Issued: October 31, 1996
Owner: University Comptroller
Latest Revision: November 28, 2007
FIXED ASSETS ACCOUNTING (PROPERTY) - PROPERTY INCLUDED AND
**ACTIVE BUT UNDER REVISION**
This policy is currently under revision at the University. Although the statements herein reflect enforced policy guidance, please contact the "Owner" listed above if you have questions about how this policy applies to your office. The statements herein are to be used as general guidance until the policy has been revised and added to the University Policy Directory. Thank you.
This policy describes what property is included and excluded in UVA’s Fixed Assets (Property) Accounting.
2.0 Policy [Top]
In this policy, Property refers to one of three categories of equipment which qualify as capital equipment (meets the minimum threshold value of $5,000 or qualifies as an ETF asset): 1) Contractor-acquired or fabricated equipment (with title passing immediately to UVA) or 2) Contractor- acquired equipment (with title remaining with the Government or Sponsor) and 3) Government-Furnished Equipment (equipment loaned by Government where title remains with Government).
The following definitions apply:
GOVERNMENT PROPERTY means all property, regardless of cost, where title remains with the Government under the terms of a contract/grant. Government Property includes both Government-furnished (GFE) property and contractor-acquired property (CAE) as defined below:
GOVERNMENT-FURNISHED PROPERTY is property in the possession of, or acquired by, the government and later delivered or made available to the contractor.
CONTRACTOR-PURCHASED PROPERTY is property procured or provided by the contractor to perform a contract. The contractor is entitled to be reimbursed as a direct item of cost under the contract; title is vested with the University in most cases.
CAPITAL EQUIPMENT means property with an expected service life of one year or more, and a unit acquisition cost of $5,000 or more.
ACCESSORY ITEM means an item enhancing the operation of equipment but not essential for its operation. Accessory components (attachments) should be coded as capitalizable equipment if the unit cost is $5,000 or more or if they are acquired with a base unit cost of $5,000 or more.
AUXILIARY ITEM means an item essential to the operation of the basic unit of equipment.
The following classes of Government property are excluded from this policy:
1) REAL PROPERTY including land and land rights, ground improvements, utility distribution systems, buildings and structures acquired under a government contract with titles vested in the government under the contract terms.
2) Equipment or materials under the capitalization threshold
Note: It is the general policy of the University of Virginia that additions to plant and other expenditures for real property not be undertaken as part of a contract for research if the contract requires that title would vest outside of the University. Exceptions may be made under unusual conditions, where such additions are necessary for the research, and would not be required or desired at the University, if the contract were not in effect.
During initial planning, any project involving real property should be discussed with the Executive Vice President and Chief Financial Officer before any work is undertaken on the design, alteration, or construction of a building. If the work is to be charged to a sponsored research project, sponsor approval must be obtained as required by the contract.
See also: Procedure 6-40, "Object of Expenditure Codes and Definitions," section "38000 Equipment."
3.0 Definitions [Top]
4.0 References [Top]
5.0 Approvals and Revisions [Top]
Previous version in effect from 10/31/96 to 9/21/04 available in policy archive.
Previous version in effect from 9/22/04 to 4/25/05 available in policy archive.