PROPERTY MANAGEMENT

Adopted: April 11, 2002
Updated: March, 8. 2006

GENERAL STATEMENT
University Union property accounting procedures are designed to maintain control identification and ensure accountability within the Plant Fund for all Union investments in nonexpendable property and for certain items of expendable property.

GUIDELINES AND PROCEDURES

Nonexpendable property consists of furnishings and equipment with a normal useful life (including extended life due to repairs) of three years or more, and an identity that does not change with use, and of a nature that makes property accountability practical, and an approximate unit cost of $1000 or more.

Expendable property consists of all expendable tools, equipment, materials and supplies, and items which would not otherwise be expendable but which have a normal useful life of less than three years or which cost less than $1000 or which have a nature which makes property accountability impractical.

Nonexpendable items of an acquisition cost which is less than $1000 will not usually be capitalized nor assigned to inventory records. The acquisition of such items over that amount will be considered as capital expenditure and items will be assigned to inventory records. Items of an acquisition cost of less than $1000 but which otherwise meet the test for non-expendability and which are purchased or accumulated (and maintained) in quantity amounts may be capitalized as "minor equipment and base supplies" and where feasible will be assigned to inventory records and will carry a common number for all like items.

Capitalized assets within the Union Plant Fund will be segregated to identify capitalized amounts within separate headings to identify and differentiate "capital improvements" (leasehold improvements) from “minor equipment and base supplies" and from "furnishings and equipment."


Additions and/or improvements to existing property items will be capitalized and added to inventory records utilizing the same determinations as for complete items of property.


All costs of acquisition, or addition, or improvements of or to capitalized items will be included in determining the capitalized cost, i.e., taxes, (trade-in), freight-in, installation, etc.


All capitalized items will be deleted from capital accounts and inventory records upon trade-in, or loss, or upon disposal due to wear and/or damage that places the item beyond economical repair and use.

Quantities of items within minor equipment and base supply will be maintained at a constant level by individual replacement of items, purchased as a current operation expense, except that the capitalized cost will be increased or decreased when an increase or decrease in quantity of such items takes place as a result of the determination that the quantity change is to be a permanent and appropriate change reflecting future operational requirements.


In addition to standard and acceptable account records maintained on the Union books of account, inventory records will be maintained to include:

  1. A chronological listing of property items added to or deleted from capital accounts. This listing will identify the items, the quantity, the purchase order number, the method and date of disposition (if any), the inventory number, the dollar cost per each and the dollar cost item total by capital account category.

2. A computerized data base of each item detailing the item name, quantity, inventory number, manufacturer, model, serial, color, cost each, cost total, purchased from, purchase order number, description, last date verified, and most recent count and comments.

Inventory numbers will be placed on Union property in as inconspicuous a location as possible, will begin with UU and will be assigned in sequence.

Theft sensitive property, those items or groups of items which are highly desirable and portable, such as hand tools, recording equipment, calculators, sound equipment, etc., even when not being capitalized, may be assigned to inventory records for identification and control purposes. Note that acquisition costs of these items must not be included in capital asset totals. Union inventory numbers will be labeled on the item in all cases possible but not in such a manner as to damage or deface any items. If labeling is not possible in the manner noted above, then permanent ink marking of a contrasting color may be used, also ensuring that this is done inconspicuously and without defacing or damaging the item. On some wood items a combination of engraving and filling the engraving with permanent ink may be desirable to ensure permanency.

Not less than one-third of the University Union property inventory will be verified yearly during the last month of the fiscal year and this verification shall additionally include all large quantity or especially large dollar items.

The determination for specific items by definition of "furnishings and equipment," "expendability", or "leasehold improvements" will be by applying as reasonably as possible the State of California definitions. (SAM, Chapter 8600).