Property Management: Policies and Procedures for Management of University Property

1.0 Purpose

The purpose of this document is to provide a method for the processing of University property through the Property Management Office (PMO). University property transactions include purchases; inventory cycle updates; change of location, department, or of responsible person; auction sales; trade-ins; donations; and 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 University's President to purchase, sell, or exchange personal property belonging to California State University, Chico when deemed in the best interest of the University.

The President has delegated the Property Management Office the authority to carry out the property accounting aspects of these transactions. The following procedures are intended to assist University employees 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; 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 defined as equipment purchased for use in instructional departments. The Property Management Office will maintain records to track and report required information to the University and State.

3.3 Capitalized Equipment

“Capitalized Equipment” 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. The Property Management Office will record the property into the accounting records as capital 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 Equipment” is defined to include 1) equipment purchased with University funds with a useful life greater than one-year; and 2) unit acquisition cost (including applicable tax and freight) greater than or equal to $500 and less than or equal to $4,999. New computers and monitors valued over $1,500 will be included in the physical inventory over a two fiscal-year period. Other examples of non-capitalized equipment include: 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” is defined as desks, bookshelves, chairs, file cabinets, and other miscellaneous equipment and furniture at a cost of less than $500. All surplus property and equipment must be disposed of through the PMO, regardless if the property/equipment is maintained on the University's database.

4.0 Responsibilities

4.1 Dean/Chair/Director Responsibilities

Each College, School, and Department has the primary responsibility for the custody, care, maintenance, and control of all property assigned. Additional responsibilities include, but are not limited to: maintaining up-to-date departmental inventory records, informing the PMO of all property transactions involving University/State-owned equipment. The inventory of property/equipment maintained in the database by the PMO is not the primary source of warranty information. Fulfilling these responsibilities will enable the PMO to effectively meet the requirements set-forth by the University.

The Dean, Chair, or Director will designate the department's Property Coordinator.

4.2 Department Property Coordinator's Responsibilities

Semi-annually the Property Management Office will send an equipment/property list to every department for review by the department's Property Coordinator.

It is the Property Coordinator's responsibility to notify PMO of all changes in equipment and/or property by completing the Property Management Transaction Form (Surplus, Damaged or Transferred Equipment) ( PDF 844 KB ) for all lost, damaged, or misuse of property or equipment. Once PMO has received the Form indicating all changes, the inventory equipment/property database will be updated.

**In addition to the above responsibilities, the Property Coordinator 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 and property purchased by that department.

4.3 University Property Management Office Responsibilities

The University's Property Management Office is responsible for the centralized equipment database maintained for California State University, Chico. The equipment database is the University's official record of acquisitions, transfers, and dispositions of State and Foundation-purchased property.

The Property Management Office will send out a bi-annual equipment inventory for each respective campus department.

Throughout each fiscal-year, the PMO will actively and physically inventory all capitalized equipment.

4.4 All Employees- Faculty & Staff

All employees of the campus community have an obligation to safeguard University equipment and property. 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.
• Reasonable care, maintenance, and use 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 or the taking of physical inventories.

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, all applicable taxes and freight, and any other costs associated with preparing the equipment for its intended use.

5.2 Donations (In-Kind Gifts)

All donations transferred to University ownership meeting the definition of “equipment” (Section 3.1 Definition of Equipment) will be bar coded and added to the University's property records. Departments must coordinate with the University Advancement and Development Services to ensure all CSU, Chico 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 PMO.

5.4 Fabrication of Equipment

Under special circumstances equipment may be constructed by campus employees. Fabricated equipment may also be recorded in the University's database if it meets the definition of “equipment” (Section 3.1 Definition of Equipment.)

5.5 Delivery

5.5.1 Central Receiving

University property is generally bar coded and added to the property database upon receipt by the Shipping and Receiving Department located in the University's 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 the equipment is delivered directly to a department, it is the responsibility of the department acquiring State property to notify PMO at ext. 5176 that the 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 PMO if property will be delivered to another physical location other than CSU, Chico campus, University Farm, or Foundation-owned buildings.

Identification of University Equipment

All University 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 destroyed, defaced, or removed it is the responsibility of the department to contact the PMO for re-application of a new 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 label 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 label with the prefix “F”.

For example: “S05823”

New Property Added to the University Property File

University property that is to be bar coded and entered into the University property file should conform to the definition of property (Section 3.51 Definition of Other University 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 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. These account numbers can not be used for equipment less than $5000. There is an exception to this when the item is to be added to an existing piece of equipment.

For example: a $300 disk drive added to a $7,000 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. 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 the equipment database for all University 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 chartfields 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 recorded in the property database and in the department's records. Current records must be maintained as to the relocation of equipment to allow for inspection and/or inventory purposes whenever necessary. The department's Property Coordinator is responsible for completing the Property Management Transaction Form (Surplus, Damaged or Transferred Equipment) ( PDF 844 KB ) and forwarding to the Property Management Office.

6.1.5 Depreciation

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. Capitalized equipment that has not been inventoried since July 1, 2006, will be inventoried by the PMO.

Departments are required to perform their own inventory counts in cooperation with the PMO. This inventory process is conducted within the guidelines of the State Administrative Manual § 8652. To assist in this process, the PMO will provide a printed list of all of equipment items assigned to departments that have not been accounted for since the last “bi-annual equipment report.” 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 Staff can assist departments in the process by utilizing our database records, hand-held bar code scanners, and look up purchase order information.

6.2.2 Department Physical Inventory Procedures

The department shall verify the accuracy of the following information for each item listed on the Inventory Sheet:

• Building and Room Number. If this information has changed, the department's Property Coordinator 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 State Property Form ( PDF 837 KB ) must be filed with the Property Management Office.
• Department and Responsible Person. It is the responsibility of the department to complete the Property Management Transaction Form to report any change to the department or responsible person.

Property items listed on the semi-annual equipment report that cannot be found, should have one of the following notations on the Inventory Sheet:

• “Stolen”: If property is stolen, the department must file an Incident Report with the University Police Department. It is the department's responsibility to inform the PMO of the Incident/Case number assigned by the University Police Department.
• “Missing”: Property that cannot be located will be considered lost or stolen. The department must file an Incident Report with the University Police Department. It is the department's responsibility to inform the PMO of the Incident/Case number assigned by the University Police Department.

The department must complete a Property Management Transaction Form (Missing, Stolen, or Vandalized Equipment) ( PDF 851 KB ) for each item noted as “Stolen” or “Missing” on the Inventory Sheet. It is the department's responsibility to notify PMO of the Incident/Case number assigned by the University Police. The completed Transaction Form must be forwarded to Property Management Office.

If there are changes to the semi-annual equipment report, a copy of the report shall be forwarded with any additional documentation to the Property Management Office at Zip 910.

The Property Management Office will update the department inventory based on changes received on the bi-annual equipment report.

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. California State University, Chico, 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 or 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 PMO of all relocations of University equipment. The Property Management Transaction Form should be filed with PMO no later than five (5) 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's Property Coordinator. The following information must be provided on the form: University bar-code identification number, item description, new building and 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. The Property Management Office 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 Equipment/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 complete an Off-Campus Use of State Property Form ( PDF 837 KB ) before the property is removed from campus.

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 ( PDF 837 KB ).

• 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 department Property Coordinator must acknowledge the return of the property on the Off-Campus Use of University Property Form ( PDF 837 KB ) 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 (Missing, Stolen, or Vandalized Equipment) ( PDF 851 KB ) 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 in the event that equipment becomes missing, stolen, or vandalized. It is the department's responsibility to notify PMO of the Incident/Case number assigned by the University Police Department and forward all necessary documents to Property Management Office at Zip 910.

9.0 Disposition of University Property

9.1 Approval of Dispositions

No item of property shall be sold, transferred, or disposed of outside CSU, Chico, without prior approval of the duly appointed Property Management Survey Board. At least two members of the Property Management Survey Board 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 (Surplus, Damaged, or Transferred Equipment) ( PDF 844 KB ) 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).

If a department requires assistance in moving surplus property a Facilities Management and Service Request Form should be filed with Facilities Management and Services.

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 Management Survey Board.
• If the surplus property is still useful to the University it will be held in a surplus “viewing” area located at the Warehouse and will become available for reutilization to all University departments. The Property Management Office will frequently provide a listing of surplus equipment available for campus reutilization via Campus 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 arrive in surplus.
• Surplus computer property is safeguarded for donation for educational purposes pending approval from the Property Management Survey Board.
• Surplus equipment, capitalized and non-capitalized, that is not reutilized by the campus will be reviewed by the Property Management Survey Board to 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 Management Survey Board is responsible for determining when excess surplus equipment may be offered for sale to the public. The Property Management Office will assist departments in bringing forth information to the Property Management Survey Board for all equipment available for public sale.

The University has a contract with an independent public auction company. The Property Management Survey Board must approve all transfers of equipment to the contracted auction company.

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, (i.e., specialized large pieces of equipment or vehicles.) 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 Management Survey Board shall approve all trade-in requests prior to the transaction taking place.

9.5 Donations of University Property

The Property Management Survey Board shall approve all donations of University property. Departments may request that property be donated to a designated non-profit organization. The Property Management Office must be notified prior to any departmental plans to donate University property.

Any non-profit organization may qualify for University property donations. The organization must submit a request on letterhead to Financial Reporting and Property, Chico, CA 95929-0025.

All donations of University property must be processed through Property Management Office.

9.6 Sale or Trade-In of State Property

The University administration will establish a fair market value of the property that is to be sold or traded-in. The Property Management Office 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. The Property Management Office holds the pink slips for all University State-owned vehicles, which include: trucks, cars, motorcycles, three and four wheel off-road vehicles, boats, airplanes, and any other vehicle requiring a State license plate. The Property Management Office will work with the department and Procurement and Contract Services concerning the trade-in of vehicles. The Property Management Survey Board shall approve the appropriate method of disposition.