1.0 Reason for Procedures

1.1 The purpose of this document is to set out procedures secondary to the Policy entitled "Capital Equipment Control" in connection with the acquisition, preservation and disposal of capital equipment.

2.0 Procedures

Capital Equipment Control Explanations and Guidelines

2.1 The University shall account for the acquisition and disposal of capital equipment by means of a Capital Equipment Inventory Control System (CEIS), maintained by the Capital Asset Management department of Financial Services. CEIS consists of:

(a) the physical identification and labeling of capital equipment acquired;

(b) the assignment of responsibility for the custody, use and preservation of
equipment; and,

(c) a database of capital equipment items, values and locations.

2.2 For the purpose of these procedures the term "capital equipment" shall include furniture, fixtures, vehicles, computers, laboratory and other equipment falling within the definition of capital equipment in the Capital Equipment Control Policy.

Acquisition and Maintenance of Capital Equipment

2.3 Capital Equipment may be acquired using one of the following methods:

(a) Purchase - acquisition made through Purchasing Services.

(b) Lease - acquisition by way of a capital lease arrangement through Purchasing Services.

(c) Donation - acquisition by way of donation to a Faculty or Unit (Unit) (gifts in kind as coordinated through Advancement Services and/or Treasury Services).

2.4 Capital Asset Management is responsible for providing identification tags and a CEIS verification form for Units to complete for serial numbers, location, etc., along with a task list to ensure capital equipment is reported accurately. The Unit is responsible for returning the completed form to Capital Asset Management in a timely manner.

2.5 An Off-site Equipment form must be completed and authorized for all University owned capital equipment removed from any University of Manitoba site. This form is available on the Financial Services website.

2.6 The Dean, Director or Unit Head (Unit Head) is responsible for assigning the responsibility of capital equipment inventory control to one or more individuals within the Unit. This individual will be responsible for working with Capital Asset Management to satisfy the requirements of these procedures.

Transfer and Disposal of Capital Equipment

2.7 All transfers and disposals (disposals) of University-owned capital equipment, regardless of value, must be coordinated and processed through Capital Asset Management in order to:

(a) Assist in determining the probable sale value of the capital equipment;

(b) Ensure that the University community is made aware of the availability of
the capital equipment through advertising on the University's Goods for Sale website or other similar means (in the event that a transfer between Units might be possible);

(c) Determine the necessity for outside advertising and obtaining competitive
bids for a proposed sale;

(d) Determine the applicability of PST and GST to the disposal transaction;

(e) Ensure that the University has received or will receive monetary value for
any proposed sales; and

(f) Record any disposals in the CEIS database.

2.8 Capital equipment disposals shall be documented on an Asset Disposal Form. Prior to forwarding the Asset Disposal Form to Capital Asset Management, please read and follow the General Instructions for Asset Disposal and the Disposal of Surplus Equipment documents on the Capital Asset Management Website.

2.9 Proposed disposal of capital equipment may be initiated by a signing authority on the FOP (Fund/Organization/Program) the item was originally charged against, by the Grantee (if the Grantee is still an employee of the University), or the Unit Head. The appropriate Unit Head must approve all disposals. Where the sale proceeds are reasonably expected to be greater than $10,000, prior approval of the Vice-President (Administration) must be obtained.

2.10 Unit Heads are encouraged to make surplus capital equipment available to other Units on a “no charge” basis. The University does not wish to dispose of any capital equipment that can be successfully used within the University community. Other possibilities are to sell (internally or externally), donate to a charity, or recycle items. Goods for Sale and the Garage Sale Requirements are available for review on the Financial Services website.

2.11 Capital equipment may be transferred between Units once the value of the transfer has been agreed upon. An inter-departmental charge form will be processed to charge the buying department and to credit the selling department.

2.12 Units will be eligible for a budget allocation for the total amount of the proceeds from the sale of capital equipment. Proceeds from the sale of research equipment must be used for research purposes.

2.13 Disposals required as a result of an emergency or hazardous situation may be initiated and approved by the Vice-President (Administration).

Capital Equipment Control Related to Research

2.14 Staff members shall arrange that ownership of capital equipment purchased with research grants and contract funds shall be permanently vested in the University. All research capital equipment shall be considered to be owned by the University from the time of acquisition and/or transfer to the University. When such ownership will require University space or budget commitments (during or after the research project), approval shall be obtained from the appropriate administrative authorities before the contract is signed.

2.15 Whenever University ownership of research capital equipment cannot be negotiated, the staff member concerned shall, before completion of negotiations, send copies of the relevant contract, correspondence, etc. to the Dean (copy to the Unit Head) with a brief explanation of reasons for retention of ownership by the sponsoring agency. The Comptroller is to be informed of any capital equipment purchased with University-administered funds or capital equipment that is to be used at the University although title vests with the sponsoring agency. This capital equipment must be included in the University's appraisal of inventory and a notation made that the capital equipment does not belong to the University. The capital equipment record will be removed from the inventory database upon formal notification of completion of the project.

2.16 Researchers departing the University to conduct research at another institution may apply to purchase the University-owned research capital equipment by submitting a request to Capital Asset Management, following the guidelines as set out on the Capital Asset Management website.

3.0 Accountability

3.1 The University Secretary is responsible for advising the President that a formal review of the Procedure is required.

3.2 The Comptroller is responsible for the communication, administration and interpretation of these Procedures.

4.0 Review

4.1 Formal Procedure reviews will be conducted every ten (10) years. The next scheduled review date for these Procedures is April 23, 2018.

4.2 In the interim, these Procedures may be revised or rescinded if:

(a) the Approving Body deems necessary; or
(b) the relevant Bylaw, Regulations or Policy is revised or rescinded.

5.0 Effect on Previous Statements

5.1 These Procedures supersede the following:

(a) all previous Board/Senate Procedures, and resolutions on the subject matter contained herein; and
(b) all previous Administration Procedures, and resolutions on the subject matter contained herein; and
(c) all previous Faculty/School Council Procedures stemming from the Faculty/School Council Bylaw and academic and admission Regulations and any resolutions on the subject matter contained herein; and
(d) Policy & Procedure: 308 - Capital Equipment Inventory Control, 309 - Disposal of Surplus Furnishings and Equipment, 311 - Ownership of Research Equipment Purchased from Grant or Contract Funds.

6.0 Cross References

Cross referenced to:

(1) Motorized Vehicles Policy/Procedure
(2) Financial Commitments Policy
(3) Capital Equipment Control Policy
(4) FIPPA Administrative Bulletin No.76