OFFICE OF CONTRACTS AND GRANTS

OFFICE OF CONTRACTS AND GRANTS

EQUIPMENT ACQUISITION AND MANAGEMENT

PURPOSE =

The purpose of this statement is to provide guidelines that Colleges/Schools/Departments/Units should follow in accounting from a spons= ored award.

Effect= ive July 1, 1996 the following constitutes equipment and supplies.

Equipment – nonexpendable, tangible, perso= nal property having a useful life of more than one year AND an acquisition cost= s of $5,000 or greater. This thres= hold is consistent with the definition of equipment referenced in OMB circulars = A-21 and A-110, University Accounting Procedures, and UNC-GA. For contracts and grants awarded p= rior to July 1, 1996 the threshold for equipment is $500 or more.

Note that equipment can further be categorized as either general purpose or special purpose equipment.

Supplies – expendable property having a us= eful life of one year or less or an acquisition cost of less than $5000.

Equipment fabrication – when multiple items which could be classified as supplies (some having acquisition costs of $ 5= ,000 or <) are purchased to create/fabricate an integrated unit of equipment having a total value of $5,000 or more.&nb= sp; In these instances, the individual purchase should be budgeted and accounted for as equipment. Fabrication does not include the replacement or upgrading of existing equipment or components and these cost items are to be budgeted and charged= as supplies.

Note that if an award does include the fabricati= on of equipment, the College/School/Unit is responsible for requesting a change from the standard equipment code to one for fabrication.<= /p>

GENERAL GUIDELINES/APPLICABLE POLIC= IES

A. Acquisition Guidelines<= /span>

= 1. University Purchasing Procedures:<= o:p>

Th= e Principal Investigator and/or assigned personnel assisting in the acquisition of the equipment must adhere to University purchasing procedures (See Purchasing Policies & Procedures.

&n= bsp; 2. Screening Prior to Purchase:<= /o:p>

The Office of Management and Budget (OMB) Circular A-110, Subpart C Section 44 requires equipment screening in an effort to avoid purchasing unnecessary i= tems. This screening must be under= taken prior to issuing a purchase requisition for the equipment. The university has established the following guidelines for equipment screening:

a. The Principal Investigator is required to screen on a University –wide basis for availability of equipment costing $25,000 = or more Screening requests are made to the University Property Management Office prior to issuing a purchase requisition, A record o= f the screening will be retained with the purchase requisition to confirm complia= nce for audit purposes.

Ad= ditional screening requirements may be necessary for specific agencies. Please see award documentation for= more detail.

B.= Government –Furnished Proper= ty (Equipment)

Th= is category includes:

1. Equipment acquired under Federal contracts that are governed in accordance with FAR 45.5, Government Property and

2. Property furnished by the Federal government to the University/Principal Investigator.

Eq= uipment transferred to the University and governed according to FAR 45.5 must be recorded in the Capital Assets Management System. A copy of correspondence related t= o the transfer of government property to the campus is to be forwarded to the Off= ice of Contracts and Grants.

In= most cases title to Federally owned property that is = used by the University during the award period vests with the Government. Title and disposition of government property is to be administered in accordance with FAR 52.245-5 Alternate I. Disposition and final title vestment instructions are provided by the Office of Sponsored Programs.

3. Inventory Control:

The Principal Investigator and the appropriate support personnel are responsible for maintaining and updating records of equipment accountable under each aw= ard.

4. Disposal of Equipment:

Eq= uipment purchased under a contract or grant may provide for title to vests with the University. The conditions or agreement cited in the award document must be reviewed to determine if the Government does or does not intend to retain title. For projects in which title = to equipment vests with the University, normal University regulations related = to trade, transfer or disposition must be followed. (See Purchasing and Property Management Section)

For sponsored awards that provide for the title to remain with the Government, prior written approval must be received from the appropriate funding agency prior to the trade, transfer or disposition of equipment.=

No= te: OMB Circular A-110 allows the Fede= ral government to transfer and otherwise provide disposition instructions on all items of equipment. The equipment shall be appropriately identified in the award or otherwise made known to the recipient. Disposition instructions will be i= ssued within 120 days of receipt of a final equipment inventory.

5. Equipment Not in Approved Proposal/Budget

Fo= rmal approval is normally required from agencies (occasionally delegated to the Office of Contracts and Grant) prior to purchasing equipment if not listed = in the approved proposal/budget. The Principal Investigator may want to compile a list of all anticipated equipm= ent for a one-time approval in order to reduce the paper work and time involved= in approving each piece of equipment separately.

6. Office of Naval Research (ONR)

Complete DD Form 1419 for equipment purchased from spons= ored awards administered under the cognizance of ONR. Contact the Office of Sponsored Pr= ograms for Form 1419 and instructions for completing.