Equipment and Real Property Management
Per OMB A-110 .34 (a), and unless otherwise specified in the applicable sponsored award terms and conditions, title to equipment acquired by the University with federal awards vests with the University. Equipment records shall be maintained; a physical inventory of equipment shall be taken at time of purchase and at least once every two years and reconciled to the equipment records; an appropriate control system shall be used to safeguard equipment; and equipment shall be adequately maintained. When equipment with a current per unit fair market value of $5,000 or more is no longer needed for a federal program, it may be retained or sold, with the federal agency having a right to a proportionate (percent of federal participation in the cost of the original project) amount of the current fair market value. With written approval from the federal awarding agency, equipment may be used in other federally sponsored projects or programs that have purposes consistent with those authorized for support by the federal awarding agency. The University may not dispose of or encumber the equipment without the prior consent of the awarding agency.
Grant-Acquired Equipment Records and Inventory Management
Notre Dame de Namur University Office of Finance and Administration is responsible for ensuring that adequate accountability systems are established and administered for federal grant-acquired equipment. The primary responsibility for the physical custody and maintenance of University equipment rests with the appropriate authority (Project Director, Chair, Dean, or Director) in the department within which the equipment is being utilized. Each Project Director has ultimate custodial responsibility for all grant-acquired equipment and should use adequate safeguards to protect and preserve such equipment.
Serialized equipment is assigned an NDNU Inventory Tag Number identified with a separate and unique prefix for each grant/sponsored project. For example, equipment acquired under the Developing Hispanic-Serving Institutions (HSI) Program STEM Grant use the prefix, “STEM” and equipment acquired under the Developing Hispanic-Serving Institutions (HSI) Program Title V, Part A Grant use the prefix “PART A.” Non-serialized equipment with a per-unit cost of less than $250.00 is not assigned an NDNU Inventory Tag Number.
A detailed record of all federal grant-acquired equipment is held by the Financial Analyst, NDNU Office of Finance and Administration and is maintained using the following procedures:
- Obtain copies of all paid invoices for federal grant-acquired equipment from Accounts Payable, Office of Finance and Administration.
- Record all procured equipment in the Federal Grant-Acquired Equipment spreadsheet and include the following information:
a. Description & Model Number
b. Manufacturer/Brand Name
c. Serial # (Part # if non-serialized item)
d. Physical location of equipment
e. Person(s) with authority over equipment
f. Date of acquisition
g. Vendor Name/ID#
i. Unit Cost
j. Total Cost
k. Percent of federal participation in cost
l. Date of disposition
m. NDNU inventory Tag #
n. Any applicable notes
o. Source (ex: Dept. of Education HSI STEM Grant)
- Assign all serialized equipment an NDNU Inventory Tag Number, (ex: STEM-0019)
- Forward the Federal Grant-Acquired Equipment spreadsheet to the Office of Information Technology.
- The Office of Information Technology will coordinate equipment tagging of the serialized inventory with the supplied NDNU Tag number and will confirm the physical location and serial numbers of such equipment.
A physical inventory of equipment is to be conducted at least once every two years and reconciled to the federal grant-acquired equipment records. It is the responsibility of the Project Director(s) or his/her designee to conduct the biennial physical inventory of federal grant-acquired equipment. It is the responsibility of the Financial Analyst, Office of Finance and Administration to reconcile this physical inventory record to the federal grant-acquired equipment records. Any discrepancies between the physical inventory and the equipment records shall be investigated to determine the cause of the discrepancy. Discrepancies discovered during the physical inventory process must be properly documented and reported to the appropriate Project Director(s).
The University employee(s) conducting the physical inventory shall use the Grant-Acquired Equipment Physical Inventory Form to document all necessary information. Once complete, this form must be certified by the appropriate Project Director and submitted to the Financial Analyst, Office of Finance and Administration.
Departments utilizing grant-acquired equipment are required to assist the Project Director(s), the Office of Information Technology, and any applicable grant administrators in the taking of a thorough and complete physical inventory of all grant-acquired equipment in their possession.
The physical inventory shall not be performed by the same employee(s) who are responsible for physical custody of the inventory; nor should the physical inventory be performed by the employee(s) who maintain/reconcile the accounting records.
All equipment purchased with federal funds must be necessary and reasonable for proper and efficient accomplishment of project objectives. This equipment is provided for specific use and shall be used in the project for which it was acquired. The degree of utilization must justify retention. The department using such equipment shall provide the care necessary to maintain the equipment in good operating condition and in order that the most useful life is secured. Notification of idle equipment must be given to the sponsoring agency. The Project Director(s) are responsible for proper use, maintenance and security of all assigned property.
Loss, Damage, or Destruction
University departments and the overseeing Project Director(s) must have appropriate safeguards in place to prevent loss, damage, and/or theft of equipment. In the event that equipment is lost, damaged, or stolen, it must be immediately reported to the Department Chair, Director, or Dean, the Project Director(s), and in the case of theft, the Office of Public Safety. The department must complete a written report outlining the description of the missing or damaged items, serial number, date and circumstances for the loss, building and room number, steps taken to recover the property, and any other relevant information. The University is required to promptly notify the Program Officer of the sponsoring agency of the theft.
Disposition of Equipment
When federal grant-acquired equipment is no longer needed or usable due to damage, loss, destruction, or deployment, the Project Director is to notify the Program Officer at the sponsoring agency as soon as possible. The Program Officer will provide information on how the Project Director or designee might request disposition instructions from the agency, or try to relocate the equipment to another department on campus with written agency approval. Written authority from the sponsoring agency must be received prior to the movement or disposition of government property. It is a contractual commitment that federal equipment is in active use while in custody of a campus department and that disposal action is taken in a timely manner. When the terms of the award permit the University to retain the net proceeds from the sale of University-owned equipment no longer needed, the property may be disposed of and the proceeds distributed. In general, net proceeds may be retained by the department releasing the property. These proceeds are considered program income if the property was purchased under a federal grant.
System of Accounting
The University maintains a separate and unique general ledger accounting code structure for each grant/sponsored project. Revenues and expenditures are recorded to these codes and maintained separately from other University transactions. All transactions are recorded in accordance with Generally Accepted Accounting Principles (GAAP) as defined by the Federal Accounting Standards Advisory Board (FASAB).