To ensure that purchases or contributions of tangible property are appropriately safeguarded and properly recorded, the following guidelines apply in addition to the contractual requirements above for purchases of $5,000 or more and the quote requirements for purchases of $25,000 or more.
Assets purchased with USM Foundation funds or contributed to the USM Foundation, must benefit the university and usually become university properties when acquired. The USM Foundation reports all purchases, and contributions, to the appropriate USM University office so the item(s) can be inventoried:
- A completed and signed Inventory Control Form must be submitted along with the DRF for all equipment/furnishing purchases over $1,000 and for all purchases of computers, regardless of the cost. No check will be issued without the Inventory Control Form.
- A completed and signed Inventory Control Form must be submitted along with other gift documentation for all equipment/furnishing contributed over $1,000 and for all contributions of computers, regardless of the value.
- The Inventory Control Form is sent with a letter of transmittal to the appropriate USM institution inventory department, noting transfer of ownership to that USM institution.
- Purchased assets are recorded as an expense and transferred to University ownership. Contributed assets that will be used and not sold are recorded using the fair market value of the asset as of the date of the donation
- A copy of the form and transmittal letter is filed chronologically at the USM Foundation Business Office.
Note: There are occasional unique circumstances when ownership of equipment / furnishings is retained by the USM Foundation. Also, equipment/furnishings obtained by the USM Foundation for the purpose of conducting Foundation business is retained and owned by the USM Foundation.
In such cases, the USM Foundation tags the equipment and provides insurance and maintenance as per USM Foundation policy. Equipment / furnishings owned by the USM Foundation are capitalized and depreciated on a straight-line basis over five years using a half-year convention.