Transcript ALLOWABLE EXPENDITURES

ALLOWABLE
EXPENDITURES
Property Control
Inventory
Edgar & OMB A-87
Title I Inventory of Real Property,
Vehicles, & Equipment
Real Property
• USE--Real property is used for the
originally authorized purposes as long as
needed for those purposes.
• DISPOSITION--Real property is disposed
of when it is no longer needed for the
originally authorized purpose.
Real Property (continued)
• RETENTION OF TITLE-- The title is
retained after compensating the awarding
agency. The amount paid to the awarding
agency is the cost of the original purchase
plus the fair market value.
• SALE OF PROPERTY--The awarding
agency is compensated for the sale of
property.
Equipment
• USE--Equipment shall be used as long as
needed. When no longer needed, equipment
may be used in other activities currently or
previously supported by a Federal agency.
Equipment (continued)
• MANAGEMENT REQUIREMENTS-Property records must be maintained with…
• identification number
• who holds the title
• cost of the property
• percentage of federal participation in the
cost & ultimate disposition data including
date of disposal and sale price
Equipment--MANAGEMENT
REQUIREMENTS (Continued)
• A physical inventory must be taken and
results reconciled every two years.
• A control system shall ensure adequate
safeguards to prevent loss, damage, or theft,
which, if they occur, shall be investigated.
• Adequate maintenance procedures must
keep the property in good condition.
Equipment (continued)
• DISPOSITION--When no longer needed for
the original project or program or other
activities currently or previously supported
by a Federal agency, equipment may be
disposed of by the grantee or subgrantee.
• Equipment shall be managed in accordance
with Federal agency rules and submitted on
an annual inventory.
Copyrights
• The Federal awarding agency reserves a
royalty-free irrevocable license to publish
and use, and to authorize for others’ use, the
copyright in any work developed under a
grant, subgrant, or contract under a grant or
subgrant.
SUPPLIES VS. EQUIPMENT
• Two approaches to distinguish
• supplies from equipment-• (1) Adopt a predetermined list of items,
classifying each entry as either a supply or
an item of equipment, or
• (2) Adopt a set of criteria to be used in
determining classification of items.
Supplies vs. Equipment
(continued)
• Set of Criteria--One would consider an item
equipment if it meets these criteria-• (1) It lasts more than a year.
• (2) It is nonexpendable; i.e., if damaged or
worn out, it can be repaired without being
replaced.
Supplies vs. Equipment
(Continued)
• (3) It does not lose its identity through
fabrication or incorporation into a different
or more complex unit.
• (4) It exceeds $300.00 in value.
Inventory
• Real Property--Land including its cost
• Buildings--Permanent, including type of structure,
location, date acquired, and cost (no longer an an
allowable cost under the 1994 IASA, Title I
Reauthorization)
• Remodeling--Including description, location,
acquisition date, and cost
Inventory (continued)
• Equipment--including temporary buildings,
location, description, date acquired, & cost
• Vehicles--including year, make, model, date
acquired, & cost
• Other items--including type of property,
quantity, and for state use only
• Intangible personal property--including
description of invention and copyright #
Selected Items of Cost
• Compensation for personnel services
including reasonableness, unallowable
costs, and support of salaries and wages-• (1) Such compensation is allowable to the
extent that the services satisfy specific
requirements.
• (2) Compensation must be reasonable for
services rendered.
Selected Items of Cost
(continued)
• Reasonableness--compensation must be
consistent with that paid for similar work in
other activities in the governmental unit.
• Compensation must be comparable to that
paid for similar work in the labor market.
Selected Items of Cost
(continued)
• Charges for salaries of employees who work
solely on a single Federal award or cost
objective must be supported by periodic
certifications that they worked solely on
that program.
• Certifications must be prepared at least
semiannually.
Selected Items of Cost
(continued)
• Personnel activity reports must document
the work of employees who work on
multiple activities or cost objectives.
• Such reports must reflect an after-the-fact
distribution of the actual activity of each
employee, must account for the total
activity, must be prepared monthly, and
must be signed by the employee.