Financial Policies and Guidelines
Capital Equipment

Many groups purchase equipment for their respective purposes. Whether you are purchasing model train equipment, a sea kayak or a lap-top computer for your student group, it is important to keep records regarding the purchase. Following MIT policies, including the use of property tags, can help your group recover some of the costs associated with lost, stolen or damaged equipment.

All equipment purchases $500-$2999, whether paid by MIT Purchase Order or by reimbursement to an individual, requires the following be submitted to SAFO. The information is required to have the equipment tagged by the MIT Property Office for student group ownership:
• Model number of equipment
• Serial number of equipment
• Campus address of where equipment will be stored
• Name and contact information for group member presently responsible for equipment

Purchases of equipment costing $3,000 or more must be purchased in accordance with MIT Property Office policies. Once the equipment arrives, the information detailed above must be submitted to the SAFO along with the packing slip verifying full delivery of the order. The equipment must then be tagged for ownership by the student group.

All equipment, regardless of cost, belongs to the student group and must remain the property of the group. Equipment purchased with group money does not belong to individual members and may not leave when they depart the group or the Institute. If officers from the student group wish to pursue it, any individual member keeping equipment purchased by the group could face disciplinary action. Group officers are responsible for contacting the MIT Property Office before getting rid of tagged equipment. Any equipment with an MIT Property tag needs to be deactivated by the Property Office before your group can give it away, resell it or dispose of it.

Equipment costing more that $1,000 will be subject to periodic physical checks by the MIT Property Office as mandated by the federal government. Groups are responsible for maintaining information about equipment and location if audited by the Property Office.

Please refer to the MIT Property Office’s website for additional information regarding the purchase and to the Office of Insurance for the Institute policy regarding the replacement of lost or stolen equipment.

Property Tags
Equipment costing more than $3,000 should receive a tag from the Properties Office. A property tag will allow the equipment to qualify for possible replacement if the equipment is stolen or destroyed. There is a $1,000 deductible per occurrence. Please contact Daniel Dozois in the Property Office (ddozois@mit.edu) at 452-2347 to arrange for a property tag.

Thefts and Property Damage
If a piece of equipment has been purchased following the appropriate MIT policies, then the group may be able to replace the equipment with a comparable item in the case of theft or damage.

All property claims should be reported to the Office of Insurance within 24 hours. The Property Office should also be notified when MIT Property is stolen or completely destroyed. In order to seek reimbursement for damaged or stolen equipment, the following information must be submitted to the Office of Insurance:

• Copy of the police report
• Copies of the original purchase orders, invoices, or requisitions for the equipment, reflecting the general specifications equipment
• Copies of the replacement purchase order(s), reflecting the specifications on the replacement equipment and the account to be credited for reimbursement
• Cover letter from the Department notifying the Office of Insurance of the details of the incident
• Copies of the original purchase orders, reflecting the damaged equipment
• Copies of the repair bills or replacement purchase orders

There is a $1,000 deductible per occurrence for all thefts or acts of vandalism, unless an MIT Campus Police-approved double-lock system is in place (e.g., security system, computer locking devices, locking within cabinet or desk drawer, etc.) to safeguard the equipment. Contact the Office of Insurance or Campus Police for approved double-lock systems.

Reimbursement for stolen equipment or equipment damaged beyond repair is based on replacement value. If the department opts to upgrade its equipment upon any such loss, reimbursement will still be based on a comparable replacement (less any applicable deductible) for the damaged or stolen equipment. If the department does not plan to replace the stolen or damaged equipment, reimbursement will be based on the actual cash value prior to the loss.