Equipment - BC*

Activity: Equipment - BC
Financial Policy:

FIN-ACC-I-140, Off-Premise Capital Equipment Control

Related Policies:

FIN-ACC-I-150, Capitalization of Movable Equipment
FIN-ACC-I-170, Capital Movable Asset Physical Inventories, Tagging and Location Changes
FIN-ACC-I-180, Depreciation of Capital Assets
FIN-ACC-I-270, Ownership of University Capital Assets
III-70, Equipment Transfers (equipment purchased from contract and grant funds)

Additional Forms:

Forms and Certificates

Things to Know:

FMS Capital Asset Management System Website
FMS Capital Standard Operating Procedures (CSOP)

ALL FUND GROUPS

Option 1: Equipment

Please refer to Standard Operating Procedure, CSOP 8.0 Capitalization of Movable Equipment for guidelines relating to the capitalization of moveable equipment, and object code assignment.

Option 2: Capital Equipmen

Capital equipment purchases are equipment items with an acquisition value of at least $5000.00, and a useful life of one year or greater.

The account number that is used to purchase a capital asset dictates the object code that should be chosen on the requisition. To ensure the correct object code is used, answer the following questions concerning the account number that purchased the asset.

1.  Is asset being purchased on a grant account?

  • NO – Use university funded object code.
  • YES – Go to question #2.

2.  Is the sub-fund group code of the account begin with FED*?

  • NO – Go to question #3.
  • YES – Go to question #4.

3.  Is the account’s federal pass thru indicator “Y”?   

  • NO – Use university funded object code.
  • YES – Go to question #4.

4.  Does the granting agency hold title to the asset?

  • NO – Use federally funded object code.
  • YES – Use federally owned object code.


University Funded Object Code

A university funded object code should be used for assets purchased by non-grant accounts.

7000    Capital Equipment
7015    Computer Equipment

Federally Funded Object Code

To determine if a federally funded object code should be used on a purchasing requisition or financial document if the account has either of the following attributes:

Account sub-fund group code: If the sub-fund is like (FED*) then a federally funded object code should be used. To determine the sub-fund group code, go to Account Lookup in KFS and enter the account number and search. The sub-fund group code is presented in the search results. If the sub-fund is like “Fed*” then use a federally funded object code.

Federal Pass thru Indicator: For assets purchased on federal pass thru funds, the federal pass thru flag on the account/award should be checked. When the “federal pass thru flag” is set to “Y”, a federally funded object code should be used. To view the subfund group code and the federal pass thru flag go to IUIE and run the “Find Federal Pass Thru Indicator” report for the chart and account. The report can be found in Kuali Financial/Chart of Accounts file folder. An example of the report output is below:

Chart Account Federal Pass Thru Indicator Sub Fund Group Code
BL 4025900 Y HIEDUF

7030    Capital Equipment – Federally Funded
7035    Computer Equipment – Federally Funded

Federally Owned Object Code

A federally owned object code should be used when the granting agency holds title to the asset. This can be determined by a review of the Award Summary report sent to the organization. The Award Summary report is created upon setting up the award and is normally sent to the fiscal officer, or delegate, and the PI.

7031    Capital Equipment – Federally Owned
7036    Computer Equipment – Federally Owned

On the Details & Dates panel, there is a subpanel called “Sponsor” which shows the sponsor ID and name, as well as the pass-thru or “ Prime Sponsor”. The presence of a CFDA number is also an indicator of a federal project.

Ownership information may also be obtained from the KC Award in Kuali Coeus (KC) Grants. The award number can be found in KFS in the awards tab of the account lookup. Use this number to find the Award in Kuali Coeus (KC) Grants. After opening the award go to the “Comments Notes, and Attachments” tab. If the grant or agency holds title, it should be noted here. If no information is available, please contact the Office of Research Administration.   

Other Owned Object Code

Other Owned should be used when the title to the equipment is not vested with IU. An example would be a purchase funded by the State of Indiana, with the equipment returned to the State agency once the project has closed. To determine if an Other Owned object code should be used, follow the same steps in the Federally Owned object code above.

7032    Capital Equipment – Other Owned
   
The Office of Research Administration will assign a federally owned or other owned object code when appropriate. that is used to purchase a capital asset dictates the object code that should be chosen on the requisition. To ensure the correct object code is used, answer the following questions concerning the account number that purchased the asset.

1.  Is asset being purchased on a grant account?

  • NO – Use university funded object code.
  • YES – Go to question #2.

2.  Is the sub-fund group code of the account begin with FED*?

  • NO – Go to question #3.
  • YES – Go to question #4.

3.  Is the account’s federal pass thru indicator “Y”?   

  • NO – Use university funded object code.
  • YES – Go to question #4.

4.  Does the granting agency hold title to the asset?

  • NO – Use federally funded object code.
    • ·YES – Use federally owned object code.


University Funded Object Code

A university funded object code should be used for assets purchased by non-grant accounts.

7000    Capital Equipment
7015    Computer Equipment

Federally Funded Object Code

To determine if a federally funded object code should be used on a purchasing requisition or financial document if the account has either of the following attributes:

Account sub-fund group code: If the sub-fund is like (FED*) then a federally funded object code should be used. To determine the sub-fund group code, go to Account Lookup in KFS and enter the account number and search. The sub-fund group code is presented in the search results. If the sub-fund is like “Fed*” then use a federally funded object code.

Federal Pass thru Indicator: For assets purchased on federal pass thru funds, the federal pass thru flag on the account/award should be checked. When the “federal pass thru flag” is set to “Y”, a federally funded object code should be used. To view the subfund group code and the federal pass thru flag go to IUIE and run the “Find Federal Pass Thru Indicator” report for the chart and account. The report can be found in Kuali Financial/Chart of Accounts file folder. An example of the report output is below.

Chart Account Federal Pass Thru Indicator Sub Fund Group Code
BL 4025900 Y HIEDUF

7030    Capital Equipment – Federally Funded
7035    Computer Equipment – Federally Funded

Federally Owned Object Code

A federally owned object code should be used when the granting agency holds title to the asset. This can be determined by a review of the Award Summary report sent to the organization. The Award Summary report is created upon setting up the award and is normally sent to the fiscal officer, or delegate, and the PI.

7031    Capital Equipment – Federally Owned
7036    Computer Equipment – Federally Owned

On the Details & Dates panel, there is a subpanel called “Sponsor” which shows the sponsor ID and name, as well as the pass-thru or “ Prime Sponsor”. The presence of a CFDA number is also an indicator of a federal project.

Ownership information may also be obtained from the KC Award in Kuali Coeus (KC) Grants. The award number can be found in KFS in the awards tab of the account lookup. Use this number to find the Award in Kuali Coeus (KC) Grants. After opening the award go to the “Comments Notes, and Attachments” tab. If the grant or agency holds title, it should be noted here. If no information is available, please contact the Office of Research Administration.   

Other Owned Object Code

Other Owned should be used when the title to the equipment is not vested with IU. An example would be a purchase funded by the State of Indiana, with the equipment returned to the State agency once the project has closed. To determine if an Other Owned object code should be used, follow the same steps in the Federally Owned object code above.

7032    Capital Equipment – Other Owned
   
The Office of Research Administration will assign a federally owned or other owned object code when appropriate.

If you have any questions regarding how a purchase should be handled (e.g., if it should be considered a capital asset), please email capasset@iu.edu.

Training: FMS CAMS Video Tutorials

*BC - Budget Construction