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Policy: VIII.E.4

Issued: May 11, 1999

Owner: Office of the University Comptroller

Latest Revision: November 28, 2007

FIXED ASSETS ACCOUNTING (PROPERTY) - MAINTENANCE OF EQUIPMENT RECORDS

1.0 Purpose

This policy describes how equipment records should be and are maintained.

2.0 Policy [Top]

2.1 Equipment Items Costing $5,000 or More
The Fixed Assets Accounting Group (Property) of Financial Analysis prepares and maintains individual item records within its Oracle Fixed Assets Sub-Ledger System, showing various information for each equipment item. Each organization's property administrator as well as ultimately the Chair are responsible for notifying the Fixed Assets Accounting Group (Property) of all changes regarding property.

See also:  Procedure 10-1, "Preparation of Inventory Change Request"

2.2 Government Furnished, Contract Purchased, or Government Excess Property
Upon receipt of Government furnished/excess property where title remains with the Government , the Principal Investigator (PI) has the responsibility to maintain property records for these items but also must submit a copy of the support property documents to both the OSP Group and the Fixed Assets Accounting Group for their respective records.

2.3 Sensitive Property
Some property items are Sensitive property (titled to the Government or the Sponsoring Agency) includes such items as precious metals, watches, cameras, small instruments and tools, and other valuable property. For such property, the PI, coupled with the appropriate organization will maintain custodial records identifying individual possession, and will provide secure storage for these items. The PI may be required by the Sponsoring Agency to periodically report any such property.

2.4 Maintenance
The organization is responsible for the proper care, maintenance and use of its property. That property may consist of UVA-owned capital equipment but may also include Government-owned or Sponsor-owned equipment/property

Each PI, coupled with his/her organization are jointly responsible for maintaining Government or Sponsored-owned property 

Maintenance includes repair, replacement, rehabilitation, and correction of defects in compliance with manufacturer's instructions. All repairs and servicing will be entered in the equipment maintenance records. Note:  Maintenance DOES NOT include the cannibalization of existing equipment to maintain other equipment without proper approval. That approval consists of an approved P-1 form for UVA-owned capital equipment.  In the case of Government-Owned or Sponsored-owned property, prior approval from that agency must be secured prior to destroying any such property.

See also:  Procedure 8-52, "Preparation of Maintenance and Use Records of U. S. Government-Owned Property"

2.5 Use
The PI is responsible for assuring Government-owned or Sponsored-owned property is used ONLY for the specific contract/grant under which it was acquired and for only authorized purposes. A utilization record will be maintained for each item of industrial plant equipment. Such records should be available in a plastic envelope attached to each equipment item.

See also:  Procedure 8-52, "Preparation of Maintenance and Use Records of U. S. Government-Owned Property"

2.6 Identification
All UVA-owned assets (over $5K unit cost)  or ETF equipment (over $500 unit cost) will have asset tags affixed by the Fixed Assets Accounting Group to the main body of the item where they are conspicuous and readily visible without having to move the item. A location close to the manufacturer's identification plate or label is preferred (if highly visible for scanning).

All Government-owned equipment over $5K will be tagged with both UVA asset tags and “Property of US Government stickers” .All Government-furnished equipment will have a “Property of US Government sticker” affixed to them. These asset numbers and data will then be entered into the Oracle Fixed Assets Sub-Ledger System.

Sponsor-owned equipment may also require Sponsor tags be assigned and affixed to the equipment as well (i.e, JPL – Jet Propulsion Labs subcontractor for NASA requires their tags be placed on equipment). 
Government ID tags are to be  removed if title is transferred to another University or if disposed by sale, scrap, or donation. In the case that the equipment is processed by DynTek, DynTek will remove all tags and submit tags to the UVA Fixed Assets Accounting Group. If equipment is surplus, Fixed Assets Accounting Group will remove tags.

Government property and material should be segregated from University material. Since commingling cannot always be prevented, it is important that government property be clearly identified and controlled by appropriate records.

2.7 Reporting
For Government-owned property, Federal regulations require the annual submission of DD (DoD) Form 1662 for all DoD contracts and NASA Form 1018 for NASA contracts. These forms are to reflect the equipment inventory cost values (not detailed listing of equipment) recorded through September 30 (the end of the federal fiscal year), and are due to ONR Atlanta, NASA, and DOD no later than October 31 of the same year. Additionally, there are many other Governmental agencies as well as other sponsors who maintain ownership of any equipment purchased by UVA or furnished to UVA and require similar reports.

Federal regulations also require the submission of final, or close- out inventories, including a final DD Form 1662 or final NASA Form 1018 for the DOD and NASA contracts respectively. These close-out inventories are due to the Government sponsoring agency within 90 days of the grant or contract expiration date. OSP must notify the Fixed Assets Accounting Group promptly upon a contract/grant expiration where a property report is required.
The Fixed Assets Accounting Group will be responsible for preparing and submitting both the annual and final reports.

2.8 Vehicles
The Government requires the University to provide third party liability insurance coverage for all government vehicles furnished. Departments must notify the Offices of Risk Management and the Fixed Assets Accounting Group immediately when acquiring a government vehicle so that appropriate insurance coverage may be provided.

3.0 Definitions [Top]

4.0 References [Top]

5.0 Approvals and Revisions [Top]

Previous version in effect from 5/11/99 to 9/21/04 available in policy archive.

Previous version in effect from 9/22/04 to 4/20/05 available in policy archive.

Previous version in effect from 4/21/05 to 11/27/07 available in policy archive.


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