Click here to download the Policy PDF
It is the policy of New York University (NYU, “the University”) that equipment acquired with Federal funding is managed in accordance with Federal regulations, sponsor requirements and University policies. The management of equipment acquired with Federal funding at the University is an integral process supported by all Finance, Purchasing, Asset Management, departments, schools and units of NYU.
The purpose of this policy is to provide guidance to Principal Investigators (PI’s) and departments for managing Federally funded equipment in accordance with Federal Office of Budget and Management (OMB) Circulars, sponsor requirements and University policies.
This policy is applicable to NYU equipment acquired with Federal funding. Equipment can be acquired through purchase, fabrication, donation or transfer from another institution.
Tagging and recording of equipment is the responsibility of Asset Management which records property over the capitalization threshold (i.e., $3,000) into the Fixed Asset Records and identifies the equipment with a unique NYU tag number to identify equipment acquired with Federal funding. A property/equipment record should be maintained accurately and include the following data elements:
A DA must report to the Asset Management Office and the Office of Sponsored Programs (OSP) any loss, damage or theft of equipment acquired with Federal funding.
i. Biennial Inventory
In accordance with OMB Circular A-21, Cost Principles for Educational Institutions (http://www.whitehouse.gov/omb/circulars/a021/a21_2004.html) and OMB Circular A-110, Uniform Administrative Requirements for Grants and Agreements with Institutions (http://www.whitehouse.gov/omb/circulars_a110/#71), NYU performs a physical inventory of equipment and reconciles with the inventory records every two years for each department. Asset Management will verify the following information for each asset:
Asset Management will prepare a report for each department. The inventory report shows the difference between quantities determined by the physical inventory and those shown in the inventory database. A typical report will include:
The DA for each department is responsible for inventory reconciliation, which is to investigate and determine causes of the difference between the inventory report and the Fixed Asset Records. Inventory reconciliation should be reported back to the Asset Management Office within 60 days from the date of the physical inventory report. Do not move equipment acquired with Federal funds from the tagged location. If the equipment must be moved, be sure to notify the Asset Management Office and change the property record(s).
ii. Final Project Inventory
Upon completion or termination of a grant or contract, a physical inventory of all Federally-owned property shall be conducted. Sponsored Programs Administration (SPA) will conduct the final physical inventory and report the results to the sponsor.
Generally, the title of ownership for equipment purchased on Federally-funded sponsored agreements rests with the University. If the Federal Government retains ownership, it should be specifically identified in the sponsor agreement.
As long as the Federal Government continues to support the project or program for which the equipment was purchased, the following rule must be followed:
If the equipment is owned by the Federal Government, use on other activities not sponsored by the Federal Government must be authorized by the Federal awarding agency. User charges must be treated as program income.
When a PI wishes to dispose of items of equipment funded by the Federal government, disposition restrictions must be researched and resolved by SPA. Sponsor approval may be required prior to sale.
The department completes an NYU Asset Surplus Form to request authorization for disposal of any NYU Asset, and/or to report any surplus items.
For disposal of Federally funded equipment, an NYU Asset Surplus Form must be forwarded to SPA before Asset Management authorizes disposal of the item. Federally funded equipment may be vested in i) NYU or ii) the Federal government (i.e., government-owned property).
i. When Title to Equipment Vests in NYU
When the original sponsored project that funded the equipment is ongoing, proceeds from the sale of the equipment will be credited back into the project and be treated as program income.
ii. When Title to Equipment Vests in the Federal Government
SPA contacts the sponsoring agency for disposal instructions.
Click here to download the Policy PDF
|Effective Date:||September 01, 2013|
|Issuing Authority:||Sponsored Programs Administration|
|Responsible Officer:||Assistant Vice President for Post-Award Administration|
Acquisition Cost of Equipment - The price of the property including the cost of modifications, attachments, accessories or auxiliary apparatus necessary to make the property usable for the purpose for which it was acquired. Other charges, such as installation, transportation, taxes, duty, protective in-transit insurance, shall be included if these costs are listed on the same invoice.
Asset Tag - The number given to a piece of equipment that serves as the main unit of a system with numbered components.
Equipment (also referred to as property or asset) - Tangible, non-expendable personal property having an anticipated useful life of one year or more with a unit acquisition cost of $3,000 or greater.
Excess Property - Property under the control of any Federal awarding agency that is no longer required for its intended purpose. The Federal awarding agency approves the PIs recommendation to deem it “excess property.”
Federally-owned Equipment - Equipment under the University’s control to which Federal Government retains title (also called Government-owned Property).
Property - Within the context of the policy Property Management for Federally Owned Equipment, “property” primarily includes equipment. However, depending on regulatory or other contractual requirements, it may also include materials and supplies.
Supplies - Goods which are consumable, perishable or short lived, and are subject to material change or items of a durable nature with an anticipated useful life of less than one year or with a unit acquisition cost of less than $3,000.