Standard Operating Procedures

SUBJECT: Equipment Loan/Return (off premise)
SOURCE: Capital Asset Management, Office of the Treasurer
ORIGINAL DATE OF ISSUE: May 4, 2005
DATE OF LAST REVISION: March, 2010
CSOP NO: 6.0
RATIONALE: To maintain proper controls and define responsibilities for capital equipment removed from university premises and to comply with Indiana University Accounting Administration Policy FIN-ACC-I-140.
CSOP: Initiation of the Equipment Loan/Return Document is required when capital equipment is borrowed from Indiana University (off premise) for more than thirty days, and the equipment resides at a location which is not directly associated with the university i.e., faculty or staff personal property. The loan document must be completed before the equipment is removed from the campus.

In accordance with IU policy, equipment may be loaned for a period of two years or less, and the loan document must be completed within thirty days of the loan. If the equipment is not returned at the end of two years a new Equipment Loan/Return Document must be processed to extend the loan.

Equipment residing at an off-campus/off site, institutional location does not require an Equipment Loan/Return Document. An off-campus/off-site institutional location refers to any school or institution associated with Indiana University, i.e., equipment located at the Bloomington Hospital. Equipment residing at a research location affiliated with Indiana University is also considered off-campus/off site. The off-campus/off-site address must be entered on the Tag an Asset screen within the Capital Asset Management System.

The Equipment Loan/Return Document allows organizations to issue loan documents for non-capital assets. However this requires that the organization has created the non-capital asset within the Capital Asset Management System.

Procedures for Processing an Equipment Loan/Return Document
  1. Initiating the Equipment Loan/Return Document
  2. Initiating a new Equipment Loan/Return Document to extend a loan
  3. Initiating a new Equipment Loan/Return Document to return the equipment to the university
  4. Approvals
  5. Responsibilities
  6. Insurance Coverage
  1. Initiating the Equipment Loan/Return Document

    1. Three events must occur before the Equipment Loan/Return document is initiated: 1) the asset must be created in the asset database, 2) the IU tag must be attached to the equipment, and 3) the tag number must entered into the Capital Asset Management System via the Tag an Asset screen.
    2. On the Equipment Loan/Return Document once the asset number has been entered or retrieved the system will require the following:

      • Borrower id
        1. The borrower id entered on the loan document must be the person responsible for the equipment. Normally this will be the faculty or staff member in possession of the equipment.
        2. If the borrower is not an active KFS user the system will require the user to check "Signature on File" check box.
      • Expected Return Date
        The Expected Return Date must not exceed two years.
      • Borrower's address
      • The system will require the user to enter the borrower's address (personal residence.) To enter the borrower address click on the Address button (the button depicting a little yellow house to the right of the screen.)

        If the equipment is located at the borrower's personal residence the user will only need to complete the borrower's address. If the equipment is not located at the borrower's personal residence then the second address (stored at address) should also be completed.

    3. When initiating the Equipment Loan/Return Document the "return date" should be left blank.

  2. Initiating a new Equipment Loan/Return Document to extend a loan

    1. To extend a loan, a new Equipment Loan/Return Document must be processed. After entering an asset number or selecting an asset number from the Capital Asset Lookup Screen notice that the Borrower ID, and Expected Return Date information is retrieved. You will also notice a button titled "Renew Loan".
    2. Clicking on the "Renew Loan" button will create a template of a return document. A new document number will be assigned by the system, thus creating the return document. You will also notice that the return date has been entered.
    3. Clicking on "OK" will route the return document FYI to the normal routing path. After clicking on "OK" notice that the document number has changed back to the document number assigned when the Equipment Loan/Return document, was first opened.
    4. Enter a new Expected Return Date.

  3. Initiating a new Equipment Loan/Return Document to return the equipment to the university

    When the equipment is returned to Indiana University, a new Equipment Loan/Return Document must be initiated to signify the equipment is no longer "on loan" and has been return to the university. In this case the user will only need to enter a return date after retrieving the asset number on a new Equipment Loan/Return Document.

    Reference the Equipment Loan/Return Document training material here.

  4. Approvals

    If support staff initiates the Equipment Loan/Return Document for the borrower, the document will route to the borrower for an electronic signature. In addition, the borrower's signature (approval) the Equipment Loan/Return Document requires the approval of the fiscal officer or delegate.

  5. Responsibilities

    The organization making the equipment loan will be responsible for:

    1. Tagging the equipment before it leaves the premises.
    2. Initiating the Equipment Loan/Return Document.
    3. Performing the physical inventory of the equipment.
    4. Keeping accurate inventory records of equipment on loan for a period less than thirty-one days.

  6. The borrower will be responsible for:

    1. Obtaining proper approval for equipment on loan. If the borrower takes the equipment without proper authorization and there is a loss, the borrower will be personally responsible for replacement of the equipment.
    2. The timely return of equipment or the completion of an Equipment Loan/Return Document to extend the loan for an additional two years.
    3. Upon request the borrower may be required to return the equipment to the organization for inventory or audit purposes.

  7. Insurance Coverage

    University equipment is covered by Risk Management with a $1,000 deductible. This includes equipment off campus. Any concerns regarding insurance should be directed to Risk Management.
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.

Off Premise - Off premise refers to equipment that is in the possession of a faculty or staff person, and the equipment resides at a location which is not directly associated with the university.

Off Campus
- An off-campus/off-site institutional location refers to any school or institution associated with Indiana University, i.e., equipment located at the Bloomington Hospital. Equipment residing at a research location affiliated with Indiana University is also considered off-campus/off site.

CROSS REFERENCE: CSOP 5.0 Tagging Moveable Equipment
CSOP 8.0 Capitalization of Moveable Equipment
Accounting Administration Policy FIN-ACC-I-140 Off-Premise Capital Equipment Control
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.