Standard Operating Procedures

SUBJECT: Tagging Moveable Equipment
SOURCE: Capital Asset Management, Office of the Treasurer
ORIGINAL DATE OF ISSUE: May 2005
DATE OF LAST REVISION: March 2013
CSOP NO: 5.0
RATIONALE: To provide guidelines for the tagging of moveable capital and non-capital equipment.
CSOP:
  1. Tagging moveable capital equipment
  2. Tagging of federally owned equipment
  3. Tagging of capital leased equipment
  4. Tagging of moveable non-capital equipment
  5. Replacement and removal of inventory tags
  1. Tagging moveable capital equipment

    To comply with state and federal standards moveable capital equipment must be tagged. (Reference U.S. Office of Management and Budget: Circular A110)1.

    Moveable capital equipment in the custody of Indiana University must meet two specific criteria in order to qualify as a capital purchase. It must have an acquisition value of at least $5,000.00 and a useful life expectancy of one year or greater.

    Procedures for tagging moveable capital equipment:

    • The Indiana University tag number must be attached to the asset within thirty days (30) of asset creation, and the information updated in the Capital Asset Management System. The capital asset tag is yellow.

      If the asset cannot be tagged within thirty days (30) a note should be entered in the Org Text Line. Use the Asset Edit document in KFS to add a note indicating why the asset can't be tagged and the approximate in service date.

    • The tag should be placed on a flat surface near the manufacturer's logo unless it is attached to a re-moveable component or is inaccessible for inventory purposes. In either case, the tag should be placed in a visible, permanent location since it will be scanned.

    • If it is not possible to tag the item due to its size, number of components, or delicate nature (i.e. microscope objectives, etc.), then a capital letter "N" should be placed in the tag number field of the Asset Edit document in the Capital Asset Maintenance System to indicate that the asset can not be tagged. In addition, the asset status should be set to "C" Active and Non-accessible.

      The assets that might have a "N" for the tag are:

      • Too delicate/fragile to tag. For example: laser optics.
      • It would de-face/de-value the asset. For example: antique furniture or art work.
      • It would make the asset un-usable. For example: the rotor used with a centrifuge/balance scale. It would throw off the balance to tag it.
      • The asset is non-accessible. For example: Components inside of other equipment or the satellite dish on top of a tower.
      • The size of the asset. For example: No surface flat enough or large enough for the size of the tag.
      • Surface conditions. Asset is attached to or surrounded by temperatures too hot, cold or wet. For example a submersible pump.
      • Asset is Impractical to scan. For example: Asset in radiation/magnetized areas. Modular furniture.
      • Out of reach. For example: roof mounted assets without stair access.

      If you have an asset that can't be tagged that is not on the list above please contact the University Capital Asset Office at capasset@iu.edu for an exception to standard.

    • When assets cannot be tagged because they are internal to an existing asset a note should be entered in the Org Text Line indicating the tag number or asset number the internal asset was installed into. The Org Text can be entered using the Asset Edit document in the Capital Asset Management System.

    • Any asset that adds to an existing system and cannot be used independently should be merged into the primary asset. (Subject to regular Capital Asset guidelines concerning merging)

      See CSOP 15.0 Asset Merge

    • Capital assets are created based upon information from the Asset tab on a Requisition in the KFS Purchasing Section. In some instances, the Capital Asset tab information may not provide a clear indication that there is more than one asset being purchased. This usually occurs when purchases are made in 'bundles" as is the case with mass purchases of computer equipment. Physical inspection of the asset(s) upon tagging will confirm the need to separate it into the correct number of assets. Upon notification by the department, the University Capital Asset Office will issue an asset separate to create the correct number of assets.

      See CSOP 31.0 Mass Purchase

    • Reviewing a capital asset for tagging should include verifying that the asset type code matches the type of moveable equipment being tagged. The asset type code chosen will assign a useful life to the asset which will set the deprecation of the asset.

    • Reviewing a capital asset for tagging should include verifying its description in the Capital Asset Management System to make sure the asset can be correctly identified.

    • When moveable capital equipment is taken to Surplus Stores the yellow capital asset tag should remain on the equipment and an Asset Transfer Document initiated in the Capital Asset Management System within thirty days (30) of the asset having been sent to surplus.

      See CSOP 3.0 Asset Transfer

  2. Tagging of federally owned equipment

    Federally owned capital assets in which title is vested in the Federal Government must be tagged with a Federal Government tag and a yellow university capital tag. These assets will appear on the tagging report with the following object codes: 7031, 7036 or 7046. When an asset has a government owned object code you will be contacted by the University Capital Asset Office to coordinate the tagging of the government equipment.

  3. Tagging of capital leased equipment

    When one FAS 13, Accounting for Leases, capitalization criterion has been met a capital leased equipment asset will be created and tagged as follows:

    • If the unit cost is $5,000 or greater the asset will be tagged with a yellow tag.
    • If the unit cost is below $5,000 the asset may be untagged or tagged with a white tag at the discretion of the organization.

  4. Tagging of moveable non-capital equipment

  5. Moveable non-capital equipment in the custody of Indiana University must have an acquisition value of less than $5,000. Moveable non-capital equipment may be tagged at the discretion of the organization. However, the University Capital Asset Office does not require that moveable non-capital equipment be tagged.

    Procedures for tagging of moveable non-capital equipment:

    • Moveable non-capital equipment may be tagged with (1) tags purchased from the University Capital Asset Office or (2) a tag purchased by the organization if the tag has been approved by the University Capital Asset Office.
    • The tag should be placed on a flat surface near the manufacturer's logo unless it is attached to a removeable component or is inaccessible for inventory purposes. In either case, the tag should be placed in a visible permanent location since it may be scanned.
    • If it is not possible to tag the item due to its size, number of components, or delicate nature (i.e. microscope objectives, etc.), then a capital letter "N" should be placed in the tag number field of the Asset Tagging screen in the Capital Asset Management System to indicate that the asset can not be tagged.
    • Non-capital assets should be taken to Surplus Stores. However, non-capital assets do not require an asset transfer document to be issued. The white non-capital asset tag or the organizations tag should be removed when taken to Surplus Stores.

      See CSOP 3.0 Asset Transfer

  6. Replacement and removal of inventory tags

    Procedures for the replacement and removal of inventory tags:

    • When moveable capital assets are taken to Surplus Stores the yellow capital asset tag should remain on the equipment.

      Note: the white non-capital asset tag or the organization's tag should be removed when assets are taken to Surplus Stores.

      See CSOP 3.0 Asset Transfer

    • Missing tags found during the inventory process or at any other time for both moveable and moveable non-capital equipment should be replaced on the equipment with a new tag. The tag number should be changed using the Asset Location Global document within the Capital Asset Management System.
DEFINITIONS: Capital Assets must have an acquisition value of at least $5,000 and a useful life expectancy of one year or greater.

Equipment - The term "equipment" includes delivery equipment, office equipment, machinery, furniture and fixtures, factory equipment and similar fixed assets.

Non-Capital Equipment must have an acquisition value of less than $5,000.

Systems are defined as components that work together to perform one function. These components must be necessary for the system to function.

CROSS REFERENCE: CSOP 3.0 Asset Transfer
CSOP 4.0 Physical Inventories
CSOP 8.0 Capitalization of Moveable Equipment
CSOP 9.0 Capital Lease Agreements
CSOP 15.0 Asset Merge
CSOP 31.0 Mass Purchase
Accounting Administration Policy FIN-ACC-I-170 Capital Movable Asset Physical Inventories,
      Tagging and Location Changes

Accounting Administration Policy FIN-ACC-I-270 Ownership of University Capital Assets
RESPONSIBLE ORGANIZATION: Organizations that purchase and maintain capital equipment

1Uniform Requirements for Grants and Other Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit Organizations.