TUC Sponsored Programs

Asset Management

1. Definition of Equipment

Capital Equipment

Capital Equipment is an article of tangible nonexpendable personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit.

Minor Equipment

Minor Equipment is an article of tangible nonexpendable personal property having a useful life of more than one year and an acquisition cost of at least $2,000 or more per unit, but not more than $4,999.99.

2. Procurement Procedure for Assets Purchased Through a Sponsored Program

Ordering Procedure (TUC)

The Principal Investigator generates a Purchase Order for the acquisition of the asset and, together with the required supporting documentation, forwards it to The University Corporation. The University Corporation, Sponsored Programs, identifies Minor Equipment (>2,000) and Capital Equipment (> 5,000) on the purchase order, with a stamp or in writing, as 'To Be Tagged'. The University Corporation processes the Purchase Order and sends it to the vendor. The University Corporation sends the green copy of the Purchase Orders to the CSUN-Receiving Department.

Receiving & CSUN Tracking Procedure (CSUN)

The supplier delivers the new equipment to the CSUN Receiving Department, where it is matched to the green hard-copy of the Purchase Order. The CSUN Receiving Department tags all items identified by The University Corporation as To Be Tagged with a green TUC Asset Tag and sends it to the Principal Investigator. If the supplier delivers the equipment directly to the Principal Investigator, the CSUN-Asset Management Department will tag the equipment later on location at the Principal Investigator. It is the responsibility of the Principal Investigator to notify the CSUN-Asset Management Department and request the tagging of the items. The CSUN-Asset Management Department will forward information on the received equipment and the tag number to The University Corporation.

Payment Procedure (TUC)

The vendor sends an invoice to The University Corporation as request for payment. The University Corporation processes the invoice and pays the vendor. After payment, TUC-Accounting (Maryann Camarillo) sends a copy of all Invoices/Purchase Orders for assets to TUC-Sponsored Programs (Mahyar Sadri).

TUC Tracking Procedure

TUC-Sponsored Programs (Mahyar Sadri) maintains a list of all asset purchases (Asset Management List). The list contains the following information:

  • Asset Number
  • Serial Number
  • Vendor
  • Description
  • Purchase Price
  • Purchase Order Number
  • Paid Date
  • Project ID
  • Project Begin Date
  • Project End Date
  • Principal Investigator
  • Department
  • Mail Drop
  • Location (Building, Room)

TUC-Sponsored Programs (Mahyar Sadri) will review and enter all information based on vendor invoices and TUC purchase orders for assets.

On a quarterly basis, TUC-Sponsored Programs (Mahyar Sadri) will review the asset related accounts of the Detailed Trial Balances of all sponsored programs, to ensure that all asset purchases are included in the TUC Asset Management List.

On an annual basis, The University Corporation will send CSUN Asset Management Department a copy of the TUC Asset Management List.

The CSUN Asset Management reconciles the TUC Asset Management List to their records.

On a bi-annual basis (every 2 years), The University Corporation will take a physical inventory of all assets on the TUC-Asset Management List.

3. Title and Ownership

Ownership Of Assets Purchased Through A Federal Grant

Non-profit institutions of higher education and nonprofit organizations whose primary purpose is the conduct of scientific research hold title and are exempted from further obligation to the Federal Government for equipment acquired. Grants are made to CSUN/The University Corporation on behalf of the Principal Investigator (PI) or Program Director. Title to equipment acquired with grant funds vests with CSUN/The University Corporation, not the Principal Investigator. During the duration of the grant, ownership of equipment acquired with grant funds vests with The University Corporation. The University Corporation will fully expense the costs of the equipment. After the end of the grant, The University Corporation will transfer ownership to the University.

Transfer Of Principal Investigator To Another Organization

CSUN/The University Corporation is the legal entity to which a grant is awarded. When the Principal Investigator moves to another organization, the following options apply in the order listed:

  1. CSUN/The University Corporation may request continuation of the project under the direction of an alternate PI. If the alternate PI is approved by the granting agency, the grant will continue and thus title to the equipment purchased under the grant will remain with CSUN/The University Corporation.
  2. CSUN/The University Corporation may relinquish its interests and rights in the grant to the PI's new organization. If the new organization is approved by the granting agency to continue the grant activity, then the grant will be awarded and any equipment purchased with grant funds and still needed for the grant project would be expected to be transferred to the new grantee organization, which would assume title. If CSUN/The University Corporation does not voluntarily agree to relinquish equipment with the grant, the granting agency may require the transfer of the equipment.
  3. If an alternate Principal Investigator is not accepted by the granting agency (or no alternate is nominated), and CSUN/The University Corporation refuses to relinquish its rights in the grant to the new component to continue the research), then the grant will be terminated. Title to the equipment will remain with CSUN/The University Corporation, subject to disposition or use as described below. The PI's new organization may submit a new application through the regular peer review process to request support for the research. A change of grantee may not take place where it will involve the transfer of a grant to or between foreign institutions or international organizations.

Disposal of Assets during a Grant

Disposal of assets during a grant require the approval of the granting agency, the Office of Research and Sponsored Projects (ORSP) and the Principal Investigator. If the item is sold, the value of sale can be (1) the replacement value (the value it will take to purchase the same type of equipment new) or (2) the fair market value. The granting agency determines if the equipment can be sold for the replacement value or the fair market value. If the granting agency does not make any determination on the value of sale, the Office or Research and Sponsored Projects (ORSP) will make the determination in collaboration with the Principal Investigator. Income from the disposal of assets will be booked as negative expenses in the project and account where the original expenditure occurred. When disposing of a grant or contract asset, TUC completes a Surplus Property Survey Request Form 116 and submits it to PPM/AM. PPM/AM removes the asset from their records. At the same time, the asset is marked as disposed of, on the TUC-Asset Management List.

Transfer of Assets to CSUN after the End of a Grant

After the completion of a grant or contract, the title of the equipment is to be transferred to CSUN. At least once a year, The University Corporation, Sponsored Programs will prepare a list of assets to be transferred and and forward it with a cover letter to PPM/AM. At that time, the asset will be added to the University's asset list and removed from TUC's asset list.