Property FAQs

Common Property Questions

Capital equipment is a commercially available equipment with:

  • A useful life of at least one year.
  • A total cost of $5,000or more.

A fabrication is a custom-built assembly of materials, non-consumable supplies, and hardware designed to meet a specific research need. Fabrications differ from standalone equipment due to original development or unique components.

Fabrications must meet these criteria to qualify as capital equipment:

  • A useful life of at least one year.
  • A total cost of $5,000 or more.
  • Essential and integral to the function of the entire piece of equipment, to the extent that removal of any one component would reduce the functionality of the whole piece of equipment.

Upgrades or refurbishments can be capitalized if they:

  • Significantly increase functionality or efficiency of existing equipment, allowing it to perform additional tasks that were not originally anticipated.
  • Extend the useful life by at least one year

  • Have a total cost of $5,000 or more.

    Example: A $1,000 refurbishment does not meet the criteria and will be categorized as an expense.

Standalone equipment: Tags are assigned by the Property Accounting Office (PAO) for fixed asset expenditures. Tags are mailed to the Department Property Manager who is responsible for affixing the tags to the equipment.

Fabrications: Tags are assigned when fabrication and Chartfield request forms are submitted to PAO. Tags are sent to the Department Property Manager once the fabrication is placed into service.

Government-titled property: Tags are assigned by the OCG Compliance team upon acceptance of the government property by the department.

Government-titled property:听The OCG Compliance team can advise on how to submit requests.

University-titled property requiring sponsor approval: If the department has not heard directly from the sponsor, the Department Research Administrator or PI coordinates with the OCG Compliance team. If the award terms require sponsor approval to buy University property, the Department Administrator or PI can work with their Contract or Grant Officer in OCG to request this approval.

The OCG Compliance team:

  • Reviews the terms and conditions for each new award and modification.
  • Lists any special conditions in OCG鈥檚 award database, including whether property purchased on the award will be Government-titled property and/or if sponsor prior approval is required.

FAR 52.245-1 Alt II is commonly seen in a contract to govern the use and management of the Government-titled property, but each agency or subaward agreements can cite their own specific terms governing property.

The Principal Investigator and the Fiscal Manager should review the Terms and Conditions pages in 91福利社 eRA when they receive both new awards and modifications to existing awards.

Contact the OCG Compliance team.听

The OCG Compliance Officer will:

  • Negotiate a bailment agreement or update the award records to reflect the University鈥檚 accountability for sponsor-furnished property.
  • Ensure that the bailment agreement includes the correct identifications, documentation, and insurances for property loaned to the University.

Important Note: Principal Investigators and department personnel cannot sign bailment or loan agreements on behalf of the University.听

Contact the OCG Compliance team to negotiate and execute a bailment agreement.

Important Note: University property cannot be loaned to an external entity without an approved bailment agreement.

A bailment agreement is a legal document that outlines the terms and conditions for loaning property between two entities when the title is not being transferred, including:

  • Loan duration and transfer process.
  • Insurance and other conditions.

Contact the听OCG Compliance teamto negotiate and finalize agreements.

An item can be:

  • A standalone purchase.
  • A fabrication or a system where components must work together to function to serve its purpose in research.

Example: A custom built vapor delivery system composed of gas cylinders, copper tubing, and brass fittings.听

For details, reference听Campus Controller鈥檚 Office Cost Principle: Purchase, Use and Disposition of Sponsored Project Equipment.

Yes, labor costs are allowable if an Internal Service Center (ISC) is established in the department, so that labor charges can be included on the fabrication SpeedType.

颁辞苍迟补肠迟听Budget and Fiscal Planning to set up the ISC. OCG and Campus Controller's Office (CCO) are currently discussing how to include labor costs when an ISC is not a feasible option.

This process, called cannibalization, may be allowed but requires sponsor approval for any item built using federal funds. Contact the听OCG Compliance team.