Equipment Policies

1. Equipment Policies

2. Equipment Policies Scott Cingle – iyc3@psu.edu Property Supervisor Property Inventory 814-863-1378 Personal 814-865-7531 Office

3. Plant Assets • Land • Buildings • Improvements Other Than Buildings (IOB) • Roads, parking, sidewalks • Usually called Infrastructure • Equipment • Both Movable and Fixed • UNIV, GOVT or Sponsor

4. 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

5. Capital Equipment Definition? • Single item that: • Has a value of $5,000 or more and • useful life of two (2) or more years. • See GURU Procedure CR2019 • http://guru.psu.edu/ • Procedure • CR2019 Accounting of Capital Equipment

6. Federal Regulations OMB = Office of Management & Budget FAR = 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.

7. Federal Regulations (Cont.) http://www.research.psu.edu/osp/links/award-misc/omb • Click on OMB Circulars http://www.research.psu.edu/osp/manage-awards/Sponsor-guidelines-and-terms/contract-regulations • Click on Federal Acq. Regulations (FAR)

8. 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

9. 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

10. 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)

11. Computer OCC • 480 – Computer & Accessory Equipment Non-Capital : Costs Less than $5,000 • 751 – Computer & Accessory Equipment Capital: Costs $5,000 or more

12. CPU Monitor Keyboard Mouse Cabling Internal items such as memory, boards, etc. Initial operating software Computer consists of:

13. Items not considered a computer • Printer • External disk drive • Scanner • External storage drive • Video Camera • Optional software

14. ComputerCluster • Is multiple cpu’s, nodes, blades, drives that work as one unit • Replacement nodes are non-capital • 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 • 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.

15. Capital OCC 710 – Capital Equipment • Non-Computer Related • Per item value: $5,000 or more

16. 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

17. Fabrications – OCC 705 • Guidelines are available in your packet. • You must ask permission in writing to the Supervisor of Property Inventory to use this classification codepriorto 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.

18. 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

19. 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

20. 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

21. OCC 715 – Operating Lease • If items meet any one of the conditions for a lease purchase, but costs less than $5,000

22. Ownership Codes in IBIS • University Owned = U • Government Owned = G • Sponsor Owned = S • Leased or Loaned = L

23. 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.

24. 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

25. 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.

26. Government Owned Equipment (Continued) As a standard practice the respective administrative area’s: • Financial Officer and • Research Administration Office should: • First review any action involving Government Owned Equipment. • Then contact Property Inventory for instructions on how to proceed.

27. 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

28. 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

29. 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.

30. 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.

31. 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)

32. 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

33. 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

34. 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

35. Grants/Contracts • Is there GFE listed in the contract • Equipment Ownership • FDP IV (Grants) – 120 day issue • Special awards (URS) $300.00 limit

36. 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

37. 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.

38. This Concludes this Presentation