Moveable Equipment Inventory Brown Bag February 11 2009

Moveable Equipment Inventory Brown Bag February 11, 2009 Bob Marchitto Manager, Moveable Equipment Inventory 432 -3062, mei. admin@yale. edu

Agenda 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Definition of equipment Fabricated equipment Process for moveable equipment determination Procedures for MEI qualification Maintaining an accurate MEI Disposal of moveable equipment Transfer, Release, and Sale of ME Moveable equipment biennial inventory Moveable Equipment Quality Assurance Program Future enhancements to MEI References

Definition of Equipment Yale University defines equipment (moveable and fixed) as: • Tangible • Non-expendable • Has a useful life of greater than one year, and • Has an acquisition unit value equal or greater than $5, 000 (capitalization threshold)

What is not moveable equipment? • Equipment or furniture attached or secured to a building. This is considered fixed equipment and becomes part of the building’s cost. • Equipment with an acquisition cost under $5, 000 is considered noncapital equipment, which is expensed and not depreciated. • Leased, on loan or rented equipment.

Fabricated Equipment fabricated at the University will be capitalized and included in the MEI if the following criteria are met: • The resulting equipment has a final cost at least equal to the capitalization threshold; and • The estimated useful life is greater than one year.

Equipment Expenditure Types Equipment Expenditure Type range: • 881100 through 881800, excluding 881400 (Fixed Equipment) • 882600 Fabricated Equipment

Process for MEI Determination 1. Equipment purchases made by departments must be charged to the correct equipment expenditure type. 2. Charges for equipment from both Accounts Payable and General Ledger (JSAs) are “uploaded” into the MEI system Holding file. General Ledger loaded on a monthly basis, Accounts Payable charges loaded every other week.

Procedures for MEI Determination (cont’d) 3. All relevant information (purchase orders, invoices) concerning equipment purchases loaded into the MEI Holding file are reviewed for proper classification based on MEI criteria. 4. If a purchase does not meet the moveable equipment criteria, a JSA to reclassify the charges is made by GCFA.

Procedures for MEI Determination (cont’d) 5. If equipment is determined to be included in the MEI, it is loaded from the MEI Holding file into the main MEI database where it is capitalized and depreciation expense is recorded. 6. A number is assigned, and the tag and tag form is mailed to the department (Usually takes approx. 6 weeks from purchase). 7. The department is responsible for tagging the piece of equipment.

Maintaining an Accurate MEI • Each University department should maintain an accurate inventory of its equipment at all times. • Federal regulations require that an inventory of equipment is taken every two years. • It is the responsibility of GCFA to maintain a Moveable Equipment Inventory listing equipment by department in order to document depreciation of University purchased equipment.

Maintaining an Accurate MEI (cont’d) • Departments must notify GCFA of any change in status of equipment. This includes disposal, change in jurisdiction, location, etc. – Depts. with online access can make changes directly. – Depts. without online access must fill out a “Change in Status” form #4209 FR. 02, located on the University’s Policy and Procedures website, and send it to GCFA. Note: Departments may request Oracle on-line access to the MEI database by contacting GCFA at mei. admin@yale. edu

Maintaining an Accurate MEI (cont’d) • Oracle MEI online user instruction manuals may be obtained from GCFA. On site departmental training is also available. For more information contact us at mei. admin@yale. edu.

Disposal of Moveable Equipment • • Departments are responsible for the equipment purchased within the department and for its eventual disposal. A department disposing of moveable equipment must use the appropriate deletion code provided online in Oracle or on the “Change in Status” form.

Transfer, Release or Sale of MEI Equipment • Yale University permits the sale or transfer of equipment as appropriate from one dept. to another or the release (with Provost’s approval) to another institution of equipment to which the University has title. • Equipment purchased with sponsored project funds may not be sold from one dept. or institution to another.

Transfer, Release or Sale of MEI Equipment (cont’d) • Equipment purchased on active federally funded awards should be made available to other University PIs for their use as long as such use does not interfere with the work for which the equipment was originally acquired. – First preference shall be given to other projects by the awarding federal agency. – Second preference to projects funded by other federal agencies. – Lastly, to other sponsoring agencies if authorized by the awarding federal agency. The same is true of non-federal sponsors unless otherwise prohibited in the award agreement.

Transfer, Release, or Sale of MEI Equipment (cont’d) • Equipment purchased with federally sponsored project funds and having a non-active/closed award must be made available to other PIs or depts. of the University at no cost (other than to disconnect and move). Such equipment may be sold or released to another institution with Provost’s approval. • Equipment to which the University does not have legal title may not be sold, transferred, or released to other institutions or third parties without the written approval of the owner/sponsor.

Transfer, Release or Sale of MEI Equipment (cont’d) Equipment purchased with federal funds: • May not be transferred to a for-profit institution • May be required to be returned to the sponsor. Federal Policy states the federal government has 120 days subsequent to the expiration date of the award to request equipment be returned. – If a PI and his/her award transfers to another academic institution, equipment purchased during the life of the award segment may be transferred to the new institution in accordance with the terms and conditions of the award.

Transfer, Release, or Sale of MEI Equipment (continued) Equipment funded by a sponsored project in which the sponsored project is no longer active may be released to the PI at another institution only if: 1. The Department Chair certifies that the equipment is not needed by other Yale investigators in the conduct of research at the University. 2. Approved by The Office of the Provost.

Transfer, Release or Sale of MEI Equipment (cont’d) • Equipment purchased in whole or in part with University funds must remain at the University, unless the Dept. Chair certifies it is of no further use to anyone at the University. It may be transferred to the new institution. • The new institution may be asked to pay fair market value, including shipping costs, for the equipment originally purchased with the University funds.

Transfer, Release or Sale of MEI Equipment (cont’d) • Equipment transfers requiring Department Chair or Provost approval should be forwarded to Grant and Contract Administration (GCA) for a determination of title to the equipment, and completion of the appropriate documentation required by the University and the awarding agency for release or transfer of title, if appropriate.

Transfer, Release or Sale of MEI Equipment (cont’d) • If the requirements of the sponsor are more restrictive regarding the transfer of equipment these will supersede University policy.

MEI Biennial Physical Inventory • A Physical Inventory is federally mandated to be completed at least once every two years. • Each department is responsible for conducting a biennial inventory and confirming completion with GCFA. • Departments with online access can update information directly in the Oracle MEI database. Departments not online will send any equipment status revisions to GCFA.

MEI Quality Assurance Program • To ensure good stewardship of our moveable equipment, Yale University instituted the MEI Quality Assurance Program in October 2007. • Each month four departments are chosen for review. Five pieces of equipment per department are reviewed for: 1. Proper tagging 2. Correct location 3. Correct Jurisdiction A scoring system has been established and results appear in the monthly metrics for process and performance review.

Future Enhancements to MEI • New upgraded foil tags containing a unique bar code for each item. • Incorporating a bar code scanning technology in the Physical Inventory and Quality Assurance procedures. • Development of a procedure on the Fabrication and Capitalization of Equipment.

References University Equipment Policy 4209 • http: //www. yale. edu/ppdev/policy/4209. pdf Fixed vs. Moveable Equipment • http: //www. yale. edu/ppdev/Guides/gc/4209 GD. 01 Fixedvs. Movable. Equipment. pdf MEI Change in Status Form • http: //www. yale. edu/ppdev/forms/purchase/MEIChange. In. Status. Form. pdf OMB Circular A-110 • http: //www. whitehouse. gov/omb/circulars/a 110. html#34

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