Equipment Accounting Policy    

INTRODUCTION

The University of Alabama at Birmingham (UAB) is required by the State of Alabama, federal grant sponsors, and good business practice to maintain a current inventory of all UAB capital equipment and any noncapital equipment held in locations beyond UAB’s campus.

DEFINITIONS

Where the term "equipment" is used in this policy, it is referring to both "capital equipment" and "noncapital equipment". When referring to "capital equipment" or "noncapital equipment" exclusively, the more specific term is used. 

"UAB capital equipment" is non-expendable property which has an individual cost in excess of UAB’s capitalization threshold, has a useful life in excess of one year, and is of sufficient size and individuality to make control feasible. (Contact the Asset Management Department for the up-to-date dollar amount of the capitalization threshold established by the State of Alabama.)

Equipment that does not meet the definition of capital equipment is considered to be noncapital equipment. If a piece of equipment was classified as "capital equipment" at the time it was purchased but later falls under the threshold for capital equipment because the threshold has been raised, the equipment no longer is considered to be capital equipment.

“UAB remote equipment” is a subcategorization of noncapital equipment that relates to noncapital equipment located at an employee’s residence or alternate work location (off-site) for the purposes of conducting UAB business.

“Steward Org” is the department/unit responsible for the safeguarding the equipment.

SCOPE

This policy covers all equipment, regardless of source, such as the following:

1. Equipment purchased with funds from any UAB account number (for example, grant funds, state funds, professional service funds, and gift funds).
2. Equipment donated or transferred to UAB by external entities, including other universities.
3. Equipment purchased by related foundations (for example, the Health Services Foundation, the UAB Educational Foundation, and the UAB Institute for Innovation and Entrepreneurship) when the equipment is purchased by the foundation and is donated for use by UAB. 

POLICY STATEMENT

UAB is dedicated to responsible stewardship and is committed to safeguarding and accurately accounting for UAB resources.  UAB maintains an inventory of all UAB equipment in compliance with state law and federal grant sponsors.

The department/unit head is responsible for the equipment affiliated to their department/unit. Each UAB department/unit is responsible for, and will be held accountable for, equipment as follows: 

1. Equipment which is affiliated with that steward org (through purchase, donation, or transfer) and is located in that department's or unit's space.
2. Equipment which is affiliated with that steward org but is located in another department's or unit's space.
3. Equipment for which the steward org has custodial responsibility because the equipment is located in the department's or unit's space but is affiliated with another department or unit. The department/unit in which the equipment is located is responsible for safeguarding such assets and for reporting applicable equipment inventory transactions to the department or unit with which the equipment is affiliated.
4. Equipment classified as remote equipment assigned to employees affiliated with the steward org.

The "Accountable Equipment Officer" for each unit is the department/unit head unless otherwise designated in writing to the Asset Management Department. The Accountable Equipment Officer will be responsible for all equipment matters covered by this policy. These responsibilities include, but are not limited to, the following duties: 

1. Assisting the Asset Management Department in locating, accessing, retrieving, and tagging capital and remote equipment.
2. Verifying capital and remote equipment inventory lists.
3. Reporting to the Asset Management Department donations or other acquisitions of equipment not processed through the UAB Purchasing/Accounts Payable System.
4. Reporting to the Asset Management Department all long-term relocations of capital equipment from one room to another.
5. Reporting to the Asset Management Department changes in capital equipment affiliation.
6. Reporting to the Asset Management Department missing or lost equipment.
7. Assisting in all internal and external equipment audits, and responding to equipment audit findings.
8. Enforcing all UAB equipment policies and procedures.
9. Securing equipment properly.
10. Reporting to the Asset Management Department remote equipment assigned to UAB employees. 

NONCOMPLIANCE

Confirmed lack of adherence to this policy or established procedures will result in consequences commensurate with the policy violation, up to and including termination of employment, appointment, student status, or other relationships with UAB.

IMPLEMENTATION

The Office of the Senior Vice President for Finance and Administration is responsible for the development and maintenance of procedures to implement this policy.