UCR

UCR Policies and Procedures

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Policy Title:                    Fabricated Equipment - Purchase and Management of

 

Policy Number:              750-18

 

Responsible Officer:

Associate Vice Chancellor of Business and Financial Services and Controller

Responsible Office:

Business and Financial Services

Origination Date:

12/01/2004

Date of Revision:

07/05/2017

Date of Last Review:

06/30/2017

Scope:

Guidance Concerning Fabricated Equipment

 

A.   DEFINITION OF FABRICATED EQUIPMENT?

As defined within University of California (UC) Business & Finance Bulletin BUS-29: Management and Control of University Equipment (BUS-29) a fabrication must meet the following definition to be considered fabricated equipment and have its allowable expenses placed on the 803160 (Equip, Fabricated) account:

 

FABRICATION: A fabrication is an item of non-expendable, tangible personal property that:

(1) has been physically constructed by a University activity;

(2) has a total acquisition cost of $5,000 or more;

(3) has a normal life expectancy of more than one year; and

(4) is expected to be used by the University upon completion.

 

A product resulting from simple assembly or connecting of various parts does not qualify as a fabrication. As used in this Bulletin, “fabrication” does not include a piece of equipment fabricated for the sole purpose of sale and delivery to an external entity under an award made specifically for the fabrication of the equipment.

     

Any fabricated property that does not meet the above definition is not considered fabricated equipment and is not allowable on the 803160 (Equip, Fabricated) account. These non-equipment fabrications do not require approval from the Equipment Management Office and their associated cost must be allocated to the S&E accounts as appropriate.

 

B.   ALLOWABLE AND UNALLOWABLE FABRICATED EQUIPMENT EXPENSES

The following types of expenditures are allowable on the 803160 (Equip, Fabricated) account:

·         Required material,

·         Required supplies,

·         Required components, and

·         Services (from outside vendors or authorized internal recharge activities that are used in the fabrication process).

 

The following types of expenditures are unallowable on the 803160 (Equip, Fabricated) account and must instead be allocated to the S&E accounts as appropriate:

·         Departmental labor (i.e. salaries of faculty member(s), principal investigator(s), graduate student researcher(s) or other comparable personnel),

·         Travel,

·         Other operating expenses,

·         Payroll expenses, and

·         Federal overhead cost.


  C.   POLICY

Any department that has decided to construct fabricated equipment (as defined in Section A) shall notify the Equipment Management Office prior to commencing the fabrication by submitting a Fabrication Justification Form to the Equipment Manager Office for review and approval.

 

Equipment Management will assign each approved fabrication request a unique project code. The department must place all allowable fabrication expenses (as defined in Section B) on a FAU that contains the 803160 (Equip, Fabricated) account and the assigned project code.

 

Upon completion of the fabrication the department must promptly submit a paper Fabrication EIMR Form and a listing of all the fabrications allowable expenditures to the Equipment Management Office.


  D.   PROCEDURE

 Prior to commencing fabrication:

     To initiate a fabrication a department must first request the fabrication by submitting a Fabrication Justification Form to the Equipment Management Office. This from must contain at a minimum the following information:

                                          i.    Complete description of the equipment,

                                        ii.    Department contacts,

                                       iii.    Funding details,

                                       iv.    Location,

                                        v.    Title holder (upon completion),

                                       vi.    Estimated costs, and

                                      vii.    Estimated completion date.

·         The Equipment Management Office will review the Fabrication Justification Form and, if appropriate, assign the fabrication a project code.

·         A copy of the signed and approved Fabrication Justification Form, containing the fabrications assigned project code, will be returned to the department.


During the fabrication development:

·         The department must place all allowable fabrication expenses on a FAU that contains the 803160 (Equip, Fabricated) account and the assigned project code.

·         Department can place fabrication expenditures on Procurement Cards as long as the expenses are subsequently transferred to an appropriate FAU as soon as possible.

·         Departments should, at least annually, provide updates to the Equipment Management Office on the status of fabrications and provide revised estimation completion dates.

 Finalizing fabrication:

·         Upon completion of the fabrication the department must submit a Fabrication EIMR Form and a listing of all the fabrications allowable expenditures to the Equipment Management Office.

·         If a completed fabrication meets the requirements of fabricated equipment (as defined in Section A) the Equipment Management Office will add an asset record to the Asset Management System to complete the fabrication process.

·         Once a fabrication is completed it is subject to the same policies and procedures as all other campus inventorial equipment, including policies relating to future upgrades.

·         If the fabrication does not result in an item of fabricated equipment or a functional working piece of equipment then the department must initiate cost transfers to move all the fabrications 803160 (Equip, Fabricated) account expenses to the S&E accounts.

 

 E.   FORMS

 ·         Fabrication Justification Form:

http://bfs.ucr.edu/equipment/documents/requestfabrication.pdf


·         Fabrication EIMR Form:

http://bfs.ucr.edu/equipment/documents/fabricationclosureeimr.pdf

 

 F.    CONTACTS


Subject

Contact

Phone

Email

Fabrications

Steve Staples,
Equipment Manager

(951) 827 – 4209

steven.staples@ucr.edu


G.   RELATED INFORMATION

      University of California (UC) Business & Finance Bulletin BUS-29: Management and Control of University Equipment (BUS-29)

 

H.   REVISION HISTORY

        Updated on 07/01/2017 to include additional information and to reflect the Equipment Management Office switching from assigning fabrication control numbers to assigning fabrications project codes.