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Handbook of Business Procedures

Date published: 
Last revised: 
Issued by: 

February 17, 2005
July 2, 2013
Inventory Services


Part 16. Inventory Control and Property Management - Table of Contents

16.5.4. RECORDS

A. Scope

This part establishes the minimum requirements for records to be kept and maintained on Government property in the possession of UT Austin and/or subcontractor as described in Federal Acquisition Regulation (FAR) 52.245-1.

Federal Acquisition Regulation

B. General

Contractors are required to establish and maintain adequate property control records. Unless the Contracting Officer directs otherwise, records of Government property maintained by UT Austin under terms of a particular contract are utilized as the official records for that contract. In this regard, the official property records at UT Austin are established by the Property Manager and maintained in the Office of Accounting. In addition, each Project Director is responsible for keeping sufficient records in order to correct and validate all required inventories and reports, and to ensure proper control of Government property in his possession. If the Project Director has more than one contract with a particular Government agency, separate property records for each shall be maintained. These records shall show:

  • Property records shall enable a complete, current, auditable record of all transactions and shall, unless otherwise approved by the Property Administrator, contain the following:
    • The name, part number and description, National Stock Number (if needed for additional item identification tracking and/or disposition), and other data elements as necessary and required in accordance with the terms and conditions of the contract
    • Quantity received (or fabricated), issued, and balance-on-hand
    • Unit acquisition cost
    • Unique-item identifier or equivalent (if available and necessary for individual item tracking)
    • Unit of measure
    • Accountable contract number or equivalent code designation
    • Location
    • Disposition
    • Posting reference and date of transaction
    • Date placed in service (if required in accordance with the terms and conditions of the contract)

C. Inventories and Reports

1. Scope

This part establishes requirements for physical inventories and reports of Government property at UT Austin.

2. General

Physical inventories are required annually.

3. Inventories

An annual inventory of all U.S. Government-owned equipment will be performed in conjunction with the annual inventory of University-owned equipment. A combined listing of both University- and U.S. Government-owned equipment will be sent to each Dean, Chairman, or Department Head detailing all equipment assigned to their department. It is the responsibility of the departments to conduct the annual inventory, certify, and sign that the inventory was performed and that any discrepancies found during the inventory were reported. For U.S. Government-owned equipment certification, a sample of departments will be selected annually and a spot check will be performed by the Office of Accounting to ensure the accuracy of the inventory and to identify property not in use. The property manager will review description model/serial number, manufacturer, condition, federal tags and location information and require the departments to make updates for any items noted in error. The property manager will request disposition instructions for all DOD, NIH, and NASA via the Administrative Contracting Officer for equipment identified to be no longer in use or needed.

Departments should notify the property manager to request disposition for all federal property when identified as no longer needed and not wait until the award expires.

Any significant adjustment to the U.S. Government-owned inventory requires prior approval from the Office of Naval Research Regional Office(ONRRO); cognizant Government Property Administrator; or from the sponsor’s Administrative Contracting Officer.

Office of Naval Research

4. Reports

Various Government agencies require periodic inventory reports of Government-owned equipment or updated cost information. These reports are normally prepared and submitted by the Federal Equipment Administrator, Office of Accounting. They are based on data from the property records and information provided by the departments. Additionally, the Federal Equipment Administrator, Office of Accounting updates associated records in the accounting system to track Office of Naval Research administered accounts.

Following are some of the more common reports UT Austin must provide to U.S. Government agencies:

  • NASA Property in the Custody of Contractors (NASA Form 1018). The 1018 Report is prepared annually for period ending September 30th. Report is due no later than October 15. Negative 1018 forms are required for all contracts. Negative reports for grants will be submitted in letter format. The original and three copies of the 1018 form go to the appropriate Deputy Chief Financial Officer for the NASA Center. One copy will also be sent to the ONRRO.
  • Property reports as required by OMB A-110, Section 33.32(a).
  • Reports are provided to the administering agency upon request. Reports can include inventory number, description, model/serial number, manufacturer, condition, location, funding source, acquiring contact/grant number, accountable contract/grant number, acquisition date, acquisition cost, ownership information, total number of items, and total acquisition cost.
  • Property reports are provided upon request, and upon award closeout per agency contract/grant reporting requirements.

U.S. Government Inventory Forms
Office of Accounting
Office of Naval Research
OMB A-110 – Uniform Administrative Requirements for Grants and Contracts

D. Records of Scrap and Salvage

1. Scope

This part prescribes the procedures for keeping records of scrap and salvage derived from Government contracts or grants.

2. Records of Scrap

The Project Director shall maintain records to show, at a minimum, the following information:

  • Contract/grant number and account number from which the item was purchased
  • Material content
  • Quantity on hand
  • Unit of measure
  • Posting reference and date of transaction
  • Disposition

In most contracts and grants, there is no scrap involved; however, the Project Director should make at least a quarterly check to ensure none has developed during the course of the project.

3. Records of Salvage

The Project Director shall maintain records to show, at a minimum, the following information:

  • Contract/grant number and account number from which the item was purchased
  • Description of item to include, where available, the serial number, model number, government tag number, name of manufacturer, and year of manufacture
  • Quantity on hand
  • Posting references and date of transaction
  • Disposition

The Project Director shall make at least a quarterly check to determine if there are property items that should be reported as being in a salvage condition.

E. Records of Materials and Supplies Consumption

1. Scope

This part prescribes procedures on the use of supplies and expendable property purchased with funds from contracts or grants, and the need for keeping records of such purchases.

2. General

There are no general requirements from Government agencies for reports of supplies used; however, occasionally there have been individual requests for providing such information. Accordingly, it is considered to be good business to establish minimum requirements at UT Austin. The Project Director must maintain records of supplies purchased and used with contract or grant funds, as such information cannot be practically compiled by the Office of Accounting.

3. Usage

The internal operating procedures of the department or center should ensure that supplies acquired with Federal funds are not used to support UT Austin research and development activities. Conversely, supplies purchased with UT Austin funds should not be used on U.S. Government research and development activities.

4. Records

At a minimum, the Project Director shall establish and maintain records on supplies to show:

  • Contract and grant number
  • Purchase order number and date
  • Cost of purchase
  • General description and quantity of supplies
  • Name of company from which purchased

These records will be retained for at least six months following the termination of the contract or grant.

F. Maintenance Records

FAR 52.245-1(f)(1)(ix) Maintenance

The Contractor shall properly maintain Government property. The Contractor’s maintenance program shall enable the identification, disclosure, and performance of normal and routine preventative maintenance and repair. The Contractor shall disclose and report to the Property Administrator the need for replacement and/or capital rehabilitation.


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Part 16. Inventory Control and Property Management - Table of Contents