IV:04:07 Equipment/Movable Property Inventory Control
This policy applies to movable equipment and not to supplies, fixed equipment, library books, or campus recreation equipment. Items such as built-in furniture, lights, plumbing fixtures, and so forth, are to be considered fixtures and a part of the building.
There are certain characteristics of "equipment" to which consideration should be given in making a proper determination; however, discretion is necessary in applying the definition in order not to classify equipment as items that probably should be treated as expendable supplies and material:.
Equipment generally retains its original appearance and shape with use which extends over a period in excess of three years, whereas materials and supplies usually change in appearance and shape as they are used and are consumed within a relatively short period of time.
Equipment is non-expendable. If the article is damaged or parts are worn out, it is usually more feasible to repair it than to replace it.
Equipment does not lose its identity through incorporation into a different or more complex unit.
Equipment is defined as items of a movable nature, having a minimum unit cost of $5,000.00, and having an estimated life of at least three years. Surplus property will be classified as equipment no longer usable to the department that has possession. Movable Property follows the definition of equipment with no minimum cost figure associated.
Ownership of property acquired by Middle Tennessee State University rests with the State of Tennessee where acquired by departmental fund, grants, or by gifts. The property officer will maintain inventory records and make all additions, deletions, and permanent interdepartmental transfers of equipment.
University department heads are responsible for the custody and maintenance of all equipment/movable property purchased for, or assigned to, their respective departments. Deans and directors have this responsibility with respect to all equipment in their schools or divisions which is not assigned to specific departments, and in addition, have a general responsibility to see that department heads exercise their individual equipment responsibilities.
Adding items purchased to inventory will be completed each week if the equipment is paid for completely. The fixed asset capitalization report will be retrieved from the Banner database. A fixed asset tag will be placed on the equipment at this time.
A. Items not owned by Middle Tennessee State University-Items owned by the federal government and other contracting agencies will be inventoried and accounted for separately by the department head in accordance with the contract provisions. This method of accounting will also be followed for all other equipment in possession of, but not owned by, the University. Items on loan to Middle Tennessee State University will be reported to the Senior Vice President in writing when entering or leaving the campus of Middle Tennessee State University. Middle Tennessee State University will not be responsible in any way for the personal property of others used or kept on University property.
B. Equipment listings-Annually (or more often if requested by the department) a computerized listing of equipment will be furnished to each department head. It will be the responsibility of the chair, director or person assigned to locate equipment. The listing will contain the following information:
1. Asset Description
2. Serial Number
3. Permanent Tag
4. Acquired date
C. Inventory Deletions-Deletions to the equipment inventory records are necessary when items are traded, sold, lost, obsolete, stolen, destroyed, permanently transferred, or become surplus to a departments needs. Deletion requests are submitted by written memorandum, e-mail or on-line form to the property officer. The department chairperson is relieved of responsibility for the item subject to the following conditions:
1. Department heads may recommend the trade-in of equipment. The purchasing agent, in coordination with the department head, will make best use of the equipment to be traded. All sales of excess equipment will be made by the purchasing agent under Policy IV:06:01 Procurement Procedures.
2. The department head will report the theft or loss of property, immediately by phone to University Police (ext. 2424), and to the Inventory & Receiving Department (ext. 2959). The department head will also initiate the MTSU MISSING INVENTORY DECLARATION (MID) form, in its entirety, forward the white copy to the Inventory & Receiving Department (P.O. BOX 207), and retaining the yellow copy for departmental files. MTSU MISSING INVENTORY DECLARATION FORMS may be acquired through the Receiving, Moving/ Inventory Services department. The Inventory Department will notify the Associate Vice President for the Business Office by sending a copy of the MID and a cover letter explaining the loss. The University Police will furnish copies of the police report to the Associate Vice President for the Business office and also to the Inventory Department.
3. Items excess to a department needs are to be listed in a letter, e-mail or on-line form and sent to the Receiving & Moving/Inventory Services, Box 207.
4. Permanent transfers between departments will be reported in writing to the Inventory and Receiving Department as a deletion by the department which had the item. The transfer will be done by using the Banner database.
D. Off Campus use of Equipment and other Movable Property
1. University equipment and other movable property are to be used for university-related professional purposes only by University employees. University students may be authorized to use University equipment and other movable property off campus for academically related purposes. If state equipment or property is to be removed from campus for those individuals to pursue University-related activities at other locations, such request must be submitted in writing from the individual requesting such action (see Attachment 1 - Equipment Loan Form). The written request must identify the item by Fixed Asset Tag number, manufacturer, model number, and serial number. The request shall specify why the item is needed off campus and will identify where it is to be located. The request shall be approved or denied by the appropriate chairperson or division head who shall maintain records of equipment/movable property, including who is in the possession of the item, proposed use of the item, and the expected date that the item will be returned to campus (see Attachment 1 - Equipment Loan Form).
2. The individual responsible for the equipment is required to inform the department chair or Division head of the off-campus equipment use. Individuals using equipment off-campus are liable for damage or loss due to their negligence. The department or individual budgetary unit is responsible for typical maintenance or repairs due to ordinary use on or off-campus.
3. The University will treat loss or damage through fire, theft, storm, etc. the same as if it occurred on the campus, provided that the responsible individual exercised care and diligence in the use and security of the equipment, and the loss or damage was not otherwise covered by insurance.
4. Equipment may be loaned on a temporary basis from one department or division to another. In such instances, the Equipment Loan Form should be used to keep a record of equipment use, location, and so forth, and should be maintained on file at the department or division loaning the equipment to another department or division. Permanent transfer of equipment from one department to another should meet the provisions of Section III and Section IV.C.4.
Revisions: April 1, 1991; January 8, 1992; July 12, 2010.
Cross-references: MTSU Policy IV:06:01 Procurement Procedures.