Equipment Management

Direct Disposal

TRADED IN

Equipment may be traded in (usually for financial credit) at the time that new equipment is purchased.  If so, report the property number(s) of the assets in the appropriate section of the Purchase Requisition (REx or Procurement Gateway).  Equipment Management will remove the assets from the department's inventory during processing of the Purchase Requisition.  A trade-in not reported on the Purchase Requisition may subsequently be removed from inventory by submitting an Equipment Inventory Modification Request (EIMR).

CANNIBALIZED FOR PARTS

Non-functional or obsolete equipment may be cannibalized for parts, if certain parts may be re-used or incorporated into other equipment.  The non-cannibalized parts are then usually discarded by the department.  Assets which have been cannibalized for parts are removed from inventory by submitting an EIMR. Equipment which has been cannibalized is considered to have been destroyed (the disposal code is the same).

DESTROYED

Equipment which is destroyed in an accident or disaster, or discarded by the department when no longer functional (this is not an approved method of disposal - all excess equipment should be sent to Surplus) is removed from inventory by submitting an EIMR.

LOST

If equipment cannot be located during a physical inventory or statistical sampling, and the manner of its disposal cannot be determined (for example, that it had been thrown out the previous year and the disposal not reported), the department shall report the loss by submitting an Equipment Inventory Modification Request (EIMR); The UCSB Procedure for Reporting the Loss of Inventorial Equipment shall be followed in determining whether or not the loss also needs to be reported to the Campus Police and Risk Management departments.

Procedure for Reporting the Loss of Inventorial Equipment

Equipment Custodian is to report losses when they are discovered.

  1. For the loss of 20 or fewer items of obsolete (i.e., fully depreciated) inventorial equipment:

a) Conduct an internal review to determine why EIMRs were not prepared and submitted in a timely fashion to record the disposals. Institute new procedures to ensure timely reporting in the future.

b) Report the loss to Equipment Management by completing an EIMR, in either its paper or on-line format. No additional documentation is needed.

c) File the copy of the paper EIMR signed by the Equipment Manager after it is returned via campus mail; OR, print and file a copy of the on-line EIMR once its status has been updated to “Transferred,” indicating final approval by Equipment Management.

  1. For the loss of:
  • More than 20 items of equipment (even if all obsolete/fully depreciated); or
  • Items with an acquisition value of $100,000 or more (even if obsolete/fully depreciated); or
  • Items of equipment still within Useful Life (even if their depreciated value is less than $1500, for example, a laptop with a useful life of 3 years purchased for $2,100 and reported lost 6 months later, when its depreciated value is technically “only” $1,400); or
  • Items retaining a depreciated value of $1500 or more:

a) Conduct an internal review to determine why EIMRs were not prepared and submitted in a timely fashion to record the disposals. Institute new procedures to ensure timely reporting in the future.

b) Prepare a memo, addressed to Equipment Management, explaining the circumstances surrounding the loss and detailing the new procedures instituted to ensure that timely EIMRs are processed in the future. The Department Chair or Director must sign this memo.

c) Report the loss to Equipment Management by completing an EIMR, in either its paper or on-line format.

d) Attach the memo to a paper EIMR and send them to Equipment Management; OR, if submitting an on-line EIMR, send the memo to Equipment Management, after noting this fact in the “Remarks” section of the on-line EIMR.

e) File the copy of the paper EIMR signed by the Equipment Manager after it is returned via campus mail; OR, print and file a copy of the on-line EIMR once its status has been updated to “Transferred,” indicating final approval by Equipment Management.

Procedure for Reporting the Recovery of Lost Inventorial Equipment

Equipment Custodian is to:

  1. If inventorial equipment that was reported lost is later found, notify Equipment Management by submitting a paper EIMR. (On-line EIMRs cannot be used to record this type of transaction).
  2. File the copy of the EIMR signed by the Equipment Manager after it is returned via campus mail.
  3. If the Police Department was investigating the loss, contact the officer in charge of the investigation to inform him/her of the recovery of the item(s).

STOLEN

When the theft of equipment is detected, the department must immediately report it to Campus Policy and Risk Management, in accordance with the UCSB Procedure for Reporting the Theft of Inventorial Equipment. The stolen equipment is reported to Equipment Management by submitting an EIMR. If the stolen equipment is recovered, its return to inventory is also reported by submitting an EIMR, in accordance with the UCSB Procedure for Reporting the Recovery of Stolen Inventorial Equipment.

Procedure for Reporting the Theft of Inventorial Equipment

The Equipment Custodian is to immediately report the theft of inventorial equipment. After the theft has been detected:

  1. Notify UCSB Police Department; an officer will be sent to the department to investigate the theft and complete a Police Report.
  2. Notify Risk Management to initiate an insurance claim and provide the information required to complete a Property Loss Report. In general, send Risk Management: 

a) A department memo explaining the circumstances of the theft,

b) The police report number,

c) Photographs, and

d) Proof of ownership (such as, purchase order, receipt, invoice).

  1. Report all items of stolen inventorial equipment to Equipment Management by completing an EIMR, in either its paper form or on-line version.

a) Enter the Police Report number in the “Remarks” section of the EIMR.

b) File the copy of the paper EIMR signed by the Equipment Manager after it is returned via campus mail; OR, print and file a copy of the on-line EIMR once its status has been updated to “Transferred,” indicating final approval by Equipment Management.

Procedure for Reporting the Recovery of Stolen Inventorial Equipment

Equipment Custodian is to:

  1. If the stolen inventorial equipment is recovered through the action of the UCSB Police Department or another law enforcement agency, notify Equipment Management by submitting a paper EIMR. (On-line EIMRs cannot be used to record this type of transaction).
  2. If the Equipment Custodian locates the item(s) on its own and determines that they were simply misplaced, not stolen, report the recovery to:

a) Equipment Management, by submitting a paper EIMR; and

b) UCSB Police Department, thereby allowing it to close the case, which might otherwise remain open; and

c) Risk Management/Insurance, in case any reimbursement for the loss is pending and needs to be canceled, or has been made and must be refunded by the Equipment Custodian.

  1. File the copy of the EIMR signed by the Equipment Manager after it is returned via campus mail.

SOLD (IN COORDINATION WITH SURPLUS)

Departments are not authorized to conduct direct sales of equipment without the prior approval of Surplus and Equipment Management.  If such permission has been granted, all funds received for the sale must be sent to Surplus for deposit into the University's approved income account for surplus sales; the department's share of the proceeds will be journaled to it.  The sale is reported to Equipment Management by submitting an EIMR.