5 - 12.3
Administrative policy regarding acquisition, inventory control, and sales or other disposal of capital assets
- Policy purpose. The purpose of this policy is to document the responsibilities and requirements related to capital asset handling and recordkeeping including acquisition, physical inventory, and sales or other disposal of these assets.
- Definitions. Capital asset. For the purposes of this policy, “capital asset” shall mean any tangible personal property such as equipment, furniture, or other assets with a value of five thousand dollars or more, including all costs to prepare the asset for use (installation, shipping and handling, etc.), and an estimated useful life in excess of one year. This definition excludes library books and real property. Real property is land and any assets attached directly to land such as buildings and building improvements.
- Scope and eligibility. This policy applies to any capital asset purchased or leased with Kent state university funds or funds within the control of Kent state university.
- Procedure and implementation.
- Acquisition. Upon delivery and/or installation and prior to being placed in service, each capital asset must be tagged and assigned an inventory control number by the controller’s office. The department acquiring the asset is responsible for affixing the tag to the asset and completing the related documentation to provide to the controller’s office.
- Inventory control. The components of inventory control include recordkeeping and maintenance of assets. Recordkeeping for capital assets shall be administered through the controller’s office. The acquiring department is responsible for maintaining the asset in a location and manner to avoid damage, theft, or other loss of the asset. The acquiring department is also responsible for performing a physical inventory of all tagged assets every two years in order for the university to maintain compliance with applicable federal and state regulations. The bi-annual inventory is initiated by the controller’s office and the acquiring department is responsible for verifying that every asset listed on the report is still present in the department and in good working order. The department shall notify the controller’s office of any changes in the asset status or location.
- Sale or other disposal. The department is responsible for notifying the controller’s office of the sale or disposal of any asset, but the department is not permitted to transact an asset sale or other disposal without the involvement of the procurement department. Asset(s) acquired with funds from sponsored programs shall be disposed of in accordance with paragraph (D)(4) of this rule.
The procurement department is responsible for the sale or other disposal of capital assets by one of the following methods:
- Redistribute to another department of Kent state university through listings on the procurement department website;
- Pursuant to competitive bidding procedures with the asset being sold to the highest bidder;
- In an advertised public sale with each asset having a price assigned and sold to the public at a stipulated time and place; or
- Surplus asset(s) with minimal remaining value may be disposed of in the way most economical for the university.
- Ineligible bidders or purchasers. No employee of the university meeting one or more of the following conditions may bid on or purchase the asset offered for auction or sale by the university without the express written permission of the vice president of the applicable division and the director of procurement:
- Participated in the decision to dispose of the capital asset;
- Participated in the preparation of the asset for sale;
- Participated in determining a method of sale or other disposal; or
- Acquired information not otherwise available to the general public regarding usage, condition, quality, or value of the asset.
To qualify as a purchaser of such asset, an employee of the university must pay a price higher than any other viable offer including any value received from scrapping or recycling the asset.
- Capital assets acquired with funds from sponsored programs. Special recordkeeping and disposal requirements often apply to capital assets purchased under a federal award or other sponsored program. In cases where the terms of the grant or contract are more restrictive than the university’s policy, those terms shall govern. In cases where the requirements imposed are less restrictive, the university’s policy shall apply.
Disposition of sponsored program assets must meet all university and sponsor requirements and be coordinated through the office of sponsored programs to ensure appropriate approval before the university controller’s office and procurement department will give final approval. In the event of relocation of a principal investigator (PI) to another institution, the PI may be permitted to transfer the equipment from the PI’s ongoing grant(s) or contract(s) with prior approval of the appropriate university authority in conjunction with the terms of the grant(s) or contract(s). Additionally, it is the PI’s responsibility to work with the university controller’s office and the procurement department to ensure that all university asset disposition requirements have been met prior to physically transferring the equipment.
Additional details regarding requirements specific to sponsored programs are provided for in rule 3342-10-03.1 of the Administrative Code.
- Violation. Any violation of this policy may result in the department being subject to supervised inventory control measures and any person who violates this policy may be subject to disciplinary actions up to and including termination.
Policy Effective Date:Mar. 01, 2017
Policy Prior Effective Dates:11/4/1977, 8/31/1979, 3/11/1982, 4/14/1989, 7/27/1990, 8/16/1991, 3/4/1994, 3,7/2000, 6/4/2003, 6/1/2007, 8/22/2008, 3/1/2015