APS 38.5 – Financial Management of Fixed Assets

(Approved by authority of the President) 

Purpose

This policy establishes the University’s standards for the acquisition, management, and control of capital assets to ensure compliance with federal and state requirements. The University maintains complete, accurate, and auditable records of all University and sponsor owned property.

This policy:

• Defines accountability systems for University and sponsor acquired property;
• Ensures proper stewardship of University resources; and
• Supports compliance with applicable property management requirements.

Scope

This policy applies to all University colleges, schools, departments, divisions, healthcare systems (including Harborview Medical Center (HMC) and other units involved in acquiring, managing, controlling, or recording capital assets.

This policy does not apply to the Metropolitan Tract or Washington Biomedical Research properties or facilities.

Definitions

Capital Asset—Equipment costing $5,000 or greater (including ancillary costs), with title or ownership belonging to the University or HMC and with a useful life of at least one year. UW Medicine applies at least a two-year useful life threshold.

Central Office—Finance, Planning and Budgeting Capital Accounting Office.

Sponsoring Agency Acquired Property—

• Equipment acquired with federal funds or furnished by a federal agency for use under a grant or contract, where title remains with the federal government; or
• Equipment purchased with private or non-federal funds under a grant or contract where the sponsor retains title.

UW Medicine (UWM) Capital Accounting Group—Responsible for managing all UW Medicine equipment.

Responsibilities

Finance, Planning & Budgeting (FPB)

• Determines policy in consultation with UW Medicine Accounting.
• Interprets and explains policy provisions to affected units.
• Enforces this policy and monitors compliance.

Capital Accounting Office (CAO)

• Manages all University assets, including those in the School of Medicine (excludes UW Medicine assets).
• Maintains the University’s centralized asset management system (Workday).
• Accounts for and reports capital projects and assets.
• Maintains records of University, federal, and agency owned equipment.
• Maintains inventories for buildings, land, and improvements other than buildings.
• Coordinates equipment tagging and prepares inventory listing.
• Conducts physical inventories of equipment in compliance with University and sponsor requirements.
• Serves as the University’s Property Administrator to meet federal and state regulations.
• Prepares property related reports required by University departments and funding agencies.

UW Medicine Accounting

• Determines policy in consultation with FPB.
• Interprets and explains policy provisions to affected units.
• Enforces this policy and monitors compliance.
• Oversees UWM Capital Accounting, which manages all UWM assets (excluding the School of Medicine).
• UW Medicine Capital Accounting.
• Maintains UWM’s asset management system (Workday).
• Accounts for and reports capital assets.
• Maintains UWM records and inventories for equipment, buildings, land, and improvements.
• Coordinates equipment tagging and prepares inventory listings.
• Conducts equipment inventories in compliance with University, federal, state, and hospital requirements.
• Represents the University as Property Administrator for UWM.
• Office of Sponsored Projects (OSP) and Grant and Contract Accounting (GCA).
• Provides sponsor award information regarding capital asset ownership to the Capital Accounting Office, which prepares required property reports to sponsors.
• Custodial Department Head or Principal Investigator.
• Ensures proper care, maintenance, record keeping, inventory, and control of equipment and other property.
• Identifies, tags, and records property in the unit’s custody, or control.
• Completes required physical inventories (biennial for University owned; annual for sponsor-owned property).
•  Ensures proper disposition of sponsor-funded property at award termination in accordance with award terms and sponsor or federal regulations.

Policy Statements

1.  Equipment Custody and Use

The University and its healthcare entities, including Harborview, own and control equipment purchased with their respective funds unless otherwise stipulated by a sponsoring agency. Custody and use of such assets rests with the responsible units.

Each unit must:

• Acquire, record, maintain, inventory, and dispose of capital assets in accordance with this policy; and
• Maintain a completed “University of Washington Property Control Self-Assessment” describing procedures to meet these requirements for sponsored property.

2.  Asset Use

• Assets purchased with University, UW Medicine, or Harborview funds are owned by the respective entity and must be used solely for approved business purposes.
• Units must safeguard assets against theft, misuse, waste, abuse, and loss and maximize asset lifecycle efficiency. When no longer needed, assets should be made available to other departments or disposed of through the UW Surplus Office.
• Custodial authority (deans, chairs, directors, or cost center managers) is responsible for physical custody and maintenance of equipment within its purview.
• Principal investigators are responsible for sponsor-owned property acquired under their federal awards.

3.  Asset Procurement and Acquisition

• Assets must be purchased through the University or Harborview financial system of record.
• All purchases must follow applicable University and UW Medicine procurement policies.

4.  Equipment Management

• The University and UW Medicine maintain systems and controls to tag and track assets.
• Physical inventories must be completed annually (for sponsor-owned property) and biennially (for University owned property), approved by the responsible vice president, dean, or senior fiscal officer, and submitted to the appropriate central office.
• Leadership must ensure adequate internal controls in support of the University’s inventory certification process.
• Off-campus use of University capital equipment is permitted only for business-related purposes that support the University’s mission.
• Units must maintain equipment in good working order, secure it from damage or loss, and immediately report any theft or loss to their central office.
• Written approval is required before disposing of capital assets. External sales, transfers, or donations must also be approved by Surplus Property.
• Disposal must comply with sponsor, state, and federal requirements and serve the University’s best interests.
• Donations of capital assets are permitted only to recognize tax-exempt organizations for charitable, scientific, or educational purposes. Donated assets must be fully depreciated and owned by the University.

5.  Equipment and Property Compliance

The University complies with federal and state property management requirements, including:

• Office of Management and Budget’s (OMB) Uniform Guidance—Title 2 of the Code of Federal Regulations (CFR) contains guidance for federal agencies on government wide policies and procedures for the award and administration of grants and agreements and federal agency regulations implementing OMB guidance.
• PART 200.310-316, “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.”
• Federal Acquisition Regulations (FAR) – Part 45—Prescribes policies and procedures for providing government property to contractors; contractors’ management and use of government property; and reporting, redistributing, and disposing of contractor inventory.
• Federal Acquisitions Regulations 52.245-1, “Government Property.”
• Individual federal agency policies and procedures regulating equipment accountability for items acquired under their auspices, including: 
  • Defense Federal Acquisition Regulation Supplement (DFARS); 
  • National Aeronautical and Space Administration Acquisition Regulation (NASA-FAR); and
  • Department of Energy (DOE)—CFR Title 41, Chapter 109, “Public Contracts and Property Management.”
• The state of Washington Office of Financial Management’s (OFM) State Administrative and Accounting Manual (SAAM)—Chapter 30, “Capital Asset Policies.”
• WAC 200-360-010, “Surplus property disposal priorities.”
• UWM Alternate Useful Lives for Capital Assets–UWM has been approved by OFM to use The American Hospital Association (AHA)—Estimated Useful Lives of Depreciable Hospital Assets. The approval is effective July 1, 2021 and does not expire.

Responsible Office and Additional Information

University Equipment Policy: Capital Accounting Office

University Equipment Policy–Healthcare System: UW Medicine Accounting, Capital Accounting Group

History

March 3, 2026.