1 June 2015. 2 3 4 5 6 7 8 Code of Federal Regulations (CFR) / Office of Management & Budget (OMB) ...

PROPERTY MANAGEMENT

TRAINING

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June 2015

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Parties Involved

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

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

Federal/Sponsor N 3,4 5XXXXFederal/Sponsor F 3,4 5XXXX

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

N-Tag

A-Tag **

S-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

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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Asset Acquisition

Assets that are loaned, donated or provided by the sponsor, do not go through the normal UAccess Financials document routing. The departments are therefore required to complete the “Property Management - Equipment Receipt Form”.

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

Loaned, Donated or Sponsor Provided Assets

Assets that are given to the University as gift must be processed via the Gift Office.

Contact the Gift Office or visit their website to obtain more information on how to report a gift.

Gifts

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Asset Acquisition

Property Management - Equipment Receipt Form

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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

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Equipment Tagging

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

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 E-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 list 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 Investigator or

Co-Principal Investigator 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

NamePosition

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 58

Currently the Property Management is conduction the University Wide Physical Inventory due on June 30

The inventory performed this year was done using 58 scanners (provided to 114 departments). The remaining 192 departments were given paper copies of their asset listing

Based on the latest statistics from the last inventory done in Fiscal Year 2013, the Physical Inventory process lasted nearly a year and required nearly 4,000 combined work-hours to complete

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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

Office of Management and Budget (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).

The last audit successfully completed was performed 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

The last audit successfully completed was performed in July 2015 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: as ONLY Property Management can retire assets, the party requesting the asset retirement need to provide us with the appropriate disposal method and necessary backup

Disposals Equipment’s Asset Status is important to

determine whether to dispose of an asset or not 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

how to dispose of the equipment The asset has an Orange colored S-tag

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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 by Surplus Property through: Auction Sale 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) updates the Building and Room tables in UAccess Financials Maintenance tab on a daily basis

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

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

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: Services

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REA: Floor Plans

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REA: Building Key Plans

REA: UA NetID and Password

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REA: Select Format Type

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REA: Select Building/Floor Combination

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REA: Blueprint Drawing

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 $5,000 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) The Incorrect us of an Object Code can lead to what issues?

Answers A6) Yes, the installation

charges are included as… The user might not have the

necessary resources to install the equipment

The equipment will no be ready for use without it

A4) Yes

A8) It will lead to the following: Incorrect categorization of

assets and expenses, and as a result…

Incorrect Financial Statements

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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: Firearms 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 Gricelda LaTurco in Sponsored Projects Services (SPS). She will contact the sponsor to find out what needs to be done with the equipment. The sponsor usually requires the equipment to be returned to them or relinquish the title to the equipment to the University. In either cases, Gricelda will send the necessary paperwork to Property Management to make the needed changes to that asset in UAccess Financials.

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Property Quiz

Questions Q11) Does Property

Management issue tags for a ‘Shell Asset’?

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

Answers A11) No, no tags are issued

for Shell Assets as they contain only the raw materials used to construct other assets

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) Whom should you contact to report an incorrect room number in your building?

Q18) Does equipment brought to the University by transferring Principal Investigators 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) Real Estate Admin (REA)

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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1 June 2015. 2 3 4 5 6 7 8 Code of Federal Regulations (CFR) / Office of Management & Budget (OMB) ...

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Transcript of 1 June 2015. 2 3 4 5 6 7 8 Code of Federal Regulations (CFR) / Office of Management & Budget (OMB) ...