Transcript Contractor-Government Asset Acquisition Training

A Property Management Primer
Key Elements Affecting Equipment in Research
Presented by:
Ivonne Bachar, CPPM CF
Director, Property Mgmt. Office
Stanford University
[email protected]
Event:
NCURA – Regions VI and VII
Denver, CO
April 4-6, 2011
Page 1
Today’s Focal Points
Property Life Cycles – A Birds Eye Look
 Key Terms
 Regulatory Context
 Pre-Award
 Post Award
 Close-outs and Audits

Discussion Encouraged!
Page 2
Terms & Concepts
 Title
 Property
 Equipment
 Exempt Equipment
 Material
 Supplies
 Screening
 CAP
 GFP/GFM
Page 3
 Accountability
 Stewardship
 Capital
 Depreciation
Property Life Cycle
Rules & Business Needs
Phase I
Policies & Procedures
Phase II
Phase III
Getting the
Goods
Property
Control
Close-out and
Disposal
(Need thru Acquisition)
(In-use period)
(Once item is excess)
Tracking – Training – Awareness
Reporting – Reconciliation – Adjustments
Audits – Process Improvements
“Regulatory” Context
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Office of Management & Budget (OMB) Circulars
Federal Acquisition Regulations (FAR)
 Agency-Specific Supplements
State Regulations
Accounting Standards (GASB, GAAP, FASB)
IRS Guidelines
Export Controls
Other associated regulations (e.g. EPA)
Data Security
VCSs and ILPs
Agreement-specific Terms & Conditions
Page 5
Contractor Outcomes
(Property Mgmt. System Components)
FAR 52.245-1
“Contractors shall develop
property management plans
and systems, at the contract,
program, site or entity level
that reflect their efforts to
obtain best value”
Acquisition
Receipt
Records
Physical Inventory
Sub-contractor control
Reports
Utilization
Maintenance
Contract close-out

Imbedded Outcomes:
Identification, Storage, Movement, Disposal, Management, and Audit
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Regulatory Requirements
(Grants)

Code of Federal Regulation / OMB Circulars
 2 CFR 220 ( OMB A-21)
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Cost Principles for Educational Institutions
 2 CFR 215 (OMB A-110)
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Uniform Administrative Requirements for Grants and Cooperative
Agreements with Institutions of Higher Education, Hospitals, and other
Non-Profit Organizations
 A-87
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Cost Principles for State, Local, and Indian Tribal Governments
 A-123
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Management’s Responsibility for Internal Control
 A-133
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Audits of Institutions of Higher Education & Other Non-Profit
Institutions
Page 7
FAR for Contracts
Key Clauses:
52.245-1
52.245-1 Alternate II
>>Government Property
>>Property Plan
Alternate II > > > Preferred Option
Page 8
52.245-1, Alternate II
 Gives title to recipient for equipment under
$5,000, provided that the recipient obtained
CO’s approval before each acquisition.
 Gives title to recipient for equipment $5,000
or greater, with CO’s permission. (Note:
Sponsor holds title during life of contract)
Applies only to Contractor Acquired Property
Beware of Tax Implications
Page 9
Pre-Award
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Support SOW
Property Plan for contract proposals
Budget justifications
Identify methods of acquisition
Clearly define
Fabrications
Deliverables
Acceptance and delivery criteria
Negotiate appropriate clause
Page 10
Acquisition
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Approved budget vs. authority to purchase
Approvals & Screening
Financial & Reporting Categorization
Explicit listing of GFP needed
Import & Export
End of period purchases
Page 11
Methods of Acquisition and Lifecycle
Changes
Sponsor
Furnished
Or Loaned
University
(Contractor)
Acquired
• Purchases
• Fabrications
Lease
Donation
Rent
• Incoming Transfers
• Title Transfers
Equipment Title – Grants
Sponsored
GRANT
University
Title
Purchases
Taxable
(OMB Circulars)
Notes:
 In some cases granting agency may impose future use restrictions on
equipment
 In rare cases when equipment is furnished on a grant or if specified in the terms
of the grant, it is treated as sponsor owned.
 Some Federal Sponsors retain right to title, and may opt to reclaim to nonexempt property
Equipment Title – Contracts
<$5K University Title
F&A (aka IDC) Applies
FAR 52.245-1
(Alt. II)
Federal
Sponsored CONTRACT
(FAR Clause)
$5K> Sponsor Title
No F&A (aka IDC)
FAR 52.245-1
or per T&C
Sponsor Title
Non-Taxable
No F&A (aka IDC)
Notes:
 Equipment furnished by Sponsor, remains sponsor-owned
 Non-Federal, Sponsor-Owned equipment may be taxable (e.g. State of California)
 May request title transfer to Sponsor-owned property upon completion of award
Property Title
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Driven by agreement type and T&Cs
Affected by
How might this affect
Acquisition Method
Project Budgets or the
Proposal Process?
Source of funding
Title determines taxability
May change throughout life of agreement
Determines reporting
Limits disposition options
Page 15
Physical Inventory
•
Frequency dependent on approved policies and
procedures, State, or sponsor requirements
• OMB A-110 & A21
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Biennial – you define schedule
Verification & reconciliation
Report
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Timing, content, distribution
University financials vs. sponsors
Missing items
Remember
Property at
Subcontractor!
• FAR
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Periodically or per accepted procedures
• GASB
•
Annual, or based on asset category
Page 16
Transfers
(Incoming or Outgoing)
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Define items involved
 Award type & status
 Funding Source
 Method of acquisition
 Current title
 Retention requirements
 Cost or no-cost?
“It Depends” starts here...  Approvals
 Import-Export Issues
Subcontracting
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Ensure your flow down addresses AT LEAST:
 Confirm recipient’s property system
 Acquisition and Title
 Identification and Records
 Physical inventory
 Reports, including LDDT
 Use
 Disposition
 Risk and Liability
 Stewardship responsibilities
Page 18
Subcontracts
Title Issues, cont.

The Prime needs to be careful not to give the sub
greater title rights than the prime has been given;
consider:
 What type of instrument is the Prime?
 Is the sub an eligible recipient?
 Is the sub doing research or other professional services?
 Are there restrictions on the prime’s clear title?
 How is GP affected?
 At what point is title granted to sub?
Page 19
Reports
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Agency Specific
Management and Self Assessment
Internal Audit
Interim
 Financial and/or Accountability
Physical Inventory
Loss, Damage, Destruction, Theft
Corrective Action
Final Closeout
Include Sub-award info
Page 20
Other “Hot Spots”

International and Collaborative Agreements
 Self-Assessments
 Import - Export controls
 Fabrications
 Journal Transfers
 P-Card Purchases
 Indirect Cost implications
 Multi-disciplinary projects
 Multi-source funding
 Data Security
Page 21
It’s about integration
Rules and
Requirements
Assets and Tech
Infrastructure
Orgs, Policies,
Procedures,
People
Property
Professional
Skills
Page 22
Questions???
Concerns???
Thank you for being here today!!!
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