Centrally Reportable Equipment (CRE) - Plant equipment, special test equipment (including components), special tooling, and non-flight space property (including ground support equipment) which is (a) generally commercially available and used as a separate item or component of a system, (b) valued at $1,000 or more, and (c) identifiable by a manufacturer and model number [This term applies only to NASA, JPL, and DoD property.]

Centrally Reportable Equipment (CRE) - Plant equipment, special test equipment (including components), special tooling, and non-flight space property (including ground support equipment) which is (a) generally commercially available and used as a separate item or component of a system, (b) valued at $1,000 or more, and (c) identifiable by a manufacturer and model number. [This term applies only to equipment acquired on NASA and JPL contracts.]  NASA and JPL require the use of DD Form 1419 to obtain prior sponsor approval for the acquisition of Centrally Reportable Equipment.  All Centrally Reportable Equipment must be issued an N or A property tag.

2. Industrial Plant Equipment (IPE) – defined in DFAR 45.301 as - That part of plant equipment with an acquisition cost of $5,000 or more; used for the purpose of cutting, abrading, grinding, shaping, forming, joining, testing, measuring, heating, treating, or otherwise altering the physical, electrical, or chemical properties of materials, components or end items entailed in manufacturing, maintenance, supply, processing, assembly, or research and development operations and which is currently controlled by Defense General Supply Center (DGSC) .

Industrial Plant Equipment (IPE) - That part of plant equipment with an acquisition cost of $1,000 or more; ….

3. Inventorial Equipment - Capital equipment which is an item of non-expendable, tangible, personal property which has an aggregate acquisition cost or fair market value of $1,000.00 or more, is free standing, movable, is complete in itself, does not lose its identity when affixed to or installed in other property and has a useful life greater than one year. 

Capital equipment which is an item of non-expendable, tangible, personal property which has an aggregate acquisition cost or fair market value of $5,000.00 or more, is free standing, movable, is complete in itself, does not lose its identity when affixed to or installed in other property and has a useful life greater than one year.  Centrally Reportable Equipment is also Inventorial Equipment but with a value of $1,000 or more.

PHYSICAL PLANT ACQUISITIONS

LAND IMPROVEMENTS OTHER THAN BUILDINGS

Improvements to land other than buildings are capitalized if the total expenditure is $5,000 or more per project.

Changed to: Improvements to land other than buildings are capitalized if the total expenditure is $100,000 or more per project.

UTILITIES

Improvements to the utility infrastructure are capitalized if the total expenditure is $5,000 or more per project.

Changed to: All improvements to the utility infrastructure are capitalized.

NEW CONSTRUCTION includes the creation of a new permanent structure or the addition, expansion or extension of an existing. The cost of the building is the construction cost of the building’s shell and its components.

SPORTS FACILITIES includes additions, expansions, extensions of existing athletic Fields, tennis courts, seating and small facilities structures. (Bathrooms, storage, etc) The cost of sport facilities is the construction and component cost.

NEW CONSTRUCTION includes the creation of a new permanent structure or the addition, expansion or extension of an existing. The cost of the building is the construction cost of the building’s shell and its components and is capitalized at $100,000 or more.

SPORTS FACILITIES includes additions, expansions, extensions of existing athletic Fields, tennis courts, seating and small facilities structures. (Bathrooms, storage, etc) The cost of sport facilities is the construction and component cost and is capitalized at $100,000 or more.

REMODELING AND BETTERMENTS vs MAJOR MAINTENANCE AND REPAIRS

REMODELING, BETTERMENTS, AND RENOVATION: The reworking of an existing building or portion of an existing building, including upgrading the major systems, which extends the building’s usable capacity or useful life shall be capitalized. …………. If an individual project cost less than $5,000, the expense is to be charged to repair and maintenance operations object code, rather than capital.

Changed to:

REMODELING, BETTERMENTS, AND RENOVATION: The reworking of an existing building or portion of an existing building, including upgrading the major systems, which extends the building’s usable capacity or useful life shall be capitalized……………..If an individual project cost less than $100,000, the expense is to be charged to repair and maintenance operations object code, rather than capital.

LEASEHOLD IMPROVEMENTS

Improvements to land and buildings leased by the University are capitalized at the cost of the improvements.

Improvements to land and buildings leased by the University are capitalized at $100,000 or more.

EQUIPMENT ACQUISITIONS

Capital equipment means an item of non-expendable, tangible, personal property which has an aggregate acquisition cost or fair market value of $1,000.00 or more, is free standing, movable, is complete in itself, does not lose its identity when affixed to or installed in other property and has a useful life greater than one year.

Capital equipment means an item of non-expendable, tangible, personal property which has an aggregate acquisition cost or fair market value of $5,000.00 or more, is free standing, movable, is complete in itself, does not lose its identity when affixed to or installed in other property and has a useful life greater than one year.

Equipment otherwise capital in nature with an aggregate acquisition cost of less than $1,000.00 is to be classified as an expense item and charged to an operating object code.

Equipment otherwise capital in nature with an aggregate acquisition cost of less than $5,000.00 is to be classified as an expense item and charged to an operating object code.

9. FABRICATION AND ASSEMBLY: See 5-EQUIPMENT FABRICATION

FABRICATION: See 5-EQUIPMENT FABRICATION.

10. BETTERMENTS AND UPGRADES

Betterments and upgrades to capitalized equipment that cost less than $1,000.00 should be classified as an expense item and charged to an operations object code.

Betterments and upgrades to capitalized equipment that cost less than $5,000.00 should be classified as an expense item and charged to an operations object code.

SPECIAL CONSIDERATIONS:

COMPONENTS AND ACCESSORY PURCHASES: When an item is purchased on a component basis (assembly or fabrication), the total value of the purchase is considered in determining if the expenditure is to be capitalized. If the total cost of the components is $1,000 or more, capitalize the purchase as a single unit. If the total of these items is less than $1,000, charge the purchase to operations. All the components and accessories shall be charged to the same capital object code.

For example, if a computer is purchased along with additional memory, keyboard, monitor (if less than $1,000) and/or CD drive, capitalize the entire purchase as a single item.

When ordering components, add a text line (type T in the UPO field on screen 29L for dPRs) to the purchase requisitions, stores requisitions, interdepartmental billing forms, etc. that reads "These items are components or part of tag # (the pre-assigned A or D-Tag number). "

When ordering components, add a text line (type T in the UPO field on screen 29L for dPRs) to the purchase requisitions, stores requisitions, interdepartmental billing forms, etc. that reads "These items are components or part of tag # (the pre-assigned A or D-Tag number). "

COMPUTER SOFTWARE

Change 1: The following paragraph is inserted after the first paragraph.

"for deletion", which is the beginning of the second paragraph, is deleted.

"End deletion", which is the last part of the final paragraph, is deleted.

II. UNIVERSITY TITLED PROPERTY - SURPLUS PROPERTY

10. Surplus Property will not be able to pick up any capital equipment (equipment that appears to have cost $1,000 or more) which does not have a UA inventory tag physically on it or does not reference a UA inventory tag in the accompanying paperwork.

Changed to: 10.Surplus Property will not be able to pick up any capital equipment (equipment that appears to have cost $5,000 or more) which does not have a UA inventory tag physically on it or does not reference a UA inventory tag in the accompanying paperwork.

POLICY

The followings are added at the end of the original three paragraphs.

I.COST ACCOUNTING FOR FABRICATED EQUIPMENT FOR THE GOVERNEMENT

(The fourth paragraph)

Costs comprising the fabricated equipment are to be charged to the appropriate expenditure object code category. For example, charge personnel costs to the personal services category; charge consulting fees and shop costs, component parts with a unit cost less than $1,000, and raw materials, including, lumber, glass and tubing to operations (5750); charge parts with a unit cost of $1,000 or more to the appropriate equipment object code.

Changed to: Costs comprising the fabricated equipment are to be charged to the appropriate expenditure object code category. For example, charge personnel costs to the personal services category; charge consulting fees and shop costs, component parts with a unit cost less than $5,000, and raw materials, including, lumber, glass and tubing to operations (5750); charge parts with a unit cost of $5,000 or more to the appropriate equipment object code.

The followings are added at the end of the section 3.20.

III. COST ACCOUNTING ON FABRICATED GOVERNMENT EQUIPMENT:

POLICY

The University is prohibited by Arizona Revised Statutes from giving away assets without receiving comparable value in return. However, it is possible for research personnel who have terminated employment with the University of Arizona, but who will be employed by another university or college, to transfer research equipment acquired on both current and retired sponsored accounts to their new institution. The following conditions are required to transfer research equipment to another university or college.

Changed to: The University is prohibited by Arizona Revised Statutes from giving away assets without receiving comparable value in return. However, it is possible for research personnel who have terminated employment with the University of Arizona, but who will be employed by another university or college, to transfer research equipment acquired on both current and retired sponsored accounts to their new institution. Equipment may also be transferred on a case-by-case basis, on an exception-approval basis, to federal and non-profit research agencies.  The following conditions are required to transfer research equipment to another university or college, a federal agency, or non-profit organization.

POLICY g. A "Use Agreement" must be process for signature by the University’s Procurement and Contracting Office.

Changed to: A "Facilities Use Agreement" must be process for signature by the University's Procurement and Contracting Office.

POLICY - The underlined words in the first and second paragraph were deleted and the fourth paragraph was replaced.

All capital equipment being purchased, assembled or fabricated by the University for the contractual purpose of delivery to the government or other sponsor shall be assigned a University D-tag number. A single D-tag can be issued for a group of like items such as computers and their peripheral hardware, or a tag for each unique item being produced for the sponsor by the University.

Principal Investigators (P.I.) are responsible for obtaining D-tag(s) from the Property Management-FSO in advance of their purchases, assembly or fabrication for a sponsor. This D-tag number is to be included in the body of all expense and/or acquisition documents on the purchase of supplies, parts, equipment and shop services for acquisition or production of the deliverable item.

University A-tags shall not be assigned to capital equipment with a primary contractual purpose of delivery to the sponsor. A-tags are for the purpose of identifying capital in use at the University.

The cost (1) for purchased capital equipment for delivery to a sponsor, (2) for the assemble of capital equipment for delivery to a sponsor, and (3) for the fabrication of equipment for a non-government sponsor is the expense for the equipment, parts, supplies and shop services for the items. The expense object codes to be used are 5750 and 7750. Separate cost accounting requirements exist for fabricated, purchased or assembled equipment for delivery to the government.

University A-tags shall not be assigned to capital equipment with a primary contractual purpose of delivery to the sponsor. A-tags are for the purpose of identifying capital in use at the University.

Property Management-FSO is responsible for issuing the tag(s) upon notification of receipt and/or payment of capital equipment and to provide the tag(s) to the custodial department to affix. For those University purchases of capital equipment that are titled to the U.S. Government, Property Management –FSO will also issue a "Property of the U.S.Government" tag.

Property Management-FSO is responsible for issuing the tag(s) upon notification of receipt and/or payment of capital equipment and to provide the tag(s) to the custodial department to affix. Capital equipment titled to the U.S. Government arriving in Central Receiving shall have tags (including "Property of the U.S. Government" tags) affixed by Receiving personnel.

Property Management –FSO does not identify or tag equipment with an acquisition cost of less than $1,000.00. If a department has an interest in identification and tagging equipment costing less than $1,000, the department may use its own identification.

If an item of capital equipment is to be created through fabrication or assembly, only one tag number is to be issued. Departments should obtain the tag number in advance from the Property Management-FSO and reference this number on all purchases made.

Change 1: The title is changed to: FABRICATION OF CAPITAL EQUIPMENT

Change 2: If an item of capital equipment is to be created through fabrication or assembly, only one tag number is to be issued.

If an item of capital equipment is to be created through fabrication, only one tag number is to be issued. Departments should obtain the tag number in advance from the Property Management-FSO and reference this number on all purchases made.