Administrative Procedure 8.523 Administrative Procedure 8.523


Receiving Property and Equipment


Administrative Procedure Chapter 8, Business and Finance
Administrative Procedure AP 8.523, Receiving Property and Equipment
Effective Date:  March 2016
Prior Dates Amended:  None.  This is a new procedure that replaces AP 8.511 and
AP 8.529.    
Responsible Office: Office of the Vice President for Budget and Finance/Chief Financial Officer
Governing Board and/or Executive Policy: EP 1.102, Authority to Manage and Control the Operations of the Campus
Review Date:  March 2019

I. Purpose

To provide uniform guidelines and procedures for receiving equipment and controlled property purchased, furnished, or loaned to the University of Hawaiʻi (University).

II. Definitions

Government Furnished Property (GFP) – Property in the possession of or directly acquired by the Federal Government and subsequently made available to the contractor by transfer or delivery to the University (contractor) for performance of a contract or grant.  Title to GFP remains vested in the government unless ownership transfer is indicated.

III. Administrative Procedure

A.  General

Receiving includes the process of verification and accepting delivery of equipment and controlled property into the University.  Once acknowledged and documented by the receiving department, it establishes the point at which responsibility, accountability, and liability for the property begins.  If required, key information is collected as part of the receiving process in order to create complete and accurate asset records in the Kuali Financial System (KFS).

B.  Purchased Equipment and Controlled Property

    1.  The requisitioner or other authorized representative within the receiving department is responsible for the receipt of equipment and controlled property.  Upon delivery, a physical inspection shall be conducted to verify at a minimum:

            a.  Item(s) received matches item(s) ordered;

            b.  Quantity received matches quantity ordered;

            c.  No visible damage to the item(s) ordered.

    2.  If there are discrepancies with the order (i.e., overage or shortage) or damage is found, the departmental requisitioner or other authorized representative is responsible for providing prompt notification to the vendor or carrier.  All appropriate actions necessary to resolve the discrepancies with the vendor or carrier shall be completed in a timely manner as it may affect asset depreciation, liability, warranties, and the ability of the University to meet sponsored project delivery schedules.

    3.  Purchasing documents for acquisitions of property shall include the asset description, manufacturer, model number, serial number and location.  The date of delivery shall be noted as well as the date of receipt of the invoice for payment and property inventory purposes.

    4.  Vendors shall be paid no later than thirty calendar days following receipt of the
invoice or satisfactory delivery of the goods or performance of the services in accordance with the University’s accounts payable processing procedures.

    5.  The Property and Fund Management Office (PFMO) will establish the
necessary asset record and issue an identification asset tag to affix onto acquired property no later than thirty-five calendar days after the payment has been made.

    6.  The University establishes and maintains equipment and controlled property records according to property management standards that are consistent with voluntary consensus standards for non-expendable personal property.

C.  Sponsor-Furnished or Loaned Equipment and Controlled Property

    1.  The receipt of equipment and controlled property not purchased by the University, such as sponsor-furnished equipment or loaned equipment, also requires prompt verification of quantity and condition before the University assumes accountability.  Sponsor-furnished equipment and controlled property includes items furnished by the State of Hawaiʻi, the Federal Government, other educational institutions, and other private organizations.

    2.  For equipment that is provided in support of a sponsored project, the principal
investigator or authorized designee is responsible for receiving the equipment and 
controlled property and promptly furnishing PFMO with the signed transfer/receipt form(s) via the departmental fiscal office.  Depending on the sponsor, documentation of the property transfer may be processed using one of the following forms:
    -  DD Form 1149, Requisition and Invoice/Shipping Document
    -  DD Form 250, Material Inspection and Receiving Report
    -  GSA SF 122, Transfer Order Excess Personal Property
    -  Transmittal Letter
    -  Memorandum of Understanding

    3.  Government furnished property that is furnished by means of the GSA
Standard Form 122, and which is to be cannibalized, shall carry the typed statement “To Be Cannibalized” on the face of the form.  The item(s) used as a result of the cannibalization shall be reported and recorded into the incorporated item.  If not to be incorporated, item(s) must be properly categorized as to type of property and entered into the inventory.

    4.  At the time of receipt of equipment furnished by the Federal Government, any
visible, audible, or other external evidence of damage shall be notated on the receiving document with the signature of the carrier’s agent.  Any damage found upon receipt will require notification from the accountable University department to the appropriate sponsor via their fiscal office and PFMO for any corrective action.  Additionally, if there is any error in quantity or if the property received is unsuitable for its intended purpose, the same notification process must be followed prior to taking any corrective action(s).

    5.  Similarly, any damage found upon receipt of loaned property will require notification from the accountable University department to the appropriate sponsor via their fiscal office and PFMO for any corrective action.

IV. Delegation of Authority

There is no administrative specific delegation of authority.

V. Contact Information

Property & Fund Management Office, 956-8735, or

VI. References

    A. Link to superseded Executive Policies in old format
    B. Link to Administrative Procedures in old format

VII. Exhibits and Appendices



    Kalbert Young    
    March 18, 2016    
    Vice President for Budget and Finance/Chief Financial Officer


receiving; sponsor-furnished equipment; loaned equipment