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Frequently Asked Questions

Acquisitions - General

1.  What object code should I use to order equipment?

Object/sub-object codes are used in expenditure classifications. The term applies to the type of the article purchased or the service obtained. Object/sub-object code descriptions can be found at: http://www.washington.edu/admin/finacct/obcodes/. Following is a brief description of object/sub-object codes to be used when purchasing equipment:

05-10  Sensitive Inventorial Items (Less than $2,000)
05-40  Non-capitalized Equipment (Less than $2,000)
05-41  Non-capitalized Equipment - M&E Tax Exempt ($1,000 - $1,999)
06-10  Computing Equipment ($2,000 - $4,999)
06-11  Computing Equipment ($5,000 or More)
06-12  Computing Equipment - M&E Tax Exempt ($2,000 - $4,999)
06-13  Computing Equipment - M&E Tax Exempt ($5,000 or more)
06-14  Computer Cluster ($2,000 - $4,999)
06-15  Computer Cluster ($5,000 or more)
06-16  Computer Cluster - M&E Tax Exempt ($2,000 - $4,999)
06-17  Computer Cluster - M&E Tax Exempt ($5,000 or more)
06-90  Other Equipment (Non-computing) ($2,000 - $4,999)
06-91  Other Equipment (Non-computing) ($5,000 or more)
06-92  Other Equipment (Non-computing) - M&E Tax Exempt ($2,000 - $4,999)
06-93  Other Equipment (Non-computing) - M&E Tax Exempt ($5,000 or more)
06-96  Equipment Pass Through

For more detailed descriptions of these codes, please click on the individual code or visit Object Codes for Expenditures.

2.  We received some equipment as a gift.  How should I handle it?

If the equipment has a current fair market value of $2,000 or more and a life expectancy of at least one year, enter the equipment information into the OASIS system:
You will also need to complete a Gift Transmittal Form and submit it to Gift Processing, Box 359505.  This will ensure proper reporting.

3.  Can I purchase equipment on a Fellowship (80 series budget) using PAS, eProcurement, ProCard, Petty Cash, or a check request?

Yes, but the student will not be able to retain ownership.  If you'd like for the student to retain ownership of them items, they must be purchased through a stipend, which is obtained through the Payroll Office.  Please contact Eva Lu at eval@u.washington.edu or 543-9186.

4.  What is the threshold for: a) Equipment, b) Machinery & Equipment (M&E) purchases, c) Confirming Orders, and d) Procurement Card Equipment Purchases?

a.  Tangible assets acquired through donation, gift, purchase, loan, capital lease, or self-construction, with a life expectancy of more than one year and a total acquisition cost of $2,000 or more (total purchase price including shipping, handling, tax, etc.) should be assigned an appropriate University equipment identification tag and inventoried. Equipment definitions can be found at: http://www.washington.edu/admin/eio/homepage/equipmentacq.html#Object_Codes_for_Equipment_Purchases

b.  Equipment purchased for certain University research and development activities may qualify for a sales tax exemption allowed under RCW 82.08.02565, (Revised Code of Washington - compilation of Washington State laws in force) known as the Machinery and Equipment Tax Exemption, or M&E Exemption. Purchases must have an acquisition cost of $1,000 or more to be considered, along with other criteria, for an M&E exemption. Additional M&E exemption information can be found at: http://www.washington.edu/admin/eio/tax.exemption.html

c.  A confirming order is a purchase for supplies or materials that has been placed by a department, directly with the vendor, rather than the University's Purchasing Department placing the order on behalf of the department. A notation is made in the PAS (Purchasing and Accounts Payable online System) to identify a confirming order so the Purchasing Department doesn't inadvertently place the order themselves thus duplicating the order. A confirming order needs to be no more than $3,300, exclusive of any shipping, handling, or taxes. Additional confirming order information can found at: http://www.washington.edu/admin/purchstores/yourdept/confirming.html

d.  A ProCard purchase is an order placed where the payment mechanism is the University's official ProCurement Card. Purchases made via ProCard must have an acquisition cost of no more than $2,000 (total purchase price including shipping, handling, tax, etc.). At times it might be necessary to request a single transaction limit increase in order to make a ProCard purchase over $2,000.  Instructions on how to request an increase can be found at: http://www.washington.edu/admin/finserv/procard/limitincr.htm  Beginning May 1, 2008, this limit increases to $3,300.

5.  I'm purchasing a computer.  Do I have to purchase each piece separately?

Computer components purchased on the same requisition can be purchased as a system and coded as equipment according to total cost (CPU, monitor, mouse, key board, etc.)

6.  Who determines if an item is titled to the UW or to the sponsor?

Equipment associated with a grant or contract can be designated as University owned equipment, or agency owned equipment. The ownership of equipment is usually spelled out in the documentation that accompanies a negotiated grant or contract. OSP (Office of Sponsored Programs) negotiates and processes award documents. OSP will determine the appropriate ownership of equipment associated with a particular grant or contract. For questions regarding the determination of equipment ownership, OSP can be reached at: osp@u.washington.edu, or 206.543.4043.

7.  I've heard that all equipment purchased on grants and contracts is exempt from Indirect Cost.  Is that true?

It depends on the budget.  Please look at the indirect cost section of your budget profile in MyFD to find then "Indirect Cost Actual Base" (it is the 3rd item under Indirect Cost).  If you click on the title "Indirect Cost Actual Base", it will take you to a glossary where it lists the possible codes and the descriptions.  If your code does not specifically exclude equipment, then it is not exempt.

Acquisitions - Gifts

1.  How do I determine fair market value?

You have three options in determining fair market value on gift equipment:
  1. The donor should have that information available for you
  2. If they don't, you can go to the manufacturer's web site and look at the manufacturer's suggested retail price for the item
  3. If these first two do not work for you, contact Equipment Inventory at eio@u.washington.edu or 543-4663 and we will assist you.

2.  Where do I get a Gift Transmittal Form?

Here is the link: Gift Transmittal Form.  Contact the University Advancement's Gift Processing unit with questions relating to the form.

3.  What do I do if I have an inventorial gift and I don't use OASIS?

Equipment Inventory will be happy to help you enter your new gift into the inventory system (OASIS).  Contact our office at eio@u.washington.edu or 543-4663 and ask for the "orange card" equipment information cards.  We can send it to you as an email attachment, by fax, or put some in the mail for you.  Once you receive the card, you just fill in the blanks and sent it back to us for entry into OASIS.

Acquisitions - Fabrications

1.  The policy does not allow for fabricated items that are to be delivered to an external entity or that are not University owned.  How should I treat those?

If a fabricated item is to be delivered to an external entity or is not University owned, the equipment is not subject to being tagged or inventoried. Salaries, supplies, and other costs incurred in fabrications should be left in their original expenditure object code, not transferred to the 06-XX object code by JV. These costs will incur the usual indirect costs for grants and contracts. Individual parts or equipment items that fall into this category and meet the standard definition of equipment should be coded 06–96 on purchase requisitions.

2.  Effective April 16, 2009, all Requests to Transfer Expenditures (RTE) submitted on paper Journal Voucher (JV) must be processed through the Financial Desktop Transactions application.  Is the Fabrication JV request an exception to this?

Fabrication JVs are an exception to this, though we hope to be able to process these through the Financial Desktop eventually.  Currently, the Transactions application only allows for the transfer of existing expenditures.  Fabricationo JVs don't move existing expenditures, they create a second set of expenditure debits (05-XX, 01-XX, 03-XX, etc) and a 21-XX credit.  Please see "Note" under the Department's portion of the Procedure section of the Acquisitions of Equipment - Fabrication web page.

3.  What should I do if we purchase a piece of equipment for a fabrication as 06-XX instead of 05-40?

The easiest way to handle this is to add cost the 06-XX asset to the fabrication and not include it in the fabrication Journal Voucher (JV) request .

Acquisitions - Fellowships

1.  How do I know if the Fellowship allows equipment?

You are required to verify what is allowed in the Fellowship before purchasing anything or creating a stipend.   Your department should have a copy of the Fellowhip on file.

2.  Why did Equipment Inventory reject my requisition for an 80-XXXX budget purchase and what can I do to fix it?

Any time a department puts through an equipment purchase in PAS on an 80-XXXX budget, Equipment Inventory is required to see if the equipment is intended to stay a the UW permanently or if it is intended to be the fellow's personal property.  You should enter information in the Item Description that states "Item will stay with the UW" if it is not for a fellow to keep.  Any requisition that has items for a fellow to keep must be cancelled.  You have to create a stipend request through the Payroll Office.

3.  Who do I contact in Payroll for help?

Eva Lu handles stipends for the Payroll Office.  She can be reached at eval@u.washington.edu or 543-9186.

4.  What do I do if my department accidentally purchases something that the fellow is going to keep?

Immediately contact Equipjment Inventory at 543-4663 and we'll see what we can do to help you correct the error.

Acquisitions - Operating and Capital Leases

1.  Can I surplus leased equipment?

No, leased equipment is technically not University property - we are only tracking it for the company we are leasing it from.

2.  How do I determine if a lease is capital or operating?

You don't have to!  The Financial Accounting Office will help you determine proper classification.  The University automatically classifies leases as operating if the total value of  future minimum lease payments or fair value (whichever is less), is less than $10,000.  If that value is over $10,000, the lease is reviewed by Financial Accounting to determination its classification.  To be considered a capital lease at the University, the total value of future minimum lease payments or fair value (whichever is less) must be $10,000 or more and must meet one or more of the following criteria:  

3.  Who should I contact if I have questions about setting up a lease for equipment?

Please contact Dave Beaulieu in Financial Accounting at db32@u.washington.edu or 543-8811 for questions on leased equipment.

Acquisitions - Transfers In

1. How do I determine fair market value?

The original institution should have that information available for you in the transfer paperwork.  If the original equipment cost is not included, contact Equipment Inventory at eio@u.washington.edu or 543-4663 for assistance.

2.  What do I do if I have an inventorial transfer in and I don't use OASIS?

Equipment Inventory will be happy to help you enter your new gift into the inventory system (OASIS).  Contact our office at eio@u.washington.edu or 543-4663 and ask for the "orange card" equipment information cards.  We can send it to you as an email attachment, by fax, or put some in the mail for you.  Once you receive the card, you just fill in the blanks and sent it back to us for entry into OASIS.

Acquisitions - Surplus Property

1.  An item has shown up in my department with a different department's inventory tag and I  think we bought it from Surplus.  What should I do?

Call Equipment Inventory at 543-4663.  We can look the item up for you.  This will provide us with its history and help us figure out how to move forward.  If the item is accidentally in your area and was not a purchase from Surplus, we can contact the department of ownership to arrange for its return.

2.  What do I do if I have an inventorial Surplus purchase and I don't use OASIS?

Equipment Inventory will be happy to help you enter your new gift into the inventory system (OASIS).  Contact our office at eio@u.washington.edu or 543-4663 and ask for the "orange card" equipment information cards.  We can send it to you as an email attachment, by fax, or put some in the mail for you.  Once you receive the card, you just fill in the blanks and sent it back to us for entry into OASIS.

3.  My department wants to consider buying some Surplus equipment.  Where do I start?

Start by visiting Surplus Property's Purchasing and Sales website.  Here you will find information on public auction dates, store hours, contact information, and parking.  There's also an option to sign up for their mailing list, if interested.

Disposals - General

1.  Can we sell or donate equipment to a non-profit or outside entity?

The University has established disposal procedures for all property (equipment, material, supplies). Contact EIO (Equipment Inventory Office) for assistance in determining whether or not an item is eligible for sale or donation. EIO can be contacted at eio@u.washington.edu, or 206.543.4663. Once EIO has determined the equipment is eligible for sale or donation, it will be the University's Surplus Property Office that does the negotiation with the potential buyer. Additional disposal of equipment information can be found at http://www.washington.edu/admin/eio/dispose/

2.  When will my items for suplus be picked up?

You shedule your transportation and pick ups through the  Surplus Property Office. (The Equipment Inventory Office is responsible only for processing the forms and removing the items from your inventory.)

3.  Where do I send the Property Activity Request - Form 1024?

Equipment Inventory, Box 351121.  You should retain a copy for your records as well.

4.  How long am I required to keep our department copy of the Property Activity Request - Form 1024?

Six years.

5.  Can I toss damaged or broken items in the trash?

No, all items are to be forwarded to the Surplus Property Office for disposal.

6.  I have a box of old computer "mice" and a keyboard.  Do I have to list each on on the Property Activity Request - Form 1024?

No.  If you have a box of parts, each item does not have to be listed on the Property Activity Form - Form 1024. For example, you may list the items as "a box of computer parts."

7.  Can an employee buy equipment directly from the department?

No, as described by WAC 236-48-198, surplus property available for disposal under the provisions of RCW 43.19.1919 shall not be sold to state elected officials, officers or employees, except at public sale. Public sales are held through the Surplus Property Office.

8.  A piece of our equipment has been stolen.  What should the department do?

Please see the procedure under Equipment Lost/Stolen.

9.  We received a damaged piece of equipment.  What do we need to do to return the item to the vendor?

Please see the procedure under Defective Equipment--Return to Vendor.

Grant and Contract Equipment

1. Who determines the ownership of a piece of equipment?

The Office of Sponsored Programs (OSP) and the sponsoring agency negotiate to determine the ownership of equipment.

2. How can I keep the equipment at the end of an award?

While submitting the closeout property report, Equipment Inventory (working with University research departments) asks the granting agency to vest title with the University.  Note:  Title never vests with an individual.

3.  Who submits the closign and annual reports?

Equipment Inventory prepares and submits all closing and annual reports.  Occasionally, Equipment Inventory will contact the department for clarification and assistance.

Machinery and Equipment (M&E) Sales/Use Tax Exemption

1.  Does my purchase qualify for the M&E exemption?

Equipment purchased for certain University research and development activities may qualify for a sales tax exemption allowed under RCW 82.08.02565 (Revised Code of Washington - compilation of Washington State laws in force), known as the Machinery and Equipment Tax Exemption, or M&E exemption. To qualify for the M&E exemption, equipment must:

1) have a useful life of more than one year
2) be directly used more than 50% of its useful life on qualifying research, and
3) have an acquisition cost of $1,000 or more.

The complete process to request an M&E exemption can be found at: http://www.washington.edu/admin/eio/tax.exemption.html

2.  What is an example of an appropriate M&E statement?

If it is deemed that an equipment purchase would qualify for the M&E exemption, a statement detailing the type of research to be performed and the desired outcome, is required. Examples of acceptable (and unacceptable) statements can be found at:  http://www.washington.edu/admin/eio/tax.exemption.html

Personal Computer Policy

1.  How do I determine the total cost of the computer unit?

Include the central processing unit (CPU), operating system, monitor, keyboard, mouse, desk printer (if purchased at the same time), external modem, internal and external drives, freight, video cards, RAM, and sales tax in the total cost.

2.  How should I affix the tag?

The tag should always be afixed to the central processing unit (CPU) where it can easily be seen.  We recomment placing the tag on the front of theh CPU because it is the most visible location and makes the inventory process easier for the departmental inventory contact.

Physical Inventories

1.  Is my department's inventory due this year?

Physical inventories of University-owned equipment must be completed by University departments every two years. Inventory listings are distributed annually around the beginning of May. The listings are sent to the department inventory contacts, as listed with EIO (Equipment Inventory Office). The inventory listings will be denoted with "due" or "optional" to let departments know whether or not a physical inventory is required. Additional inventory information can be found at: http://www.washington.edu/admin/eio/physicalinventory/physinvoverview.htm, or by contacting EIO at eio@u.washington.edu or 206.543.4663.

Training

1.  Can I sign up for OASIS Training at the same time as the General Inventory Procedures class?

Yes.  We track your regsitration in a database so we will know if you are unable to attend the General Inventory Procedures class (a pre-requisite to OASIS Training).  As a result, we'll be able to work with you to reschedule.

2.  Can I just take OASIS Training?  I don't really want to take both classes.

No, General Inventory Procedures is a pre-requisite to the OASIS Training.

3.  One of the classes I need to take is only offered mornings (or afternoons) this quarter.  I work 50% and cannot come in outside my shift times.  What should I do?

If the conflict relates to the General Inventory Procedures class, please consider taking it self study.  If the conflict relates to other courses, please contact Equipment Inventory at eio@u.washington.edu or (206) 543-4663 to see if special arrangements can be made for you.

4.  What do I need to bring to class?

You only need to bring a pen or pencil.  Materials will be provided at each class.