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

9.10 Deliverables to Sponsors

 

PURPOSE:

To provide direction to University departments on the procedure for identifying equipment acquired or produced for delivery to the government or other sponsor.

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:

All capital equipment being purchased or fabricated by the University for the contractual purpose of delivery to the government or other sponsor shall be assigned a University D-tag number. A single D-tag can be issued for a group of like items such as computers and their peripheral hardware, or a tag for each unique item being produced for the sponsor by the University.

Principal Investigators (P.I.) are responsible for obtaining D-tag(s) from the Property Management-FSO in advance of their purchases or fabrication for a sponsor. This D-tag number is to be included in the body of all expense and/or acquisition documents on the purchase of supplies, parts, equipment and shop services for acquisition or production of the deliverable item.

University A-tags shall not be assigned to capital equipment with a primary contractual purpose of delivery to the sponsor. A-tags are for the purpose of identifying capital in use at the University.

The cost (1) for purchased non-capital and capital equipment for delivery to a sponsor, and (2) for the fabrication of equipment for a sponsor, is the expense for the equipment, parts, supplies, shop services, and indirect for the items.  The expense object code to use for sponsor titled non-capital equipment is 5721.  The expense object codes to use for sponsor titled capital equipment are 5751 and 7760.

Government property reporting requirements identify the cost of capital equipment for delivery to the government as "Work-in-Progress" and not as a cost reportable as government owned equipment. The inclusion of deliverable equipment items as government owned equipment results in misleading reporting to the government and is a subject for a negative government audit finding and disapproval report on the University's Capital Asset Module (CAM).

REWORK: Equipment delivered to the government and subsequently returned for rework shall be assigned a new University D-tag with a property record created to assure control and accountability until it is returned to the government.

RECORDS: Property Management-FSO is responsible for creating a property record for each deliverable asset. The required elements of information are Tag Number, Description/Name, Class Number, Manufacturer-University Construction, Model or Design Number, Serial Number (usually none), Date, Department Number, Inventory Unit Number, Quantity, Unity of Measure, Building Number, Campus Number, Total Cost, Ownership/Title, Agency Name, Acquisition Method and Capitalization Type.

PROCEDURE:

RESPONSIBILITY

ACTION

PRINCIPAL INVESTIGATOR

  1. Identifies the number of equipment items to be produced for delivery to the sponsor and the number of D-tags needed to accurately classify the items as deliverables and to track their cost.
  2. In advance of expenditures, request in writing (e-mail) the number of needed D-tags from Property Management-FSO and provide a description for each D-tag.
  3. These D-tag number(s) are to be included in the body of all expense documents on the purchase of supplies, parts, equipment and shop services for acquisition or production of the deliverable item (s).

FSO - PROPERTY
MANAGEMENT

  1. Create a property record. The required elements of information are Tag Number, Description/Name, Class Number, Manufacturer-University Construction, Model or Design Number, Serial Number (usually none), Date, Department Number, Inventory Unit Number, Quantity, Unit of Measure, Building Number, Campus Number, Total Cost, Ownership/Title, Agency Name, Acquisition Method and Capitalization Type.
  2. Increase the recorded value of each D-tag asset as expense documents are received and paid.

SPS PROPERTY
ADMINISTRATOR

  1. Report the cumulative value of D-tags by Sponsored Project account as Work-in-Progress on the required property reports to the government. 

PRINCIPAL
INVESTIGATOR

  1. Upon deliver of the products to the sponsor, obtain a signed receipt for the sponsor and send a copy to the SPS Property Administrator.

SPS PROPERTY
ADMINISTRATOR

  1. Prepare a Property Record Change form to remove the item(s) from the Capital Asset Module (CAM) and send to the Property Management-FSO.

FSO - PROPERTY
MANAGEMENT

  1. Upon receipt of the Property Record Change form, remove the D-tagged property item(s) from the Capital Asset Module (CAM).