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.

Agenda June 16, FIMS / RE Workshop2 Why do we distinguish between real and personal? Recognizing the differences Details on personal property Details on real property Dean Martin

Whats Behind the Terms June 16, FIMS / RE Workshop3 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)

Property Definitions Personal Real June 16, FIMS / RE Workshop4 41 CFR Government-wide 41 CFR DOE – specific DOE Accounting Handbook10.3(a)(1) DOE G Referenced in O CFR 102–71.20 Government-wide DOE Accounting Handbook 10.2(a)(1) DOE O 430.1B OECM Memo. 02/23/10

Comparing Personal and Real June 16, FIMS / RE Workshop5 R E A LP E R S O N A L Immobile Movable Always Tangible Tangible & Intangible Annual Inventory Annual Inventory * All Items Reported Not All Reported * Biennially for equipment

Capitalization Threshold June 16, FIMS / RE Workshop6

Examples of Real Property June 16, FIMS / RE Workshop7 Buildings Utilities Land Roads, Walks, Bridges Walls, Poles, Towers DOE O 430.1B Prefabricated Movable Structures Minerals in Land

Examples of Personal Property June 16, FIMS / RE Workshop8 Motor Vehicles Equipment Sensitive Items Minerals & Precious Metals Stock Materials Potable Alcohol High Risk Property Energy Related Laboratory Equipment 41 CFR 109 DOE O governing regulation

Mobile Property June 16, FIMS / RE Workshop9 Is this real property? Temporarily personal property?

June 16, FIMS / RE Workshop10 Mobile Refinery Moveable Oil Rig?

Hot Cells June 16, FIMS / RE Workshop11

Hot Cells June 16, FIMS / RE Workshop12

Hot Cells June 16, FIMS / RE Workshop13

June 16, FIMS / RE Workshop14 Related Personal Property Laboratory Equipment

June 16, FIMS / RE Workshop15 Experimental Equipment Utility Generation

June 16, FIMS / RE Workshop16 Security Equipment Installed on a Structure Security Equipment Installed on a Building

June 16, FIMS / RE Workshop17 More on: P ERSONAL P ROPERTY

Spare Related Personal Property June 16, FIMS / RE Workshop18 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

Personal Property Data Tracked June 16, FIMS / RE Workshop19 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

Sunflower Database (1 of 4) June 16, FIMS / RE Workshop20

Sunflower Database (2 of 4) June 16, FIMS / RE Workshop21

Sunflower Database (3 of 4) June 16, FIMS / RE Workshop22

Sunflower Database (4 of 4) June 16, FIMS / RE Workshop23

Personal Property Management Program Order Revision June 16, FIMS / RE Workshop24 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

June 16, FIMS / RE Workshop25 More on: R EAL P ROPERTY

Buildings vs. Structures June 16, FIMS / RE Workshop26 Whats a building? Whats 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)

Weak Usage Codes: Buildings June 16, FIMS / RE Workshop OTHER INSTITUTIONAL BUILDINGS 607 OTHER BUILDINGS TRADES SHOPS 709 OTHER SUPPORT LABS 793 MULTI-FUNCTION RESEARCH/LAB BUILDING 801 OTHER

Weak Usage Codes: Structures June 16, FIMS / RE Workshop 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

June 16, FIMS / RE Workshop29 Questions & Comments Sammy Davis, Jr. c In Las Vegas, NV