Eastern Michigan University Seal

Policies, Rules and Regulations

Chapter Name: Business and Financial Operations

Chapter No. 11.5.2

Issue: Equipment Inventory

Effective Date: 6-19-74

Equipment purchased from University funds is property of the University.  It is assigned to a department or activity for use as long as the department or activity has need for the equipment. The head of the department having custody of the equipment is responsible and held accountable for the equipment assigned to his department. 

When a department or activity no longer has need for any equipment because of a change in program or facilities, it is declared excess to the department and becomes "Unassigned Equipment" available to other units of the University.  A credit will be given to the equipment account of the releasing department, or other account from which the equipment was purchased, based on age, state of repair, general condition and potential for resale. 

When new equipment is purchased to replace worn out or obsolete equipment, the old equipment becomes a traded-in item rather than excess. Old equipment either may be traded in to the vendor for an allowance toward the purchase price of like new equipment, or it may be traded in to the University for credit, whichever is to the best advantage of the University.  The decision is subject to approval by the vice-president for business and finance. 

Equipment traded in to the University by a department will be disposed of by a method and at a price approved by the vice president for business and finance. 

A charge is made to a department for equipment from the "Unassigned Equipment Inventory" equal to the credit allowed when the item was released, plus any repair or refinishing cost, plus a handling charge of 10 percent.  The aesthetic quality of the equipment is evaluated in relation to a proposed new location prior to its reassignment.

After a reasonable time, if "Unassigned Equipment" has not been reassigned to another unit of the University or no further need by the University is anticipated, it is declared surplus to the University and is made available for sale to the public at a fair market price. 

Sale prices of surplus and traded-in equipment are approved by the vice president for business and finance.  The vice president may determine a need for specific Board of Regents action prior to sale to comply with Board policies. 

The policies for Eastern Michigan University provide for an annual reconciliation of the perpetual and physical inventory of equipment, through the use of appropriate accounting entries and that the necessary adjustments are reported to the Board of Regents.

 

Authority for Creation or Revision:

Minutes of the Board of Regents, June 19, 1974, para. .1382M.