Property Management

1. Property Management

2. Taking Inventory

4. Chelsie Jorgensen chelsiej@uidaho.edu (208) 885-6043

6. Purpose • Provide Property Management resources and training for Administrators, Unit Property Administrators, and UI Employees.

7. Objectives • Increase awareness on the importance of managing University property assets. • Improve the monitoring of assets. • Improve inventory records accuracy. • Provide training in the proper handling and tracking of University property assets. • Strengthen existing policies and procedures that have a direct affect on University asset management effectiveness.

8. Property management is an important function at the University of Idaho. Prudent business practices help protect the University’s multi-million dollar investment in equipment, meet government and sponsor requirements, and support indirect cost recovery at the University of Idaho.

9. Definitions: General: Stand-Alone property items that have a cost or estimated/appraised value (gifts & donations) of $2,000 or more and a useful life of one year or more. Cost: The initial price of the item or items (if constructed), including shipping and handling, applicable taxes, installation and ancillary costs (cords, cables, pipes, etc.) necessary for the item to function for the purpose for which it was acquired. Capital Outlay Expenditures: Purchase of an item with a unit cost of $300 or more and where the account used to purchase the item begins with E6. Repairs, betterments or improvements: (a) Extend the estimated useful life; (b) increased capacity; (c) substantial improvements in the quality of output; or (d) substantial reduction in operating cost.

10. Property Additions PMO will review all property purchases. PMO will assign asset property tags for all equipment added to Fixed Assets. UPA’s (Unit Property Administrators) and/or end users are responsible for affixing tags to the assigned equipment.

11. Property Additions UPA will review the property management inventory sheet(s) accompanying the asset tag, and promptly return to PMO with changes. UPA will notify PMO of items received other than CO (Gifts, Govt furnished property). Property purchases must be assigned correct account code (Capital Outlay Account Code begins with E6*** or E6***C).

12. Property Additions Trade-Ins: Trade- ins require special care. Purchase text must include the University Property tag number; Make; Model; Serial/VIN and credit for equipment being traded. Grant/Contract funded equipment requires prior OSP approval (see 10.40 C-7, iv).

13. ASSETTAGGINGMILL PROJECTS WORK ORDERS PURCHASES GIFTS DEPARTMENT REPORTS MONTHLY R REPORTS PROPERTY OF University of Idaho D190630 PROPERTY OF University of Idaho 190630 PROPERTY OF University of Idaho 490630 X 2345 IDAHO BANNER

14. TAGS: PMO provides a unique property number for all items included in the fixed assets inventory system. Red Tags identify Grant Funded equipment Yellow Tags for all other items. (excluding vehicles) The tag number for licensed vehicles begins with a “V”. The plate numbers assigned will show in Fixed Assets Inventory system.

15. Capital Outlay less than $2K (Blue Tags) • Provided for equipment such as computers, flat panel monitors, GPS’s, projectors, HD TV’s, etc. • Blue Tags will be provided upon request • ITS and Risk Management may also issue • Provided as a tool to assist unit tracking & Inland Marine insurance reporting. • Sample Excel spreadsheet is available on Asset Accounting web page or APM. • This equipment is not added to Banner Fixed Assets module.

18. Ownership. University owns all property purchased with University funds. University owns all property received as gifts. University owns all property purchased with funds from a grant or contract (except where provided by the terms of the grant or contract). No department, department unit, or University employee may hold proprietary interest in any piece of University property (including property purchased with grant or contract).

24. Annual Inventory Each department is responsible for complying and conducting. Electronic Reports began this Fiscal Year (2014).  Before August 31 – PMO will provide an annual inventory package via EMAIL Instructions, Inventory Listing and Certificate of Inventory are included in the package.

25. Annual Inventory Completed with discrepancies and changes along with signed “Certificate of Inventory” must be returned to PMO by the last week of October. Electronic is acceptable 

26. Good Practices Examples of good property management practices: Affix University property tags within 14 days of receipt. Promptly notify the PMO of all changes in location, user status, and condition. Transfer property designated for Facilities Surplus in a timely manner.

28. Unit Responsibility. Administrator of each department (Dept. head or equivalent) Responsible for safeguarding and maintaining property assigned under his or her control. Develop and implement appropriate operating procedures and internal controls. Insure a physical inventory of all property identified through the University property inventory system is conducted each fiscal year. Insure effective property administration.

29. Unit Responsibility. Administrator of each department (cont.) Designate a Unit Property Administrator (UPA) Ensure end-users and purchasers of property cooperate fully with the UPA. Change in Administrator The new administrator assumes responsibility for all property assigned. Promptly verifies the accuracy of the assigned inventory.

30. Unit Property Administrator (UPA). Designation: Interface with faculty, staff and students in their respective areas. Direct liaison between the department and PMO. Must be a University employee Have current knowledge and understanding of all facets of property management, including associated policies and procedures. Or ability to quickly learn the policies and procedures. Unit Responsibility:

31. Unit Property Administrator (UPA). Designation: (cont.) Additional UPA criteria recommendations are identified in the APM 10.40 Paragraph A-3. Departments must notify the PMO when a change in UPA occurs. The UPA is a direct contact between the Unit and the PMO. Unit Responsibility.

32. Security of Property University Employees All have an obligation to safeguard and make appropriate use of property owned or accountable to the University. This includes individual use or common area property. Exercise reasonable care in use to prevent damage and maintain good condition, accounting for wear and tear resulting from use. Unit Responsibility.

33. Security of Property University Employees (cont.) Exercise reasonable security measures to prevent theft or misuse. Notify the UPAand/orPMO of acquisition, movement or disposal of property in a timely manner. Report lost, stolen, damaged or otherwise impaired property to appropriate parties (supervisor, manager, UPA, PMO, etc). Unit Responsibility

34. Theft or misappropriation of University property and/or private property on University premises constitutes violation of Idaho law and Board of Regent’s policies.

35. Accurate and effective management will benefit individual departments and the University of Idaho as a whole. For assistance, departmental staff should contact their UPA. UPAs requiring assistance should contact the Property Management Office (PMO). Unit Responsibility.

36. University Property Usage May only be used in the performance of University functions. May not be rented or loaned to any person or group for private use without the recommendation of the Unit administrator and written authorization of the VP for Finance and Administration. Property purchased with funds from grants and contracts may have additional usage restrictions.

37. Storage Non-University Property University buildings or grounds may not be used for permanent or continuous storage of personal property that is not used for official purposes. Office decorations (such as artwork) is an exception. Property stored in University facilities is presumed to be University property.

38. Storage University Property Property no longer operable; obsolete; idle; beyond economical repair, etc… must be transferred to the Surplus Property Department (see APM 10.41). If storage is justifiable the UPA must notify the PMO to change user status to “Idle” and provide actual property location. The UPA is responsible for ensuring the method of storage is adequate to prevent theft, loss, damage, or destruction. (ex: art, parts, electronic equipment)

39. Disposal of Property University property may only be disposed of as outlined under Surplus Property Inventory procedures. COMPUTERS (Let’s Talk) !!!!!!!!! See APM 10.41

40. PMO will assist departmental units with their property management responsibilities. PMO will conduct physical verifications of inventories as a process of evaluating unit inventory effectiveness. Sampling techniques Statistical Stratified Judgmental Purposeful Other sampling methods. Verification of Inventory

41. Inventory Results and Reports PMO will post results of physical inventories to Banner Fixed Assets and report results to the appropriate personnel. PMO will analyze the results and determine if corrective actions with unit property management practices need to be initiated. PMO will assist the UPA to implement corrective actions. May conduct additional verifications to evaluate the effectiveness of proposed changes. Verification of Inventory

42. Report Distribution Unit Property Administrator (UPA) Dean or equivalent area Administrator. Capital Assets manager. University of Idaho Controller. Office of Sponsored Programs (where applicable). Risk Management, (where applicable). Verification of Inventory

43. Physical Verification Inventories are conducted to: Verify the accuracy of records in the Banner Fixed Asset Module. Verify the existence and activity status of property. Provide an overall assessment of the effectiveness of the University property management system. Measure the level of compliance with established policies and procedures.

44. Physical Verification Inventories (cont.) Data is also used in various other management reports including: Financial statements Internal Audit Requests Grant and Contract sponsor reports

45. Custody and Return of Property by Departing Employees. The UPA should periodically review inventory assets under the control of University employees. (at least annually). Each department should establish a procedure to prevent departing employees from removing University property. Procedure should include a “checkout” meeting with the UPA. Departing employees are required to return all University property in their possession on or off campus. (see 10.40 C-7, iv or asset web page link for exceptions on grant funded assets).

46. Off- campus use of property Examples: Employee residences Temporary work sites Property use must directly benefit University or the sponsored project for which acquired. Custodian responsibility remains the same regardless of location.

47. Off- campus use of property Frequent on-off campus transit Includes property normally located off campus Document on University Off-Campus Equipment Verification Worksheet (view link in APM or asset web page). Worksheet must be updated annually and maintained on file by the UPA. WILL be used to substantiate asset locations during physical and verification inventories. (including internal audit). Off campus more than 30 days require an off-campus location in the Banner Fixed Assets Module. (PMO can create new locations).

49. Movement of Property Communication is vital. Property records must reflect the correct location. Temporary moves (less than 30 days), the “Home” location can remain the same in Fixed Assets.

50. Movement of Property Sign-Out Log (view link on asset web page or APM): Recommended method for tracking assets. Can be posted on inside door of lab or maintained by UPA. Readily accessible to equipment custodians/users. Periodically checked by UPA to ensure proper usage (check-in/out equipment). WILL be used to substantiate equipment locations during verification inventories or internal audit.