| Step 1: Answer Initial Questions INTRO 1 2a 2b 3 4 NEXT | ||
| What to do | How to do it | |
|---|---|---|
| A. | Understanding the difference between loans and leases/rentals. |
What's the difference between loans and rentals/leases?
A loan is taking place if a vendor, outside agency, individual, or employee is giving your department a supply or equipment item to use for a specific period of time (specific start and end date) for the benefit of the university, and no money is being exchanged. A rental or lease is taking place if a vendor is giving your department a supply or equipment item for a specific period of time (specific start and end date) in exchange for a monetary fee. |
| B. | Understanding the difference between equipment and non-equipment items. |
What differentiates an equipment item from a non-equipment item?
Generally, equipment is classified as a free-standing item having an acquisition value of $5000.00 or higher, and a normal life expectancy of one year or longer. See Policy and Procedure Manual, Section 350-65, for more information. A supply item (non-equipment) is generally consumable and under the inventorial equipment threshold of $5000.00. |
