Property and Equipment UPPS No. 05.01.01
Issue No. 6
Effective Date: 04/10/2013
Review: September 1 E4Y
01. POLICY STATEMENTS
01.01 University personnel must exercise reasonable care to protect Texas State’s property and equipment.
01.02 This policy applies to all university property and equipment, regardless of the source of funds from which these items were acquired. Property and equipment donated to the university are included under this policy.
02.01 Property and Equipment – Generally, this includes assets with useful lives greater than one year that are necessary to conduct the business of the university, such as: audiovisual devices, computers, furniture, tools, machinery, buildings, and land. For purposes of this policy, the term refers to all such items owned or leased by the university or items on loan to the university. These items are referred to as “university property” throughout this policy.
02.02 Capital Assets – Those items costing $5,000 or more which must be capitalized and maintained on the university’s inventory, in accordance with the requirements of the State Comptroller’s office.
02.03 Controlled Assets – Those items that cost less than $5,000 but more than $500, and must be maintained on the university’s inventory in accordance with state requirements because of the high-risk nature of the asset. A complete list of controlled assets is available on the state comptroller’s website.
02.04 University Controlled Assets – Those items that are not considered state controlled assets, cost less than $5,000 (below the capitalization threshold, but more than $500), but have been determined to be maintained by the university’s inventory.
02.05 State Property Accounting (SPA) – The Office under the state comptroller of Public Accounts that accounts for and tracks assets of the state agencies and some institutions of higher education of the State of Texas.
02.06 Annual Inventory – The review and certification of property and equipment in the possession of the university, as mandated by the state.
02.07 Loan of Property and Equipment – Use of university property by a non-profit entity other than a Texas State employee.
02.08 Off-site Use – Use of university property by a Texas State employee at a location other than the employee’s normal duty station.
02.09 Personal Use – Use of university property by a Texas State employee for their personal needs, unrelated to university business purposes.
02.10 University Business Purpose – Activities or events that serve a valid public purpose.
03.01 Agency Head – The university president is responsible for the custody and care of property in the university’s possession and has designated a property manager as provided in Government Code § 403.2715.
03.02 The president has designated the director of Materials Management and Logistics as the university’s property manager. In this capacity, he or she is responsible for:
a. Coordinating with the General Accounting Office to assure accuracy of the property records, in accordance with generally accepted accounting principles;
b. Conducting appropriate inventories and reviews of university property;
c. Arranging transfers of property to facilitate utilization;
d. Disposing of surplus property by means of sale, salvage, scrap, or “cannibalization;”
e. Maintaining appropriate management systems for property control;
f. Facilitating the best possible management of university property;
g. Assisting department heads in establishing departmental systems for property and equipment management;
h. Reviewing departmental requests for the loan of university property and equipment for official use;
i. Evaluating and recommending loan requests for the use of university property and equipment by non-profit organizations; and
j. Establishing policies and procedures to manage university property, in accordance with state requirements.
03.03 Department heads are responsible for the daily care, maintenance, and safeguarding of property and equipment. They are responsible for:
a. Maintaining a departmental property accounting system that enables prompt location of any item assigned to their account;
b. Timely notifying the office of Materials Management and Logistics of transfers and deletions of property and equipment in their possession;
c. Conducting and completing an accurate annual property and equipment inventory within the time frames specified by the director of Materials Management and Logistics. Timely reporting lost, stolen or damaged assets, including controlled assets, to the office of Materials Management and Logistics, the University Police Department and if the asset is a computer device, to the IT Security office; and
d. Authorizing the “off-site use” of certain property and equipment assigned to their department for official use by university employees.
03.05 The vice president for Finance and Support Services (VPFSS) or the associate vice president for Financial Services (AVPFS) is responsible for approving the loan of university property and equipment to a non-profit entity.
03.06 The Office of Sponsored Programs (OSP) is responsible for approving the disposition of property and equipment that is assigned to sponsored programs.
04. PROPERTY AND EQUIPMENT PROCEDURES
04.01 Department Head Change – When a department head changes, the director of Materials Management and Logistics should notify the new department head to request an inventory listing of university property in their span of control. The new department head should conduct an inventory and report his or her findings to the office of Materials Management and Logistics. This procedure will prevent the new department head from being held accountable and possibly liable for property not located during the annual inventory.
04.02 Suspected and Actual Losses – The department head must report suspected or actual losses or theft of property first to the University Police Department (UPD), then to the office of Materials Management and Logistics, immediately upon discovery of its disappearance. If the lost or stolen property, regardless of ownership, includes digital media that might contain university data sensitive or confidential information (such as the theft of a laptop or tablet computer, a cell phone, an external storage device, etc.), the department head will immediately notify IT Security of the incident. IT Security is responsible for notifying the Department of Information Resources (DIR) within 24 hours (see UPPS No. 04.01.07, Section 06.07).
a. The department head must complete and submit a Missing, Damaged or Stolen Property Report to the office of Materials Management and Logistics. The department head is expected to make every reasonable effort to learn about and document the circumstances behind the loss or theft of university property assigned to his or her account.
b. UPD, the department head, the director of Materials Management and Logistics, and the IT security officer (if applicable) will review the circumstances surrounding the disappearance of the property. UPD is responsible for conducting a criminal investigation, as needed. If UPD, the department head or the director of Materials Management and Logistics determine that there has been negligence on the part of a university employee or student which caused the loss of or damage to university property, they will report their findings to the VPFSS, who will determine if the department head or employee will be subject to financial liability for the loss.
c. The IT security officer is responsible for investigating and documenting the incident with respect to the loss or unauthorized disclosure of any sensitive or confidential university information. If applicable to the incident, the IT security officer will ensure that the university’s Information Security Breach Response Plan is followed, that breach notification requirements are met, and that the Texas DIR is notified within 24 hours.
d. The director of Materials Management and Logistics, in collaboration, with the AVPFS and the VPFSS will evaluate the situation and notify the director of Audits and Analysis if a university employee has been or could be considered negligent for university property being missing or stolen.
e. The director of Audits and Analysis will evaluate the situation and determine whether and when such situations warrant notification to the Texas State University System (TSUS) director of Audits and Analysis. State Auditor notifications will be done by the TSUS director of Audits and Analysis (or designee).
f. The director of Materials Management and Logistics is responsible for maintaining complete documentation of all such notifications to other departments and agencies.
05. PROCEDURES FOR OFF-SITE USE OF UNIVERSITY PROPERTY AND EQUIPMENT
05.01 Off-site use – Department heads shall maintain a log for each item of departmental property or equipment authorized for off-site use by university employees. At a minimum, the log should include:
a. a description of the item (including the serial number and Texas State property tag number if available);
b. the name and Texas State ID number of the employee to whom the property was assigned or checked-out;
c. the employee’s signature or initials and assignment date, captured at the time of equipment assignment or check-out;
d. the receiving employee’s signature or initials and return date, captured at the time of equipment return; and
e. the department head’s signature of approval for items that are not routinely assigned or checked-out for off-site utilization.
05.02 Loan to Non-Profit Entities – In some circumstances, the university may loan property and equipment to non-profit entities for their use, provided that such use serves a public focus. The following procedures must be followed:
a. The organization must be a non-profit corporation or association as defined by federal law.
b. An authorized official of the non-profit entity must make written request to the director of Materials Management and Logistics, stating the reason the loan request is being made, the specific property or equipment being requested, and the period of time for which it is needed.
c. The director of Materials Management and Logistics will contact the department head responsible for the equipment and determine if they concur with loaning the equipment to the non-profit entity. The director of Materials Management and Logistics will forward the completed form to the VPFSS or the AVPFS for his or her approval.
d. Upon recommendation from the director of Materials Management and Logistics, either the VPFSS or the AVPFS must approve all requests for loans of university property to non-profit entities.
e. The director of Materials Management and Logistics will inform the non-profit entity whether the request was approved or disapproved.
f. Requests for the non-university use of university vehicles are generally not approved except under an extreme emergency condition, such as a major natural disaster.
05.03 All requests for loans of university property should be made at least ten work days in advance of the actual date needed to allow time for approval and arrangements. The Non-University Function Equipment Loan Request must be used for this purpose.
05.04 Loans of printed material and audio-visual software and hardware by the Alkek Library are exempt from this policy. Refer to the Library’s policy LB PPS 06.04, Services for Non-University Library Users.
05.05 Loans of property and equipment associated with externally-sponsored programs may be exempt from this policy, provided that the provisions of the sponsored program require the loans. The funding source must provide written confirmation that the loan is required under the contract or grant.
06. PROCEDURES FOR PERSONAL USE OF UNIVERSITY PROPERTY
06.01 Personal use of university property and equipment is generally prohibited. Under some circumstances, state law may allow de minimus use with the prior written approval of the employee’s supervisor. Minor and infrequent amounts constitute de minimus use. Examples include an employee’s receipt of a personal communication on a university fax machine or an employee who is taking a university class using one of their office computers to type a term paper.
07. ANNUAL INVENTORY
07.01 Under state regulations, the university must complete an annual inventory of certain property and equipment. The office of Materials Management and Logistics personnel also conduct monthly equipment reviews of selected inventory accounts to verify department’s Annual Inventory Report information and to try and locate missing property. For more details see FSS/PPS 05.01.09, Equipment Inventory Review.
08. SURPLUS OR SALVAGE PROPERTY
08.01 The office of Materials Management and Logistics is responsible for the disposition and disposal of all university surplus property. Refer to UPPS No. 05.01.02 for more specific information.
09. PROPERTY TRANSFER PROCEDURES
09.01 Interdepartmental transfers of property can be accomplished through one of two methods both of which require completing an Equipment Transfer Form.
a. Item given – One department gives an item to another department.
b. Item sale – One department sells an item to another department.
09.02 If a department wants to give its surplus equipment to another department, both department heads must sign an Equipment Transfer Form. The office of Materials Management and Logistics must approve the transfer. The original department head is accountable until this approval is done.
09.03 If a department has surplus equipment that is being sold to another department at an agreed-upon price, an Equipment Transfer Form must be completed and signed by department heads in both departments and submitted to office of Materials Management and Logistics for approval. A notation of the “sales price” for the equipment must be noted on the form. Departments will submit an inter-department transfer (IDT) to the Accounting Office to debit the “buying” department and to credit the “selling” department.
10. SPONSORED PROGRAMS
10.01 In addition to other authorizations outlined in this UPPS, disposal of property and equipment which is assigned to an externally-sponsored program requires approval of the OSP. This includes sale, transfer, obsolescence, or inoperable items. OSP review is required to assure that disposal occurs in accordance with sponsor guidelines. Proceeds from disposal of these items, generally, must be returned to the sponsor.
11.01 Texas Government Code Ann. Sec. 403.2715 regulates how institutions of higher education account for all property as defined by the state comptroller (refer to http://www.statutes.legis.state.tx.us/).
11.02 Texas Government Code Chapter 2175 or 403.278 describes the sale or transfer of data processing equipment.
11.03 Texas Administrative Code, Title 1, Part 10, Chapter 202 Subchapter C, Rule §202.78, specifies removal of data from data processing equipment.
11.04 Texas Government Code, Section 2054.130 describes the removal of data before disposal of equipment or transferring equipment to another entity.
11.05 The state comptroller's requirements for external reporting agencies and institutions of higher education not reporting to SPA per the General Appropriations Act, Article IX, Section 12.04, 82nd Legislature, Regular Session and Senate Bill 5, 82nd Legislature, Regular Session (refer to http://www.window.state.tx.us/fm/spa/).
11.06 Texas State division policy, FSS/PPS 05.01.09, Equipment Inventory Review.
11.07 Attorney General's Opinion No. M-623, dated May 4, 1970. This opinion determined that personal property belonging to state universities could be loaned and exchanged when the purposes would in some way benefit the university and the State of Texas. The exchange of property may further the public purpose of promoting and disseminating education and culture.
11.08 On February 22, 1980, the Board of Regents, The Texas State University System, authorized the university to enter into reciprocal agreements providing for the temporary exchange or loan of university property with other non-profit entities, provided that such agreements reflect a valid state purpose.
12. REVIEWERS OF THIS UPPS
12.01 Reviewers of this UPPS include the following:
Director of Materials Management September 1 E4Y
IT Security Officer September 1 E4Y
Associate Vice President for September 1 E4Y
13. CERTIFICATION STATEMENT
This UPPS has been approved by the following individuals in their official capacities and represents Texas State policy and procedure from the date of this document until superseded.
Director of Materials Management and Logistics; senior reviewer of this UPPS
Associate Vice President for Financial Services
Vice President for Finance and Support Services