Table of Contents Announcements FY 1998-99 History of Equipment Threshold Implementation News from Equipment Management Events Articles UCLA Dollar $aver Property Management at UCLA Archives FY 1997-1998 News Articles	2	Announcements  History of Equipment Threshold Implementation. DEANS, DIRECTORS, DEPARTMENT CHAIRS, AND ADMINISTRATIVE OFFICERS RE: Equipment Threshold Implementation When Vice Chancellors Peter Blackman and Kumar Patel wrote to you about forthcoming changes in the definition of equipment, they indicated that additional guidance would be provided. I am writing now to follow up on their March 2, 1998, Deans, Directors memo. Until June 30, 1999, the University of California will continue to use a minimum dollar threshold of $500 in the definition of equipment. Beginning July 1, 1999, the University will define equipment as articles of non-expendable tangible personal property having a useful life of more than one year, and an acquisition cost of $1,500 or more. This definition will be used for capitalization, inventory, and the assessment and calculation of indirect costs on grants and contracts. The one year delay in application of the new definition is designed to allow the research community to prepare or revise proposals and budgets to reflect the new threshold. The following implementation plans will be effective during FY 1998-99: Items with an acquisition cost of less than $1,500 will continue to be acquired as equipment and entered into the purchasing and financial systems using object codes 9110 - 9116 until July 1, 1999. Items with an acquisition cost of less than $1,500 purchased on contract and grant funds prior to June 30, 1999 will continue to be treated as equipment items and overhead will not be applied. However, indirect costs will be applied to items costing less than $1,500 received on or after July 1, 1999. Contact Ann Pollack in Sponsored Research at extension 40387 or via email at apollack@resadmin.ucla.edu for more information. Beginning July 1, 1998, annual physical verification of all non-government-owned items with an acquisition cost of less than $1,500 is not required. Items of furniture and fixtures, with the exception of systems furniture, are to be treated as equipment if the items meet the revised definition. Maintenance of non-capital items (e.g., equipment tagging, entry of room number, serial number or condition code) is necessary and will be the responsibility of the department when required by the terms and conditions of sponsored awards. A non-capital version of the University's property management system will be made available upon request for use by campus departments to track and maintain records of non-capital, theft-sensitive departmental assets. The responsibility for maintaining appropriate records of non-capital departmental assets rests with the campus department. Campus departments should ensure that all areas containing departmental assets are kept locked after business hours, or at other times when not in use. The University's basic insurance program has a $5,000 deductible for unforced entry and $1,000 for forced entry. Installation of tie-down cables or other theft deterrent measures will meet the forced entry test for the small amount invested in the deterrent tie-down. Contact the Office of Insurance and Risk Management for more information about the University's insurance programs at extension 46948.   For more information about the changes to the University's definition of equipment, please review the UCOP Implementation Plan Q & A document online at the UCLA Equipment Management web site http://www.equipment.ucla.edu or contact Dianne Talmadge, UCLA Property Administrator at extension 46063 or via email at dtalmadg@finance.ucla.edu.   Susan K. Abeles Assistant Vice Chancellor Finance   back to top
		News from Equipment Management 1998 Federal Audit Results   Introduction The Office of Naval Research (ONR), University Business Affairs, San Diego performed a Property Control Systems Analysis (PCSA) at UCLA. The objective of the PCSA was to determine whether the University's property control system provides satisfactory control, protection, preservation and maintenance of all Government property in accordance with Federal and all applicable agency and contractual requirements. Scope of the Audit UCLA's PCSA was performed April 27 thru May 2, 1998. The PCSA included a review and analysis of the policy and implementation of the property control system, as well as, discussions with operational and academic personnel. The PCSA is performed at UCLA because as of April 2, 1998 we reported DOD and NASA property valued at $1,272,095 accountable in our property control system. From this universe of 147 items, two samples of 25 were randomly selected to test the functional areas of Identification, Records, Movement, Storage, Physical Inventories, Reports, Utilization, and maintenance. During the review, an additional 10 items were selected from awards beginning with NAS7. Disposition and Contract Property Closeout were tested by reviewing 8 expired awards. Ten purchase orders of equipment purchased with Federal funds during the period January 1, 1997 to December 31, 1997 were tested for the functional areas of Acquisition and Receiving. Ten items were selected during the physical sighting process and verified to the inventory records. On May 1, 1998, an Exit Conference was conducted. The preliminary results of the PCSA were discussed to ensure agreement regarding the factual results of the review, and to provide relevant comment. The University agreed with the factual results of the review.   back to top Audit Findings & Recommendations Summary of the System Analysis UCLA's property control system is judged to be satisfactory to provide control, protection, preservation and maintenance of all Government property. This conclusion was based on 12 satisfactory areas of the 15 functional areas reviewed during the analysis. Prior Findings & Recommendations The previous PCSA was conducted in May 1996 at which time, there were two findings reported, Dispositions and Records. These findings were closed by the ONR Property Administrator on January 13, 1998. 1998 Findings & Recommendations ONR cited three findings related to: Subcontractor Control UCLA has no current subcontractor control process in place to identify contractor acquired equipment with federal funds. Equipment Management is unaware of property acquired as a result of a subcontract. UCLA has agreed to ensure that a mechanism is in place to identify contractor acquired or government furnished equipment in subcontract agreements. UCLA will ensure that appropriate contract provisions are flowed down and that the subcontractor has an approved property control system.  Disposition This is a repeat finding from the last two PCSA's. Therefore, UCLA has agreed to provide a plan of action to ensure all property not in use is identified and disposition instructions requested. Reporting of excess property is not promptly being initiated for all excess property. Dismantling is being done without authorization from the ONR Property Administrator. Items that are obsolete and no longer utilized must be reported by custodial departments to Equipment Management promptly. Equipment Management will request disposition instructions from the funding agency in accordance with applicable federal regulations. Contract Property Closeout Final property reports are not being submitted as required in accordance with the terms and conditions of the awards. UCLA has agreed to ensure that final property reports are submitted within the required time frame of each award. To address this, Equipment Management will extract awards from their database that have an expiration date in excess of 90 days. University policy requires submission of a final inventory list at contract completion.   back to top Equipment Title & Disposition Title Determination Title to or ownership of all University property or materiel is vested in The Regents of the University of California. University property is defined as equipment to which title is vested in the University whether secured with general University funds or funds derived from extramural sponsors. In each instance that title to the equipment vests with the funding agency, the specific provisions of the applicable contract govern. Authorized department custodians can determine the investment of title for extramurally-funded equipment items by reviewing the Title Flag field in the University's online Equipment Management System at http://www.eqm.ucla.edu. For more information about the Equipment Management web site or to request a login ID and password for access to the Equipment Management System, contact Josefina Mancilla at extension 46060 or via email at jmancill@finance.ucla.edu. Equipment Disposition Equipment dispositions were cited as unsatisfactory during the 1998 federal audit. The University is committed to improving campus performance in this area by increasing campus awareness of the steps required to report excess property. Please review the Disposition of Capitalized Assets process map and the following process overview information carefully. Contact Equipment Management at extension 46060 for more information about equipment dispositions. University property cannot be sold, exchanged, loaned, or taken from the place where originally assigned except with written approval from the Equipment Management Department. The disposition of government property (property for which the University has assumed custodial responsibility) must be approved by the agency that holds title to the property. Departments must arrange secure storage for government property until written approval is received from the funding agency. Prior to selling, discarding, dismantling, exchanging, loaning, or abandoning equipment that is obsolete, damaged, or destroyed beyond repair, departments must complete an Equipment Inventory Modification Request (EIMR) form and receive written approval from Equipment Management. Lost or stolen equipment must be reported immediately by the department to the Campus Police. If after ninety days, the equipment has not been recovered, departments can request, by completing an EIMR form, that the equipment be removed from the University's master equipment inventory records. The EIMR form, Storehouse Catalog Number (71465-129), is a standard University form which should be used by departments to initiate requests to adjust the master equipment inventory records. Instructions for preparing the form appear on the reverse side of the pink copy of the EIMR. The EIMR form, along with required documentation, is forwarded to the department head for review and approval. The approved EIMR, along with required documentation is then forwarded to Equipment Management. At this time, electronic EIMR's can be processed online to update serial numbers and Capital Asset Account Numbers (CAAN's) using the capabilities of the Equipment Management web site. When equipment is being transferred to another university department, the signature of the department head receiving the equipment is also required.   back to top ESP Program The Excess & Surplus Property (ESP) program is designed to enable departments to take an active role in the sale of their surplus property. ESP also acts as a clearinghouse for information relating to surplus property available for sale. The head of the department has the authority to declare University property as excess to their department's needs. Equipment Management is delegated the authority to declare all University property as surplus to the UC campuses and is delegated the authority to establish fair market value for surplus property, or to advise departments of the appropriate procedures or methods for establishing fair market value. Sales of property originally acquired with extramural funds must comply with the specific terms of the relevant contract or grant. Departments selling their property are responsible for contacting Equipment Management to ensure that the University has title to the equipment prior to initiating a sale. ESP publishes a monthly newsletter, the UCLA Dollar $aver, to ensure campus compliance with University disposition requirements as set forth in the Methods of Disposal section of Business & Finance Bulletin BUS-38. Departments should advertise surplus property available for sale in the Dollar $aver before disposition to an outside party. ESP also maintains a list of preferred surplus dealers that departments can contact directly to sell their surplus property. The UCLA Dollar $aver and list of preferred surplus dealers can also be viewed online at http://www.equipment.ucla.edu.    back to top
		Events     back to top
		The Five Minute Reader UCLA Dollar $aver ESP publishes a monthly newsletter, the UCLA Dollar $aver, to advertise surplus property available for sale to campus departments and the general public. You can now view and advertise surplus items for sale in the UCLA Dollar $aver and Surplus Property Ad Form tables on the world wide web (WWW)! The UCLA Dollar $aver is mailed to approximately 500 University locations and approximately 250 external potential buyers and surplus dealers. Campus departments can advertise in the UCLA Dollar $aver by submitting an ad form to ESP. Ad forms are available in each issue of the UCLA Dollar $aver. Advertisements appear for one month only. All fax requests for advertisements received by the 20th of each month will be listed in the next issue of the UCLA Dollar $aver. Online WWW updates will be listed for one month after the ad creation date. This service is offered free of charge to campus departments. ESP maintains the UCLA Preferred Surplus Dealers list that campus departments can contact directly to sell their surplus property. This list is updated periodically, and is available via the Equipment Management Web Site. This service is offered free of charge to the campus departments. Credit of Sales Proceeds The campus department selling the property retains all sale proceeds for surplus property selling for less than $1,000. Campus departments prepare the Department Deposit Record (Storehouse Catalog Number 71465-158) and deposit the proceeds from cash sales including California sales tax (8.25%) to their departmental account and fund number 68310 at the Main Cashier's office. NOTE : sales tax must be entered on the sales tax line in the Department Deposit Record. For internal sales to other campus departments, the Interdepartmental Recharge Request (Storehouse Catalog Number 71465-155) is submitted to the Accounting Office to charge the buying department and credit the selling department's account and fund number 68310. A new object code, 9270, has been created to properly account for the income from sales of less than $1,000, and it should appear on the completed Department Deposit Record or Interdepartmental Recharge Request forms. (Exception: Auxiliary and Service Enterprises, UCLA Medical Center, and University Extension credit their income accounts.) For surplus property selling for $1,000 or more, ESP is responsible for the preparation of all necessary forms to deposit the sale proceeds into the ESP Program income account, and to transfer these funds (less the administrative fee) to the selling department. ESP makes every effort to credit the proceeds to the selling department within the same month in which the sales transaction occurred. A detailed departmental general ledger is generated for all proceeds credited to a campus department's account and fund number 68310. This general ledger will continue to be produced on a monthly basis until all funds in the account are exhausted. Campus departments who have funds in the Surplus Property Proceeds fund and are not currently receiving this general ledger should contact the Accounting Office. Campus departments can maintain a positive balance in the surplus property fund for the fiscal year in which the sale was credited to their account. Proceeds not expended within that time frame will be transferred out of the departmental account by the Accounting Office. However, these proceeds may be carried forward into the fiscal year subsequent to the fiscal year of the sale. Campus departments wanting to use this authority must notify the Accounting Office, in writing, of any balance they wish to carry forward. How to use the sales proceeds To use the sales proceeds to purchase goods or services, campus departments should directly charge their proceeds account (example XXXXXX-68310). Limitation of sales to University employees Employees in a department originating surplus property or a near relative of the employee cannot buy any surplus property originating from their department directly from the University. Requests for exceptions to this University policy should be directed, in writing, to the Property Administrator for administrative approval. For more information about the ESP Program, contact Josefina Mancilla at extension 46060 or via email at jmancill@finance.ucla.edu. back to top
		Property Management at UCLA The Equipment Management (EM) Department is responsible for: Maintaining the official records of all inventorial equipment items. Recording all acquisitions of property categorized as inventorial equipment. Assigning all property identification numbers for equipment items and distributing decals to the departments. Conducting statistical sample audits, as needed. Requesting, completing, and distributing all reports relating to property control which may be required or requested by the University or the Government. Ensuring campus compliance with all policies and procedures relating to property control and utilization. University policies relating to the custodianship, use and removal of University property are contained in the University of California Business and Finance Bulletin BUS-29, Management and Control of University Equipment. Campus departments are responsible for: The head of the campus department has the primary responsibility for the care, maintenance, records, physical inventory, and control of all University and Government-Owned property assigned to their department. Departments are responsible for maintaining the location of each item of inventorial equipment on their departmental inventory records. Current records as to the movement of equipment should be maintained in such a manner that any item of equipment can be located for inspection within a reasonable time. Any changes in building location or utilization status of equipment should be reported to the Equipment Management Department by completing an Equipment Inventory Modification Request (EIMR) form. The department is responsible for providing adequate physical security for all property in their custody. Areas containing equipment should be kept locked after business hours or at other times when not in use. Special precautions should be taken in the case of high-value, theft-sensitive, or portable equipment. The department is also responsible for taking an annual physical inventory of all equipment items. The inventory must be verified by the head of the department acknowledging custodial responsibility and that a physical inventory was conducted. Back to top