Fabrication of Property

Policy No: 
7.5
Type of Policy: 
Administrative
Last Revised: 
June 2008
Review Date: 
September 2019
Policy Owner: 
Property Control
Contact Name: 
Tom Provancher
Contact Title: 
Director, Insurance, Claims & Property Control
Contact Email: 
tom.provancher@business.gatech.edu
Reason for Policy: 

This procedure outlines the accounting process for fabricated equipment.

Policy Terms: 

Fabricated equipment
any piece of equipment with a value of $3,000 or greater, and with a useful life of at least one year, which has been assembled from parts purchased with supply or non-inventory equipment accounts (714***). All Georgia Tech equipment that is assembled from parts which were not purchased under an equipment account code must be properly recorded as inventoried equipment (account range 743*** and value of $3,000 to $4,999.99) or capitalized equipment (account range 84**** and value exceeding $5,000.00) once completed.

Procedures: 

A Fabricated Property Report must be completed when a piece of equipment is fabricated. This form , its supporting purchasing documentation, and cost transfer form should be prepared and submitted to the Property Control Department at mail code 0303 as soon as a determination is made that the item is a piece of equipment and the department property coordinator has tagged it. The Property Control Department will review and forward the approved documents to the Grants & Contracts Office. They will record accounting changes necessary to classify expense items as equipment which will feed into the Asset Management System.

Instructions for completion of the form:

  1. Enter the scientific name of the equipment, if applicable. Enter the common name of the equipment. Enter which name should be placed in the description field of the inventory records. This is the name, which will appear on equipment reports to the department.
  2. Check if the title to the equipment belongs to the state or another agency.
  3. Enter the name and telephone number of the equipment custodian for the department.
  4. Enter the various cost components of the equipment. This includes materials purchased, external labor costs, transportation and any other costs involved. Enter the total cost.
  5. Check whether the above cost are for a new item of equipment or is added value (upgrade) to an existing item of equipment.
  6. Enter Georgia Tech asset tag number of existing equipment if item is an upgrade.
  7. If federal funds were involved in the construction of the equipment, the amount MUST be identified along with the sponsoring agency.
  8. Enter the name of the building, the room number and the department, which has physical custody of the equipment.
  9. The form must be signed and dated by the PI/Custodian and the Department Head or his/her designee. Also enter the phone number of the Department Head or designee.
  10. Mail completed form to Property Control at Mail Code 0303.
  11. The property coordinator should tag the equipment and enter the required information into the Asset Management System.
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