17.0 - Transfer Title from Federal or Other Owned

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Federally owned and other owned assets are created in the university's asset database for inventory tracking purposes.

When the title to equipment remains vested in the Federal Government, State of Indiana, or other external institutions the equipment is considered federal or other owned.

Federal and other owned assets are currently not depreciated and are not included on the university's financial statements. These assets may later be capitalized and subject to depreciation if title to the equipment is subsequently transferred to the university.  Federally and other owned assets are identified by the following specific set of object codes:

Office of Research Administration reviews new purchases to ensure the correct object codes are assigned.

At the termination of the award, grant, or contract, Office of Research Administration will contact the granting agency to inquire if the title will transfer to IU or if the equipment will be returned.

Equipment Returned

If title is not relinquished to the university, the granting agency or owner of the asset will forward a letter designating where the equipment is to be shipped. This information is sent to the university organization holding the equipment. The organization has the responsibility of shipping the equipment to its new destination.

Once the equipment has left the university the organization must initiate an Asset Retirement Document using the retirement reason of "External Transfer".  The Asset Retirement Document will require the name of the institution or non-profit agency the equipment will be returned to when the award, grant or contract is terminated.

For information on how to process an Asset Retirement, reference the video tutorial .

Title Transferred to Indiana University

When title is transferred to Indiana University, Office of Research Administration will notify the University Capital Asset Office that the title has been transferred.

To record the relinquishment of title in the university asset database, the federal or other owned asset will be retired. A new asset will be created to record the transfer in of the asset to the university's inventory.

Retirement :

• Upon notification of the title transfer the University Capital Asset Office will retire the asset with a retirement reason of "Title Transfer".
• The organization will ensure the government tag is removed from the equipment.

Create New Asset:

If the asset does have a remaining useful life and the book value is over the capitalization threshold, the University Capital Asset Office will create the asset as a transfer-in using book value of the asset(s). The book value will be calculated using the original acquisition date and the useful life assigned to the asset. If the book value is below the capitalization threshold, the University Capital Asset Office will require that the organization remove the yellow bar code tag.

The University Capital Asset Office will contact the organization to get the departmental account number that should be used to create the asset.  The original account number will be entered in the org type field, and the original asset number in the organization text field to create an audit history. On the Add Asset Global document, a capital object code will be used that denotes the addition is from a title transfer. On the Add Asset Global document, the acquisition type must be set to "S" Cptl transfer-in Federally/Other Owned.

Title Transfer Object Codes:

DEFINITIONS:

Capital Equipment- must have an acquisition value of at least $5,000 and a useful life expectancy of one year or more.

Equipment- The term “equipment” includes delivery equipment, office equipment, machinery, furniture and fixtures, factory equipment and similar fixed assets.

Federally owned equipment - assets that utilize a contract and grant account for the purchase, indicating the federal government or agency will retain ownership upon the completion of the grant or contract.

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