Condition Change

Purpose

This document describes how the PCS is updated to record changes in property condition.

Reporting Regulations

OMB Circular A-110 requires the monitoring and reporting of condition for federally sponsored property. It specifies that in connection with inventory, the recipient must verify the existence, utilization and continued need for the property. Other sponsors have their own regulations for reporting the condition of their property.

When conducting a physical inventory, inventory personnel should appraise the condition of property and enter changes into the Condition field of the PCS. Alternatively, the operating location may choose to monitor property condition at a different time.

Proper reporting of condition is dependent upon establishing good communication lines between project directors and the office in charge of inventory. Project directors and their staff are usually in the best position to know the functional condition of their equipment.

Project directors should communicate condition changes of a significant nature to the operations manager or property control delegate, whenever they occur. Some sponsors require notification when their property has a change in condition. This notification is made through scheduled property reports signalled due by the Account Reports System.

Appraisal of Condition

The appraisal of condition and the assignment of an appropriate condition code must conform with guidelines set forth in the PCS User Manual. The codes generally rate property according to whether it needs repair, whether it is being cannibalized for parts, or whether it is obsolete and disposition procedures are being initiated.

Lost, Stolen, or Damaged Condition

Property that is unrecoverable as a result of being stolen or lost must be reported to the campus Security Office. If property is damaged as a result of vandalism or if property is involved in an accident caused by sources outside of the project context, then these events must also be communicated to the Security Office. These condition changes are also recorded in the PCS. The PCS record can be retired immediately or the record may be kept active for awhile, for example, until the next complete inventory. This wait may facilitate recordkeeping if the property happens to be recovered in the interim period. If the item is not recovered, the Status code indicating "unaccountable" is entered into the PCS record and the asset is retired from active status. For property that has been damaged beyond repair, the status code indicating "damaged beyond repair" is entered into the PCS.

Responsibilities

Operating Locations

The Research Foundation operations manager is responsible for ensuring that

 

 

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