NUMBER: 360
SUBJECT: PROPERTY MANAGEMENT
AUTHORIZING BODY: PRESIDENT'S CABINET
RESPONSIBLE OFFICE: UNIVERSITY SERVICES
DATE ISSUED: MARCH, 1988
LAST UPDATE: MARCH, 2002
RATIONALE: The following Property Management Section relates to the acquisition, screening, identification, use, care, maintenance, special handling, inventory, transfer, disposition, storage, capitalization, and responsibilities of property and the Office of Property Management.
POLICY: OVERVIEW OF PROPERTY MANAGEMENT
The University operates a property control system that identifies all nonexpendable property. The Property Management Office is part of Police & Materials Management and is responsible for maintaining the records of all nonexpendable property (i.e. equipment) in the possession or custody of the University. Therefore, all nonexpendable property must be reported to the Property Management Office upon acquisition.
Federal Circular Number A-110, available on the website: www.omb.gov, prescribes uniform standards governing management of property awarded by grants or agreements by the Federal Government. Oakland University will observe these standards when applicable.
Nonexpendable property is any fixed asset that meets all of the following criteria:
Costs $2,500.00 or more per item, or is a component part of another piece of equipment;
Has a useful life of two years or more; and
Is not materially changed through use.
TITLE
Title to or ownership of all University property or material purchased with University funds is vested in Oakland University. No department, division, school, college or any other unit of the University owns any property. Such units may have property in their custody, but title rests either with the University or with the outside agency which has loaned the property to the University for specific purposes.
Title to property purchased with contract or grant funds is vested in accordance with the provisions of the specific contract, grant or agency policy.
RESPONSIBILITY
A. The University is responsible for all the material to which it holds title. Custodial responsibility for other material rests with the University to the extent that it has explicitly agreed to accept responsibility thereof.
The University's Property Management Office is responsible for maintaining all pertinent information about each item of nonexpendable property on hand, whether purchased with University, grant, or contract funds. It is the responsibility of the Property Manager to implement and administer procedures in all areas of the University having custodial responsibility for University and/or government property and provide maximum utilization of all material.
PURCHASE
Inventoriable property is acquired by purchase requisition and purchase order, and is recorded in the university’s computer system. SOP's can be used for equipment up to $1,000 (see note below on S080 account). This equipment will not be inventoried or covered by the university's insurance program. To acquire equipment, departments are to follow the University's regular purchasing procedure (see policy #1000). When purchasing equipment an account beginning with an "S" (S001, S002, etc.) must be used on the purchase requisition. If the equipment is a component part to a piece of equipment purchased previously, the account used on the original purchase requisition should be used for the component purchase e.g. S005 - computer purchase (original purchase), S005 - tape drive (component) for the computer. The S080 account is to be used for non-inventoriable equipment. (Equipment which costs less than $2,500, is not considered necessary to insure, or is not a component part to another piece to equipment).
GIFTS
Inventoried property acquired by gift is assigned a property number and recorded by the Property Management Office. The date the gift is accepted is considered as the date of acquisition. No gift should be recorded by Property Management until a copy of the Gift Memorandum is received from Gift Accounting Office (see policy 500).
Upon receipt of such a memorandum, the item will be identified by decal number; however, no amount or acquisition cost will be insured unless such an amount is identified on the memorandum.
Gifts of art and/or scientific collections are recorded on a multiple item or group basis by the Property Management Office. Gifts of bound volumes, pamphlets, documents and other collections are recorded by the Library and do not become a part of the Property Records.
FABRICATED EQUIPMENT
Inventoried property which has been fabricated by a department of the University is reported to the Property Management Office by the department having fabrication responsibility. The information should include a complete description of the item, the location, name and account number of the department that is to have custodial responsibility, and the value of the equipment. The value assigned to the property is the sum total of all of its component parts, both inventoried and non-inventoried, and all other supplies and materials, labor costs, freight and insurance as applicable.
If the fabricated equipment consists of components which have been purchased on Purchase Orders, the Property Management Office will retain copies of the purchase orders until a fabrication report is received. The report should include all of the above referenced information allowing for accurate capitalizing of the equipment upon completion.
SCREENING FOR GOVERNMENT PROPERTY
Oakland University is required by specific provisions within OMB A-110, and specific requirements of the Office of Naval Research to adopt an effective equipment management program to insure that costly research equipment is fully utilized and that unnecessary equipment purchases are avoided. Careful screening of material and property should take place prior to the purchase of equipment to insure that the equipment is needed and that the need cannot be satisfied with the equipment already in the possession of the University.
The requirements of this policy have an effect on University purchases of equipment as well as research activities of the University. It is to be understood that any shared use of equipment is to be conducted on a NONINTERFERENCE basis only, and that the Principal Investigators, Department Heads and/or Budgetary Heads reserve the right to insure that their units or projects are not adversely affected through the shared use of equipment.
For department or unit screening, inventory records for all equipment accountable or under the custody of a department or unit will be furnished annually by the Property Management Office.
Requisitions for federally funded capital equipment will be screened prior to issuance of a purchase order in order to avoid duplication and unnecessary capital equipment purchases. The guidelines and responsibilities for completing the screening requirements are listed as follows:
Screening for property value of $2,500 to $9,999 will be carried out by the department or unit and will be restricted to screening of like equipment under the custody of that department or unit. The Property Management Office is available to assist in this category of equipment.
Screening for property with a unit value of $10,000 or more will be carried out by a joint effort of the department or unit and the Property Management Office. This screening will encompass the total pool of like property under the custody of the University.
RECEIPT OF PROPERTY
When receipt is made through the University Shipping/Receiving Department, the Shipping/Receiving Department determines that the number of packages corresponds to the freight bill, bill of lading or purchase order, and that there is no visible damage. The buying department, upon receipt of the property, makes a thorough inspection of the property to determine that it is as ordered and that there is no concealed damage. If the shipment is complete and in good order, the receiving documentation is signed. The document constitutes a delivery report. If the shipment is not in order, discrepancies incident to the shipment are noted and the Shipping/Receiving Department and the Purchasing Department are notified. In the case of Government Property, the Property Management Office should be promptly notified.
When the quantity or description of property received differs from the quantity or description noted as shipped on the shipping document, only that quantity and nature of property actually received is recorded on the official receiving and property records.
IDENTIFICATION OF UNIVERSITY INVENTORIED PROPERTY
Property which is to be included in the University inventory must satisfy the definition of equipment and requirements for capitalization. The Property Manager will make the determination as to whether or not these requirements are satisfied.
All inventoried property is identified, marked with a property number and recorded promptly upon receipt. It shall remain so identified as long as it is in the custody, possession or control of the University. Such markings and identification are removed or obliterated from the property recorded only when sold, scrapped, or otherwise disposed of.
The application of the property number to the material or equipment is the responsibility of the Property Management Office; however, this function may be delegated to the custodial department when deemed necessary by the Property Management Office and agreed upon by the department. The custodial department must make the property number(s) available to the Property Management Office within thirty (30) days. If the information is not made available within 30 days, the additional costs incurred by the Property Management Office relating to the assignment and procurement of the property numbers will be passed on to the custodial department.
The property number is applied to the actual unit unless its size or nature makes it impractical. The property number should be affixed to the equipment adjacent to the manufacturer's name plate or in a position for easy identification. An identification number is never to be affixed to an item in such a manner as to deface the item or to appear obtrusive to the decor of an office or artistic display.
Identification is normally effected by affixing a decal or other legible, permanent, conspicuous and tamperproof method. If additional identification is considered necessary, it should be applied in a manner that will avoid confusion with the property number.
Should the identification number accidentally or mistakenly be obliterated, defaced or removed, the property shall be marked again with a new number. Caution shall be taken by the custodial departments and the Property Management Office to insure that the old number has been removed from the system.
Should an item of property be too small to effectively be tagged with a University decal, the item will be identified as normal, but the decal number will be assigned for capitalization purposes only. The property records shall be noted with the words "can't tag."
IDENTIFICATION OF GOVERNMENT INVENTORIED PROPERTY
Each controlling department is responsible for identifying, marking, and recording Government Inventoried Property promptly upon receipt. For the purposes of identification, the Property Manager may furnish decals, plates or tags for attachment to the property. Other means of marking are applied with the approval of the Property Manager. The property remains so identified as long as it remains in the custody, possession or control of the University. Unless already marked, all Government-owned property will be marked with the designation of the Government agency responsible for control functions and funding, and a Government identification number, unless the size or nature of the property makes it impractical or the property is an accessory or auxiliary and attached to or otherwise made a part of an item of equipment and is required for normal operations. In all latter cases, such items are entered and described on the department records of the original property to which it is attached or of which it is otherwise a part. In case of items included within a standard registration system, e.g., automotive, construction, or material handling equipment, application for the proper registration number is made to the appropriate Federal Government Agency, which number may be used in lieu of any other identification number.
IDENTIFICATION OF GOVERNMENT PROPERTY OTHER THAN
GOVERNMENT INVENTORIED PROPERTYIdentification, marking and recording of Government Property, other than that designated as Government Inventoried Property is the responsibility of the custodial department, the Principal Investigator and the Property manager. Questions regarding the applicability of this policy should be addressed to the Property Manager.
EQUIPMENT USE, CARE, AND MAINTENANCE
Departments are responsible for the care, maintenance, and use of all equipment in their custody. For equipment acquired under grants and contracts, the Principal Investigator shares this responsibility with the department.
Care and maintenance includes periodic inspection, regularly scheduled lubrication, protection from exposure, and proper cleaning prior to storage. The goal is to maintain the efficiency and usefulness of the equipment for as long as possible. Records should be kept of maintenance and deficiencies revealed during periodic inspection. (Principle Investigators should be aware of any specific equipment care and maintenance requirements by grants or contracts.)
INCREASED USE THROUGH SHARING
Scientific equipment with a cost over $5,000 should be made available for sharing if it is not fully utilized by the department responsible for the equipment. When reported to the Property Management Office, the equipment will be added to a listing of Scientific Equipment Available for Shared Use.
Scientific Equipment Available for Shared Use
To avoid unnecessary expenditures for scientific equipment costing over $5,000, a listing of Scientific Equipment Available for Shared Use is to deans and department chairpersons upon request. This list should be checked before submitting a Request to Purchase such equipment. Arrangements for sharing should be made through the Property Management Office.
Guidelines for Shared Usage:
EQUIPMENT ACQUIRED UNDER GRANTS AND CONTRACTS
Property acquired with contract or grant funds, but title to which vests immediately with the University, shall also be identified with the contract or grant number until completion of the contract or grant. Identifying these items as contract or grant property is the responsibility of the contract or grant office. These items are commingled with all other university property within the Property Management inventory system.
During the period of a grant or contract, the Principal Investigator determines the utilization of equipment acquired. After the grant or contract expires, the department chairperson may suggest a use which will be beneficial to the overall departmental program or the dean may recommend University priorities for the equipment. Federal agencies retain the authority to define the use and transfer status of agency-owned equipment.
Federally funded grants and contracts holdings shall be inventoried at least once a year by the custodial department. A bi-annual audit will be conducted by the Property Management Office. The custodial office shall affix a government ID number to nonexpendable property to which title is held by the government. This government ID number is on a separate decal next to the decal bearing the University ID number.
Property management will assist the Research and Academic Development Offices in reviewing requests to transfer equipment purchased under a grant or contract. This review is used to determine whether the University holds title to the equipment, and whether any stipulations of the grant or contract would prohibit a transfer.
An Inventory Release Form, available through University Services (Printing and Reprographic Services) is used to initiate transfers and disposals. The signature of the responsible Principal Investigator and Grant/Contract Administrator is required.
Where equipment title has remained with a federal agency the Grant/Contract Administrator must request disposal instructions from the appropriate federal agency. The disposal instructions will either relieve the University of further accountability; request that equipment be returned to the agency; or request that it be sold and that the proceeds be returned to the original agency less $100 or 10% of the proceeds, whichever is greater, for selling and handling expenses. The Property Management Office will expedite disposal actions upon receipt of these instructions.
Reports on equipment acquired through Grants or Contracts is the responsibility of the Grant/Contract administrator.
PROPERTY RENTED OR LEASED
Property acquired by rent, lease with option to purchase, or other types of installment purchases, is recorded at the total cost and assigned a property number. The property number will not be affixed to the item until purchase is made by the University, however, the assigned property number will serve to identify the equipment throughout the utilization period or until purchase.
PERSONALLY OWNED PROPERTY
If a University employee keeps personally owned property on campus, it should be reported to the Property Management Office and identified as the property of the individual. The University is not responsible for the loss of or damage to said property.
LOAN PROPERTY
If property is loaned to another department for a period of six months or more, it should be reported to the Property Management Office on an Inventory Release Form (See Appendix A), giving the name of the borrowing department, the property number (decal), and the new location of the property. Signatures of both department heads are required for approval of the transaction.
Loan of property to faculty, staff or students for off-campus use in a University program must have prior written approval from the department head or dean.
A memorandum can be sent to the dean or department head which:
I
f approved, he/she must endorse the memorandum and forward a copy to the Property Management Office and the custodial department. During the period of the loan to any of the above mentioned, the stated property becomes the liability of the individual having custody.When the loan is terminated, the Property Manager must be informed by the lending department, and accountability returned to the custodial department.
Any loan of property to an external organization must have the prior approval of the head of the custodial department and the Property Manager. The Inventory Release Form will be used for approval. When the property is returned, the Property Management Office should be notified by the lending department and accountability returned.
The loan of property by non-governmental organizations for demonstration or approval purposes is not recorded by the Property Management Office. Long-term loans of property for research purposes will be identified by the sponsor's ID number.
UNIVERSITY PROPERTY INVENTORIES AND AUDITS
A physical inventory of all capital equipment will be taken and the results reconciled with the property records every other year. Any difference between quantities determined by the physical inspection and those shown in the property records must be investigated to determine the cause of the difference. Verification of the existence of the equipment is required. The department having custody of the capital equipment will have the primary responsibility for this inventory, although the Property Management Department will make itself available to assist in the carrying out of this function.The Property Management Office will establish a time schedule of all departments for physical inventories. The department should be as specific as possible regarding the disposition information such as, sold, traded, discarded stolen, etc. Any equipment not listed on the worksheet should be added to the list. Each department will receive a thirty day notice of the up coming inventory. Upon receipt of worksheet(s), the department will have thirty days to complete the inventory and return it with the signature of the department head, departmental chairman or manager to the Property Management Office.
It should be noted that, although primary responsibility for the inventory rests with the department, responsibility for monitoring the successful completion of inventories and maintaining the accuracy of the university property records rests with the Property Management Office.
EQUIPMENT TRANSFERS AND DISPOSITIONS OF UNIVERSITY PROPERTY
The Inventory Release Form (see Appendix), available through University Services, (Printing and Reprographic Services), is used to initiate transfer and disposal procedures of any kind. For University-owned equipment, the form must be signed by the department chairperson or a designated representative. Disposal of equipment refers to the following:
Items which are expected to be in demand by University departments are kept in the University's surplus property storage area. Property Management will maintain an up-to-date listing of surplus equipment, which will be available to University departments. Departments in need of equipment should contact Property Management and have their requests placed on the "want list". If the desired equipment is available, a work order must then be filled out, and submitted to the Work Control Center of Campus Facilities and Operations department (CF&O). CF&O charges for the delivery based on the length of time it takes to pick-up and deliver the equipment to the requesting department.
Equipment may be transferred to another department, offered for public sale, donated to a non-profit organization, or junked. To dispose of surplus equipment, material, or supplies, complete an Inventory Release Form (see appendix) listing all items, whether inventoried equipment or not. Send the original of the Release Form to the Property Management Office. The Property Management Office will pick-up small items such as typewriters, or calculators and will delete equipment items from the University Inventory. Larger items such as chairs, desks, files, computers etc. or larger quantities, will be removed by submitting a work order to the Work Control Center. Property shall not be moved from any office without the express consent of the Office of Property Control.
Storage of Property
The Property Management department has storage available for property that is expected to be in demand by university departments or the university community.
Criteria: To determine if an item or items qualify for storage in the Property Management facility, the following criteria must be true. The items are available for:
The director of Property Management, or his/her designee, reserves the right to determine if a department has complied with all the requirements of the storage facility. If the criteria have not been met, storage area will be refused or, in the case of current occupancy, the department will be asked to remove their articles at their expense. Following are the general policies:
Donations and Sales of Equipment
Equipment which has little or no value may be donated to a non-profit agency or organization. The Property Management Office must be notified by an Inventory Release Form and a letter of acceptance must be received by the agency or organization receiving the property.
If the equipment retains substantial value and the department wishes to have Property Management sell the equipment, the disposing department must submit an Inventory Release Form. The disposing department may state a "minimum amount acceptable" for resale. A memo stating the minimum acceptable amount and an account to credit any proceeds must accompany the Inventory Release Form. The Property Management Office will then advertise the property's availability at regular intervals, first to the University and then to the public. The Property Management Office will also handle the monetary aspects of the transaction. All proceeds from items sold for $1,000 or greater, less $100 or a 10% handling fee, whichever is greater, will be transferred to the requesting department.
Michigan sales tax must be collected on sales to individuals and to organizations not holding a certificate of (tax) exemption.
Transfer Between Departments
Departmental transfers of equipment may be accomplished by completion of an Inventory Release Form by the department which currently lists the item on its inventory. The department accepting the equipment must also sign the release form and note the new location of the equipment on the form as well. The original of the release form is to be sent to the Property Management Office.
Lost, Destroyed, or Dismantled Equipment
To delete such an item from the University's inventory, complete an Inventory Release Form and send it to the Property Management Office.
Theft or Mysterious Disappearance of Equipment
These situations should be reported immediately to Oakland University Police and an Inventory Release Form completed with the original sent to the Property Management Office.
Key control is an important factor in helping to prevent theft of equipment from campus. Department heads should make sure keys are not transferred or passed from one individual to another see Policy #350 - Key Policy for further information. Key holders must report lost or stolen keys to their department head and the Oakland University Police. The Oakland University Police will send a copy of the report to Property Management. Property Management has the authority to call for a special audit when circumstances dictate.
Traded-In Equipment
With the approval of the Purchasing Department, equipment may be traded-in against another purchase. The purchase requisition for the new equipment must indicate the Oakland University tag number, description, and manufacturer's serial number for all items being traded. In addition, the requisitioning department must complete an Inventory Release Form and submit it to Property Management.
RECORDING OF VALUE OF UNIVERSITY PROPERTY
The Property Management Office is responsible for recording the value of all property obtained or acquired through any fund source. In recording property value, the following: are included: freight charges, custom duty charges, assembly costs, insurance costs for shipments and trade in value. The following items are excluded or subtracted from the value of the property: handling charges, storage charges and maintenance or warranty contract costs. Cash discounts are deducted from the value of property but discounts for timely payment of invoices are not.
PERSONAL USE OF PROPERTY
Use of University material or property in the care and custody of the University, by University employees for personal purposes is not allowed except with the written approval of one of the following: custodial department heads, vice presidents, deans, Principal Investigators or specific contract authorization (in the case of Government Property).
It is to be explicitly understood that the University insurance policy does not provide for coverage for University Property or Government Property once it has physically left the premises of the University unless otherwise specified in the University Policies and Procedures. The liability for said property rests with the individual or individuals responsible for the property.
PHYSICAL SECURITY
Physical security of property is the responsibility of the respective department heads. In order to prevent theft of equipment, high security locks are available through Campus Facilities and Operations. The cost associated with the locks will be charged to the requesting departments. (See Policy #350 in the Policies and Procedures Manual)
Maintenance, repair, calibration, or any other costs related to equipment are the direct responsibility of the custodial department.
Property Management will periodically or upon request send Inventory Equipment Reports to departments. The reports are available in a variety of sorted configurations.
A disposal report is created monthly. It is available in a variety of sort configurations. At fiscal year-end this report is submitted to the Controller.
APPENDIX
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