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PROCEDURES FOR THE SAFEGUARDING AND DISPOSAL OF STATE PROPERTY
California State University, Sacramento
The CSU Board of Trustees has delegated to the President the authority to sell or exchange University property as well as to establish and maintain a system of internal controls to safeguard University property including establishing a Property Survey Board to serve in the disposing of the University property (per ICSUAM Policies: 3150.01 – Administration of University Property & 3151.04 – Equipment). This policy covers all University property except Information Technology (IT) equipment with a cost of less than $5,000.
To disassemble or dismantle property to obtain useful parts for use on other property, thereby rendering the original property useless.
Capitalized Equipment is defined as real or personal property that has a unit acquisition cost equal to or greater than $5,000 and a useful life of at least one year or greater must be capitalized. The Accounting Services Office is required to record the property into the Central Financial System (CFS) data base as capital assets. Detailed guidelines on capitalization of assets are located in the CSU GAAP Reporting Manual Capital Asset Guide (DOC) and are generally administered by the Accounting Services Office.
Definition of Equipment
All Equipment, capital or noncapital, 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.
Instructional Equipment is defined as equipment purchased for use in instructional departments. The Property Management Office (PMO) will maintain records to track and report required information to the University and State.
Non-Capitalized Equipment is defined as equipment purchased with University funds with a useful life of at least one-year and a unit acquisition cost (including applicable tax and freight) less than $4,999.
Other University Property
Other University Property is defined as desks, bookshelves, chairs, file cabinets, and other miscellaneous equipment and furniture that are not capitalized or entered into the Asset Management property recording system. Please note that all surplus property and equipment must be disposed of through the PMO, regardless if the property or equipment is maintained on the University's database.
Vice President for Administration / University Chief Financial Officer
The University’s Vice President for Administration / Chief Financial Officer and his/her designees are responsible for the administration of this policy.
Property Survey Board (PSB)
The management of our University’s property requires the engagement of all areas of the campus. The Property Survey Board has been established to oversee the University’s state property disposition process and enforce equipment accountability. The membership consists of the following:
- Director of Procurement and Contract Services
- Supervisor of Property Accounting
- GAAP Accountant
- Public Safety Officer
- Representative from IRT
A minimum of two members of the Board will approve all transactions. The board chair will notify the Associate Vice President for Financial Services when a department mismanages their property inventory or has excessive property loss.
Property Management Office
The accountability for all property assigned to or owned by California State University, Sacramento is the responsibility of Property Management. Detailed reports, documentation, audit trails and transactions involving property are maintained for good stewardship and audit purposes. It is the responsibility of the Supervisor of Property Management to: ensure the proper use and maintenance of all property and equipment; promptly report any loss, damage, or misuse of property or equipment to the PSB and Public Safety; maintain current, complete, and accurate property inventory records, track the assignment of equipment within campus departments and provide copies of documents to the Accounting Services Office for all property donated, sold, recycled, cannibalized, lost or stolen.
The Property Management Office is also responsible for:
- Equipment tagging, tracking, and maintenance of campus property inventory records.
- The application of the identification numbers to property; this function may be delegated to a campus department if appropriate controls are maintained. Coordination or performance of property inventory will be done at least every three years.
- Supporting documentation for retirements and location changes is maintained with Property Management and made available to the Accounting Services as needed for reconciliation and documentation.
Accounting Services Office
Entry of all capital or noncapital property additions, retirements and location changes into the University Asset Management System (AMS) is the responsibility of the Accounting Services Office. All entries are made on a timely and regular basis to insure up-to-date inventory records.
Department Chairs, Deans, Directors, and Program Administrators
It is the responsibility of Department Chairs, Deans, Directors, and Program Administrators to control and safeguard all items of value in their charge, including tracking and accounting for certain types of property as required by this procedure. Additionally, they are responsible for insuring the immediate notification of Public Safety and the Supervisor of Property Management and Receiving when property has been lost or stolen and that the procedures for disposing of state property are followed when their department has property that is not being utilized.
Department Property Representatives
Departments will designate a department property representative, delegating an individual responsible for property and equipment accountability. Department representatives are responsible for the following:
- Monitoring physical location of property along with changes in location, transfer requests, property turn in, salvage, and cannibalization.
- Reporting all property that is missing, lost, or stolen.
- Promptly reporting any loss, damage or misuse of property or equipment to Property Management
- Performing a yearly inventory of Capital equipment in conjunction with the Property Management.
- In conjunction with the Property Management, conduct a monitoring cycle of all Property on a perpetual basis, this will have no one cycle last longer than three years. Once the cycle is complete a new cycle will begin.
- Each member of the campus community has a general obligation to safeguard and make appropriate use of University property and equipment. This obligation includes but is not limited to:
- Exercising reasonable care in equipment use to prevent damage and maintain in good condition.
- Taking reasonable security precautions to discourage loss, theft, or misuse of property.
- Reporting lost, stolen, damaged, or otherwise impaired property/equipment to appropriate parties.
The procedures are divided into three sections.
Section I - Guidelines for Safeguarding State Property
Section II - Internal Transfer, Relocation, and Loan of Equipment
Section III - Process for the Disposal of State Property.
SECTION I - SAFEGUARDING STATE PROPERTY
ICSUAM Policy 3150.01 requires the University to create a policy appropriate to the University environment. This section outlines the guidelines at California State University, Sacramento for the Safeguarding of State Property, effective with the 2004/2005 fiscal year (Presidential Memo BA 05-01).
Property valued with an acquisition cost of less than $5,000, and included in the University Asset Management system will consist of the follow “sensitive” items:
- University Police Firearms
- Electric Vehicles
- All Federally funded Equipment
Property valued with an acquisition cost of $5,000 or greater and a useful life of at least one year or greater shall be capitalized as well as tagged and recorded in the campus property inventory records and included in the campus financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP).
It is the responsibility of Department Chairs, Deans, Directors, and Program Administrators to control and safeguard all items of value in their charge. To that end, it is recommended that Department Chairs, Deans, Directors, and Program Administrators or their designees maintain some form of record for property in their charge having an acquisition cost of less than $5,000.
Property valued under $ 5,000 which is highly desirable or important to operations (e.g. microscopes, machining equipment, sorters, ice makers, musical instruments, athletic exercise/training equipment, etc.) should be considered theft/damage sensitive property items. It is highly recommended that departments with theft/damage sensitive property record the receipt of these items. Make, model, value, and serial numbers should be noted and recorded in departmental records.
Property purchased with Federal contract/grant funds and owned by the funding agency shall be subject to the accountability requirements of the funding agency (regardless of dollar value). A physical inventory of this equipment shall be taken and the results reconciled with equipment records at least every two year or sooner if required. Any differences shall be investigated to determine the cause of causes of the discrepancy.
State property checked out by employees for use at home (or other off campus locations), regardless of value, shall be tracked and accounted for by the responsible department.
All state property checked out to an employee shall be returned to the University upon the employee's separation from the University.
Equipment use for personal project or private event is PROHIBITED. Equipment will not be removed from campus except for official University-related projects, functions, department duties or class-related assignments. Authority must be granted in writing utilizing an Equipment or Material Check-Out form, and released by a duly authorized department representative, or University official having jurisdiction over equipment. Employees will be charged with any loss and damage to University property due to their negligence or unauthorized use.
Frequency of Campus Inventories
The University will conduct a physical inventory of all property once every three years. The Supervisor of Property Management will coordinate the effort, providing inventory listings, pertinent forms, procedures and deadlines. The supervisor will also be responsible for obtaining completed inventory reports from the departments and updating the property records accordingly. The completed inventory listings will be retained for four years or until audited, whichever is first.
Department Inventory Coordinator and Property Management will make a physical count of all property and reconcile the count with the AMS records at least once every three years. Department Inventory Coordinators may be designated by the Department Chairs, Deans, Directors, and Program Administrators of their department. A computer printout and inventory instructions will be furnished to each department at inventory time by Property Management. Property Management may verify the department inventory on the basis of statistical sampling. If the sample shows significant discrepancies, Property Management should take a complete physical inventory.
Results of Inventories
Department Inventory Coordinator will submit to Property Management a property listing that identifies all discrepancies disclosed by physical inventory. The listing shall include a signed statement that physical inventory of all or certain classes of property was completed on a given date and that the official property records were found to be in agreement with the physical inventory, except for discrepancies reported. The listing and signed statement will be furnished with a minimum of delay at the completion of the physical inventory.
Printouts and lists used to take inventory should be dated and signed by the inventory taker and retained for audit.
SECTION II - INTERNAL TRANSFER, RELOCATION AND LOAN OF EQUIPMENT
It is the responsibility of the department to notify Property Management of all relocations of equipment items as follows:
Relocation within a Department
When the only change is the physical location of equipment within a department, an Intercampus transfer of Equipment form must be completed and signed by the department property coordinator. A brief description of the item, the University number and the new location should be furnished. Forward the completed form to Property Management.
Relocation of Entire Department
After department relocates, the department should conduct a complete physical inventory of equipment and report it to Property Management.
When equipment is transferred between departments, an “Intercampus Transfer of Equipment” form must be completed and signed by the appropriate Dean, Director or Chair of the department transferring the equipment. This form must then be forwarded to the department that has accepted the equipment. This department must record the new location(s) of the equipment. The Dean, Director or Chair of the receiving department must also sign the form. The completed form must be forwarded to the Property Management. Property Management will then update campus inventory records to reflect the transfer.
Loans of University Equipment from One Department to Another
If equipment is loaned to another department for a short period, a memorandum of the transaction should be filed in the lending department.
Loans of University Equipment to External Organizations, Employees, or Other Individuals
Any loan of University equipment to an external organization or to an individual, including employees (e.g. for use off-campus), must have prior approval of the appropriate department Chair or Director and the University Property Management. All loaned equipment shall be listed on an Off Campus Use of Equipment Agreement form with a copy to the Property Management. When the equipment is returned, the lending department must notify the Property Management. Generally, University equipment is loaned to an employee exclusively for university business.
Inter-Campus Loans of Equipment
Inter-campus loans of equipment require prior approval of the appropriate department chair or director. Loans of one year or more are recorded on inventory records; inter-campus loans should be documented on the Off Campus Use of Equipment Agreement.
SECTION III - DISPOSAL OF STATE PROPERTY
ICSUAM Policy 3150.01 delegates authority to the President to sell or exchange any University state property.
Adherence to the following procedures will facilitate accurate recordkeeping related to the disposition of state property. The combination of accurate accounting records and strong internal controls shall be in place to protect against and detect the unauthorized use of University property.
If a department has property that is not being utilized, an Equipment Turn-In Request shall be completed and forwarded to Property Management. Property Management will arrange for proper re-use or disposal. Campus departments should never trade, cannibalize, or dispose of University property without approval from Property Management.
Surveyed property may be re-used or disposed of in the following ways:
Equipment in working order:
- Offered internally first via campus auction. Recipient department will be charged any moving or storage expense.
- Offered to all other CSU campuses. The receiving campus would be responsible for all costs of transportation.
- Offered donation by lot to educational institutions, public agencies and non-profit organizations.
- Offered for public sale on Public Surplus website.
Equipment not in working order:
- If possible, cannibalized for parts.
- Disposal to a certified, off-campus recycler by Property Management.
- Disposal to a refuse disposal company by Property Management.
Prior to removal off-campus, all equipment must have the property tags removed or obliterated. Proceeds from any sales will be distributed as follows:
- 50% to Shipping/Receiving for administration of sale;
- If specialized equipment is sold, the remaining 50% should be allocated to the department that originally purchased the equipment; and,
- If it is classroom furniture/equipment or surplus office furniture, then the remaining 50% should be used by Space Management towards the purchase of new classroom furniture.
Cannibalization of Property
If obsolete or broken equipment is cannibalized, the department is to complete the Equipment Turn-In Request form and send it to the Property Management. Failure to do so will result in the property not being found during the next physical inventory and reported to Public Safety as lost or stolen.
Lost, Missing, Stolen or Destroyed Property and Equipment
When a person discovers that University property or equipment has been lost or stolen, Public Safety and the Supervisor of Property Accounting are to be notified immediately. An Equipment Loss Report is to be completed and sent to the Property Management Office. The form will also serve as a survey request from the department, and the Supervisor of Property Management will generate a survey report. Attach the Equipment Loss Report to the survey documents and forward to the Property Survey Board for approval. Additionally, the Equipment Loss Report is to be used to report missing property not found during a department’s annual inventory.
Employees may be charged for any loss or damage to University property that is attributable to negligence or unauthorized use.CROSS-REFERENCES:
California State University Use of University and Private Vehicles Policy Guidelines
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