EQUIPMENT TRACKING AND FABRICATION NCURA Region III 2008 Spring Meeting May 13, 2008 May 13, 2008

EQUIPMENT TRACKINGEQUIPMENT TRACKINGAND AND

FABRICATIONFABRICATION

NCURA Region III 2008 Spring Meeting NCURA Region III 2008 Spring Meeting May 13, 2008 May 13, 2008

Topics of DiscussionTopics of Discussion

Equipment Tracking DefinedEquipment Tracking Defined

AU Policies And PracticesAU Policies And Practices

The Government’s PoliciesThe Government’s Policies

Fabrication DefinedFabrication Defined

Other University’s Policies and Other University’s Policies and PracticesPractices

EQUIPMENT TRACKINGEQUIPMENT TRACKING

DefinedDefined

Equipment Tracking Equipment Tracking

A process of ensuring that property acquired is, A process of ensuring that property acquired is, used, inventoried and maintained in accordance used, inventoried and maintained in accordance with contractual requirementswith contractual requirements

Data and paper management of property recordsData and paper management of property records

Tagging, coding, recording and permanent Tagging, coding, recording and permanent identification of purchaseidentification of purchase

Accounting for, coordinating, scheduling and Accounting for, coordinating, scheduling and performing an annual, centralized inventory of performing an annual, centralized inventory of university propertyuniversity property

Coordinating and scheduling dispositionCoordinating and scheduling disposition

AU’s Equipment Tracking PolicyAU’s Equipment Tracking Policy

Each department must have an Each department must have an Equipment Accountable OfficerEquipment Accountable Officer

Purchase requisitions are properly Purchase requisitions are properly coded as equipmentcoded as equipment

Item (s) are automatically fed from Item (s) are automatically fed from Purchasing System to Fixed Asset Purchasing System to Fixed Asset SystemSystem

Equipment is capitalized if it costs Equipment is capitalized if it costs $2,500 or more $2,500 or more


An article of nonexpendable, tangible An article of nonexpendable, tangible personal propertypersonal property

Has a valued life of at least one yearHas a valued life of at least one year

Equipment is given a property control Equipment is given a property control tagtag

Inventoried every two yearsInventoried every two years

All equipment purchased with contract All equipment purchased with contract or grant funds or on an associated cost or grant funds or on an associated cost share account must be approved by OSP.share account must be approved by OSP.


IIdentificationdentification

Each piece of capitalized equipment Each piece of capitalized equipment must have a university or must have a university or government identification taggovernment identification tag

Property Services provides tagsProperty Services provides tags

Some department may tag Some department may tag equipment in addition to Property equipment in addition to Property ServicesServices


IdentificationIdentification





Identification tags should not be Identification tags should not be removed, damaged or altered in any removed, damaged or altered in any way.way.

Tags should be uniformly locatedTags should be uniformly located

A Property Service representative will A Property Service representative will tag equipment when the invoice for tag equipment when the invoice for the purchase has been paidthe purchase has been paid



Information recorded in Property Information recorded in Property System after tagging includesSystem after tagging includes

Description of the EquipmentDescription of the Equipment

ManufacturerManufacturer

Model NumberModel Number

Serial NumberSerial Number



Vendor’s NameVendor’s Name

Purchase Order NumberPurchase Order Number

FOAP Number FOAP Number

Date of ReceiptDate of Receipt

Total PriceTotal Price

LocationLocation


AU’s Equipment Tracking PolicyAU’s Equipment Tracking PolicyPhysical Verification of InventoryPhysical Verification of InventoryA physical inventory of equipment is A physical inventory of equipment is performed at least once every two yearsperformed at least once every two years

Property Services supplies the Property Services supplies the Accountable Office with two copies of Accountable Office with two copies of most current equipment inventory most current equipment inventory reportreportThe department must physically locate The department must physically locate all equipment and confirm location and all equipment and confirm location and conditioncondition

AU’s Equipment Tracking PolicyAU’s Equipment Tracking PolicyPhysical Verification of InventoryPhysical Verification of Inventory

Each Accountable Office should Each Accountable Office should maintain a listing of departmental maintain a listing of departmental property.property.A completed copy of the inventory A completed copy of the inventory report must be returned to Property report must be returned to Property Services within 45 days of receiptServices within 45 days of receiptInventory reports must be dated and Inventory reports must be dated and signed by the Accountable Officer and signed by the Accountable Officer and department headdepartment head


Physical Verification of InventoryPhysical Verification of InventoryThe department The department mustmust provide provide documents supporting status documents supporting status changes to all equipmentchanges to all equipmentLate or not returned inventory Late or not returned inventory reports are subject to a penalty equal reports are subject to a penalty equal to 1% of the total inventory costs, to 1% of the total inventory costs, not to exceed $1,000, charge every not to exceed $1,000, charge every 30 days until report is returned30 days until report is returned


Physical Verification of InventoryPhysical Verification of Inventory

Excessive missing or unaccounted for Excessive missing or unaccounted for equipment will be reviewed by equipment will be reviewed by Property Services, department head Property Services, department head and Accountable Officer and findings and Accountable Officer and findings reported to the dean and/or vice reported to the dean and/or vice presidentpresident



A budget assessment equal to 30% A budget assessment equal to 30% of the book value (cost less of the book value (cost less accumulated depreciation) of missing accumulated depreciation) of missing equipment that is over two years old equipment that is over two years old and 100% of missing equipment that and 100% of missing equipment that is less than two years old will be is less than two years old will be assessed for unacceptable levels of assessed for unacceptable levels of missing equipmentmissing equipment



Written permission is required from Written permission is required from appropriate department head before appropriate department head before equipment can be removed from equipment can be removed from university premises.university premises.


Transfer and DispositionTransfer and Disposition

Equipment is sometimes transferred Equipment is sometimes transferred fromfrom

one department to anotherone department to another

Accountable Officer completes Accountable Officer completes Equipment Transfer Form-BO 80-01 Equipment Transfer Form-BO 80-01 before property is transferredbefore property is transferred

Form is sent to Property Services for Form is sent to Property Services for approvalapproval


Transfers and DispositionTransfers and Disposition

Equipment purchased by contracts Equipment purchased by contracts and/or grants, that is to be and/or grants, that is to be transferred outside of the university transferred outside of the university is dependent upon stipulations in the is dependent upon stipulations in the contract and grant and requires OSP contract and grant and requires OSP approvalapproval

AU’s Equipment Tracking PolicyAU’s Equipment Tracking PolicyTransfer and DispositionTransfer and DispositionWhen equipment is no longer useful orWhen equipment is no longer useful orneeded, departments may transfer it toneeded, departments may transfer it toProperty Services’ Excess and SurplusProperty Services’ Excess and SurplusProperty using form BO 80-01Property using form BO 80-01

Property Services will arrange for Property Services will arrange for equipment to be movedequipment to be movedWhen transfer is made the department When transfer is made the department relinquishes control of equipmentrelinquishes control of equipmentAn equipment Release Form is completedAn equipment Release Form is completed

AU’s Equipment Tracking PolicyAU’s Equipment Tracking PolicyTransfer and DispositionTransfer and DispositionAll requests to cannibalize equipment All requests to cannibalize equipment

mustmustbe approved by Property Servicesbe approved by Property Services

Equipment may be cannibalized when Equipment may be cannibalized when it is no longer operational, repairable it is no longer operational, repairable or obsoleteor obsoleteCannibalized equipment is removed Cannibalized equipment is removed from the university’s inventory record from the university’s inventory record with Form BO 80-01with Form BO 80-01


Transfer and DispositionTransfer and Disposition

In some instances property purchased In some instances property purchased underunder

a contract and/or grant may eventually a contract and/or grant may eventually revert title back to the grantor revert title back to the grantor

Property Services should be notified Property Services should be notified regarding disposition of property at regarding disposition of property at the end of the contract/grant periodthe end of the contract/grant period

AU’s Equipment Tracking PolicyAU’s Equipment Tracking PolicyFederal PropertyFederal Property

PI’s must maintain a separate and completePI’s must maintain a separate and complete

file of purchase orders and receiving reportsfile of purchase orders and receiving reports

for equipment acquired under each federalfor equipment acquired under each federal

projectproject

Equipment purchased under a federal Equipment purchased under a federal project should be tagged by Property project should be tagged by Property ServicesServices


Federal PropertyFederal Property

If title is to remain with the If title is to remain with the government, equipment is given a government, equipment is given a government identification tag with government identification tag with control numbers in the 40000 rangecontrol numbers in the 40000 range

Upon Completion of the award or if Upon Completion of the award or if property is no longer needed for property is no longer needed for project OSP requests disposition project OSP requests disposition instructionsinstructions

AU’s Equipment Tracking PolicyAU’s Equipment Tracking PolicyFederal PropertyFederal PropertyThe federal awarding agency has the The federal awarding agency has the

optionoptionof:of:

Approving use on another projectApproving use on another projectApproving transfer of title to the Approving transfer of title to the universityuniversityRequesting return of the equipmentRequesting return of the equipmentAuthorize sale of the equipment and Authorize sale of the equipment and reimbursement to the awarding agencyreimbursement to the awarding agency

AU’s Equipment Tracking PolicyAU’s Equipment Tracking PolicyFederal PropertyFederal PropertyAuburn University is subject to an auditAuburn University is subject to an auditof its equipment inventory standardsof its equipment inventory standardsadministered by The Office of Navaladministered by The Office of NavalResearch (ONR). These audits:Research (ONR). These audits:

Examine the records and procedures Examine the records and procedures maintained by the universitymaintained by the universityPhysically inspect equipmentPhysically inspect equipmentInterview university personnelInterview university personnel

AU’s Equipment Tracking PolicyAU’s Equipment Tracking PolicyReportingReportingInstitutions having contracts and/or grantsInstitutions having contracts and/or grantsthat are administered by ONR Universitythat are administered by ONR UniversityBusiness Affairs are required to submit anBusiness Affairs are required to submit anannual report of Government Titled annual report of Government Titled

PropertyPropertyto the funding agencyto the funding agency

Annual reporting should be for period Annual reporting should be for period ending September 30ending September 30

AU’s Equipment Tracking PolicyAU’s Equipment Tracking PolicyReportingReporting

DoD awards, property reports must DoD awards, property reports must be submitted no later than October be submitted no later than October 31 on DD From 1662 – “DoD Property 31 on DD From 1662 – “DoD Property In The Custody Of Contractor”In The Custody Of Contractor”NASA Property Reports must be NASA Property Reports must be submitted no later than October 15 submitted no later than October 15 on Form 1018 – “NASA Property In on Form 1018 – “NASA Property In The Custody of Contractors”The Custody of Contractors”

The Government’s PoliciesThe Government’s Policies

Government’s Equipment PolicyGovernment’s Equipment Policy

Property ManagementProperty Management

Per OMB Circular A-110, universities arePer OMB Circular A-110, universities are

required to required to

Perform a physical inventory that Perform a physical inventory that reconciles with the equipment records reconciles with the equipment records at least once every two yearsat least once every two years

Provide a control number to prevent Provide a control number to prevent theft, damage or loss of equipmenttheft, damage or loss of equipment



Per A-110, the asset system mustPer A-110, the asset system must

accurately maintain the following dataaccurately maintain the following data

DescriptionDescription

Manufacturer’s NameManufacturer’s Name

Serial NumberSerial Number

Model NumberModel Number



Source of fundingSource of funding

Acquisition dateAcquisition date

LocationLocation

Unit CostUnit Cost

Title determinationTitle determination


Special Purpose EquipmentSpecial Purpose Equipment

Per OMB Circular A-21, equipment Per OMB Circular A-21, equipment which is used which is used onlyonly for research, for research, medical, scientific or other technical medical, scientific or other technical activitiesactivities

Expenditures for special purpose Expenditures for special purpose equipment are allowable as direct equipment are allowable as direct charges with the approval of the charges with the approval of the sponsoring agencysponsoring agency

Government’s Equipment PolicyGovernment’s Equipment PolicyGeneral Purpose EquipmentGeneral Purpose EquipmentPer OMB Circular A-21, equipment, the Per OMB Circular A-21, equipment, the

useuseof which is not limited only to research, of which is not limited only to research, medical scientific or other technical medical scientific or other technical

activitiesactivitiesExamples include office equipment and Examples include office equipment and furnishings, reproduction and printing furnishings, reproduction and printing equipment, motor vehicles and equipment, motor vehicles and automatic processing equipmentautomatic processing equipment


General Purpose EquipmentGeneral Purpose Equipment

Expenditures for general purpose Expenditures for general purpose equipment are unallowable and equipment are unallowable and direct charges, except where direct charges, except where approved in advance by the approved in advance by the sponsoring agencysponsoring agency


Government PropertyGovernment Property

Government Furnished –Government Furnished –

A government owned asset furnished A government owned asset furnished to the university for utilization on a to the university for utilization on a specific program or projectspecific program or project


Government PropertyGovernment Property

Government Owned Government Owned

An asset acquired with government An asset acquired with government funds, whose title remains vested funds, whose title remains vested with the federal governmentwith the federal government

Government’s Equipment PolicyGovernment’s Equipment PolicyGovernment Funded PropertyGovernment Funded Property

An asset acquired with government An asset acquired with government funds, in accordance with the terms funds, in accordance with the terms and conditions of a government and conditions of a government grant or contractgrant or contractTitle or ownership of such property Title or ownership of such property may be vested with the university or may be vested with the university or the federal governmentthe federal government

Government’s Equipment PolicyGovernment’s Equipment PolicyGovernment Funded PropertyGovernment Funded PropertyWhen property is no longer needed for When property is no longer needed for

thethepurpose of the original project, the purpose of the original project, the

followingfollowingprocedures applyprocedures apply

Equipment with a fair market value Equipment with a fair market value less than $5000 may be retained, sold less than $5000 may be retained, sold or disposed of with no further or disposed of with no further obligation to the federal governmentobligation to the federal government

Government’s Equipment PolicyGovernment’s Equipment PolicyGovernment Funded PropertyGovernment Funded PropertyFor equipment with a current fair For equipment with a current fair

marketmarketvalue of $5000 or morevalue of $5000 or more

The university may utilize the The university may utilize the equipment in the project or program equipment in the project or program for which it was acquired as long as for which it was acquired as long as needed, whether or not the project or needed, whether or not the project or program continues to be supported by program continues to be supported by government fundsgovernment funds


Government Funded PropertyGovernment Funded Property

When the equipment is no longer When the equipment is no longer neededneeded

for the original project or program, itfor the original project or program, it

should be utilized in connection withshould be utilized in connection with

federal-sponsored activities in the federal-sponsored activities in the followingfollowing

orderorder


Government Funded PropertyGovernment Funded Property

Activities sponsored by the federal Activities sponsored by the federal awarding agency which funded the awarding agency which funded the original projectoriginal project

Activities sponsored by another Activities sponsored by another federal awarding agencyfederal awarding agency

Fabrication Fabrication

DefinedDefined

FabricationFabrication To construct by combining or assembling diverse, To construct by combining or assembling diverse,

typically standardized partstypically standardized partsHas a useful shelf life of more than one yearHas a useful shelf life of more than one yearIs made of material and components which Is made of material and components which cumulatively cost $2,500 or greatercumulatively cost $2,500 or greaterRequires creative efforts to design and Requires creative efforts to design and constructconstructMeets unique research specificationsMeets unique research specificationsIs a freestanding and complete functional entity Is a freestanding and complete functional entity Does not lose its identity when affixed to or Does not lose its identity when affixed to or installed in other propertyinstalled in other property

FabricationFabrication

Material purchases for the fabrication Material purchases for the fabrication must be maintained by project must be maintained by project personnelpersonnel

The sponsoring agency and OSP The sponsoring agency and OSP must approve any fabrication request must approve any fabrication request for sponsored researchfor sponsored research

Requisitions, purchase orders and Requisitions, purchase orders and invoices for components parts must invoices for components parts must reference the approved fabricationreference the approved fabrication


Fabricated equipment will be Fabricated equipment will be properly tagged upon completion properly tagged upon completion

The fabricated equipment is added to The fabricated equipment is added to the department’s physical inventory the department’s physical inventory listlist

Any items purchased to upgrade or Any items purchased to upgrade or replace an existing fabrication should replace an existing fabrication should reference the property tag on the reference the property tag on the existing equipmentexisting equipment

FabricationFabricationWhen the fabricated items becomes When the fabricated items becomes obsolete or is no longer used and the obsolete or is no longer used and the department wishes to breakdown or department wishes to breakdown or dispose of the item Property Services dispose of the item Property Services must be notifiedmust be notifiedWhen the sponsored program is a When the sponsored program is a contract for the construction of a contract for the construction of a piece of equipment, ownership will piece of equipment, ownership will transfer to the sponsortransfer to the sponsor

Equipment Tracking Equipment Tracking andand


Other UniversitiesOther Universities

Policies and PracticesPolicies and Practices

Equipment Tracking Equipment Tracking and and

FabricationFabricationClosingClosingValuable Web sites:Valuable Web sites:

Office of Naval Research (ONR) – Office of Naval Research (ONR) – www.onr.navy.mil/02/024/apr.aspwww.onr.navy.mil/02/024/apr.asp

DoD Manual for the Performance of Contract Property Administration DoD Manual for the Performance of Contract Property Administration www.dtic.mil/whs/directives/corres/pdf/41612m_1291/p41612m.pdfwww.dtic.mil/whs/directives/corres/pdf/41612m_1291/p41612m.pdf

Federal Property Management – Federal Property Management – www.access.gpo.gov/nara/cfr/waisidx_02/41cfv2www.access.gpo.gov/nara/cfr/waisidx_02/41cfv2

NASA – NASA – www.nasa.gov/offices/ocfo/refernces/ocfo_cntr_prop.htmlwww.nasa.gov/offices/ocfo/refernces/ocfo_cntr_prop.html

DOE – DOE – www.access.gpo.gov/nara/cfr/waisidx_04/41cfrv3_04.html#109-1www.access.gpo.gov/nara/cfr/waisidx_04/41cfrv3_04.html#109-1

Equipment Tracking Equipment Tracking and and

FabricationFabricationClosingClosingQuestions??Questions??

Valerie Morns-RigginsValerie [email protected]@auburn.edu

(334) 844-5909(334) 844-5909

Documents

EQUIPMENT TRACKING AND FABRICATION NCURA Region III 2008 Spring Meeting May 13, 2008 May 13, 2008