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VOLUME: I POLICIES RELATED TO ACCOUNTING ADMINISTRATION
SUBJECT: Off-Premise Equipment Control
SOURCE: Financial Management Services
DATE ISSUED: October 1990, Revised July 2002
POLICY NO.: I-140
RATIONALE: To control movable capital equipment taken off university premises (other than vehicles).
POLICY: Equipment removed from university premises for a period of thirty-one (31) days or more must have appropriate approvals signified by completion of an Equipment Loan Return Document in the Financial Information System, or the equivalent paper Equipment Loan Form. Paper froms will be maintained on file at the Campus Capital Asset Office.

Responsibilites of the organization for loaned equipment are 1) performing the physical inventory of the equipment. 2) tagging the equipment before it leaves the premises. 3) making the necessary arrangements to insure the equipment. If the organization waives insurance coverage and there is a loss, the organization is liable. 4) paying insurance premiums. 5) keeping accurate inventory records of equipment on loan for a period less than thirty-one days.

The responsibilities of the borrower are: 1) timely return of equipment and the completion of an Equipment Loan Return document. 2) Obtain proper approval for equipment on loan. If the borrower takes the equipment without proper authorization and there is a loss, the borrower will be personally responsible for replacement of the equipment.

Approval:

The fiscal officer, account manager or delegate.

Equipment Loan Request Documents must be renewed every two years, until the equipment has been returned to the campus premises. This renewal includes the full process of approvals as outlined above.

Equipment Loan Request Documents must be renewed every two years, until the equipment has been returned to the campus premises. This renewal includes the full process of approvals as outlined above.

DEFINITIONS: Capital moveable equipment is personal (a generic term, as contrasted with “real”) tangible property having an acquisition value of Five Thousand Dollars ($5,000) or more and a normal life expectancy of greater than one year.

Off premise refers to equipment which is in the control of a single faculty/staff person, and the equipment resides at a location which is not directly associated with the university.

PROCEDURE REFERENCE: Departments should contact the Risk Management Department to inquire about insuring equipment being taken off university premises.

Indiana University Capital Asset Manual, Accounting for Assets at Indiana University, URL: http://www.fms.indiana.edu/cams/Manual/Manual.asp distributed by Financial Management Services.

CROSS REFERENCE: See Accounting Administration Policy I-270, Ownership of University Capital Assets.
RESPONSIBLE ORGANIZATION: Financial Management Services


Comments: vpcfo@indiana.edu
Copyright 2000, The Trustees of Indiana University