686  Equipment/Movable Property Inventory Control

Approved by President
Effective Date: June 5, 2017
Responsible Division: Business and Finance
Responsible Office:  Administrative and Business Services
Responsible Officer:  Assistant Vice President, Administrative and Business Services

I. Purpose

This policy outlines consistent accounting controls and procedures for equipment and movable property inventory acquired by Middle Tennessee State University (MTSU or University).

This policy applies to movable equipment and not to supplies, fixed equipment, library books, or campus recreation equipment. Nor does it apply to items such as built-in furniture, lights, and plumbing fixtures, which are considered fixtures and a part of the building.

II. Definitions

A.  Equipment. Items of a movable nature, having a minimum unit cost of five thousand dollars ($5,000.00) and having an estimated life expectancy of at least one (1) year.

B.  Surplus Property. Equipment no longer usable/useful to the department that has possession.

C.  Movable Property. Follows the definition of equipment, with no minimum cost figure associated.

D.  Sensitive Minor Equipment. Items of a movable nature, which are particularly vulnerable to theft, and have a cost or fair value (for donated items only) between one thousand five hundred dollars ($1,500.00) and four thousand nine hundred ninety-nine dollars and ninety-nine cents ($4,999.99), regardless of funding source. 

III. Responsibilities

Ownership of property acquired by University rests with the State of Tennessee, whether acquired by departmental funds, grants, or by gifts. The property officer will maintain inventory records and make all additions and permanent interdepartmental transfers of equipment. Deletions of equipment are recorded by the Business Office.

University Department Heads or Directors are responsible for the custody and maintenance of all equipment/movable property purchased for, or assigned to, their respective departments. Deans and Directors have this responsibility with respect to all equipment in their colleges or departments which is not assigned to a specific department.

IV. Procedure

Equipment purchased will be added to inventory each week for equipment that is paid for completely. A fixed asset tag will be placed on equipment when it is added to inventory. The fixed asset capitalization report is generated through Banner.  

A.  Items not owned by University

Items owned by the federal government and other contracting agencies will be inventoried and accounted for separately by the department, in accordance with the contract provisions. This method of accounting will also be followed for all other equipment in possession of, but not owned by, the University. Items on loan to University should be reported to the Vice President for Business and Finance, in writing, when entering or leaving the campus of University. University will not be responsible in any way for the personal property of others used or kept on University property.

B.  Equipment listings

Annually (or more often if requested by the department) a computerized listing of