Property Manual

Introduction

You, the departmental user, are accountable for the state property you hold. Asset Management, with its procedures and resources, is here to help you comply with CSU and state requirements. We've compiled this online manual as a guide.

When do you have responsibilities towards property? When:

  • Acquiring property
  • Using property
  • Disposing of property

Authority to establish and maintain a system of internal control to safeguard university property is delegated to campus presidents by CSU Executive Order 649. Campus policies are based on property accounting guidelines in the State Administrative Manual, as cited in the executive order.

Table of Contents

Introduction

  1. Acquiring Property
    1. Accounting for Purchases
    2. Accepting Gifts
    3. Tagging Property
  2. Using Property
    1. Protecting Property
    2. Relocating Property
    3. Inventorying Property
  3. Disposing of Property
    1. Surveying Surplus Property

Appendix: Revisions

A. Acquiring Property

Property enters the tracking cycle at the time of acquisition. It is your responsibility, as departmental user, to make sure this happens.

What must you do at the time of property acquisition? You must:

  • Use correct accounting, when purchasing property.
  • Involve University Advancement, when accepting gifts.
  • Ensure that Asset Management tags, when receiving property into the department.

Equipment expenditures are reconciled between the asset management and accounting systems on a monthly basis, via reports that Asset Management submits to the Accounting Office.


1. Accounting for Purchases

Accountability for property begins with proper classification in the university's accounting system. Please refer to a current list of values for the Account Chartfield, and observe the following distinctions when purchasing property for your department:

  • Purchases with a unit acquisition cost less than $500.00 fall outside the scope of property tracking. Use an appropriate supplies account between 660001 and 660821.
  • For purchases with a unit acquisition cost between $500.00 and $4,999.99, use an appropriate equipment expense account between 660822 and 660826, or the IT software account 616003.
  • For purchases with a unit acquisition cost of $5,000.00 or greater, use the general equipment expense account 619001, or an appropriate IT equipment expense account 616002 or 616A03.
  • For purchases that add value to a previously-purchased item valued at $5,000.00 or more (for instance, when purchasing additional memory for an existing computer), use the same capitalized asset account as the original purchase.

Instructional equipment is defined as equipment purchased for use in instructional departments. CSU budget allocations for instructional replacement equipment are based, in part, on existing equipment values, so property that is not correctly classified can have a negative impact on the campus allocation.


2. Accepting Gifts

All gifts accepted by the university must be approved by the President or appropriate delegate beforehand. Control over gift acceptance ensures that:

  • The gift has an appropriate and willing recipient.
  • The donor will be properly acknowledged.
  • The value of the gift will be recognized towards the university's system-mandated responsibility for external support.

When a gift is made available to your department, you must notify University Advancement. University Advancement will oversee the acceptance process, including the completion of a Gift Proposal form.

Questions regarding the acceptance of gifts should be directed to University Advancement.

Once a gift is accepted, University Advancement will notify Asset Management if applicable. Asset Management will proceed to tag the item according to the guidelines described under tagging in this manual.


3. Tagging Property

Property must be tagged if it:

  • Will be used for state business;
  • Has a cost of $500.00 or more, including the purchase price plus all costs to acquire, install, and prepare the item for its intended use;
  • Has an expected useful life of one year or longer; and
  • Is not furniture.

The tag marks an item as university property, and bears a unique identification number that tracks the item in the asset management database.

If an eligible item you acquire was received through campus Distribution Services, Asset Management will already have been notified of its arrival. You need not make any further notification. If the purchased item is received through other channels, however (for instance, from the Bookstore), you must notify both Shipping & Receiving and Asset Management, so that the order can be completed.

Gifts must be accepted through University Advancement, as described in the section on gifts in this manual.

Once notified, Asset Management will visit your department to tag the item. Asset Management will then enter the tagging information into the asset database.

If Asset Management has not tagged an eligible item within a week of its receipt, you should notify Asset Management.


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B. Using Property

You, the departmental user, are responsible for the safekeeping of property in the department's possession.

What must you do during the lifetime of property? You must:

You may request a departmental inventory report from Asset Management at any time to help you account.


1. Protecting Property

All employees must share the responsibility for equipment safety and security in the workplace. Please observe the following practices:

  • Prevent damage.

    Practice proper use and maintenance of equipment.

  • Secure against theft

    Consult Public Safety on practices for securing valuable items against theft. If you suspect an item has been stolen:

  • Use university property for university purposes only

    California Government Code prohibits the use of state property for personal purposes.

    Department heads may authorize off-campus use of property within their assigned programs for university business. In such cases, it is the department head's responsibility to account for the property through appropriate checkout procedures.

    The employee or student taking possession of inventoried property (tagged items) should provide a signed, dated Home Use Permit form to their department. A copy of the Home Use Permit shall be forwarded to Asset Management to be held as a record of asset location until the asset is returned.


2. Relocating Property

Asset Management tracks the location of all tagged property throughout its campus life. It is your responsibility as department user to keep Asset Management informed of all changes in property location. You must:

  • Provide a memo to Asset Management when:
    • Moving an asset permanently to a new location within a department.
    • Transferring an asset to another department.
  • Submit a Property Survey Request to Asset Management when:
    • Using an asset as a trade-in towards the purchase of new equipment.
    • Returning defective assets for replacement by the vendor.

    Be sure to notify Asset Management to tag the replacement item when received.

All other disposals of property should follow the guidelines for disposal presented in this manual.


3. Inventorying Property

Asset Management conducts a university-wide physical inventory once a year.

During inventory, Asset Management will visit your department to verify each item in the asset database and make any necessary corrections.

If any of the items listed in the database for your department are not found in the inventory, Asset Management will send you a report of the missing items. It is your responsibility to locate these items and advise Asset Management of their location.

You may also request that Asset Management conduct a physical inventory of your department outside of the regular annual cycle, in response to special circumstances or needs.


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C. Disposing of Property

State property must be accounted for at the end of its useful life by going through the prescribed process known as survey.

What must you do when your department decides it no longer needs a piece of tagged property? You must:

  • Notify Asset Management to survey.

The Property Survey Board, a standing campus administrative committee, reviews all survey requests and oversees local disposal policy in accordance with the requirements of the State Administrative Manual.

Surplus property surveyed from other departments may be available for your use; contact Asset Management for a complete list at any time.


1. Surveying Surplus Property

Initiate a disposal of property by completing a Property Survey Request form and a Distribution Services Moving form and submitting them to Asset Management.

Asset Management will review your request, verify the item's location, and remove the item from your inventory in the asset management database. Asset Management will then forward your moving request to Distribution Services for removal to the storage facility. It then becomes the responsibility of Asset Management to arrange for the final disposition of the item.

Surplus items with a residual value are first made available to any other campus department. Requests from campus units for surplus property will be given priority in the order received. If another campus department does acquire the item, Asset Management will record the transfer in the asset management database.

If no other campus unit is interested in the item, Asset Management will then attempt to dispose of it in the following order:

  • Transfer/sale to another California State University
  • Transfer/sale to another state agency
  • Transfer/sale to a tax-supported educational institution
  • Sale (via competitive bid or predetermined fair market price) to the general public, including university employees.

Surplus property that Asset Management cannot dispose of in any other manner will be "junked": discarded in a safe and legal manner, with due attention to environmental effects.


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Appendix: Revisions

The following table summarizes the revisions made to this manual, most recent first.

Date Reason Manual Section
Jun 11, 2007 Property Manual published in full in second online revision.  
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Humboldt State University HSU Financial Services: data, analysis, excellence