Equipment Acquisitions 5.2-3

General Purpose

To define equipment acquisitions and set forth guidelines for signature authority for the purchase of said equipment.

Definition

To be classified as an equipment acquisition and capitalized in the University records, individual items are to be valued at $5,000 or greater and have a life expectancy exceeding one year. If an order of functionally-related items, which together constitute one unit of equipment, are submitted and valued at less than $5,000 each, the combined value will be the determining factor as to whether the purchase is considered equipment or not. However, if an item is valued under $5,000, it may be classified as "equipment-like." (The budgetary and accounting procedures applicable to equipment-like transactions are set forth in Operations Manual Policy 5.2-4.)

Procedures for Signature Authority of Equipment Acquisitions

1. Equipment acquisitions should be submitted for approval through the standard purchase requisitions process. The funding source for equipment acquisitions must be clearly stated on the purchase requisition.
2. Signature authority for the acquisition of equipment is obtained from the appropriate President Staff's member based on the accounts under his or her control.
3. Object code 5761 is used for computer equipment, 5762 for computer software, 5763 for networking equipment, 5769 for ITS infrastructure and object code 5761 is used for all other equipment acquisitions. Reference the object code listing on the Controller's Office web page for other capital acquisition object codes.
4. Upon securing appropriate signature authority, the purchase requisition is to be submitted to Purchasing for processing.

Definition

To be classified as an equipment acquisition and capitalized in the University records, individual items are to be valued at $5,000 or greater and have a life expectancy exceeding one year. If an order of functionally-related items, which together constitute one unit of equipment, are submitted and valued at less than $5,000 each, the combined value will be the determining factor as to whether the purchase is considered equipment or not. However, if an item is valued under $5,000, it may be classified as "equipment-like." (For further clarification, refer to the budgetary and accounting procedures applicable to Equipment-Like Purchases Policy 5.2-4.)