Post on 17-Jan-2016
Equipment Policies
Equipment Policy
Scott Cingle – iyc3@psu.eduProperty SupervisorProperty 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 anduseful life of two (2) or more years.
• See GURU Procedure CR2019– Guru Website• Procedure• CR2019 Accounting of Capital Equipment
Federal RegulationsOMB = Office of Management & BudgetFAR = 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 CircularsFederal 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 Computer
00123456A 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 Cluster1. Is multiple cpu’s, nodes, blades, drives that work as
one unit2. Replacement nodes are non-capital3. 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 705Guidelines 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 = U• Government Owned = G• Sponsor Owned = S• Leased or Loaned = 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 and2. 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