UH System Policies and Procedures
- Board of Regents Policies
- Executive Policies
- + 1. General Provisions
- + 2. Administration
- + 3. Organization
- + 4. Planning
- + 5. Academic Affairs
- + 6. Tuition, Financial Assistance, and Fees
- + 7. Student Affairs
8. Business and Finance
- 025. Fiscal Responsibilities within the University
- 026. Appointment of Fiscal Administrators and Assistant Fiscal Administrators
- 200. Overview
- 215. Definitions
- 220. General Principles
- 225. Limitations in Purchasing
- 230. Contracting for Services
- 235. Competitive Sealed Bidding
- 240. Competitive Sealed Proposals
- 245. Professional Services Procurement
- 246. Professional Services Procurement for Architects, Engineers, Land Surveyors, and Landscape Architects
- 250. Small Purchases
- 255. Sole Source Procurement
- 260. Emergency Procurement
- 265. Specialized Purchasing
- 266. Purchasing Cards
- 270. Types of Contracts
- 275. Contract Formation and Administration
- 281. Construction and Professional Services in Support of Construction
- 285. Cost or Price Reasonableness
- 290. Requirements of Federally Funded Purchases
- 295. Small Business and Small Disadvantaged Business Programs
- 300. Interests in Real Property
- 305. Use of Non-University Space and Facilities
- 350. Concessions
- 375. Fund Raising by a Recognized University Affiliated Volunteer Group or Non-Profit Organization
- 400. Risk Management Guidelines and Procedures
- 450. Records Management Guidelines and Procedures
- 509. Property and Equipment Overview
- 510. Loaned Property, Personally Owned Property, and Collections
- 512. Identification of Property
- 516. Property and Equipment Valuation (formerly Valuation of University Equipment)
- 521. Property and Equipment Acquisition
- 523. Receiving Property and Equipment
- 524. Property and Equipment Maintenance
- 530. Property and Equipment Storage and Movement
- 536. Subcontract Control of Government Property
- 539. Property and Equipment Record Maintenance
- 540. Physical Inventory
- 541. Property and Equipment Management Reports
- 542. Property and Equipment Utilization
- 543. Property and Equipment Transfer and Retirement
- 550. Capitalization
- 555. Impairment of Capital Assets and Retirement of Real Property
- 560. Post-Issuance Tax Compliance Procedures for Tax-Exempt and Build America Bonds
- 561. Tax Treatment of Non-Service Financial Assistance for Individuals
- 571. Administrative Procedure AP 8.571, University of Hawai‘i at Mānoa Athletics Ticket Sales for Events that are not University of Hawai‘i Athletic Competitions and that Involve Payments to Non- University of Hawai‘i Entities
- 602. General Ledger
- 611. Account Code
- 612. Establishment and Maintenance of Account Codes
- 615. Object Codes
- 617. Revenue and Higher Education Function Codes
- 619. Fund Groups
- 620. Gifts
- 621. Delinquent Financial Obligation Tax Setoff Hearings
- 622. University Endowments
- 635. Accounting For Leases
- 636. Supply Inventory
- 641. Journal Entries
- 650. Continuation Accounts
- 651. Non-Student Accounts Receivable and Delinquent Financial Obligations
- 671. Year-End Accounting Data
- 685. Cancellation or Replacement of University of Hawaii General Account Checks
- 686. Terminal Vacation Payout
- 701. Receipting and Depositing of Funds Received by the University
- 702. Administrative Procedure AP 8.702, Establishment of Electronic Funds Transfer and Receipt of Funds
- 710. Administrative Procedure AP 8.710, Credit Card Program
- 711. Administrative Procedure AP 8.711, Electronic Payments via University Websites
- 731. Student Accounts Receivable and Delinquent Financial Obligations
- 740. Dishonored Checks
- 750. Establishment and Maintenance of Change Funds
- 760. IRS Compliance for Reporting Cash Payments Over $10,000
- 770. Student Refunds
- 806. Roles and Responsibilities for Payment Transaction Processing
- 808. Bank Wire Transfer
- 851. Employee Out-of-State and Intra-State Travel
- 852. Personal Automobile Mileage Voucher
- 863. Relocation Allowances
- 867. Information Reporting on 1099-MISC and Backup Withholding on Payments
- 868. Reporting and Withholding on Payments to Nonresident Aliens and Foreign Corporations
- 870. Pay Types and Pay Days
- 871. Distribution and Security of Paychecks
- 872. Emergency (Priority) Payroll
- 873. Payroll Processing Cycle Deadlines
- 876. Overtime Authorization and Compensation
- 877. Salary and Wage Overpayment Recovery
- 879. Post Death Payments
- 926. Administrative Procedure, AP 8.926 Administrative and Financial Management Requirements for Extramurally Financed Research and Training Programs/Activities of the University of Hawai`i (UH
- 927. Administrative Procedure, AP 8.927 Facilities & Administrative Cost Charges in Contracts and Grants
- 951. Accounting for Federally Matching Equipment Grants
- 956. Financial Conflicts of Interest (FCOI) for Public Health Services (PHS) Grants, Cooperative Agreements and Contract
- + 9. Personnel
- + 10. Land and Physical Facilities
- + 11. Miscellaneous
- + 12. Research
- Abolished Procedures (Post Oct. 2014)
- Archived AP
UH‐Related Laws and Rules
- Hawaiʻi Revised Statutes (HRS) 304A
- Hawaiʻi Administrative Rules (HAR) Title 20
Administrative Procedure 8.509 Administrative Procedure 8.509
Property and Equipment Overview
Administrative Procedure Chapter 8, Business and Finance
Administrative Procedure AP 8.509, Property and Equipment Overview
Effective Date: May 2016
Prior Dates Amended: None. This is a new procedure that replaces AP 8.505,
AP 8.525 and AP 8.538.
Responsible Office: Office of the Vice President for Budget and Finance/Chief Financial Officer
Governing Board and/or Executive Policy: EP 1.102, Authority to Manage and Control the Operations of the Campus
Review Date: August 2018
To prescribe the procedures and responsibilities for the management of equipment and controlled-property owned by or in the custody of the University of Hawaiʻi (University).
To provide definitions of key terms referenced in the management of property accountable to the University.
To provide federal sponsoring agency requirements as defined by the Office of Management and Budget (OMB) Uniform Guidance 2 CFR 200, OMB Circular A-110 and A-21, as well as Federal Acquisition Regulation (FAR) 52.245-1.
A. Acquisition Cost – The net invoice unit price of equipment, including the cost of modifications, attachments and accessories necessary to make the property usable for the purpose for which it is acquired. Other charges, such as the cost for installation, transportation, taxes, duty, or protective in-transit insurance, shall be included in the unit acquisition cost in accordance with University accounting practices.
B. Agency – The entity from which the University derives extramural support through contracts or grants (i.e., organizations, corporations, foundation or person).
C. Asset Representative – The individual responsible for maintaining continuous, accurate property records, periodically reporting location and condition changes, coordinating the annual physical inventory reporting, ensuring proper usage, safe keeping and maintenance of all property for which they are accountable.
D. Asset Tag – Preprinted property decals that shall be affixed to equipment and controlled property by the asset representative or custodial department immediately upon receipt from the Property and Fund Management Office (PFMO).
E. Capital Asset – Either movable or non-movable assets that benefit more than a single fiscal period. A capital asset is also known as a fixed asset or as property, plant and equipment. Typical examples of non-movable assets are land, land improvements, infrastructure, buildings and building improvements. Movable capital assets include equipment.
F. Capitalization Threshold – The minimum unit value at which an item is defined as equipment. The University’s current capitalization threshold is $5,000 per unit.
G. Controlled Property – Tangible, non-expendable property with a unit cost less than $5,000 and meets either of the following criteria:
1. Firearms or weapons;
2. Federal or agency owned property under the provisions of an extramural award accountable to the University.
H. Custodial Department – The department or unit of the University having physical control of the property (i.e., department utilizing the equipment or department to which the equipment was awarded by the extramural sponsor).
I. Donated Equipment – Property given, bequeathed, or granted to the University by a public or private organization or by an individual for an expressed purpose, a restricted purpose or an unrestricted purpose.
J. Equipment – Tangible, non-expendable property having a useful life of at least one year or more and an acquisition cost of $5,000 or more per unit. Equipment also includes software with an acquisition or development cost of $25,000 or more.
K. Excess Property – Property with a remaining useful life which is no longer required
by a department, but not necessarily excess to the University’s systemwide needs.
Such property remains subject to screening, transfer or retirement actions.
L. Expendable Property – Non-inventorial property that is consumed, loses its identity, or has a limited life span.
M. Fabricated Equipment – Equipment that has been constructed or assembled into one identifiable unit. The cost assigned to the unit is the total of its component parts, materials, consumable supplies and applicable labor and should have a total cost of $5,000 or more with a useful life of more than one year.
N. Federal Contracting Officer – The duly authorized individual delegated by appropriate authority to enter into a contract, and thereafter administer the contract, on behalf of the Federal Government.
O. Federally Owned Property – All property owned by or title to which is vested in the
Federal Government under terms of a contract of grant. Federal property includes both government furnished and contractor acquired property.
1. Government furnished property (GFP) is property in the possession of or directly
acquired by the Federal Government and subsequently made available to the contractor by transfer or delivery to the University (contractor) for performance of a contract or grant. Title to GFP remains vested in the government unless ownership transfer is indicated.
2. Contractor acquired property (CAP) is property purchased or otherwise provided
by the University, the cost of which is reimbursable under the contract or grant. Under contracts, ownership of CAP generally vests in the Federal Government but may be transferred by authority of an administrative contracting officer. For items with a unit acquisition cost of $5,000 or more, the sponsoring federal agency may reserve the right to transfer ownership to the Federal Government or to a third party named by the Federal Government. Under grants, ownership of CAP generally vests with the University.
P. Loaned Property – Property which is either borrowed by the University from an external agency or from one University department to another; or loaned by the University to an external agency or individual that is approved by the department head and PFMO.
Q. Materials/Supplies – All property including consumables not classified as equipment or controlled property.
R. Non-Capital Asset – An asset that does not meet the criteria for a capital asset or controlled property that is managed in KFS by the custodial department.
S. Non-Expendable Property – Property which has a continuing use, retains its original identity during the period of use, and is not consumed in use.
T. Ownership – The state of being an owner who has certain rights, duties and control over property. Ownership (i.e., title) to all equipment and controlled property resides with either the University or the project sponsor. Title to equipment and controlled property does not reside personally with the principal investigator, asset representative, faculty member or staff.
Ownership of an asset is designated by the alphabetical suffix assigned to the last position in the movable and non-movable asset payment object code.
1. A – Owned by another agency
2. F – Owned by the Federal Government
3. G – Owned by the University and funded by a federal sponsor
4. U – Owned by the University
U. Principal Investigator (PI) – The UH employee responsible for a given extramurally funded project, in accordance with Regents Policy, RP 12.202. For purposes of this administrative procedure, the PI is also the individual responsible for maintaining continuous, accurate property records, periodically reporting location and condition changes, coordinating the annual physical inventory reporting, insuring proper usage, safe keeping and maintenance of all property for which they are accountable. The PI is usually the asset representative for an extramurally funded project.
V. Subsequent Acquisition – Costs incurred subsequent to the initial acquisition of an equipment item or after a fabrication is placed in to service. A subsequent acquisition extends the life or increases the production capacity of the equipment and has a unit acquisition cost of $1,000 or more. Any subsequent acquisition with a unit cost greater than or equal to $5,000 will be assigned a separate asset tag.
W. Surplus Property – Any property that no longer has any value to the University or to the State.
X. University Property Administrator – The Director of PFMO is responsible for the management and control of all capital assets and controlled property in which the title is vested with the University, Federal Government, or other agencies.
Y. Unrecorded Found Property – Property discovered by the custodial department which does not appear on the inventory records. In reporting such property, estimated value must meet the University’s capitalization criteria for equipment.
III. Administrative Procedure
1. To ensure that the University’s property management system is responsive to
state, federal and agency requirements.
2. To maintain a property management system utilizing voluntary consensus
standards to produce a life-cycle approach to property management in accordance with Federal Acquisition Regulation (FAR) 52.245-1.
3. To provide a property management system for equipment and controlled property by item description, asset tag, cost, location, asset representative, ownership and other essential information in order to maintain an effective inventory, control, accounting, retirement and reporting system.
4. To prescribe procedures for the management of property furnished by the
Federal Government or whose cost was charged to a University project supported by a federal contract or grant.
5. To ensure that for extramurally funded equipment and controlled property,
sponsor award terms and conditions are observed and followed by the PI, asset representative and fiscal administrator. For federally funded equipment, the following regulations also govern (refer to Section VI. References, for hyperlinks to the federal regulations):
a. Uniform Guidance 2 CFR 200, §.439 and §§.310 to .316 (Property
b. OMB Circular A-110, §§.30 to .37 (Property Standards)
c. OMB Circular A-21, §.18 (Equipment and Other Capital Expenditures)
d. Federal Acquisition Regulation 52.245-1 (Government Property)
1. The Board of Regents (BOR), as a constitutionally established independent corporation, is responsible for all equipment and controlled property to which it holds title. Title to property formerly owned by an external sponsor is vested with the BOR to the extent that it has explicitly agreed to accept responsibility therefor.
2. The BOR, by authority of Section 304A-103, Hawai`i Revised Statutes, can acquire both real and personal property and can hold, maintain, use, operate, sell, lease, and retire of same whenever appropriate.
3. The University, notwithstanding the authority of the BOR, is accountable for all
capital assets acquired and retired during the year since the inventory recorded as of
the last preceding July 1. Chapter 103D, Hawaiʻi Revised Statutes, requires the University to submit a detailed accounting certificate to the State Comptroller annually on or before September 15.
4. The University President, Vice President for Budget and Finance/Chief Financial
Officer, and the Director of Financial Management and Controller, have redelegated the responsibility for the management and control of inventorial property to the Director of PFMO.
5. The Director of PFMO is the University Property Administrator who has
systemwide responsibility to implement and administer the provisions of this administrative procedure and to meet state, federal and agency requirements. The Director shall inform all members of the faculty and administrative officers of their obligations for the use, care, maintenance, and safekeeping of all property under the control of their respective departments or units. The Director shall issue written instructions relating to acquisition, use, transfer, and retirement of inventorial property and government property for which the BOR is responsible. The Director shall provide for maximum use of all property.
6. Department heads, directors, PIs, asset representatives, or fiscal administrators
are delegated as responsible custodians when assigned property account(s). Asset representatives have responsibility for direct control, use, care, maintenance, and safekeeping of all property for their respective departments or units. Further, they shall maintain and control the physical location, account records, and assure the security of the property to accurately support the University’s centralized inventory accounting records. The asset representative is responsible for ensuring that reasonable security measures have been implemented to prevent theft, damage or misuse of equipment and controlled property.
7. During the absence of an asset representative, the responsibility for the control,
maintenance and custody of the University, federal and agency owned property rests with the department head or director for the unit which acquired the property. Such responsibility includes property acquired for use on an extramurally funded project by a PI during the project or thereafter until the project has been satisfactorily closed out. Department heads or directors, however, may assign administrative functions to department staff personnel to accomplish the custodial responsibilities which include, but are not limited to:
a. Identification and location of all inventorial University or sponsor owned property purchased for, or assigned to, their respective departments;
b. Receiving and inspecting delivered goods and processing the payment for such goods in a timely manner;
c. Identifying and reporting inaccurate information to their fiscal administrator for any errors found in the asset records or on the annual inventory verification reports. The fiscal administrator shall ensure that the asset records are updated as appropriate in KFS;
d. Ensuring appropriate care, custody and physical security so that the proper stewardship of public, federal and agency funds is supported;
e. Initiating asset maintenance e-Docs (edits, loans, fabrications, transfers, and retirements);
f. Preparing and submitting to PFMO supporting documents and forms such as:
(1) PFMO-31, Property Loan and Indemnification by Non-University Personnel
(2) PFMO-73, Fabricated Equipment
(3) PFMO-73C, Substantial Completion of Fabricated Equipment
(4) PFMO-75, Request for Relief of Accountability for Non-Expendable Personal Property (Title Not Vested with University)
(5) Form RMP-001, State of Hawaiʻi Report of Loss or Damage of State Property
(6) SPO Form 26, State of Hawaiʻi Transfer of Property
C. Exceptions for Classifying Equipment or Controlled Property
1. The following exceptions have been established on a systemwide basis:
a. All weapons such as handguns, rifles, shotguns, and other explosive
devices shall be added to KFS, regardless of cost;
b. Small attachments, accessories or auxiliary apparatus initially acquired to
make the inventorial property usable for the purpose for which it was acquired;
c. Supplies or materials under a contract or grant where special requirements
2. The following items are not considered equipment or controlled property:
a. Consumable or expendable supplies (except for supplies consumed in the fabrication of equipment or supplies discussed in III.C.1.c. above);
b. Glass, cloth and rubber products;
c. Parts of buildings and structures permanently built-in or installed and the removal of which would impair the building or structure;
d. Attachments to buildings, such as wiring, electrical fixtures, heating systems, air conditioning systems, plumbing systems, boilers, and elevator systems that are capitalized as real property (building);
e. Replacement parts that do not extend the life or increase the value of the equipment.
D. Ownership of Federally Funded Property
1. Property furnished by the Federal Government shall be identified as federally owned property.
2. Property charged to federal contracts, grants or other agreements
a. Expendable Property – Ownership vests with the University upon acquisition, unless otherwise specified in the contract, grant or other agreement.
b. Non-Expendable Property for Grants and Other Agreements
(1) Unit acquisition cost less than $5,000 per unit
(a) Ownership vests with the University upon acquisition with no other obligation or accountability to the Federal Government for its use or disposition, unless specified otherwise in the grant or other agreement. This property shall be identified as University owned property.
(b) When the grant or other agreement specifies that ownership of the property shall remain with the Federal Government, the property shall be identified as federally owned property.
(2) Unit acquisition cost of $5,000 per unit or greater
(a) Ownership vests with the University upon acquisition unless specified otherwise in the grant or agreement. The property shall be identified as University owned property. The Federal Government may reserve the right to transfer ownership to the Federal Government or to a third party named by the Federal Government. Such reservation is subject to the following standards:
(i) The property shall be appropriately identified in the grant or other
agreement or otherwise made known in writing, and
(ii) The federal sponsoring agency shall issue disposition instructions within one hundred twenty (120) calendar days after the end of the federal support of the project for which it was acquired.
(b) When the grant or other agreement specifies that ownership of the property shall remain with the Federal Government or when the Federal Government exercises its right to take ownership, the property shall be identified as federally owned property.
c. Non-Expendable Property for Contracts: Ownership of property shall be
directed by the terms and conditions of the contract.
IV. Delegation of Authority
There is no administrative procedure specific delegation of authority.
V. Contact Information
Property & Fund Management Office, 956-8735, or email@example.com
A. Link to superseded Executive Policies in old format https://www.hawaii.edu/policy/archives/ep/
B. Link to Administrative Procedures in old format
C. Link to Uniform Guidance 2 CFR 200, §.439 and §§.310 to .316 (Property Standards)
D. Link to OMB Circular A-110, §§.30 to .37 (Property Standards) https://www.whitehouse.gov/omb/circulars_a110/
E. Link to OMB Circular A-21, §.18 (Equipment and Other Capital Expenditures) https://www.whitehouse.gov/omb/circulars_a021_2004
F. Link to Federal Acquisition Regulation 52.245-1 (Government Property) https://www.acquisition.gov/far/html/52_245.html
VII. Exhibits and Appendices
Attachment 1: PFMO-31, Property Loan and Indemnification by Non-University Personnel
Attachment 2: PFMO-73, Fabricated Equipment
Attachment 3: PFMO-73C, Substantial Completion of Fabricated Equipment
Attachment 4: PFMO-75, Relief of Accountability for Non-Expendable Personal Property (Title Not Vested with University)
Attachment 5: RMP-001, State of Hawaii Report of Loss or Damage of State Property
Attachment 6: SPO Form 26, State of Hawaii Transfer of Property
Vice President for Budget and Finance/Chief Financial Officer
May 27, 2016
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