Property Management Training

PROPERTY MANAGEMENT

TRAINING

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April 2014

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Parties Involved

Property Management www.fso.arizona.edu/capital-financeSusan Richmond [email protected] 621-9592Michael Aramian [email protected] 621-5271Matthew Hohl [email protected] 621-8611Michael (Mike) Mitchell [email protected] 621-8610Kelsey Haight [email protected] 626-5592

Sponsored Projects Services www.sps.arizona.edu/Jennifer Brown [email protected] 626-6676

Surplus Property www.pacs.arizona.edu/surplusVeronica Olivares [email protected] 621-1754Amy Rodriguez [email protected] 621-4774

Real Estate Administration www.space.arizona.edu/Jose Teran [email protected] 621-1813

Risk Management and Safety www.risk.arizona.edu/Joy Baine [email protected] 621-1790

Motor Pool www.fm.arizona.edu/fm-dept/MotorPool.htmlPaul Yartz [email protected] 621-5541

Property Management Functions

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Policies Governing Equipment at The University of Arizona

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Policies Governing Equipment at The University of Arizona

Code of Federal Regulations (CFR) / Office of Management & Budget (OMB) Title 2 CFR Part 215 (OMB Circular A-110)* Title 2 CFR Part 220 (OMB Circular A-21)* Title 48 CFR Part 45 – Federal Acquisition Regulations (FAR)

State of Arizona regulations Arizona Revised Statues (ARS)

A.R.S. § 35-131 A.R.S. § 41-701 A.R.S. § 41-722

Arizona Board of Regents (ABOR) ABOR policy 3-801 and 3-802

Property Management Manual http://policy.fso.arizona.edu/pmm

*Note: Effective December 26, 2014 Omni Circular (“Super Circular”) will be the authoritative guidance

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Moveable Equipment

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Capital Non-capitalAcquisition Cost of $5,000.00

or greaterAsset Status:

A – Active & Identifiable F – Federal-Owned Active L – Lost

All are required to be tagged

Acquisition Cost between $1,000.00 and $4,999.99Asset Status:

N - Non-Capital ActiveOnly specific categories of Non-Capital are required to be tagged

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Equipment must meet all of the following criteria to be considered moveable equipment:

Useful Life greater than one year, Free Standing, Movable or Portable, Complete in Itself, and Will not lose Identity when affixed to or installed in another

asset

Moveable Equipment

Non-Capital Equipment Tagging Required

Federal/Sponsor Titled Equipment (including less than $1,000, per terms and conditions of grant, contract, or agreement)

Vehicles (of any value) for insurance and titling purposes Computers for State reporting requirements Weapons and Firearms Federal/Sponsor Funded Equipment per terms and

conditions of grant, contract, or agreement

Optional All other equipment that meet the definition of

moveable equipment and are requested by the department

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Moveable Equipment

Moveable Equipment

Included Excluded

Operating System Software Example: Microsoft Windows

Initial installation Initial Training required to

operate the equipment Freight Shipping and Handling Taxes (Sales Tax or Use

Tax)

Application Software Example: Microsoft Office

Maintenance Contracts (Extended Warranties)

Replacement Parts Repairs and

Maintenance (Servicing)

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Costs Associated with Moveable Equipment

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5721 – NonCap Inventoried Equip Not-UA Owned

5720 – Non Capital Inventoried Equip-UA Owned

For Expenses less than $5,0005751 – Materials Fabrication – Not UA

Owned

For Expenses greater than $5,0007760 – Capital Equipment - Other Owned

Capital - Non-University OwnedFor Expenses less than $5,0005750 – Materials Fabrication – UA Owned

For Expenses greater than $5,0007610 – Agricultural Machines & Equipment7620 – Data Processing Equipment 7630 – Educational Equipment

7650 – Household & Related

7660 – Medical Equipment7670 – Office Equipment & Fixtures 7680 – Reproduction Equipment7690 – Scientific Equipment7710 – Shop/Construction/Maintenance - Equipment7720 – Gasoline Powered Transportation Equipment7721 – Alternative Fuel Transportation Equipment7730 – Other Equipment

Capital - University Owned

Object Codes for Movable Equipment

Moveable Equipment

Non-Capital - University Owned

Non-Capital – Non-University Owned

Note: All object codes in 5XXX range will incur Indirect Cost (IDC) charges

Asset Categories

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Assets by Ownership University Titled - Equipment owned by the University despite the

funding source Sponsor Titled - Equipment titled to a non-federal sponsor

Federally Titled - Equipment titled to a Federal sponsor

Assets by Construct Purchased Capital - Equipment with acquisition cost of $5,000 or

more that is ready for use and might require some assembly. Such assets are normally manufactured and assembled by an entity other than the University

Fabricated Capital - Equipment constructed by the University that at some point will exceed $5,000 in cost. Fabricated capital is manufactured by the University from purchased parts

Deliverable - Fabricated or purchased equipment that will be shipped to the sponsor at some point. Such equipment is not a University property but the University is responsible for it as long as it is in the University’s possession

Shell – Assets containing ONLY raw material that will be used in any current or future fabrication projects 16

Asset Categories

Deliverables are… Equipment that is purchased or fabricated and will be

delivered to a sponsor Capital deliverables will have a ‘D’ tag Non-capital deliverables will have an ‘N’ tag

Guideline concerning Deliverables Principal Investigators (PI)s must request a tag number

from Property Management prior to any purchases or work done to create the asset

The assigned tag number must be referenced in the body and notes section of all acquisition documents

The cost of a deliverable may consist of equipment, parts and supplies as well as work done by various workshops

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Asset Categories

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* Note: All Agency Codes for 3 & 4 accounts are determined by the Sponsored Projects Services' Property Administrator

** Note: Non-capital equipment created before the capitalization limit change in 2002 have A-tags but have an Asset Status of ‘N’

*** Note: F-Tags are for FSO tracking purposes only and are not sent out to departments

Title Asset Status Account Owner/Agency (Ownership) Code (Begins with) Code *

University N 1,2,5 11235Federally Funded / University N 3,4 5XXXX/61317

Federal/Sponsor N 3,4 5XXXXUniversity A,L,N 1,2,5 11235

Federally Funded / University A,L,N 3,4 5XXXX/61317Federal/Sponsor F 3,4 5XXXX

D-Tag Federal/Sponsor F 3,4 5XXXXF-Tag *** University A 1,2,5 11235

N-Tag

A-Tag **

Asset Categories

Asset Information by Tag, Title, Status Code, Account and Agency Code

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UAccess Financials CAM and CAB

UAccess Financials CAM and CAB

What is CAM? Capital Asset Management module University’s official inventory system used to track and

maintain records of Movable Equipment What is CAB?

Capital Asset Builder module Pending Transactions housed in CAB are fed from:

Purchasing and Accounts Payable (AP) General Ledger (GL) documents

This module is used to process transactions for Capital Movable purchases into CAM to: Create new assets Modify the cost of existing assets

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Asset Acquisition

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Asset Acquisition

Purchasing and Accounts Payable

Requisition (REQS) Purchase New

Equipment1. Individual2. One System3. Multiple Systems

Add to Existing1. Modification2. Fabrication

General Ledger Most Commonly Used

Internal Billing (IB) P-card (PCDO) Service Billing (SB) Disbursement Voucher

(DV)

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Adding Capital Equipment to UAccess Financials CAM

The Capital Asset Tab (REQS) functions differently from the Capital Edit Tab (GL)

Requisition

Purchase Order

Payment Request(s)

Asset Creation in CAM

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CAB

Asset Acquisition

Purchasing and Accounts Payable

Determine if an

equipment is being

purchased

• Fill in the accounting information as required

Determine the Capital

Asset System Type

• Individual Assets• One System• Multiple Systems

Determine the Capital

Asset System State

• Modify Existing• New System

Selection Expands the Tab

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Asset Acquisition

Requisitions: Capital Asset Tab – System Selection

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Asset Acquisition

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Asset Acquisition

Requisitions: Capital Asset Tab – System Selection

Enter notes related to the asset(s)

Quantity of Assets

Describe the System

Manufacturer and Model # are Required

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Asset Acquisition

Requisitions: Capital Asset Tab – System Detail

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Asset Acquisition

Requisitions: Capital Asset Tab – Location

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Asset Acquisition

Requisitions: Capital Asset Tab – Capital Asset Items

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Add the Campus Code, Building and Room Number; Model Number; Serial Number; and Responsible Person and specify what lines go together to make

up each system

Line 1 is one system. Lines 2 & 3 are a separate system.

Asset Acquisition

Requisitions: Capital Asset Tab – Multiple Systems

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Asset Acquisition

Requisitions: Capital Asset Tab – Fabrication

• Line Items must have a Quantity• Building and Room Number must be valid• Room Numbers are at least 4 characters (both alpha and numeric) and usually begin

with ‘0’• Portable Assets have NO RM LC as room but we still need a building number• Do not try to add the same asset number twice when modifying• Click the add button to add the location• For Capital Trade-Ins, don’t forget to check the box labeled “Assigned to Trade In”, on

the line with the Trade-In asset. By checking this box, you’ll be able to input needed information for the asset being traded-In in the ‘Capital Trade In’ tab

• For Non-Capital Trade-Ins, please avoid filling up the ‘Non-Capital Trade In’ tab as currently it is advised not to be populated instead, reduce the amount of Trade-In from the actual line and make notation in the description

• Please refrain from keying in any information (even a single character) in any field that is not intended to be populated

• Don’t hesitate to add notes as they can be helpful at all times• Always attach a copy of the Quote in which the document is based on since all

numbers on the requisition need to be verified against it• Note that the accounts used in the ‘Full Order Discount’ tab will be applied only

against lines with the same object codes• And above all, pick up the phone and call us if you have any questions

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Asset Acquisition

Things to remember while creating a Requisition

• Create• Apply Payment

General

Ledger

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Asset Acquisition

Financial documents (General Ledger) processed into CAB

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Other Documents with Capital Edit Tab Distribution of Income and Expense (DI) General Error Correction (GEC)

These Documents are mainly used to Correct Transactions that have already been entered into UAccess Financials

Year End Documents (YEDI and YEGEC) Must be completed by date given to departments

Asset Acquisition

Other GL Documents

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Please provide the following by adding a note to the Notes Tab: Quantity Description Manufacturer Model Number Serial Number Responsible person Building Number Room Number Attach Invoice

Asset / Edit Tab Does NOT Exist

For Non-Capital Purchases

* Note: Providing us this information right away helps us to approve documents and mail out your property tags faster.

Asset Acquisition

Adding Non-Capital Equipment

Asset Maintenance

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Equipment Tagging

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Equipment Tagging

Property Management sends tags for new assets (along with ‘Asset Inquiry’ sheets) to departments daily

Tags must be affixed to equipment in the most accessible spot for easy viewing and scanning

All Federally Titled equipment must also contain the ‘Property of the Federal Government Do Not Destroy’ tag

‘Part of Tag #’ tags are issued for asset components

No tags are issued for Shell Assets (‘F’ tags) as they only contain raw material

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Equipment Tagging

Certain equipment can be exempted from tagging due to: Their size Physical properties Type of use Location/Accessibility

Identifying information must be maintained by the department using the equipment

Records should be organized with tags attached All related information must be easily accessible

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Asset Search and Edit

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Log in to UAccess Financials Go to Main Menu

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Click Here

Asset EditMandatory: Always put the A- or N-tag in Description field & a brief explanation of change being made. Optional: Reason for changeOptional: Date

Editable by Asset Custodian

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Asset Edit

Editable by Asset Custodian

OR

On-Campus

Off-Campus

Off-Campus Use of Equipment

Equipment taken off Campus must have the “Certification Statement for Off Campus Location/Use of Equipment” completed

A completed form must be… Signed by the Department Head Placed on file in departmental records

UAccess CAM must be updated with the new location information

This form is located in the Financial Services Office website (below link) under Forms section http://www.fso.arizona.edu/capital-finance

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Off-Campus Use of Equipment

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Interdepartmental Transfers & Interdepartmental Sales

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Interdepartmental Transfers Vs. Interdepartmental Sales

Transfers Sales Transfer of an asset(s)

without exchange of funds

Two departments negotiate trade.

Contact Property Management & provide: Proof of agreement by both

parties Receiving Department (Org

Code) & account * New location of asset Tag Number(s) of asset(s)

being transferred

Transfer of an asset(s) with exchange of funds

Two departments negotiate trade & price

Prepare a Transfer of Funds (TF) document

Contact Property Management & provide: Proof of agreement by both

parties Receiving Department (Org

Code) & account * New location of asset Tag Number(s) of asset(s)

being transferred

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*Note: Account is for transfer purposes only, it is not used to charge the account or change the payment information

Transferring Equipment to the University of Arizona

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Transferring Equipment to the University of Arizona

Principal Investigators (PIs)transferring to the University along with their equipment must present: A letter of permission to bring along the

equipment A listing of equipment containing the following

information: Description Acquisition (In-Service Date) date Cost or Fair Market Value Manufacturer Model number Serial number Building and room number where the equipment will be located

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Transferring Equipment from the University of Arizona

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Following conditions must be met for PIs to transfer equipment to another institution: Equipment must have been purchased

Entirely* on sponsored accounts (3000000-4999999)**, Obtained as government-furnished equipment, Or purchased on restricted accounts (non-university funded)

Equipment must be used in the conduct of a research project

Equipment must be titled to an eligible institution Property cannot be transferred to an individual or for-profit

organization Transferring researcher is the principal or co-PI on the

sponsored grant or contract.

* Note: If equipment is split-funded with a UA account, it cannot be transferred, but must be sold via Surplus** Note: This applies to Federally Funded equipment ONLY, not Federally Titled equipment


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Principle Investigator (PI) needs to submit Memorandum of Request Memo must include the following information:

Reason for transfer Name of new institution Name and address of new institution’s Property

Administrator Date items are to be shipped List of assets to be transferred

Memo must be signed and approved by the Department Head, Dean, Vice-President for Research, and Sponsored Project Services (SPS) Property Administrator*

* Note: It is recommended that departments allow SPS to review the list prior to obtaining signatures to ensure transfer eligibility

Transferring Equipment from the University

of Arizona

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Department Letter Head Date Leslie P. Tolbert, Ph.D. Senior Vice President for Research University of Arizona Tucson, Arizona RE: Request for Equipment Transfer I am transferring to the faculty of the University of XXXX, Department of XXXX. My last day at the University of Arizona is XXX. I will be continuing my current research work at the (new University). I request the transfer of University owned equipment listed on the attached sheet. The equipment was purchased on my grant (and/or contract) award(s) from (sponsor names). The point of contact information at the University of XXXX is: name, title, address and phone. Thank you for your consideration. Sincerely, P.I. signature P.I. typed name Attachment: Property Schedule Approved: ___signature__________________ ____signature____________________ Dept Head typed Name College Dean typed name Title Title ____________________________ _________________________________ Jennifer J. Brown Leslie P. Tolbert, Ph.D Financial Compliance Coordinator Senior Vice President for Research

Example Memorandum of Request

Required Signatures

Name

Name

Physical Inventory

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Physical Inventory

The University Physical Inventory of Movable Equipment is conducted on an biennial basis (once every 2 years)

Inventory must be completed by fiscal year end (June 30) to coincide with issuance of University Annual Financial Statements

Following assets are subject to be inventoried University Titled Capital Movable equipment Federally / Sponsor Titled Movable Equipment Federally / Sponsor Funded Movable Equipment

Scanner and Paper Report Methods Scanners are generally provided to departments with a

larger number of assets as well as to Asset Custodians responsible for multiple departments

Paper Reports are generally used by departments with a few assets 56

The last University Wide Physical Inventory was done in Fiscal Year 2013

The majority of the inventory performed this year was done using 85 scanners (provided to 115 departments). The remaining 179 departments were given paper copies of their asset listing

Based on the latest statistics, the Physical Inventory process lasted nearly a year and required a combined work force by Property Management with nearly 4,000 work-hours to complete the process

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Physical Inventory

Audits

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ONR & Other Sponsor Audits

Office of Naval Research (ONR) Audit Audit for compliance with Federal Acquisition Regulations and OMB

Circulars regarding the control, protection, and maintenance of government property, both federally owned (titled) and federally funded which is performed once every 2-4 years (as needed).

This Audit was last performed and was successfully completed in July 2013

OMB Circular A-133 Audit Intended to promote sound financial management, including

effective internal control, with respect to federal awards administered by state and local governments and not-for-profit organizations

This Audit was last performed and was successfully completed in July 2013

Departments possessing Federally Titled (Federally Owned) and Federally Funded (University Owned) equipment are subject to frequent audits and stricter regulations

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Disposals

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Asset Disposal Methods*

Sold Trade-in Capitalization

Change Fully Depreciated Lost/Unlocated Cannibalized Theft Destroyed

External Transfer Asset Created in

Error Title Change Merged Obsolescence Asset Separated

Retirement Returned to Vendor

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*Note: Since ONLY Property Management can retire assets, please provide us with the appropriate disposal method and necessary backup when an needs to be retired

Disposals Asset Status of equipment is important to

determine when disposing of an asset Asset Status can be found on the Asset Inquiry

screen Go - Disposal process may continue if Asset Status is:

A - Active and Identifiable L - Lost N - Non-Capital Active

Caution - special disposal requirements for: Federally Funded assets with accounts in 3000000-4999999

range may require special treatment Contact Sponsored Projects Services’ (SPS) Property

Administration to receive instructions on how to dispose of the equipment

Stop - Do NOT dispose if the Asset Status is: F - Federally-Owned Active Contact SPS Property Administration to receive instruction on

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Disposals: Cannibalization

Equipment being disposed as a cannibalization must be submitted on an ‘Request for Authorization to Dispose of Property’ (RADP) form Direct Link

(http://uabis.arizona.edu/eforms/Forms/iAuthorization_to_dispose_of_Property.pdf)

From the University’s Main Page (UA Home) Click on A-Z Index Click on ‘F’ off the directory Click on Financial Services Office Click on eForms Click on ‘R’ on the bar Click on the PDF icon for this form

Send signed copy of form to Property Management for asset to be disposed

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Disposals: Cannibalization - RADP

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Disposals: Theft, Damage, Accident

Reports Police Report (UA Police Department)

Police Case Number is required for the Asset Retirement document http://www.uapd.arizona.edu

Property Loss Report Form (Risk Management & Safety) This form is used for insurance recovery purposes

http://risk.arizona.edu/insurance/propertyclaims.shtml

These reports are required to be completed for: Asset Theft Asset Damage Vehicle Accidents

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Disposals: Surplus

Assets can be sold as an: Auction Sale (every 2 weeks on Tuesdays) Special Bid Agency Sale

Property Management retires sold assets after every auction using reports printed from the Surplus Property Management System

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Campus, Building and Room Validations

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To find a valid Building in UAccess Financials: Building tables containing Building Codes are

located in the Maintenance tab under the System section

Building Codes (or numbers) have the following characteristics Building Codes always require a Campus Code Building Codes range from 1 to 5 digits with some

having a letter as a suffix Building Codes in the 99XXX range are for buildings that

the University does not own but might be leasing Therefore, they are not maintained by REA and have no

valid room numbers

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To find a valid Room in UAccess Financials: Room table containing Room Codes is located in the

Maintenance tab under the System section Room Codes (or numbers) have the following

characteristics Room Codes always require a Campus/Building Code Room Codes are a minimum of 4 characters

Room Codes may contain both Alpha and Numeric characters

Room Code NO RM LC (found in every building’s room listing) is used for Portable assets (i.e., computers, vehicles, etc.) Assets outside of a building (i.e., yard, roof, etc.)

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Real Estate Administration

The Real Estate Administration (REA) periodically updates the Building and Room tables in UAccess Financials Maintenance tab

Any Building and Room values in all UAccess Financials documents are checked against these tables and incorrect values are rejected

In cases where new assets are assigned to buildings that are not built or rooms that are not assigned yet, you may use existing buildings and rooms with notes indicating the future permanent location of the assets

To find a valid location on REA’s website: http://www.space.arizona.edu/index.shtml

Use the Real Estate Administration’s floor plans of campus buildings to obtain the valid locations

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REA: Select Services

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REA: Select Inventory Data and Key Plans

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REA: Select View AutoCAD Drawings with Adobe Acrobat

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REA: Enter UA NetID and Password

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REA: Select the folder for the range that contains the building in question

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REA: Select the desired building file (in .pdf format) for viewing

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Property Quiz

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Property Quiz

Questions Q1) Name two of the criteria

that must be met for a purchase to be considered capital equipment?

Q2) What object code do you use to purchase a computer for a total cost of $4,268.99 on State Funds?

Answers A1) For these six reasons:

Cost must be $5000 or greater

Must have a life expectancy of 1 year or greater

Free standing Movable Must be complete in and by

itself Must maintain it's identity if

attached to another item

A2) Object code 5720 – Non Capital Inventoried Equip-UA Owned

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Property Quiz

Questions Q3) Can installation charges

be charged to a capital object code for a piece of capital equipment?

Q4) Can operating system software be charged to a capital object code?

Q5) Can Microsoft Office software be charged to a capital object code?

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Answers A3) Yes

A4) Yes

A5) No

Property Quiz

Questions Q6) Name three non-capital

equipment that must be tracked in UAccess Financials CAM?

Q7) If someone in your department is fabricating equipment and they make a purchase for the fabrication that is less than $5,000, what object code would you use?

Q8) What equipment must be in CAM even if it cost less than the $1,000 threshold?

Answers A6) Following are non-capital

items must be tracked: Computers (Cost > $1,000) Federally titled equipment Weapons and Firearms Vehicles (of any value)

A7) 5750 – Materials Fabrication – UA Owned

A8) Following are such items: Federally titled equipment Vehicles titled with motor

vehicles

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Property Quiz

Questions Q9) Where can you find the

listing of ‘Asset Type’ Codes?

Q10) Can you send Federally or Other titled equipment to Surplus Property?

Answers A9) Under Maintenance Tab

Capital Asset ManagementAsset Type

A10) No. You must contact Jennifer Brown in Sponsored Projects Services (SPS). She in turn contacts the sponsor to find out what they would like us to do with the equipment. They usually will want the equipment back or relinquish the title to the equipment. If the title is relinquished, Jennifer sends paperwork to Property Management. We will change the Asset Status to “A”, at that time, the equipment may be sent to Surplus Property

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Property Quiz

Questions Q11) Does Property

Management issue tags for a ‘Shell Asset’?

Q12) Equipment that has a Asset Status Code of “F" belongs to whom? A. University of Arizona B. General electric Corp C. Federal Government

Answers A11) No, Shell Assets are

not issued any tags as they contain only raw materials

A12) It belongs to the Federal Government. The Asset Status Code of “F" (Federally-Owned Active) is used for all Federal Government as well as Other Owned assets.

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Property Quiz

Questions Q13) When deliverable

equipment is completed and delivered to the sponsor, what must you submit to sponsored projects in order for the equipment to be removed from your inventory?

Q14) What two forms do you need to submit if equipment is lost or stolen?

Answers A13) When the equipment is

delivered to the sponsor, you should receive a ‘Delivery Receipt’. The delivery receipt must be submitted to Sponsored Projects Property Administrator whom in turn submits the necessary paperwork to Property Management for the equipment to be disposed

A14) The following forms: A police report, and ‘Property Loss Form’

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Property Quiz

Questions Q15) For an Interdepartmental

Sale, what document must be completed prior to reporting the sale to Property Management?

Q16) What two tags MUST be affixed to Federally titled equipment?

Q17) What Expense Object Code is used to record Extended Warranty for computers?

Q18) Does equipment brought to the University by transferring PIs belong to them?

Answers A15) ‘Transfer of Funds’

document

A16) The first is an A, D or N tag. The second is a ‘Property of the Federal Government’ tag.

A17) 3530

A18) No

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Property Quiz

Questions Q19) What form do you

submit when equipment is being removed from campus?

Q20) Will UAccess Financials allow invalid room number entries?

Answers A19) ‘Certification

Statement for Off Campus Use’ form

A20) No

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Comments or Questions?

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The End

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