Fixed Assets

• 8.01 Equipment Use/University Property
   
• U.S. Government-Owned Property Control Manual

The threshold for capitalization of equipment purchases increased in FY 2006 to $5,000 from $2,000; reclassifications were completed by fixed asset staff. Currently departmental staff should determine equipment object codes based on the following guidelines.

• Object Code 71250 – all equipment items or systems (group of items working together), purchased for the amount $5,000 or more, should be capitalized. Costs of freight/shipping, installation and training should be included with the equipment item in determining its threshold amount.
• Object Code 63150 – to be used for electronic equipment costing between $500 and $4,999, items such as computers, electronics, AV, scientific and musical instruments should be charged to this object code. Additional costs of shipping, installation and training should be included.
• Object Code 63110 – to be used for non-capitalized equipment purchases less that $5,000 that do not qualify as electronic equipment (per above). Additional costs of shipping, installation and training should be included.

Examples:

• Example A: Dept. X purchases a new copier. The invoice cost is $4,600 and delivery is charged at additional $200. An electrician was called to update the power outlet required for the new copier at a cost of $150. The copier vendor charged $150 to train departmental personnel to use the copier. Total cost of the capitalized copier is $5,100 so all items should use object code 71250.
• Example B: Dept. Y purchases a new projector for $1,800. A ceiling mount that cost $100 was also purchased. Both of these invoices would be charged to expense object code 63150.
• Example C: Dept Z purchases a storage shed to store athletic equipment. The constructed cost of the shed is $2,400. This invoice would be charged to object code 63110.

Disposal of Surplus Property

Departments/colleges are prohibited from conducting their own sales of surplus property and from placing "sale" advertisements or from disposing of items independently that may be deemed to have value.  

• Departments shall notify the Accounting Manager in Treasury of items being declared "surplus" by completing a Transit/Surplus Form and, if disposing of capital assets or equipment that have hard drives, an Equipment Inventory Deletions Report.  Both forms can be found on the Fixed Assets web page. Information to be included: the description of the property, its UNI property tag number (if applicable), condition, color or finish, approximate age, location, and other descriptive information.
   
• The Accounting Manager will notify Facilities Services of any surplus furniture. Facilities Services may reserve furniture for use in renovation projects or release it to the Accounting Manager.
   
• Surplus property released to the Accounting Manager will be matched with existing requests. If there are no existing requests, the Accounting Manager will periodically advertise items in appropriate campus publications, including university web pages and InsideUNI for purchase by, or transfer to, other university departments. If a transfer is arranged, net receipts will be deposited to the selling department's sale of equipment account.
   
• If the property has value but is not needed by another campus department, the Accounting Manager will determine the appropriate means to sell the property, in most cases this will be by selling the property at the UNI Surplus Store sales held every 1st and 3rd Thursday of the month at UNI Warehouse, or sell online at PublicSurplus.com or other approved online sites.  These sales are advertised through the Surplus Store email list.  In special cases the Accounting Manager may determine that a public auction is a more appropriate avenue to dispose of the property, which will be advertised in appropriate publications, local newspaper, university webpages, Surplus Store email list and Inside UNI.  The net proceeds of the sale will be deposited to the Sale of Equipment account for general university credit and use. In the case of auxiliary organizations, net proceeds will be deposited to their restricted accounts.

Alternate Methods of Disposal of Surplus Property

The Procurement Services Department and Accounting Manager are responsible for assisting departments in identifying disposal alternatives (i.e. Trade-ins, used components or parts, scrap, etc.), establishing relative values and recommending economically appropriate actions. The Asst. Vice President for Finance and Operations must authorize any alternate method of disposal of university property.

Disposal of Scrap Material

The Accounting Manager should be consulted on the sale of scrap material such as waste paper, non-precious metals, automobile batteries, and salvaged building materials. If necessary the Procurement Services Manager will be consulted for bids. Normally at least two competitive quotes will be obtained, based on quantity of scrap available. Net proceeds shall be credited to the department selling the scrap material.

Disposal of Library Materials

The library periodically eliminates duplicate, antiquated, or donated material inappropriate for the collection. The Accounting Manager will assist in the disposal of library materials by a sale or other appropriate disposition. Net proceeds shall be credited to the library.

Public Sale of Equipment

The university from time to time offers equipment and other goods for public sale that have exhausted their useful life at the university. The public sale of goods occurs in different venues depending on what is being sold. Formats for sale include live auctions, online auctions, tag sales and sealed bids.

Online Auctions

UNI lists most items for auction online at publicsurplus.com. Please visit this site to view items and register to buy(bid) if interested.

UNI has decided that all surplus computers will have all the hard drives and all other data storage devices removed before they are offered for sale to the public. The store has moved to the south side of Warehouse #1 (same bldg) near the southeast corner.

Per details provided on publicsurplus.com items for sale may be viewed at the U.N.I. surplus store is located at 2412 West 27th Street in Cedar Falls Iowa. The building is a large warehouse that is light gray in color. It is located west of the McLeod center on 27th Street and on the other side of the street. It is just west of the University Mills apartment complex on the South side of 27th street. The store is on the back side of the building at the South East corner.

Continue to watch for more items for auction on www.publicsurplus.com.

Forms

• Equipment Inventory Deletions Form
   
• Transit/Surplus Form (PDF)
   
• Transit/Surplus Form (XLS)

University property is defined as any item of tangible personal property which is possessed by a university department, whether operable or inoperable, purchased or donated. Use of university property is restricted to purposes related to the university's mission, whether the property is physically located on or off campus. State law forbids the lending of university-owned property to individuals or organizations not connected with the university. 

Off-Campus Use of University Property

• Equipment may not be removed from campus until a university property tag has been affixed and Authorization for Off-Campus Use Form is completed.
• Off-campus use of university property may be authorized after completion of the Authorization Form for Off-Campus Use. The individual checking out university property is responsible for completing the form.
• Approval must be given by the department head, dean of the college or administrative officer before property can be removed from campus. The Accounting Manager is responsible for maintaining Authorization Forms and will request updated authorizations at appropriate intervals.
• Off-campus use of property may be authorized for a period of up to 12 months. Subsequent periods not to exceed 12 months must be authorized by completing a new authorization form. Approval may be revoked at any time at the discretion of the individual giving the approval, the supervisor of the requestor or a university official.
• Persons approved to use university property off-campus will be responsible for property damage due to misuse or neglect.
• Departments such as School of Music or the Library may be exempted from completing the Authorization Form. Laptop computers checked out from IT for international travel are also exempt from completing the Authorization Form.
• Individuals that have checked out university property for off campus use may be required to return property to campus for any physical inventory.

Surplus Property

Department heads may declare property as excess to their department. Departments are encouraged to attempt to transfer that property within their college or division at no cost prior to declaring it “surplus”. Transfers must be reported by completing Transit/Surplus Form and delivering to the Accounting Manager.

Trade-Ins of Surplus Property

If a department is replacing an item with an identical or like item, trade-in should be considered. The purchasing staff is responsible for the purchase of new equipment and will review disposal alternatives. New purchases should be bid with and without a trade-in to determine the value or marketability of a like item. If the item has good marketability, the value can be determined by the purchasing staff and the owning department and then compared to trade-in value, prior to any decision on its disposition. Purchasing staff will explore alternatives and make recommendations. If trade in is accepted, the asset tag number and trade in value is communicated to the Accounting Manager.

Fixed Assets
(Located in 122 Lang Hall)

Mark Fober-Fixed Assets; Treasury
Phone: 319-273-3824
Email: mark.fober@uni.edu