Financial Accounting

Property Accounting

bullet item Responsibilities
bullet item Guidelines for Capital Equipment
bullet item Capital Equipment Accounts
bullet item Frequently Asked Questions
bullet item Property Accounting Forms
bullet item Capital Project Guidelines

Responsibilities

The Property Accounting section of the Office of the Controller is responsible for recording and maintaining capitalized equipment, non-capitalized equipment, and capital projects.  This comprehensive data constitutes the Indiana State University Fixed Asset system.

If any item is un-repairable or no longer needed by the department and needs to be disposed, please advise Purchasing and Central Receiving through the "Surplus Pickup Request Form".  This form is available at Purchasing and Central Receiving or can be accessed by clicking the form name above.  Kevin Barr, Director of Purchasing and Central Receiving, is the "Disposal Agent" of University owned property.

Currently, requisitions that have a capital equipment account may be reviewed by Property Accounting.  At this point, all items are checked to make sure they qualify to become a “fixed asset”. 

Property Accounting Contacts:
David Peng (X-3516) wpeng@isugw.indstate.edu
Mike Bonnett (X-3517) mbonnett@isugw.indstate.edu

Guidelines for Purchasing or Otherwise Acquiring Equipment

Equipment may be acquired through the purchasing process, through ISU procurement card procedures, or by a donation through the ISU Foundation Office.  Property Accounting needs to be notified when equipment is acquired by any means other than Purchasing.  Equipment purchased by ISU Purchasing must be processed using Commodity Accounting procedures.  (Un-check the box next to Document Accounting.)

Equipment (with the exception of computers) may be purchased through the University procurement card. Equipment acquired in this manner must be reported to Property Accounting through the 'Equipment Purchased on Pcard' form. Equipment that is acquired either by donation or through the ISU Foundation must be reported through the 'Gift Report' form.

  1. In order to be considered equipment (and thus ordered under an equipment account), an item must cost at least $2,500 per item and have a useful life of two years.  The exceptions to this minimum are listed below:
     
        a. Computer Equipment – Covered by the ISU onsite repair contract.  Items covered by the contact include, but are not limited to, the following:
                                                        i.      Computer Systems
                                                       ii.      Printers (including multi-function machines)
                                                      iii.      Scanners
                                                      iv.       Monitors (only those costing $500.00 or more)
                                                       v.       External Drives (Hard & Fire Wire)
                                                       vi.      External CD & DVD Rewritable Drives
                                                      vii.      Print Servers
                                                     viii.      Universal Power Supplies (UPS)
                                                       ix.      Ethernet Switches
                                                        x.      Other

            b. Works of Art – any cost (Note: the piece must be an original work purchased from the artist or reputable art dealer)
            c.  Digital Cameras (still) - this does not include digital web cameras
            d.  Personal Digital Assistants (PDA’s) - commonly referred to as Palms or handhelds
            e.  Camcorders
            g.  Musical Instruments
            h.  LCD Projectors
             i.  Firearms
             j.  Digital Music Players (iPods)
            k.  Televisions
             l.  CD/DVD Players & Recorders
            m. Copiers
            n.  Motorcycles & Bicycles
            o.  GPS Navigation Systems

    Please note that the following items are not considered exceptions & thus must meet the $2,500 minimum (per item) to be tagged by Property Accounting:

    bullet item Fax Machines – these are not covered by the ISU onsite contract.  This would not include multi-function machines that include a fax.  Starting in August of 2004, Equipment Repair Service (ERS) changed their policy and included multi-function machines that contain a fax to the list of items that are covered under the onsite repair contract.  All multi-function machines (printers) are tagged by Property Accounting.
    bullet item USB Drives – these items are used to save, share, and store files.  These are also known as jump drives, flash drives, or disk on key for Apple computers.  ERS initially indicated that these would be covered under the onsite repair contract, but this policy was changed in August 2004.  These items are no longer covered by the ISU repair contract.
    bullet item Access Points (Wireless Antennas) - Effective February 2007, Property Accounting is no longer tracking these items.
    bullet item Cameras that are not digital
    bullet item Digital Web Cameras
    bullet item Furniture
    bullet item Video Cassette recorders
    bullet item USB Mini Hubs
    bullet item Zip Drives
    bullet item Floppy Drives

    An item that will upgrade an existing, tagged piece of equipment should also have a minimum cost of $2500.00 and be coded to the proper equipment account code.  However, the property tag number needs to be listed in Document Text area of the requisition.

  2. Note - there are 2 accounts for purchasing computer equipment:
    78510 - Student instructional use
    78520 - Administrative & staff use
  3. Software “packages” with a combined total of $2500.00 or more are NOT considered capital purchases   (Per package cost - not total amount of packages)
  4. Item has a useful life of at least 2 years
  5. It does not lose shape or identity when moved from its original location, i.e. modular units
  6. It will not be joined permanently to a building
  7. It is not constructed of glass or other non-durable material
  8. It will not increase the value and life of an existing item (an upgrade must cost at least $2500.00 to be considered as an equipment purchase - otherwise it is a supply)
  9. Supply items should only be included as part of the cost of equipment if they are needed for initial operation  (Start-up items - i.e.  ribbons, tapes, casters, cables, etc.)
  10. An item purchased to repair or replace a broken component DOES NOT upgrade, and should be coded to the proper Repair account
  11. In order to help departments keep their supply purchases organized, a new supply account has been created: 73175 - Equipment non-capital.  This will allow for the purchase of furniture and office equipment to be separated from general supplies such as paper and pens, etc.
  12. Account Code 73175 - Equipment non-capital:  Tags will be issued at the department's request for items purchased using this account code.  The department will need to call or e-mail David Peng (X-3516, wpeng@isugw.indstate.edu) or Mike Bonnett (X-3517, mbonnett@isugw.indstate.edu) in Property Accounting with the P.O. number.

Please note:

A replacement of a broken or unusable component of a piece of tagged equipment  (i.e. crashed hard drive) should be coded to the proper repair Account Code. 

Additional items such as power cords, extra keyboard, memory upgrades, etc. which cost less than $2500.00, should be coded to the proper supply Account Code.  (Over $2500.00 can be considered an upgrade, if the useful life of the tagged item is extended.)

Software programs under $2500.00 are considered supplies.

Equipment that will be used off-campus:

The Request for Use of Equipment Off Campus form should be filled out and forwarded to us. The Business Affairs Office, Risk Management (X3555) should be notified as well.  If a loss occurs while the equipment is being used off campus, and has been documented as such, the deductible is substantially lower.

If there are any questions concerning equipment, please contact:
David Peng (X-3516) wpeng@isugw.indstate.edu or 
Mike Bonnett (X-3517) mbonnett@isugw.indstate.edu.

Capital Equipment Accounts

   I.   Items purchased with these accounts will:

A.     Have useful life of at least 2 years
B.     Cost at least $2500.00

Exceptions to $2500.00 minimum 

~NOTE~ For purchases of equipment with grant funding, please contact Jean Boone at X4622

a. Computer Equipment – 78510, 78520, 78540
        i. Computer Systems
        ii. Printers (including multi-function machines)
        iii. Scanners
        iv. Monitors (only those costing $500.00 or more)
        v. External Drives (Hard & Fire Wire)
        vi. External CD & DVD Rewritable Drives
        vii. Print Servers
        viii. Universal Power Supplies (UPS)
        ix. Ethernet Switches
        x. Other
b. Art Objects – 78810
c. Digital Cameras (not including digital web cameras) 78510, 78520
d. Personal Digital Assistants (PDA’s), commonly referred to as Palms or handhelds – 78510 or 78520
e. Digital Camcorders – 78510, 78520
f. Camcorders –78360
g. Musical Instruments – 78655
h. LCD Projectors – 78650
i. Firearms – 78690
j. Digital Music Players (iPods) – 78510 or 78520
k. Televisions – 78360
l.  CD/DVD Players and Recorders – 78360
m. Copiers – 78360
n.  Motorcycles & Bicycles – 78690
o.  GPS Navigation Systems – 78360

Please note that the following items are not considered exceptions and thus must meet the $2,500 minimum (per item) to be considered capital equipment:
• Fax Machines – these are not covered by the ISU onsite contract. This would not include multi-function machines that include a fax.  Starting in August of 2004, Equipment Repair Service (ERS) changed their policy and included multi-function machines that contain a fax to the list of items that are covered under the onsite repair contract.  All multi-function machines (printers) are tagged by Property Accounting.
• USB drives
• USB mini-hubs
• Cameras that are not digital
• Digital Web Cameras
• Furniture
• Video Cassette recorders
• Zip drives
• Floppy drives

C.    Be made of durable material
D.    Not be part of a building

II.  Capital Equipment Account Codes:

A.     Educational and Office Equipment Account Codes :

1.                  78360 – Office Equipment and Furniture
2.                  78370 – Instructional and Laboratory Equipment

B.     Computer Equipment Account Codes:

1.                  78510 – Computer Eqpt. - Instructional Use
2.                  78520 – Computer Eqpt. - All Other Uses
3.                  78530 – Computer Eqpt. - LAN/Networking (Campus network)
4.                  78540 – Computer Eqpt. - Special Academic Computer Funds
5.                  78550 – Computer Software – Minimum $2500.00 per Pkg.  

C.    Other Equipment Account Codes:

1.                  78605 – Telecommunications Equipment
2.                  78620 – Household and Custodial Equipment
3.                  78630 – Athletic Equipment – Intercollegiate
4.                  78650 – Media Equipment  (Audio-Visual)
5.                  78652 – Films and Video Tapes
6.                  78655 – Musical Instruments
7.              78660 – Research Equipment
8.                   78680 – Firearms
9.              78690 – Other Equipment
10.             78716 – Vehicles and Machinery
11.                78790 – Books and Periodicals  (Library use)
12.                78810 – Art Objects (Original works of Art)

III.  Supply Account Codes for Grant, Non-capital, or Non-exception Purchases:

 

1.                  73100 – Grant Computer Purchases (need tagged)
2.                  73125 – Grant Other Supplies (need tagged)

                                           3.                  73150 – Computer Equipment Upgrades (not tagged)

                                           4.                  73175 – Equipment - Non-capital (not tagged)

                                           5.                  73200 – Computer Software under $2500.00

Frequently Asked Questions

About Fixed Assets / Inventory

Q:  What is a Property Tag?
A:        A property tag is the sticker that has a number and a bar code strip; it is applied to     Indiana State University owned equipment and furniture.

Q:   Why doesn’t everything in my office have a property tag?
A:        Currently the minimum cost for Capitalization and Inventory is $2500.00   See exceptions.

Q:  Why are there so many exceptions?
A:         The Exception List includes most of the more portable items that tend to be misplaced.

Q:  Can tags be issued for items not covered on the exception list?
A:        YES!  Please contact David Peng (X-3516, wpeng@isugw.indstate.edu) or Mike Bonnett (X-3517, mbonnett@isugw.indstate.edu) with the P.O. number and description of the item(s).

Q:   What is the difference between the computer accounts 78510, 78520, 78530, and 78550?
A:        78510 is for the purchase of computer equipment primarily used for student instruction.  (Labs, Classrooms)
            78520 is for the purchase of computer equipment primarily used for Administration, Faculty, or Staff.
            78530 is for the purchase of bulk purchases of cable, fiber optics, or other networking items which are not tagged. Computer purchases are broken down this way so reporting can be done for the Commission of Indiana Higher Education. If the usage changes after the purchase, that’s OK.
            78550 is for the purchase of computer software over $2500.

Q:  Why does my External Hard Drive have a tag, but my Monitor doesn’t?
A:        A PC “system” consists of a CPU, Monitor, and Keyboard and is tagged as a “unit”. Any peripherals covered by the ISU onsite hardware repair contract are tagged regardless of cost.  Monitors purchased separately from the CPU are considered equipment and are tagged if the cost is $500.00 or more.

Q:   Who do I contact when my computer “crashes”?
A:        The “Help Desk” @ X2910.  They are a part of Information Technology. 

Q:  What account do I use to purchase Licenses for the use of Software?
A:        77665 – Computer Software Maintenance

Q:  What do we do if our department receives a gift from an organization or corporation?
A:        All donations should be reported through the ISU Foundation.  Fill out the Gift Report form and forward it to Property Accounting.

Q:  What account do I use to purchase Software that is less than $2500.00 per package?
A:        73200 – Computer Software under $2500.00 (See Guidelines)

Q:  Can we just “throw out” a broken piece of equipment?
A:        No, even if that particular item is not tagged.  ALL items need to be processed through Central Surplus.  Items that are no longer wanted by a department should be transferred to Central Surplus utilizing the proper form.  Please refer to the Central Surplus portion of Purchasing’s web site for the Central Receiving Pickup Request Form.  Once the items have been picked up by Central Surplus, please campus mail or fax (x8179) the signed form to Property Accounting.

Q:  How do we transfer a piece of equipment to another department?          
A:        If you have items which are being transferred to another department, please complete the Equipment Transfer Notice and forward it to Property Accounting.  You could also send an e-mail to David Peng with a copy to the other department involved in the transfer.

Q:  What are the procedures when an item is stolen or just “mysteriously disappears”?
A:        Call Public Safety to report the incident.  Property Accounting needs to be notified as well, since Public Safety is not responsible for making sure we know that a loss has occurred. The Loss and Theft Report form needs to be filled out, so the item can be removed from your inventory.

Q:  Who do I contact if I need something tagged?
A:        Call David Peng (3516) or Mike Bonnett (3517).  Please know the Purchase Order number of the item in question.

Property Accounting Forms

bullet item Loss & Theft Report
bullet item Request for the Use of Equipment Off-Campus
bullet item Gift Report
bullet item Transfer Notice
bullet item Equipment Purchased on PCard

To view the forms, click on a file name above.  To download the file to your computer, right click on the file name and click "Save Target As..." (Internet Explorer) or "Save Link As..." (Netscape).  If prompted for a user name and password, click "Cancel".

CAPITAL PROJECT GUIDELINES

The Property Accounting section of the Office of the Controller is responsible for the recording and maintaining of purchased land, land improvements, building construction and building improvements.  These assets are recorded within the Indiana State University Fixed Asset system.
 
Capital projects that have a value of more than $50,000 will be capitalized within the University’s Fixed Asset system.  If there are multiple components to a capital project, the components will be capitalized at the amount of the component asset within the capital project.
 
Capital Project Account Codes:
 
                78700 – New Building Construction
                78710 – Building Rehab & Renewal
                78830 – Land (Purchase of Land)
                78840 – Land Improvements
 
If there are any questions about recording of capital projects within the Fixed Asset system, contact Robert Anthrop at ranthrop@isugw.indstate.edu or extension 3521.

 

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