Property Administration - UTDBP3066

Policy Statement

Property Administration

Purpose and Scope

The Texas Comptroller of Public Accounts is responsible for accounting all property owned by state agencies and institutions. The Comptroller requires that state agencies and institutions comply with the provision for personal property accounting as detailed in the Texas Government Code, Chapter 403, Subchapter L, and The University of Texas System Rule 80201: Disposal of U.T. Surplus Property.

Texas Government Code 403
https://statutes.capitol.texas.gov/Docs/GV/htm/GV.403.htm
Subchapter L. Property Accounting Sec. 403.271 – 403.278

Texas Government Code 403.2715 and Administrative Code [34 TAC sec. 5.200] outlines that UTD is accountable for the custody, care, and maintenance of all University property and will be responsible for maintaining detailed property inventory records as prescribed by the Comptroller. In addition, each agency or institution must conduct an annual physical inventory of all property in its possession and submit the results of the inventory within forty-five (45) days of completion.

The President of the University has delegated responsibility for this activity to the Vice President for Facilities and Economic Development (VPFED), and is considered the official Property Administrator. The Director of Logistics and Distribution oversees the yearly inventory process throughout UTD. Subsequently, each department head is responsible for the proper custody, maintenance, and safekeeping of UTD property assigned to their department. The department head can assign an appointee who can act as custodial contact; however, the ultimate liability for the property rests with the department head. The custodial contact’s name and any changes in responsibility should be forwarded via email to the Inventory department. Property Training is conducted yearly via the Compliance Training Module sent out by Institutional Compliance.

Inventories - Purpose and Scope

Purpose and Scope

In accordance with state law, UTD performs a complete physical inventory of all barcoded UTD property once each fiscal year. Such property includes capital assets ($5,000.00 per single unit and an estimated useful life of more than one year), debt-financed property, and controlled assets as defined by the State Comptroller, i.e., assets that qualify as property and do not meet the capitalization threshold but must be tracked due to the nature of the item.

Each department head acts as the custodial authority for the personal property within his/her allocated area and is responsible for the stewardship and maintenance of UTD property. It is important that accurate property control records be maintained, not only at the University level, but also at the departmental level, so that periodic audits at the local, state, and federal levels may be accomplished without risk of loss to the University.

Individual departments must notify the Inventory Department whenever stationary assets are relocated. Once notified that a stationary asset has moved, updates in the system can reflect the new location.

Annual Inventories

Once during each fiscal year, the University shall make a complete physical inventory of all property in its possession. The Inventory Department will send each custodial contact and/or department manager an inventory packet consisting of the following documents:

1. Instructions for the current inventory cycle
2. Mobile Asset List
3. Inventory and Surplus document with guidelines on proper procedures for stationary asset inventory, mobile asset inventory, surplus, departmental transfers, and transfers with other universities.
4. Missing and stolen form

At the end of the yearly physical inventory, all custodians and department heads will be given a Final Inventory Report for their areas of responsibility. The report will show what items were and were not accounted for in the department for their inventory cycle. Vice Presidents and Deans will also receive an Inventory Report for their areas of responsibility. A Final Inventory Report encompassing the entire University Inventory will be sent to the Property Administrator and the Office of the President.

1. Causes for Changes in Inventory Listings

   The Inventory Department must receive appropriate documentation for each request for change of inventory status. See below for the particular documentation required.

   The custodial contact of a department must notify the Facilities Management moving crew or Surplus (for computers/laptops/tablets, etc.) for assets needing to be picked up for Surplus. After assets are delivered to Surplus, the Area ID will be updated.

   Possible causes for removal or additions to a departmental inventory include, but are not limited to, the following categories:

   • Transfer of Equipment Between Departments – Email from the custodial contact of the original department to the custodial contact of the proposed new owner department, requesting permission to have the asset(s) transferred between departments. Both department heads must be included in this email. When approval is received, forward that email to inventory@utdallas.edu
   • Missing Equipment - A completed Missing or Stolen form must be submitted to inventory@utdallas.edu (This is covered in greater detail below)
   • Stolen Equipment - A completed Missing or Stolen form must be submitted to inventory@utdallas.edu. A copy of the police report filed with the police department should also be included (details below).
   • Cannibalized Equipment - An email must be sent to inventory@utdallas.edu from the custodial contact of the department with the asset number and reason for cannibalization. The V.P. or Dean of the department must be included in the email.
   • Any equipment sent to Surplus – The Inventory Department must be included in any emails to Surplus concerning assets being turned over by the department.
   • Equipment Trade-ins – When departments trade in an asset, the Inventory Department must be notified before the transaction for approval. Assets traded for other assets must be similar in nature before the trade-in can be approved. The P.O. for the new asset must be included along with a copy of any other paperwork. The department head must also be included in the email.
   • Equipment transferred to another university – A completed in-state or out-of-state transfer form must be filled out, signed, and submitted to the Inventory Department.

Special Inventory Procedures

1. Off-Campus and Remote Work Assets

   If a faculty or staff member’s job duties require the use of stationary assets at an off-campus location, including their home, the Inventory Department must be notified via email by the custodial contact with the department head included in the email. Equipment to be used off campus must be used for official University-related functions only. Property will also be accounted for and inventoried like any other campus asset. When the custodial contact emails Inventory concerning off-site usage, the email must include the asset number, description, and the name of the responsible party. It is ultimately the department’s responsibility to keep records of the location of any of their off-campus assets and educate those taking the assets off campus regarding their responsibilities and accountability for those assets.

2. Equipment Returned to Vendor

   Any equipment returned to the vendor must be coordinated through the Inventory Department. The custodial contact must email Inventory with the asset tag number, description, name of the company the asset is being returned to, why the asset is being returned, and a copy of any paperwork describing the transaction.

3. Trade-Ins of Equipment (Existing Fixed Assets)

   Any equipment to be traded in for the purchase of new equipment must be coordinated in advance through the Purchasing and Inventory departments. The requesting department must include detailed information on the requisition addressing the item to be traded in (UTD inventory number, description, manufacturer’s model, serial numbers, and trade-in allowance). In addition, this process will provide the Finance and Inventory departments with the information necessary to value the newly acquired asset and provide documentation for removing the traded asset from the University’s records. If applicable, the requisitioner should contact the Central Receiving Department to arrange for the shipment of the outgoing equipment.

Stolen/Missing Equipment

Stolen Property

If it is determined that property assigned to a department has been stolen, the custodial contact must immediately notify the University Police. The custodian should be prepared to provide the investigating officer with as much detail as possible; i.e., UTD inventory numbers, dates, times, names, etc., for the Police Department’s investigative report(s). The custodial property manager must complete and forward the original document to the Inventory department. The University Police Department must submit a copy of the investigative document(s) to the Inventory department. Upon receipt of all the above-referenced documentation, Inventory will update the information in PeopleSoft and remove the asset from active inventory. Missing or Stolen forms must be signed by the Department head and the Dean or V.P. of the department.

Missing Property

If it is determined that property assigned to a custodial account is missing, the custodian contact must inform the Inventory Department and obtain a copy of the Missing or Stolen Property Report for State Departments, Institution, and Agencies form. The custodial contact must complete and return the form to the Inventory Department after it is signed by the Department Head and Dean or V.P. of the department.

Upon receipt of the documentation, the Inventory Department will update the University’s records to reflect the missing status of the asset. Through this process, the record is set aside until the property is found or the criteria for deletion (three physical inventory periods and/or three calendar years from when the item is coded as missing with the State Property Accounting System) is met. The Inventory Department will apply expanded search criteria and review all inventory-related procedures and correspondence in an effort to locate the item(s). Property meeting these criteria will be deleted from the University’s records.

Sale of Surplus Personal Property to UTD Employees

The sale of surplus/salvage property to UTD employees may be completed only in accordance with Regents' Rules and Regulations. See Regents Rule 80201 and UTS 159, section 4. https://www.utsystem.edu/sites/policy-library/policies/uts-159-purchasing.

Property Held in Trust

The Texas Comptroller of Public Accounts is responsible for the administration of the State’s Personal Property Accounting System (See Texas Government Code, Section 403.271 (b).)

The State Property Accounting System (SPA) defines trust property as “assets held by an agency on behalf of a non-state entity (see examples listed below) and which are under the temporary control of the agency.” (See SPA Policy and Procedures manual.)

The State Property Accounting System’s policy regarding trust equipment states that “all trust property must be reported on an agency’s personal property accounting system, using the reporting format prescribed by the comptroller.”

Examples of equipment held in trust include, but are not limited to:

• Art collections owned by families, estates and others
• Government furnished equipment (government-owned/contractor-held).

Trust equipment is subject to the Comptroller’s State Property Accounting System reporting criteria as authorized under the Texas Government Code Ann., Sec. 403.271(b) and is recorded in UTD’s fixed asset subsidiary system in accordance with SPA policy. This includes equipment purchased with federal funds, which must adhere to the requirements of FAR45, OMB Circular A-110, or the Department of Defense Manual 4161.2-M, dated 12/91.

Trust equipment is also subject to the University’s policies detailed in this manual on pages F15-100.0 through F15-130.3.