real v. personal property a landmark case ivan graff, pe cfm, cce, leed ap office of engineering and...
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Real v. Personal Property
A Landmark Case
Ivan Graff, PE CFM, CCE, LEED AP
Office of Engineering
and Construction
Management
Look at the notes too.
2011 FIMS / RE Workshop
Agenda
June 16, 2011 2
Why do we distinguish between real and personal?
Recognizing the differences
Details on personal property
Details on real property
Dean Martin
2011 FIMS / RE Workshop
What’s Behind the Terms
June 16, 2011 3
Personal property may or may not accompany a real property sale
Depreciation rules differ between personal and real property
Possession and title RIGHTS may vary (less important to federal owners)
2011 FIMS / RE Workshop
Property Definitions
Personal Real
June 16, 2011 4
41 CFR 102-36.40 Government-wide
41 CFR 109-1.100-51 DOE – specific
DOE Accounting Handbook10.3(a)(1)
DOE G 580.1-1 Referenced in O 580.1
41 CFR 102–71.20 Government-wide
DOE Accounting Handbook 10.2(a)(1)
DOE O 430.1B OECM Memo.
02/23/10
2011 FIMS / RE Workshop
Comparing Personal and Real
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R E
A L
P E
R S
O N
A L
Immobile Movable
Always Tangible
Tangible &
Intangible
Annual Inventory
AnnualInventory
*
All Items Reported
Not All Reporte
d * Biennially for equipment
2011 FIMS / RE Workshop
Capitalization Threshold
June 16, 2011 6
Current Proposed CurrentReal Property Personal
Property
$0$50,000
$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000
$50,000
$500,000
$5,000
2011 FIMS / RE Workshop
Examples of Real Property
June 16, 2011 7
Buildings
Utilities
Land
Roads, Walks, Bridge
s
Walls, Poles, Towers
DOE O 430.1B
“Prefabricated
Movable Structure
s”
Minerals in Land
2011 FIMS / RE Workshop
Examples of Personal Property
June 16, 2011 8
Motor Vehicl
es
Equipment
Sensitive
Items
Minerals &
Precious
Metals
Stock Materia
lsPotable
Alcohol
High Risk
Property
Energy Related
Laboratory
Equipment 41 CFR 109
DOE O 580.1
governing regulation
2011 FIMS / RE Workshop
Mobile Property
June 16, 2011 9
Is this real property?
Temporarily personal property?
2011 FIMS / RE Workshop
June 16, 2011 10
Mobile Refinery
Moveable Oil Rig?
2011 FIMS / RE Workshop
Hot Cells
June 16, 2011 11
2011 FIMS / RE Workshop
Hot Cells
June 16, 2011 12
2011 FIMS / RE Workshop
Hot Cells
June 16, 2011 13
2011 FIMS / RE Workshop
June 16, 2011 14
Related Personal Property
Laboratory
Equipment
2011 FIMS / RE Workshop
June 16, 2011 15
Experimental Equipment
Utility Generation
2011 FIMS / RE Workshop
June 16, 2011 16
Security Equipment Installed on a Structure
Security Equipment
Installed on a Building
2011 FIMS / RE Workshop
June 16, 2011 17
More on:
PERSONAL PROPERTY
2011 FIMS / RE Workshop
Spare Related Personal Property
June 16, 2011 18
Say the picture on the right has spare equipment
The spares are for related personal property, essential to a real property asset
What do you call the spares?
Answer: Trade Fixtures
2011 FIMS / RE Workshop
Personal Property Data Tracked
June 16, 2011 19
Contract number or equivalent code designation
Acquisition document number and date
Asset type Property control number Description of item
[nomenclature, serial number, Federal stock group or national stock number (if available)]
Manufacturer Model number Unit acquisition cost (including
delivery and installation cost, when appropriate)
Depreciated value Unit of measure Quantity received, fabricated,
issued, or on hand Individual and organization
accountable for the property Location of property Use status (active, storage,
excess, etc.) High risk designation Any other data required by
contract Disposition document
reference and date Condition code
2011 FIMS / RE Workshop
Sunflower Database (1 of 4)
June 16, 2011 20
2011 FIMS / RE Workshop
Sunflower Database (2 of 4)
June 16, 2011 21
2011 FIMS / RE Workshop
Sunflower Database (3 of 4)
June 16, 2011 22
2011 FIMS / RE Workshop
Sunflower Database (4 of 4)
June 16, 2011 23
2011 FIMS / RE Workshop
Personal Property Management Program Order Revision
June 16, 2011 24
Issued draft in March 2011
Expands the scope to include: High Risk Personal
Property Firearms, Ammunition,
and Explosives More controlled
substances and hypodermic needles
Expands data collected Utilization
2011 FIMS / RE Workshop
June 16, 2011 25
More on:
REAL PROPERTY
2011 FIMS / RE Workshop
Buildings vs. Structures
June 16, 2011 26
What’s a building? What’s a structure?
Can I have a structure in a building? Can I have a trailer in a building? Can I have a building in a building?
FIMS Users
Guide & Usage Codes
Depends on how you
manage the asset(s)
2011 FIMS / RE Workshop
Weak Usage Codes: Buildings
June 16, 2011 27
299 OTHER INSTITUTIONAL BUILDINGS
607 OTHER BUILDINGS TRADES SHOPS
709 OTHER SUPPORT LABS
793 MULTI-FUNCTION RESEARCH/LAB BUILDING
801 OTHER
2011 FIMS / RE Workshop
Weak Usage Codes: Structures
June 16, 2011 28
1209 OTHER, AIR TRANSPORTATION SYSTEMS
1309 OTHER, WATER TRANSPORTATION SYSTEMS
1409 OTHER, RAILROAD TRANSPORTATION SYSTEMS
1709 OTHER, VEHICULAR TRANSPORTATION SYSTEMS
2009 CATCHALL 2609 OTHER, RECLAMATION AND
IRRIGATION 2809 OTHER, FLOOD CONTROL
AND NAVIGATION 2909 OTHER, MONUMENTS AND
MEMORIALS 3009 OTHER, RESEARCH AND
DEVELOPMENT
3209 OTHER, ENERGY RESEARCH ACCELERATORS
4009 OTHER, STORAGE 4109 OTHER, WATER STORAGE 5009 STRUCTURES, INDUSTRIAL,
OTHER 5509 OTHER, PLANTS (SEWER) 6008 OTHER, SERVICE
STRUCTURES 6009 OTHER, OTHER SERVICE
STRUCTURES 7009 OTHER, COMMUNICATIONS
SYSTEMS 7409 OTHER, SECURITY SYSTEMS 8909 OTHER, ELECTRICAL
DISTRIBUTION SYSTEMS
2011 FIMS / RE Workshop
June 16, 2011 29
Questions & Comments
202-586-8120
Sammy Davis, Jr.c. 1960In Las Vegas, NV