2019-20 Equipment Turst Fund Guidelines- DRAFT

University of Virginia 2019-20 Equipment Trust Fund Guidelines The Higher Education Equipment Trust Fund (ETF) was established by the General Assembly to meet a need for new or updated equipment for various educational and general programs in Virginia institutions of higher education The State Council of Higher Education for Virginia (SCHEV) and the Virginia College Building Authority (VCBA) administer the ETF SCHEV is the primary interface with the University in the spending and reimbursement of ETF funds As a recipient of these funds, the University is obligated to meet certain legal requirements associated with their use Accordingly, the following information is provided to increase awareness of applicable State and University requirements for ETF equipment and to assist departments in preparing Departmental Request Lists and Purchase Requisitions to purchase ETF funded equipment These guidelines and the request list template can be downloaded from the Office of Financial Planning & Analysis (formerly Budget Office) website, https://financialplanning.vpfinance.virginia.edu/budget-instructions-forms The ETF process will be managed in phases for 2019-20 The first phase of approved allocations (regular obsolescence funding, recurring allocations, and special one-time allocations) will be budgeted as of July 2019 For the second phase approximately $8.6 million is available for distribution for 2019-20 The Provost will invite ETF funding requests for the remaining ETF balances Schools and units should develop and submit their combined Phase I & II ETF Wish-List as one list to the Fixed Assets Accounting Office while awaiting the Provost Office’s approval of Phase II requests Goals of the ETF The following are some of the goals of the ETF as outlined by the SCHEV          Significantly reduce the amount of obsolete technology and equipment Provide every student with access to an appropriate level of information and technology Establish a statewide network that supports and encourages sharing and cooperation Provide every faculty member with appropriate equipment and training to use technology in support of teaching and learning Support faculty in introducing new ways of instruction and learning, providing courses customized to student needs and implementing distance learning opportunities Install high quality, easy-access, network-deliverable student support services, such as transcripts, grades, class scheduling, and account balance and payment information Install management information systems that are flexible and directly accessible to users to help support administrative restructuring and cost-containment Support research needs at doctorial institutions Support library automation to swiftly store and access books, journals, and literature Accordingly, allocations may be used to purchase technology and equipment for the following educational and general programs:  Instruction (101) - includes all activities that are part of the institution’s instructional program University of Virginia 2019-20 ETF Guidelines (DRAFT) Expenditures for departmental research that are not separately budgeted or organized into an approved research center should be included in Instruction Most expenditures for departments and department chairpersons should be included in this program This program will exclude expenditures for academic deans' offices  Research (102) - includes research activities that are separately budgeted and organized into approved research centers This program does NOT include sponsored research  Academic Support (104) - includes activities carried out primarily to provide support services that are an integral part of the operations of the institution’s instruction and research programs This includes libraries, academic computing support (primarily ITS, most departmental technology expenditures will be included in 101) and academic deans' offices  Student Services (105) - includes activities whose primary purpose is to contribute to students’ emotional and physical well-being and to their intellectual, cultural and social development outside the context of the formal instruction program  Institutional Support (106) - includes activities whose primary purpose is to provide operational support for the day-to-day functioning of the institution, excluding expenditures for physical plant operations This is primarily expenditures related to central administrative offices  Sponsored Program Research (110) - includes activities for research grants and contracts and other programs sponsored by agencies external to the State and which are totally funded by such external sources ETF purchases for sponsored program research must be matched 50% by the grant The entire purchase will be capitalized as ETF equipment and assigned an ETF asset tag Equipment can be purchased for academic support (104), student services (105), and institutional support (106), provided the purchases are in support of the University’s technological restructuring goals These goals include providing appropriate hardware for workstations for faculty, students and staff; and maintaining on-going funding for computer replacement Allocations may not be used to purchase technology and equipment for use in public service programs and in the operation and maintenance of plant UVa Policy and Procedures for ETF Equipment For more specific information about University policy and procedures concerning ETF equipment, departments should be familiar with the following section of the University’s Financial and Administrative Policies and Procedures Manual   Equipment Trust Fund, https://fro.vpfinance.virginia.edu/equipment-trust-fund Accounting Requirements for Equipment Assets policies : FIN-034 and FIN-052 https://uvapolicy.virginia.edu/policies/fixed-assets-accounting-group Excerpts from the above University policy and procedures and other sources are outlined in the following sections of this guide ETF Stipulations As in previous years, ETF monies are received by the State from the sale of bonds to the public The University of Virginia 2019-20 ETF Guidelines (DRAFT) proceeds from the sale are then used for the purchase of scientific, technical and other equipment by institutions of higher education Although the ETF equipment is treated as UVA-owned from the its initial purchase/delivery, SCHEV effectively holds title to the equipment and will relinquish title to UVA only after equipment has met SCHEV’s defined inventory- hold- period (referred to as “ETF Lease Year”) Retention periods for equipment procured with ETF funds in 2019-20 will fall into one of two categories based on the useful life of specific item: (a) three years for equipment the institution designated as having a useful life of three years or less (i.e laptop or desktop computers, computer monitors, scanners, iPads) (b) seven years for equipment that the institution designated as having a useful life greater than three years Any questions you may have regarding the defined hold period for specific types of equipment should be directed to Joyce Gredler, Fixed Assets Capital Equipment Accountant or Gary Young, Director of Fixed Assets Accounting Office There are specific SCHEV restrictions that pertain to equipment purchased under ETF that must be met To qualify, purchased equipment must meet ALL of the following six requirements Allocations must be used to purchase technology and equipment for the following educational and general programs: instruction (101), research (102), academic support (104), student services (105), institutional support (106), and sponsored program research (110) (See page for definitions of each of these programs.) The equipment must have a unit or system cost of $500 or more The equipment must have a minimum useful life of: years as noted above under (a) and years for (b) The equipment must be maintained in good working condition until the defined hold period is met, after which full title will have been received and equipment can be surplused according to Surplus Property requirements The equipment must be used within the Commonwealth of Virginia, unless specifically authorized for use elsewhere by the Fixed Assets Accounting Office And, if going outside the Continental US, it will also require Export Control’s approval Equipment must meet both SCHEV guidelines and GAAP (Generally Accepted Accounting Principles) which dictate that the current ETF equipment purchases must be received, paid and capitalized (placed-in-service as functional), and asset tagged within the current ETF 2019-20 budget year Additionally, ETF equipment, for which UVA has not received full title from the State may not be surplused, cannibalized, traded-in, or disposed of without the approval of the Fixed Assets Accounting Office Stolen, damaged or lost ETF equipment must be promptly reported to the Fixed Assets Accounting Office ETF owned equipment is subject to unannounced, on-site audits by SCHEV to verify the equipment’s condition, location and use University of Virginia 2019-20 ETF Guidelines (DRAFT) The following purchases NOT qualify as ETF equipment           Library books, films, videotapes, DVD’s, and library materials Microfilm collection and materials Office equipment, blinds, carpets, file cabinets, desks, chairs and tables Transportation equipment (automobiles) General telecommunications equipment Equipment affixed to a building or functional as part of an operating system of a building Climate control and security systems Buildings Software (Application) Used equipment (which includes Refurbished equipment) Functional Unit To be eligible for ETF funding, individual equipment items must cost $500 or more, except when the item is part of a functional unit A functional unit is defined as an assemblage of ETF instruments, modules and components that collectively perform a specific task and remain assembled as a unit In the case of items that comprise a functional unit, the individual components may cost less than $500, but the aggregate cost of the functional unit must be $500 or more Examples of functional units include (1) a computer, keyboard, monitor, printer and operating software, (2) oscilloscope with probes and (3) recording spectrophotometer with demountable cell assembly and windows Items merely aggregated together so the group costs more than $500 are not a functional unit For example, an order for 10 external drives costing $300 each would not constitute a functional unit ETF stipulations provide that ETF tagged equipment must maintain its original integrity as a functional unit Components of ETF functional units must not be interchanged with other units Fabrications or internally custom-made equipment or systems will not qualify for ETF funding Upgrading Equipment Upgrades (not maintenance or general upkeep of equipment) may be permissible using ETF funds for non-ETF equipment The upgrade and equipment to be upgraded must meet the ETF requirements The circumstances of the upgrade will be subject to review by SCHEV and may require the entire piece of equipment to be tagged as ETF equipment Request Lists The equipment replacement allocation is determined by reviewing current inventory levels, excluding items which could not be located during Fixed Assets Accounting’s most recent inventory The allocation methodology provides a prorated credit for obsolete inventory based on four inventory categories: *0 *1 *2 *3 100% credit for non-obsolete inventory; 100% credit for inventory that has been obsolete for less than years; 50% credit for inventory that has been obsolete between and years; 0% credit for inventory that has been obsolete more than years The Office of Financial Planning and Analysis will distribute a memo outlining each respective school’s allocation with instructions for accessing the current ETF Guidelines and an ETF Wish-List University of Virginia 2019-20 ETF Guidelines (DRAFT) spreadsheet template for completion It is important that the template be filled out completely, including the heading (Date, School Name, SE award #) and submitted to the Fixed Assets Accounting Office by the designated deadline There are several columns on the spreadsheet that the school is responsible for completing, as described below: ETF Priority Number - Ignore Assigned by Fixed Assets Accounting Program Code – Select from the accompanying list under “Program Codes” tab Discipline Code and Description - Select from the accompanying list under “Discipline Codes & Descriptions” tab Sub-School or Org Name- School’s org name or sub-name to be inserted for easier tracking of ETF commitments/spending Description - Keep this very general (i.e “Computer”, not “Dell Latitude Computer”), not include brand or manufacturer’s name, model number and specifications that may change before the equipment is actually purchased Total Cost - Include the total cost for each item Each line should have item If computers are included, copy the line times Note: if multiple items make up a system (i.e computer & monitor, please list the system as one line item as “Computer w monitor”) Matching Required - If the equipment is being used for Sponsored Programs, the grant must supply 50% or more of the total funding If the item is for a sponsored program, include the total cost in this area The spreadsheet will calculate the matching amounts %, Matching Amount and ETF Funds Required - These are all formulas; there is no need to input anything Each unit should critically assess their equipment needs to determine acceptable equipment To allow for flexibility in the purchasing process each line item on a unit’s Wish-List Request may vary up to 130 percent of the item’s amount on the unit’s Wish-List though the unit’s budget amount (as established by the Office of Financial Planning & Analysis) is the maximum allowed total spending Units should forward its total Wish-list via e-mail attachment to both Joyce Gredler (jfg5d@virginia.edu) and Gary Young (gdy4f@virginia.edu) in the Fixed Assets Accounting Office The University's total (Phase I & II) ETF equipment Wish-List will be forwarded to SCHEV for final approval Upon approval each unit will receive its ETF Wish-List with the assigned ETF priority numbers Only those items on the final approved list will be eligible for reimbursement from ETF funds Any revisions to a previously approved list must include a letter of justification submitted by the Dean or Organization head in writing to the Fixed Assets Accounting Office The letter will be reviewed for reasonableness before it is forwarded to SCHEV for approval If you have any questions, please not hesitate to contact either Joyce Gredler (924-4323 or jfg4d@virginia.edu), or Gary Young (924-4284 or gdy4f@virginia.edu) in Fixed Assets Accounting, or Rohan Patel in Office of Financial Planning & Analysis at 243-0690 or rpp4d@virginia.edu University of Virginia 2019-20 ETF Guidelines (DRAFT) 2019-20 Tentative Schedule July 2019 – The first phase of approved allocations (regular obsolescence funding, recurring allocations, special one-time allocations) will be budgeted To allow additional flexibility, schools and units may submit Interim ETF Wish-list requests to the Fixed Assets Accounting Office until the Final ETF Wish-lists have been submitted and approved The Fixed Assets Accounting Office will review and approve Interim requests on a weekly basis, July-August We encourage the early submittal of initial Interim requests to begin the ETF spending cycle against Phase I ETF funds budgeted Purchase requisitions can be submitted by each unit against its SE award as soon as Fixed Asset Accounting has issued priorityissued priority numbers for the Total ETF Wish-list or any Interim Wish-Lists that are submitted and approved September – Total Phase I & II Equipment list submitted to SCHEV for review/approval May 2020 – Bonds are sold to finance 2019-20 allocation June 2020 – Reimbursements begin August/September 2020 – Reimbursements are completed University of Virginia 2019-20 ETF Guidelines (DRAFT) Exhibit A - Discipline Codes and Descriptions Code 202 204 206 299 301 307 310 401 402 407 408 409 410 411 414 415 417 418 422 425 501 506 701 801 802 803 805 808 810 811 816 818 820 821 822 824 825 826 827 828 829 830 831 833 834 835 836 837 Description Architecture Landscape Architecture Planning Architectural History Asian Studies Russian Studies European Studies Biology Botany Zoology Pathology, Human and Animal Pharmacology Physiology Microbiology Biochemistry Biophysics Cell Biology Marine Science Genetics Neuroscience Commerce Business Management and Administration Computer Science Education General Elementary Education Secondary Education Higher Education Special Education Education of the Mentally Retarded Education of the Gifted Education of the Emotionally Disturbed Special Learning Disabilities Education of the Multiple Handicapped Social Foundations Educational Psychology Educational Statistics and Research Educational Testing and Evaluation Guidance and Counseling Educational Administration Educational Supervision Curriculum and Instruction Reading Education Art Education Mathematics Education Science Education Physical Education Driver and Safety Education Health Education Code 920 921 996 998 999 1002 1003 1005 1007 1102 1103 1104 1105 1109 1110 1114 1115 1195 1198 1203 1204 1206 1207 1214 1220 1223 1299 1401 1501 1502 1503 1504 1505 1506 1507 1509 1510 1599 1701 1702 1703 1801 1802 1803 1902 1905 1911 1999 Description Nuclear Engineering Applied Mechanics Electronic and Computer Eng Systems Engineering Tech, Culture & Communication Studio Art Art History Music Drama French German Italian Spanish Latin Greek Scandinavian Slavic Languages Asian & Middle Eastern Languages Portuguese Nursing Dentistry Medicine Medical Specialties Public Health Speech Pathology and Audiology Medical Technology Epidemiology Law English General English Literature Comparative Literature Classics Linguistics Rhetoric & Communications Studies Creative Writing Philosophy Religious Studies English as a Second Language Mathematics Education Statistics Applied Mathematics Military Science Naval Science Aerospace Science Physics Chemistry Astronomy Environmental Sciences University of Virginia 2019-20 ETF Guidelines (DRAFT) 896 897 898 899 901 902 905 906 908 909 910 915 919 Foreign Language Education Social Studies Education Instructional Technology English Education General Engineering Aerospace Engineering Biomedical Engineering Chemical Engineering Civil Engineering Electrical Engineering Mechanical Engineering Materials Science Engineering Physics 2001 2003 2105 2202 2204 2205 2207 2208 2210 2211 4901 4903 5297 Psychology Clinical Psychology FBI Academy Anthropology Economics History Government Sociology International Relations Afro-American Studies Interdisciplinary Studies Humanities and Social Sciences Radiation/Oncology ... qualify for ETF funding Upgrading Equipment Upgrades (not maintenance or general upkeep of equipment) may be permissible using ETF funds for non-ETF equipment The upgrade and equipment to be... Administrative Policies and Procedures Manual   Equipment Trust Fund, https://fro.vpfinance.virginia.edu /equipment- trust -fund Accounting Requirements for Equipment Assets policies : FIN-034 and FIN-052... collection and materials Office equipment, blinds, carpets, file cabinets, desks, chairs and tables Transportation equipment (automobiles) General telecommunications equipment Equipment affixed to a building