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Policies and Procedures

Policy 602 – Acquisition of Equipment

July 1, 1999
Last Updated
July 7, 2010
Responsible University Officer
Director of Logistics
Responsible Unit
Asset Management

Policy Statement

Capital equipment is acquired through any of the following methods:

  • Direct purchase through University purchase orders Lease/purchase
  • Transfer from other universities when accompanying newly employed faculty
  • Transfer from Federal agencies for research projects
  • Gifts to the University
  • Fabrication
  • Purchase from the North Carolina Federal Surplus Property Agency (these items have utilization restrictions)
  • Purchase from the North Carolina State Surplus Property Agency

Reason for Policy

This policy clarifies the channels of acquisition for equipment that is added to the University's database for financial reporting.


Capital equipment is not acquired through any of the following methods:

1. A lease that does not contain a transfer of ownership or a bargain option buy-out price

2. A lease term that is not greater than or equal to 75% of the economic life of the leased equipment

3. The present value of the minimum lease payments is not greater than or equal to 90% fair market value of the leased equipment

The University's Small Order Policy

Special Situations

University funds may not be used to upgrade equipment not owned by the University.

Acquisition of equipment that includes a trade-in requires the approval from the State Surplus Property Agency. See Procedure 604.1


  • 602.1 - Receiving Gifts of Equipment to the University
  • 602.2 - Trading in Equipment
  • 602.3 - Transferring Equipment to the University
  • 602.4 - Equipment Fabrication

Additional Information

Frequently Asked Questions

Q: We have a $10,000 limit on our PCard. Can we purchase a piece of equipment at a cost of $7,000 with the card?
A: No. Equipment with a cost of $5,000 or more cannot be purchased using the PCard. Capitalized equipment can only be purchased via a purchase requisition.

Q: A Principle Investigator transferred here and brought his lab equipment with him. How do I have these items added to the department's inventory?
A: Request the department business office to provide a listing of the items transferred with the Principal Investigator to Asset Management. Each item listed should include its acquisition date, description, make, model, serial number, and original cost. Asset Management will compute each item's depreciated value. If the item meets the University's capitalization threshold of $5,000, Asset Management will request the current location of the item and add it to the department's inventory.

Related Data

1251 - Small Order Policy


Capital Asset Acquistion Logistics – Capital Assets 919-962-6267 919-962-6271


July 7, 2010
July 16, 2009
November 3, 1999