UMES Administrative Affairs Manual
A. Purpose. Accountability for capital assets is necessary for the calculation of Federal indirect cost recoveries, determination of insurance coverage and the physical care and custody. This policy sets forth those provisions necessary to control the acquisition, and the disposal of capital equipment at UMES.
1. Responsibility for the proper use, care, control and reporting of capital equipment is vested in the department chair or unit director. The Comptroller is responsible for determining what shall be classified as capital equipment, maintaining the capital equipment information system and providing the forms to the departments or units for tagging and accounting for the equipment.
2. Definition of Capital Asset: Capital assets means any equipment item or furnishing having a probable useful life in excess of one year and procurement cost (purchased equipment), or a fair market value (gifts, bequests, or donations) $500.00 or more per unit, such as furniture, machinery, instruments and other apparatus.
3. Acquisition of Capital Assets
The control over the capital asset inventory must begin with the initial requisition process. Control is established at this point through the following policy provisions:
A. Capital Asset Purchases: Preparation of all requisitions for capital assets shall include the following information:
Preparation of all requisitions for capital assets shall include the following information.
1. The proper capital asset sub code must be assigned to every capital asset to ensure that such assets are properly capitalized. A current listing of all capital asset sub codes is provided by the Comptroller (see Appendix A).
2. The requisitioning department shall clearly indicate on the requisition the specific school, department or subdivision thereof, in which the custodianship for the asset will reside. The custodian department may not always be the same as the requisitioning department. Additionally, the requisition department shall indicate on the requisition the building and room number into which the asset will be placed, if such information is known.
3. A clear, concise description of the requisitioned asset must be provided on the requisition to facilitate subsequent identification of the asset. Brand names or brief descriptions do not always provide adequate information about an asset. this description will then become part of the asset's record in the physical assets inventory system.
4. The requisitioning department must provide, directly on the requisition, a listing of the account numbers to be charged and their respective percentages for al split-funded assets. This information will provide the property accountant with the capability to report all assets on the inventory data base by fund source as required by the Federal Government.
B. Capital Assets Gifts, Bequests, Donations, Transfers From Other Institutions.
All capital assets acquired through any means other than the normal procurement procedures shall be reported to the Property Accountant, Comptroller's Office by completing form Gifts, Bequests, Donations, Transfers From Other Institutions of Capital Assets (See Appendix C). This form is to be completed within five working days of the receipt of the asset. A photocopy of each acquisition form prepared should be retained by the preparer for subsequent audit verification.
4. Disposal of Property
A. Surplus Property
Periodically, the departments will find equipment and supplies that are no longer of value to their operation (i.e. no longer needed, inoperable, or being replaced with new equipment or supplies). These surplus items shall be reported to the Purchasing Section and subsequently removed from the department. The requirements set for the State of Maryland are incorporated in the following procedures.
1. Items declared surplus are to be listed on the surplus Property Disposal form (See Appendix B) Forms may be obtained by contacting the Property accountant on Ext. 6100. Departments are to complete the form, obtain the appropriate Dean's signature and return the form to Purchasing and a copy to the Property Accountant, Comptroller's Office.
2. Upon receipt of the Surplus Property Disposal Form, Purchasing will, after physically examining the equipment, determine if it is re-saleable. If this is the case, Purchasing will attempt to sell the equipment within the University, competitive written quotations from sources outside the University will be sought and an award made to the highest bidder. Exception: The University of Maryland will not consider request s for gratuitous disposition or sale of Sate/University owned property to State of Maryland or University of Maryland officials or employees. (General Services Physical Inventory Manual, Sec. IV, under 5- Policy a).
If a sale is made within he university, the department twill be notified by Purchasing and the necessary interdepartmental transfer of funds from (ADM 101) is to be completed by the concerned departments.
4. In the case of an outside sale, the bidder offering the highest bid will be notified in writing of the University's acceptance and is requested to submit a certified check in the amount offered. Upon receipt of the check, the awardee will be sent a letter, signed by Purchasing, authorizing the bidder to remove the equipment from the University. This letter also serves a receipt of payment and a copy is forwarded to the concerned department and to the Property Accountant.
If the item cannot be sold interdepartmentally, to outside sources, or as a trade-in on new equipment, Purchasing will make arrangements for the item to be removed from the department and stored in the University warehouse until such time as it can be disposed of. Physical Plant Department will be responsible for security until the equipment is approved for disposal by Purchasing.
6. Non-profit or Charity Organizations.
If it is determined by the concerned department and Purchasing that the nonsaleable items can be donated to non-profit or charity-type organization, those organizations must be officially registered as such in the State of Maryland and must submit a letter identifying the surplus item and requesting the donation.
7. Dismantling for Parts.
Any property which is currently included in the custodial department's inventory records which has been determined to be used as supply of replacement parts for other assets must be reported as a disposal to the Property Accountant. See Appendix D for form to be submitted.
B. Thefts or Unlocated Property.
Any capital assets which have been stolen from the custodial department must be reported immediately to Police Services by calling ext. 6590. All asset disposals falling into this category must be supported by a completed policy report, a copy of which must be forwarded to the Property Accountant along with the Capital Assets Deletion Form (See Appendix D).