10.40 Property Inventory and Products Last Updated:October 3, 2005
10.40 -- Property Inventory and Products
Last updated:October 3, 2005
A. General. The Property Management Office (PMO) of Business Systems and Accounting Services is responsible for identifying and reporting all stand-alone property items that have a cost or estimated/appraised value (gifts & donations) of $2,000 or more and a useful life of one year or more., which meet the property criteria listed below. -
A-1. Property Criteria. DefinitionsDefinitions:
Property: Items with a cost or estimated/appraised value (gifts & donations) of $2,000 or more and a useful life of one year or more.
Cost: The initial price of the item or items (if constructed), including shipping and handling, applicable taxes, installation and ancillary costs (cords, cables, pipes, etc.) necessary for the item to function for the purpose for which it was acquired.
Equipment (capitalized): Property that cost $5,000 or more. (If purchased with funds from grants or contracts, these costs are normally exempt from Facilities and Administrative charges.)
Capital leases: Present value of minimum lease payments on unit costs of $5,000 or greater.
Capital Outlay Expenditures: Purchase of an item with a unit cost of $300 or more and where the account code used to purchase the item begins with E6.
Repairs, betterments or improvements: (a) Extend the estimated useful life; (b) increased capacity; (c) substantial improvements in the quality of output; or (d) substantial reduction in operating cost. [Note: If the cost or value is $5,000 or greater, it is capitalized.]
[Note: The PMO will provide new uniquely numbered blue property stickers tags for the purpose of identification of UI property under $2,000 for attractive, nice-to-have items such as computer equipment, audio visual and video equipment, radios, TVs, cameras, projectors, palm pilots, PDA’s, GPS’s, etc., and these tags can be used as a tool to assist in departmental tracking of inventory. A sample Excel spreadsheet to assist departments in tracking their inventory items is located here. Additional blue property stickers tags can be obtained upon request to the PMO. The blue property stickers tags are not included in the physical inventory required under Idaho state code section 67-5746 [See 10.40 C-51, i]. The department unit is responsible for affixing the blue property stickers tags to the corresponding item(s).]
A-2. Ownership.
i). The University owns all property: UI The University owns all property purchased with UI University funds and all property received as gifts. In addition, except where provided by the terms of a grant or contract by operation of law, UIthe University owns all personal property. Although title to property purchased with funds from a grant or contract may not vest in the university, UI exercises the responsibilities of ownership for such property. No department, departmental unit, or member of the staff or facultyUIUniversity employee, may hold proprietary interest in any particular piece of UI University property, or property purchased with grant or contract funds thatwhich is held by UIthe University. Regardless of which departmental unit ordered the item, the fund cited, or the budget expensed, the principle of UI University ownership prevails.
ii). Property Numbers: The PMO provides a unique University property number for all property items included in the university’s property inventory system and creates a corresponding item record in the Banner Fixed Assets database. The number is the license plate for licensed vehicles and other licensed items (e.g. trailers, ATVs, snowmobiles, motorcycles, etc.). For all items that physically can be tagged, the number is on a red property tag for items purchased with grant funds, and is on a yellow property tag for all other items.
iii). Blue Property Tags: The PMO will provide new uniquely numbered blue property tags for the purpose of identification of UIUniversity property under $2,000 for attractive property such as computer equipment, audio visual and video equipment, radios, TVs, cameras, projectors, palm pilots, PDA’s, GPS’s, etc. These tags can be used as a tool to assist in departmental tracking of inventory. A sample Excel spreadsheet to assist departments in tracking their inventory items is located here. Additional blue property tags can be obtained upon request to the PMO. The blue property tags are not included in either Banner Fixed Assets or the physical inventory required by operation of Idaho state code section 67-5746 (see 10.40 C-5, i-, below). The DPA is responsible for affixing the blue property tags to the corresponding item(s).
A-3. Unit Responsibility. The administrator of each department and/or departmental unit (department head or equivalent) is responsible for safeguarding and maintaining property assigned to or in his or her control, including the development and implementation of appropriate operating procedures and internal controls. Further, each administrator is responsible for insuring a physical inventory of all property identified through the UI Banner Fixed Assets property inventory system is conducted once each fiscal year. When a change in administrators occurs, the new administrator assumes responsibility for all property assigned and is well advised toshould promptly verify the accuracy of the assigned inventory.
i). Choosing a Department Property Administrator (DPA).
A.Designation of Department Property Administrator (DPA): Property management is an important function at the University. Prudent business practices help protect the University’s multi-million dollar investment in capital equipment, meet government and sponsor requirements, and support indirect cost recovery associated with assets at the University. Each administrator is responsible for insuring effective implementing property administration effectively andthat is in compliance with this policy. Each department administrator shall designate a DPA. The department administrator is responsible for compliantly within their department by ensuring that DPAs receive full cooperation from end-users and purchasers of property cooperate fully with the DPA.
B.Qualifications for DPAs: Selecting and designating a well-qualified DPA is critical to ensure effective property management occurs at the departmental level. It is imperative that the right people are hired into (or assigned) the DPA responsibilitydesignated as DPA, as they must interface with all faculty, staff and students working in their respective area. They are also the liaison between their department and the PMO.
The DPA must satisfy the following criteria: Following is a recommended profile for a person appointed as a DPA:
• Must bBe a University employee
• Have current knowledge and understanding of all facets of property management, including associated policies and procedures, or ability to quickly learn the policies and procedures.
In addition, it is recommended that the DPA meet the following criteria:
• Demonstrated eEffective communication skills
• Problem-solving
• Knowledge and understanding of all facets of property management, including associated policies and procedures
• Receives support from management in carrying out property management tasks and attending required training
• Positive and persistent attitude toward accomplishing tasks
• Has gGood organizational skills
Departments must notify the PMO when a change in DPA occurs as the DPA is the daily contact between the department and the PMO.
ii). Security of Property. Each member of the University communityemployee has a general obligation to safeguard and make appropriate use of property owned by or accountable to the University. This includes property either assigned for individual use, or as part of a common area. This obligation includes but is not limited to:
• Notifying the appropriate Department Property Administrator (DPA) of the acquisition, movement or disposal of property in a timely manner;
• Exercising reasonable care in use to prevent damage and maintain existinggood condition, accounting for reasonable wear and tear resulting from use;on
• Exercising reasonable security measures to prevent theft or misuse;
• Reporting lost, stolen, damaged or otherwise impaired property to appropriate parties in a timely manner, including but not limited to a direct supervisor or common area manager
Accurate and effective management will benefit individual departments and the University as a whole. For assistance, departmental staff should contact their DPA. DPAs requiring assistance should contact the Property Management Office.
Accurate and timely reporting of all property, whether sponsor-funded or not, directly impacts Facilities and Administrative Rate (indirect) cost recovery and other reporting requirements.
A-4. Usage. UI University property should may only be used in the performance of university University functions. Property may not be rented or lent loaned to any person or group for private use without the recommendation of the appropriate administrator and the written authorization of the Vice President for Finance and Administration. Property purchased with funds from grants and contracts may have additional usage restrictions. Contact the Office of Sponsored Programs (208-885-6689)51) for additional information.
A-5. Theft or Misappropriation. Theft or misappropriation of UI University property and/or private property on UI University premises constitutes violation of Idaho law and Board of Regent’s policies.
A-6. Storage.
i). Storage of non-University property: Except for office decorations (such as artwork), UI University buildings or grounds may not be used for the permanent or continuous storage of personal property that is not used for official purposes; any property continuously stored in UI University facilities is presumed to be UI University property.
ii). Storage of University property: Ideally, University property no longer needed or used by a department should be transferred to the Surplus Property department [see 10.41] for potential reutilization or disposal; it should not be placed in storage. Unnecessary storage of property is not cost-effective, fills valuable space, incurs the risk of potential loss, damage or misuse, and continues to require records maintenance and physical inventory. If there is a justifiable reason for an item to be placed in storage, the DPA must notify PMO of the user status change to “idle” and the actual location of the storage area. Upon receipt of notice of a status change to idle, the PMO shall update the so the Banner Fixed Assets database can be updated. While the property is in storage, the DPA is responsible for ensuring that care should beis taken to ensure the method and location of storage is adequate for the type of items being stored and that property is they are secured in a manner whichthat will prevent loss, damage, or destruction to the property.
A-7. Disposal of Property. Except as provided below for livestock, UI University property may only be disposed of as outlined [See 10.41] under Surplus Property Inventory procedures [See 10.41].
A-8. Disposal of Livestock by the College of Agricultural and Life Sciences.
Slaughter Animals. Surplus meat animals and surplus breeding animals not considered satisfactory for breeding purposes are usually consigned to public market. Those not considered satisfactory for breeding purposes are so designated when delivered to market. Limited numbers of meat animals of the Department of Animal and Veterinary Sciences are slaughtered in the department's abattoir for instructional or research purposes. The products from these animals are sold to UI University units such as Housing and Food Services, to local retail outlets, or through the Meats Lab at retail prices. The sale prices are determined from the "Yellow Sheet" published by the National Provisioner, Chicago, Illinois.
Breeding Animals. Surplus breeding animals may be disposed of through recognized consignment auctions and certain animals may be designated as experimental animals and placed in other university or private-cooperator herds or flocks under formal agreement with the College of Agricultural and Life Sciences. Breeding animals that are not disposed of in one of the foregoing ways are periodically advertised for sale in accordance with general UI University procedures for the disposal of surplus property.
Bid Opening. When bids are opened on animals advertised for sale in accordance with general procedures for the disposal of UI University property, the designated official from the department concerned is responsible for recommending one of the following actions: (a) accept the high bid; (b) accept a bid other than the high bid, if it is to the definite advantage of the university to do so; or (c) reject all bids with a recommendation that the animals be re-advertised for sale or a recommendation of the conditions under which the animals would be sold at private treaty with written approval of the dean of the College of Agricultural and Life Sciences.
B. Process. Property Management Office (PMO). The PMO is charged with the development and coordination of a university-wide system of property management and with assisting departmental units in the discharge of their property management responsibilities. The PMO and internal audit will periodically conduct sample verification of physical inventories within departmental units as a means of evaluating the effectiveness of the inventory system. These verification inventories may incorporate various sampling techniques as part of the verification process, including statistical, stratified, judgmental, purposeful, or other sampling or testing methods.
B-1. Inventory Results and Reports. The PMO shall post rResults of a physical inventory are posted to Banner Fixed Assets and generate reports are generated within 30 days after the completion of the inventory. The PMO shall analyze After analyzing the results for each inventory, determine whether corrective actions for property administration practices need to be taken, may apply and the PMO will work with each area to correct these problemsimplement any corrective actions. The PMO may conduct additional investigations to evaluate the effectiveness of the proposed changes. Positive recognition is given to those Departmental Unit Administrators (DPAs) and departmental units that meet the performance objectives in an inventory.
The PMO shall distribute the report to at least Report distribution will include, but is not limited to, the following:
- Accountable unit administrator and DPA, if a different employee
- Dean or equivalent area Vice President
- Business Systems and Accounting Services and University Controller
- Office of Sponsored Programs (where applicable)
- Risk Management, (where applicable)
Content and format of reports may vary, depending on the needs of the receiving department.
C. Procedures. The following procedures are required for departmental units or administrator(s) assigned responsibility for property inventories.
C-1. Inventory Procedures. Physical inventories of property are conducted at the University to verify the accuracy of the property records in the Banner Fixed Asset database as well as the existence and activity status of the assets. Results of an inventory provide an excellent overall assessment of the effectiveness of the property management system at the University and the level of compliance with established policies and procedures. Data is used in various management reports, including financial statements, grant and contract sponsor reports, and data presented to the Board of Regents and various State of Idaho agencies.
When a Departmental Property AdministratorDPA maintains good property management practices on a routine basis, the physical inventory is trulybecomes a matter of verification and should pose little stress or inconvenience onto the department. Good daily property management practices, considered routine in the day-to-day operations of a department, include but are not limited to:
- Affixing all University property tags received from the PMO to the item(s) within 14 days of receipt
- Notifying the PMO of all changes in location (building and room), user status (active, idle, not located), and condition (excellent, good, fair, poor)
- Transferring iItems designated for the Facilities Surplus Property Office in a timely manner and consistent with are appropriately transferred to themAPM section [see 10.41].
These tasks should not be rushed through in the few weeks prior to the inventory, and are not performed just “to pass the inventory”.
C-2. Custody and Return of Property by Departing Employees. At least annually, eEach DPA should periodically review the inventory to ensure the assets are under the control of current University employees. It is recommended that this occur at least annually- Each department is responsible for establishing a standard procedure process for ensuring that departing employees do not remove University property. The procedure should include a Among the check-out points, meeting with the DPA and transferring the custody for assigned assets should be included. Employees are required to return to the department any University-owned property in their possession whether on or off campus. The only exception is where the item was purchased in whole or in part with funds from federally sponsored grants and contracts or government furnished property, and pursuant to the terms of use of the property, such property may be transferred to another entity. See [10.40 C-7, iv] for these policies and procedures.
C-3. Off-campus Use of Property. The use of property purchased by the University, provided by a sponsor, donated, or otherwise accountable to the University may need to occur at a location other than University sites (main campus, research and extension centers, education centers, etc.). Examples of a location that would be considered “off-campus” include the residence of a University employee or a temporary work site. Regardless of location, use of property must still directly benefit the University or the sponsored project for which the property was acquired.
The responsibilities of the custodian of the property are the same regardless of the location, which are detailed in the Security of Property section [See 10.40 A-3, ii].
Property that is frequently in transit between a campus and an off-campus location, or property normally in an off-campus location, must be documented on a University of Idaho Off-Campus Equipment Verification Worksheet. The worksheet must be updated annually and maintained on file by the Departmental Property AdministratorDPA. It will be used to substantiate the location of an asset during the physical inventory, inventory verification reviews by the PMO, and audits conducted by internal audit. Property that is to remain off campus more than 30 days must have an off-campus location listed on the Banner Fixed Asset record. If a new one needs to be created contact the PMO for assistance.
C-4. Movement of Property. Each Banner Fixed Asset property record must reflect a correct location of for the property. Each department is responsible for establishing a communications method whichthat will enable the DPA to expeditiously update the location information with the PMO for their property.