SA Equipment

4540 - SA Equipment (Rev. 1, 05-21-04) 4540A - Definition and Quality of Office Equipment (Rev. 1, 05-21-04) Items that are of a non-expendable nature, that is, have a life expectancy of one year or more and a probable resale, salvage, or trade-in value, are classified as office equipment if they have a unit cost in excess of $25. However, if State law specifies a different amount, the amount so specified shall apply. The quality of items should not exceed the quality of similar office equipment in general use in other offices of the agency. 4540B - Title to and Accountability (Rev. 1, 05-21-04) Title to and accountability for office equipment purchased for State survey program purposes, or for shared use with other State or Federal programs, shall rest with the State. However, the purchase price(s) of individual pieces of office equipment may be shared with other State and/or Federal programs. Where the costs of equipment are prorated between Medicare and other programs, the same proration must be used in crediting residual value to the Medicare program of all disposed equipment. Where Medicare funds are used to fully fund equipment, 100 percent of the residual value must be credited to Medicare. 4540C - Purchase of Equipment (Rev. 1, 05-21-04) 1 - State Practice For equipment purchased for the State survey program, follow established State law or regulations for procurement of equipment. 2 - Purchases Related to Budget Process Funds for equipment purchases will be requested by SAs and approved by CMS as part of the budget process. The SA should anticipate the bulk of its equipment needs for the budget period during pre-budget planning, and request needed equipment in the budget submittal. To estimate equipment needs, the SA should examine the condition of equipment on hand, and consider any proposed staff increases. The total expended for equipment during a budget period cannot exceed total funds allocated for equipment for that period without prior approval of the RO. Budget requests should, therefore, include items which were approved in the prior budget period but which will not be paid for in that period. 3 - Items Deleted by CMS After reviewing an SA’s estimate for equipment, CMS may delete an item or restrict the purchase of such an item. When CMS deletes an item, the SA may submit another request with added supporting information. However, unless the restriction is removed, the item cannot be purchased with Federal funds. 4 - Purchase of Items Not Included in Budget Submittal Although the SA is expected to anticipate the bulk of equipment needs, occasionally a need for equipment that was not included in the budget submittal may arise. The SA must receive approval of the RO, before purchasing such items of equipment. However, if sufficient uncommitted funds are available, the SA may purchase items not included in the budget approval without prior RO approval when the unit cost of the item is $50 or less, and the item is of a kind approved in any previous budget period, e.g., tables, chairs, coat racks. Such items should be listed and identified in the equipment schedule submitted at the end of the quarter in which purchased. 5 - Reporting Equipment The SA is required to maintain an inventory of equipment following usual State inventory practices, and make an annual physical count of equipment items for comparison against the inventory records. In the event of equipment loss and/or substantial damages due to theft, fire or weather, the SA submits a statement concerning such losses to the RO as soon as possible. 4540D - Rental of Equipment (Rev. 1, 05-21-04) Situations may occur where it will be advisable to rent certain office equipment instead of purchasing it. Providing rental of office equipment is not contrary to State law or regulations, expenditures for such rental are considered “necessary” if: • The rental is for a short period of time; • The equipment is not available for purchase (e.g., leased telephone lines, electrostatic photocopy machines); or • Proof that renting rather than purchasing an item of equipment is advantageous in terms of cost. The SA secures prior approval of the RO if it wishes to rent equipment for more than 90 days.