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:
- Status "T"
- Requisition number "000000"
- Acquisition method "GF"
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_Purchasesb. 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.htmlc. 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.htmld. 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:
- The donor should have that information available for you
- 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
- 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:
- Lease term is greater than 75% of the equipment's estimated
economic life;
- Lease contains an option to purchase the equipment for less
than fairm market value;
- Ownership of the equipmetn is transferred to the university
at the end of the lease term; or
- Present value of the lease payments exceeds 90% of the
fairm market value of the equipment.
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.html2. 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.