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Policy: VIII.E.2x2 (inactive)

Issued: October 31, 1996

Owner: Associate Comptroller, Financial Reporting and Analysis

Latest Revision: September 21, 2004

PROPERTY ACCOUNTING - PROPERTY INCLUDED AND EXCLUDED


**INACTIVE POLICY**

For Current Policies:
Policy Table of Contents

 

1.0 Purpose

This policy describes what property is included and excluded by property accounting.

2.0 Policy [Top]

In this policy the term "government property" is restricted to EQUIPMENT and MATERIAL purchased or constructed with contract/grant funds or furnished by the government under the terms of contract/grants, WHERE TITLE TO THE PROPERTY REMAINS WITH THE GOVERNMENT.

The following definitions apply:

GOVERNMENT PROPERTY means all property owned by or leased to the government or where title remains with the government under the terms of a contract/grant. Government Property includes both government-furnished property and contractor-acquired property as defined below:

GOVERNMENT-FURNISHED PROPERTY is property in the possession of, or acquired by, the government and later delivered or made available to the contractor.

CONTRACTOR-PURCHASED PROPERTY is property procured or provided by the contractor to perform a contract. The contractor is entitled to be reimbursed as a direct item of cost under the contract; title is vested with the University in most cases.

EQUIPMENT means property with an expected service life of one year or more, and a unit acquisition cost of $5,000 or more.

MATERIAL means property incorporated into or attached to an end item delivered under a contract or consumed in the performance of a contract. It includes, but is not limited to, raw and processed materials, parts, components, assemblies and small tools and supplies.

ACCESSORY ITEM means an item enhancing the operation of equipment but not essential for its operation. Accessory components (attachments) should be coded as equipment if the unit cost is $5,000 or more or if they are acquired with a base unit cost of $5,000 or more.

AUXILIARY ITEM means an item essential to the operation of the basic unit of equipment.

The following classes of government property are excluded from this policy:

REAL PROPERTY including land and land rights, ground improvements, utility distribution systems, buildings and structures acquired under a government contract with titles vested in the government under the contract terms.

t is the general policy of the University of Virginia that additions to plant and other expenditures for real property not be undertaken as part of a contract for research if the contract requires that title would vest outside of the University. Exceptions may be made under unusual conditions, where such additions are necessary for the research, and would not be required or desired at the University, if the contract were not in effect.

During initial planning, any project involving real property should be discussed with the Executive Vice President and Chief Financial Officer before any work is undertaken on the design, alteration, or construction of a building. If the work is to be charged to a sponsored research project, sponsor approval must be obtained as required by the contract.

See also:

Procedure 6-40, "Object of Expenditure Codes and Definitions," section "38000 Equipment."

3.0 Definitions [Top]

4.0 References [Top]

5.0 Approvals and Revisions [Top]

Previous version in effect from 10/31/96 to 9/21/04 available in policy archive.


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