Responsibilities, Inventories, Reporting and Tracking of University Property

Responsible Officer: Vice President for Business Affairs and Controller

Sponsoring Department: Asset Management

Revision Date: 23 April 2013

Errors or changes to: aim@uta.edu

Procedure Objective

Procedure 2-43 provides procedural guidelines for using and safekeeping university property in accordance with applicable laws and rules. This procedure describes the various responsibilities of university officials and employees and acquaints all university personnel with current state laws and university rules, regulations and procedures to be followed in using and safeguarding university property. Moreover, this procedure states that university employees may only use the property for state purposes and must exercise reasonable care over the property. To help maintain and protect university property, this procedure documents the purpose and method of taking an annual inventory, issuing reports for Government-owned property and how to track capital and controlled assets via the *DEFINE Inventory Module.

Rationale

The use of university property must be in accordance with current State laws and university rules, regulations and procedures. Texas State Government Code Chapter 403.271, Property Accounting, establishes the current guidelines for property accounting and responsibility. University property is State property and may be used for official purposes only. In accordance with state law, the University must complete a physical inventory of all capital and controlled assets in its possession at least once a year. Also, reports are needed because various government agencies require periodic reports of Government-owned equipment in the University's possession. To help keep track of capital and controlled assets, university departments need to learn and use the *DEFINE Inventory Module (NVM).

Scope

All university employees and departments who use and/or in possession of university property.

Related Statutes, Policies, Requirements or Standards

Contacts

If you have any questions about Procedure 2-43, Responsibilities, Inventories, Reporting and Tracking of University Property, contact the following departments:

SubjectOffice NameTelephone NumberEmail/URL
All topics in ProcedureAsset Management(817) 272-2191assetmanagement@uta.edu
http://www.uta.edu/policy/bac/inventory
Website accessAdministrative Information Management(817) 272-0222aim@uta.edu
http://www.uta.edu/aim

Definitions

Personal Property: Any possession of the State of Texas having sufficient value to warrant inclusion in the fixed asset portion of financial reports or due to the nature of the asset that is required to have management controls placed upon it. Personal property does not include consumable items nor does it include real property such as land or buildings, improvements to land or buildings, or infrastructure.

Capital Assets: A capital asset is a possession that meets the above personal property criteria and that have a single unit value of $5,000 or greater and an estimated useful life of more than one year. (This dollar threshold was established by the Texas Legislature, and became effective September 1, 2001).

Controlled Assets: As defined by the State Comptroller, assets that qualify as personal property but do not meet the capitalization threshold and that must be secured and tracked due to the nature of the item. Below is a list of controlled items:

Controlled Property:

Controlled (at any cost)
Object CodesClass CodeProperty Item
1837106Hand Guns
1837107Rifles, Machine Guns, Shotguns
1847204Desktop CPU - not Apple
1847214Desktop CPU - Apple
1847284Portable CPU/Laptops; not Apple
1847294Portable Apple CPU/Laptops
Controlled ($500.00 to $4,999.99)
Object CodesClass CodeProperty Item
1837218Data Projectors
1837129Stereo Systems
1837130Cameras, Video Cameras
1837131TV/VCR/Camcorders/Laserdisk Players
1847208Printers - not Apple

Annual Physical Inventory: A complete physical inventory of all capital and controlled assets in the possession of departments, centers, and designated University offices that must be taken at least once a year.

Missing: Equipment whose disappearance cannot be explained.

Equipment: A tangible asset that is functionally complete for its intended purpose, durable, nonexpendable, and needed for the performance of a contract. Equipment is not intended for sale, and does not ordinarily lose its identity or become a component part of another article when put into use.

Departmental High Risk Assets: The controlled assets listed above with a value of less than $500.00. These assets should be tagged with a departmental tag and a listing of the assets should be maintained in the department.

Equipment Held in Trust: As defined by the State Comptroller, assets held by an agency on behalf of a non-state entity and which are under the temporary control of the agency.

Responsibilities

President of The University of Texas at Arlington
  • Has ultimate responsibility for property in possession of the University
Vice President for Business Affairs and Controller/Property Manager
  • Serves as the University's Property Manager

  • Coordinates through the Asset Management Office the annual physical inventory of all capital and controlled assets in the University's possession

Department Heads
  • Sees to the day-to-day care and accountability of university-owned property within their department

  • Completes an annual physical inventory

  • Ensures that university property is used for official purposes only

Asset Management (AM) Office
  • Assures that the state requirements and university procedures are followed for property in possession of the University

  • Provides instructions to each department outlining the procedures to be used to conduct the annual inventory

University Employees
  • Uses state equipment only for state purposes and exercises reasonable care for its safekeeping

  • Uses the exact inventory book value of an item on forms and in correspondence when requiring the inventory value

Procedures


Section I. Rules and Regulations

Rules and regulations concerning property of the state may be found in the following location:

Texas Government Code, Chapter 403.271 through 403.278

Each Session of the Texas Legislature may change any of the rules and regulations concerning asset management.

The Asset Management (AM) Office at the University of Texas at Arlington manages the accountability and responsibility for state property according to the provisions of state law and the Board of Regent's Rules and Regulations.

The State Controller has developed a statewide property accounting system to assist the state government in accounting for state and federal government property. The State Property Accounting (SPA) System is also intended to serve as a governmental tool to assure the public that the assets entrusted to state agencies are being maintained and used properly. The procedures for Asset Management adopted by the University of Texas at Arlington comply with the SPA guidelines.

Section II. Responsibility for University Property

The President of The University of Texas at Arlington is ultimately responsible for property in possession of the University. The Vice President for Business Affairs and Controller has been designated as the Property Manager. Responsibility for the day-to-day care and accountability of property has been delegated to the department heads. They are responsible for maintaining appropriate records, for completing an annual physical inventory of university property assigned to their departments and for ensuring that university property is used for official purposes only. The Asset Management (AM) Office at The University of Texas at Arlington is responsible for assuring that the state requirements and university procedures are followed.

Each state employee is responsible for using state equipment only for state purposes and to exercise reasonable care for its safekeeping. The term "reasonable care" means that, at a minimum, steps are taken to maintain the asset in an acceptable manner, ensure the security of an asset, ensure that an asset can be located at any time requested, and ensure that the person responsible for the asset is known. At no time should state property be used for personal gain.

Section III. Penalty for Excessive Lost Property

The University may be penalized for excessive lost property as outlined in General Appropriations Act, Article IX, Section 12.04 Lost Property states:

"The Controller shall withhold from the General Revenue Funds, General Revenue-Dedicated Funds, or Other Funds appropriated to the state agency or institution of higher education by this Act an amount equal to 50 percent of the value of the lost property originally purchased with those funds provided that the loss falls outside the standards promulgated by the American Society for Testing and Materials. If a state agency or institution of higher education subsequently recovers or accounts for lost property to the satisfaction of the Comptroller, the Comptroller shall release to the state agency or institution of higher education a proportional amount of previously withheld General Revenue Funds, General Revenue-Dedicated Funds, or Other Funds."

The State of Texas will run reports for the prior year, and then continue on a quarterly basis. If the amount of missing/stolen assets is greater than 2 percent of the total net book value, then 50 percent of the value greater than the 2 percent threshold will be withheld from the University's general revenue funds. One exception to this rule is for firearms: all lost firearms are subject to withholding of 50 percent of their net book value.

Section IV. Tagging of Equipment and Inventory Carrying Values
  1. Tagging of Equipment: As property items are acquired, they are tagged with a uniquely numbered property tag. This tag will include the statement "Property of UT Arlington." It is the University's procedure to affix a property tag to the property after it has been received and inspected by Central Receiving. For property that is delivered to the department without an inventory tag, the Asset Management Office (AM) must be notified. The AM Office will assign an inventory number and tag the equipment in the department. If an item cannot be tagged due to the nature (size, use, material, etc.) of the item, the inventory tag will be affixed to a 5x7 card and the card will be retained in the department's inventory file for verification.

  2. Inventory Carrying Values: The acquisition cost, or inventory book value, of a property item remains the same as long as the item is carried on the University inventory. The acquisition cost includes all shipping and installation charges required to get the equipment to its usable state. Department personnel should always use the exact inventory book value of an item on forms and in correspondence requiring the inventory value.

Section V. Inventories (General) and Annual Inventory
  1. Inventories (General): Physical inventories are required annually. An annual inventory of all U.S. Government owned equipment will be performed in conjunction with the annual inventory of university owned equipment. A combined listing of both university and U.S. Government owned equipment will be sent to each Dean, Chairman, or Department Head of all equipment assigned to their department. It is the responsibility of the departments to conduct the annual inventory, certify and sign that the inventory was performed and return the certification to the AM office. Any adjustment to the U.S. Government-owned inventory will not be made without approval from the ONRRO or cognizant Property Administrator. For information regarding inventory reports of Government-owned equipment see Section V. Reports in this procedure.

  2. Annual Inventory: In accordance with State law (Texas Government Code Chapter 403, Section 403.273) a complete physical inventory of all capital and controlled assets in the possession of departments, centers, and designated University offices must be taken at least once a year. The Property Manager coordinates this process through the AM Office. When completed, the Property Manager must forward a signed Certification of Physical Inventory Conducted by Agency form to the State Comptroller.

    1. The time frame for each department's inventory is established by the Property Manager through the AM Office. In accordance with requirements, the AM Office will provide instructions to each department outlining the procedures to be used to conduct the annual inventory.

    2. Training is available, if needed, during the physical inventory. For more information about training for the physical inventory please contact the AM Office at (817) 272-2191.

    3. For information on how to track capital and controlled assets assigned to university departments in *DEFINE, please see Section VI. *DEFINE Inventory Module in this procedure.

Section VI. Reports
  1. Various Government agencies require periodic inventory reports of Government-owned equipment or updated cost information. These reports are normally prepared and submitted by the Federal Equipment Administrator, Office of Accounting. They are based on data from the property records and information provided by the departments.

  2. Grants and Contracts have specific inventory reporting requirements that vary by sponsor. Most federally funded grants follow the property requirements in OMB A-110, Section 33.32(a).

Section VII. *DEFINE Inventory Module

The *DEFINE Inventory Module NVM is used by the University department to track capital and controlled assets assigned to their department care.

  1. User Authorization: All departments have access to the NVM module. Update authorization is necessary to change official records. For authorization to the NVM module, contact the *DEFINE Education department at ext. 2-2138 or define@uta.edu.

  2. The following are NVM commands:

    1. NV1- Displays information by inventory number. This screen is used to view and update individual inventory records.

    2. NV3- Displays information by Department Unit code. All inventory items that belong to your department/unit will be displayed in numerical order.

    3. NV6- Displays information by document ID number. This command will list the inventory items entered into the department's inventory from a specific accounting document. If a capital or controlled item was purchased with this document, it will be listed on this screen.

    4. NV7- Displays information by Serial Number. If a serial number was entered into the system, the inventory number will be displayed on this screen.

    5. NVP- Displays Physical Inventory by Unit/Location. This command is used to conduct the annual physical inventory.

    6. NVR- Departments can order listings or reports from the inventory module.

  3. Building and Room Number Location Maintenance: Building and room numbers can be updated using the NVP, NV1 or NV3 screens. A listing of university buildings and their numbers may be found by clicking on the "Attachment" below. Locations of assets should be updated as items are located during the annual inventory and as items are relocated during the year.

UT Arlington Buildings (Sorted by Building Name)

Forms and Tools/Online Processes

Appendices

None