SECTION 300: Equipment Transfer Notice (ETN)

Last Update: June 2008

INVENTORY DEPARTMENT

102 Angell Building

East Lansing, MI 48824-1234

Telephone: 517-355-0357
Fax: 517-353-2024

http://inventory.msu.edu

MSU Surplus Store: 517-355-0364

I. Equipment Transfer Notice

II. Policies Regarding the use of the ETN

• Definition of Equipment

• Policy on Equipment

• Policy on Sponsored Research Equipment

• Policy on Loaned Equipment or Materials

• Policy on Sales to Agencies, the Public or to Faculty, Staff and Students

III. How to use an ETN

• Transfers of Equipment or Supplies to another Department

• Transfers of Equipment or Supplies to the MSU Surplus Store

• Transfers of Equipment to an Off-Campus Purchaser (University Services approval required)

IV. Account Numbers and Object Codes on ETNs

I. Equipment Transfer Notice

An Equipment Transfer Notice (ETN) is required whenever inventoried equipment is salvaged, sold, or transferred; or if non-inventoried equipment or supplies are to be sold for credit by the MSU Surplus Store. For non-inventoried equipment and supplies to be sold for no credit use a Pick Up Request Form (PURF). See Inventory Section 224 and MSU Surplus Store Section 222 for more details on transfers and sale of equipment.

Departments should periodically review equipment and supplies on hand to determine which items are no longer valuable or useful to the department. These surplus items should be transferred or sold.  Departments can either transfer these surplus items to another department for credit or no credit or consign the items to the MSU Surplus Store for credit or no credit.

The ETN should be initiated by the department releasing the equipment or supplies and completed according to the guidelines established in this section. Assistance on the use of this form can be obtained from the Inventory Department or the MSU Surplus Store.

II. Policies Regarding the use of the ETN

Definition of Equipment

MSU classifies items as equipment based on the following criteria:

Non-expendable, tangible personal property with an acquisition cost of $5,000 or more per unit that has a useful life of more than one year, and that has the capacity to function as a stand-alone unit without the assistance of another unit.

Policy on Equipment

All equipment obtained by the university is subject to university control and may be disposed of only in accordance with established university policies and procedures as outlined in this manual. Equipment obtained by the university includes that which is purchased with university or grant or contract funds or received as a gift. The university also has in its possession equipment that is loaned by public or private entities.

Departments obtaining equipment are responsible for its use, maintenance, safeguarding and disposal. MSU requires all equipment disposal to be directed through MSU Surplus. Departments are also responsible for notifying the Inventory Department of any equipment status changes, such as transfers, disposals, or transfers of title of loaned equipment.

Policy on Sponsored Research Equipment

In addition to the above policies, the transfer of equipment purchased with sponsored research funds or grant funds may require specific approval of the granting agency. Contact Contract and Grant Administration at 355-5040 with any questions regarding this policy.

Policy on Loaned Equipment or Materials

Loaned equipment or materials cannot be transferred or disposed of in the same manner as university property. All loans must be purchased by MSU, accepted as gifts, or returned to the company or government agency that owns the equipment or materials. Government Furnished Equipment (GFE) which like Government-owned equipment, requires special authorization for transfers and disposals.

To comply with federal regulations, the Inventory Department has recorded all loaned equipment or material on the university equipment list. For further information on loans, call the Inventory Department or Contract and Grant Administration.

Policy on Sales to Agencies, the Public or to Faculty, Staff and Students

All items that are not released to other departments must be transferred to the MSU Surplus Store. Under no circumstances can a department conduct its own sale to staff, faculty or the public. See Section 222 for further details. Sales to MSU agency accounts are considered public sales. Equipment transactions must be handled through MSU Surplus Store. Agency accounts range from 31-3500 through 31-4999. Taxable agency accounts are 31-3500 through 31-4099. For additional information on sales tax see Section 50, Michigan Sales and Use Tax.

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III. How to use an ETN

The ETN is used to track the location of equipment.  It is important to always complete an ETN whether the equipment is moving to another university department or to the MSU Surplus Store.  Equipment may be sold or given to another university department. Procedures for transferring equipment to another department are different from the procedures for transferring items to the MSU Surplus Store.  

Transfers of Equipment or Supplies to another Department

For Credit: Contact the MSU Surplus Store if assistance is needed to determine the value of items.

A. The Releasing Department must:

1. Check box number 4 on the ETN to transfer equipment to another department for credit.
2. Under the releasing department section, specify the "Account Number" (for credit), "Department Name", "Equipment Location" and "Telephone Number".
3. Specify the equipment and/or supplies being sold to the receiving department in the "Description" column.
4. If equipment has been assigned an MSU equipment inventory number, specify the number in the "MSU Equipment Inventory Number" column.
5. List the agreed value in the "Credit Amount (If Sold)" column.
6. Sign the form and send all copies to receiving department for signatures.

B. The Receiving Department must:

1. Under the Receiving Department section, specify the "Account Number" (for debit), "Department Name", "Equipment Location" and "Telephone Number".
2. Sign the form and distribute as follows:

    

   Accounting Department (paper copy - white)

   Receiving Department (paper copy - canary)

   Inventory Department (paper copy - pink)

   Releasing Department (paper copy - goldenrod)

For No Credit:

C. The Releasing Department must:

1. Check box number 3 on the ETN to transfer equipment to another department for no credit.
2. Under the Releasing Department section, specify the "Department Name", "Equipment Location" and "Telephone Number".
3. Specify the equipment or supplies being transferred to the receiving department in the "Description" column.
4. If equipment has been assigned an MSU equipment inventory number, specify the number in the "MSU Equipment Inventory Number" column.
5. Sign the form and send all copies to receiving department for signatures.

D. The Receiving Department must:

1. Under the Receiving Department section, specify the "Department Name", "Equipment Location" and "Telephone Number".
2. Sign the form and distribute as follows:

Receiving Department (paper copy - white)

Inventory Department (paper copy - pink)

Releasing Department (paper copy - goldenrod)

Transfers of Equipment or Supplies to the MSU Surplus Store

Items sent to MSU Surplus Store for storage services are not considered transfer or consignment items. Such items will remain on the department's inventory list with a change of location noted.

For Credit: Contact the MSU Surplus Store to discuss value of item prior to completing the ETN (See Section 222).

A. The Releasing Department must:

1. Check box number 2 on the ETN to transfer equipment to the MSU Surplus Store for credit.
2. Under the Releasing Department section, specify the "Account Number" (for credit), "Department Name", "Equipment Location" and "Telephone Number".
3. Specify the equipment or supplies being sold to the MSU Surplus Store in the "Description" column.
4. If equipment has been assigned an MSU equipment inventory number, specify the number in the "MSU Equipment Inventory Number" column.
5. List the agreed value in the "Credit Amount (If Sold)" column.
6. Sign the form and send all copies to the MSU Surplus Store. This will initiate a pick-up.  No call is necessary unless specific instructions for the pick-up are needed.

B. The MSU Surplus Store will:

1. Pick up the equipment and sign as the receiving department.
2. Surplus Store will distribute as follows:

Accounting Department (paper copy - white)

Receiving Department (paper copy - canary)

Inventory Department (paper copy - pink)

Releasing Department (paper copy - goldenrod)

For No Credit:

C. The Releasing Department must:

1. Check box number 1on the ETN to transfer equipment to the MSU Surplus Store for no credit.
2. Under the Releasing Department section, specify the "Department Name", "Equipment Location" and "Telephone Number".
3. Specify the equipment or supplies being transferred to the MSU Surplus Store in the "Description" column.
4. If equipment has been assigned an MSU equipment inventory number, specify the number in the "MSU Equipment Inventory Number" column.
5. Sign the form and send all copies to the MSU Surplus Store. This will initiate a pick-up. No call is necessary unless specific instructions for the pick-up are needed.

D. The MSU Surplus Store will:

1. Pick up the equipment and sign as the receiving department.
2. Surplus Store will distribute as follows:

MSU Surplus Store retains a copy (paper copy - white)

Receiving Department (paper copy - canary)

Inventory Department (paper copy - pink)

Releasing Department (paper copy - goldenrod)

Transfers of Equipment to an Off-Campus Purchaser

Departments that plan to transfer or sell equipment to an off-campus entity must obtain approval from MSU Surplus Store. Before an item can be transferred or sold to an off-campus entity, an attempt must be made to determine if there is a department on-campus that has a need for the item. Call MSU Surplus Store for assistance with off-campus sales. MSU Surplus Store will approve the ETN and then forward it to the Inventory Department to process the equipment status change.

IV. Account Numbers and Object Codes on ETNs

Proceeds from the sale of used equipment or supplies originally acquired with university funds will be credited back to the appropriate account as specified by the releasing department. Exceptions to this are noted below under Agency Accounts and Sponsored Research Accounts.

For transfers between departments, object code 082 should be used by the receiving (buying) department. An appropriate object code should be used by the releasing department based upon the type of account used when the original equipment was purchased.

Agency Accounts (31-3500 to 31-4999)

Sales to MSU agency accounts are considered public sales. Equipment transactions must be handled through MSU Surplus Store. See Section 222 for further details. Agency accounts range from 31-3500 through 31-4999. Taxable agency accounts are 31-3500 through 31-4099. For additional information on sales tax see Section 50, Michigan Sales and Use Tax.

Sponsored Research Funds (61-0000 to 61-5999)

Use of sponsored research funds may require specific approval from the granting agency. Contact Contract and Grant Administration with any questions regarding these accounts.

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