Santa Clara University

The award may include the acquisition of specific items of equipment. Capital equipment usually is defined as any tangible item having a useful life of more than two (2) years and an acquisition cost of $500 or more per unit. Should there be any doubt as to the allowability of purchasing equipment the principal investigator should contact SPO.

After it has been determined that equipment can be purchased with sponsored project funds, the principal investigator has responsibility for

• (a) assuring first that the equipment is not available already within the campus;
• (b) determining the proper specifications and issuing the Purchase Requisition (PR); and
• (c) assuring proper receipt, inventory identification, and functioning of the equipment.

To document (a) above, the principal investigator must state in writing, either on the PR or in a memo accompanying it, that the equipment is both necessary for the project supported by the sponsored agreement and not reasonably available and accessible.

1. Ownership & Control of Equipment

All equipment acquired through sponsored projects becomes the property of the University unless restricted by the sponsor. Normally with government awards where equipment is financed through a grant, title will be vested in the grantee. If purchased through a contract, title may remain vested with the government. Under no circumstances, however, does equipment purchased through a sponsored project become the property of the individual investigator.

An adequate property inventory system is required by federal sponsors. Therefore, the principal investigator and his or her department must appropriately inventory all equipment in accordance with the Capital Equipment Management System (CEMS) for Sponsored Projects; and control the use and condition of the equipment. Toward the conclusion of the sponsored project award period, the principal investigator should contact SPO to inquire regarding disposition of the equipment. Frequently title simply will be transferred to the University, but on occasion sponsors have been known to request return of property.

Detailed procedures for fulfilling inventory and control requirements for equipment acquired for use on externally sponsored projects are outlined in the Capital Equipment Management System (CEMS) for Sponsored Projects, included in Appendix A to this Manual.