Property Control System Manual (PCS)

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Effective: 3/1/1984


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PCS 202: Equipment Purchased With Sponsored Funds

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To ensure that equipment purchases are made in accord with federal and state law and Board of Regents’ and university policy

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Arizona Revised Statutes (A.R.S.) 42-5159(B)(14)

2 C.F.R. 200.318(d) and (f)

Property Control

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All equipment purchased with general operating or sponsored funds for which title vests with ASU or the sponsor upon acquisition

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Equipment purchases using general operating or sponsored funds must be made in accord with applicable federal and state law and Board of Regents’ and university policy.

Equipment Acquisitions and Fabrications Exempt from Sales Tax

Equipment having a life expectancy of one year or more and a unit cost of $5,000 or more that is purchased for basic and applied research in the sciences and engineering is, to the extent permitted by law, exempt from sales tax. Also exempt are designing, developing, or testing prototypes, processes, or new products. This exemption includes research and development of computer software that is embedded in or an integral part of the prototype or new product or that is required for exempt machinery or equipment to function effectively.

For purposes of this exemption, research and development do not include manufacturing quality control, routine consumer product testing, market research, sales promotion, sales service, research in social sciences or psychology, computer software research that is not included in basic and applied research in the sciences and engineering, or other nontechnical activities or technical services.

Equipment Purchased with University or Sponsored Funds

Coding Requisitions

Capital equipment requisitions must reflect proper spend categories. Capital spend categories are trackable and contain “Capital” in the name.

Determining Factors Affecting Installation or Use

The requesting department is responsible for determining all factors affecting the installation or use of equipment, including, but not limited to:

  1. utilities availability
  2. space requirements
  3. floor loading capacity


  4. building accessibility.

Screening for Availability When Using Federal Funds

For equipment being purchased with federal monies, federal regulations encourage screening for availability of existing equipment owned by ASU prior to purchase. Screening for availability of existing equipment is the responsibility of the requesting department. Department submission of a purchase order for capital equipment serves as certification that comparable equipment is not available.

If the equipment is available, but in the custody of another department, the acquiring department should attempt to purchase the equipment, share usage, or make arrangements with the custodial department to transfer the equipment at no cost (see PCS 210, “Interdepartmental Acquisition of Used Equipment,” and PCS 502, “Transferring Equipment between Departments at Zero Cost”).

Equipment Purchased with Sponsored Funds

The title to equipment purchased with sponsored funds may change depending on the terms of the contract or grant; however, a standard provision of sponsored equipment purchases requires that such equipment shall be used only for the purpose for which it was purchased according to the contract or grant.

To determine the title of equipment purchased with sponsored funds, contact Property Control.

In most cases, a project director may purchase equipment using sponsored project funds when the equipment is budgeted in the contract or grant. Contact the Grant & Contract Officer before purchasing equipment with sponsored funds to determine allowability.

Note: For sponsored equipment acquisitions not itemized in the approved budget, prior approval must be obtained through one of the following methods:
  1. ORSPA Action Form—This form is used to request internal approval from the Office for Research and Sponsored Projects Administration.
  2. Request from sponsor—Notify the Grant & Contract Officer to request prior approval from the sponsor

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For more information on purchasing state surplus property, see PCS 208, “Acquisition of Equipment from the State Surplus Program.”

For more information on decisions before purchasing capital equipment, see the Purchasing and Business Services Policies and Procedures Manual—PUR 206, “Equipment with Support Requirements.”

For the university policy on the purchase of used equipment, see the Purchasing and Business Services Policies and Procedures Manual—PUR 401–05, “Used Equipment.”

For authoritative references see the Research Policies and Procedures Manual—RSP 101, “General Research Policy.” 

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