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What we are going to talk about: How is FA Award Property different? What do I need to know?

Tangible Personal Property Associated with a Financial Assistance Award Property Workshop Outline. What we are going to talk about: How is FA Award Property different? What do I need to know? What training is available? What’s is on the horizon? Contacts and Questions?.

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What we are going to talk about: How is FA Award Property different? What do I need to know?

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  1. Tangible Personal Property Associated with a Financial Assistance Award Property Workshop Outline What we are going to talk about: • How is FA Award Property different? • What do I need to know? • What training is available? • What’s is on the horizon? • Contacts and Questions? MA-653 ~PMW 2013

  2. Tangible Personal PropertyAssociated with a Financial Assistance Award How is FA Award Property different? FA Handbook: Tangible property excludes IUS, IP, or subject inventions # Real Property: Immoveable > Land/land improvements, structures and appurtenances Personal Property: Moveable > • Equipment*:1ea end items; a useful life of more than 1 year ; OAC of $5K (=>) • Supplies^:all personal property, generally consumable items used in the normal course of business (above exclusions). # as defined in 37 CFR part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts, and Cooperative Agreements.” *recipient may use its own definition of equipment provided the definition would include all articles of equipment as defined in this paragraph ^ as defined in10 CFR 600 MA-653 ~PMW 2013

  3. Tangible Personal PropertyAssociated with a Financial Assistance Award How is FA Award Property different? Types of awardees (each addressed separately in 10 CFR 600) : • For Profit • State & Local Governments (Tribal) • Higher Education, Hospitals and other non-profits Although similar in characteristics, management protocols, and purchased w/Gov’t Funds – title conditionally vests with the recipient/subrecipient1: • Property is not managed as GP (GFE/GFM) • Property is subject to use, management, and disposition , as outlined in 10 CFR 600 • Recipient isentitled to compensation - cost share portion of property’s value - should DOE exercise the right to transfer title to the government or an eligible third party. DOE still has oversight responsibilities (to know what is where, its use, condition and value) and “ensure assets purchased with Federal funds are safeguarded”(OIG Rpt OAS-RA-L-1205 July 2012) 1OMB A-110, 10 CFR 600 MA-653 ~PMW 2013

  4. Tangible Personal Property Associated with a Financial Assistance Award How is FA Award Property different? Tangible Property used under an award is classified IAW how it is bought: (1) Acquired property: purchased under the award with Federal $ for the purposes of work done under the grant award. Also called ‘FA property’, ‘award property’, ‘grant property’ (2)Federal property (also GFP/GFM/GFE): Federally-Owned property provided to the recipient for its use by the Government.Upon completion of the award or when the property is no longer needed, the recipient shall report the property to DOE for further Federal agency utilization. If unrequired by DOE => GSA Xcessunless research equip appropriate for donation under E.O. 12821, “Improving Mathematics and Science Education in Support of the National Education Goals.” [educational and non-profit organizations] Appropriate instructions shall be issued to the recipient by DOE. (3) Exempt property (also excepted): tangible personal property acquired in whole or in part with Federal funds, where the Federal awarding agency has statutory authority to vest title in the recipient without further obligation to the Federal Government. 31 USC § 6306 – Authority to vest title in tangible personal property for research The head of an executive agency may vest title in tangible personal property in a nonprofit institution of higher education or in a nonprofit organization whose primary purpose is conducting scientific research— (1) when the property is … procurement contract, grant agreement, or cooperative agreement (2) when the head of the agency decides furthers the objectives of the agency ; (3) without further obligation to the United States Government; and (4) under conditions the head of the agency considers appropriate. MA-653 ~PMW 2013

  5. Tangible Personal Property • Associated with a Financial Assistance Award • How is FA Award Property different? 580.1A provides influence not direction; property accountability and disposal considerations only. MA-61 owns regulations NOPR Planned ; expand direction on for profit awards Atomic Energy Act Atomic Energy Act Atomic Energy Act 41 CFR 109 DOE Prop Mgmt Reg 10 CFR 600 Financial Assistance 41 CFR 101 & 102 FPMR &FMR 48 CFR DEAR 945 DOE Gov’t Property DEAR 970 M&O DEAR 908 Leased Fleet FAR 45/52 Gov’t Prop FA Handbook DOE Order 580.1A Personal Property Mgmt RELEASED 3/31/2012 FA Letter DOE Guide 580.1 Personal Property Mgmt Pending: property specific FAL MA-653 ~PMW 2013 ALs PPLs

  6. Tangible Personal Property Associated with a Financial Assistance Award What do I need to know? Recipients are responsible formaintaining PMS that has these things: • Accountable Property Records (9 data elements req’d; consistent with Industry leading practices) • Indicator if Fed Ownership (as applicable). • Last Inventory Conduct/Reconciliation • Awd/Excepted Property: at least every two years. • GP : annually (4) Controlsto prevent Loss (to include theft), Damage or Destruction (5) Maintenance procedures (6) Sales Procedures (where authorized/required) (7) Insurance * Not applicable to equipment furnished by the Federal Government. 1 FA Handbook ; 4.8.4 Property Management Standards MA-653 ~PMW 2013

  7. Tangible Personal Property Associated with a Financial Assistance Award What do I need to know? General • Recipient may continue to use recipient acquired property beyond the PoP w/o obligation during the period of such use, to extinguish DOE's conditional title to such property, as described in 10 CFR 600.132-135, 10 CFR 600.231-233, 600.321-324 : • Recipient continues to utilize property for purposes of the original award (Statement of Project Objectives); • DOE retains right to ask for/receive information concerning use & condition of property; and • Recipient follows property disposition rules (10 CFR Part 600), if the property is no longer used by the Recipient for the objectives of the project, and the FMV >$5K • FMV*<$5K?: DOE has no interest; recipient no further obligation to DOE(not reportable; may abandon) • FMV*=>$5K?: reportable; recipient maycontinues to use in the ‘project for which it was acquired’ • PP embedded/installed in RP? > APR show PP reclassified as RP; no longer reported as PP unlessremoved/de-installed for any reason • PP has unused supplies aggregate FMV * =>+$5K? Recipient may a) use supplies to another federally-sponsored project or • retain or sell supplies; compensate Government for its share * per unit FMV 1 iaw 10 CFR 600.321(e)(2) * per unit FMV MA-653 ~PMW 2013

  8. Tangible Personal Property Associated with a Financial Assistance Award What do I need to know? Tangible Property Reporting SF-428 Family: For all new awards • SF-428 = cover page; submitter lists and attaches forms. as appropriate • SF-428A = Annual report • SF-428B = Final Award Closeout Report • SF-428C = Disposition Report/Request • SF-428S = Supplemental form for the SF-428A, SF-428B, and SF-428C MA-653 ~PMW 2013

  9. Tangible Personal Property Associated with a Financial Assistance Award What is on the Horizon? Refined/expanded direction for awd property in regulations, guidance and training specific to : • OMB to issue within next 3-9 months universal guidance for FA issued applies to all types of recipients; uniform regulations MA-61 led, MA-65 supported: • Update to 10 CFR 600 (NOPR) • Distinct differences for the For-Profit • Bankruptcy (addresses circumstances where/if , but is very rare; current clause does not mention property) • Property disposition • Personal-to-real property treatment and disposition processing • FA Guide Update • Financial Assistance Letter (FAL) release MA-65/PPM planned Initiatives: • Training Needs Assessment/Competency study • OLT (property specific) MA-653 ~PMW 2013

  10. Tangible Personal Property Associated with a Financial Assistance Award Contacts? • MA-611 procurement policy MA-651 Ellen Colligan 202-287-1776 • MA-653 personal property policy: MA-653 Sarah Ball 202-287-1563 • MA-652 real property policy: MA-652 Monja Vadnais 202-586-6199 References? • Link to the 10 CFR 600, includes property rules. (600.133 is for non-profits; 600.231 is for local and state governments; 600.321 is for-profit organizations etc) http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=195ccb88a2f5bd1bd944eb92caba8dc4&tpl=/ecfrbrowse/Title10/10cfr600_main_02.tpl • Link to the Guide to Financial Assistance (property starts on page 50) > re-issue pending http://energy.gov/management/downloads/guide-financial-assistance • Link to SF428 Family of Reports http://www.whitehouse.gov/omb/grants_forms Questions? MA-653 ~PMW 2013

  11. Tangible Personal Property Associated with a Financial Assistance Award Back-up MA-653 ~PMW 2013

  12. Tangible Personal Property Associated with a Financial Assistance Award FA AWD property Accountable (5K & above) Property Record - data elements rqmts: • Property Record: • Description • Item identifier (MFR S/N, FSN, NSN, etc) • Source + AWD # • Vesting status (recipient or Fed) • Acqn date (or date received if GFP) + cost • Data to support calculation of % of Federal participation in equipment cost • Location/condition + date (reported/inventoried) • Unit Acqn cost • Disposition date; if applicable, sales price + method (see 6) MA-653 ~PM Workshop 2013

  13. Tangible Personal Property Associated with a Financial Assistance Award What do I need to know? Bankruptcy: Post-bankruptcy treatment of award property: upon filing, award property becomes “Property of the estate”. Current Bankruptcy clause does not mention property. • Property of the estate is broadly defined, includes • “[E]very conceivable interest of the debtor;‘as of’ and after case commences • Property obtained through comprehensive government grant programs may be excluded from “property of the estate” • Automatic Stay: constitutes an order of the court • extremely broad in scope ... should apply to almost any type of formal or informal action against the debtor or the property of the estate.” • applies to all “entities” including governmental units; 11 U.S.C. § 106(a) waives sovereign immunity to make the stay applicable to governmental units MA-653 ~PMW 2013

  14. Tangible Personal Property Associated with a Financial Assistance Award What is on the Horizon? Personal Property Management Steering Committee FA Property WG Problem Statement: 10 CFR 600 and corresponding DOE training curriculum does not provide adequate direction in the accountability and control of award property, jeopardizes DOE ability to maintain adequate documentation and to “ensure assets purchased with Federal funds are safeguarded” (OAS-RA-L-1205) MA-653 ~PMW 2013

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