55 Pa. Code § 3170.77 - Ownership

(a) Generally. Fixed assets purchased with the Department funds are the property of the Department and the county, based on a prorated ratio of the value for services funded on a State/county basis. The only exception to this policy is mortgaged real estate which is owned by an agency and charged as a rental expense under § 3170.52(c) (relating to rent).

(b) Title to fixed assets under contracts or purchase of service agreements. During the performance of the contract/agreement, title to fixed assets shall rest with the purchaser. During the performance and within 120 days after the termination or cancellation of the agreement, the purchaser shall not sell, donate, or dispose in any way or part, equipment purchased in full or part with county children and youth agency funds without written permission from the source of those dollars.

(1) Upon renewal of the agreement, fixed assets purchased under the original agreement or subsequent agreements shall be subject to this subsection.

(2) Upon termination or cancellation of the agreement, title to fixed assets shall revert to the funding source. Within 120 days of termination/cancellation, the funding source shall at its discretion:

(i) Take possession and reimburse other funding parties for their percentage of the remaining value based on an independent appraisal.

(ii) Direct that the equipment be sold according to an independent appraisal reflecting an acceptable fair market value of the item. The proceeds are then returned to the funding source and any other funding parties based on the percentage of their contribution.

(iii) Allow the fixed assets to be retained by the purchaser with an agreed amount being reimbursed to the funding source.

(c) Title to fixed assets under Department reimbursement. Title to an asset purchased by the counties using grant monies shall remain with the county agency.

(d) Disposal of assets. The county or agency may dispose of assets purchased under this subsection at its discretion. However, income received by the county or county agency when disposing of these assets shall be counted as a revenue to the agency, and be used to reduce the gross expenditures which the agency submits for Departmental financial participation.

(e) Reimbursement of Department. If a county or county agency transfers equipment from the county children and youth program the county or county agency shall reimburse the Department for its percentage of the remaining value of the equipment based on an independent appraisal of the equipment's value.

(f) Ownership responsibilities. In accordance with sound business practice, the holder of fixed assets shall:

(1) Maintain an inventory listing of fixed assets.

(2) Maintain and administer a program for the maintenance, repair, protection, preservation, and insurance of fixed assets to assure their full availability and usefulness.

(3) Utilize reimbursement for a loss, destruction or damage of fixed assets by using the proceeds to repair, renovate, or replace the fixed assets involved; crediting the proceeds as an income source to be applied against the cost of services rendered; forwarding the proceeds to the funding source.

(4) Perform an annual physical inventory at the end of the funding period/fiscal year by sighting and verifying the inventory listings. Discrepancies shall be documented and kept on file with the invoices, inventory reports, and other papers which are subject to audit.

Notes

55 Pa. Code § 3170.77

This section cited in 55 Pa. Code § 3170.11 (relating to purpose); 55 Pa. Code § 3170.22 (relating to direct provision of services); 55 Pa. Code § 3170.23 (relating to purchase of service); 55 Pa. Code § 3170.83 (relating to establishing rates); and 55 Pa. Code § 3170.85 (relating to responsibility of the county).