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Home :: Policies :: Equipment Management

Equipment Management

Responsible Department
Logistical Services
Effective Date
  1. .

    Policy Purpose

    The purpose of this policy is to clearly state the guidelines for equipment management functions at the University of North Georgia (the “University”).

  2. .


    1. Assets: Property, Equipment and Consumables with an acquisition of $3,000. Items costing between $3,000 and $5,000 are considered Small Value Property, whereas items costing greater than $5,000 are considered capital. All are inventoried, but the accounting treatment is different for these two categories of assets.

    2. Inventory: Property, equipment, consumables and supplies that are purchased by and/or donated to the University, which, in turn is governed by the State of Georgia.

    3. Surplus Property: Any item that is the property of the University, regardless of cost, that is no longer needed by the University.
  3. .

    Policy Statement

    1. The Office of Logistical Services is to maintain a perpetual inventory of assets acquired by the University for use in various educational, research and administrative functions.  The Office of Logistical Services will maintain an accurate inventory in order to:

      1. Achieve accurate financial reporting;

      2. Ensure suitable insurance coverage;

      3. Assist departments in their equipment accountability;

      4. Accurately surplus inventory for the University.


      1. Equipment owned by the Board of Regents or a sponsor is intended for use by delegated individuals who are members of the staff or faculty.

      2. University property must be used for the purpose intended and personal use is forbidden, unless authorized by the department head and the reasons for use conform to State and University regulations.


      1. The necessity for controls in the acquisition, use and disposal of BOR-titled equipment is mandated by University policies, State of Georgia laws, and Federal Guidelines.
      2. The objectives of the various colleges and departments dictate the need for, and use of, equipment as defined in this policy, and it is not the intention of the Office of Logistical Services to interfere in the lawful pursuits of these objectives.

      3. The responsibility for equipment acquired with State funds or assets donated to the State for use at the University rests with the department having custodial accountability, and it is the primary mission of the Office of Logistical Services to assist departments in their inventory management functions.


      1. Tangible personal property such as equipment, furniture and vehicles that belong to the State of Georgia and that meet certain definable criteria.  At the present time, these criteria include:

        1. An acquisition cost of $3,000 or more per asset.

        2. A useful life of at least 3 years.

        3. Any item(s) the University determines should be included in its personal property inventory even though it fails to meet the above criteria.  Example:  All firearms.

      2. Equipment acquired through regular purchase is carried on the Institution’s records at actual cost.  Actual cost includes the amount paid to the vendor for the equipment, incoming transportation charges, assembly or installation charges, (discounting any allowance, which may have been received for the trade-in of old equipment).  In purchasing equipment, the department must be aware of these elements of cost so that they may properly classify the charges of the Purchase Requisition against the correct account(s), object code(s) and budget(s).


      1. Materials and Supplies are not maintained on the Equipment ledger or the Departmental Inventory listing.  Most Materials and Supplies are classified as office supplies and/or equipment costing less than $3,000 and do not meet the criteria as defined in the “INVENTORIAL EQUIPMENT” section.

      2. Most purchases are identifiable, but in some areas it is difficult to determine whether an item should be classified as supplies, rather than equipment.  The following guidelines have been developed for classification:

        1. Most equipment purchases costing less than $3,000 are classified as supplies.  This applies to the unit cost of each item, to include freight and installation charges, and not the total of the purchase order.  An exception to this rule is the purchase of items used to upgrade existing equipment, which should be evaluated against capitalization guidelines on a case by case basis.

        2. Equipment made of glass or other fragile materials should be classified as supplies.

      3. Repairs to existing equipment are treated in the following manner:

        1. If the department is ordering a replacement part for an item of equipment, then the materials and supply object code is used.  Shelf stock of replacement parts should also be charged to material/supplies.

        2. If the equipment is sent out for repair or if the repair is made on location by a service technician, the total repair bill can be classified under the Repairs and Maintenance.


      Acquisition of property may include any of the following:

      1. Regular purchases of non-consumable and non-expendable items with an estimated usable life expectancy of three or more years and an acquisition cost of $3,000 or more through the expenditure of budgeted equipment funds.

      2. Fabrication of equipment by the department or physical plant, meeting the same criteria as regular purchases.

      3. Gifts of equipment by outside agencies, companies or individuals, if the above criteria are satisfied.

      4. Items of equipment received from the Surplus Section of the Georgia Department of Administrative Services with an estimated value of $3,000 or more.

      5. Placement of equipment on the campus by the University System Building Authority.

      6. Loans or consignment of equipment.

      7. Building improvements are capitalized when the building/improvement exceeds $100,000 or the expenditure increases the life or value of the building by 25%.

      8. Accessory items will be considered as a portion of the cost of the parent item if it qualifies for capitalization.  If the accessory item is  interchangeable with two or more pieces of equipment, that item will be inventoried as a separate item of equipment, if it meets the above criteria.

      9. Lease/Purchase items will be capitalized if the ownership of the equipment is transferred to the University of North Georgia by the end of the lease; the lease contains a bargain purchase option; or the lease term is 75% or more of the estimated economic life of the leased equipment; or the present value of minimum lease payments required under the lease is at least 90% of the fair market value of the asset at the inception of the lease.


      1. Each department head or major budget unit is asked to appoint or delegate an individual to represent the department in matters of equipment management.  Such individuals should be assigned this responsibility as a part of existing duties.

      2. Although an Inventory Manager is assigned by each department head, the department head is ultimately responsible for the department’s inventory.


      1. Any department receiving equipment purchased for or donated by another entity, should follow the rules of purchasing and/or transferring equipment listed in the “Gifts” procedure.

      2. All equipment and supplies purchased by University personnel should come through the Office of Logistical Services.


      1. A physical inventory of all equipment must be conducted every year.

      2. The Office of Logistical Services will be responsible for conducting this inventory for all inventory items, with the exception of Information Technology (IT)  inventory items and any items for which the Asset Manager determines he/she requires departmental assistance in conducting the inventory counts.

      3. IT will take an active role in the conduct of its physical inventory counts. Specifically, the University Asset Manager in the Office of Logistical Services will provide a printout at least annually of the University’s IT assets to the CIO. The CIO will then coordinate with the appropriate subunits within IT to conduct inventory counts of all items listed on those printouts. Once those printouts are completed, they must be signed, dated, and returned to the Asset Manager for reconciliation with the University financial system as needed.


      1. Property meeting the State definition of equipment and either owned or controlled by the University is to have an Asset ID Tag affixed to it for identification.  In the event that the nature of the equipment prohibits or otherwise obstructs tagging, the Office of Logistical Services will follow an alternative procedure for tracking the equipment to be defined by the Office of Logistical Services in accordance with the corresponding procedure document.

      2. In addition, there are certain items that are not on the Inventory of the University but, due to the disposable nature of the items, will be tagged with a sticker indicating that this is the “Property of UNG”. Each department is responsible for keeping track of these items. Examples include: cell phones, digital cameras, video cameras and portable projectors.


      1. Property that is lost and/or suspected of being stolen should be reported to the Office of Public Safety immediately by the affected department.

      2. The question of individual and departmental accountability is determined on a case-by-case investigation of the circumstances leading to the loss of the asset. State regulations and institutional practices will dictate decisions of redress.


      Practical considerations dictate that certain equipment assigned to a department is occasionally loaned to an individual or another department on a short-term basis.  This property may, by necessity, leave the campus for home use or equipment loaned to faculty or staff members going on a trip.  The department with custodial responsibility is always held accountable for this property and should never loan equipment without having a written record in the files of the Office of Logistical Services.


      All fabricated property meeting the State definition of property, unless sponsor owned, shall be reported to the Office of Logistical Services without regard to whether the property was fabricated from materials and components purchased specifically for this purpose, from materials on hand, from cannibalized equipment, or any other source.


      A department may find it feasible or necessary to strip equipment of parts and to use these parts for other needs if the equipment is no longer operational and cannot be restored to serviceability without excessive repair charges.  Any department wishing to disassemble or cannibalize property to be used in conjunction with/or on other property, must notify the Logistical Services Manager on campus for prior approval before disassembling of equipment.  The following guidelines are offered to ensure compliance with State and Federal regulations:

      1. State-owned equipment which is useless and where parts are to be removed to support usability of like equipment does not require State approval but Logistical Services must be notified via a memorandum so our records can be adjusted.

      2. Sponsor-owned property cannot be cannibalized until permission has been granted by the agency having jurisdiction or until title has passed to the State and permission acquired by the Department of Administrative Services (“DOAS”).

      3. When an item is being acquired from the State Surplus Property Warehouse with the intent to cannibalize, permission authorizing the cannibalization may be requested while at the warehouse.


      Inventorial property meets certain State definitions related to life expectancy and cost.  An exception to this may be items of equipment that cost less than the minimum threshold of their use or classification are candidates for strict accountability.  Handguns are an example.  Handguns are considered property even though some may cost less than the threshold states.  Handguns are thus considered a sensitive and controlled item.

    16. TRADE-INS

      Vendors of equipment are sometimes willing to accept older units of equipment as trade-ins on new equipment and to make an allowance for these trade-ins against the price of the new equipment.  Approval from DOAS and then Purchasing is required.


      Departments will not dispose of any property without prior approval from the Office of Logistical Services.


      Some of the equipment in use at the University may be eligible for reimbursement by the Federal Government either through depreciation or use allowance.  This equipment must be state-owned and in support of sponsored research and educational endeavors.  A further stipulation is that the equipment be in actual use.  The assignment of use factors (the degree of use) is a task handled by the Office of Grants and Contracts Administration.


      Equipment that is idle or under-utilized on a regular basis should be considered for use by other departments on a “share” basis.


      It is a requirement that equipment be maintained in the best condition possible.  The State of Georgia recognizes four classes of condition in regard to property:

      1. Good – functionally operational; little or no repairs necessary, preventative maintenance accomplished on schedule.

      2. Fair – limited repairs are necessary and/or preventative maintenance not accomplished.  Equipment is generally operational.

      3. Poor – major repairs are necessary and would exceed 25% of the original acquisition cost.  Equipment is not completely functional and is not being maintained.

      4. Scrap – not functional or cannot be repaired or modified to meet current acceptable specifications and has no value except for materials content.  Item is also not transferable to another State Agency.


      When a campus building is erected by the Georgia State Financing and Investment Commission (GSFIC), a small amount of furniture may be installed as part of the contract.


      Department representatives are requested to notify the Office of Logistical Services when equipment is discovered without a decal.

    23. GIFTS

      As in the case of all other property, gifts become the property of the University and are accepted without precondition or restriction.


      1. Department heads should be aware that property under the control of the University and owned by the Board of Regents is covered by insurance.  Coverage is provided by the State of Georgia Insurance and Hazard Reserve Fund.  This is a blanket policy protecting inventoried equipment in designated locations on campus and in locations off the campus; owned, rented, or leased by the University.  This policy protects property against fire, lightning, windstorm, hail, explosion, smoke, flood, civil commotion, aircraft, radiation contamination, and leakage from fire protection equipment.  Theft coverage was added in July 1983.

      2. All-Risk coverage is provided when property is moved off-campus.  This insurance provides the same basic coverage as listed above.

      3. In the event that property is transferred from one building or site to another without the Office of Logistical Services being notified, the insurance could be jeopardized in case of loss.
  4. .


    Any operating procedures developed must comply with and reference this policy.

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