Capital Equipment Administration: Transfers
Equipment Custody Internally Transferred Between Departments
A department (or DeptID) is responsible for all of the equipment items that it acquires. Inventory Services creates a record of a capital or sponsor-furnished equipment asset after the equipment item is acquired by a department. The record lists the current department with custodial responsibility for the equipment item, which is based on the acquisition information of the equipment item.
- Determine the type of transfer being initiated
There are two types of asset transfers allowed - Custodial and Financial
- Custodial Transfers occur when the capital equipment asset physically moves from one location to another. An example would be a microscope no longer used or needed in the Chemistry Department and transferred to the Physics Department.
- Financial Transfers occur when the capital equipment asset was purchased on the wrong chartstring and needs to be transferred to the correct chartstring.
Allowable Guidelines / Criteria:
- Negative expenses should not be created. Expenses must be moved within the fiscal year it was originally recorded.
- Transfers to Plant Funds must be for a significant capital infrastructure project defined as $5 million or greater
- Transfers to the Plant Funds must receive approval from University Budget & Finance
- Adhere to Administrative Policy: Managing University Capital Equipment and any departmental policies related to capital equipment purchasing, transfers and disposals
- Initiate and prepare the transaction
A department may transfer custody of a capital equipment asset to another department. If a department wishes to transfer custody of a capital equipment asset, the transfer must be approved and documented on a completed and signed form UM 1556: Capital Equipment Asset Transfer Form, prior to the physical movement of the equipment item.
- The custodial department identifies a capital equipment asset that is no longer needed. If no bar-coded University ID number tag is affixed to the equipment item, then the custodial department must contact Inventory Services for assistance at firstname.lastname@example.org.
- The custodial department finds a target department that has a need for the equipment item.
- The custodial department completes its portion of form UM 1556: Capital Equipment Asset Transfer Form, and routes it to the target department.
- The target department receives and reviews the completed form UM 1556. If the transfer is approved, then the target department signs its portion of the completed form UM 1556 and forwards it to Inventory Services. If the transfer is not approved, then the target department returns to the custodial department the completed form UM 1556 with an explanation of the denial.
- Inventory Services will process the transfer and return the completed form to the departments.
- The equipment asset must be moved to the new custodial department.
- Determine status of purchase invoice.
- Invoice has not been vouchered: Department completes a Purchase Order Change Order to update purchase order with correct chartstring information.
- Invoice has been vouchered:
- Department completes Form UM 1556: Capital Equipment Asset Transfer Form. Department obtains all required approvals
- Department sends completed form to Inventory Services for processing
- Inventory Services & Accounting Services will complete transfer including any required journal entries monthly.
Custodial Transfer - Non-capital Equipment
- The custodial department identifies a non-capital equipment asset that is no longer needed.
- The custodial department manages the non-capital equipment asset according to the policies and procedures of the department's Resource Responsibility Center (RRC).