Capital Asset Management & Inventory

A Business Process Managed by Accounting Services

These business processes involve establishing and maintaining the equipment property control for the University of Minnesota. Equipment is defined as tangible, movable, non-expendable personal property items and can be classified as either capital or non-capital equipment assets. The property control system consists of policies and procedures related to the acquisition, identification, management, and disposal of equipment owned by, or controlled by, the Board of Regents of the University of Minnesota.

Policies

Business Processes

Asset Management

AM01 Asset Creation
AM02 Asset Maintenance, Retirement, Transfer
AM03 Asset Accounting
AM04 Mass Change
AM05 Physical Inventory
AM06 AM Close
AM07 Asset Reporting
AM08 WorkCenter
AM80 Batch Processing
AM90 Integration

Capital assets are items that are used in the operations of the University of Minnesota but are not intended to be sold as part of such operations. Capital assets must have:

  • an acquisition value
    AND
  • a useful life greater than or equal to the capitalization threshold for the asset category to which they belong.

Examples of capital asset categories include land, buildings, capital equipment, library collections, etc.

Capital assets are also known as "fixed assets" and "property, plant, and equipment."

Capital equipment assets are tangible non-expendable personal property items with:

  • an acquisition value of $5,000.00 or greater per item
    AND
  • an estimated useful life of greater than one year.

A capital equipment asset must maintain its identity over the course of its useful life.

Custodial organizations (DeptIDs) are responsible for all of the capital and non-capital equipment assets in their custody.

Non-capital equipment assets are:

  • non-expendable personal property items with an acquisition value of less than $2,500.00 per item
    OR
  • an estimated useful life of less than one year.

Custodial organizations (DeptIDs) are responsible for all of the capital and non-capital equipment assets in their custody.

Material and equipment in the possession of, but not owned by, the University of Minnesota as part of a sponsored project. Material and equipment of this nature where the sponsor is the Federal government are referred to as Government Property. Government Property is classified as either:

  • Government-Furnished Property
    or
  • Contractor-Acquired Property.

Government-Furnished Property is material and equipment acquired, funded, and owned by the Federal government that is made available to the contractor.

Contractor-Acquired Property is material and equipment acquired and used by the contractor, but which is funded and owned by the Federal government.

The University of Minnesota is responsible for all sponsor-owned property in its possession. Inventory Services is responsible for verification and reporting of all sponsor-owned equipment that meets the University's definition of capital equipment assets.

Tagging identifies an equipment asset as a unique item and facilitates the periodic verification of equipment assets.

Inventory Services tags capital equipment asset acquisitions with bar-coded University ID number labels (asset tags).

Sponsor-owned equipment that meets the University’s definition of capital equipment assets may be tagged with a sponsor ID label and/or a University ID number label.

Bar-coded University ID number labels for non-capital equipment assets can be purchased from UStores (item number GS88001) for those organizations that track non-capital equipment assets.

Inventory Services maintains and tests the property control system by conducting periodic verifications of the existence, location, and use-status of each University capital equipment asset.

These verifications also include those sponsor-owned equipment items, which meet the University’s definition of capital equipment assets, in the possession of the University of Minnesota.

Periodic verifications satisfy the requirements of OMB Circular A-110 and FAR support the annual production of the University's financial statements, support the computation of the University's negotiated Facilities and Administrative (F&A) cost recovery rates, and demonstrate the University's stewardship in controlling equipment assets in its possession.

Inventory Services reports existence, location, and use-status information to sponsoring agencies based on the terms of sponsored projects. Federally-funded sponsored projects may require annual and final reports related to equipment.

Forms

All forms can be found in the Forms Library.

  • BA 1393: Capital Equipment Asset Disposal Form
  • UM 1601: Capital Equipment Asset Fabrication Form
  • UM 1674: Capital Equipment Asset Physical Data Change Form
  • UM 1744: Capital Equipment Asset Trade In Form
  • UM 1556: Capital Equipment Asset Transfer Form
  • UM 1561: Capital Equipment Assets Donated to University Repor
  • UM 1677: Capital Equipment Assets Off Campus Request Form
  • UM 1675: Capital Equipment Assets Transferred from Another Institution Report
  • UM 1532: Property Loss Notice - Laptop Computer Program
  • UM 1731: Property Loss Report - University Property
  • UM 1589: Capital/Operating Lease Questionnaire

Frequently Asked Questions

If a department does not see a needed location in the EFS location table, they should contact their local Departmental Space Coordinator (DSC) to see if the location is in U-Space. Data from the U-Space system is fed into EFS twice a year.

The DSC is the person assigned by the unit or department to coordinate the space inventory with the Office of Space Management. The DSC is also responsible for updating U-Space with space additions and corrections that occur in between space inventories. An addition or correction will not be reflected in EFS until the addition or correction is reflected in U-Space. Even then, the addition or correction will only be reflected in EFS after the next semi-annual EFS/U-Space table reconciliation has been performed by Inventory Services and EFS Module Support (units within the Controller's Office).

Changes to existing asset locations are identified and updated manually in EFS by Inventory Services.

Yes, a list is posted here (xlsx). Please keep in mind that the most current list of Asset Locations for use on financial transactions is in EFS itself.

The item must meet the definition of a capital asset or a capital equipment asset in order to be capitalized:

Capital equipment assets are tangible non-expendable personal property items with:
an acquisition value of $5,000.00 or greater per item
AND
an estimated useful life of greater than one year.

A capital equipment asset must maintain its identity over the course of its useful life.

Custodial organizations (DeptIDs) are responsible for all of the capital and non-capital equipment assets in their custody.