Fabricated Equipment

What is Fabricated Equipment?

Fabricated equipment is defined as scientific or other complex equipment comprised of a number of individual components that are fabricated/built into a single functional unit.  Fabricated equipment is capitalized as a single asset for a combined total cost in excess of $5,000 and a useful life greater than one year. Typically, these components would be purchased with separate transactions and may be from multiple vendors.  All components must function as a singular unit and will be collectively disposed of at the end of the useful life of the equipment.  Individual components cannot be used independently of the remaining pieces of fabricated equipment and cannot function separately apart from the fabricated unit to which it is attached.

What is not Fabricated Equipment?

  • Standard items that are altered or customized to make them usable on a sponsored project do not qualify as fabricated equipment.
  • Connecting components together in a system (physically or virtually) does not constitute an equipment fabrication e.g. when individual computers and servers are joined to create a network.
  • Components greater than $5,000 which are not physically attached or can function independently should be considered stand-alone capital equipment.

Please note: If a computer is purchased because it is required to run complex scientific equipment and the fabricated equipment cannot function without it, the computer can be capitalized as part of the fabricated equipment. However, the computer MUST be used strictly for that fabricated equipment and cannot be used in any other capacity.

Fabricated Equipment Procedures

  1. Principal Investigator (PI), in conjunction with the departmental staff, should notify Property Accounting to establish new fabricated equipment by completing a Notice of Intent to Fabricate (this needs to be a link) when the grant has been awarded or funding determined. Completed forms should be sent to Paula.Monaco@admin.utah.edu
  2. Property Accounting will review the Intent to Fabricate, will notify the PI once approved and assign an asset number.
  3. When purchasing components use the fabricated account codes 61100-61119.  The asset number MUST be on all requisitions, noted in the comments.
  4. Create a spreadsheet to track all purchases/components and send it to Paula.Monaco@admin.utah.edu initially and monthly thereafter as components are purchased. The spreadsheet should include:
    1. Description and total cost of fabricated equipment.
    2. Detail for each component including description, purchased via PO # or pcard, as well as the amount.
  5. Property Accounting will compare the departmental spreadsheet to asset management monthly.
  6. Details of the actual fabricated equipment purchases should be submitted monthly to the Property Accountant. These spreadsheet files containing the acquisition details are due no later than the last business day of the month following the component purchase.  Property Accounting will ask for copies of receipts to verify eligibility as needed.  It is the department’s responsibility to keep copies of all receipts for the components of fabricated equipment.  These receipts may be required during an audit.
  7. When the fabricated asset is assembled and operational, the department should notify Property Accounting.  The red tag will be sent out for the asset.

Notice of Intent to Fabricate Form