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Asset Management Policy and Procedures

Asset Management Policy & Procedures

The ownership of all Nevada System of Higher Education (NSHE) property is vested in the Board of Regents of the NSHE. Inventoried equipment is defined as all merchandise meeting the following criteria:

  1. has a unit cost of $5,000 or more
  2. is complete in itself
  3. does not lose its identity even though it may become a component part of another item when placed in use
  4. is of a non-expendable, non-repairable, durable nature with a life expectancy of one year or more

Included, regardless of cost, are firearms of all types (i.e., revolvers, shotguns, rifles, starter guns) and pyrotechnic devices. Also included are some components of buildings or facilities that meet the above criteria such as generators, score boards, etc.

The method of payment or the source of funding does not effect the definition of inventoried equipment. A single lump-sum payment, a down payment and/or staggered payments over any period of time, a lease-purchase agreement (with either the equipment supplier or a third-party financing entity), and a gift are all proper and possible ways of paying for inventoried equipment. Equipment that meets the above definitions and is acquired as part of the construction or remodeling of a building or facility is to be separately inventoried. Equipment that is leased (with no intent to purchase), rented, or placed for demonstration purposes only is not inventoried. Leased equipment that has only a nominal buy-out clause is to be considered a lease-purchase.

All NSHE employees are responsible for the safekeeping of all System property regardless of value. Applicable chairpersons, directors, or administrative officers are responsible for ensuring equipment is secure and for timely reporting of equipment status and discrepancies. 


Procedures

The most common method of acquiring equipment is through the purchase order process, i.e.: a requisition is submitted, along with a quotation or bid from a supplier; the Purchasing Department Buyer issues a purchase order, and coordinates with the requisitioning department, the Equipment Inventory Section, and the institution's Controller's office, to ensure both the proper receipt of the equipment and also the correct and proper initial recording of the new equipment.

All purchases and payments of inventoried equipment are to be coded as Object Code 60. There will be no exceptions to this, and the Purchasing Department Buyer, in cooperation with the applicable institution's Controller's office, will ensure proper coding of all transactions.

The cost of equipment includes all directly associated expenses necessary to: deliver and receive the equipment, place the equipment in its proper location, have the equipment installed and made operable, and any associated initial supplies necessary for the equipment to operate. If inventoried equipment is to be fabricated, the responsible department must make arrangements and have a fabrication number assigned (for tracking purposes) prior to beginning the fabrication process.

Equipment purchased using some form of extended payment is to be treated exactly the same as equipment purchased with a single payment. All payments are to be coded as Object Code 60. The equipment's value is the total sum of all payments including interest.

The date that inventoried equipment is placed in service is the date that will be used for purposes of recording useful life and depreciation. For equipment valued at less than $50,000, the Payment Voucher (PV) date will generally be used as the "in-service" date. For equipment with a total cost of $50,000 or more, and equipment acquired through any form of multiple payments, will have its "in-service" date determined through direct contact and confirmation with the user department.

A betterment of inventoried equipment is any modification which changes or alters a unit's original function/design and certain major repairs (over $5,000). Contact BCN Purchasing to determine if a repair is deemed major. The inventory number will remain unchanged with the betterment, but the depreciation schedule and the useful life may need to be adjusted. Adjustments, if necessary, will be coordinated with the institution's Controller's office.

A fabrication is a piece of equipment that is being constructed at the University by University personnel. Generally, each part of a fabrication would not be large enough (over $5,000) to be capitalized and would not function as a separate piece of equipment. There are exceptions, as in lasers, where the parts that make up the finished piece of equipment are over $5,000 but these parts must meet the unable to function alone criterion. If a piece of a fabrication can function on its own, and is over $5,000, it is a piece of equipment and must be tagged separately. A fabrication must, when complete, be $5,000 or over in value.

Equipment being fabricated by outside vendors is not a fabrication. Equipment, such as a seismic table that is constructed to be destroyed in an experiment is not a fabrication. A fabrication should not last longer than two years, if it does go beyond the two year limit-a request to continue should be submitted in writing to purchasing with a detailed explanation as to why the project was not finished in the allotted time, as well as supplying a new projected ending date. Based on the information given, Purchasing will make the decision regarding continuation of the project under the designated fabrication number. Fabrications must have a termination date.

The movement or transfer of any inventoried equipment from its recorded location must be immediately reported to the Equipment Inventory Section. If inventoried equipment is to be loaned to an entity outside NSHE, a written agreement with the other entity, approved by the president of the institution, and recorded in the Equipment Inventory Section, must be completed detailing the terms of the loan and the responsibilities of all parties. If responsibility for the equipment is being changed between departments, that information must be reported to the Equipment Inventory Section. If equipment is found to be missing or is stolen, a police report is to be initiated immediately, and if the equipment was inventoried, the Property Inventory Section must be notified.

Disposal of NSHE property will be coordinated through the Purchasing Department. Purchasing will be notified when property, especially inventoried equipment, is deemed to no longer be of use to the responsible department. Purchasing will decide on a course of action based on age, condition, usefulness to other departments, disposal or salvage value, and costs to remove the property. If the property is deemed to be worthless or a safety hazard, Purchasing will coordinate its disposal as refuse. Equipment and furniture disposed of by one department but deemed to have some useful life will normally first be made available to other departments. NSHE departments may avail themselves of this merchandise without cost other than moving expenses. Merchandise not claimed by NSHE departments beyond thirty (30) days, and items deemed to be unacceptable for re-use within the System, will be disposed of through public sale, sale to surplus or salvage dealers, or disposal through donation or refuse.