number(s)
6. Model number(s)
7. Age of the property
8. Location of the propertyB. The Requisition to Purchase is then forwarded to the Purchasing Department. If the transaction is approved by the Purchasing Department, an FSU Purchase Order will be produced. The department should ensure that the property decal and all other references to FSU Property are removed or destroyed at the time the property is released to the vendor.
C. If the trade-in of major accountable property is not properly detailed on an FSU purchase order, the department Property Manager must sign an Accountability Release Form (AR212), attach documentation to support the trade-in (i.e., memo from the receiving vendor which confirms the serial number of the trade-in and details the trade-in allowance), obtain the signature of the Dean or Director and forward the form to Property Accounting Services. If sufficient documentation cannot be obtained to support the trade-in, the item should be treated as lost or unaccounted for in the annual inventory.
D. Major accountable property may not be traded-in for expendable materials or other non-OCO items.
University capital assets consist of land, buildings, infrastructure and other improvements, furniture and equipment, library resources, works of art and historical treasures, construction in progress, and other capital assets. These assets are capitalized and recorded at cost at the date of acquisition or at estimated fair value at the date received in the case of gifts and purchases of State surplus property.
Additions, improvements, and other outlays in excess of $1,000 that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. The University has a capitalization threshold of $1,000 for all tangible personal property and $100,000 for buildings and other improvements.
Depreciation is computed on the straight-line basis over the estimated useful lives of the following estimated useful lives:
• Buildings – 10 to 50 years
• Infrastructure and Other Improvements – 12 to 50 years
• Furniture and Equipment – 3 to 20 years
• Software – 5 years
• Library Resources – 10 years
