| VOLUME: I |
POLICIES RELATED TO ACCOUNTING ADMINISTRATION |
| SUBJECT: |
Screening of Requisitions for Federally Funded Capital Equipment |
| SOURCE: |
Office of Management and Budget (OMB) Circular A-110 |
| DATE ISSUED: |
July 1992; Revised January 1996; Revised February 2007 |
| POLICY NO.: |
I-260 |
| RATIONALE: |
To avoid duplication and unnecessary capital equipment purchases. |
| POLICY: |
Requisitions for federally funded capital equipment will be screened for compliance prior to issuance of a purchase order. The guidelines and responsibilities for completing the screening requirements are listed as follows:
A requisition for federally funded capital equipment having a unit cost of $24,999 or less need not be screened.
A requisition for federally funded capital equipment having a unit cost of $25,000 or more will be screened by the requesting school. The school must attach
a memo to the purchase requisition stating that a like or similar equipment item is not available for use by the Project Director.
|
| DEFINITIONS: |
Federally funded capital equipment requisitions are those which will encumber funds provided by a federal sponsoring agency or by a pass-through agency
providing federal funds. The policy applies when federal funds support the full amount of the purchase or any portion thereof.
Screening is the process of reviewing inventory lists of existing capital equipment before purchasing new items. Its purpose is to avoid the purchase of new equipment which would duplicate existing equipment available to a project, promote shared use of existing equipment, and free up Federal funds for other uses.
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| PROCEDURE REFERENCE: |
FMS provides tools which enable departments and campuses to search the university capital asset data base for like equipment before federal funds are used to acquire said equipment. Searches may be accomplished through utilization of the inquiry search tools of the university Financial Information System, or through departmental inventory searches available in the IUIE reporting environment.
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| CROSS REFERENCES: |
For more detail and definition on this policy, refer to the Indiana University Capital Asset Manual, Accounting for Assets at Indiana University, distributed by the FMS.
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| RESPONSIBLE ORGANIZATION: |
Financial Management Services |
