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UAFR - Equipment Management Glossary

Equipment Management Glossary

CAPTION
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

Account Code - A code representing revenue, expenditures, asset, liability, equity, and transfers. There are specific codes for equipment purchases identifying what is being purchased as well as the per item cost of the equipment. 

Antique - A unique tangible object that is more than forty years old and possesses special historical value or has special cultural, scientific, or other interest.

B

Biennial Physical Inventory

      • Process: A mandatory process completed every two years which consists of identifying and reviewing all property records and the physical equipment assigned to a unit or located within a unit's facility space.
      • Application: The web application used to verify the accuracy of the equipment record that the equipment is physically present.

C

Capital Lease - A contract for the purchase of an asset, in exchange for regularly scheduled payments, for a specific period of time.   At the end of the contract, the asset belongs to the University.

CFOAPAL (or FOAPAL) - Chart, Fund, Organization, Account, Program, Activity, and Location are the seven components that represent the Chart of Account (COA) structure.  

Chart - A one-digit code for a campus or major accounting entity used to facilitate financial reporting.  

Commodity Code - A standard coding structure which categorizes equipment and ensures a useful life is assigned to an asset.

Condition Code - A code indicating the status (condition) of a controlled asset.

D

Depreciation - The annual accounting process that distributes the cost of a capitalized asset over its useful life.

E

Entity Code - A four-digit numeric code associated with fixed asset items which are used in revenue-generating activities.

Equipment - An item of tangible property which lasts more than one year, costs $100 or more, keeps its own identity, and is movable. For a more complete definition, see 12.1.2 Classify Equipment and Property.

      • Inventory Equipment: Equipment that is tracked in Banner for inventory purposes. NOTE: “Inventory Equipment” and “Controlled Equipment” and “Banner Equipment” are synonymous terms, but “Inventory Equipment” is the preferred term.
        • Inventory Non-Capitalized Equipment: Equipment that costs between $1,000 and $4,999.99 and which is not depreciated, but instead the full cost of the equipment is recorded during the year it is acquired. NOTE: “Inventory Non-Capitalized Equipment” and “Expensed Equipment” are synonymous terms, but “Inventory Non-Capitalized Equipment” is the preferred term.
        • Inventory Capitalized Equipment: Equipment that costs $5,000 or more which is depreciated over its useful life.
      • Non-Inventory Equipment: Equipment that costs between $100 and $999.99 which is not tracked in Banner for inventory purposes. NOTE: “Non-Inventory Equipment” and “Non-Controlled Equipment” are synonymous terms, but “Non-Inventory Equipment” is the preferred term.

Exhaustible Collection - A collection whose contents are handled, used up, and deteriorate over time.

F

Fabricated Equipment - Equipment that has been purchased in pieces and assembled on location in the department.

Fabrication - The process of constructing equipment from separately acquired parts and supplies.

FABweb - The application which interacts with Banner to allow units to maintain their property records by processing transactions for new acquisitions and non-cash additions, updates, interdepartmental transfers, and surplus/disposals of equipment.

FOAPAL (or CFOAPAL) - Chart, Fund, Organization, Account, Program, Activity, and Location are the seven components that represent the Chart of Account (COA) structure.  

Found Equipment - Equipment that is located in a unit's space which is not on the unit's inventory list and has a fair market value of $1,000 or more.

G

General Ledger - The General Ledger module is the core of the Finance System.   General Ledger supports comprehensive Fund accounting, including general encumbrance accounting.

Gift-in-kind - A non-monetary gift of tangible real and personal property that is given to the University of Illinois.

Group Asset (or Group Collection) - An assemblage of tangible personal property items that possess a similar purpose and use.

H

Hierarchy - A hierarchy in CFOAPAL code segment reflects the relationships among its levels and supports roll-up reporting.   The Fund, Organization, Account, Program, and Location codes are organized using reporting relationships between the different levels of codes.

Historic Treasure - A unique tangible object that holds value because of its association with historical events, accomplishments, persons, cultures, or eras.

I

Inexhaustible Asset - An asset that is cared for with the intent to prevent it from deteriorating over time and to preserve it forever.

Inexhaustible Collection - A collection whose contents are cared for with the intent of preserving them forever.

L

Label - An adhesive sticker that is physically attached to an asset in order to identify it.

Legacy Asset - An asset that was acquired prior to Banner implementation on July 1, 2003.

Location Code - A code to designate physical places or sites, such as building and room number.

O

Organization Code - A code used to identify a functional reporting unit (such as a school, college, or department) with discrete financial activities.

P

Parent-Child (or Parent-Component) Relationship - An asset that has a main part (parent) and subordinate parts (child/children or components) which is identified as a single asset for inventory purposes.

Property Accounting - The methods used by the University to account for the cost of fixed assets and track their location and use.

R

Reconciliation - The act of balancing the department's statements with the transactions it conducted during the month or year.

S

Supplies - Items costing less than $100, which are not labeled or tracked in Banner for inventory purposes.

T

Tag - A reference number used to identify an asset.

U

Unit Contact - This role is a high-level role in the unit and is responsible for conducting and completing the Biennial Inventory process. Only one individual is designated as the Unit Contact within a 3-digit organization. The person in this role needs to know deadlines and how to do each task throughout the Biennial Inventory process, such as loading the inventory list, assigning roles to Unit Specialists, performing physical inventory, and monitoring progress and deadlines.

Unit Representative - This role completes and submits equipment new acquisition records to Property Accounting though FABweb and is responsible for communication with Property Accounting regarding adjustments to OTags. They are responsible for submitting non-cash addition records in FABweb. They are also responsible for updating already existing PTags. They also initially create equipment transfer and disposal requests in FABweb for subsequent unit Approver approval. They have read-only access to the Biennial Inventory system.

Useful Life - The length of time that an asset is expected to be used.

W

Work of Art - A unique tangible object that holds value as an original artistic impression.




Keywords:Equipment Management Glossary   Doc ID:119320
Owner:Erik O.Group:University of Illinois Training and Development Resources
Created:2022-06-28 09:15 CDTUpdated:2022-09-27 08:53 CDT
Sites:University of Illinois Training and Development Resources
CleanURL:https://answers.uillinois.edu/training/uafr-equipment-management-glossary
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