University of Virginia 2018-19 Equipment Trust Fund Guidelines

University of Virginia
2018-19 Equipment Trust Fund Guidelines
The Higher Education Equipment Trust Fund (ETF) was established by the General Assembly to meet
a need for new or updated equipment for various educational and general programs in Virginia
institutions of higher education. The State Council of Higher Education for Virginia (SCHEV) and the
Virginia College Building Authority (VCBA) administer the ETF.
SCHEV is the primary interface with the University in the spending and reimbursement of ETF funds.
As a recipient of these funds, the University is obligated to meet certain legal requirements associated
with their use. Accordingly, the following information is provided to increase awareness of applicable
State and University requirements for ETF equipment and to assist departments in preparing
Departmental Request Lists and Purchase Requisitions to purchase ETF funded equipment.
These guidelines and the request list template can be downloaded from the Office of Financial
Planning & Analysis (formerly Budget Office) website, .
The ETF process will be managed in phases for 2018-19. The first phase of approved allocations
(regular obsolescence funding and recurring allocations) will be budgeted as of July 1, 2018. Schools
and units should develop and submit their Phase I ETF Wish-List request to the Fixed Assets
Accounting Office upon receipt of installment. Phase I spending will be authorized upon the Fixed
Asset Accounting’s review/approval and assignment of ETF priority numbers. For the second phase
approximately $5.3 million is available for distribution for 2018-19. The Provost will invite ETF
funding requests for the remaining ETF balances.
Goals of the ETF
The following are some of the goals of the ETF as outlined by the SCHEV.
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Significantly reduce the amount of obsolete technology and equipment.
Provide every student with access to an appropriate level of information and technology.
Establish a statewide network that supports and encourages sharing and cooperation.
Provide every faculty member with appropriate equipment and training to use technology in
support of teaching and learning.
Support faculty in introducing new ways of instruction and learning, providing courses
customized to student needs and implementing distance learning opportunities.
Install high quality, easy-access, network-deliverable student support services, such as
transcripts, grades, class scheduling, and account balance and payment information.
Install management information systems that are flexible and directly accessible to users to
help support administrative restructuring and cost-containment.
Support research needs at doctorial institutions.
Support library automation to swiftly store and access books, journals, and literature.

Accordingly, allocations may be used to purchase technology and equipment for the following
educational and general programs:
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Instruction (101) - includes all activities that are part of the institution’s instructional program.
Expenditures for departmental research that are not separately budgeted or organized into an
approved research center should be included in Instruction. Most expenditures for departments
and department chairpersons should be included in this program. This program will exclude


University of Virginia
2018-19 ETF Guidelines (DRAFT)
expenditures for academic deans' offices.
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Research (102) - includes research activities that are separately budgeted and organized into
approved research centers. This program does NOT include sponsored research.

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Academic Support (104) - includes activities carried out primarily to provide support services
that are an integral part of the operations of the institution’s instruction and research programs.
This includes libraries, academic computing support (primarily ITS, most departmental
technology expenditures will be included in 101) and academic deans' offices.

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Student Services (105) - includes activities whose primary purpose is to contribute to students’
emotional and physical well-being and to their intellectual, cultural and social development
outside the context of the formal instruction program.

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Institutional Support (106) - includes activities whose primary purpose is to provide operational
support for the day-to-day functioning of the institution, excluding expenditures for physical
plant operations. This is primarily expenditures related to central administrative offices.

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Sponsored Program Research (110) - includes activities for research grants and contracts and
other programs sponsored by agencies external to the State and which are totally funded by
such external sources. ETF purchases for sponsored program research must be matched 50%
by the grant. The entire purchase will be capitalized as ETF equipment and assigned an ETF
asset tag.

Equipment can be purchased for academic support (104), student services (105), and institutional
support (106), provided the purchases are in support of the University’s technological restructuring
goals. These goals include providing appropriate hardware for workstations for faculty, students and
staff; and maintaining on-going funding for computer replacement. Allocations may not be used to
purchase technology and equipment for use in public service programs and in the operation and
maintenance of plant.
UVa Policy and Procedures for ETF Equipment
For more specific information about University policy and procedures concerning ETF equipment,
departments should be familiar with the following section of the University’s Financial and
Administrative Policies and Procedures Manual.
Policy X.C.1 – Equipment Trust Fund, />Procedure 10-32 - Controlling Equipment Trust Fund (ETF) Items,
/>Excerpts from the above University policy and procedures and other sources are outlined in the
following sections of this guide.

ETF Stipulations
As in previous years, ETF monies are received by the State from the sale of bonds to the public. The
proceeds from the sale are then used for the purchase of scientific, technical and other equipment by


University of Virginia
2018-19 ETF Guidelines (DRAFT)
institutions of higher education. Although the ETF equipment is treated as UVA-owned from the its
initial purchase/delivery, SCHEV effectively holds title to the equipment and will relinquish title to
UVA only after equipment has met SCHEV’s defined inventory- hold- period (referred to as “ETF
Lease Year”).
Retention periods for equipment procured with ETF funds in 2018-19 will fall into one of two
categories based on the useful life of specific item:
(a) three years for equipment the institution designated as having a useful life of three years or less (i.e.
laptop or desktop computers, computer monitors, scanners, iPads).
(b) seven years for equipment that the institution designated as having a useful life greater than three

years.
Any questions you may have regarding the defined hold period for specific types of equipment should
be directed to Gary Young, Director of Fixed Assets Accounting Office.
There are specific SCHEV restrictions that pertain to equipment purchased under ETF that must be
met. To qualify, purchased equipment must meet ALL of the following six requirements.
0. Allocations must be used to purchase technology and equipment for the following educational
and general programs: instruction (101), research (102), academic support (104), student
services (105), institutional support (106), and sponsored program research (110). (See page 1
for definitions of each of these programs.)
0. The equipment must have a unit or system cost of $500 or more.
0. The equipment must have a minimum useful life of: 3 years as noted above under (a) and 7
years for (b).
0. The equipment must be maintained in good working condition until the defined hold period is
met, after which full title will have been received and equipment can be surplused according to
Surplus Property requirements.
0. The equipment must be used within the Commonwealth of Virginia, unless specifically
authorized for use elsewhere by the Fixed Assets Accounting Office and if going outside the
Continental US, it will also require Export Control’s approval.
6. Equipment must meet both SCHEV guidelines and GAAP (Generally Accepted Accounting
Principles) which dictate that the current ETF equipment purchases must be received, paid and
capitalized (placed-in-service as functional), and asset tagged within the current ETF 2018-19
budget year.
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Additionally, ETF equipment, for which UVA has not received full title from the State may not be
surplused, cannibalized, traded-in, or disposed of without the approval of the Fixed Assets Accounting
Office. Stolen, damaged or lost ETF equipment must be promptly reported to the Fixed Assets
Accounting Office. ETF owned equipment is subject to unannounced, on-site audits by SCHEV to
verify the equipment’s condition, location and use.

University of Virginia
2018-19 ETF Guidelines (DRAFT)
The following purchases do NOT qualify as ETF equipment.
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Library books, films, videotapes, DVD’s, and library materials.
Microfilm collection and materials.
Office equipment, blinds, carpets, file cabinets, desks, chairs and tables.
Transportation equipment (automobiles).
General telecommunications equipment.
Equipment affixed to a building or functional as part of an operating system of a building.
Climate control and security systems.
Buildings.
Software (Application).
Used equipment.

Functional Unit
To be eligible for ETF funding, individual equipment items must cost $500 or more, except when the
item is part of a functional unit. A functional unit is defined as an assemblage of ETF instruments,
modules and components that collectively perform a specific task and remain assembled as a unit. In
the case of items that comprise a functional unit, the individual components may cost less than $500,

but the aggregate cost of the functional unit must be $500 or more. Examples of functional units
include (1) a computer, keyboard, monitor, printer and operating software, (2) oscilloscope with probes
and (3) recording spectrophotometer with demountable cell assembly and windows. Items merely
aggregated together so the group costs more than $500 are not a functional unit. For example, an order
for 10 external drives costing $300 each would not constitute a functional unit. ETF stipulations
provide that ETF tagged equipment must maintain its original integrity as a functional unit.
Components of ETF functional units must not be interchanged with other units. Fabrications or
internally custom-made equipment or systems will not qualify for ETF funding.
Upgrading Equipment
Upgrades (not maintenance or general upkeep of equipment) may be permissible using ETF funds for
non-ETF equipment. The upgrade and equipment to be upgraded must meet the ETF requirements.
The circumstances of the upgrade will be subject to review by SCHEV and may require the entire
piece of equipment to be tagged as ETF equipment.
Request Lists
The equipment replacement allocation is determined by reviewing current inventory levels, excluding
items which could not be located during Fixed Assets Accounting’s most recent inventory. The
allocation methodology provides a prorated credit for obsolete inventory based on four inventory
categories:
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*1
*2
*3

100% credit for non-obsolete inventory;
100% credit for inventory that has been obsolete for less than 3 years;
50% credit for inventory that has been obsolete between 3 and 6 years;
0% credit for inventory that has been obsolete more than 6 years.

The Office of Financial Planning and Analysis will distribute a memo outlining each respective
school’s allocation with instructions for accessing the current ETF Guidelines and an ETF Wish-List

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2018-19 ETF Guidelines (DRAFT)
spreadsheet template for completion. It is important that the template be filled out completely,
including the heading (Date, School Name, SE award #) and submitted to the Fixed Assets Accounting
Office by the designated deadline. There are several columns on the spreadsheet that the school is
responsible for completing, as described below:
ETF Priority Number - Ignore. Assigned by Fixed Assets Accounting.
Program Code – Select from the accompanying list under “Program Codes”
Sub-School or Org Name- School’s org name or sub-name to be inserted for easier tracking of
ETF commitments/spending.
Discipline Code and Description - Select from the accompanying list in Exhibit A.
Description - Keep this very general (i.e. “Computer”, not “Dell Latitude Computer”), do not
include brand or manufacturer’s name, model number and specifications that may change
before the equipment is actually purchased.
Total Cost - Include the total cost for each item. Each line should have 1 item. If 5 computers
are included, copy the line 5 times. Note: if multiple items make up a system (i.e. computer &
monitor, please list the system as one line item as “Computer w monitor”)
Matching Required - If the equipment is being used for Sponsored Programs, the grant must
supply 50% or more of the total funding. If the item is for a sponsored program, include the
total cost in this area. The spreadsheet will calculate the matching amounts.
%, Matching Amount and ETF Funds Required - These are all formulas; there is no need to
input anything.
Each unit should critically assess their equipment needs to determine acceptable equipment. To allow
for flexibility in the purchasing process, each unit’s Wish-List Request may total up to 130 percent of
the unit’s ETF allocation. Units should forward the list via e-mail attachment to the Fixed Assets
Accounting Office @
The University's total (Phase I & II) ETF equipment Wish-List will be forwarded to SCHEV for final
approval. Upon approval each unit will receive its ETF Wish-List with the assigned ETF priority

numbers. Only those items on the final approved list will be eligible for reimbursement from ETF
funds. Any revisions to a previously approved list must include a letter of justification submitted by
the Dean or Organization head in writing to the Fixed Assets Accounting Office. The letter will be
reviewed for reasonableness before it is forwarded to SCHEV for approval.
If you have any questions, please do not hesitate to contact Gary Young in Fixed Assets Accounting at
4-4284 or or Rohan Patel in Office of Financial Planning & Analysis at 3-0690 or

2018-19 Tentative Schedule


University of Virginia
2018-19 ETF Guidelines (DRAFT)
1. July 1, 2018 – The first phase of approved allocations (regular obsolescence funding and
recurring allocations) will be budgeted. To allow additional flexibility, schools and units may
develop and submit Interim ETF Wish-list request (provided by Fixed Assets Accounting upon
request). The Fixed Assets Accounting Office will review and approve Interim requests on a
weekly basis, July-August. We encourage the early submittal of initial request lists to begin
the ETF spending cycle for Phase I. Purchase requisitions can be submitted by each unit
against its SE award as soon as Fixed Asset Accounting’s review and assignment of priority
numbers are provided to the school or unit.
2. September – Total Phase I & II Equipment list submitted to SCHEV for review/approval.
3. May 2019 – Bonds are sold to finance 2018-19 allocation.
4. June 2019 – Reimbursements begin.
5. August/September 2019 – Reimbursements are completed.


University of Virginia
2018-19 ETF Guidelines (DRAFT)
Exhibit A - Discipline Codes and Descriptions
Code

202
204
206
299
301
307
310
401
402
407
408
409
410
411
414
415
417
418
422
425
501
506
701
801
802
803
805
808
810
811

816
818
820
821
822
824
825
826
827
828
829
830
831
833
834
835
836
837

Description
Architecture
Landscape Architecture
Planning
Architectural History
Asian Studies
Russian Studies
European Studies
Biology
Botany
Zoology

Pathology, Human and Animal
Pharmacology
Physiology
Microbiology
Biochemistry
Biophysics
Cell Biology
Marine Science
Genetics
Neuroscience
Commerce
Business Management and Administration
Computer Science
Education General
Elementary Education
Secondary Education
Higher Education
Special Education
Education of the Mentally Retarded
Education of the Gifted
Education of the Emotionally Disturbed
Special Learning Disabilities
Education of the Multiple Handicapped
Social Foundations
Educational Psychology
Educational Statistics and Research
Educational Testing and Evaluation
Guidance and Counseling
Educational Administration
Educational Supervision

Curriculum and Instruction
Reading Education
Art Education
Mathematics Education
Science Education
Physical Education
Driver and Safety Education
Health Education

Code
920
921
996
998
999
1002
1003
1005
1007
1102
1103
1104
1105
1109
1110
1114
1115
1195
1198
1203

1204
1206
1207
1214
1220
1223
1299
1401
1501
1502
1503
1504
1505
1506
1507
1509
1510
1599
1701
1702
1703
1801
1802
1803
1902
1905
1911
1999

Description

Nuclear Engineering
Applied Mechanics
Electronic and Computer Eng
Systems Engineering
Tech, Culture & Communication
Studio Art
Art History
Music
Drama
French
German
Italian
Spanish
Latin
Greek
Scandinavian
Slavic Languages
Asian & Middle Eastern Languages
Portuguese
Nursing
Dentistry
Medicine
Medical Specialties
Public Health
Speech Pathology and Audiology
Medical Technology
Epidemiology
Law
English General
English Literature

Comparative Literature
Classics
Linguistics
Rhetoric & Communications Studies
Creative Writing
Philosophy
Religious Studies
English as a Second Language
Mathematics Education
Statistics
Applied Mathematics
Military Science
Naval Science
Aerospace Science
Physics
Chemistry
Astronomy
Environmental Sciences


University of Virginia
2018-19 ETF Guidelines (DRAFT)
896
897
898
899
901
902
905
906

908
909
910
915
919

Foreign Language Education
Social Studies Education
Instructional Technology
English Education
General Engineering
Aerospace Engineering
Biomedical Engineering
Chemical Engineering
Civil Engineering
Electrical Engineering
Mechanical Engineering
Materials Science
Engineering Physics

2001
2003
2105
2202
2204
2205
2207
2208
2210
2211

4901
4903
5297

Psychology
Clinical Psychology
FBI Academy
Anthropology
Economics
History
Government
Sociology
International Relations
Afro-American Studies
Interdisciplinary Studies
Humanities and Social Sciences
Radiation/Oncology