PROPERTY ACCOUNTING GENERAL INFORMATION
The University of Miami follows standardized policies with respect to the acquisition, capitalization, management and disposition of equipment for financial statement purposes, compliance with government/sponsor requirements, and to support indirect cost recovery.
DEFINITION FOR CAPITALIZATION OF MOVABLE EQUIPMENT
1. The unit cost of each item is $2,500 or more
2. It has a useful life of more than one year
Policy B040 – Equipment Capitalization
1. Expenditures for repairs, maintenance or replacement of component
parts which do not extend the unit’s original life or significantly
enhance its net value
2. Expenditures incurred in demolishing or dismantling equipment
including those expenditures related to the replacement of units or
DUTIES AND RESPONSIBILITIES OF PROPERTY ACCOUNTING
1. Maintain University of Miami’s official capitalized equipment records to
reflect addition of new equipment, modifications to equipment,
changes in location, custodianship, and disposal
2. Administer and assist equipment management activities of custodial
departments, including recording and reviewing for correctness the
results of periodic physical inventories, modifying equipment records,
and assisting in deleting and retiring equipment as directed by
3. Provide guidance to departments to facilitate maintenance of
4. Conduct reviews and/or audits of the capital equipment inventory as
5. Oversee procedures for recycling or disposing of movable assets to
insure that adequate supporting records are kept to document a sale,
trade-in or other disposition
CUSTODIAL DEPARTMENT’S RESPONSIBILITIES
Each department is directly responsible for the control, use and security of movable equipment in its possession. In accordance with this responsibility, each department is to have a Property Administrator to facilitate processes and communication. The Department’s Property Administrator or designee and others who are directly involved in equipment purchasing and inventories should be familiar with University policies and procedures.
The Department’s Property Administrator should be a business manager or staff assistant who reports directly to the department head. Responsibilities of the Department’s Property Administrator include:
1. Complete annual certification of capital equipment inventory
Policy B053 – Annual Equipment Verification and Approval Submission Equipment Web System Instructions
2. Reinforce University policies and procedures within the department
3. Assist Property Accounting in locating and tagging of new equipment
4. Throughout the year, record the movement and disposal of equipment
in UMAPPS and complete disposal on the forms provided by Property
Accounting, and advise Property Accounting regarding such changes
Policy B043 – Permanent Changes of Equipment Within the University
Policy B047 – Sale, Disposition of Equipment
All sales of equipment need to be coordinated through Property Surplus.
Policy B049 – Deletion of Equipment from University Assets
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