For guidance on maintaining continuity of research and sponsored program activities during the COVID-19 crisis, please see ORSP’s Keep Discovering page.

Section 6: Acquisition

Government property may be acquired by (1) purchase through University Procurement, or (2) government-approved transfer from government surplus, or (3) loan from another government-funded project, or (4) by fabrication as an end product of the contract. Preacquisition screening of federally-owned excess property may be required prior to purchase if DoD or NASA funds are used (see Equipment Screening, Section 4).

Most federal agencies require that equipment be budgeted in the proposal. Federal property must come from a single funding source. In those instances where unforeseen equipment purchases become necessary, the PI (via the ORSP) must obtain prior approval from the sponsoring agency for acquisition of equipment. Disallowances or negative findings resulting from non-compliance of agency requirements will be the responsibility of the PI/Department.

Any equipment acquisition, whether budgeted in the proposal/award or approved by the agency after the award, must be reviewed by the Sponsored Programs Accountant prior to acquisition.

The process by which information relating to government-owned property included in new awards or in modifications to existing awards is flowed to the appropriate UM staff is generally this:

  • Upon receipt of a fully executed award that includes approved government property, the ORSP prepares a memo to Grant and Contract Accounting of the receipt and acceptance of the award, including a copy of the award, a budget and other internal supporting documentation as required. A notation is included on the memo indicating equipment and the amount approved in the award.
  • Grant and Contract Accounting sets up the account and notifies the PI and the ORSP via memo.
  • The PI/Departmental Administrator initiates purchase of the property via online SAP requisition and forwards supporting documentation to the Sponsored Programs Accountant.
  • Procurement routes the requisition of restricted funds to the Sponsored Programs Accountant for review/approval before purchase. As part of this review, the Sponsored Programs Accountant documents federal or non-federal ownership on the requisition.
  • Procurement generates a purchase order.
  • The item is received at the central Receiving dock and tagged with a UM property tag if it is coded as capital equipment.
  • Capital equipment items are entered into the SAP Property System.
  • The item is delivered to the department.
  • The PI/Departmental Administrator labels the item to indicate federal ownership.
  • The PI/Departmental Administrator adds the item to the departmental list of government-owned property and notifies the UFPA to add the item to the university list of government-owned property.
  • Upon receipt of an invoice for payment, Procurement enters vendor invoice information into the university SAP system. The SAP system reconciles invoices, goods receipts, purchase orders and related documents to ensure accountability for all items, attachments and accessories.
  • Grant and Contract Accounting reconciles financial records with property accounting records.