This document discusses equipment management best practices for organizations receiving federal grants. It notes that proper equipment management is required by federal regulations to prevent loss and theft. One story describes a school system missing $48 million in equipment. The document outlines requirements for recording purchases, use, inventory reports, disposal, and insurance of equipment. It identifies challenges in meeting these requirements and provides best practices such as designating an executive owner and conducting routine audits. The document lists signs that an organization needs help with equipment management, such as using Excel to track assets and failing audits. It emphasizes the importance of people, process, and technology in effective equipment management.

1. Equipment Management Best
Practices to Meet the Grant
Requirements
E-ISG Asset Intelligence (www.e-isg.com)
February, 2016

2. Equipment Management – Why It
Matters?
 Know what you have, where they are – reduce costs
 You are required by CFR (Code of Federal Regulations)

3. Guidelines – Uniform Guidance
“A control system must be developed to ensure adequate safeguards to
prevent loss, damage, or theft of the property. Any loss, damage, or theft
must be investigated.” – §200.313 Equipment Management of 2 CFR 200,
Uniform Guidance (Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards)

4. A Story of Missing Equipment --
$50M
 Shelby County Schools missing $48.4 million in equipment; more than
54,000 items gone, including cars – Dec. 2003

5. Requirements
1. Record the purchase of the equipment and supplies
2. Record the use of the equipment and supplies
3. Inventory Reports
4. Record the disposal of the equipment and supplies
5. Insurance Coverage
Source: UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT
REQUIREMENTS FOR FEDERAL AWARD, Dec’15
_

6. Challenges in Meeting
Requirements
People Process
Technology

7. Best Practices
 Designate a senior executive as an owner of the equipment management
process.
 Evaluate their system for managing assets, both fixed and consumable
assets, to see if it is sufficient to support their equipment management
process.
 Set up routine inventory audit plans – who will conduct these audits and
what methodologies to use for these audits.

8. 10 Signs – You Need Help…
1. Microsoft Excel sheets or Microsoft Access database are used to keep track of equipment
2. The Accounting Department spent many hours to reconcile – every month
3. No periodic inventory audit checks
4. It is a struggle to provide accurate information to the insurance providers
5. There is no dedicated owner of the equipment management function
6. The organization believes that its fixed asset management software will be enough
7. The organization only tracks all items with >$5000 in purchase value, while not tracking the
other items.
8. The organization doesn’t have the business process and procedures in place.
9. The organization hasn’t conducted a training to its staff on the equipment management business
process and procedures in more than 6 months.
10. The organization has just failed the most recent financial audit on inventory control.

9. A Note about Technology
 Cloud services
 Allow sufficient time and focus to plan and implement technology
 People
 Project team
 timeline
 Identify Stakeholders
 Finance
 Facility
 IT

10. Thank you!
 Share your feedback by emailing us: sales@e-isg.com