8.501 - Non-Capital Assets
UHCC Policy Chapter 8, Business and Finance
UHCC Policy 8.501, Non-Capital Assets
Effective Date: August 2009
Prior Dates Amended: April 2018 (recodified)
Responsible Office: Office of the Vice President for Community Colleges
Governing Board of Regents Policy: N/A
Review Date: February 2021
I. Purpose:
To establish responsibilities for the appropriate management and control of non-expendable property, specifically non-capital theft sensitive controlled property assets, hereafter defined as “Non-Capital Assets” owned by or in the custody of the University of Hawaii Community Colleges. These non-capital assets have a useful life of more than one year and an acquisition cost of at least $1,000, but less than $5,000 per unit, and are not considered to be equipment. To also establish responsibilities for the care, custody, and physical security of non-capital assets to ensure proper stewardship of public, Federal, or agency funds is supported.
The non-capital assets covered under this UHCCP are not covered by APM A8.505 – State Personal Property or APM A8-550 – Capitalization, as APM A8.505 is limited to equipment and controlled property administered by the Property and Fund Management Office (PFMO).
II. Definitions:
- Acquisition – The net invoice unit price of a non-capital asset including the cost of modifications, attachments, accessories, or auxiliary apparatus 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 the protective in-transit insurance, shall be included in the unit acquisition cost in accordance with University accounting practices.
- Capital Asset – Capital assets are major assets that benefit more than a single fiscal period. Typical examples are land, land improvements, infrastructure, buildings, building improvements and equipment.
- Controlled Property – Tangible, non-expendable personal property less than $5,000 per unit which is not capitalized and meets either of the following criteria:
- Any firearms/weapons; and
- Property which is Federal or agency owned under the provisions of an extramural award and is accountable to the University.
- Disposal – To pass or part with, in relieving custodial responsibility when an asset is sold, lost, obsolete, damaged beyond economic repair, etc.
- Equipment – Any tangible non-expendable personal property having a useful life of more than one year, and an acquisition cost of $5,000 or more per unit (as defined in APM 8.550, Capitalization).
- Non-Capital Asset – An asset that does not meet the criteria for a capital asset or is considered to be controlled property. Non-capital assets have a useful life of more than one year and an acquisition cost of at least $1,000, but less than $5,000 per unit.
- Transfer – Assigning custodial responsibility of an asset to another custodian or account; movement of property to another physical location.
III. Executive Policy:
- Theft sensitive non-capital assets are items identified at high risk for loss, which have a useful life of more than one year and an acquisition cost of at least $1,000, but less than $5,000 per unit and shall include:
- Microscopes, balances
- Television/monitors, audiovisual equipment, cameras
- Computers, projectors
- Works of art
- Other items determined by a program to be theft sensitive or have a high loss potential.
- Chancellors are responsible for direct control, use, care, maintenance, and safekeeping of all theft sensitive non-capital assets for their campuses. They shall maintain and control the physical location, account records, and assure the security of the property to accurately track all theft sensitive non-capital assets.
- While the specific procedures for tracking theft sensitive non-capital assets are at the discretion of the Chancellor, basic custodial responsibilities include:
- Proper identification and location of all non-capital assets purchased for, or assigned to, their respective programs;
- Appropriate tracking of transfers, disposals, lost, damaged, or stolen non-capital assets; and
- Appropriate reports and/or on-line screens related to non-capital assets to facilitate and document the tracking process.
- Per memorandum from Karen Morimoto, Director of UH Property and Fund Management dated May 15, 2009, Non-Capital Assets (Attachment A), campuses are informed regarding reports, decals, and the use of current controlled property subcodes for non-capital assets as follows:
- 7709 – Equip & Mach – Non-Capital
- 7719 – Equip, Off – Non-Capital
- 7729 – Equip, Educ – Non-Capital
- 7739 – Equip, Sci – Non-Capital
- 7749 – Disaster, Content Replace – Non-Cap
- While the design and development of the non-capital asset inventory system is left to the discretion of the campuses, an extension of the eInventory system designed specifically for this purpose is available for use by all campuses.
V. Contact Information:
Subject Matter Experts
Office of the Vice President for Community Colleges, telephone number 956-7038 or email at ovpcc@hawaii.edu