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Equipment Policies. Scott Cingle – Property Supervisor Property Inventory 814-863-1378 Personal 814-865-7531 Office.

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Presentation on theme: "Equipment Policies. Scott Cingle – Property Supervisor Property Inventory 814-863-1378 Personal 814-865-7531 Office."— Presentation transcript:

1 Equipment Policies

2 Scott Cingle – Property Supervisor Property Inventory 814-863-1378 Personal 814-865-7531 Office

3 Plant Assets Land Buildings Improvements Other Than Buildings (IOB)  Roads, parking, sidewalks  Usually called Infrastructure Equipment  Both Movable and Fixed  UNIV, GOVT or Sponsor

4 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

5 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 – Procedure CR2019 Accounting of Capital Equipment

6 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.

7 Federal Regulations (Cont.) -misc/omb Click on OMB Circulars awards/Sponsor-guidelines-and- terms/contract-regulations Click on Federal Acq. Regulations (FAR)

8 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: 00123456Computer 00123456ACost On Government Tags have a Red Strip Sponsor Tags have a Yellow Strip

9 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

10 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)

11 Computer OCC 480 – Computer & Accessory Equipment Non-Capital : Costs Less than $5,000 751 – Computer & Accessory Equipment Capital: Costs $5,000 or more

12 Computer consists of:  CPU  Monitor  Keyboard  Mouse  Cabling  Internal items such as memory, boards, etc.  Initial operating software

13 Items not considered a computer  Printer  External disk drive  Scanner  External storage drive  Video Camera  Optional software

14 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.

15 Capital OCC 710 – Capital Equipment Non-Computer Related Per item value: $5,000 or more

16 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

17 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.

18 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

19 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

20 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

21 OCC 715 – Operating Lease If items meet any one of the conditions for a lease purchase, but costs less than $5,000

22 Ownership Codes in IBIS University Owned = U Government Owned = G Sponsor Owned = S Leased or Loaned = L

23 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.

24 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

25 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.

26 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.

27 Government Owned Equipment (Continued) 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

28 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

29 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.

30 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.

31 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)

32 Procedures in GURU to review and have a basic knowledge of continued Also see Cost Analysis and Property Inventory web site @: andPropertyInventory/index.html Click on Property Inventory

33 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

34 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

35 Grants/Contracts Is there GFE listed in the contract Equipment Ownership FDP IV (Grants) – 120 day issue Special awards (URS) $300.00 limit

36 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

37 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.

38 This Concludes this Presentation

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