2. Equipment Management – Why It
Matters to Federal Grantees?
Know what you have, where they are – reduce costs and
institute accountability
You are required by Uniform Guidance or CFR (Code of
Federal Regulations)
3. Guidelines – Uniform Guidance
“A control system must be developed to ensure adequate safeguards to
prevent loss, damage, or theft of the property. Any loss, damage, or
theft must be investigated.” – §200.313 Equipment Management of 2 CFR
200, Uniform Guidance (Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards)
Effective date: Federal Agency Implementation effective 12/26/14
4. Relevant Definitions in Uniform
Guidance
Acquisition Cost:
Cost of the asset including the cost to ready the asset for it’s intended use.
(example: Invoice price plus modifications, attachments, accessories, or auxiliary
apparatus necessary to make it usable for the purpose it was acquired)
Capital Assets:
Tangible or intangible assets used in operations having a useful life of more than
one year, which are capitalized in accordance with GAAP.
Equipment:
Tangible personal property (including IT systems) having a useful life of more than
one year and a per-unit acquisition cost which equals or exceeds the lesser of the
capitalization level established by the entity, or $5,000.
5. Management of Property and
Equipment
Physical inventory of the property must be taken at least once every 2 years
Must establish a control system to ensure adequate safeguards to prevent loss,
damage or theft
Adequate maintenance procedures must be applied to keep property in good
condition
Property records must be maintained and include the following:
Description - Acquisition date - Condition
Unique identification # - Cost - Percentage of
Source of funding - Location Federal participation
Who holds title - Use
Source: UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT
REQUIREMENTS FOR FEDERAL AWARD, Dec’14
6. Insurance Requirement
Items <$5,000 can be retained with no further obligation to Federal
awarding agency
Items >$5,000 may be retained or sold & non-federal entity would
compensate Federal agency for their share. This is default if agency does
not respond to request within 120 days.
Transfer title to the Federal Government or eligible third party
7. Disposition of Equipment
Items <$5,000 can be retained with no further obligation to Federal
awarding agency
Items >$5,000 may be retained or sold & non-federal entity would
compensate Federal agency for their share. This is default if agency does
not respond to request within 120 days.
Transfer title to the Federal Government or eligible third party
_
8. Track depreciation on Equipment
Required -- replaces use allowance
Consider and establish useful life or use of service
Depreciation method – straight line method.
Cannot be changed without approval
9. Key Challenges for Federal
Grantees
Track equipment by
funding codes –
often one equipment
has multiple funding
sources
Handle disposition
efficiently – recording
disposition methods,
sales prices, transfer
Track the location, use,
and condition of
equipment at all times
Transfer equipment
among different
projects and keep
record of these
transfers Conduct inventory audit
in a cost efficient way
Optimize insurance
premium
Institute system control
of assets to prevent
loss/theft/damages Track depreciation on
equipment efficiently
10. 10 Signs – You Need Help…
1. Excel sheets/ Access database are used for tracking equipment and supplies
2. The Accounting Department spent many hours to reconcile – every month
3. No periodic inventory audit checks
4. struggle to provide accurate information to the insurance providers
1. No dedicated owner of the equipment management function
2. Believing that the fixed asset management software is taking care of equipment management
3. Only tracks items with >$5000 in purchase value, can’t track others – too many of them.
4. No equipment management procedures
5. No training on equipment management procedures
6. Just failed the most recent financial audit on inventory control
11. How E-ISG can Help
Provide Commercial Off the Shelf Software
eQuip! to automate the processes
Low cost
Easy to use
Easy to implement
Already serve many federal grantees, visit
our website for more information and don’t’
forget to download the case study.
http://www.e-isg.com/equipment-
management-for-non-profit/
12. How to Contact Us
Email: sales@e-isg.com
Call: 1-866-845-2416, ext. 2
Visit our website: www.e-isg.com