9.10 Deliverables to Sponsors | Financial Policies

Page last updated

03/01/2022

PURPOSE:

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

SOURCE:

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):

Government Property, 48 C.F.R. § 45
Government Property, 48 C.F.R. § 52.245-1
Government Property, 48 C.F.R. § 245
Government Property, 48 C.F.R. § 1852.245
Uniform Guidance, 2 C.F.R. § 200

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 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 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	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. In advance of expenditures, request in writing (e-mail) the number of needed D-tags from Property Management and provide a description for each D-tag. 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).
PROPERTY MANAGEMENT	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. Increase the recorded value of each D-tag asset as expense documents are received and paid.
SPS PROPERTY ADMINISTRATOR	Report the cumulative value of D-tags by Sponsored Projects Services account as Work-in-Progress on the required property reports to the government.
PRINCIPAL INVESTIGATOR	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	Prepare a Property Record Change form to remove the item(s) from the Capital Asset Module (CAM) and send to the Property Management.
PROPERTY MANAGEMENT	Upon receipt of the Property Record Change form, remove the D-tagged property item(s) from the Capital Asset Module (CAM).