Effective Date: October 29, 2015
Expiration Date: May 18, 2024
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4.1.1 This chapter sets forth the accounting standards and policies related to NASA's personal property to assure compliance with statutory and regulatory requirements. These requirements ensure financial control over NASA-owned personal property, including NASA personal property in the possession of contractors.
4.1.2 This chapter applies to all NASA-owned personal property, including NASA personal property in the possession of contractors, as well as equipment acquired or furnished under NASA grants and cooperative agreements with educational institutions and non-profit organizations. NASA-owned equipment in the possession of a contractor, grantee, or cooperative agreement partner includes equipment provided by NASA, as well as equipment acquired or fabricated by the contractor, grantee, or cooperative agreement partner. This chapter does not apply to items in which NASA has only a reversionary interest, (see paragraph 1.3.2.a in this NPR)
4.2.1 Refer to Section 1.6 of this NPR document.
4.3.1 Personal property can be classified as either collateral or non-collateral equipment, depending on the nature of the attachment of the equipment to and severability from a facility project.
4.3.2 Collateral equipment is not severable and is considered part of a facility in which it is installed. Examples of collateral equipment include building-type equipment, built-in equipment, and large, substantially affixed equipment normally installed as a part of a facility project, such as construction or modification. Collateral equipment will be classified as real property as part of the facility in which it is being installed. Refer to Chapter 3 of this NPR document.
4.3.3 Non-collateral equipment, when acquired and used in a facility or test apparatus, can be severed and removed after construction without substantial loss of value or damage to the equipment or the premises where it is installed. Non-collateral equipment will be classified as personal property and capitalized based on the criteria outlined in this chapter.
4.4.1 The following capitalization criteria apply to acquired and fabricated personal property. NASA shall capitalize individual items acquired by purchase, transfer, donation, or exchange that meet all of the following criteria:
a. Have a total cost (see Section 2.2) of $500,000 or more.
b. Have an estimated useful life of two years or more.
c. Are not intended for sale in the ordinary course of operations.
d. Have been acquired or constructed with the intention of being used, or being available for use, by NASA.
e. If acquired for an R&D project, there is a reasonable expectation (e.g., slightly greater than 50 percent likelihood) that the item will be used in another program/project(s) that has not yet commenced.
18.104.22.168 Items not meeting the above criteria or those specifically identified as prototypes, or test articles are considered R&D costs and are expensed in the period incurred.
22.214.171.124 Personal property PP&E items acquired as part of a bulk purchase that individually meet the capitalization criteria should be capitalized in accordance with the policies established in this NPR. If the cost per item purchased in bulk does not meet the capitalization threshold, the bulk purchase must be expensed in the period acquired.
4.4.2 Modifications to existing personal property are considered single events and should be capitalized when the modifications have an individual cost of $500,000 or more and meet one of the following criteria:
a. Extend the useful life of the asset by two years or more.
b. Enlarge or improve its capacity.
c. Upgrade it to serve needs different from, or significantly greater than, those originally intended.
126.96.36.199 Modifications that do not meet the capitalization criteria are expensed.
4.4.3 Costs of acquiring, fabricating, or modifying personal property meeting the capitalization criteria will be segregated for identification and tracking through the establishment of unique WBS elements with capital asset indicators.
4.4.4 Maintenance costs incurred to maintain an asset in a useable condition do not meet the criteria for capitalization. Therefore, these costs are expensed when incurred.
4.5.1 WIP (Assets Under Construction).
188.8.131.52 Costs of new fabrication or improvements of personal property that meet the capitalization criteria outlined above will be captured as WIP through the establishment of unique WBS elements with capital asset indicators of AUC until the asset is placed in service.
184.108.40.206 The status of each new fabrication or capital improvement project recorded as WIP shall be monitored on a monthly basis based on the percentage of completion. Once a project has reached 90 percent completion, information must be obtained to determine if the PP&E has been placed in service so that the PP&E can be recognized on a timely basis.
220.127.116.11 When PP&E being recorded in WIP is complete, the total capital cost recorded as WIP will be transferred to capital PP&E. The capital balances transferred from WIP must be supported by sufficient supporting documentation, and any variances between the amount transferred and the supporting documentation must be reviewed and approved by NASA- - Agency Director of Financial Management prior to processing any manual adjustments.
4.5.2 In general, NASA shall recognize personal property PP&E when title to the asset passes to NASA. Title passage will occur either at the time of delivery and acceptance by a Government official or at an earlier contractually specified time. In the case of fabricated PP&E, the PP&E must be recorded as WIP until placed in service, at which time the balance will be transferred to capital PP&E.
18.104.22.168 For purchased equipment, the recognition date will be based on the shipping terms of the contract or purchase order. This will be the date shown on the receiving and inspection report or equivalent source document evidencing the receipt, passage of inspection, and acceptance by the Government unless the contract or purchase order provides other specific terms of title passage.
22.214.171.124 For General PP&E assets acquired by a contractor on behalf of NASA, the recognition date should be based upon delivery or constructive delivery either to the contractor performing the service or to a NASA facility. Delivery or constructive delivery must be based on the terms of the contract regarding delivery, receipt, and acceptance.
126.96.36.199 When NASA-owned General PP&E assets are acquired by a grantee or cooperative agreement partner, the recognition date should be based upon delivery or constructive delivery to the location where the PP&E will be used in support of the grant or cooperative agreement.
4.6.1 Capitalized values will include all costs incurred to bring PP&E to a form and location suitable for its intended use, as outlined in Section 2.2 of this NPR.
188.8.131.52 If an item, as originally installed, is an aggregate of components that could stand alone (as opposed to parts) and are severable, those components will be individually subjected to the capitalization criteria and only those components that meet the criteria are to be originally capitalized. If an item, as originally installed, is an aggregate of components that could not stand alone and are not severable, those components must be subjected to the capitalization criteria in aggregate.
184.108.40.206 If a personal property item that meets the capitalization criteria is received and accepted by a NASA official prior to the end of the fiscal year and is capitalized, any related remaining cost paid in the next fiscal year will be included in the capitalized value.
220.127.116.11 If an item does not meet the capitalization threshold at the end of the fiscal year, but related remaining costs paid the next fiscal year result in the total cost of the asset meeting the capitalization threshold, the entire cost of the asset should be capitalized in the next fiscal year (assuming the other capitalization criteria are met).
4.6.2 Personal property that is identified during inspections or inventories that has not been recorded will be valued at its estimated value based on similar items, engineering estimates, or other reasonably supportable methodologies, if the original supporting documentation is not available. The capitalization threshold in effect on the date the item is discovered should be applied to determine whether to capitalize the item.
See Section 2.5.
See Section 2.6.
See Section 2.7.
See Section 2.4.3.
See Section 2.4.2.
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