​The Capital Equipment Program

The University of Wisconsin Stevens Point has a significant investment in capital equipment, representing long-term commitments to fulfill its mission.  The University owns and controls all capital equipment purchased with University funds, unless stipulated otherwise by the funding source.  

The Purchasing Department administers capital equipment asset matters and is responsible for the centralized accounting and reporting of University capital equipment assets, but not other personal property items.  Asset managers are responsible for reporting the loss and/or undocumented disposals of capital equipment assets.  

For details on the UW System Policy related to Capital Equipment, please see 334: Accountability for Capital Equipment.

What is Capital Equipment

Capital equipment is defined as any single asset which has an acquisition cost of $5,000 or more and having a useful life of at least two years, whether purchased outright, acquired through a capital lease, or through donation. Asset Managers are responsible for completing the Capital Equipment Addition Request Form for all equipment purchased for, or assigned, to them or their department, using the Capital Equipment-New Item Form. 

Write-Off and Disposal of Capital Equipment

Any piece of capital equipment which has ceased to function properly and any piece which is no longer needed by the department should be disposed of and removed from the inventory records.
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Information regarding capital equipment items which have been removed from the inventory records will be maintained for one year. Ultimate disposition data shall include date of disposal and method of disposal. Method of disposal includes trade-in, sale price, loss, theft or salvage.

Fully depreciated assets which are still being utilized should remain on the inventory records.

For more information on the UWSP Surplus Property Program see: Surplus Property.

Transfer or Trade-In of Capital Equipment

If Capital Equipment is transferred within your department to another department on campus, or traded-in toward the purchase of new equipment, a Transfer/Trade-in Form must be completed. 

Federally Funded Capital Equipment

Title to property purchased in whole or in part with federal funds normally vests with the University.  However, the granting agency retains what might be considered a "lien" on the property which controls equipment management requirements, its use and disposition.  The granting agency also retains the right to require transfer of title of property with a current per unit fair market value of $5,000 or more to the federal government or an eligible non-federal party up to 120 days after the end of federal support for the program or project.  For questions on Federally Funded Capital Equipment, please contact the Purchasing Department.  

Lease Purchased Equipment

Equipment purchased under a lease purchase agreement shall be capitalized if it meets one of the following tests:
  • The lease transfers ownership of the property to the university.
  • The lease contains a bargain purchase option.
  • The lease term (including any bargain renewal options) is equal to 75% or more of the estimated economic life of the leased property.
  • The present value of the minimum lease payments equals or exceeds 90% of the fair market value of the leased property.
The leased item should be added to the capital equipment inventory at the present value of all of the minimum lease payments over the life of the lease using the Capital Equipment-New Item Form​.

Constructed and Fabricated Equipment

Constructed equipment shall be capitalized if the cost of material and labor incurred by the UW institution is $5000 or more and its useful life is two or more years. Labor costs should be included only when these cost are documented by an external source or in house shop. Documentation normally would include internal or external requisitions. 

Contact Purchasing if this section applies.

Component Parts

Component parts which individually cost less than the capitalization level but when combined exceed the capitalization level, shall be capitalized when purchased as a functional unit.

Contact Purchasing if this section applies.

Physical Inventory Requirements

System Administration requires that a physical inventory of capital equipment be performed every two years in order to verify that the capital equipment listed on the inventory records can be located and is in use.

Prior to the physical inventory, each department will be asked to verify that all capital equipment for which it is responsible, including that used by employees at home or off the UW premises, can be located and is in use. Inventory records will be updated accordingly in order to minimize the number of errors in physical inventory.

Asset Manager Responsibilities

Each Asset Manager in conjunction with the Department Head is responsible for:
  • Completing the Capital Equipment-New Item Form upon request of Capital Equipment Administrator.  
  • All equipment purchased for and assigned to them or their department.
  • Assisting the Capital Equipment Administrator with the tagging of the new capital equipment.
  • Assisting the Capital Equipment Administrator and Audit with physical inventories.
  • Developing clear, consistent internal policies and procedures for dealing with capital equipment.  (Include acceptable use, disposal, transfer, and recording of property location, inventory counts, and physical security measures in departmental policies and procedures. Asset Managers may fine-tune policies and procedures to meet own unique operating guidelines, but this document should provide baseline or minimum requirement in regard to assets.)
  • Reviewing Purchasing Department reports for accuracy and completeness.
  • Reporting theft, loss, or disappearance to Protective Services and the Purchasing Department.
  • Keeping a current record of property located off-campus in the form of descriptions, capital equipment asset tag numbers, period of time and location of property off-campus, and person(s) in charge of the property.
  • Notifying the Surplus Office and Purchasing Department when disposing of unwanted or unserviceable property, observing agency funding guidelines, if appropriate.
  • Turning unused or underused capital equipment over to University Surplus so that others within the University may use it. The Asset Manager must notify the Purchasing Department when capital equipment is declared surplus property (Disposal of Capital Equipment).
  • Reporting capital equipment assets donated to the University for capitalization.
  • Notifying the Purchasing Department when capital equipment assets are donated to an organization outside the University. Equipment assets to be donated must be fully depreciated to be considered for approval.
  • Completing inventory verification upon request of the Capital Equipment Administrator (See Inventory Verification). 

Department Chairs, Deans, Directors and Administrators Responsibilities

It is the responsibility of the Department Chair, Dean, Director, or Administrator to:

  • Support all responsibilities outlined in this document.
  • Oversee reporting the loss and/or undocumented disposal of assets.
  • Supervise the faculty/staff member who is an asset custodian of capital equipment
  • Review the annual capital equipment Verification Form generated by the Purchasing Department.
  • Take corrective action if an Asset Manager is not complying with the policies outlined in this manual.
  • Delegate duty to an Asset Manager.
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The UWSP Capital Inventory Program maintains records of all capital equipment owned by UWSP. 

For more information about capital inventory, contact Purchasing.