Office of the Vice President for
Administration and Finance
SECTION: GENERAL INDEX: H-3
SUBJECT: PROPERTY MAINTENANCE AND CONTROL RESPONSIBILITIES
Department and division administrators shall assign property control responsibilities to a Property Custodian. Each Property Custodian is specifically responsible for the management and control of University property within the department, ensuring that:
- fixed assets (by any means) is reported to the Property Manager;
- property is used for University purposes only;
- property is not loaned, traded, discarded, or moved without approval of the Property Manager;
- property is not defaced or damaged in any way;
- property is not returned to a vendor as a trade-in without approval of the Property Manager;
- obsolete and surplus property is turned in to the Property Manager for approved disposal;
- equipment is used for its intended purpose by properly trained personnel;
- property within the department is tagged as required and listed on the department's property inventory record;
- an annual physical inventory is conducted.
The State of Texas requires the Property Manager to maintain an inventory of University fixed assets. Items received through standard purchasing procedures (purchase vouchers and ITVs) are identified by the Property Manager through the use of purchasing records and vendor documentation available from Accounts Payable. Receiving reports should correctly identify the fixed asset, serial number and responsible person. Immediately upon receipt of any fixed asset gift the Property Custodian must notify the Property Manager of the following information where it applies:
- Complete description of the item;
- Manufacturers name;
- Manufacturers serial number and model number;
- Date of receipt;
- Value of the item;
- Building and room number where item will be located;
- Copies of correspondence documenting solicitation and acceptance of gifts, if applicable;
- Copy of Gift Transmittal Form available from the Development Office, if applicable; and
- Responsible person and unique identification number.
Capital and controlled assets purchased from any source of funds is identified with the standard University of Houston-Victoria property inventory tag which is a silver metal tag with its own number. Any acquired capitalized surplus property or fixed assets received as a gift also is marked with the standard University of Houston-Victoria property tag.
Although it does not enter the Property Manager's inventory, designated non-capital property will be identified as such for security purposes with a plastic tag.
Removal of any tag will be performed only with the approval of the Property Manager.
HOW AN ASSET IS TAGGED
When a department receives a fixed asset and the Property Manager receives all the appropriate documentation, the Property Manager sends personnel to tag the equipment with the appropriate tag. The Property Custodian should make the equipment available for tagging.
When a department acquired controlled non-capital property, e.g. a computer, the Property Custodian is responsible for contacting the Property Manager by phone or memo and requesting a supply of tags. The Property Custodian is responsible for affixing the property tags for non-capitalized property the department acquired.
RECONCILIATION OF INVENTORY BALANCES
General Ledger Records. The Property Manager shall reconcile the Inventory Listing to the Financial Records System on a monthly basis. All adjustments made should be well supported and documented. Adjustments to the General Ledger should be entered no later than thirty (30) days following the month end close.
State Property Accounting (SPA) Records. The Property Manager shall reconcile the University of Houston-Victoria's fixed asset report to the property accounting report produced from the SPA system. The SPA system is updated electronically by the University of Houston System no later than twenty (20) days following the end of the quarter. The batch of transactions only include changes made to the inventory file during the quarter. Any adjustments to SPA should be well documented.
The University is required by state statute to conduct an annual inventory of all capital and controlled assets on campus. (See Administrative Policies and Procedures Manual, Index H-4, Property Manager's Annual Inventory)
Departments are responsible for maintaining all property in their custody. This includes periodic inspections, calibrations, preventive maintenance and repairs as specified by the manufacturer and conventional maintenance practices.
University property may not be cannibalized without approval from the Property Manager. Requests for cannibalization will be approved upon demonstration that such action will best serve the University's interests. (See H-6, Disposal of Surplus Property Policy.)
FIXED ASSET TRANSFERS
When a department wishes to make interdepartmental fixed asset transfers, the Property Custodian must submit a completed Form PMG-1 (Attachment A) to the Property Manager. If personnel are required to move the item, a work order for movers is to be attached to the memo. The Property Manager will forward the work request to maintenance as required.
All property in excess of the needs of the department should be turned in to the Property Manager. That way, another department may use the existing property rather than having to make a new purchase. (See Index H-6, Disposal of Surplus Property Policy.)
REMOVING PROPERTY FROM CAMPUS
Any University property, once tagged, may be removed from campus only when necessary to conduct University business. Requests for Department or Division Head and the Property Manager approval must be made on Form PMG-2 (Attachment B) prior to the move. The Department or Division Head and the Property Manager will approve an off-campus location for property for a specific period of time. If the property is needed for a longer time, the employee may renew the approval, without physically returning the property, by re-submitting in writing. It is important to note that off-campus fixed asset must be reported on the annual inventory.
Any employee who has University property at an off-campus location is responsible for that property and should consider providing insurance coverage under his or her own personal property insurance. Should the property be lost, stolen, damaged or destroyed, the employee must reimburse the University, whether it be by an insurance check or personal funds.
The Property Custodian is responsible for reporting any property which is missing or believed to be stolen to the Property Manager on Form PMG-3 (Attachment C). The Property Manager is required to report capital and controlled asset losses to the State Auditor's Office. At the end of three years, the Property Manager may request that the fixed asset be deleted. Any missing property that is subsequently recovered should be reported immediately to the Property Manager. The Property Manager will report the recovery to the State Auditor's Office. Stolen property should be reported in accordance with the State Property Accounting Policy and Procedures Manual. Stolen property will also be reported to the Vice President for Administration and Finance who will then follow UH System Administrative Memorandum 01.C.04.
At any time, the UHS Internal Auditors or the State Auditor's Office may inspect the Property Manager's records and the physical location of equipment to verify their accuracy. The Property Custodian is responsible for the physical location of the equipment on campus.
Signature Obtained 04/15/2013
Phil Castille, Ph.D. Date
Next review date: April 2015
Origination: Facilities Services