equipment tracking

EQUIPMENT TRACKING

AND

FABRICATION

NCURA Region III 2008 Spring Meeting

May 13, 2008

Topics of Discussion

Equipment Tracking Defined

AU Policies And Practices

The Government’s Policies

Fabrication Defined

Other University’s Policies and

Practices

EQUIPMENT TRACKING

Defined

Equipment Tracking

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

Data and paper management of property records

Tagging, coding, recording and permanent identification of purchase

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

Coordinating and scheduling disposition

AU’s Equipment Tracking Policy

Each department must have an

Equipment Accountable Officer

Purchase requisitions are properly coded as equipment

Item (s) are automatically fed from

Purchasing System to Fixed Asset

System

Equipment is capitalized if it costs

$2,500 or more


An article of nonexpendable, tangible personal property

Has a valued life of at least one year

Equipment is given a property control tag

Inventoried every two years

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


Identification

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

Property Services provides tags

Some department may tag equipment in addition to Property

Services


Identification


Identification


Identification

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

Tags should be uniformly located

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


Identification

Information recorded in Property

System after tagging includes

Description of the Equipment

Manufacturer

Model Number

Serial Number


Identification

Vendor’s Name

Purchase Order Number

FOAP Number

Date of Receipt

Total Price

Location



Physical Verification of Inventory

A physical inventory of equipment is performed at least once every two years

Property Services supplies the

Accountable Office with two copies of most current equipment inventory report

The department must physically locate all equipment and confirm location and condition



Each Accountable Office should maintain a listing of departmental property.

A completed copy of the inventory report must be returned to Property

Services within 45 days of receipt

Inventory reports must be dated and signed by the Accountable Officer and department head



The department must provide documents supporting status changes to all equipment

Late or not returned inventory reports are subject to a penalty equal to 1% of the total inventory costs, not to exceed $1,000, charge every 30 days until report is returned



Excessive missing or unaccounted for equipment will be reviewed by

Property Services, department head and Accountable Officer and findings reported to the dean and/or vice president



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



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


Transfer and Disposition

Equipment is sometimes transferred from one department to another

Accountable Officer completes

Equipment Transfer Form-BO 80-01 before property is transferred

Form is sent to Property Services for approval


Transfers and Disposition

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



When equipment is no longer useful or needed, departments may transfer it to

Property Services’ Excess and Surplus

Property using form BO 80-01

Property Services will arrange for equipment to be moved

When transfer is made the department relinquishes control of equipment

An equipment Release Form is completed



All requests to cannibalize equipment must be approved by Property Services

Equipment may be cannibalized when it is no longer operational, repairable or obsolete

Cannibalized equipment is removed from the university’s inventory record with Form BO 80-01



In some instances property purchased under a contract and/or grant may eventually revert title back to the grantor

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


Federal Property

PI’s must maintain a separate and complete file of purchase orders and receiving reports for equipment acquired under each federal project

Equipment purchased under a federal project should be tagged by Property


Federal Property

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

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


Federal Property

The federal awarding agency has the option of:

Approving use on another project

Approving transfer of title to the university

Requesting return of the equipment

Authorize sale of the equipment and reimbursement to the awarding agency


Federal Property

Auburn University is subject to an audit of its equipment inventory standards administered by The Office of Naval

Research (ONR). These audits:

Examine the records and procedures maintained by the university

Physically inspect equipment

Interview university personnel


Reporting

Institutions having contracts and/or grants that are administered by ONR

University

Business Affairs are required to submit an annual report of Government Titled

Property to the funding agency

Annual reporting should be for period


Reporting

DoD awards, property reports must be submitted no later than October

31 on DD From 1662 – “DoD

Property In The Custody Of

Contractor”

NASA Property Reports must be submitted no later than October 15 on Form 1018 – “NASA Property In

The Custody of Contractors”

The Government’s Policies

Government’s Equipment Policy

Property Management

Per OMB Circular A-110, universities are required to

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

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



Per A-110, the asset system must accurately maintain the following data

Description

Manufacturer’s Name

Serial Number

Model Number



Source of funding

Acquisition date

Location

Unit Cost

Title determination


Special Purpose Equipment

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

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


General Purpose Equipment

Per OMB Circular A-21, equipment, the use of which is not limited only to research, medical scientific or other technical activities

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


General Purpose Equipment

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


Government Property

Government Furnished –

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


Government Property

Government Owned

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


Government Funded Property

An asset acquired with government funds, in accordance with the terms and conditions of a government grant or contract

Title or ownership of such property may be vested with the university or the federal government



When property is no longer needed for the purpose of the original project, the following procedures apply

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



For equipment with a current fair market value of $5000 or more

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



When the equipment is no longer needed for the original project or program, it should be utilized in connection with federal-sponsored activities in the following order



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

Activities sponsored by another federal awarding agency

Fabrication

Defined

Fabrication

To construct by combining or assembling diverse, typically standardized parts

Has a useful shelf life of more than one year

Is made of material and components which cumulatively cost $2,500 or greater

Requires creative efforts to design and construct

Meets unique research specifications

Is a freestanding and complete functional entity

Does not lose its identity when affixed to or installed in other property

Fabrication

Material purchases for the fabrication must be maintained by project personnel

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

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

Fabrication

Fabricated equipment will be properly tagged upon completion

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

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

Fabrication

When the fabricated items becomes obsolete or is no longer used and the department wishes to breakdown or dispose of the item Property Services must be notified

When the sponsored program is a contract for the construction of a piece of equipment, ownership will transfer to the sponsor

Equipment Tracking and

Fabrication

Other Universities

Policies and Practices


Fabrication

Closing

Valuable Web sites:

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

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

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

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

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


Fabrication

Closing

Questions??

Valerie Morns-Riggins mornsvv@auburn.edu

(334) 844-5909

equipment tracking

EQUIPMENT TRACKING

AND

FABRICATION