Equipment Policies

Equipment Policies

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– http://guru.psu.edu/

• 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.)

http://www.research.psu.edu/osp/links/award-misc/omb•Click on OMB Circularshttp://www.research.psu.edu/osp/manage-awards/Sponsor-guidelines-and-terms/contract-regulations•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.

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

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 @:

http://www.controller.psu.edu/Divisions/Cost andPropertyInventory/index.html• 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