Procedure for Procuring Tangible Capital Assets
Approval Date: 2017-05-11
Effective Date: 2017-06-01
Responsible Unit: Department of Financial and Administrative Services
1. Purchasing of Tangible Capital Assets must occur in accordance with the University’s Purchasing Policy and related procedures, in particular the Procedure for Using Purchase Order and the Procedure for Using Public Tender. The following applies in addition to those procedures. Direct pay or procurement card may not be used for the purchase of a Tangible Capital Asset. POs capture the data required by the Tangible Capital Asset module of the University’s Financial Management system.
2. As per the Trust Funds Policy no continuing commitments are to be made on the University’s trust funds. Therefore, Tangible Capital Assets are not to be purchased from a trust fund. If the terms and conditions of a particular non-endowed fund allow purchases of Tangible Capital Assets, they must be purchased under an operating fund and the amount transferred from the trust fund to the operating fund.
3. Upon receipt of goods, the Asset Administrator must ensure the Tangible Capital Asset Addition Form is completed in full, including a complete description, serial number, model number, color, location, etc. It is important, for future reference and identification, to include as much information as possible on this form. A copy should be retained by the Unit and the original forwarded to FAS to be entered into the University’s Financial Management System to subsequently appear on the Tangible Capital Asset Property Report for the Unit.
4. Upon receipt of the Tangible Capital Asset Addition Form, FAS assigns a Permanent Tag number, documents and forwards it to the Unit. Once the Asset Administrator receives a Permanent Tag, it must be placed in a visible location on the Tangible Capital Asset.
5.If a new Tangible Capital Asset has been acquired and FAS did not receive a Tangible Capital Asset Addition Form, personnel in Financial Reporting and Analysis section will request the Unit forward the form.
6. If a Tangible Capital Asset has been donated to a Unit, the Asset Administrator must complete the Tangible Capital Asset Addition Form, indicate that the item was donated and include the estimated fair market value, if known. (See the Gift Acceptance policy). Gifts are added to the Tangible Capital Asset inventory at the fair market value of the Tangible Asset at the time they are received. If the Tangible Asset’s fair market value cannot be determined, the Tangible Asset shall be valued at a nominal amount. All direct costs, such as transportation and installation, associated with the donation shall be included when evaluating the Tangible Capital Asset value.
7. A copy of the Tangible Capital Asset Addition Form should be retained by the Unit and the original forwarded to FAS.