The University purchases most of its property. Other sources of University property include fabrication, gifts, and transfers from sponsoring or government agencies. The Inventory Office should be notified of any gift received that fit the criteria of capitalized or controlled property, with documentation to ensure that the property is tagged and included in the department inventory.

Purchases

All items purchased with University funds are University property. Likewise, all items purchases on 26 accounts (federal) are University property unless specifically exempted by the terms of agreement. Under award agreements with certain agencies (usually federal), the sponsor may retain title to the property.

Fabrication

Fabricated equipment valued at over $5,000.00 is assigned an inventory number and added to the department's inventory. Departments that are involved in fabricating equipment will have some means of keeping track of all costs related to the fabrication. When a department fabricates equipment, they must provide the Inventory Section with the item's description, cost documentation, department, and physical location.

Gifts

The University often receives gifts in kind such as furniture, equipment, works of art, etc. Upon formal acceptance by the University, these non-cash gifts become property of the University. When notified in writing of a gift's acceptance, the Inventory Section will assign an inventory number and tag the item if possible. Property acquired through donation must be recorded at its estimated fair market value on the date of acquisition. The method used to appraise the value of gifts should be based on reasonable assessment. This method must be fully documented and maintained on file. All donations of property must be handled through the University's Development Office. This office ensures that proper procedures are followed in valuing the donation and filing the appropriate IRS forms. Inventory should be advised of all donations that meet the capitalization of control criteria.

Government Excess Property

Occasionally, the University obtains equipment from U.S. Government excess property sources. This surplus is available to other agencies, colleges and universities. Unless otherwise indicated in the transfer documents, equipment acquired from government excess property sources becomes University property upon acceptance by the department. If the unit value is $5,000.00 or greater, or the property is a controlled item, the Inventory Section assigns and affixes a property number to the item(s) and records the transaction on the acquiring department's inventory.

Property Acquired Under Federal Grants and Contracts

As of September 1, 2002, UTEP's capitalization threshold for federal property is $5,000.00. Equipment acquired under a federal grant or contract is University property unless specifically exempted by the terms of the agreement. The property is placed on the responsible Principal Investigator's inventory records and is noted on the inventory system as being federally funded. It should be handled and protected as University property. Principal investigators may require full time use of equipment acquired with the grant of contract funds to perform the research specified in the agreement. Such exclusive use is permissible; however, ownership of the equipment is vested with the University, not with the individual, unless specifically stated in the grant.

Grants may specify that equipment acquired with grant funds be transferred upon request by the awarding agency. The usual reason for this involves transfer of the principal investigator and the grant to a new institution. When requested, the University will provide the receiving institution and sponsoring agency with an equipment listing including the dates of purchase and acquisition costs. The receiving institution should acknowledge receipt of the equipment and furnish copies of the acknowledgement to the University.

Before transferring equipment to another institution, the PI should submit a letter to the Office of Contracts and Grants through the Dean, Director, or Department Chairperson, requesting approval. Include the grant number, grant name, the name of the receiving institution, and the name and title of the official authorized to receive the property in the letter. Also include the inventory number, item description, acquisition cost, and year acquired. In addition, a copy of the letter from the granting agency directing the transfer of the grant and equipment to the new institution should accompany the request. Do not remove the equipment from the University until the Department Head has received approval from the University's Inventory Supervisor. After approval, the department will remove the inventory tag and sent it to the Inventory Supervisor along with a copy of the transfer authorization. This will authorize the Inventory Supervisor to adjust the department's inventory.

Under no circumstances should property owned by the federal government be transferred to another department or Surplus or otherwise disposed of without acquiring clearance of ownership through the Office of Contracts and Grants. When such a transfer is requested via Property Transfer Form, copies of the ownership clearance documentation should accompany the transfer request. If the documentation is not provided, the transfer will be routed to the Office of Contracts and Grants for approval as no change can be made regarding federal property without appropriate clearance from the sponsoring federal agency.