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. DEFINITIONS
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. RESPONSIBILITIES
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. REFERENCES
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:
Position Date
Director of Materials Management September 1 E4Y
and Logistics
IT Security Officer September
1 E4Y
Associate Vice President for September
1 E4Y
Financial Services
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
President