UPPS No. 05.01.01
Issue No. 7
Effective Date: 11/05/2014
Next Review Date: 9/01/2018 (E4Y)
Sr. Reviewer: Director, Materials Management and Logistics
Texas State University personnel must exercise reasonable care to protect the university’s property and equipment.
This policy applies to all university property and equipment, regardless of the source of funds from which these items were acquired. Property and equipment donated to the university are included under this policy.
Property and Equipment - Generally, this includes assets with useful lives greater than one year that are necessary to conduct the business of the university, such as: audiovisual devices, computers, furniture, tools, machinery, buildings, and land. For purposes of this policy, the term refers to all such items owned or leased by the university or items on loan to the university. These items are referred to as “university property” throughout this policy.
Capital Assets - Those items costing $5,000 or more which must be capitalized and maintained on the university’s inventory, in accordance with the requirements of the State Comptroller’s Office.
Controlled Assets - Those items that cost less than $5,000 (below the capitalization threshold), but which must be maintained on the university’s inventory in accordance with state requirements because of the high-risk nature of the asset. A complete list of controlled assets is available on the state comptroller’s website.
University Controlled Assets - Those items that are not considered state- controlled assets, cost less than $5,000 (below the capitalization threshold, but more than $500), but have been determined to be maintained by the university’s inventory.
State Property Accounting (SPA) - The office under the state comptroller of Public Accounts that accounts for and tracks assets of state agencies and some institutions of higher education of the state of Texas.
Electronic Verification of Equipment (E.V.E.) - Per state mandate, all personal property owned by the state shall be accounted for by the agency that possesses the property (Texas Government Code, Ch. 403, Section 403.272 (b)). Electronic verifications of property and equipment in the possession of the university will be done by Financial Services using an E.V.E. inventory methodology.
Loan of Property and Equipment - Use of university property by a non-profit entity other than a Texas State employee.
Off-Site Use - Use of university property by a Texas State employee at a location other than the university’s regular place of business.
Personal Use - Use of university property by a Texas State employee for their personal needs, unrelated to university business purposes.
University Business Purpose - Activities or events that serve a valid public purpose.
Agency Head - The university president is responsible for the custody and care of property in the university’s possession and has designated a property manager as provided in Texas Government Code, Section 403.2715.
The president has designated the director of Materials Management and Logistics as the university’s property manager. In this capacity, he or she is the custodian of all personal property possessed by the institution and is responsible for:
coordinating with the General Accounting Office to assure accuracy of the property records, in accordance with generally accepted accounting principles;
conducting appropriate inventories and reviews of university property;
arranging transfers of property to facilitate utilization;
disposing of surplus property by means of sale, salvage, scrap, or “cannibalization;”
maintaining appropriate management systems for property control;
facilitating the best possible management of university property;
assisting department heads in establishing departmental systems for property and equipment management;
reviewing departmental requests for the loan of university property and equipment for official use;
evaluating and recommending loan requests for the use of university property and equipment by non-profit organizations; and
establishing policies and procedures to manage university property, in accordance with state requirements.
Department heads are responsible for the daily care, maintenance, and safeguarding of property and equipment. They are responsible for:
timely notifying the office of Materials Management and Logistics of transfers and deletions of property and equipment in their possession;
timely reporting stolen or damaged assets to the office of Materials Management and Logistics, the University Police Department (UPD), and, if the asset is a computer device, to the IT Security officer; and
authorizing the “off-site use” of certain property and equipment assigned to their department for official use by university employees.
Each university employee is responsible to use property only for state purposes and to exercise reasonable care for the safekeeping of property entrusted to them.
The vice president for Finance and Support Services (VPFSS) or the associate vice president for Financial Services (AVPFS) is responsible for approving the loan of university property and equipment to a non-profit entity.
The Office of Sponsored Programs (OSP) is responsible for approving the disposition of property and equipment that is assigned to sponsored programs.
PROPERTY AND EQUIPMENT MAINTENANCE PROCEDURES
Department Head Change - When a department head changes, the office of Materials Management and Logistics should provide an inventory listing of university property in their span of control and explain their new responsibilities. The new department head should conduct an inventory and report his or her findings to the office of Materials Management and Logistics. This will prevent the new department head from being held accountable and possibly liable for property not located during the E.V.E.
Stolen or Damaged Property - The department head must report stolen or damaged property first to UPD, then to the office of Materials Management and Logistics, immediately upon discovery. If the stolen or damaged property, regardless of ownership, includes digital media that might contain university sensitive data or confidential information, the department head will also notify IT Security of the incident.
The department head is expected to make every reasonable effort to learn about and document the circumstances behind the stolen or damaged property assigned to his or her account. The department head must submit a Stolen Property Notification Report to Materials Management and Logistics.
UPD, the department head, the director of Materials Management and Logistics, and the IT Security officer, if applicable, will review the circumstances surrounding the disappearance of the property. UPD is responsible for conducting a criminal investigation, as needed. If the department head or designee deems that there has been negligence on the part of a university employee or student, they will notify the VPFSS.
The IT Security officer is responsible for investigating and documenting the incident with respect to the loss or unauthorized disclosure of any sensitive or confidential university information. If applicable to the incident, the IT Security officer will ensure that the university’s information security breach response plan is followed, and that breach notification requirements are met. IT Security is responsible for notifying the Department of Information Resources (DIR) within 24 hours (see UPPS No. 04.01.07, Appropriate Use of Information Resources).
The director of Materials Management and Logistics, in collaboration, with the AVPFS and the VPFSS will evaluate the situation and notify the director of the Office of Audits and Analysis if a university employee has been or could be considered negligent for university property being damaged or stolen.
The director of the Office of Audits and Analysis will evaluate the situation and determine whether and when such situations warrant notification to The Texas State University System (TSUS) director of Internal Audits. State auditor notifications will be done by the TSUS director of Audits (or designee).
The director of Materials Management and Logistics is responsible for maintaining complete documentation of all such notifications to other departments and agencies.
PROCEDURES FOR OFF-SITE USE OF UNIVERSITY PROPERTY AND EQUIPMENT
Off-Site Use - Department heads shall maintain a log for each item of departmental property or equipment authorized for off-site use by university employees. At a minimum, the log shall include:
a description of the item (including the serial number and Texas State property tag number if available);
the name and Texas State ID number of the employee to whom the property was assigned or checked out;
the employee’s signature or initials and assignment date, captured at the time of equipment assignment or check-out;
the receiving employee’s signature or initials and return date, captured at the time of equipment return; and
the department head’s signature of approval for items that are not routinely assigned or checked out for off-site utilization.
Loan to Non-Profit Entities - In some circumstances, the university may loan property and equipment to non-profit entities for their use, provided that such use serves a public focus. The following procedures must be followed:
The organization must be a non-profit corporation or association as defined by federal law;
An authorized official of the non-profit entity must make written request to the director of Materials Management and Logistics, stating the reason the loan request is being made, the specific property or equipment being requested, and the period of time for which it is needed;
The director of Materials Management and Logistics will contact the department head responsible for the equipment and determine if they concur with loaning the equipment to the non-profit entity. The director of Materials Management and Logistics will forward the form to the VPFSS or the AVPFS for his or her approval;
Upon recommendation from the director of Materials Management and Logistics, either the VPFSS or the AVPFS must approve all requests for loans of university property to non-profit entities;
The director of Materials Management and Logistics will inform the non-profit entity whether the request was approved or disapproved; and
Requests for the non-university use of university vehicles are generally not approved except under an extreme emergency condition, such as a major natural disaster.
All requests for loans of university property should be made at least 10 work days in advance of the actual date needed to allow time for approval and arrangements. The Non-University Function Equipment Loan Request must be used for this purpose.
Loans of printed material and audio-visual software and hardware by the Alkek Library are exempt from this policy. Refer to the Library’s lending policy for visitors.
Loans of property and equipment associated with externally-sponsored programs may be exempt from this policy, provided that the provisions of the sponsored program require the loans. The funding source must provide written confirmation that the loan is required under the contract or grant.
PROCEDURES FOR PERSONAL USE OF UNIVERSITY PROPERTY
PROCEDURE FOR ELECTRONIC VERIFICATION OF EQUIPMENT
PROCEDURE FOR SURPLUS OR SALVAGE PROPERTY
PROPERTY TRANSFER PROCEDURES
Interdepartmental transfers of property can be accomplished through one of two methods, both of which require completing an Equipment Transfer Form.
Item given - One department gives an item to another department.
Item sale - One department sells an item to another department.
If a department wants to give its surplus equipment to another department, both department heads must sign an Equipment Transfer Form. The office of Materials Management and Logistics must approve the transfer. The original department head is accountable until this is done.
If a department has surplus equipment that is being sold to another department at an agreed-upon price, an Equipment Transfer Form must be completed and signed by department heads in both departments and submitted to the office of Materials Management and Logistics for approval. A notation of the “sales price” for the equipment must be noted on the form. Departments will submit an inter-department transfer (IDT) to the General Accounting Office to debit the “buying” department and to credit the “selling” department.
PROCEDURE FOR SPONSORED PROGRAMS
Texas Government Code Ann., Sec. 403.2715, regulates how institutions of higher education account for all property as defined by the state comptroller.
Texas Government Code, Chapter 2175 or 403.278, describe the sale or transfer of data processing equipment.
Texas Administrative Code, Title 1, Part 10, Chapter 202, subchapter C, Rule §202.78, specifies removal of data from data processing equipment.
Texas Government Code, Section 2054.130, describes the removal of data before disposal of equipment or transferring equipment to another entity.
The state comptroller’s requirements for external reporting agencies and institutions of higher education not reporting to SPA per the General Appropriations Act, Article IX, Section 12.04, 82nd Legislature, Regular Session and Senate Bill 5, 82nd Legislature, Regular Session (see Texas Comptroller of Public Accounts website).
Attorney General’s Opinion No. M-623, dated May 4, 1970. This opinion determined that personal property belonging to state universities could be loaned and exchanged when the purposes would in some way benefit the university and the state of Texas. The exchange of property may further the public purpose of promoting and disseminating education and culture.
On February 22, 1980, The TSUS Board of Regents, authorized the university to enter into reciprocal agreements providing for the temporary exchange or loan of university property with other non-profit entities, provided that such agreements reflect a valid state purpose.
REVIEWERS OF THIS UPPS
Reviewers of this UPPS include the following:
|Director, Materials Management and Logistics||September 1 E4Y|
This UPPS has been approved by the following individuals in their official capacities and represents Texas State policy and procedure from the date of this document until superseded.
Director, Materials Management and Logistics; senior reviewer of this UPPS
Associate Vice President for Financial Services
Vice President for Finance and Support Services