The University of ArizonaThe University of Arizona
Financial Policies & ProceduresFinancial Policies & Procedures
 

7.60 Use of Government Owned & Funded Equipment

PURPOSE:

To provide direction to university departments on the use of government owned property and government funded, university titled property.

AUTHORITY:  

Powers and duties of the University President, ABOR Policy 3-801 and 3-802

Authority below applies ONLY to Federal Property (acquisition dollars or title):

  • 48 Code of Federal Regulations (CFR) Part 45
  • 2 Code of Federal Regulations (CFR) Part 200 (“Uniform Guidance”)

POLICY:

University departments are responsible for the control and use of government owned property and government funded university titled property in accordance with the terms of the contract, grant or agreement.

PROCEDURE:

I. GOVERNMENT OWNED EQUIPMENT:

RESPONSIBILITY

ACTION

CUSTODIAL DEPARTMENT

  1. Government owned property shall be used only for the term of the contract and purposes authorized in the contract.
  2. Use of government property on other activities shall be permissible, if authorized by the federal awarding agencies.
  3. Government owned property shall be kept physically separate from University owned property unless the following commingling requirements have been met.

    Property may be commingled when it is advantageous to the government, consistent with the contract’s authority to use the equipment, and the property is clearly identified and recorded as government property.

  4. For each item of government property with a value of $5,000 or more, maintain a log that includes a minimum level of usage below which retention needs to be analyzed and justified, and that provides for recording authorized and actual use.
  5. When government owned equipment becomes excess to the purposes of the contract, grant or agreement, notify the Sponsored Projects Services Property Administrator.
  6. Upon the completion or termination of a contract, grant or agreement with government owned property, the department shall perform a physical inventory of government owned property when requested by the Sponsored Projects Services Property Administrator.

SPS PROPERTY
ADMINISTRATOR

  1. When notified by a department that government owned property is excess to their needs, submit to the federal awarding agency a request for disposition instructions.
  2. At the close of the contract, grant, or agreement, submit to the federal awarding agency a physical inventory report on residual government owned property. It shall request disposition instructions with title be abandoned or donated to the University. The report shall disclose any discrepancies identified by the physical inventory and request relief of accountability, as applicable.

II. GOVERNMENT FUNDED/UNIVERSITY TITLED EQUIPMENT:

CUSTODIAL DEPARTMENT

  1. Equipment shall be used in the project or program of the contract, grant or agreement from which it was acquired as long as needed and without regard to continuing government support.
  2. The equipment title shall not be encumbered through other sponsor funds and property provisions without approval of the federal awarding agency.
  3. Provided there is no interference with its use on the original project or program of the contract, grant or agreement from which it was acquired, the equipment shall be available to other federal sponsored activities with the first preference to the original federal sponsor and the second preference to other federal sponsors.
  4. If property is excess to the original project or program, the equipment is authorized to be used on other federally sponsored activities with the first preference to the original federal sponsor and the second preference to other federal sponsors.
  5. The equipment can be used on non-federal activities, if permitted by the original project or program contract, grant or agreement.
  6. When the equipment is no longer needed, log onto Surplus Property’s website at https://uaauctions.arizona.edu/default.aspx and fill out the Disposal Requests.
  7. Provide or arrange for transport to Surplus Property. 

SURPLUS PROPERTY

  1. Sell or dispose of the equipment per Surplus Property disposal procedures.
  2. If the sale bid is $5,000 or more per unit and the property was acquired on a Sponsored Projects account (3000000 – 4999990), obtain approval for the sale from the Sponsored Projects Services Property Administrator. Prior federal sponsor approval for property disposal is required on some federally funded, University titled equipment when the sale (market value) price is $5,000 or more. 

SPS PROPERTY
ADMINISTRATOR

  1. When contracted by Surplus Property, verify if the sponsor is a federal agency and if the federal sponsor’s contract, grant or agreement has a property provision requiring federal sponsor approval before a disposal sale with a per unit price of $5,000 or more.
  2. If federal sponsor approval for the disposal is required, submit a disposition request to the federal sponsor. Inform Surplus Property upon receipt of instructions from the federal sponsor.