U of A Policies and Procedures On-Line (UAPPOL)
Approval Date: November 30, 2010
Most Recent Editorial Date February 25, 2015
Parent Policy: Equipment and Furnishings Asset Management Policy
Equipment Asset Procedure – Transfer or Sale (Internal) to
Another University Unit
Office of Administrative Responsibility: Office of Supply Management Services (SMS)
Approver: Associate Vice-President (Finance and Supply Management
Services)
Scope: Compliance with this university policy/procedure extends to
all Academic Staff and Colleagues and Support Staff as
outlined and defined in Recruitment Policy (Appendix A and
Appendix B).
Contact for questions about this procedure:
SMS Dispatcher
780-492-4122
[email protected]
Overview
The University has various procedures for appropriately disposing or recycling of equipment and furnishings assets
that are no longer needed or being used by a unit. This procedure addresses the internal transfer or internal sale of
an equipment asset by one University of Alberta unit to another University unit. Regardless of whether cash is
exchanged between the units, an internal transfer or sale of an equipment asset represents a transaction that may
require adjustments to the equipment asset register. In addition, an internal sale requires an interdepartmental
billing to be processed.
This procedure does not apply to furnishings assets.
The transfer of an equipment asset is coordinated between the units. The units are responsible for complying with
various legislative and other requirements, as follows:
- An internal sale of equipment assets purchased using restricted funds must take place at fair value in order to
ensure no donor or sponsor receives an advantage at the cost of another.
- Safety legislation requires that items that have been used to store radioactive or biological substances are cleaned
before the equipment asset is transferred or sold to another unit.
- All data and site-licensed software must be removed from computer hard drives and other data storage devices
before the transfer or sale.
Purpose
The purpose of this procedure is to ensure:
U of A Policies and Procedures On-Line (UAPPOL)
- the internal transfer or sale of equipment assets is appropriately authorized and in compliance with applicable
legislation and other requirements;
- any internal sale of equipment assets purchased with restricted funds takes place at fair value;
- the transaction is recorded in the equipment asset register (if applicable) and, in the case of an internal sale, is
recognized in each unit’s accounting records;
- the University promotes recycling and reusing of equipment assets using internal transfer of equipment between
units.
PROCEDURE
1. OBTAIN EQUIPMENT ASSET INFORMATION
Information regarding the equipment asset must be provided in order for a unit to transfer or sell an equipment asset
to another unit. If the equipment asset was tracked, information can be obtained from the equipment asset register.
If the equipment asset has not been tracked in the equipment asset register, only a description of the equipment
asset being transferred or sold is required.
2. REQUEST TRANSFER OR SALE (INTERNAL) OF EQUIPMENT ASSET
a. The unit transferring the equipment asset must complete the appropriate form.
b. The transfer must be approved by the Dean, Chair or Director of each unit.
c. If the equipment asset is to be sold by one unit to another:
i. If the equipment asset was purchased from unrestricted funds, the units may negotiate a selling price. Either unit
may request SMS (Surplus Disposal) to provide an assessment of fair value.
ii. If the equipment asset was purchased from restricted funds and is to be sold to another unit, in order to ensure that
no donor or sponsor receives an advantage at the cost of another, the selling price must equal fair value as
determined by SMS (Surplus Disposal).
d. Upon approval of the transfer or sale of the equipment asset:
i. If a transfer of an equipment asset occurs, no accounting entry is required.
ii. If the equipment asset is sold from one unit to another, the form Research and Operating: Internal Sale must be
completed to record the sale:
1. The unit selling must credit account 401001 (Internal Revenue General). If the equipment asset was purchased
with restricted funds, the chartfield to be credited must be in accordance with any donor/sponsor terms and
conditions.
2. The unit purchasing must debit the appropriate expense account from the following list:
 502341 – Equipment <$5000
 502343 – Computing Hardware <$5000
 502344 – Scientific Lab Equip <$5000
U of A Policies and Procedures On-Line (UAPPOL)
3. TRANSFER EQUIPMENT ASSET
When the equipment asset is transferred, the original equipment asset tag is to remain affixed to the equipment. A
new equipment asset tag is not to be assigned by the unit receiving the equipment.
4. UPDATE EQUIPMENT ASSET REGISTER
Following the transfer or sale of the equipment asset, the receiving unit must update the equipment asset register, if
applicable. a. the receiving unit will update the equipment asset register with current location information, if
applicable.
b. The acquisition value will remain the original purchase price along with the original acquisition details and not the
negotiated price if it was sold. This is required in order to track the original cost for insurance purposes.
5. DOCUMENT RETENTION
Both the unit transferring the equipment asset(s) and receiving the equipment asset(s) must retain the approved
Equipment Asset Form – Transfer or Sale (Internal) to Another University Unit, along with any attachments for the six
years plus the current year.
DEFINITIONS
Any definitions listed in the following table apply to this document only with no implied or intended institution-wide
use. [▲Top]
Equipment Assets
Items acquired by the University such as scientific lab, information technology
(IT) and other equipment, and vehicles. This includes items acquired through
the Professional Expense Reimbursement program. This excludes Museum and
Collections assets.
Furnishings Assets
Items acquired by the University such as workstations, file cabinets, bookcases,
classroom tables/podiums, soft seating (lounge seating), and lounge tables.
Internal Transfer
A change in custodian of an asset within the University, which takes place at no
charge.
Internal Sale
A change in custodian of an asset within the University, which takes place at a
price negotiated between the units or, in the case of assets purchased with
restricted funds, at fair value determined by SMS (Surplus Disposal).
Equipment Asset Register
Detailed records of equipment assets, used to facilitate physical control and
security, and to provide information for disposal, replacement and insurance
purposes. Units are not required to track furnishings.
Restricted Funds
Restricted fund or restricted contribution is a contribution subject to externally
imposed stipulations (explicit or implicit conditions) that specify the purpose for
which the contribution is to be used. The University can only expend restricted
contributions for specific purposes defined by the external sponsor or donor.
Unrestricted Funds
An unrestricted contribution is one that is neither a restricted contribution nor an
endowment contribution (e.g. provincial government operating grant, tuition
fees, activities funded by self-generated revenues such as service activities or
ancillary operations). Unrestricted contributions can be internally
restricted. Internal restrictions are imposed in a formal manner by the University
itself, usually by resolution of the Board of Governors.
Acquisition Value
The original purchase cost of an equipment asset or the value assigned to an
equipment asset when acquired through in-kind contribution, or transfer from an
external or internal source.
U of A Policies and Procedures On-Line (UAPPOL)
FORMS
Should a link fail, please contact [email protected]. [▲Top]
Equipment Asset Form - Transfer or Sale (Internal) to Another University Unit
Research and Operating: Internal Sale
RELATED LINKS
Should a link fail, please contact [email protected]. [▲Top]
SMS-Equipment Services – Market Evaluation Form