ATTACHMENT #2
SYSTEM FOR THE MANAGEMENT OF EQUIPMENT PURCHASED
WITH FEDERAL/STATE FUNDS
This packet provides general information specific instruction, and sample forms to be used by
applicants and recipients of equipment grants in which Federal or State funds are to be utilized.
Virginia Department of Rehabilitative Services
8004 Franklin Farms Drive
Post Office Box K300
Richmond, Virginia 23288-0300
Revised April, 2009
TABLE OF CONTENTS
Application for Equipment......................................................…..................3
Equipment Management Standards....................................….......................3
.
Equipment Disposition...............................................................…..............4
Landlord Waiver..............................................................….........................5
Instructions for Completing and Using the Equipment List/Inventory........6
Explanation and Instructions Regarding Equipment Inventory.......……....6
Attachment #1: Sample Title....................................….......…...................8
Attachment #2a: Blank Equipment List/Inventory...........................….....9
#2b: Sample Equipment List/Inventory………………… .10
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Virginia Department of Rehabilitative Services
SYSTEM FOR THE MANAGEMENT OF EQUIPMENT PURCHASED
WITH FEDERAL/STATE FUNDS
APPLICATION FOR EQUIPMENT
At specified times and as funds are available, the Department of Rehabilitative Services (DRS)
may provide funds to qualified Employment Services Organizations (ESO), for the purchase of various
types of equipment such as adaptive hardware, commercial evaluation systems, vehicles, industrial
machinery and tools, and office equipment. Requests for such purchases must be submitted in
accordance with the grant application guidelines, and be in support of training, employment or other
services utilized by agency clients in the rehabilitation process. Equipment is usually purchased on an
80/20 matching ratio with the Department providing the 80 percent and the ESO providing the 20
percent.
All applications for equipment must be accompanied by: (1) a grant proposal in which there is
a narrative justification for the request; (2) a budget itemizing each piece of equipment and its
estimated cost; (3) an initially completed Equipment List/Inventory Form; (4) three bids for each single
item costing $ 1,000 or more; and/or (5) detailed explanations and justification of sole source items for
which additional bids are not available. Applications will be submitted to the appropriate grants
administrator in the Department's main office in Richmond.
EQUIPMENT MANAGEMENT STANDARDS
The Federal government, through OMB Circular A-133, mandates property/equipment
management standards for equipment acquired with Federal funds or whose cost was charged to a
project supported by a Federal grant. DRS also complies with policies and procedures of the Office of
Comptroller, Commonwealth of Virginia, relating to management of equipment purchased with State
funds. All grant recipients are required to comply with these standards and must maintain equipment
records for all non-expendable property bought through grant funds. Non-expendable equipment
means tangible equipment having a useful life of more than two years and an acquisition cost of $500
or more per unit.
In accordance with appropriate Federal/State guidelines, the Department has adopted the
following minimum standards for the management of equipment purchased with agency grant funds:
1. The grantee will be accountable for all non-expendable equipment with an initial acquisition
cost of $500 or more;
2. If required by DRS, the grantee must register equipment described in the proposal
modification agreement with the City/County Clerk and the State Corporation Commission for
a period of five years (see Special Instructions for Registering Equipment on page 9);
3. When registering a vehicle purchased with grant funds, the grantee must have a lien recorded
on the title in favor of DRS; (see sample title Attachment #1)
4.The grantee is required to complete and update an Equipment List/Inventory form as
described in the special instructions on page 5 of this document. This equipment inventory
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form, which will serve as the ongoing control document throughout the required inventorying
cycle, shall be incorporated into the grant file for the project under which the equipment was
purchased;
5.The grantee shall conduct a physical inventory of all applicable DRS grant purchased
equipment valued at over $500 once every other year and/or as determined by the State's
depreciation schedule. These inventories, which may be conducted more frequently in some
situations and which may involve various State and Regional DRS staff, are required to verify
the existence, current utilization, and continued need for the equipment. The Department shall
provide a printout containing a list of all DRS grant equipment subject to inventorying
requirements and shall provide prior notification to each organization as to when the inventory
is due. Please see Explanation and Instructions Regarding Equipment Inventory on page 7 of
this document;
6. The grantee is required to establish a control system, including appropriate and adequate
insurance, to insure adequate safeguards to prevent loss, damage, or theft of equipment. Any
loss, damage or theft of non-expendable equipment shall be investigated by the grant recipient
and fully documented. A copy of any reports associated with a formal investigation shall be
provided to DRS. Appropriate annotations shall be made on the Equipment List/Inventory form.
The DRS is not responsible for replacing stolen or damaged equipment purchased through a
grant;
7.The grantee is responsible for seeing that non-expendable property such as industrial
equipment, office equipment, vehicles, and other items of a mechanical nature are properly
maintained to keep them in good operating condition;
8.The grant recipient must provide to the DRS a written explanation and request regarding the
cancellation or substitution of any initially requested and approved equipment item;
9.The grantee may not depreciate equipment that was purchased with grant funds;
10.The grantee must adhere to State and Federal regulations regarding the disposition of nonexpendable equipment purchased with grant funds. See the section on Equipment Disposition
on page 4 of this document.
EQUIPMENT DISPOSITION
The Department purchases equipment for individuals or groups of individuals in accordance
with Section 51.01-10.1 of the Code of Virginia and the Federal Rehabilitation Act. All nonexpendable equipment ($500 or more per unit cost) purchased with agency funds will be held by the
grantee subject to a lien in favor of the DRS. The equipment shall be in the possession of the grantee,
but the Department shall maintain a security interest in such equipment.
DRS maintains a security interest on all non-expendable items costing or having a value of
$500 or more at the date of acquisition and having an expected useful life of two or more years until
they have been depreciated to zero value based on the useful life of the items as established by the
Fixed Asset Accounting and Control System. Those depreciated items purchased for an ESO may be
donated to the ESO at the discretion of the Department after contact by the Department has been made
and the items are found to be used for the purposes for which they were purchased. All donations of
equipment shall be consistent with the public purpose of promoting the rehabilitation of persons with
disabilities.
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The Department may repossess equipment in the event that (1) the grantee has violated any of
the conditions or terms of the grant agreement; (2) the recipient organization ceases to exist; (3) the
project for which the equipment was solely intended has terminated; or (4) the equipment is no longer
used or needed. At anytime the grantee is no longer using the equipment as intended or is otherwise
only minimally utilizing the equipment, the Department may arrange for the equipment to be declared
surplus property to be sold at auction by the Division of Purchase and Supply. However, if another
similar organization can be found that is in need of the equipment and can use it for the purpose
intended, the Department may arrange for the transferring of the equipment to another appropriate
recipient. The DRS will negotiate with the organization needing the item to reimburse the holding
organization at the rate of 20 percent of the equipment's current market value. If the equipment was
originally purchased with 100 percent Federal or State funds, no reimbursement will be necessary.
When equipment in which DRS has a vested interest is no longer usable by the grantee or a
similar organization, the DRS may release the Department's lien on the equipment and direct the
organization to dispose of the property as mutually determined. The grantee, however, may not at
anytime dispose of non-expendable equipment purchased with grant funds without the prior written
approval of the appropriate grants manager.
LANDLORD WAIVER
In the event that equipment purchased by the DRS is placed on rented premises and requires
attachment to the building, a landlord's waiver shall be executed prior to attachment of the equipment.
This waiver shall specify that any termination of the lease, in such cases where the recipient is no
longer an approved vendor, the Department reserves the right to assume ownership of the equipment in
the event that the grantee has violated any of the conditions or terms of the grant agreement. The ESO
is responsible for removing any permanently attached equipment and is solely responsible for restoring
any area damaged, as a result of equipment detachment, to its original condition.
INSTRUCTIONS FOR COMPLETING AND USING THE EQUIPMENT/LIST INVENTORY
Phase 1:
Attachment #2a (Equipment List/Inventory form) will be used by all organizations at the initial
phase of their grant request and will be submitted along with the proposal to the appropriate DRS staff.
At the time of the initial request, only sections 1 through 5a should be completed. All equipment being
requested will be recorded on the form and numbered consecutively. Individual line numbers will be
given to each item except when the quantity is in excess of one. In such instances, the items will be
recorded only once in Section 4 with the quantity identified. Similarly, items that consist of multiple
parts but which function as a single system should be entered as a single unit. Equipment having a unit
cost of less than $100 should not be included in the Equipment List/Inventory. (Such items, however,
must be itemized in the proposal's budget and must be so indicated on the packing list and invoices
eventually submitted to DRS.) Enter estimated unit cost in 5a.
Phase 2:
Upon receipt of the equipment by the grantee, the Equipment List/Inventory form will be filled
in by the grantee to record the serial number, if applicable, quantity (Section 4), actual unit cost
(Section 5b), date received (Section 6), and Invoice Number (Section 7a). Item 7b, Voucher Number,
will be completed by DRS. The location and name of the individual responsible for the equipment
(Section 9) will be completed by the grantee. Recording in this manner will be made for each line item
of equipment approved in the grant. This updated information on the Equipment List/Inventory form
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must be sent to the DRS at the same time payment is requested to enable the Department to complete
its property records and to appropriately approve the invoice for payment. In cases in which equipment
lists are very long and detailed, the grantee should label the invoice items received with the
corresponding item number on the Equipment List/Inventory (Section 4). This procedure will assist
DRS in expediting complex equipment receipts and will ensure that organizations receive payment in a
timely fashion.
Phase 3:
After all equipment has been received and reimbursement authorized, the DRS will assign
identification numbers to each line item on the Equipment List/Inventory and will fill in its copy of the
form (Section 8) and send it with identification stickers for the grantee to place on the equipment. Only
non-expendable equipment (equipment having a useful life of more than two years and an acquisition
cost of $500) will be assigned DRS identification numbers. It is the responsibility of the grant recipient
to insure that all equipment purchased with Federal/State funds is clearly identified with a DRS
identification number for control and inventory purposes. DRS will complete Sections 10 and 11 of its
copy of the Equipment List/Inventory at the time of its onsite inspection of the equipment sometime
within the initial year of the grant award.
EXPLANATION AND INSTRUCTIONS REGARDING EQUIPMENT INVENTORY
The Department shall maintain a centralized list of all grant-purchased equipment having a unit
cost of $500 or more for each organization. This list will include all DRS grant-purchased equipment
that has been inspected/audited onsite and entered into the state's Fixed Asset Accounting and Control
System. The information on the Equipment Inventory is divided into eleven columns of data for each
equipment entry. Five of the data elements are derived from respective Equipment List/Inventory forms
and four are completed by DRS. Only columns eight (Status) and nine (Comments) are to be completed
by the grantee. When DRS requests the grantee to do a physical inventory of applicable equipment, two
copies of the Equipment Inventory will be provided to the organization. Each copy shall be completed,
signed and dated, with one copy being returned to the DRS Central Office and one being retained by
the grantee. The following outline identifies or explains the data elements, provides instructions for
completing columns 8 and 9, and describes procedures to be followed by DRS in its use of the
Equipment Inventory:
Data Element
Description/Instruction
1
ITEM
The identification of the equipment item.
2
QUANITY
Number of quantity purchased.
3
UNIT COST
The cost of a single item or a single item plus
its parts and accessories if functioning as a
single unit.
4
DATE
RECEIVED
The date the equipment was received by the
organization as reported on the Equipment List/Inventory
form.
5
INVOICE #
The number on the invoice submitted by the grantee.
6
VOUCHER NO
The DRS generated voucher number.
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7
ID-NO.
8
STATUS
The identification/control number originally assigned by
DRS to the equipment.
Described by code selected by grantee the current status
of the equipment. From the list of descriptors listed below, a
code number is to be written on the Equipment List/Inventory to
indicate the status of the equipment:
Code
Descriptor
1
Currently in full use
2
Partially in use (50 percent or less time)
3
Not in Use/Available for transfer
4
Damaged, but broken or worn out
5
Lost/stolen/Not Found
6
Other: Specify and explain under column 9
9
COMMENTS
Space is provided so that additional clarification may be made
about the status or general condition of the equipment. If
additional space is needed, a separate sheet may be attached.
10
LIFE-SPAN
The useful life of the equipment. DRS uses a schedule
of depreciation for equipment developed by the State Department
of Public Accounts and contained in its "Fixed Asset Accounting
and Control System." As a minimum, this date determines the
number of years the inventorying process must be continued for
any piece of equipment.
11
RELEASE DATE
The date the equipment is donated to the grantee. If the
equipment has depreciated to a value of zero and is otherwise
deemed eligible for donation, the DRS will officially notify the
grantee by sending an updated Equipment Inventory form
signifying the release of title.
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ATTACHMENT # 1
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VIRGINIA DEPARTMENT OF REHABILITATIVE SERVICES
ATTACHMENT #2
Equipment List/Inventory
1. Vendor
Vendor #:______________________________
2. Federal Funds
State Funds
Matching Funds
TOTAL
Contract #
3. Item
Number
4. Description/Serial Number
& Quantity
11. __________________________________
Vendor Signature
5a. Estimated Cost
5b. Actual Cost
6. Date
Received
_________
Date
7a. Invoice #
7b. Voucher #
$
$_____________
$_____________
$ _____________
8.
DRS ID #
9. Item Location
Person Responsible
12._______________________________
DRS Signature
_________
Date
This form must be filled out in accordance pages 4 and 5 of the document, System for the Management of Equipment Purchased with
Federal/State Funds.
The form may be reproduced as necessary.
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10.Current
Status
VIRGINIA DEPARTMENT OF REHABILITATIVE SERVICES
ATTACHMENT #3
Equipment List/Inventory
1. Vendor
ABS, Inc
Vendor #:_______1111111_______________
Contract #
3. Item
Number
2. Federal Funds
State Funds
Matching Funds
TOTAL
2222-09
4. Description/Serial Number
& Quantity
5a. Estimated Cost
5b. Actual Cost
6. Date
Received
$42,000
1
8.
DRS ID #
AD234543
Widget 1 Machine
8/23/2008
$38,500
12. _____________Signed_______________
Vendor Signature
7a. Invoice #
7b. Voucher #
$ 35,000
$___
______
$___3,000______
$ _38,500_______
10.Current
Status
ABS, Inc
Anytown, Va.
Active
Eq9700
F347689
__8/23/2008_
Date
9. Item Location
Person Responsible
John Doe
12.___________DRS Signed____________
DRS Signature
_9/2/2008___
Date
This form must be filled out in accordance pages 4 and 5 of the document, System for the Management of Equipment Purchased with
Federal/State Funds.
The form may be reproduced as necessary.
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