Asset Management

Asset Management reviews all activity hitting the major equipment account codes, monthly.  

• Any assets meeting the capitalization threshold are capitalized by Asset Management.  Asset Management records the asset addition, depreciation, and the disposal entries.  
• Any transactions that were inadvertently coded by a department to major equipment are reclassified. The department will receive an email from Asset Management if a reclassifying entry is required.  
• Asset Management sends a major equipment tag to the department.

Purchases via UND Marketplace

• Code the major equipment to an account code beginning with 69XXXX.
• If the name of the asset is not stated on the requisition, make a comment on the requisition listing the name of the asset.  
• The asset tag will be sent to the individual responsible for the department’s annual major inventory submission at the time the final invoice is paid and hits the general ledger.  If someone other than the department inventory contact should receive the tag, make a note on the requisition.
• The custodian department of the asset is the department funding the purchase.  If this is not the correct custodian department, make a note on the requisition of the custodian department number.  
  • The custodian department is the department who is responsible for the annual inventory of that piece of equipment.  
• The asset location is the location listed as the shipping address on the requisition. If this is not the correct location of the asset, make a note on the requisition of the asset location. 

Traded Major Equipment

If a department trades a piece of major equipment for a new piece of equipment:

• Make a note on the requisition of the new piece of equipment or on the face of the invoice that a trade occurred. Include in the note the major equipment tag number traded. 
  • When the new asset is capitalized by Asset Management, the old asset will be removed in a trade.  No surplus form is required if this processed is followed.
  • If the department does not notify Asset Management of the trade at the time of the acquisition of the new asset, the department must submit a surplus property form to remove the old asset. Note! This is not the correct process for completing a trade. See previous bullet point. 
• The vendor should include on the invoice the value given for the traded equipment (the amount that the new asset was reduced due to the trade).
• The coding of the purchase to a 69 account code, the asset name, sending of the asset tag, the custodian department, and the asset location are the same as listed above in the section, “Department purchases a piece of major equipment via UND Marketplace.” 

Donated Assets

If the department receives a donated piece of equipment:

• The department must work with the UND Alumni Foundation regarding the gift. 
  • Department will receive a copy of the completed Gift In Kind form from the UND Alumni Foundation. 
• The UND Alumni Foundation will provide Asset Management with a copy of the Gift in Kind form which includes the gifted asset information and the associated fair market value.  
• Asset Management may contact the department listed on the Gift In Kind form to retrieve any additional details needed related to the donated asset.  A major equipment tag will be sent to the department at that time. 

Missing Asset Tags

If a department purchased a piece of equipment meeting the capitalization threshold, but has not received a major equipment tag for the asset:

• Ensure that the asset was coded to a major equipment account code. (An account beginning with 69XXXX).
• The tag will be issued when the final invoice is paid and hits the general ledger as an expense. This review is done monthly, expect approximately a 4 week delay between the time the final expense hits the ledger and the time the department receives the associated major equipment tag.

Incorrect Account Codes

If the department purchased a piece of equipment that meets the capitalization threshold, but the department mistakenly coded it to minor equipment:

• Check to see what fiscal year the asset was purchased in. If purchased in the current fiscal year, submit a journal voucher to move the expense to a major equipment account code (an account beginning with 69XXXX).
• If purchased in a previous fiscal year, contact Asset Management UND.assetmanagement@UND.edu.
• If the department purchased several pieces of equipment that individually are less than the capitalization threshold, but when ordered together cost greater than $5,000, this is not major equipment.
  • Example, if a department purchased three computers and each computer had an acquisition cost of $2,000, the total cost to the department would be $6,000.  The unit price of $2,000 is less than the capitalization threshold of $5,000 and the computers would not be capitalized and should not be coded by the department to a major equipment account code.
  • If the department purchased one computer and the cost was $5,001, the computer would be capitalized and should be coded by the department to a major equipment account code.

Title to Equipment

If UND does not have title to the asset, the department should not code the equipment to a major equipment account code. If UND has conditional title, visit with Asset Management prior to coding the purchase.

When a department disposes of major equipment, they should follow the surplus property guidelines and they must complete a Major Equipment surplus property request. This process is handled by the Surplus Property division of UND Facilities.

Transfer of Major Equipment to a UND Department

If a department transfers a piece of major equipment to another department on campus, the department must complete an equipment transfer form which is handled by the Surplus Property division of UND Facilities.

When a completed item of fabricated equipment has an aggregate cost of $5,000 or more, is projected to be used in operations outside the original fabrication for more than one year, is expected to be a completed fabricated asset within two years from start date, and is considered property of UND, it can be capitalized as equipment.

• Fabrication requests must be submitted to Asset Management at least two weeks prior to the start date of the fabrication.
• A notice of completion of fabrication form must be filled out and sent to Asset Management at the completion of the fabrication.

Fabricated Equipment policy

Annual Major Equipment Inventory Procedures

Purchases via UND Marketplace

• Code the minor equipment to an account code beginning with 55XXXX
• If the minor inventory is deemed by the department’s CBO or financial lead to be risky or
  vulnerable to loss, place a minor equipment tag on the item.
  • Examples of items to place a minor equipment tag on: laptop, microscope, special
    department tools, etc.
  • Examples of items where a minor equipment tag would not be placed: office chair,
    bookshelf, desk, calculator, headphones, modular furniture, etc.
• Departments may request minor inventory tags by contacting UND.assetmanagement@UND.edu.

Minor Equipment Guidelines

• For purposes of insurance, it is the responsibility of each department to maintain an accurate and comprehensive minor equipment inventory spreadsheet to track minor equipment that the department would expect to recoup from insurance in the event of a loss.
  • The department’s internally maintained spreadsheet should include department number, building name, room number, description, and replacement cost. 
  • The department's internally maintained spreadsheet should list individually any minor equipment identified by the department as particularly at risk or vulnerable to loss.  
    • Any items identified as particularly at risk or vulnerable to loss should be tagged with a minor equipment tag.
    • The department should check with their CBO or financial lead regarding what items are deemed at risk or vulnerable to loss.
• If a department does not maintain a minor equipment inventory spreadsheet, the department is not insured for any loss on that equipment. 
  • Asset Management does not request or have copies of any department maintained spreadsheets.
• UND strongly encourages counting and valuing minor equipment inventory in groups.
  • For example, a standard office in the department may have minor equipment such as a desk, chair, file cabinet, phone, etc. with a total value of $5,000. If there are other offices like this in the area, it is fair to value each office like this one as $5,000.
    
  • The department should check with their CBO or financial lead to determine if they have instituted a division dollar value threshold for tagging minor equipment. There is no campus-wide dollar value threshold for tagging minor equipment.
• If a department uses a bar coding system, that system is independent of the current inventory system.
  • Keep in mind that many minor equipment
    items can be grouped for insurance purposes. Departments should tag inventory items that
    are risky or vulnerable to loss and must inventory minor equipment that is risky or vulnerable to loss. 
• Minor inventory located off‐campus permanently or primarily more than 50% of the time for
  seven consecutive days or more with a per unit or cumulative value greater than $2,500 (per off
  campus location site) should be listed separately on the department’s internally maintained
  spreadsheet and subtotaled with a location of “off campus” on the annual submission.
  • Ex: Martha has minor equipment at her remote work-site totaling $500. This does not
    need to be listed as off‐campus for insurance purposes, but the department is
    responsible for knowing where this minor equipment is located.
  • Ex: Matthew has minor equipment at his remote work-site totaling $2,600. This should be
    listed by the department as off‐campus for insurance purposes. If there are multiple
    people who meet this threshold, include in the same off‐campus grouping.

Sample minor Equipment inventory template

When a department disposes of minor equipment, they should follow the surplus property guidelines.  Minor Equipment surplus property requests are handled by the Surplus Property division of UND Facilities.

When a department transfers minor equipment to another UND department, they should follow any transfer guidelines in place by UND Facilities.  Equipment transfer forms are handled by the Surplus Property division of UND Facilities.

Annual Minor Equipment Inventory Procedures

Department Inventory Contact

All departments who have reported minor inventory in prior years have a department inventory contact. 

• If the minor equipment inventory contact changes for the department, please notify the CBO or financial lead in that area. 
  • If the department is unsure who the CBO or financial lead is in their area, please contact Asset Management.