Part 16. Inventory Control and Property Management
Section 5. United States Government-Owned Equipment
Policy Number: 16.5.4
Issued by: Office of Accounting
Date Issued: February 17, 2005
Approved By: B. Gutierrez, Assoc. VP & Controller
16.5.4 DISPOSITION OF GOVERNMENT-OWNED EQUIPMENT
A. Scope
This part describes when the U.S. Government property
tags are to be removed from a piece of equipment, transfers of equipment,
contract or grant completion, excess property, disposition of scrap
and salvage, and the disposition records for the equipment.
B. Tag Removal
The Project Director will remove the U.S. Government-owned property tags from the equipment and send to the Federal Property Administrator, Office of Accounting, Inventory, campus mail code K5306 when:
- Title to this equipment has been transferred to UT Austin.
- Equipment has been sold or disposed of as scrap.
U.S. Government-owned property tags will not be removed
from the equipment when:
- The equipment is transferred back to the federal agency with
title remaining with the federal agency.
- The equipment is transferred to another non-federal agency (i.e.
another University) with title remaining with the federal agency.
C. Transfer of Equipment
1. Transfer of Equipment when the Project Director or Principal
Investigator Moves to Another Institution
Some grants contain provisions permitting the transfer of equipment
acquired with Government funds when the Project Director accepts a
position at another institution. However, these provisions are not
always compatible with the rules and regulations governing the administration
of State property. While some grants and contracts contain provisions
giving a conditional title at the time of purchase, some contain disposition
restrictions. The final approval for equipment transfers rests with
the UT Austin Property Manager's decision, based on benefits to
the State, the U.S. Government, and the overall research program.
The Project Director should not plan on requesting a transfer of the
equipment if:
- The original grantee retains the project for which the equipment
was acquired and, with the approval of the awarding agency, places
the project under the direction of a new investigator; or
- The cost of transferring the equipment, as determined by the
awarding agency, would be excessive relative to its current value;
or
- The new grantee does not require the equipment in order to continue
the project.
The following sequential actions should be taken by the Project Director
to obtain a transfer approval:
- Prepare a list of equipment pertinent to the transfer. This list
should include the inventory number, name of item as shown on UT
Austin inventory records, year and month acquired, cost, and the
account number under which each item was purchased. This information
should be on file in the research department or it can be obtained
or compared with the records maintained by the Office of Accounting.
- Obtain transfer approval from the Department Chairman, College
Dean (if necessary), and Vice President for Research.
- Submit a request to the sponsoring agency concerned.
- Obtain a written acceptance agreement from the gaining institution.
(This should be from the accounting/business element rather than
the academic department.)
- Submit all of the above data to the UT Austin Property Manager
for a final decision on the request.
The equipment must not be removed from the campus until the Department
Chairman receives written approval from the Property Manager. At this
time, the inventory tags should be removed and sent to the Office
of Accounting Inventory Services.
2. Transfer of Equipment to Another Organization
UT Austin is sometimes requested to send items of Government equipment
to other locations. This is normally initiated by the cognizant Federal
agency, but sometimes a prospective receiving organization will contact
UT Austin directly and request the property be sent to them. However,
it must be emphasized that no Government-owned equipment may be transferred
to another organization without the concurrence of the appropriate
Contracting Officer. This is essential to preclude any question of
accountability or subsequent liability. The equipment custodian must
insure there has been coordination with the Contracting Officer and
should contact the receiving organization to advise them of the shipping
arrangements. The Project Director is responsible for making the actual
shipment in accordance with instructions, fund citations, etc., as
provided by the Office of Accounting.
D. Contract/Grant Completion
Upon completion of a contract or grant, Contract and Grant Services is required to submit a final inventory or final listing
of Government-owned property to the Property Administrator, possibly even
for equipment that was entitled to UT Austin. ARL will submit the
reports, as required, for grants and contracts awarded to ARL. These
inventories or final listings are verified by the Project Director as
to availability, condition, value (sometimes), utilization, and disposition
recommendation. It is sometimes possible for UT Austin to obtain title
to the Government property, but the circumstances vary by agency rules
and Federal statutes. There are times when the equipment must be crated
and shipped to another location. The Contracting Officer will direct
this type of transfer and will usually provide the Project Director
with shipping instructions. In other instances, continued use of the
equipment may be arranged under a new contract or grant.
E. Excess U.S. Government-Owned Property
The Project Director shall identify any excess U.S. Government-owned
property. A list of the excess property will be sent to the Office of
Accounting Inventory Services within 14 calendar days of identification
of the item(s) as excess. The Federal Property Administrator will forward
the list to the appropriate contracting officer declaring the equipment
as excess and requesting disposition instructions. Although not a function or responsibility of the Property Manager, the procedures for obtaining U.S. Government-owned excess
equipment can be found herein.
F. Disposition of Scrap and Salvage
If a determination is made that scrap material is to be
disposed of or that a property item is to be turned in as salvage, there
are two methods of disposition available. Title or ownership of the
property will dictate the method to be used. If Government-owned, the
sponsoring agency will be advised. The Contracting Officer or Property
Administrator may direct turn-in to a designated Government property
disposal facility, or sold in accordance with the provisions of the
FAR. If title has been passed to UT Austin, disposition will be made
in accordance with the provisions in effect for the disposition of State-owned
property. If title resides with UT Austin, the U.S. Government property
tag will be removed.
Because the U.S. property disposal facilities are not
located in Austin, and because there are administrative and scheduling
constraints involved in turning property over to the disposal facility,
the Office of Accounting will request transfer of title to UT Austin
when feasible.
Under no circumstances will Government property be disposed
of without proper authorization. Information on how to initiate a request
for authorized disposition can be obtained from the Office of Accounting.
G. Disposition Records
The Federal Property Administrator will update the disposition
records for Government-owned property that are disposed of or have a
transfer of title to UT Austin.
