CUI - Attch 1 - Property Reporting Requirements.docx

CUI//FED ONLY

49100425R0006 Attachment 1

PROPERTY REPORTING REQUIREMENTS

Deliverable F.009

a) Definitions. In addition to the definitions of Federal Acquisition Regulation (FAR) Subparts 2.101 and 45.101, the following definitions apply:

(1) “Accountable property” means any item of property acquired by capital lease, or with an acquisition cost of $5,000 or greater with a useful life of two years or more.

(2) “Acquisition cost for other than software" means the sum of costs for design, labor, materials, transportation, and related indirect or overhead expenses (including the capitalized cost of any expansions, extensions, conversions, additions, alterations and improvements to property) as calculated in accordance with Federal Accounting Standards Advisory Board’s Statement of Federal Financial Accounting Standards (SFFAS) No. 6 "Accounting for Property, Plant, and Equipment." Consistent with SFFAS No. 6, expansions, extensions, conversions, additions, alterations and improvements to property shall be capitalized.

(3) “Acquisition cost for software” means cost shall be calculated in accordance with SFFAS No. 10 “Accounting for Internal Use Software” by using the "National Science Foundation Software Property Asset Cost Worksheet.”

(4) “Acquisition date" means the Federal Government Fiscal Year that an item of property was accepted for use by the original contracting activity (either Government or commercial).

(5) “Asbestos Financial Report” means the report related to estimated liabilities and expenditures of both friable and non-friable asbestos related cleanup costs for Federal facilities and equipment. The liability for these cleanup costs will include all costs related to removing, containing and/or disposing of asbestos containing material (ACM) from property, or material and/or property that consist of ACM. These costs include all costs to successfully abate the ACM from the real property and all costs involved to safely dispose of the material. Estimates shall be periodically revised to account for material changes due to inflation, regulatory changes, etc.

(6) “Assignable lease” means leases of property that are not otherwise considered capital leases that reserve the rights of NSF, the Contractor, or subcontractor at any tier to unilaterally assign the lease to another organization selected by NSF.

(7) “Business Narratives” means a thorough, well-written document on the business processes as outlined in OMB Circular A-123. The processes are to provide sufficient depth and be presented in narrative form. Flowcharts may be included for visual presentation. They reflect an understanding, from beginning to end, of the underlying processes and document involved in each major transaction cycle.

(8) “Capital lease” means leases of property with minimum lease payments of $5,000 or greater, the leased property has a useful life of two years or greater, the minimum lease payment is being reimbursed to the Contractor as a direct cost, and the lease substantially transfers all the benefits and risks of ownership to NSF. Leases that meet one or more of the following criteria shall be considered to substantially transfer all the benefits and risks of ownership to NSF.

(a) The lease transfers ownership of the property to the Contractor at the end of the lease term.

(b) The lease contains an option for the Contractor to purchase or otherwise acquire the property at a bargain price.

(9) “Capital equipment” means any item of property acquired by capital lease with a minimum lease payment of $25,000 or greater or with an acquisition cost of $25,000 or greater, and a useful life of two years or more.

(10) “Commercial Off-the-Shelf (COTS) Software” means software that is purchased (including licensed software) from a vendor and is ready for use with little or no change, for which the purchase price is being reimbursed to the Contractor as a direct cost.

(11) “Contractor-Developed Software” means software that a Federal entity is paying a Contractor as a direct cost to design, program, install, and implement, including new software and the modification of existing or purchased software.

(12) “Construction-in-Progress” (CIP) means real property that is being constructed, but has not been accepted by NSF or is not otherwise ready for use.

(13) “Deferred maintenance” for facilities in Antarctica means maintenance that, if not performed, would result in the facility becoming inoperative or unsuitable for use. This definition is also referenced in the A-123 narrative for USAP plant, property & equipment.

(14) “Excess personal property” means personal property that no longer meets Agency needs, as determined by the agency head or designee, but has not yet been demolished or disposed of. In the case of NSF owned property, this property is to be included on the deferred maintenance list and categorized as ‘non-functional’. (GSA Federal Management Regulation, Subchapter B – Personal Property, Section 102-36.40.)

(15) “Freight Cost Model” means the model used within the USAP to reflect the cost of freight to the final Antarctic location of a purchased or transferred asset. A separate model for the USAP has been developed due to the fact that the transportation system uses a combination of both commercial and military transportation.

(16) “Gain-By-Inventory” (GBI) means property acquired by the NSF due to abandonment or transfer from Federal Agencies previously managing USAP. These properties were not transferred via the official Government document (SF-122) and were classified as NSF owned property as a result of the annual inventory process.

(17) “Half-year convention” means a method of calculation that recognizes a half-year of depreciation for the year a property item is available for use as determined by its acquisition date, and the year following the end of its useful life.

(18) “In-service date” means the month and year that NSF received title to an item of property.

(19) “Leasehold Improvements” (LHI) means an improvement of a leased asset that increases the asset's value. The expense of a LHI is carried as an asset that declines in value over time, as the value is depreciated over the life of the lease or the improvement, whichever is shorter.

(20) “Maintenance” means the act of keeping property in acceptable condition. It includes normal repairs, replacement of parts and structural components needed to preserve the property so that it continues to provide acceptable service and achieves its expected life. Maintenance excludes activities aimed at expanding the capability of property or otherwise upgrading it to serve needs different from, or significantly greater than, those originally intended.

(21) “Minimum lease payment” means the sum of all payments required for the right to use property for a stated period. This includes but is not limited to:

(a) The minimum rent required during the lease term; and

(b) Any payment(s) or guarantee(s) required at the end of the lease term, including: (i) any amount stated to purchase the leased property; (ii) any amount stated to make up any deficiency from a specified minimum; and (iii) any amount payable for failure to renew or extend the lease at the expiration of the lease term.

(22) “Net Gain or Loss” means the difference between the net book value and the amount realized on disposal, retirement, sale, exchange or donation of any particular item of property.

(23) “Non-accountable property” means any item of property with an acquisition cost of less than $5,000 that has not been determined to be sensitive.

(24) “Plant equipment” means personal property of a capital nature (including equipment, machine tools, test equipment, furniture, vehicles, and accessory and auxiliary items) for use in manufacturing supplies, in performing services, or for any administrative or general plant purpose. It does not include special tooling or special test equipment. (See FAR 45.101)

(25) “Property Reports” means reports to support the values posted in NSF’s general ledger and required for NSF’s external financial audit. These reports shall be substantiated by the Contractor’s financial accounting system and supporting documentation (e.g. Purchase Orders, shipping invoices, checks, etc.). These include the Accountable Property Report, Capital Equipment Report, CIP Report, Work-In-Process (WIP) Report, Real Property Report, Deferred Maintenance Report, and Asbestos Financial Report.

(26) “Real property” means land and rights in land, ground improvements, utility distribution systems, and buildings and other structures. It does not include foundations and other work necessary for installing special tooling, special test equipment, or plant equipment. (See FAR 45.101)

(27) “Sensitive Property” means property with an acquisition cost under $5,000 that is susceptible to theft, has a potential resale value on the open market, and/or is mission critical.

(28) “Software” means the application and operating system programs, procedures, rules, and any associated documentation pertaining to the operation of a computer system or program. “Internal use software" means software that is purchased from commercial vendors "off-the-shelf," internally developed, or contractor-developed solely to meet the entity's internal or operational needs. Normally software is an integral part of an overall system(s) having interrelationships between software, hardware, personnel, procedures, controls, and data. For further guidance refer to SFFAS No. 10 “Accounting for Internal Use Software”.

(29) “Valuation and Validation” means appraising or estimating the worth of something having economic or monetary value and to attest or confirm the accuracy and propriety of a financial item.

(30) “Work-In-Process” (WIP) means products that are in the process of being manufactured or fabricated but are not yet complete. WIP consists of the costs of direct materials, direct labor, direct purchased services, and indirect costs, including general and administrative and overhead costs. Costs coded as WIP should not be depreciated.

b) Property Report Requirements:

(1) General

(a) The Contractor shall submit Property Reports to NSF for all equipment identified as Government property in the custody of the Contractor (including equipment assigned to subcontractors and grantees).

(b) Monthly Reports shall be provided no later than the tenth day of each month. Quarterly Reports shall be provided quarterly no later than the tenth day after the month following quarter-end (i.e., January 10, April 10, July 10, October 10). Annual Reports shall be provided annually no later than the tenth day after the month following year-end (i.e., October 10). Except for the first report, the report submissions shall begin with the prior month/quarter/year ending balance as applicable based upon the frequency of the report.

(c) If the due date falls on a Sunday or Federal Holiday, the report is to be submitted by the following business day. If the due date falls on a Saturday, the report is to be submitted by the preceding business day.

(d) Each property report shall include a complete cumulative inventory as of the required submission date that also separately presents newly acquired, GBI, transferred assets, and disposed assets for the reporting period.

(e) A sheet-to-floor and floor-to-sheet inventory is to be completed per the agreed upon schedule and funding in the Annual Program Plan for Accountable Equipment, Capital Equipment (to include transfers-in and GBI), and Real Property (to include fixtures). Equipment that is considered sensitive and valued at less than $5,000 may be included in this inventory as a means of control.

(f) The straight-line method of depreciation shall be used to calculate depreciation expenses for Capital Equipment, Leasehold Improvements, and Real Property. Useful life shall be established in accordance with Internal Revenue Service Depreciation Guidelines. For certain specialized equipment, the IRS tables may not be applicable. In these situations, special depreciation schedules will be mutually developed between the Contractor and the NSF Division of Financial Management. Useful life shall be 39 years for Real Property. A half-year convention for recognizing depreciation shall be employed. Changes in useful life or salvage value shall be treated prospectively and accounted for in future periods. No changes shall be made to previously recorded depreciation.

(g) The Contractor shall maintain electronic copies of all documentation associated with the transaction cycle for all capital equipment and real property. Data captured shall be sufficient for audit purposes. The Contractor may be asked to provide automated transfers of this information into an NSF property management system. External and internal auditor required documentation is to be available upon request for all Property Reports. Examples include Purchase Orders, Request for Authorization forms, checks, lease agreements and approvals from NSF to transfer and/or dispose of property.

(2) Monthly Reports. For the months of October, November, January, February, April, May, July, and August, the following Property Reports are to be submitted to NSF using the monthly format:

(a) Capital Equipment/Software and Depreciation Schedule

(b) Real Property and Depreciation Schedule

(c) Construction-in-Progress (CIP)

(d) CIP supporting documentation to a reasonable level of materiality as agreed by the Contractor & NSF, per FAR requirements and all other applicable authoritative guidance. (Invoices, labor allocation reports, journal vouchers, etc.) Supporting documentation for Journal Vouchers (JV) should include the JV form and supporting documentation that will support the JV entry and would accurately support the financial event.

(e) Transfers In/Out

(f) Disposals

(g) Active WBS Listing (i.e., WBS Listing Analysis File)

(h) WBS CIP Questionnaire & Tracking Documents

(i) Invoice Cost Mapping

(3) Quarterly Reports. For the months of December, March, and June the following property reports are to be submitted to NSF in the formats designated:

(a) Capital Equipment/Software and Depreciation Schedule (monthly and quarterly format). All costs in the Capital Equipment Depreciation file should reflect the same data in the Maximo[footnoteRef:2] Database submission. A reconciliation should be completed between the Maximo Database file and the Capital Equipment Depreciation file prior to submission to NSF. [2: Maximo refers to the Maximo Application Suite which is the current asset management application software used by the incumbent contractor. ]

· Transfers In/Out (monthly and quarterly format)

· Disposals (monthly and quarterly format)

· Gain-By-Inventory (GBI) Reports (monthly and quarterly format)

· Gains and Losses PP&E Reports (monthly and quarterly format)

(b) Maximo Database (quarterly format)

(c) Capital Assets (quarterly format)

(d) Accountable Assets (quarterly format)

(e) Sensitive Assets (quarterly format)

(f) Real Property and Depreciation Schedule (monthly and quarterly format)

· Transfers In/Out (monthly and quarterly format)

· Disposals (monthly and quarterly format)

· Gain-By-Inventory (GBI) Reports (monthly and quarterly format)

· Gains and Losses PP&E Reports (monthly and quarterly format)

(g) CIP (monthly and quarterly format)

· Transfers In/Out

(h) Leasehold agreements (if applicable) (quarterly format)

(i) Freight Cost Model (quarterly format)

(j) Asbestos Statement Report (Clean-up Cost) (quarterly format)

(k) Capital Equipment Deferred Maintenance Report (quarterly format)

(l) Real Property Deferred Maintenance Report (quarterly format)

(m) Invoice Cost Mapping (monthly and quarterly format)

(n) Active WBS Listing (monthly format)

(o) WBS CIP Questionnaire & Tracking documents (monthly format)

(4) Annual Reports. For September, the following property reports are to be submitted to NSF in the formats designated:

(a) Capital Equipment/Software and Depreciation Schedule (monthly, quarterly, and annual format). All costs in the Capital Equipment Depreciation file should reflect the same data in the Maximo Database submission. A reconciliation should be completed between the Maximo Database file and the Capital Equipment Depreciation file prior to submission to NSF.

· Transfers In/Out

· Disposals

· Gain-By-Inventory (GBI) Reports

· Gains and Losses PP&E Reports

(b) Maximo Database (quarterly format)

(c) Capital Assets (quarterly format)

(d) Accountable Assets (quarterly format)

(e) Equipment under Capital Leases (if applicable)

(f) Explanation for Prior Period Adjustments

(g) Real Property and Depreciation Schedule (monthly, quarterly, and annual format)

· Transfers In/Out

· Disposals

· Gain-By-Inventory (GBI) Reports

· Gains and Losses PP&E Reports

· Operating or Capital Leases on Real Property (if applicable)

· Explanation for Prior Period Adjustments

(h) CIP (monthly, quarterly, and annual format)

· Transfers In/Out

(i) Leasehold Improvements (if applicable) (quarterly format)

(j) Freight Cost Model (quarterly format)

(k) Asbestos Statement Report (Clean-up Cost) (quarterly format)

(l) Capital Equipment Deferred Maintenance Report (quarterly format)

(m) Reap Property Deferred Maintenance Report (quarterly format)

(n) CIP Status Report & CIP Schedule Reports (monthly and quarterly format)

(o) Invoice Cost Mapping (monthly and quarterly format)

(p) Active WBS Listing (monthly format)

(q) WBS CIP Questionnaire & Tracking documents (monthly format)

(r) Sheet-to-Floor & Floor-to-Sheet Annual Inventory (annual format)

(s) Business Process Narratives (annual format)

(t) Auction Listing (Bi-Annual)

(5) Report Contents

(a) Accountable Property. These reports shall, at a minimum, include the following data elements:

· NSF Property Tag Number If part of a system is not tagged individually, the part shall be properly linked to the system.

· NSF or Contractor Property System Number

· Description

· Manufacturer/Make/Model

· Manufacturer’s Serial Number

· Indicate if GBI or through Government Transfer Order or from WIP

· Location

· Acquisition Date

· Acquisition Cost Include all costs needed to bring property to its intended use as described in SFFAS No. 6 “Accounting for Property, Plant, and Equipment” and any subsequent update.

· Weight/Square Footage

(b) Capital Equipment. These reports shall, at a minimum, include the following data elements:

· NSF Property Tag Number If part of a system is not tagged individually, the part shall be properly linked to the system.

· NSF or Contractor Property System Number

· Description

· Manufacturer/Make/Model

· Manufacturer’s Serial Number

· Indicate if GBI or through Government Transfer Order or from WIP

· Location

· Acquisition Date

· Useful Life

· Acquisition Cost Include all costs needed to bring property to its intended use as described in SFFAS No. 6 “Accounting for Property, Plant, and Equipment” and any subsequent update.

· Minimum Lease Payment (if applicable) If any NSF funds are used to pay the rent at any buildings used by USAP Contractors, a monthly report explaining if they are operating or capital leases and who is the lessee on these buildings must be listed

· Lease Term (if applicable)

· Lease Payment Period (if applicable)

· Non-Commercial Freight Costs

· Weight/Square Footage (only if used to determine non-commercial freight costs)

· Fiscal Year Beginning and Ending Balance

· Quarterly and Annual Depreciation Expense

· Accumulated Depreciation

· Net Book Value

· Amount realized on disposal, retirement, sale, exchange, or donation (excluding assignable leases)

· Net gain or loss (excluding assignable leases)

These reports shall separately present the following:

· Previously Acquired Property

· Transferred-In Property If transferred from a Federal Agency, provide the Agency Name.

Information on useful life is to be substantiated either by internal experts (if standard useful life information is not available) or the transferring agency.

· Property transferred from WIP is to be separately noted and reconciled to ending WIP balance

· Purchased Property

· Disposals

· GBI

· Equipment under capital lease

· Gains and losses

· Explanation for prior period adjustments

(c) Real Property. These reports shall, at a minimum, include the following data elements:

· NSF Property Tag Number/Building Number If part of a system is not tagged individually, the part shall be properly linked to the system.

· NSF or Contractor Accounting System Number

· Description/Function of the Property

· Previous Tracking Number in CIP.

This will crosswalk and identify items when they were in CIP to the transferred state as real property.

· Indicate if GBI or from CIP

· Location

· In Service date or Approved Conditional Occupancy date

· Useful Life

· Gross Square Footage or Acreage

· Acquisition Cost Include all costs needed to bring property to its intended use as described in SFFAS No. 6 “Accounting for Property, Plant, and Equipment” and any subsequent update.

· Minimum Lease Payment (if applicable)

· Lease Term (if applicable)

· Lease Payment Period (if applicable)

· Fiscal Year Beginning and Ending Balance

· Quarterly and Annual Depreciation Expense

· Accumulated Depreciation

· Net Book Value

· Amount realized on disposal, retirement, sale, exchange, or donation (excluding assignable leases)

· Net gain or loss (excluding assignable leases)

In addition, these reports shall separately present the following:

· Previously Acquired Property

· Transferred-In Property

· If transferred from a Federal Agency, provide the Agency Name Information on useful life is to be substantiated either by internal experts (if standard useful life information is not available) or the transferring agency.

· Property Transferred from CIP is to be separately noted and reconciled to ending CIP balance.

· Purchased Property

· Disposals

· GBI

· Operating or Capital Leases on Real Property

· Gains and losses

· Explanation for prior period adjustments

(d) Construction-in-Progress and Work-in Progress. These reports shall, at a minimum, present the following data elements:

· Contractor Accounting System Number

· Description/Function of the Property

· Location

· Weight of the components used in CIP.

· This is for the freight cost compilation to arrive at the total cost per SFFAS No. 6 “Accounting for Property, Plant, and Equipment”.

· Acquisition Cost to Date (material cost to be calculated at the time materials are acquired and/or identified for use in the project)

· Include all costs needed to bring property to its intended use as described in SFFAS No. 6 “Accounting for Property, Plant, and Equipment” and any subsequent update.

· Fiscal Year Beginning and Ending Balance

· A status report of all CIP and WIP projects to include a description of the project, percentage of work completed, and overall status of the project.

· Leasehold Improvements in construction

A download of the Contractor’s accounting system to reconcile to the CIP and WIP property report shall be submitted with the Property Reports.

(e) Leasehold Improvement (LHI). These reports shall, at a minimum, include the following data elements:

· NSF Property Tag Number/Building Number of the LHI related leased property.

· Contractor Accounting System Number

· Description

· Purchase Order/Subcontract Number

· Location

· Acquisition Date

· Life of the Lease

· Remaining years of the lease at LHI in service acquisition date

· Acquisition Cost Include all costs needed to bring property to its intended use as described in SFFAS No. 6 “Accounting for Property, Plant, and Equipment” and any subsequent update.

· Non-Commercial Freight Costs

· Weight/Square Footage (only if used to determine non-commercial freight costs)

· General & Administrative (G&A) and Overhead (OH) Costs

· Fiscal Year Beginning and Ending Balance

· Quarterly and Annual Depreciation Expense

· Accumulated Depreciation

· Net Book Value

(f) Deferred Maintenance reports are to be provided for Capital Equipment and Real Property.

Reports shall include information required under SFFAS No. 14 “Amendments to Deferred Maintenance Reporting” and any subsequent updates.

(g) Asbestos Financial Reports shall be provided for Real Property and include all friable and non-friable asbestos-related cleanup costs incurred. The report shall include the following information:

· Estimated amount of friable and non-friable ACM as of the period end date;

· Amount of asbestos remediation expenditures incurred during the reporting period;

· The invoice number that includes the asbestos remediation cost for reimbursement from NSF;

· Any adjustments (other than asbestos remediation expenditures) that increase or decrease the asbestos liability;

· Building Number to which the asbestos clean-up costs or adjustments are related; and

· Additional information as necessary in compliance with SFFAS No. 6, Technical Bulletin 2006-1, Technical Release 10, and any future updates.

(h) Business Process Narrative documents shall be provided to explain reporting process:

· Documents shall be reviewed and updated yearly to ensure that all contents reflect current processes.

· At a minimum, separate documents shall be created and maintained to explain the following processes:

· Deferred Maintenance valuation and reporting;

· Compilation of Freight Cost Model;

· Labor tracking and application to property;

· Application of G&A and OH costs to property;

· Determination of useful lives and computation of depreciation;

· Property Tracking Systems;

· How they are updated

· Integration with NSF’s and/or Contractor’s other Financial Systems.

· Inventory Process; and

· NSF Approval Process

· Disposals

· Acquisitions

· Transfers from Other

· Transfers for CIP, WIP, LHI, etc.

(i) The Freight Cost Model shall be prepared and submitted annually with the third quarter Property Reports.