PROCEDURE CR2055 - PRE-ACQUISITION SCREENING OF FEDERALLY-FUNDED CAPTIAL EQUIPMENT
Systems and Procedures
A Division of The Corporate Controller's Office
IN

Procedure CR2055 - Pre-Acquisition Screening of Federally-Funded Captial Equipment

Office of the Corporate Controller

Policy Steward facilitating procedure: Associate Vice President for Finance and Corporate Controller

Table of Contents:


GENERAL:

Federal regulations have required that federal funds not be used to acquire certain capital equipment unless it is first determined, through a pre-acquisition screening process, that similar equipment is not available for use; reference 2 CFR OMB part 200 Uniform Guidance 200.318 . The federal government's rationale for these regulations is that shared use of existing equipment promotes availability of equipment on college and university campuses, reduces unnecessary duplication of equipment, and consequently, frees up federal funds to be used in other categories of expenditure or for other projects.

This procedure requires that a screening for availability be undertaken prior to the purchase of federally-funded equipment items costing $50,000 or more. The screening will be confined to the College and/or administrative unit level for equipment items costing at least $50,000 but less than $100,000. The screening will be extended University-wide for equipment items costing $100,000 or more.

Should the screening procedure fail to identify like, or substantially similar, available equipment, the procurement file will be documented appropriately and the requisition(s) will be processed. However, should the screening procedure identify like, or substantially similar, equipment which is represented on the inventory as available for shared use or reassignment to a new project, it will be necessary for the principal investigator to inspect the equipment. Outcomes of the inspection could be: (1) a certification from the principal investigator that the equipment is not satisfactory for his or her use (in which event the procurement file will be documented and the requisition(s) will be processed), or (2) a signed shared-use agreement or transfer of equipment in the event the identified equipment is satisfactory for the principal investigator's needs and available for shared use or reassignment. Forms for documenting these actions are discussed in this procedure.

PROCEDURE:

SCREENING FOR AVAILABILITY

Purchase Orders and eBuy+ requisitions (here after referred to as Purchase Orders) received for processing by Financial Officers for federally-funded capital equipment purchases of $50,000 or more must show evidence of having been screened against the appropriate inventory system, according to the dollar limits cited below, to determine if similar equipment already exists. The search will be documented by a Federally-Funded Capital Equipment Pre-Acquisition Screening Certification appropriately signed in accordance with the requirements set forth below. Purchase Orders not accompanied by a completed Certification Form cannot be processed by the Financial Officer.

Pre-Acquisition screening for equipment costing at least $50,000 but less than $100,000 will be conducted at the College and/or administrative unit level. Property Inventory may be contacted to assist in the screening process at this level if deemed necessary. The results of the search will be noted on the Federally-Funded Capital Equipment Pre-Acquisition Screening Certification. The budget executive shall sign the Certification Form attesting to the results. A photocopy of the completed Certification Form should be placed in the department's procurement file. (A photocopy of the Purchase Order may also be placed in the file if the budget executive chooses to do so.)

Pre-Acquisition screening for equipment costing $100,000 or more will be conducted first at the College and/or administrative unit level by the respective budget executive. The results of the search for existing equipment at this level will be noted on the Certification Form and signed by the budget executive. Both the Certification Form and the Purchase Order are forwarded to the Controller, regardless of the outcome of the search by the budget executive for equipment costing $100,000 or more.

Purchase Orders for equipment costing $100,000 or more, accompanied by a Federally-Funded Capital Equipment Pre-Acquisition Screening Certification will be screened by the Controller (or designee) through University-wide Property Inventory records if the search was unsuccessful at the College and/or administrative unit inventory level. The Controller (or designee) will certify to the search by signing the Certification Form.

UNSUCCESSFUL SEARCH

If no similar equipment is located to satisfy the principal investigators needs, the Certification Form is attached to the Purchase Order and both are forwarded to the respective Financial Officer for normal processing.

SUCCESSFUL SEARCH

If similar equipment is located, at either the College and/or administrative unit level or as a result of the University-wide search, the principal investigator will inspect the existing equipment to determine if it is satisfactory to meet his/her needs. If the equipment is deemed acceptable, a determination must also be made whether the equipment is available for shared use or able to be reassigned to the new project. Copies of the Certification Form are forwarded to both the proposed borrower and lender/custodian of the equipment for preparation of a Shared-Use Agreement. The original Certification Form is forwarded to Property Inventory in order to maintain accurate inventory records.

Individuals involved in the preparation and/or approval of the Purchase Order prior to the point of cancellation should be notified that the order has been canceled since existing equipment is available.

Shared Use of Equipment

If it is determined that apparently similar equipment is available for shared use, a Capital Equipment Shared-Use Agreement must be prepared and completed by the proposed borrower and lender/custodian. The purpose of this agreement is to ensure understanding of the terms and conditions according to which the equipment is to be shared. Any subsequent revisions to this agreement should be documented and approved by all parties involved. Copies of the Shared-Use Agreement (and any such revisions) should be maintained by both the borrower and lender. The original Agreement should be forwarded to Property Inventory in order to maintain accurate inventory records.

Per Uniform Guidance 2 CFR 200.313 : Equipment shared use should be allowed in the following order:

Reassignment of Equipment

If it is determined that the apparently similar equipment can be reassigned to the new project, a Report of Disposition or Permanent Transfer of Tangible Assets should be completed. If the period of reassignment/relocation will be for less than one year, a Report of Temporary Relocation of Tangible Assets should be completed. Both forms and instructions are available on GURU.

AUDIT COORDINATION - FINANCIAL AND PROCEDURAL

The Financial Officer is responsible for ensuring that procedures pertaining to the accountability and safeguarding of all cash receipts, cash funds, and other assets are established and followed in accordance with approved University policies and procedures. Regular audits relating to advances, cash, travel, equipment accountability, and other expenditures provide a means to protect University assets. The Financial Officer is responsible for working with Internal Audit when audits are being performed in the administrative area, as well as performing an annual audit that is submitted to the Assistant Controller.

RECORD RETENTION, DISPOSITION AND DESTRUCTION:

Record retention must be managed in accordance with Policy AD35 - University Archives and Records Management , and records schedules approved by the Records Management Advisory Committee, Office of General Counsel, and Office of the President. These retention requirements are the University's retention criteria, either derived or based upon federal, state, and local statute or regulations, industry standards, and business needs. Retention beyond recommended time periods require justifiable reasons and warrant review by the Records Management Officer or designee. All documents must be maintained in such a manner so as to provide ease of access for review, and to provide a suitable audit trail for all transactions.

Upon expiration of a stated period of time, documents must be discarded and/or destroyed, unless permission granted by Records Management Officer or designee to retain the records. Archival records created more than 20 years prior to the current date must be reviewed before destruction. Units should also contact the University Archivist before discarding any document which may be of permanent or historical value to the University. To safeguard the privacy of individuals, documents that contain salary information, personally identifiable information (PII), or student records must also be shredded. See Policy AD53 - Privacy Policy and AD22 - Health Insurance Portability and Accountability Act for additional information regarding privacy and the protection of an individual's personal information. For documents that must be shredded, departments may arrange for Blue Bag service by contacting the Blue/White Shredding Program of the Office of Physical Plant. Exceptions to the practice are as follows:

Additional questions may be directed to the University Archivist or the Records Management Officer.

EXHIBITS:

CONTACT INFORMATION:

For questions, additional detail, or to request changes to this procedures, please contact the Associate Controller.

CROSS REFERENCES:


Procedure Status:

Date Approved: 05/31/15

Most recent changes:

Revision History (and effective dates:)