Equipment Policies
Equipment Policy
Scott Cingle – iyc3@psu.edu
Property Supervisor
Property Inventory
814-863-1378 Personal
814-865-7531 Office
Plant Assets
• Land
• Buildings
• Improvements Other Than Buildings (IOB)
 Roads, parking, sidewalks
 Usually called Infrastructure
• Equipment
 Both Movable and Fixed
 UNIV, GOVT or Sponsor
Get IBIS Access to
• Property Inventory System (Equipment)
- M2PI - menu for equipment
- ITAG – function to see individual tag numbers
- M3PB – menu for equipment
- 17 Browse Screens
• Facilities System (Buildings & IOB)
- M3BL – menu for buildings and IOB
-IFBD – function to see individual building number
-IFAR – function to see individual
addition/renovation to a building number
-BFBD – browse by building code
-BFBL – browse by building number
Capital Equipment Definition?
• Single item that:
Has a value of $5,000 or more and
useful life of two (2) or more years.
• See GURU Procedure CR2019
– Guru Website
• Procedure
• CR2019 Accounting of Capital Equipment
Federal Regulations
OMB = Office of Management & Budget
FAR = Federal Acquisition Regulation
• FAR part 45.1 & 52.245-1 – sets the principles for
controlling property and conducting physical
inventories.
• New 2 CFR 215, Old A-110 – sets standards for
consistency among federal agencies in the
administration of grants, contracts and agreements
with educational institutions, hospitals and other
non-profit organizations.
Federal Regulations (Cont.)
Office of Managment and Budget Website
• Click on OMB Circulars
Federal Acquisition Regulation (FAR) Webpage
• Click on Federal Acq. Regulations (FAR)
Equipment Tag Examples
• Basic tag number is 8 numerical bytes and 1
alpha byte. The alpha byte is a virtual tag, it
is part of the main equipment item.
Example: 00123456
00123456A
Computer
Cost On
• Government Tags have a Red Strip
• Sponsor Tags have a Yellow Strip
Descriptions
• Cost On = multiple funds purchased item
or it was paid over multiple fiscal years
• Trade In = a tagged item was traded in and
there was net value left on the traded in
item.
• Upgrade = the main item was upgraded
• Accessory = item that add value, usually
purchased to aid in the usage of the item
Object Classification Codes
(OCC) you need to know
• 452 - Software (Non-Capital)
Less than $100,000
License Fees (usually multiple users)
• 716 – Software (Capital)
More than $100,000
Example – Oracle (Basic charge;
usually doesn’t include user charges)
Computer OCC
• 480 – Computer & Accessory Equipment
Non-Capital :
Costs Less than $5,000
• 751 – Computer & Accessory Equipment
Capital:
Costs $5,000 or more
Computer consists of:
 CPU
 Monitor
 Keyboard
 Mouse
 Cabling
 Internal items such as memory, boards, etc.
 Initial operating software
Items not considered a computer






Printer
External disk drive
Scanner
External storage drive
Video Camera
Optional software
Computer Cluster
1. Is multiple cpu’s, nodes, blades, drives that work as
one unit
2. Replacement nodes are non-capital
3. New cpu’s, nodes, blades, drives, etc. that are added
to an existing cluster to improve its performance
(upgrade) are capital equipment:
Property Inventory will need the tag number on
the cluster to add detail information
4. If any of the cpu’s nodes, blades, drives, etc. are
permanently removed:
Property Inventory will need to know the number
of items being removed to reduce book value.
Capital OCC
710 – Capital Equipment
• Non-Computer Related
• Per item value: $5,000 or
more
Non-Capital Equipment OCC
Both these codes are non-computer
equipment.
457 – Items greater than $5,000, but are defined as material
(Primarily ARL use)
459 – Items costing less than $5,000
Examples:
• Adding machines
• Automatic staplers
• Office Furniture
Fabrications – OCC 705
 Guidelines are available in your packet.
 You must ask permission in writing to the Supervisor of
Property Inventory to use this classification code prior to
using the code.
 Please place assigned Fab number on all documents.
 Upon completion of the item being built you must email
the Supervisor of Property Inventory to get this item
tagged and entered into the Property Inventory System.
FEDERAL-FUNDED SCREENING
Pre-acquistion form GF 2.12
< $100K – At the College or AA
> $100K – Approval from
– College or Admin. Area
– Corporate Controller’s office
OCC 711
• Non-PSU title – Penn State does not own this
equipment
• Do not confuse with Government, Sponsor or
Leased/Loaned Equipment
• Call prior to using; the Supervisor of Property
Inventory needs a detailed reason for allowing the
use of 711 in an email or memo
• We also use this for equipment items that may be:
- Sent into space and not returning
- Heading to the depths of a volcano
- Sensors at the bottom of the sea
OCC 715 – Lease Purchases
Each item must be valued at $5,000 or greater
and will be tagged and capitalized if just one
of the following criteria is met:
– Ownership is transferred to PSU at the end of
lease term
– The lease contains a buyout option
– Over the entire lease term, PSU pays 90% or
greater of the total purchase price
– If the lease term is 75% or more of the useful life
of an asset
OCC 715 – Operating Lease
• If items meet any one of the
conditions for a lease purchase, but
costs less than $5,000
Ownership Codes in IBIS
•
•
•
•
University Owned
Government Owned
Sponsor Owned
Leased or Loaned
= U
= G
= S
= L
Internal or External Note Pad Area
Please utilize the header note pad areas on
documents to tell Property Inventory:
– Tag number of item being traded-in
– Tag number of item being upgraded
– Pertinent information to help us find the
item
– Special circumstances…such as Sponsor
requires all equipment items over $2,500 to
be tagged.
Government or Sponsor
Owned Equipment
Government Acquired OR Contractor
Acquired - Purchased by Penn State
• We will tag at whatever level contract
states; usually $5,000 and above; under
$5,000 is normally University Owned
Government Furnished (GFE) – Provided by
the Government
• We tag it all
Government Owned Equipment:
Prior written approval from the Government’s
Administrative Contracting Officer and/or
Sponsor is required to:
• Transfer or Lend,
• Upgrade or Disassemble,
• Dispose or Destroy,
• Trade or Sell,
• All GFP issues must go through Property
Inventory.
Government Owned Equipment
(Continued)
As a standard practice the respective
administrative area’s:
1. Financial Officer and
2. Research Administration Office should:
First review any action involving Government
Owned Equipment.
Then contact Property Inventory for
instructions on how to proceed.
Continued Government Owned
Equipment
Contact Property Inventory immediately
if you discover that a Government
Owned equipment item is:
– Hand carried to Penn State and not tagged
with Penn State tag
– Missing
– Not being utilized
Physical Inventory
• University conducts inventories on a two
year cycle
• Inventory kick off meetings
• Bar Code Scanners
• By Building, except when conducting a
Government inventory
• Off campus forms
• Permanent transfer forms
Ask New Professors/Researchers
• Did they bring any equipment with them?
• Whose equipment is it? (OWNERSHIP)
• Property Inventory needs to know:
Is it Government Owned?
Is the proper paperwork completed and
where is the paperwork?
Its value, condition, model and serial
numbers, contract numbers, etc.
Professors/Researchers Leaving
• See BS 15 in GURU for specific details
on how to proceed.
• Risk Management
• Lion Surplus
• FIS – OPP run Furniture warehouse
• They must complete the requirements
for taking the equipment with them.
Procedures in GURU to review and
have a basic knowledge of
• CR2019 – Accounting for Capital Equipment
• CR2055 – Pre-acquisition Screening & Shared
Use of Federally Funded Capital
Equipment
• CR2068 – Property Inventory Depreciation &
Usage Fee Guidelines
• BS2011 – Salvage & Surplus Operations
Including Sales Store
• Property Section in GURU
• General Forms Usage Guide -Appendix 9 (Object
Classification Codes)
Procedures in GURU to review and
have a basic knowledge of continued
• Also see Cost Analysis and Property Inventory
web site @:
Cost Analysis
Property Inventory
• Click on Property Inventory
Disposing of Equipment
“DISP” on IBIS or Form GF6.2
• Verify Ownership – You can only dispose of equipment
that is University Owned
• Verify that the equipment is in your Administrative Area
• List the tag, model and serial number
• Send forms for stolen items
• Send forms to Property Inventory after required
signatures
• Property Inventory forwards to Lion Surplus
Property Reporting Requirements
Currently this requirement may be:
•
•
•
•
Monthly
Currently
Annually
Final
If you are made aware of a special
equipment reporting requirement, contact
Property Inventory immediately.
• This includes subcontractors under PSU
Grants/Contracts
•
•
•
•
Is there GFE listed in the contract
Equipment Ownership
FDP IV (Grants) – 120 day issue
Special awards (URS) $300.00 limit
Subcontracts
• Will there be equipment purchased
• Equipment Ownership (PSU or Sponsor?)
• Contract flow downs – New DOD
IUID reporting
• Non profits vs For profits
• Special awards – Lower thershold
limits
IUID (Item Unique IDentification)
– May be on new contracts after 01/01/2006
– Requirement by the Department of Defense
– Replacing the yearly and final Form DD 1662
reporting requirement
– Look for Contract Modifications that may add
this requirement for existing contracts
– DFAR Clause 252.211-7003 & 252.211-7007
– More information will be available at a later
date.
This Concludes This Presentation