Controller's Unit Policy Program

* This information replaces PRO 701 Loaning OSU Property

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• PRO 701-01:  Equipment Loaned to Employees

• • OSU equipment is intended for use by the institution and is not to be used for private purposes. Loan agreement forms should be used for both capital and minor equipment.

    Deans, Department Heads and Directors must authorize all equipment loans to their employees.  Authorization must occur prior to the employee taking possession of the equipment.  The borrower is expected to maintain and secure this property when in the borrower's custody. 

    The equipment loan must be for a finite period of time not to exceed TWO years, though renewal is possible with the written consent of all parties.  The department head and the borrower will determine who will be responsible for the deductible in the event of a loss.  The borrower may be held financially responsible for any perils not covered by the University's Insurance, or for any loss or damage due to the negligence of the borrower.  The borrower may be asked to produce the equipment for inspection upon request. 

    EQUIPMENT LOANED TO FACULTY OR STAFF

    Responsible Party	Action
    Department	Complete a Property Loan Agreement: To Employees. Obtain the appropriate signatures that authorize the loan.   For capital equipment (fixed assets) submit a copy of the loan agreement to Fixed Assets Property Management.   Maintain the original on file in the department.
    Fixed Assets Property Management	Update the inventory record to show the new location of the equipment, with an entry in the text field identifying who is borrowing it, where it will be housed, and how long it will be on loan.
    Borrower	Maintain and secure the property in a manner comparable to the maintenance and security provided by OSU. Be especially mindful to secure the equipment against theft.   Notify the owning department when equipment is returned or if an extension is needed at the end of the loan period.
    Department	Notify Fixed Assets Property Management when capital equipment is returned and its new location.
    Fixed Assets Property Management	Update the inventory record to show the corrected location of the asset.

• PRO 701-02:  Equipment Loaned to Other Institutions and Agencies

• Effective: 07/01/1996
• Revised: 11/05/2019

• • OSU-owned equipment may be loaned out to another research institution, if the purpose of such a loan is for use in cooperative research, educational, or extension efforts and provided such equipment is not accountable to a current research grant or contract.  The length of such a loan shall not exceed two years and the equipment must be returned to OSU upon expiration of the loan period. Additional two-year agreements may be initiated, if the equipment needs to be on loan for more than two years.

    Equipment loans must be properly documented by completing the approved OSU Property Loan to Other Institutions and Agencies form in Ex6B and obtaining signatures approving the transaction from the Department Head or his designee with departmental budgetary authority, the authorized representative of the borrowing institution, and Procurement and Contract Services (within PCMM). Loan agreement forms should be used when either capital or minor equipment is loaned out to another research institution.

    The borrowing institution assumes all cost to ship or otherwise transport OSU’s equipment to and from OSU to its intended place of use including assuming all cost for loss or damage to OSU’s equipment that may occur while equipment is in transport. 

    The OSU Department remains responsible for the whereabouts of OSU equipment it loans to other institutions and to report any changes in custody, loss, damage, etc. to Business Affairs Property Management and the Risk Management when appropriate.

    Procedure

    Responsible Party	Action
    Department	Contact Fixed Assets Property Management within Financial Accounting & Analysis (FA&A) to determine if the capital asset is eligible to loan and for advice prior to initiating an equipment loan.   Download a Property Loan Agreement.   Complete and submit the Property Loan Agreement with the appropriate signatures to Procurement and Contract Services via BennyBuy (in the Contracts menu, choose Request, then Submit Contract Request).
    Fixed Assets Property Management	If the equipment is a capital asset, update Banner FIS records to reflect asset's new location with text information regarding the loan.   Maintain a copy of the original executed agreement processed through Procurement and Contract Services.
    Department	Ensure that equipment is returned at the end of the loan period.   Assess and record the condition of the equipment.   Notify Fixed Assets Property Management by e-mail that the asset has been returned and provide information regarding where it will be stored.
    Fixed Assets Property Management	Update asset records to reflect asset's new location with text information regarding return of the equipment.

• PRO 701-03:  Equipment Loaned to OSU

• Effective: 03/01/1979
• Revised: 12/03/2021

• • Equipment may be loaned to OSU by individuals, organizations, institutions, or research project sponsors. Equipment loaned to OSU must be for official institutional purposes and the use must be directed by OSU Officers, Managers, or Representatives.

    OSU does not accept responsibility for personally owned equipment that is lost or stolen.  However, if personally owned property is being used for University business, the property will be covered by university Insurance only if agreed to by the university in a signed agreement or contract.  Exceptions include stereo equipment, radios, pictures, paintings, fans, and general property not to be used for University purposes.

    Faculty and staff members who have personally owned equipment at University facilities are encouraged to take the following precautions to avoid the possibility of its being mistaken for OSU equipment:

  • Mark the equipment for identification of ownership.
  • Provide the department head with a list of personally owned equipment used for University purposes.

  • Should confusion arise, proof of ownership will lie with the individual, not with OSU. See the Department of Public Safety website for additional information and services.

    Units may receive equipment loans from organizations or institutions with their own standard loan agreements. All such loan agreements must be submitted to Contract Services via BennyBuy for review. Departments may only enter these agreements through review and signature of the Contract Services Office.

    Some equipment is loaned by an agency or organization for use on a sponsored research project. If the loaned equipment is from the sponsoring agency, we usually call this equipment "agency-owned." Risk Management will insure sponsor-furnished property or government-furnished property. See PRO-Ex11: Types of Federal Property for details.

    If the loaned equipment does not come with a loan agreement from the lending organization or individual, the "Property Loan Agreement - To OSU" must be used.

    Procedure

    Responsible Party

    Action

    Department

    Download the Property Loan Agreement - To OSU form (if an agreement is not provided by the lending organization).   Complete and submit the Loan Agreement with the appropriate signatures (Department & Loaner) to Procurement and Contract Services via BennyBuy (in the Contracts menu, choose Request, then Submit Contract Request).   Maintain the original copy of the executed Loan Agreement.   Ensure that equipment is returned or loan agreement is renewed.