|
written/compiled by the Brown University Office of Sponsored Projects
The management of the University’s personal property is the responsibility of and resides in the Office of Sponsored Projects (OSP). This manual sets forth the official University procedures for property management and control. These procedures are designed to meet Federal and University audit standards. Additionally, this manual is intended to be a comprehensive tool for use by University employees to ensure that questions raised in daily activity can be answered by reference to the manual. In keeping with the goals and objectives of this manual, OSP, Internal Audit, and/or federal auditors will conduct periodic field visits and audits to verify that departmental practices are consistent with this manual. Since each department has the opportunity to maintain its own unique record keeping practices, the purpose of these field visits and audits will be to verify overall compliance with University procedures and prevent audit disallowances. OSP will also make recommendations about each department's record-keeping system in an effort to improve methods where such improvement is warranted. The objectives of Brown University's Property Management System are as follows:
Equipment (also referred to in this manual as property or asset), as defined by Brown University, is tangible, non-expendable, personal property having an anticipated useful life of one year or more and having a unit acquisition cost of $3,000 or greater. The acquisition cost is the net invoice unit price of the property including the cost of modification, attachments, accessories or auxiliary apparatus necessary to make the property usable for its intended purpose. Ancillary charges, such as taxes, duty, protective in-transit insurance, freight, and installation will be included in the overall costs if these charges are listed on the same invoice. Spare or replacement parts, regardless of cost, will be classified as supplies. This definition applies to all equipment borrowed long-term, purchased, or received as a gift or donation. Any asset satisfying the definition of equipment will be charged to one of the following subcodes (4XXX):
III. EQUIPMENT CLASSIFICATIONS A. GIFT OTHER THAN MONEY (GOTM) - Equipment donated to Brown. B. BROWN PURCHASED - Equipment purchased with University funds. C. PURCHASED WITH FEDERAL FUNDS- Equipment purchased with Federal funds.
IV. OSP'S ROLE IN PROPERTY MANAGEMENT The Director of Purchasing has been designated as the Property Officer of the University with overall responsibility for the disposition of all property. The responsibility for management of property has been delegated to the Property Systems Manager. It is within OSP that official property records are located and the Property Management System is maintained. Overall property management is achieved through the combined efforts of the Purchasing Department, OSP and the Office of the Controller in conjunction with each individual department, center or program. OSP’s functions are as follows:
Any questions regarding property management practices at Brown University can be addressed to OSP, Box 1929, or by calling the Property Systems Manager, x3.1798.
V. DEPARTMENTS ROLE IN PROPERTY MANAGEMENT Each department must designate a single department property contact. This contact plays a significant role in the property process by ensuring that equipment is consistently accounted for and identified. The department’s responsibilities are as follows:
Each item of equipment must be identified with a unique barcode tag bearing the correct University asset tag number. In addition, items of federally-owned equipment must be identified with federal inventory tags as outlined in the Federal Acquisition Regulations, subpart 45.5. Upon acquisition, an appropriate asset tag will be forwarded to the receiving department which then is responsible for affixing the tag to the inventoried item. This tag should be placed in a location on the item where it can be easily found, clearly read and where a barcode scanner can easily scan the tag. For equipment that cannot be tagged (“untaggable”) because of size, location, or conditions where a tag would be destroyed, the tag should be affixed to the accompanying “base tag” to which it is attached or contained.
When it becomes necessary to change existing data information, (for example change in condition, responsible person, description, etc.), complete and forward to OSP an Inventory Control form (see FORMS section).
VIII. MOVES / RELOCATIONS / TRANSFERS Departments relocating property, either temporarily (30 days or longer) or permanently, should complete an Inventory Control form (see FORMS section). Complete, sign and forward the form to OSP. Notification by email is acceptable, and all notification should take place prior to, or within 10 days of the action. When an entire department or office is relocating, OSP should be contacted in advance to assist in the identification and updating of the items to be moved. OSP can provide a list of property that can be updated, signed and returned in lieu of an Inventory Control form.
If property cannot be located after reasonable efforts on the part of the department, the department will officially notify OSP via an Inventory Control form (see FORMS section). OSP will code the equipment as unlocated.
X. PROPERTY TRANSFERRED TO ANOTHER DEPARTMENT Departments transferring property to another department should complete and sign the Inventory Control form (see FORMS section). An authorized department representative from the new department must sign the form, indicating acceptance of the asset. The completed form should be forwarded to OSP. OSP will then transfer accountability of the property to the new department. XI. TRANSFERRING PROPERTY TO ANOTHER EDUCATIONAL INSTITUTION
XII. SURPLUS EQUIPMENT (see Purchasing department webpage for policy) Surplus equipment is defined as University property to be disposed, traded-in, cannibalized, externally donated or transferred, or sold. No item of equipment, whether purchased with University funds or otherwise acquired, may be surplused without the prior written approval of the Director of Purchasing or his/her designee. Sales of equipment between departments are prohibited. The following procedure shall be used in declaring an item surplus: The initiating department will complete a surplus form (see FORMS section) and forward it to the Purchasing Department bearing the required signatures. The Purchasing Department will forward it to OSP for title review. If an item of federally-owned property is declared surplus, the Property Systems Manager will request disposition instructions from the appropriate federal agency. Some private sponsors may also specify retention of title to equipment acquired under a sponsored project. In this case, disposition will be handled as noted for federally-owned items unless specified otherwise in the award document. If title to the asset is clear, OSP will sign and return the original surplus form to Purchasing. Additional Environmental Health & Safety reviews may be required. Arrangements for pickup and delivery of surplus equipment will be the responsibility of the Purchasing Department via Facilities Management.
A. Trade-Ins A Declaration and Disposal of Surplus Equipment form (see FORMS section) with an authorized department signature indicating that the equipment is going to be traded in must be forwarded by the department to the Purchasing Department for approval prior to action. OSP will code the equipment as being traded-in. B. Dismantled Equipment (i.e., used for spare parts) A Declaration and Disposal of Surplus Equipment form (see FORMS section) with an authorized department signature indicating that the equipment is going to be used for spare parts must be forwarded by the department to the Purchasing Department. OSP will code the equipment as being dismantled. C. Disposed/Scrapped Equipment University equipment can only be disposed of with the written approval of the Director of Purchasing. A Declaration and Disposal of Surplus Equipment form (see FORMS section) with an authorized department signature indicating that the equipment is going to be scrapped must be forwarded to the Purchasing Department. Include any items not returned repaired from Service & Repair. OSP will code the equipment as surplus, broken or obsolete. D. Sold Equipment University equipment can only be sold to outside parties with the written approval of the Director of Purchasing. A Declaration and Disposal of Surplus Equipment form (see FORMS section) with an authorized department signature indicating that the equipment is being sold must be forwarded to the Purchasing Department. No equipment sales to individuals will be approved and are prohibited. OSP will code the equipment as having been sold. E. Returned to Vendor Departments are responsible for reporting to OSP equipment being returned to the vendor. A memo indicating that the equipment has been returned to the vendor, along with supporting documentation should be forwarded to OSP prior to the action. OSP will code the equipment as having been returned to the vendor. F. Stolen Equipment Departments are responsible for reporting stolen equipment immediately to the Brown University Department of Public Safety, who will forward the incident report to OSP. If equipment located off campus is stolen, please provide the municipal police department’s report. OSP will code the equipment as having been stolen.
XIV.EQUIPMENT PURCHASED WITH EXTERNAL FUNDS Brown University receives support from the Federal Government and other external sources in the form of contracts, grants, and other agreements. Sponsors will sometimes impose unique administrative requirements for property management. All equipment purchases are subject to the terms and conditions of its corresponding award. All persons responsible for purchasing equipment with external funds should be aware of award terms and conditions. In general, scientific equipment purchases with an acquisition cost of $3,000 or more and having an anticipated useful life of one year or more and all purchases of general purpose equipment (e.g. computers, typewriters, refrigerators, etc.) require prior approval. If approval is not specifically shown in the award document or the approved proposed budget, written approval must be obtained before proceeding with procurement. Some federal agencies have delegated the approval authority for equipment to the recipient institution. The department is responsible for certifying that sponsored funds are available and the equipment will be used primarily or exclusively for the purposes of research. When prior approval is required from the awarding agency, the Principal Investigator (PI) must send a written request through OSP. The request should include justification, description and cost of the equipment and the reason for availability of the funds. Prior to forwarding the request to the awarding agency, this letter must be signed by the PI and the Director of OSP.
XV. DISPOSITION OF FEDERALLY-OWNED PROPERTY Retention by the University of federally-owned property may occur when a contract is completed or terminated provided that the government has approved the transfer of title in writing to the University. If title to federally-owned property remains vested in the Federal Government upon completion of the award or when the property is no longer needed, the University shall report the property to the federal awarding agency for further federal agency utilization. If the federal awarding agency has no further need for the property, it shall be declared excess and reported to the General Services Administration, unless the federal awarding agency has statutory authority to dispose of the property by alternative methods. Appropriate instructions shall be issued to the University by the federal awarding agency. It is the responsibility of the University to notify, in writing, the federal agency when federally-owned property is lost, damaged, destroyed or consumed. Failure to inform the federal agency may result in University liability to the government with subsequent appropriate reimbursement.
XVI. Fabricated Equipment Policy On occasion, equipment cannot be acquired “off the shelf” which meets the need of the intended user(s). In such cases, the equipment must be fabricated from individual parts and built here on campus. The following procedure is for the fabrication of equipment whose total cost of all permanently attached components and material is anticipated to equal or exceed $3,000 and have a useful life of at least one year. The policy, described below, should be used only in those rare cases where the actual piece of equipment is otherwise unavailable and should not be used simply for adding individual components to an existing item of stand-alone equipment (e.g. adding components or upgrades to computers or other existing equipment).
If the request is not complete, it will be returned to the originator for additional information.
XVIII. COMPOSITION OF THE DATABASE The following is a sample of data elements tracked in the inventory database:
OSP has the capability of tailoring property reports to the specific needs of each department in addition to generating standard reports such as: -Equipment by Account Number In addition, other reports can be uniquely designed to include any database fields currently used. You may request any report from the Property Systems Manager, x3.1798, in the following output: - Paper copy
OMB Circular A-21, "Cost Principles for Educational Institutions": the Office of Management and Budget circular that establishes principles for determining costs applicable to Federal grants, contracts and other sponsored agreements with educational institutions. To view this document in its entirety, got to URL address: http://www.whitehouse.gov/OMB/circulars/a021/a021.html OMB Circular A-110, "Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations": the Office of Management and Budget circular that sets forth standards for obtaining consistency and uniformity among Federal agencies in the administration of grants to and agreements with institutions of higher education, hospitals and other non-profit organizations. To view this document in its entirety, go to URL address: http://www.whitehouse.gov/OMB/circulars/a110/a110.html Acquisition cost of equipment: the net invoice unit price of the property including the cost of modifications, attachments, accessories or auxiliary apparatus necessary to make the property usable for the purpose for which it was acquired. Other charges, such as installation, transportation, taxes, duty, protective in-transit insurance, shall be included if these costs are listed on the same invoice. Spare or replacement parts, regardless of cost, will be classified as supplies. Base asset tag: the (asset tag number given to a) piece of equipment that serves as the main unit of a system with numbered components (see link tags) Cost sharing or matching: that portion of project or program costs not borne by the Federal Government. Equipment: tangible, non-expendable, personal property having an anticipated useful life of one year or more with a unit acquisition cost of $3,000 or greater. Operating system software is considered equipment. Excess property: property under the control of any Federal awarding agency that, as determined by the head thereof, is no longer required for its needs or the discharge of its responsibilities. Exempt property: 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. An example of exempt property authority is contained in the Federal Grant and Cooperative Agreement Act (31 U.S.C. 6306), for property acquired under an award to conduct basic or applied research by a non-profit institution of higher education or non-profit organization whose principal purpose is conducting scientific research. Federal share of equipment: that percentage of the cost, equipment and any improvement expenditures paid with Federal funds. Link (or sub-) asset tag: The (asset number given to a) piece of equipment attached as a component to a base asset tag. Examples are CPU (base) and monitor (link); microscope (base) and objective (link). Personal property: property of any kind except real property. Prior approval: written approval by an authorized official evidencing prior consent. Property: real property, equipment, intangible property and debt instruments. Real property: land, including land improvements, structures and appurtenances thereto, but excluding movable machinery and equipment. Supplies: goods acquired for the purpose of current operation. These items are consumable, perishable or short lived, and are subject to material change. Also included are items of a durable nature with an anticipated useful life of less than one year and with a unit acquisition cost of less than $3,000.
The following forms have been developed for use in recording property relocations and transactions and are included in this section:
Please access http://research.brown.edu/rschadmin/property_forms.php for electronic copies. |
Office of Sponsored Projects: Location: |