1. Tagging moveable capital equipment.
2. Tagging of federally owned equipment.
3. Tagging of capital leased equipment.
4. Tagging of moveable non-capital equipment.
5. Replacement and removal of inventory tags.

1. Tagging moveable capital equipment.

   To comply with state and federal standards moveable capital equipment must be tagged. (Reference U.S. Office of Management and Budget: Circular A110) ¹.

   Moveable capital equipment in the custody of Indiana University must meet two specific criteria in order to qualify as a capital purchase. It must have (1) an acquisition value of at least $5,000 and (2) a useful life expectancy of one year or greater.

   Procedures for tagging moveable capital equipment:

   1. The Indiana University tag number must be attached to the asset within thirty days (30) of asset creation, and the information updated in the Capital Asset Management System. The capital asset tag is yellow.

      If the asset cannot be tagged within thirty days (30) a note should be entered in the Org Text Line, after opening the asset in the Capital Asset Management System, on the (1) Tag an Asset screen or (2) Capital Asset Maintenance screen indicating why the asset can't be tagged and the approximate tagging date.

      See Pre-Asset Tagging and Tag an Asset Training Material

   2. The tag should be placed on a flat surface near the manufacturer's logo unless it is attached to a removeable component or is inaccessible for inventory purposes. In either case, the tag should be placed in a visible, permanent location since it will be scanned.
   3. If it is not possible to tag the item due to its size, number of components, or delicate nature (i.e. microscope objectives, etc.), then a capital letter "N" should be placed in the tag number field of the Asset Tagging screen in the Capital Asset Maintenance System to indicate that the asset can not be tagged. In addition, the inventory status should be set to "C" Active and Non-accessible.

      When assets cannot be tagged because they are internal to an existing asset a note should be entered in the Org Text Line indicating the tag number or asset number the internal asset was installed into. The Org Text can be entered on the Tag an Asset screen in the Capital Asset Management System.

   4. Any asset that adds to an existing system and cannot be used independently should be merged into the primary asset.

      (See CSOP 15.0 Asset Merge)

   5. Capital assets are created based upon information from the Electronic Procurement and Invoicing Center (EPIC). In some instances, EPIC information may not provide a clear indication that there is more than one asset being purchased. This usually occurs when purchases are made in 'bundles" as is the case with mass purchases of computer equipment. Physical inspection of the asset(s) upon tagging will confirm the need to separate it into the correct number of assets. Upon notification by the department, the University Capital Asset Office will issue an asset separate to create the correct number of assets.

      (See CSOP 31.0 Mass Purchase)

      (See Capital Asset Training Material Pre-Asset Tagging Training Material and Using Moveable Equipment Object Codes on Requisitions )

   6. Reviewing a capital asset for tagging should include verifying that the asset type code matches the type of moveable equipment being tagged. The asset type code chosen will assign a useful life to the asset which will set the deprecation of the asset.
   7. Reviewing a capital asset for tagging should include verifying its description in the Capital Asset Management System to make sure the asset can be correctly identified.
   8. When moveable capital equipment is taken to Surplus Stores the yellow capital asset tag should remain on the equipment and an Asset Transfer Document initiated in the Capital Asset Management System within thirty days (30) of the asset having been sent to surplus.

      (See CSOP 3.0 Asset Transfer)

      For more information on Surplus Stores procedures see the Material Stores web-site.

2. Tagging of federally owned equipment.

   Federally owned capital assets in which title is vested in the Federal Government must be tagged with a Federal Government tag. These assets will appear on the tagging report with the following object codes: 7031, 7036 or 7046. When an asset has a government owned object code you will be contacted by the University Capital Asset Office to coordinate the application (tagging) of the government tag.

3. Tagging of capital leased equipment.

   When one FAS 13, Accounting for Leases, capitalization criterion has been met a capital leased equipment asset will be created and tagged as follows:

   1. If the unit cost is $5,000 or greater the asset will be tagged with a yellow tag.
   2. If the unit cost is below $5,000 the asset will not be tagged.

4. Tagging of moveable non-capital equipment.

   Moveable non-capital equipment in the custody of Indiana University must have an acquisition value of less than $5,000. Moveable non-capital equipment may be tagged at the discretion of the organization. However, the University Capital Asset Office does not require that moveable non-capital equipment be tagged.

   Procedures for tagging of moveable non-capital equipment:

   1. Moveable non-capital equipment may be tagged with (1) tags purchased from the University Capital Asset Office or (2) a tag purchased by the organization if the tag has been approved by the University Capital Asset Office.
   2. The tag should be placed on a flat surface near the manufacturer's logo unless it is attached to a removeable component or is inaccessible for inventory purposes. In either case, the tag should be placed in a visible permanent location since it may be scanned.
   3. If it is not possible to tag the item due to its size, number of components, or delicate nature (i.e. microscope objectives, etc.), then a capital letter "N" should be placed in the tag number field of the Asset Tagging screen in the Capital Asset Management System to indicate that the asset can not be tagged.
   4. Non-capital assets should be taken to Surplus Stores. However, non-capital assets do not require an asset transfer document to be issued. The white non-capital asset tag or the organizations tag should be removed when taken to Surplus Stores.

   (See CSOP 3.0 Asset Transfer)

   For more information on Surplus Stores procedures see the Material Stores web-site.

5. Replacement and removal of inventory tags.

   Procedures for the replacement and removal of inventory tags:

   1. When moveable capital assets are taken to Surplus Stores the yellow capital asset tag should remain on the equipment.

      Note: the white non-capital asset tag or the organization's tag should be removed when assets are taken to Surplus Stores.

   (See CSOP 3.0 Asset Transfer)

   2. Missing tags found during the inventory process or at any other time for both moveable and moveable non-capital equipment should be replaced on the equipment with a new tag. The tag number should be changed on the Location Maintenance screen within the Capital Asset Management System.

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

Non-Capital Equipment must have an acquisition value of less than $5,000.

Systems are defined as components that work together to perform one function. These components must be necessary for the system to function.