Capital Equipment is tangible nonexpendable personal property having a useful life of more than two years and an acquisition cost of $5,000 or more per unit.
Definitions and Responsibilities
Acquisition costs include the cost of modifications, attachments, accessories or auxiliary apparatus necessary to make the property usable for the purpose for which it was acquired as well as other charges, such as the cost of installation, transportation, taxes, duty or protective in-transit insurance. BTI assigns a custodian to each fixed asset.
The Custodian is the individual primarily responsible for a piece of equipment. BTI generally assigns custodianship of common use Capital Equipment at the business-unit level. Responsible use and sharing of Capital Equipment is determined by the specified custodian. Care and maintenance responsibilities of Capital Equipment items are shared between the specified custodian and BTI. Custodians should be aware of any care and maintenance requirements defined by the equipment’s manufacturer. It is the custodian’s responsibility to care for property entrusted to him or her, and to keep it safe. Care and maintenance includes periodic inspection, regularly scheduled lubrication, protection from exposure, and proper cleaning. The goal is to maintain the efficiency and usefulness of the equipment for as long as possible. Records should be kept of maintenance, major repair, and deficiencies revealed during periodic inspection.
BTI is required to conduct an annual Physical Inventory of all fixed asset equipment, which is completed by the Business Office. This process consists of physically locating and viewing every piece of active equipment and the corresponding asset tag. This is coordinated between the Accounts Payable Coordinator and the Custodian or someone assigned by the Custodian.
BTI Capital Equipment purchases require:
Prior approval by the Chief Financial Officer
Two vendor quotes
A quote from single vendor with a signed statement that the product is vendor specific/the vendor is the sole source for the product.
Transfers and Disposals
Transfers of Capital Equipment between labs, as well as physical location moves of equipment, need to be documented appropriately. The Asset Transfer Form shall be completed, to include the updated information, and submitted to the Business Office.
Disposals of any Capital Equipment require prior authorization from the Business Office. Prior to disposing of any Capital Equipment item, please complete an Asset Disposition Form and submit it the custodian-signed form (along with the fixed asset tag) to the Business Office for approval.
The timely and accurate reporting of asset disposals and moves will ensure the accuracy of BTI’s accounting records. All transfers and disposals are updated by the Business Office in the fixed asset module of Navision.
Business Office Fixed Asset Contact
Robin McNabb, Accounts Payable Coordinator