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University of Houston - Victoria

Office of the Vice President for
Administration and Finance

SECTION: GENERAL INDEX: H-2
SUBJECT: PROPERTY MANAGEMENT

POLICY

As an agency of the State of Texas, the University will follow the procedures set forth in the State Accounting Policy and Procedures Manual (SPA) and applicable University of Houston System Administrative Memoranda.

The University is responsible for proper record maintenance and safekeeping of the state and federal property in its possession. The Property Manager shall fulfill this function for the University with the full support and cooperation of schools, divisions, and departments. A property custodian shall be appointed by each department to assist the Property Manager.

All property acquired or possessed by the University with a value of $5,000 or more is identified, tracked, and under property management guidelines and as University of Houston-Victoria property. All assets with a value of $5000 or more and controlled assets (as defined below) will be capitalized and inventoried annually.

GENERAL

The Property Manager is a person designated by the President to maintain the required records on all capital and controlled assets possessed by the University and to be the principal custodian of such property. The Director of Facilities has been designated by the President to serve in the capacity of the Property Manager. The State Comptroller must be notified immediately of the appointed property manager(s) through written documentation on forms prescribed by the State Comptroller.

The property custodian is the person within a department who is responsible for those property items assigned to that department.Duties of the property custodian are assigned to the appropriate level within the department by the department or division head. The property custodian has been delegated these responsibilities in accordance with State Property Accounting User’s Manual (SPAUM) guidelines.

The Schools/Divisions/Departments heads will be responsible for signing authorizations to transfer equipment to other departments, remove property from department inventory such as lost, stolen or surplus property, and appointing the Property custodian within the department.

PROPERTY CLASSIFICATIONS

Capital Assets –A capital asset is any property (such as equipment, furniture, artwork, etc.) costing at least $5,000 and having a useful life of at least one year. (two years if purchased with federal grant/contract funds). Generally, a capital asset must be self-contained for its primary use and have sufficient size to make its control feasible by means of marking with identification number and/or manufacturer's serial numbers. Items not meeting these criteria are classified as expendable, with the following exceptions: PeopleSoft Account Codes 58600-58611 are used to identify capital equipment.

  1. Component parts used to fabricate a larger fixed asset assembly must be added to the dollar value of the fixed asset, which will increase the capital amount of the fixed asset.
  2. Freight, transportation costs, and/or installation fees associated with the purchase of a fixed asset or components must be added to the dollar value of the fixed asset.
  3. Handguns and rifles are controlled items and must be coded as capital expenditures.
  4. Medical equipment Stereo systems, cameras, fax machines, and VCRs with a value over $500 must be coded as capital expenditures.

Individual departments may request items below $5,000to be added in the inventory.

Controlled assets - Controlled assets include assets that do not meet the capitalization threshold but must be secured and tracked due to the nature of the item. The State Comptroller, in consultation with the State Auditor's Office, shall review and modify, as necessary, controlled assets to be reported by agencies. The Property Manager is available to provide guidance when classifying controlled assets.

Expendable Supplies - Items that are not classified as fixed assetsand have a useful life of less than one year.

Fabrication –These are fixed asset items which are constructed or assembled from raw materials and/or component parts by the department. The total fabrication carries one unique identification number in the Property Management inventory system.

Federal Property - Items furnished to the university by the Federal Government or are acquired through a federal contract or grant. Title to this property remains with the government unless it is expressly vested with the University or until the University fulfills contractual terms which permit title transfer.

Non-Capital Equipment: Property – Non-consumable items which do not meet the dollar value specifications of fixed assets but does have a useful life of one year or more, are classified as non-capital property.

Surplus Property – Surplus property is any personal property which is in excess of the needs of any state agency and which is not required for its foreseeable need. Surplus property may be new or used but must have additional useful life. Surplus property disposal is regulated in accordance with the rules of Texas State Property Accounting (SPA) Government code 2175.304 and 2175.903, and University of Houston System Administrative policy 03.E.02.

University Property - Any property owned or controlled by the University including land and buildings, capital and controlled assets, expendable supplies and property equipment, non-capital equipment and federal property under the University's control is considered the property of the University.

Salvage Property – Property which through use, time or accident becomes depleted, worn out, damaged or obsolete and can no longer serve the purpose for which it was originally intended. Salvage property can be cannibalized or disposed of using the guidelines in the SPA manual. A special requirement for data processing equipment is set forth in Title 10, Chapter 2175.304 and 2175.903, of the Texas Government Code, detailing the options for property disposal to a qualifying school, school district, Texas Department of Criminal Justice, or approved trade-in. The State Property Accounting User’s Manual (SPAUM) guidelines should be followed when disposing of State property.

Personal Property – Fixed or movable tangible assets rendered into service for operations and benefits extend beyond one year from date of acquisition. The capitalization threshold for personal property is $5,000.00.

Property Custodian - The person within a department who is responsible for maintaining the location of those property items assigned to that department. Duties of the property custodian are assigned to the appropriate level of a department, e.g., dean, chair, director, or chief principal investigator. The property custodian has been delegated these responsibilities in accordance with SPAUM guidelines.

Property Clerk -The person within a department who, in addition to other responsibilities, is assigned the responsibilities to develop and maintain records and documentation of the purchase, disposal, and location of property items assigned to that department. Duties of property clerk are assigned by the property custodian.

Property Manager –The person designated by the agency head to maintain the required records on all property possessed by the agency and to be the principal custodian of such property, and to coordinate the annual inventory and submission of documentation of property accountability.

Approved:

Signature Obtained       04/15/2013
Phil Castille, Ph.D.         Date
President

Next review date: June, 2016
Origination: Facilities Services

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