Policy: X.C.1x (inactive)
Issued: October 31, 1996
EQUIPMENT TRUST FUND (ETF)
This policy describes the Higher Education ETF established to provide new or updated instruction and equipment for State institutions of higher learning.
2.0 Policy [Top]
The Higher Education Equipment Trust Fund was established as a result of a need for new or updated instruction and research equipment in the academic areas of State institutions of higher education. These needs were broken down into five categories:
- Academic Computing
- Biological and Physical Sciences
To finance these needs, the Virginia College Building Authority (VCBA) sold $90 million of revenue bonds on July 30, 1986. Allocations of this money will be made to the State institutions of higher education over a three-year period. These institutions will not actually receive the allocation, but will submit equipment invoices for payment by the VCBA. The VCBA will hold title to Equipment Trust Fund purchases and will lease this equipment to those institutions. The State funds the institution's Lease payment.
Basic stipulations for Equipment Trust Fund items are:
- Equipment must have a cost of $500 or greater,
- Equipment must be used within the Commonwealth of Virginia,
- Equipment must have a useful life of three years or more,
- Certain types of equipment are excluded:
- Library books, materials, and shelving
- Microfilm collections and materials
- Software for microcomputers
- Office equipment
- Transportation equipment
- Desks, chairs, and tables
- Equipment normally affixed to a building or functional as a part of an operating system of a building:
- Climate control and security systems
- General telecommunications equipment, except that required for approved programs, related courses or research activities
Equipment Trust Fund assets can be visually distinguished from University-owned assets by the letters "VCBA" and an orange vertical stripe on the asset tag. Also, the 7-digit asset number will begin with the letter "E."
All participating departments should retain Equipment Trust Fund documentation in accordance with University records retention policy and procedures.
Policy II.C.1., "Records Retention and Disposition."
Since this equipment will not be paid for or owned by the University, special procedures will need to be followed for ordering, approving payment of, and controlling Equipment Trust Fund items.
Equipment Split Funded With Federal Grant Monies
When equipment is split funded between ETF funds and grants from federal agencies, title technically belongs to the Virginia College Building Authority (VCBA), even though the federal agency may have the right to transfer the equipment. If the agency exercises its right, the department that purchased the equipment with federal grant funds must replace the equipment, so as not to violate the terms of the VCBA lease agreement.
Questions concerning research grant funds should be addressed to the Office of Sponsored Programs, 924-4270.
ETF financing and the related Agreement form are completely separate from the Treasury Board financing program. Questions concerning Treasury Board financing should be directed to the Budget Office, 924-3349.
Policy VII.R.6, "Treasury Board Equipment Financing Program."
- 10-30, "Ordering Equipment Trust Fund (ETF) Items."
- 10-31, "Approving Payment for Equipment Trust Fund (ETF)"Invoices."
- 10-32, "Controlling Equipment Trust Fund (ETF) Items."
- 10-33, "Seeking Reimbursement for Equipment Trust Fund (ETF) Items."
- 10-34, "Preparation of Purchase Requisition for Equipment Trust Fund (ETF) Items."
- 10-35, "Preparing Equipment Trust Fund (ETF) Financial Agreement."
3.0 Definitions [Top]
4.0 References [Top]
5.0 Approvals and Revisions [Top]