UCR Policies and Procedures

Printer Friendly Version

For a hardcopy pdf of this document, contact the Office of Compliance (2-8246).


Policy Title:                       Equipment Management - Purpose and Responsibilities of 

Policy Number:                 750-12

Responsible Officer:

Associate Vice Chancellor of Business & Financial Services and  Controller

Responsible Office:

Business and Financial Services

Origination Date:


Date of Revision:


Date of Last Review:



Guidance Concerning Inventorial Equipment, Government Inventorial Equipment, Other Government Property, & Other Inventorial Items Titled to or in Custody of University

I.       Policy Summary

This document establishes the policies and sound business practices required for the on-going accounting and management of the equipment inventory at the University of California, Riverside. The awarding of contracts and grants to the University is contingent upon maintaining these policies and having an approved equipment inventory system in place and functioning.

II.       Definitions

All capitalized terms used but not defined herein shall have the meaning as defined within University of California (UC) Business & Finance Bulletin BUS-29: Management and Control of University Equipment (BUS-29).

III.       Policy Text

   A.   Basic Requirements

1.   Equipment Management maintains the campuses Asset Management System (AMS) to ensure adherence to federal regulations, sponsor award requirements, and university policies. Additionally Equipment Management, with coordination from other applicable offices, completes and provide all required property reporting for the University of California Office of the President, Federal, and State agencies.

2.  All Inventorial Equipment, Government Inventorial Equipment, Other Government Property, and Other Inventorial Items that are in the custodial control of the University, regardless of funding source or current titleholder, are recorded in the AMS. The Equipment Management Office adds asset records to the AMS upon acquisition (for sponsor furnished, donated, and transferred property), upon payment and acquisition (for requisitioned property), or upon completion (for fabricated equipment).

3.   All Inventorial assets added to the AMS are assigned a nine-digit property number. Upon record creation a property tag decal displaying this property number is generated, sent to the acquiring department, and is required to be affixed to the physical unit of property in an easily visible area by a department representative.

4.   All departments with inventorial assets are required to assign users to the AMS in order to maintain the inventorial asset records and to perform the mandatory annual inventory verification requirements.

B.   Equipment Account Allocation

1.  Inventorial equipment is generally ordered utilizing the FAU Account Code series 803XXX. Please refer to the UCRFS golden tree for complete account code information.

2.    Component parts or equipment enhancements must increase the value of the asset by at least $5,000 in order to be considered an "upgrade" to an existing piece (as identified by the assets assigned property number) of inventoried equipment. If the item is an upgrade to computer equipment, then use Account Code 803150, for all other type of equipment use Account Code 803180.

3.    Equipment upgrades valued at less than $5,000 are to be expensed as non-inventorial transactions using Account Code 720XXX. Repair components, regardless of cost, shall also be expensed as non- inventorial transactions. Please refer to UCRFS golden tree for complete account code information.

C.   Inventory and Audits

1.    Changes to the department active inventory (disposal, transfer, loses, thefts, etc.) will be requested or reported (as appropriate) to the Equipment Management Office via the AMS.

2.    Once a year all campus departments with inventorial assets are required to conduct an annual verification or a physical inventory verification. Campus departments can generate a listing of their active inventorial assets in the Asset Management System to assist with their reconciliation of inventory. An annual verification is required once annually while a physical inventory is required at least every two years.

3.   Periodically, the Equipment Management Office may generate statistical samplings of campus asset inventories, which are utilized to conduct physical inventories of a department’s active inventorial equipment. The purpose of these statistical sampling inventories is to verify the accuracy of an individual department's records.

a.    If a department is selected for audit the Equipment Management Office will forward copies of the statistical sampling to the department chair or designated representative in advance. An appointment will then be made to actually conduct the physical inventory. The department is responsible for coordinating access to all locations required to perform the statistical sampling for the appointment.

b.    If 90% accuracy is obtained on the first sample inventory, control of equipment will be considered adequate. If 90% accuracy is not obtained, a second statistical sampling inventory is required. Should the second physical inventory also fail to indicate at least 90% accuracy, the department will be scheduled for a complete departmental inventory.

4.   Once every two years, the Federal Government may audit the asset management system to validate that it meets the federal requirement to qualify for continued research funding.

D.   Inventorial Equipment – Exceptions

1.    Firearms, regardless of cost, are considered inventorial.

2.  Property acquired under contracts and grants can have an awards that establish an inventorial threshold that is less than $5,000 or can dictate that specific property be considered inventorial regardless of property’s value (Consult specific Agency guidelines and contract provisions for exceptions to cost limitation).

3.    Per BFB-BUS-29 Section III A1, campus departments should establish local guidelines to govern the control of theft-sensitive items (valued at less than $5,000) that are not recorded in the Asset Management System.

4.    Parts of buildings and structures are considered non-inventorial and include:

a.    Items of equipment normally classified as inventorial, which are permanently built in or installed, the removal of which would impair the building/structure or would substantially reduce the equipment’s value (subject to Accounting Department policies).

b.    Heat distributing systems servicing only the building in which the equipment is installed. Central heating plants that service more than one building are reported under plant distributing systems as a complete unit.

c.    Electrical and power distribution systems within the building or structure, including all permanently attached lighting fixtures, distribution panels, and other such equipment.

d.    Water distributing systems including all piping, plumbing, drains, and fixtures.

e.    Telephone and intercommunication wiring systems, but excluding intercommunication stations which operate independently of wiring systems.

f.     Fire protection systems, including all fire alarm systems, boxes and gongs, sprinkler systems, and other firefighting apparatus that is permanently installed.

g.    Air conditioning, air purification and dust collection systems, excluding unit air conditioners and dust collection units.

h.    Compressed air and industrial medical distributing systems, but excluding generating or compressing equipment that serves only one department.

i.      Railroad trackage within a building or structure.

j.      Elevator shafts and elevators.

k.    Crane runways, but excluding the cranes and operating mechanisms.

l.      Pits and special foundations.

m.  Mechanically operated doors.

n.    Venetian blinds, awnings, shades, drapes, wall-to-wall carpeting, and similar items.

o.    Any facility changes, the total cost of which is $4,999 or less, including the construction, alteration or demolition of structures or fixed equipment, changes to utility outlets, the extension of existing utility outlets, the construction and/or installation of shelves, hangers, hooks, bulletin boards, directories, and signs which are attached to the wall, the initial installation of venetian blinds and window shades, and changing of windows from transparent to translucent or opaque glass or vice versa.

5.    Software: Only software that is included with the purchase of inventorial hardware (not requisitioned in a separate purchase order) shall be capitalized and included as part of the value of inventorial equipment. Software purchased as a standalone is considered non-inventorial regardless of form factor (e.g. USB dongle, download, physical disk, hard drive, etc.). All separately invoiced software development costs, license fees, and maintenance costs, capitalized or not, are non-inventorial expenses.

IV.       Responsibilities

Please refer to Section V of BUS-29 for details pertaining to the responsibilities assigned to the Chancellor, Equipment Administrator, Surplus Administrator, Head of the Custodial Departments, and Principle Investigators.

   V.        Procedures

Please refer to the online Asset Management System User Guide for information relating to department procedures for asset dispositions, asset transfers, and annual inventory verifications.

  VI.       Contacts







VII.     Related Information

A.   Office of Management and Budget (OMB) Circulars

1.    Uniform Guidance (2 CFR 200): Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards

2.    A-21: Cost Principles for Educational Institutions (for awards prior to Uniform Guidance)

3.    A-110: Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations (for awards prior to Uniform Guidance)

4.    A-133: Audits of States, Local Governments, and Non-Profit Organizations (for awards prior to Uniform Guidance)

B.   Federal Acquisition Regulations (FAR)

1.    FAR Part 45: Government Property

2.    FAR Part 52.245-1: Government Property

C.   University Business & Finance Bulletins

1.    A-51: Application of Proceeds from the Sale, Trade-in or Transfer of University

2.    BUS-19: Registration and Licensing of University-Owned Vehicles

3.    BUS-29: Management and Control of University Equipment

4.    BUS-38: Disposal of Excess Material and Transfer University-Owned Property

5.    BUS-43: Purchases of Goods and Services; Supply Chain Management

D.   University of California, Contracts and Grants Manual

E.   University of California, Accounting Manual

1.    P415-2: Plant Accounting: Costing and Reconciling Inventorial Equipment Acquisitions

F.    Local UCR Policies and Procedures

1.    750-18: Purchase & Management of Fabricated Equipment

2.    750-24: Management of Government Contract & Grant Equipment

3.    750-36: Lost and Found Property

4.    750-99: Disposal and Use of University Property

G.   University Websites

1.    UCR Equipment Management Site: http://bfs.ucr.edu/equipment/

2.    AMS User Guide: http://bfs.ucr.edu/equipment/amsguide_home.html


  VIII.      Revision History

The policy was originally approved in July 2004. The policy was updated in July 2017 to reflect new Asset Management System release, to reference outside policies rather than duplicating information, and to revise the document formatting to the new standard. The policy was reviewed in August 2021 to update hyperlinks and formatting.