Chapter 4: Transfer of Capital and Controlled Equipment
The University of Texas at El Paso (UTEP) is committed to the responsible and orderly transfer of equipment between UTEP and external entities. UTEP adheres to University of Texas System guidelines and state and federal regulations regarding the transfer of supplies and equipment. For the purposes of this policy, "equipment" refers only to capital and controlled equipment (refer to UTEP Inventory Management Policies and Procedures for definitions of capital and controlled equipment). UTEP considers transfers of equipment only to other universities and institutions.
Ownership of equipment purchased with state funds, designated funds, or gift and endowment funds vests with UTEP. Ownership of equipment purchased with sponsored project funds may be determined as follows:
- Ownership of equipment purchased with federal grant and contract funds generally vests with UTEP;
- Ownership of equipment purchased with federal contract funds is determined by the terms of the contract;
- Ownership of equipment purchased with private grant or contract funds generally vests with UTEP, unless specifically stated otherwise in the grant guidelines or contract terms;
- Ownership of equipment purchased with sponsored project funds that expired prior to the equipment's transfer to UTEP generally vests with UTEP. The eligibility for transfer of equipment may be determined as follows:
- Equipment purchased using state funds, designated funds, or gift and endowment funds is eligible for transfer. This transfer may be effected only if the department chair, dean, VP for Research, CFO and President approve the transfer and the receiving institution agrees to purchase the equipment from UTEP at a depreciated cost to be determined by the University's Comptroller’s Office then only if it is considered surplus to UTEP.
- Equipment transferred to UTEP with a faculty member may be transferred with the same faculty member to another university; in such cases, there will be no charge to the receiving university for the equipment.
- Equipment purchased with active sponsored project funds is eligible for transfer only if the project is being transferred with the Principal Investigator (PI) to another institution. In such cases, there will be no charge to the receiving institution for the equipment, and requires documentation of funding agency and Vice President for Research approval.
- Equipment purchased with sponsored project funds that originated at UTEP and have since expired is eligible for transfer with the PI to another university. This transfer may be effected only if the department chair, dean, VP for Research, CFO and President approve the transfer.
- If any lab or clinic equipment with posted hazard warning sign(s) (e.g., biological, chemical, radiological, UV) must have its safety status verified prior to relocation, the PI must also contact the director of Environmental Health and Safety prior to moving such equipment.
4.1.1 Transfer of Equipment to or From Another State of Texas Institution
When UTEP departmental personnel become aware of the need for and the willingness to receive certain equipment by a department or employee of another State of Texas-supported agency or institution, the head of the UTEP department possessing the equipment must submit a written request that has been signed by the department chair, dean, Vice President, CFO and President to the Comptroller's Office requesting approval to transfer the equipment. The written request should list the UTEP tag number, property description, and reason for transfer.
If the Comptroller's Office approves the transfer, the Inventory Department must remove the property identification tags before the equipment is removed from UTEP premises and prepare the necessary forms and documents to effect the transfer in the State Property Accounting System (SPA).
When a UTEP department receives equipment from another state institution, the department receiving the equipment must notify the Office of Institutional Property Management to ensure that the transfer documents were processed by the transferring state agency and received. Once the information is received, the Inventory department will tag those assets that meet the capitalization criteria and enter the property into the property management system.
4.1.2 Transfer of Equipment Purchased with Active Sponsored Project Funds to Another Institution
Procedures for transferring equipment purchased with active sponsored project funds differ depending on the type of contract or grant. The PI must contact the Office of Research and Sponsored Projects (ORSP) to determine the appropriate procedure and obtain the appropriate Grant/Equipment Transfer form. Before completing the Grant/Equipment Transfer form, the PI should contact Inventory to obtain a list of equipment that is eligible for transfer. The PI must submit the completed Grant/Equipment Transfer form to Contracts & Grants Accounting for verification. The form should be completed with the exception of approvals and should list the equipment to be transferred. The list should include the following:
- inventory tag number
- acquisition cost
- account number
Contracts & Grants Accounting will forward the request to the department head, who will indicate his or her approval and secure the approval of the dean, ORSP, VP for Research, VP for Business Affairs, and the President. Final approval rests with the President. The equipment shall not be removed from UTEP until all approvals have been obtained and the inventory tags have been removed by Office of Institutional Property Management.
4.1.3 Transfer of Equipment Purchased with Expired Sponsored Project Funds to Another Institution
The requesting PI must submit a letter to the Comptroller's Office requesting transfer of equipment purchased with expired sponsored project funds. The letter must bear the signatures of the faculty member's department chair and dean, indicating their approval as well as the VP for Research and the President. The PI must include with the letter the receiving institution's agreement to purchase the equipment at a depreciated cost, as determined by the Comptroller's Office. Depreciated costs will be determined using industry standards or by obtaining an independent appraisal at the expense of the requesting department.
The equipment shall not be removed from UTEP until all approvals have been obtained and the inventory tags have been removed by Inventory. It is the PI's responsibility to arrange for transport of the equipment with the receiving institution.
4.1.4 Transfer of Equipment Transferred From UTEP to Another Institution
The requesting PI must submit a letter to the Comptroller requesting transfer of equipment that he or she transferred from UTEP. The letter must bear the signatures of the faculty member's department chair, dean and VP for Research indicating their approval. In such cases, there will be no charge to the receiving institution for the equipment. The equipment shall not be removed from UTEP until all approvals have been obtained and the inventory tags have been removed by Inventory. It is the PI's responsibility to arrange for transport of the equipment with the receiving institution.
4.1.5 Transfer of Equipment from a Non-State of Texas Institution
When a UTEP department receives equipment from another institution, the department receiving the equipment must immediately notify the Inventory Department. Documentation supporting transfers of equipment from non-State of Texas institutions shall be forwarded to Inventory and will include the item description, serial number (if available), and the book value of the item. After obtaining this information, Inventory is responsible for tagging equipment considered a capital asset and recording it in the University records.