Mississippi Administrative Code › Title 18 - HUMAN SERVICES › Part 8 - MDHS Subgrant Manual › Chapter 1 - Introduction › Rule 18-8-1.1 - Repeal Prior Rules/Manuals › Section 18-8-1.1-5 - Property Management

Current through June 25, 2024
Overview
Uniform standards on inventory management shall ensure the
					 effective use and control of subgrantee property and equipment under the
					 jurisdiction of Mississippi Department of Human Services (MDHS). Property
					 inventory management is applicable to all non-expendable equipment and property
					 having a useful life of one (1) year or more. All such property and equipment
					 shall be tagged and placed on the inventory. There are other specific items
					 also listed in this chapter that are required to be placed on MDHS' inventory
					 regardless of price. It will be the responsibility of the MDHS Subgrant
					 Property Officer, in collaboration with the MDHS Director of the Division of
					 Property, to ensure proper reporting of all equipment and property and that
					 such information is accurately recorded and maintained at the MDHS Division of
					 Property.
If equipment or property is authorized under an MDHS
					 subgrant, the property or equipment shall be purchased within ninety (90) days
					 from the beginning date of the subgrant, or within thirty (30) days of the
					 effective date of the modification which authorizes the purchase of property or
					 equipment. If it becomes necessary to purchase other property or equipment to
					 accomplish the purpose of the subgrant after the ninety (90) day beginning date
					 of the Subgrant/Agreement, then this purchase will require a modification to
					 the relevant section of the agreement.
No equipment or property shall be
					 purchased during the last thirty (30) days of the subgrant.
These time
					 limits are also applicable to property or equipment purchased with nonfederal
					 funds or donated by third parties that is used to match funds under an MDHS
					 subgrant.
This chapter serves as a minimum guide in the development
					 of the MDHS inventory management system as it relates to subgrants and is meant
					 to provide guidelines for the following:
1. Purchase approval
2. Purchase of used equipment
3. Inventory Control List
				  (MDHS-PROP-SE02)
4. Property
				  identification
5. Physical
				  inventory
6. Property which has
				  been lost, stolen, or damaged Property disposal or transfer
7. Subgrantee or program closeout
Subgrant property management implementation shall be the
					 responsibility of the subgrantee, which shall be verified by MDHS Division of
					 Property in conjunction with the Funding Divisions. The Division of Property
					 and the Funding Division shall notify the Division of Procurement Services
					 Subgrant Management Supervisor to address any property related issues. Property
					 which has been stolen shall be reported by the sub-grantee/contractor to the
					 Division of Property and the Funding Division within twenty-four (24) hours of
					 discovery.
Failure to abide by the property
requirements
					 outlined within this chapter
or any applicable Federal or State property
					 requirements shall be grounds for MDHS to implement any of the following
					 measures:
1. Suspend payment on any
				  properly submitted claims for the active Subgrant Agreement;
2. Suspend or terminate the active Subgrant
				  Agreement;
3. Deny any modification
				  for the active Subgrant Agreement; and
4. Deny any award of a future Subgrant
				  Agreement with MDHS.
Policy
Subgrantees may refer to
					 2 C.F.R. §
											200.310 through §
										200.327, or applicable Federal law
					 regulating property management for further guidance on property management
					 standards. All property and assets purchased through MDHS subgrants shall be
					 placed on inventory in accordance with the applicable Federal guidelines, the
					 statutes of the State of Mississippi, and the rules set forth in the State
					 Property Officers Manual. The State Property Officers Manual is available
					 online through the Mississippi Office of the State Auditor's website.
Purchase Approval:
All equipment purchased with subgrant monies shall be specifically authorized
					 through the Cost Summary Support Sheet and the Budget Narrative of the subgrant
					 agreement. Any deviation shall require a formal modification (long form) of the
					 subgrant. The equipment needs of the subgrantee shall be assessed by the
					 Director of the Division of Property in conjunction with the Director of
					 Program Staff who will analyze all prior subgrants/contracts and the equipment
					 needs expressed in the Scope of Services and the Terms and Conditions of the
					 current sub-grant. All means of acquiring the proposed equipment, e.g.,
					 leasing, shall be reviewed before authorization is given by MDHS.
Duplication of property or equipment purchases is
					 prohibited by statute. A capital lease or lease purchase agreement is
					 prohibited by statute.
The assessment criteria to be used for purchase approval
					 shall include, but is not limited to, the following:
1. How significant is the need cited to the
				  successful operation and completion of the project?
2. What is the total expense involved to
				  satisfy this need? Include all associated costs that are required for the
				  equipment or property.
3. Are there
				  hidden associated costs, i.e., maintenance, rent, shipping, freight, etc.?
				  Complicated items should have a full cost analysis prior to approval for
				  purchase.
4. Who will benefit from
				  the purchase of these items? Short-term contracts should not include the
				  purchase of equipment.
5. How long
				  will the need exist?
6. What will
				  be the consequences of foregoing such a purchase?
7. Should we rent, lease, or purchase the
				  items under consideration?
8.
				  Assess availability of needed items from surplus of used property from other
				  active/inactive sub-grantees, or from DFA Office of Surplus Property.
Note: All property or equipment purchased, in whole or in
					 part, with funds provided by MDHS, shall be held in trust by the subgrantee as
					 trustee for MDHS, and shall not be encumbered without the written or signed
					 approval of MDHS. The subgrantee shall record liens, or other appropriate
					 notices of record, that property or equipment has been acquired, or where
					 applicable, improved with funds provided by MDHS. Only Federal or State
					 property may be upgraded with MDHS funds. The use and disposition of such
					 property or equipment are prescribed by the MDHS Subgrant Manual.
Reference
					 2 C.F.R. §
												200.316
Purchase of Used Property and/or
					 Equipment
Subgrantees who wish to purchase used property and/or
					 equipment, must submit a written request and justification to the appropriate
					 MDHS Funding Division Director for approval, before proceeding with
					 procurement. This is in addition to the established purchase requirements set
					 out in the Procurement chapter of this manual.
Use of Property and/or Equipment under MDHS
					 Subgrants
The subgrantee shall use the property and/or equipment in
					 the project or program for which it was acquired as long as needed, whether the
					 project or program continues to be supported by Federal funds and shall not
					 encumber the property without approval of the MDHS. When no longer needed for
					 the original project or program, the subgrantee shall contact the MDHS Division
					 of Property, and request written authorization for the subgrantee to use the
					 equipment in connection with the subgrantees other federally-sponsored
					 activities, as required under federal regulations.
Reference
					 2 C.F.R. §
												200.439
Statement of General Policy - Property Inventory
					 Rules
Any equipment/property purchased through an MDHS Subgrant
					 shall be itemized by the Subgrantee on an inventory control list, regardless of
					 price.
In conformity with State Property regulations, equipment or
					 property items 1-12 listed below shall be included on inventory regardless of
					 the price as required by the Office of the State Auditor. All other items not
					 listed with a useful life of one year or more are required to be tagged by MDHS
					 Division of Property.
NOTE: Any equipment or property item(s) purchased that
					 contains a processor (e.g., but not limited to laptop, cell phone, iPad, etc.),
					 regardless of purchase price, shall be included on the Inventory List and shall
					 have an agency "Property of MDHS" sticker applied.
If authorized under an MDHS subgrant, items 1 -12 listed
					 below shall be listed on the Budget Narrative under the budget category of
					 Capital Outlay-Equipment regardless of the price.
1. Weapons
2. Camera and Camera Equipment
3. Two-way Radio Equipment
4. Televisions
5. Lawn Maintenance Equipment
6. Cellular Telephones
7. Computers/Computer Equipment, including
				  Printers
8. Chain Saws
9. Air Compressors
10. Welding Machines
11. Generators
12. Motorized Vehicles
Inventory Control List
All non-expendable equipment or property purchased with (or
					 used to match) federal and/or state funds shall be listed on an Inventory
					 Control List (MDHS-PROP-SE02). The Inventory Control List must be submitted to
					 the MDHS Subgrant Property Officer for any new and/or additional equipment
					 purchased once the equipment or property has been received and paid for by the
					 subgrantee. Both the subgrantee and the MDHS Subgrantee Property Officer shall
					 maintain a complete and up-to-date list of subgrantee equipment or property.
					 The Subgrantee shall keep such list in a place where there is easy and
					 immediate access in case of audits. The Subgrant Property Officer shall
					 maintain its complete up-to-date list in the MDHS Division of Property. The
					 MDHS Subgrant Master Inventory shall also be maintained in the MDHS Division of
					 Property by the Subgrant Property Officer. It shall be the responsibility of
					 the MDHS Division of Property and the Subgrant Property Officer to provide a
					 copy of the Inventory Control List for each subgrant that authorizes property
					 or equipment.
Information for the Inventory Control List shall
					 include:
1. Subgrantee's Name, Address,
				  and Telephone Number;
2. Agreement
				  Number, Grant Identifier Number, Subgrant beginning and ending dates and/or
				  modification, if applicable;
3.
				  Total Equipment amount budgeted;
4.
				  Item description, manufacture's name etc.;
5. Manufacturer's Serial Number;
6. Manufacturer's Model Number;
7. Vendor Name;
8. Purchase Date or Invoice Data;
9. Check Number and/or Voucher
				  Number;
10. Cost plus tax, freight
				  or shipping charges (if applicable);
11. Location of equipment or property
				  address;
12. MDHS Inventory Number
				  assigned by the MDHS Property Division; and
13. Ultimate disposition date, including data
				  of disposal and sales price of the method used to determine fair market value
				  where a sub-grantee compensates the federal agency, MDHS funding source for its
				  share.
All changes in status, such as, but not limited to,
					 location and program use, require that the subgrantee update the Inventory
					 Control List, and notify the appropriate Funding Division in writing within a
					 10-working day period.
Property Identification
All subgrantee equipment and/or property purchased with
					 Federal and/or State funds or provided as match for Federal and/or State funds,
					 shall have permanent identification numbers assigned by the MDHS Property
					 Division Subgrantee Equipment Inventory Tagging Form MDHS-PROP-SE01). Permanent
					 identification shall be made by using metal tags, vinyl tags, etching, or other
					 appropriate means of identification. The equipment or property purchased
					 through subgrants/agreements awarded by MDHS shall be tagged and accounted for
					 by the MDHS Property Division. The Division of Monitoring will verify equipment
					 and/or property purchases and whether or not they are tagged during the
					 monitoring review process.
Physical Inventory
A periodic physical inventory shall be performed by all
					 subgrantees at least twice yearly, using the MDHS Inventory Control List
					 (MDHS-PROP-SE02) and submitted to the appropriate Funding Division and the
					 Subgrant Property Officer. The physical inventory shall consist of an actual
					 accounting of all subgrantee/lower-tier sub-recipient equipment or property on
					 the Subgrantee location listing and/or Inventory Control List, acquired with
					 (or used to match) Federal and/or State monies under an MDHS subgrant. Property
					 records pertaining to the purchase of equipment and/or property shall be
					 inspected for correctness before items are identified and tagged for inventory
					 control.
Location and use of equipment and/or property shall be
					 verified by the authorized and designated MDHS Subgrant Property Officer who is
					 in the MDHS Division of Property. Subgrantees must contact the MDHS subgrant
					 Property Officer to report any property and/or equipment that is not being
					 utilized or managed under the terms of the subgrants. Any such property and/or
					 equipment not being utilized or managed under the terms of the subgrants shall
					 be recovered and/or redistributed with approval by the MDHS Property Officer in
					 conjunction with the Director of Property.
Should a subgrant be terminated or not renewed, any
					 equipment and/or property purchased under the subgrant with public funds or
					 MDHS funds shall neither be transferred to another location nor remain at the
					 present location under a new subgrant with a different subgrantee, without the
					 prior written approval from MDHS. The MDHS Inventory Transfer Form (MDHS -
					 PROP-114B) shall be completed and submitted to the MDHS Property Division to
					 the attention of the MDHS Subgrant Property Officer.
Lost, Stolen, or Damaged Equipment or
					 Property
A subgrantee shall submit in writing to the MDHS Division
					 of Property, within twenty-four (24) hours of discovery, a detailed explanation
					 of any stolen, misused or unaccounted for equipment and/or property. The MDHS
					 Division of Property and the designated MDHS Subgrant Property Officer will
					 then contact the MDHS Director of Administrative Services and report the
					 incident utilizing the MDHS Division of Property reporting system to identify
					 the lost, stolen, or damaged subgrant equipment and/or property. The MDHS
					 Division of Property may initiate an investigation to determine the cause and
					 culpability of the matter as necessary. In case of theft, robbery or mysterious
					 disappearance, the local police or sheriff's department should be notified. If
					 so notified, the name of local police or sheriff's department official and the
					 date of the loss shall be included in the agency report. If such was not
					 reported to a local police or sheriff's department at the time of the
					 discovery, a complete explanation of such failure shall be provided. A copy of
					 the police or sheriff's department report shall be forwarded with a letter of
					 explanation to the MDHS Director of Property, the Subgrant Property Officer,
					 and the Director of Administrative Services. Additionally, if equipment loss
					 occurs at the home of an employee of the subgrantee, the employee shall provide
					 a written statement from his/her insurance carrier indicating whether or not
					 the stolen or lost item was paid for under his/her homeowner's or car insurance
					 policy. The MDHS Subgrant Property Officer and Director of Property Division
					 shall review the information and provide the MDHS Director of Property a
					 recommendation of action to be taken, if appropriate.
Liability
The subgrantee is required to maintain enough insurance
					 coverage for real property and equipment
acquired or improved with
					 Federal funds
that is at least equivalent to insurance maintained on
					 non-Federally funded real property or equipment. The subgrantee is not
					 responsible for insuring Federally-owned property or equipment unless required
					 by the terms and conditions of the Federal award. (Refer to
					 2 C.F.R. §
											200.310 for guidance).
MDHS has the authority to recover the value of any missing
					 property. If property is determined to be missing, an MDHS investigation may be
					 initiated to determine the cause and culpability. If an investigation leads to
					 negligence or misconduct with regards to the missing property, a demand may be
					 made against the head of the subgrantee agency, the agency's property officer
					 and/or the appropriate supervisor/director or employee.
Property Disposal or Transfer
Subgrantees shall notify, in writing, the MDHS Division of
					 Property and the MDHS Subgrant Property Officer requesting authorization for
					 disposal or transfer when an item is either no longer needed or useful to the
					 implementation and objective of the program. The Division of Property and/or
					 the MDHS Subgrant Property Officer will conduct an on-site visit if necessary,
					 regarding the request. The MDHS Executive Director is ultimately responsible
					 for the approval and/or denial of the disposal request.
The subgrantee must include the following information in
					 the notification which can be obtained from the Inventory Control List.
1. Inventory Number assigned by Inventory
				  Funding Source
2.
				  Description
3. Purchased
				  Price
4. Dollar Value
5. Agreement Number
6. Grant Identifier Number
7. Sub-grant Beginning and Ending
				  Dates
8. Reason for Disposal
Upon completion of an on-site visit, the MDHS Subgrant
					 Property Officer and/or the Director of Property shall decide the proper means
					 of disposal in accordance with applicable Federal and state regulations. (Refer
					 to 2 C.F.R. §
												200.311 through §
											200.315 and State Property
					 Officer's Manual).