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1.0 PURPOSE
The purpose of this document is to
provide a method for the processing of University property through the
Property Management Office. University property transactions include
purchases, inventory cycle updates, changes of location, changes of
department, changes of responsible person, auction sales, trade-ins, donations, loss and thefts.
2.0 OBJECTIVE
Property accounting procedures are
designed to maintain uniform accountability for University property. These
standard procedures are used to provide accurate records for the
acquisition, maintenance, control, and disposition of property. The combination of accurate accounting
records and strong internal controls must be in place to protect against and
detect the unauthorized use of State property.
Executive Order No. 409 authorizes the
campus President to purchase, sell or exchange personal property belonging
to The California State University when deemed in the best interest of the
University.
Property Management is the agency that
the President has delegated the authority to carry out the property
accounting aspects of these transactions. The following procedures are
intended to assist University
State personnel in
pursuing their specific goals regarding property.
3.0 DEFINITIONS
3.1 Definition
of Equipment
Equipment is defined as tangible, non-consumable property with an
acquisition cost of at least $500. Equipment has a normal useful life of at
least one year, is not permanently attached to or incorporated in
University buildings and grounds, and is used to conduct University
business.
3.2
Instructional Equipment
Instructional equipment is equipment purchased for use in
“instructional” departments. Property records will be maintained to track
and report information required for instructional equipment.
3.3
Capitalized Equipment
A capital asset is defined as real or personal property that has a
unit acquisition cost equal to or greater than $5,000 and an estimated life
of one year or greater. Capital
assets must be capitalized, which means to record the property in the
accounting records as assets. Detailed guidelines on capitalization of
assets are located in the CSU
GAAP Reporting Manual Capital Asset Guide.
3.4
Non-capitalized equipment
State non-capitalized property is defined to include 1) property
purchased with University funds with a useful life greater than one year
and 2) unit acquisition cost (including applicable taxes and freight) greater
than or equal to $500 and less than $5,000. This includes machines and
equipment, which are not permanently attached to and incorporated in state
buildings and grounds. Examples of this type of property include:
computers, printers, palm held devices, scanners, camera equipment,
projection units, portable tools, field-testing equipment, musical
instruments and other instructional related equipment.
3.5 Other University property
Other University property would include desks, bookshelves, chairs,
file cabinets, and other miscellaneous equipment and furniture below
$500. Whether or not other
University property is maintained on the University database, all surplus
property must be disposed of through the University Property Management
Office.
4.0 RESPONSIBILITIES
4.1 Dean/Chair/Director Responsibilities
Each
college/school/department has the primary responsibility for the custody,
care, maintenance, records and control of all property assigned to it.
Additional responsibilities include but are not limited to: maintaining up
to date departmental inventory records, initiating appropriate
communication to inform the University Property Management Office of all
property transactions involving University
State owned
equipment, warranty information/operating manuals and other supporting
documentation for equipment is to be maintained by the responsible
department. Inventory equipment information maintained by PMO is not the
primary source of warranty information. Fulfilling these responsibilities
will enable the Property Management Office to effectively meet the policy
requirements set forth by the University.
The dean, chair, or director of each
college/school/department/administrative unit will designate a department
property coordinator.
4.2
Department Property Coordinator’s Responsibilities
§
Ensure the proper utilization and maintenance of all property and
equipment assigned to the department
§
Promptly report all lost, damaged, or misuse of property or equipment
to the Property Management Office, and complete appropriate forms
In addition to the above responsibilities, department Property
Coordinator’s shall maintain current, complete, and accurate property
records, and track the assignment of equipment within the department.
Departments are ultimately responsible for all University equipment
purchased by that department.
4.3
University Property Management Office Responsibilities
Responsible for the centralized property database maintained for California State
University, Chico.
The property database is the University’s official record of
acquisitions, transfers and dispositions of state and Foundation-purchased
property.
4.4 All
Employees- Faculty & Staff
All employees of the campus community have an obligation to safeguard
and ensure that University property is appropriately used. This obligation
includes but is not limited to:
§
Taking reasonable security precautions to discourage loss, theft, or
misuse of property
§
Report lost, stolen, and damaged property to appropriate personnel
§
Exercise reasonable care of equipment to prevent damage
4.5
Separation of Duties
To maintain appropriate internal controls, while maintaining
University equipment:
§
Inventories will not be exclusively controlled by the custodian of
the property records
§
The person in charge of the stockroom/equipment rooms, if one is
used, will not be in charge of maintaining the inventory records nor the
taking of physical inventories
§
Worksheets used to take inventory will be retained for audit and will
show the date of inventory and the signature of the department head
5.0 ACQUISITION OF EQUIPMENT
5.1 Purchase
Equipment may be acquired by purchase (including lease purchase,
installment purchase, Procurement Express Card Program), donation, and
transfers. The cost of the equipment includes the purchase price plus all
applicable taxes and freight, and any other costs associated with preparing
the equipment for its intended use.
5.2 Donations
(In-KindGifts)
All donations transferred to University ownership meeting the
definition of equipment will be bar coded and added to the University’s
property records. Departments must coordinate with the University
Development and Advancement Services office to ensure all CSU and campus In
Kind Gift acceptance requirements are met and the donation is properly
acknowledged with appropriate authorization signatures.
5.3 Transfers
of Equipment to the University
All requests for transfers of equipment to the University must be in
writing and approved by the Property Management Office.
5.4
Fabrication of Equipment
Under special circumstances equipment may be constructed by campus
employees. Fabricated equipment may also be recorded if it meets the
equipment definition is section 3.1.
5.5 Delivery
5.5.1
Central Receiving
University property is generally bar coded and added to the property
data base upon receipt by the Shipping
and Receiving Department in Stiles Warehouse.
Arrangements can be made to bar code equipment after delivery to the
accepting department.
5.5.2 Direct
to Department/Pick up by Department
In the event that equipment is delivered directly to a department, it
is the responsibility of the department acquiring State property to notify
Property Management (ext.5176) if a property item will not be delivered to
the warehouse. Departments must furnish copies of all pertinent purchasing
documents to Property Management staff. The Property Management Office will
make arrangements with the department to bar code the equipment.
5.5.3 Off
Campus Delivery
It is the responsibility of the department to inform the Property
Management Office if property will be delivered to another physical
location other than CSU, Chico
campus, University Farm, or Foundation-owned buildings.
5.6
Identification
of University Equipment
All equipment must be bar coded or marked with a unique
identification number and recorded in the property database. The
identification number will be directly applied to the actual unit unless
its size or nature prohibits application. Any additional identification
number required by the department should be applied in a manner that deters
confusion with the University identification number. If an equipment
identification number becomes obliterated, defaced, or removed it is the
responsibility of the department to contact the Property Management Office
for re-application of a new unique identification number. Assigned
identification numbers are recorded on all applicable property control documents
from initial receiving to final disposal.
State Property
will have a bar coded tag with the prefix "S". Property
donated to the State by Foundation, Foundation funded property maintained
by the State or State funds mixed with Foundation funds to purchase items
will have a bar coded tag with the prefix "S".
For example: "S05823".
5.7
New
Property Added to the University Property File
Property that is
to be bar coded and entered onto the University property file should
conform to the definition of property and be a stand-alone piece of
property.
For example: a computer is a stand-alone piece of property. A
printer bought on the same order is not considered part of the computer.
Items that are attached to, and add value
to an existing piece of equipment will be treated as a part of that
equipment and its dollar value will be added to the hosts property file.
For example: by adding a $700.00 collator increases the
production and value to an existing copy machine. This is also true of any
add-on regardless of the dollar value. In this instance the department
should type the decal number of the host equipment onto the add-on's
purchase order.
All University
State property should
have the appropriate PeopleSoft chartfield account numbers on the purchase
order. Foundation purchased property shall have the appropriate project and
object codes.
619C01, 616C02, and 616C01 is for State equipment purchases, greater than or
equal to $5,000.00. These account numbers can not be used for equipment
less than $5000.00. There is an
exception to this when the item is to be added to an existing piece of
equipment.
For example: a $300.00 disk drive added to a $7,000.00
computer can use the 616C01 PeopleSoft chartfield account
number. The department buying the drive should type the decal number
of the host item on the purchase order.
616N01,
616N02 and 619N01 – IT Hardware,
IT Software and Other Equipment. These account numbers should be used to
record equipment purchases less than $5,000.00. Property may be purchased with a
combination of Foundation and State funds if they are listed on the
purchase order with the amount of funds allocated from each funding
source. These items will be recorded
as State Property if any portion of the funds used to acquire, install, or
maintain the items are from State sources.
If the account
number is incorrect, PMO will notify the originating department,
Accounting, and Purchasing to change the account number to the correct
account number.
If the account
number is incorrect and the invoice has already been paid, PMO will notify
the Accounting and the originating department to prepare an adjusting
journal entry.
6.0 INVENTORY
6.1 University Property Database
The Property
Management Office maintains a database for all University bar coded equipment.
6.1.2 Acquisition Data
Information
entered into the property database will include the date of purchase, cost,
purchase order number, department, and the department PeopleSoft chart
fields charged.
6.1.3 Equipment Item Description
The description
of the equipment entered into the property database will include (as
available) make, model number,
manufacturer, series, serial number, University identification number, and
asset type/category/class as needed for capital asset reporting and
depreciation.
6.1.4 Equipment Location
The location of
all equipment will be noted in the property database and in the
department’s records. Current records must be maintained as to the movement
of equipment to allow the equipment to be located for inspection or inventory
purposes whenever necessary. The department property coordinator is
responsible for notifying the Property Management Office of any changes in
equipment location.
6.1.5 Deprecation
Equipment
depreciation information will include useful life, depreciation
method/rate/schedule and accumulated depreciation totals.
6.2
Inventory of University Equipment
6.2.1 Physical Inventories of University (State)
Equipment
All University
equipment will be inventoried at least once within a three-year cycle. PMO
performs on going bar code scanning efforts of campus department property
inventory in order to update the campus property database.
Departments are
required to perform their own inventory counts in cooperation with the
Property Management Office. This inventory process is conducted within the
guidelines of the State Administrative Manual § 8652. To assist in this
process, Property Management will provide a printed list of all of the
equipment items assigned to your departments that have not been accounted
for since the last “Inventory Cycle”. Also, each department will receive a
copy of “Department Inventory Procedures”.
While it is
ultimately the department’s responsibility to conduct physical inventories
of their property, Property Management Office staff can assist departments
in the process by utilizing our database records, hand held bar code
scanners, and looking up purchase order information.
6.2.2 Department Physical Inventory Procedures
1.
The
department shall verify the accuracy of the following for each item listed
on the Inventory Sheet:
a.
Building
and room number. If any of this
information has changed, department should designate the new location next
to the corresponding decal number on the Sheet Report. If University
equipment is located off-campus, an “Off-Campus Use of Property Form” must
be filed with the Property Management Office.
b.
Department
and responsible person. Complete
Property Transaction Form to report any change to the department or responsible
person.
2.
Property
items listed on the Inventory Sheet that cannot be found, should have one
of the following notations on the Inventory Sheet:
a.
“Stolen”:
If property is stolen then the department must file an incident report with
the University Police Department. It is the department’s responsibility to
inform the Property office of the Incident/Case number assigned by the
University Police Department.
b.
“Missing”:
Property that cannot be located will be considered lost or stolen. The
Department is required to report all missing items to the University Police
for follow up. Please see instruction item 3 below.
3.
Complete a
“Missing, Stolen, or Vandalized Equipment Property Management Transaction
Form” for each item noted as “Missing” on the Inventory Sheet per
instruction item 2b above. Once an
Incident/Case number has been assigned by the University Police, please
send the completed Transaction Form to the Property Management Office.
4.
Send the
completed Inventory Sheet signed by department head, with additional
documentation as required above to the Property Management Office at zip
910 no later than date assigned
by PMO.
PMO will update
the department inventory on University property database with the
information provided the department. PMO will provide the department with
an updated inventory listing with all the changes that have occurred during
the inventory cycle. Contact PMO for an electronic inventory list.
6.2.3 Personally Owned Equipment
University
employees who use their personally owned equipment on campus should
identify and report the use of such equipment to their immediate
Dean/Chair/Director/Administrative officer. The University in not
responsible for loss or damage to the equipment.
7.0 LOSS PREVENTION
It is the policy
of California State University,
Chico to
safeguard all capitalized and non-capitalized high-risk property.
Non-capitalized high-risk property is defined as state property that may pose
a special risk of loss due to its marketability and portability. (Reference
Executive Order No. 649).
Departments with
equipment susceptible to theft/loss should consider implementing one or
more of the following protection measures:
§
Ensure
University equipment identification bar code labels or permanent makings
are visible on the equipment
§
Establish an
internal check-out/check-in system for departmental equipment
§
Lock office
equipment to desk or stands
§
Utilize a
security room or closet to store high-risk equipment
8.0 PROPERTY TRANSACTIONS
Departments are ultimately responsible
for notifying the Property Management Office of all relocations of
University equipment. This form should be filed with PMO no later than five
business days of the transaction. The following guidelines are to be used
to expedite property equipment transactions.
8.1 Equipment Transfers Within A Department
When the only
change is the physical location of equipment within a department, a "Property
Management Transaction Form" must
be completed and signed by the department property coordinator. The
following information must be furnished on the form: University bar-code
identification number, item description, new building/room location, and
responsible person using the equipment, if applicable. The original copy is
to be forwarded to PMO at Zip 910. A
copy of the form must be retained in the department equipment records. PMO
will update the property database to reflect the transfer.
8.2 Equipment Transfers Between Campus Departments
When University
equipment is transferred between campus departments, a "Property
Management Transaction Form" must be completed and signed by the
appropriate Dean/Chair/Director/Administrative Officer transferring the
equipment.
8.3 Off-Campus use of University property
It is the policy
of California State University,
Chico that
University property not be utilized off-campus unless it is necessary for
the performance of University business. If University property has been
approved to be used off-campus, it is the responsibility of the department
to obtain a completed Off-Campus Use of Property Form before the property
is removed from campus. Off-campus
Use of Property Forms can be obtained from PMO.
The conditions
under which equipment or other University property can be used off-campus
are listed below and are hereby a part of the agreement signed by the
responsible University employee on the Off-Campus Use of State Property
Form.
·
To be
responsible for loss or damage to equipment
·
To use
equipment only for University activities
·
To return
equipment on due date or upon request
·
To pay for
equipment which is damaged or lost
It is the
responsibility of each University department property coordinator to verify
the condition and location of each off-campus piece of property included on
their department’s inventory during each inventory cycle or upon request
from PMO. When the equipment is returned to campus, the responsible
department property coordinator must acknowledge the return of the property
on the Off-campus use of university property form with appropriate
signatures. The department property
coordinator must send PMO a copy of the updated form and the new on-campus
location.
8.4 Lost or
Stolen University Property
A Property Management
Transaction Form shall be filed with PMO for all equipment that is
identified as missing, stolen, or vandalized. This form is available
from PMO. It is the responsibility of all University departments to notify
the University Police Department (UPD) in the event that equipment becomes
missing, stolen, or vandalized. An Incident Report will be completed by
(UPD). Departments are responsible for obtaining the Incident Report # from
UPD and forwarding all necessary documents to PMO via the Property Management
Transaction Form.
9.0 Disposition of University
Property
9.1 Approval of Dispositions
No item of
property shall be sold, transferred, or disposed of outside CSUC without
advance approval of the duly appointed campus Property Survey Board (PSB).
At least two members of the PSB will be responsible for the approval of
Property Survey Reports (STD 152) to ensure the best interest of the State
is served in disposing of State property (Reference SAM 3520.2).
9.2 Surplus
Property
A Property
Management Transaction Form must
be completed for all equipment that a department deems as surplus. All
dispositions of surplus property must go through the PMO. Unless, special
arrangements have been approved in advance, departments are unauthorized to
directly discard of University property (i.e. private sale, donation,
e-bay, scrapped).
A "Facilities Management and
Service Request Form" should be filed with Facilities Management
if moving assistance is required.
When University
property becomes surplus, PMO will determine the recommended disposition
method based on the following:
·
University
property deemed totally useless, irreparable or dangerous will be discarded
pending approval from the Property Survey Board.
·
If the
surplus property is still useful to the University it will be held in a
surplus “viewing” area of Stiles Warehouse and will become available for
reutilization to state University departments. PMO will frequently provide
a listing of surplus equipment available for campus reutilization via the
University e-mail Announcements. Departments may contact PMO to inquire
about existing property at any time or may request to be put on a waiting
list for specific items as they may arrive in surplus.
·
Surplus
computer property is safeguarded for donation for educational purposes
pending approval from the Property Survey Board.
·
Surplus “Other
University property” that is not reutilized by the campus will be sent to a
contracted auctioneer for public sale.
·
Surplus
equipment, capitalized and non-capitalized, that is not reutilized by the
campus will be reviewed by the Property Survey Board. The Property Survey Board will determine
the appropriate method of disposition (i.e. public auction, donation,
competitive bids, salvage, or transfer to another state agency).
9.3 Public
Sales
The Property
Survey Board is responsible for determining when excess surplus equipment
may be offered for sale to the public. PMO will assist departments in
bringing forth information to the Property Survey Board for all equipment
available for public sale.
The University
has a contract with an independent public auction company. The Property
Survey Board must approve all transfers of equipment to the contracted
auction company.
Departments may request that proceeds from
the sale of any of their surplus equipment be returned to the department.
Section 8641 of the State Administrative Manual requires the proceeds
from the sale of surplus equipment be treated as miscellaneous revenue to
the General Fund except in specific situations. Proceeds from the sale of
equipment may be treated as abatement (credit) to a departmental account
only when the sale is one step in a series of transactions, which replaces
the old asset with another asset. Departments are required to provide
PMO with all necessary documentation to abatement transactions. This
information typically includes a copy of the purchase order for the new
equipment item. The auction sale proceeds will be credited to the
Chartfield string to offset the expense of the new equipment item.
9.4 Trade In of University Property
The Property Survey Board shall approve all trade in requests prior
to the transaction-taking place.
9.5 Donations of University Property
The Property
Survey Board shall approve all donations of University property.
Departments may request that property be donated to a designated non-profit
organization. PMO must be notified prior to any departmental plans to
donate University property.
Any non-profit
organization may qualify for the donation. The organization must submit on
letterhead to Financial Reporting & Property, Chico, CA 95929-0025.
All donations of
University property must be processed though PMO.
9.6 Sale
or trade in of State Property
The University
administration will establish fair market value of the property that is to
be sold or traded in. PMO should be notified of any departmental plans to
trade-in property before the transaction takes place.
9.7 Sale or trade-in of
State vehicles.
Departments may
request to sell or trade-in a vehicle by notifying PMO prior to the transaction.
PMO holds the pink slips for all University state owned vehicles. Vehicles
include trucks, cars, motorcycles; three and four wheel off road vehicles,
boats, airplanes, and any other vehicle requiring a State license plate.
PMO will work with the department and Procurement office concerning the
trade-in of vehicles. The Property Survey Board shall approve the
appropriate method of disposition.
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