16.10 Property Control Requirements

PURPOSE:

To provide for the proper control of University and Sponsor owned equipment, including the government equipment, in the possession and control of a subcontractor.

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”)

OFFICE OF RESEARCH & CONTRACT ANALYSIS

1. When the subcontract is with a non-profit subcontractor and involves government funds, the subcontract shall contain a provision vesting title to the property in the non-profit subcontractor when permitted by the sponsor’s provisions.
2. If the sponsor’s provisions require the title to vest in the government, the subcontract shall contain provisions vesting title to subcontract funded property in the government and requiring the non-profit subcontractor to report subcontract funded property to the University.
3. When the subcontract is with a for-profit subcontractor and involves government funds, the subcontract shall contain provisions vesting title to property in the government and requiring the for-profit subcontractor to report subcontract funded property to the University.
4. When the subcontract is with a non-profit or for-profit subcontractor and does not involve government funds, the subcontract shall contain property title and property reporting provisions consistent with the non-government sponsor’s award requirements to the University.

OFFICE OF RESEARCH & CONTRACT ANALYSIS

5. When subcontractor acquired property is titled in the University or sponsor, including the government, provide the Sponsored Projects Services Property Administrator a copy of the Subcontract Data Sheet.
6. When the University provides the subcontractor with University, government or other sponsor owned property, the equipment shall be listed in the subcontract or a subcontract modification and a copy of the Subcontract Data Sheet shall be provided to Sponsored Projects Services Property Administrator.
7. As required by the prime contract, each subcontract shall contain specific provisions, as outlined below, regarding the subcontractor’s responsibility to control, protect, preserve, maintain and use all University and sponsor, including government owned equipment.
8. The subcontract shall provide that all actions of the subcontractor are subject to the terms of the prime contract related to the care, utilization, storage, movement, and disposition of University and sponsor owned property.
9. The subcontractor shall assume the responsibility and obligations of the University for the property while under the subcontractor’s control or use.
10. The subcontractor possessing or controlling sponsor owned property shall adequately care for and maintain that property and assure that it is used only as authorized in the subcontract.
11. The property and pertinent records of the subcontractor are to be held available for inspection by the University and sponsor at all times.
12. The subcontractor’s property inventory procedures are to meet the requirements of the University and the sponsor and are subject to review by the University. The subcontractor shall provide either a copy of their system approval documentation from the government or a certification letter from the subcontractor’s audit/accounting firm.
13. The subcontractor shall investigate and report within 10 days of discovery all instances of loss, damage or destruction to University and sponsor, including government, owned property in the possession of the subcontractor.
14. Subcontractors are to provide an annual inventory of University and sponsor-owned equipment in their possession as of August 31st . The subcontractor’s annual inventory report is to be received by the University on or before September 30th.
15. When the subcontractor acquires property to be titled in the sponsor, the subcontractor shall provide to the subcontract’s Principle Investigator a property acquisition report. The report is to be submitted within 30 day of the subcontractor’s receipt of the property and is to include sufficient detail for the property to be entered into the University’s Capital Asset Module (CAM). The property acquisition report is to accompany the invoice that includes the reimbursement for the property purchased.
16. Property detail to be provided by the subcontractor shall include description, manufacturer name, model number, serial number, acquisition cost, order date, receiving date and University subcontract/purchase order number.