Effective Date Nov 13, 2013
The purpose of this policy is to provide guidance for the purchase of capital assets ($5,000 and over, and a separate threshold of $1000.00 and over for any State (FL) purchases ). This procedure supports the university’s capital asset management system and university property management.
Procedure and Guidelines
Method of Purchasing
- Each department is responsible for ordering its own goods, services, and equipment using the Banner purchase requisition and approval system. (see the ‘Requisition Processing Procedure’ in the Purchasing Guidelines section of the Purchasing website).
- Items and equipment purchased as a ‘set’ or ‘complete package’ must be purchased with a purchase requisition. The requesting department cannot purchase these items individually using a procurement card. This purchase would be considered a ‘split transaction’. Refer to the Procurement Card User’s Guide, Item 3, Cardholder and Procedures, Section 3.6. Limitations on all Cards.
Purchasing Equipment from Government Funding
- Quote from three companies
- A description of the equipment
- Award/contract documentation is reviewed by the OSP before the purchase approval ensuring the award authorizes the purchase
- If prior approval is required by the agency, the PI will write the request/justification and forward it to the OSP
- The OSP will ensure the purchasing amount does not exceed the funding budgeted for the equipment
- The requisition is submitted via the Banner system and support documentation submitted by email to the OSP
- The OSP will review and approve the requisition and forward the supporting documentation to purchasing for review, approval, and creation of a purchase order
- When the equipment arrives it will be tagged by the director of material management
- To maintain effective inventory control of equipment, the director of material management should use uniquely numbered identification tags affixed to equipment
- To the extent there is any inconsistency between Florida Tech’s policies and the terms and conditions of a sponsoring agency's award under which equipment is provided, the award's terms and conditions shall govern
Typical functions of the PI may include
- Keeping records of capital equipment
- Coordinating physical inventories of capital equipment
- Reviewing fabrication requests for contract/grant compliance
- Budgeting and transacting equipment and fabrication expenditures
- Processing and filing Fabrication Requests and Placement in Service forms
- Notifying the Office of Fixed Asset Accounting when equipment and fabrications are to be placed in service and can be capitalized
- Recording movements of federally-funded or federally-titled equipment
- Processing and filing Notifications of Disposition of Equipment for trade-ins, transfers, loans, donations and sales
- Providing policy guidance on disposal requirements for equipment decommissioning and returns of equipment to sponsors, or title transfer to Florida Tech when appropriate
- Processing police reports on losses and thefts
- Processing and filing documents related to receipt of government surplus or loaned equipment
- Processing and filing reports from subcontractors on loss, damage or destruction of equipment in subcontractors' possession
- Processing and filing department signature authority forms
The OSP shall provide policy and procedural guidance to the schools/colleges pertaining to all equipment management matters. The OSP shall also respond to requests for reports and information from sponsors, auditors, and other parties.
- Notification procedures for government-furnished property (GFP): When the OSP is notified via sponsor correspondence of an award receiving government-furnished equipment, an email will be generated and distributed to the PI and OSP team members.
- Reports: The OSP shall submit all required GFP reports including specific forms for GFP disposal to the federal government in accordance with the terms and conditions in the award document.
Office of Management and Budget (OMB) Circular A-21 COST PRINCIPLES FOR EDUCATIONAL INSTITUTION, specifically sections J.14 & J.18
OMB Circular A-110 GRANTS AND AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, specifically sections 33 and 34
FEDERAL ACQUISITION REGULATIONS (FAR), specifically parts 45 and 52.245