Equipment Workshop Seyed Mohammadi, Director, Federal Cost - - PowerPoint PPT Presentation
Equipment Workshop Seyed Mohammadi, Director, Federal Cost Accounting, University Finance Trudy Riley, Assistant Vice Provost, Research Administration George Walueff, Associate Director, Procurement What is Equipment? Personal property
Seyed Mohammadi, Director, Federal Cost Accounting, University Finance Trudy Riley, Assistant Vice Provost, Research Administration George Walueff, Associate Director, Procurement
Personal property Tangible Movable Acquisition cost of $5k or more Functional for its intended use in & of itself Useful life of 2 or more years
An item intended to be used with an equipment Increases/enhances the productivity/utility of the equipment When purchased with the equipment, the combined system with be considered one equipment If purchased at a later date and attached to the equipment, the cost is added to the cost of equipment only if the cost exceeds $2,000
Material purchased for the purpose of building, constructing or assembling of equipment that will be so identified upon completion. Capitalization of equipment
Items that are necessary to restore an item of equipment to a fully functional status Not considered equipment in and of themselves Cost of the part may be added to the equipment's adjusted cost if:
The equipment cost include all the following where such costs can be identified:
apparatus necessary to make it useful for the purpose for which it was acquired
stage
Budgeting equipment
Budget justification When to purchase equipment
Equipment defined as items with cost of $5,000 or more and useful life of
Per OMB Circular A21, depreciation is the methodology to compensate institutions for use of their equipment Equipment purchased with federal funds or donated by the federal government is excluded for F&A calculation and no recovery is allowed No recovery is allowed for equipment used as cost share
Auditors will use a sample of equipment to be verified on site visit Auditors will verify the location of equipment indicated on the survey If significant discrepancies are identified, the depreciation will be allocated on a building-by-building or department-by-department basis
To be Considered at time of Grant Proposal Funding Source(s)
Budget may Include the Following (as defined in CFR)
Compliance with Federal and Institutional Policies & Procedures Promotes: Cost Efficiency Accountability Integrity Non-Compliance Promotes: Audit Findings Disallowance Special Conditions Jeopardize Future Funding Tarnished Reputation
Quality Product at a Competitive Price = Value Eliminate Actual or Apparent Conflict of Interest Eliminate Waste
Eliminate Bias and Inappropriate Influences
Equipment Solicitation Process by Procurement Services
Complete, Unbiased Specifications Competitive Environment Include Disadvantaged Businesses Response Evaluation (in consultation with PI)
Verify if Vendor is Disbarred, Suspended or Excluded
Purchasing Equipment
Requisition/Vendor Payment Request
Equipment Line
Separate Line(s)
Replacement or Upgrade of Existing Equipment Include Tag Number on Requisition
Who owns the equipment/property? Why is this important? How do you know who owns it? Reporting requirements Tracking equipment location Equipment disposition
Procurement Policies
(http://www.udel.edu/ExecVP/policies/procurement_and_auxiliary_services/5- 10.html)
(http://www.udel.edu/ExecVP/policies/procurement_and_auxiliary_services/5- 21.html)
Research Office Policies & Information
(http://www.udel.edu/research/preparing/equipcostshare.html)
Policy Number 6-8 (http://www.udel.edu/ExecVP/policies/research/6-08.html)
http://www.udel.edu/research 16