Issued: October 31, 1996
Owner: University Comptroller
Latest Revision: July 6, 2016
**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 describes the State Council for Higher Education Virginia (SCHEV) policy governing its Equipment Trust Fund (ETF) program and outlines the requirements for higher educational institutions within the State to utilize its annual ETF funding allocation to purchase equipment.
2.0 Policy [Top]
The Equipment Trust Fund was established in 1986 by the State as a result of recognizing the 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:
To provide the financing for these ongoing equipment purchases, the Virginia College Building Authority (VCBA) sells annual revenue bonds which provide the reimbursement funding to State institutions for their actual ETF purchases for the prior year. Institutions submit a final listing of actual equipment purchases at the end of each fiscal year for reimbursement by the VCBA. The VCBA will hold title to Equipment Trust Fund purchases until the equipment financed under that bond is satisfied (at the end of its bond period of 7 years), at which time it will release title of this equipment to each institution. The bond issuance for each year is also referred to as the “Lease Year”. (i.e Lease Year “27” are purchases in FY’14 with title granted at end of FY’21)
Basic stipulations for Equipment Trust Fund items are:
Equipment Trust Fund assets can be visually distinguished from other University-owned assets by the prefix letter(s) "E" (for UVA) and "CE" (for UVA Wise) at the beginning of an asset number. (Example: E834156)
All participating schools and organizations must retain Equipment Trust Fund documentation in accordance with University records retention policy and procedures. http://uvapolicy.virginia.edu/policy/IRM-017
Since this ETF equipment will not be owned by the University until the designated lease year is complete, special purchasing procedures must be followed to effectively control Equipment Trust Fund items.
Equipment Split-Funded using Federal Grant funds
If a school would like to split-fund equipment between ETF funds and grant funds from federal agencies there are two essential requirements: 1) Sponsoring federal agencies must grant title to any equipment being purchased with their grant funds to UVA as the award recipient immediately upon purchase and must not have any stipulations or restrictions regarding future dispositions of that funded equipment. This avoids any conflict with title to the equipment as the Virginia College Building Authority (VCBA) retains title on all ETF equipment purchases until the 7 year bond or lease period is complete. 2) if split- funding includes sponsor research, the code SCHEV “110” MUST BE assigned and federal agency funding portion must be 50% or greater of the total ETF purchase. Note: The federal agency often retains the right to transfer the equipment at the end of the grant. If the agency exercises its right, the department that purchased the equipment with federal grant funds must replace the affected ETF equipment with a valued item equal to the net book value of 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.
3.0 Definitions [Top]
4.0 References [Top]
5.0 Approvals and Revisions [Top]
Previous version in effect from 10/31/96 to 4/25/05 available in policy archive.
Maintained by University Comptroller
© 2000 by the Rector and Visitors of the University of Virginia