Property, Plant & Equipment Management
The Property, Plant and Equipment Management Policies provide guidelines to ensure assets under Dartmouth’s stewardship are accurately recorded and accounted for throughout their life. Dartmouth must comply with government regulations and accounting industry standards to ensure the physical assets used to conduct its mission are correctly reported. This objective is in accordance with College policies and Federal Regulations that determine what assets must be recorded in the Fixed Asset Module and inventoried on a regular basis.
These policies clarify organizational responsibilities by role, provide a definition of property by type, and specify the proper treatment for costs incurred for the procurement of equipment and other assets, including fabricated equipment, new construction, renovations, improvements, and maintenance projects.
Policies & Appendices
Appendix A: Definitions
Appendix B: Useful Life and Depreciation
Appendix C: Additional Guidance for Specific Types of Equipment
Appendix D: Procurement Decision Tree
Appendix E: Thresholds and Chart String Guidelines
Appendix G: Trade In and Credit Processing Instructions
Appendix I: Corrections to PTAEO or Chart Strings
The threshold for tracking property in Dartmouth’s Fixed Asset System is $5,000. The property must also have a useful life of more than one year and not be obtained for investment or resale. Dartmouth has defined distinct types of assets, each of which is managed differently in Dartmouth’s accounting system.
- Non-Capital property/moveable equipment $5,000 -$24,999.
- Capital property/equipment equal to or greater than $25,000.
- Construction in Progress (CIP) equal to or greater than $50,000. Land has no threshold, all is capitalized.
- Fabricated property/equipment is subject to threshold amounts as listed above. For fabricated equipment with an estimated total cost of $5,000 or greater, an Intent to Fabricate Form must be completed. For fabricated equipment with an estimated total cost of over $25,000, a CIP must also be set up.
- Leased property/equipment is subject to capitalization if the contract meets specific criteria. Contact Financial Reporting for assistance.
- The Procurement Decision Tree (Appendix D) is a visual quick reference guide that outlines the purchase requisition process and accounting treatment.
Appendix F Constructed Asset Guidance for Specific Costs
Appendix H Capital Projects Natural Class Definitions
The Constructed and Fabricated Asset policy determines the proper classification of costs for new construction, renovations, improvements, maintenance projects, and equipment. This policy assists project managers and others with the task of distinguishing between capital and non-capital costs, the accounting treatment for these costs, and the process to set up capital or fabricated projects.
- The threshold for construction projects is equal to or greater than $50,000.
- The threshold for fabricated property/equipment is equal to or greater than $25,000.
- For constructed or fabricated assets/equipment with an estimated cost of $5,000 or greater, an Intent to Fabricate Form must be completed.
- For constructed or fabricated assets/equipment with an estimated cost of $25,000 or greater, a CIP must be set up.
The purpose of the Computer Transfer Policy is to provide guidance for the sale, donation, or transfer of Dartmouth owned computers or hardware to and from Dartmouth faculty, staff, fellows, students, College visitors, and external entities.
To maintain Dartmouth software licensing agreements, all computers transferred from Dartmouth must be wiped clean of all data and reset to the original operating system and factory settings by The Computer Store Repair Shop. There is a fee for this service.
The Property Disposition policy clarifies organizational responsibilities by role, provides guidelines for the disposition of Dartmouth owned equipment/assets/property. Equipment/asset/property is defined as any item, whether it is an operable or complete unit, which was purchased by, gifted, or donated to Dartmouth. Title is vested in Dartmouth unless there are specific provisions reserving rights for another entity, which may occur when an item is purchased with federal, state, or other grant funds. When this is the case, dispositions must be in accordance with applicable Dartmouth, federal, state, and local municipal policies, and any contractual agreements.
- Procurement Services Fixed Asset/Surplus Property Administrator is responsible for the coordination of disposition of most property.
- Materials Management's primary objective is to determine the most effective material handling practices for reuse, disposal, sale, or storage of all college property (excluding Real Estate and hazardous materials).
- The Dartmouth College Equipment/Asset Transfer Request Form must be completed whenever Dartmouth College equipment or other assets will be sold or otherwise transferred out of Dartmouth.
- If disposed equipment/assets have an original purchase cost greater than $5,000 or for which money will be received, whether sold, transferred, gifted or donated, the transaction must be processed through the Office of Procurement Services.
- All movable equipment having an acquisition cost of $5,000 or more must be recorded in the Fixed Asset Module and tagged with an equipment number for tracking purposes.
- For Facilities and Administrative Cost (F&A) rate calculation purposes, equipment is tracked by building and room and is depreciated based on estimated useful life.
- Whenever a professor or principal investigator (PI) transfers equipment "to" or "from" Dartmouth (grant or non-grant) they must email the Fixed Asset Administrator. This will allow the addition or removal of the items in the Fixed Asset Module which serves as the inventory database.
- The Fixed Asset Administrator must be notified when loaned equipment is transferred "to" or "from" Dartmouth. This is for insurance and inventory purposes.
If item(s) need to be added, removed, or asset records updated please email the proper form to Materials Management with the following information:
- Building and room # item(s) is/are in
- Description of item(s)
- Asset tag # and or serial # if applicable
- Chart string to charge for removal
Once your request has been processed you will receive an email in response.