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PMM 2.4 Deliverables to Sponsors

Last Revised Date:
July 1, 2026
Responsible Unit(s):
Property Management
Responsible Unit Email(s):
FNSV-PropertyManagement@arizona.edu
Manual:
Property Management Manual
Status:
Active

Purpose and Summary

The purpose of this policy is to define what can be considered as Deliverable Equipment and to provide direction to University of Arizona (University) departments on cost accounting for a Deliverable. 

Scope

This policy applies to all University locations and units, including all University extensions, satellite locations, and off-site campus units, both domestic and international.

Note: This policy covers equipment with components purchased on sponsor accounts where the final fabrication will not be used by The University in any way but will instead be delivered to a sponsor.

Policy

  1. Deliverable Equipment must be accounted for in the University official system of record with a property D-tag number and follow the cost accounting requirements outlined here. 
  2. Government regulations require that the cost of Deliverable Equipment be computed in accordance with Generally Accepted Accounting Principles. These principles must be followed to ensure accurate administration, accounting, classification, stewardship, and reporting of Deliverable Equipment. 
  3. Included and excluded costs in calculating the value of a Fabricated Equipment are listed below.
    1. Included in the asset value. The following expenses are included in calculating the value of a Deliverable:
      1. Raw materials and parts to be affixed to the equipment. Quantities of goods acquired must be reasonable and directly allocable to the specific fabrication.
      2. Reasonable start-up supplies and parts to be incorporated in or otherwise consumed in the research and development of the fabrication
      3. Shipping and handling
      4. Third party installation charges from outside vendors or authorized internal service centers
    2. Excluded from the asset value. The following expenses are not included in calculating the value of a Deliverable:
      1. Production Equipment
      2. Documentation
      3. Repair or maintenance expense
      4. Administrative support
      5. Enhancements that are not integrated into the equipment
      6. Facilities and Administrative (F&A) costs
      7. Department Labor
      8. Payroll Expenses
      9. Travel
  4. Unused material remaining after the completion of the fabrication must be accounted for and reported according to University policies, applicable federal regulations and/or the terms and conditions under the sponsor award. All inquiries concerning handling of any excess material must be directed to Sponsored Projects Services (SPS) - Property team.
  5. The Deliverable Equipment may require use of Sponsor Titled Acquired Equipment or Sponsor Titled Furnished Equipment during fabrication. Standard capital movable equipment policy and procedures will be applied to the acquisition of Production Equipment.

Procedures

ResponsibilityAction
Principal Investigator & Department
  1. At time of proposal, include Deliverable Equipment in the grant proposal equipment line item budget and budget justification submitted in UAccess Research for review and approval by Sponsored Projects Services (SPS).
  2. Upon receipt of award and prior to first purchase, the department shall complete section I of the Fabrication/Deliverable Equipment Request form and submit via email to Sponsored Projects Services at property@arizona.edu.
Sponsored Project Services
  1. Review and complete section II of the Fabrication/Deliverable Equipment Request form. 
  2. Forward to Financial Services, Property Management for D-Tag pre-assignment.
Property Management
  1. Review and complete section III of the Fabrication/Deliverable Equipment Request form.
  2. Log the pre-assigned D-tag number until the first purchase is made, and document is created in UAccess Financials.
    1. The required elements of information are Tag Number, Description/Name, Class Number, Manufacturer-University Construction, Model or Design Number, Serial Number (usually none), Date, Department Number, Inventory Unit Number, Quantity, Unit of Measure, Building Number, Campus Number, Total Cost, Ownership/Title, Agency Name, Acquisition Method and Capitalization Type. 
  3. Provide the completed form to SPS and the PI/department.
Principal Investigator & Department
  1. Once approval is obtained from SPS and the pre-assigned asset tag number is received from Property Management, the department may proceed with purchasing the components for the Deliverable Equipment. Below are items to consider when creating a document in UAccess Financials:
    1. On the first purchase document, the completed Fabrication/Deliverable Equipment Request form shall be attached to the notes section of requisition.
    2. Each purchase must reference the University pre-assigned D-tag number.
    3. Allowable purchases are charged to object code 7760 (Capital Equipment - Other Owned).
Sponsored Projects Services & Property Management
  1. Review and process all purchase documents for correct usage of object codes in UAccess Financials.
Property Management
  1. Create and maintain asset records in UAccess Financials as purchases are made.
    1. Increase the recorded value of each D-tag asset as expense documents are received and paid.
Sponsored Project Services
  1. Complete any required property reports to sponsors, including annual report on Work-in-Process when applicable.
Principal Investigator & Department
  1. Department or PI communicates to SPS Property via email at property@arizona.edu that deliverable is completed and shipped to the sponsor. Shipping documents are to be attached to the email.
Sponsored Project Services
  1. SPS Property prepares and submits a Property Record Change Form (PRCF) to Property Management to remove asset(s) from UAccess Financials’ Capital Asset Management (CAM) Module. 
Property Management
  1. The asset is retired in CAM based on the PRCF shipping document (using External Transfer retirement reason).

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