3.6. Placing Fabrications in Service
A fabrication must have a completion or in-service date. In most cases, fabrications should be completed and listed as in-service in the property record with sufficient time remaining during the period of performance for the functioning fabrication to benefit the award. This section describes the process for placing fabrications into service.
When construction of a fabrication is finished and no additional charges will be added to the fabrication ST, the department notifies PAO and provides the completion date and a confirmation that the charges assigned to the fabrication ST are accurate and appropriate. Once in service, PAO enters the total acquisition cost of the fabrication into the university property record and physically tags the fabrication. Contractor acquired sponsor funded fabrication component $5K and over are always considered equipment and cannot be depreciated. ÌýRefer to Cost Principles: 2 CFR 200 Subpart E.
If a fabrication is Government titled or considered a deliverable titled to the sponsor, the department notifies both PAO and OCG upon the completion of the fabrication. For Government titled fabrications, OCG will disclose the completion of the fabrication to the sponsor and request disposition instructions, if appropriate, at that time. For a deliverable fabrication that will be titled to the sponsor, the department will need to provide the date the fabrication will be delivered to the sponsor. All fabrications must be accounted for at the time of award closeout. See section 4.1 Federal Award Closeout for instructions on closeout processes.