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Section 14: Property and Equipment Management and Control

Administration and Management of Capital Assets & Controlled Property

Effective Date:

04/21/10

Approved By:

Lenora Chapman, Associate Vice President, Financial Affairs

Last Revised On:

05/01/2014

For Assistance Contact:

Inventory Manager (210)458-4844

UTSA's Designated Property Manager
(210)458-4224

PURPOSE/SCOPE

This guideline provides information about safeguarding, maintaining and disposing of UTSA property.

For information regarding current laws, regulations and procedures for proper accounting, safeguarding and disposal of UTSA property, see FMOG – Capital Asset Property Accounting.

AUTHORITY


UNIVERSITY GUIDELINES

Table of Contents

A. Moving Furniture, Furnishings and Equipment

1. Transfer From One Department/Division to Another

An Inventory Transaction Form is required for all transfers within UTSA and requires authorized signatures from both the transferring and receiving departments. The signatures of both the transferring and receiving department/division heads must be obtained.

An Inventory Transaction Form is used when ownership of property is being assigned to a new department/division. This does not pertain when equipment is temporarily loaned out to another department, as original ownership is not changed.

The Inventory Transaction Form must be completed with the department ID (Dept ID), tag number, item description, previous location, and anticipated new location. The signatures of both the transferring and receiving department/division heads must be obtained. The form is submitted to the Inventory Department for verification of ownership prior to the transfer. This applies to all equipment regardless of funding source.

2. Transfer To Another Department with Charge

If a UTSA department desires to transfer equipment to another department contingent on receiving payment for the item(s), a sale may be negotiated by the two departments. If another department agrees to purchase an item, an Inter-departmental Transfer voucher (IDT) is used to denote the transfer of funds. It is essential that the inventory number be annotated on the IDT. The inventory book value of the item remains at the amount originally assigned for the item, regardless of the transaction amount reflected on the IDT. The selling department must still prepare an Inventory Transaction Form or do an electronic transfer of the property in UTSA’s financial accounting system.

3. Transfers To Another State Agency

Property is sometimes transferred to other state agencies from UTSA. A UTSA State Property Transfer Form is used to document these transfers. This form is completed by the UTSA department that is transferring the equipment to another state agency, signed by the department head, the Dean or appropriate VP, the Office of Post Award Administration (OPAA) (if grant specific), and then forwarded to the UTSA Property Manager for approval and signature. The form will contain the transferring and receiving agency’s contact information, assigned state agency number, requestor’s information, justification (to include a statement reflecting the reason the asset is being transferred as opposed to being surplused), the required approval signatures and a list of all the inventory numbers, a description of each item, serial number, date purchased, purchase order number (if applicable) and price (the present inventory carrying value), grant number (if applicable), account number used to purchase the item(s) and a current location. The inventory value is reflected on UTSA's property records maintained in the financial accounting system.

Upon final approval from the UTSA Property Manager, the form (and all supporting documentation) will be forwarded to the Inventory Manager for coordination, processing and input into the State Property Accounting system and other applicable inventory systems/databases. The Inventory Manager will coordinate with the receiving State Agency for acceptance by their Property Manager and, upon final completion, will send a signed copy of the UTSA State Property Transfer Receipt Form back to the transferor for record keeping. Outgoing state transfers to other state agencies will be processed within 10 business days, provided all supporting documentation and signatures are complete.

4. Transfers From Another State Agency

Property is sometimes transferred to UTSA from other state agencies. An Inventory Transaction Form is normally used to document these transfers. When the transferring agency does not have a standard form, they can use a copy of the UTSA State Property Transfer Receipt form to initiate the transfer. This form must be signed by the authorized departmental official and the transferring Property Manager of the State agency and forwarded to the UTSA Property Manager for approval/signature. It must contain that agency's inventory number, justification, UTSA departmental contact information, a description of each item, serial number, date purchased, and the present inventory carrying value. This inventory value will be reflected on the UTSA property records.

Upon receipt of the Inventory Transaction Form, the Inventory Department will physically verify the asset, assign a UTSA barcode, route the form to the UTSA Property Manager for “Acceptance AS IS”, and then accept the item in the State Property Accounting (SPA) system. Upon receipt of all required signatures, the Inventory Manager will return signed copies of the Inventory Transaction form to the transferring agency for adjusting the property records of that agency and to the gaining UTSA Department for their files. Incoming state transfers will be processed within 10 business days, provided all supporting documentation and signatures are complete.

5. Transfer From/To Non-State Agency/Private Organization

Property is sometimes transferred to or from non-State agencies. An Inventory Transaction Form (or equivalent) and/or memorandum is normally used to document these transfers. This form is signed by the respective Property Manager of the agency transferring or gaining the item(s) and is forwarded to the UTSA Property Manager for acceptance/approval and signature. It will contain the agency's full name and address, contact information, inventory number, a description of each item, and the present inventory carrying value to be reflected on the UTSA property records.

The Inventory Department will validate the inventory number to the property item. Upon receipt of all required documentation and signatures, the Inventory Manager will coordinate property acceptance with the gaining agency’s Property Manager and forward final copies of all signed documentation to the respective agency for future record keeping. Transfers to non-state agencies will be processed upon completion of all required coordination.

6. Trade-in of Equipment

UTSA equipment may be traded in for credit toward the purchase of new equipment. A description of the item being traded in, including the inventory number and the trade-in allowance, should be noted on the purchase order, as well as on any other document pertaining to the purchase of the new item. This is necessary to ensure the item being traded in is properly accounted for and clearly identified for removal from the department's inventory records. Before the trade-in item is relinquished, the inventory number tag must be removed and affixed to the Equipment Trade-In Form and sent to the Inventory Department.

If the item traded in is on the department's equipment listing at the time of the next annual inventory, the Inventory Department should be advised by the department. A copy of the purchase order for the new item should be sent to the Inventory Department to confirm the trade-in. If there is no purchase order, a memorandum from the Department Head documenting the trade-in will suffice to have the item removed from the departmental inventory.

7. Surplus/Salvage Procedures

State law requires institutions of higher education to give preference to transferring surplus instructional materials or equipment to a public school or school district before disposing of the property in any other manner. Anything that can be used for instructional purposes is included in this legislation such as computers, chairs, tables, bookcases, desks, file cabinets, laboratory equipment, musical instruments, etc.

If more than one public school or school district seeks to acquire the same property on substantially the same terms, UTSA will give preference to a public school that is considered low-performing by the commissioner of education or to a school district that has a taxable wealth per student that entitles the district to an allotment of state funds under Subchapter F, Chapter 42, Education Code. Current accountability ratings can be found at the Texas Education Agency website.

Any computers/peripherals not sent to schools as outlined above must be transferred to the Texas Department of Criminal Justice. UTSA may not collect a fee for any surplus/salvage data processing equipment disposed of in this manner.

Inventory purchased with federal funds cannot be declared as surplus until clearance of ownership is acquired by the department from the Office of Sponsored Programs (OSP). This documentation is required to accompany any transfer to the Surplus Property department.

When a department determines that capitalized/controlled items held as part of their inventory are obsolete, unused, broken, or if the department wishes to cannibalize equipment, these procedures are followed:

  • Equipment is declared as Surplus: To have property picked up from a department and deleted from a department's inventory list, a Surplus Property Turn-In Form must be completed and submitted to the Surplus department via campus mail. The Surplus Property department will then make arrangements to pick up the surplus items.

  • Equipment will be cannibalized for parts: There are times when it is practical or economically feasible to remove parts from an item of equipment which is obsolete, broken, or is intended to be discarded. This practice is commonly called 'cannibalization'. Normally it should be avoided. However, if the best interests of UTSA can be served by the removal of parts from an item before transferring it to Surplus Property for disposal, the department head shall recommend that cannibalization be permitted.

    The department will complete and sign the Equipment Cannibalization Request Form and forward to the Inventory Manager for approval. This shall include a statement that the item is obsolete, or is inoperable and not economically feasible to repair, and that the parts to be taken from it will be used to repair or construct other UTSA equipment.

    When the Inventory Manager approves the request, cannibalization may begin. After removal of approved parts, the Surplus Property Turn-In Form must be completed and submitted to the Surplus Department via campus mail so the Surplus Property department may pick up the remaining pieces of cannibalized equipment. Surplus Property will require a copy of the completed Equipment Cannibalization Request form before processing but the ORIGINAL cannibalization form must accompany the equipment to Surplus. Surplus Property staff will remove the items from the departmental inventory and will send the original cannibalization form to Inventory for filing.
8. Transfer from Surplus

Surplus furniture and equipment items are available, without cost, for use by UTSA departments in need of such property. A request may be made on the Surplus Property department's website and items may then be reviewed at the warehouse by advance appointment only to assure staff availability. To transfer accountability of the property, Surplus Property will initiate the Inventory Transaction form. After the form is signed in the department indicating acceptance, it will be sent to the Inventory Department so the items can be assigned to the department's inventory.

9. Sale of Equipment

When it is determined that the equipment is not needed for any UTSA department, the property shall be sold, salvaged, or scrapped/thrown away, as determined by the Surplus Property Supervisor.

Equipment may only be sold to non-UTSA organizations or individuals by auction (internet or public) conducted by the Surplus Department. All sales proceeds are retained by UTSA to support operations. For items that may have a substantive value, a sharing of net sales proceeds by the transferring department must be requested and approved in advance. Approval will be granted on a case-by-case basis as determined by the Vice President for Business Affairs or designee.

To be eligible for consideration for the sharing of auction proceeds, the property must have originally been purchased with auxiliary or fee revenue and the anticipated funds from the sale of each single piece of equipment submitted must exceed $10,000. To obtain approval, a memorandum should be sent to the UTSA Property Manager with a brief explanation of the reason for the sale and should provide the description of the item, inventory number, the manner in which it was acquired, acquisition cost (if purchased), year acquired, condition, and price expected. If the item was acquired under a grant, the memorandum should assure the UTSA Property Manager that there is no further obligation to the sponsor. In all such circumstances, a ten (10) percent minimum charge will be retained to cover administrative costs.

10. Transfer From One Campus Location to Another

An Inventory Transaction Form must be submitted to the Inventory Department with signatures from the receiving department and the transferring department.

11. Movement Within an Allocated Departmental Area

Within an area assigned to a departmental account, furniture, furnishings and equipment may be moved at the discretion of the department/administrative head. The department property manager must ensure that adequate internal controls exist at the department level to monitor this activity. Such movement should be minimized and, in any case, must be reported to the Inventory Department with locations updated in the inventory records. The locations should be updated so the department will be fully compliant during periodic audits conducted by various auditors.

B. Stolen UTSA Property

UTSA property that is stolen remains on a department's inventory until approval for deletion is obtained from the UTSA Property Manager. When a departmental employee becomes aware that an item of equipment is missing, a thorough search must begin immediately and must continue until the item is found or determined to be stolen or missing.

If property is believed to be stolen, the UTSA Police Department and the Inventory Department should be notified immediately. If stolen on campus, the department should obtain a copy of the Offense/Incident Report or other documentation from the police and send it along with a Stolen/Recovered Property Report form to the Inventory department.

If equipment is stolen off campus, the theft must be reported to an outside law enforcement agency. All off-campus thefts should also be reported to the UTSA Police Department. The UTSA Police Department will log the theft into their Dispatch Log and create a Dispatch Entry. A copy of the Dispatch Entry along with a copy of the outside agency's Offense/Incident report or other documentation must accompany the Stolen/Recovered Property Report form to the Inventory Department.

In all cases of theft, the department/division head must make a recommendation on the Stolen/Recovered Property Report as to whether the loss was due to negligence on the part of an employee.

All completed Stolen/Recovered Property Report forms are sent to the Inventory Department for recording, and are forwarded by the Inventory Staff to the UTSA Property Manager for processing and a final determination as to “negligence” or “non-negligence.” Pursuant to Texas Government Code Ann. Sec. 403.276, if negligence is found, UTSA may require reimbursement from the employee for the loss. The Attorney General may also, in turn, investigate any property loss and if the investigation discloses that theft was sustained through negligence, the Attorney General may require reimbursement from the employee to the State for the property loss if UTSA has not already done so.

It is essential that the information included on the Stolen/Recovered Property Report form be accurate and contains sufficient detail to preclude questions from the auditor and ensure approval.

C. Missing UTSA Property

UTSA property is considered missing when property cannot be located, and there is no sign of forced entry.

Property that is missing does not have to be reported to the UTSA Police Department. The department/division must conduct a thorough search for the property. If the missing property is not located, a Missing Property/Reinstatement Form should be submitted to the Inventory Department for processing. On the Missing Property/Reinstatement form, the department/division head must make a recommendation as to whether the loss was due to negligence on the part of an employee. All forms with a recommendation of "negligence" and “unable to determine” are sent to the UTSA Property Manager for processing and a final determination as to "negligence" or "non-negligence." Pursuant to Texas Government Code Ann. Sec. 403.276, if negligence is found, UTSA may require reimbursement from the employee for the loss. The Texas Attorney General may also, in turn, investigate any property loss and if the investigation discloses that the loss was sustained through negligence, the Texas Attorney General may require reimbursement from the employee to the State for the property loss if UTSA has not already done so.

All missing property ruled as non-negligent is carried on the departments/division's inventory for two calendar years after the initial report. This time delay is required because missing property is often found or located by another department during the annual inventory.

Missing property is reported to the State Comptroller's Office. If a State organization's annual inventory has more than 1 percent missing from their inventory, the State Comptroller can withhold funds from the budgets of the organization.

D. Damages to UTSA Property

In the event that a student damages UTSA property, the student will be reported to the Department head and to the Vice President for Student Affairs. The Department Head will submit a non-routine Work Request to the Physical Plant for repair of the damage, and the repair will be billed to the responsible student. A student's failure to pay will be referred to the Vice President for Student Affairs.

NOTE: If a student is also an employee and the damage occurs in that capacity, paragraph 2 below, applies.

When State or UTSA property has been destroyed or damaged through the negligence of an employee, the Department head responsible for that property shall immediately report such loss or damage to the University Police and to the Inventory Department.

  1. The UTSA Property Manager will in turn forward a report to the Vice President for Business Affairs. If warranted, the Vice President will direct an investigation to determine the cause of loss or damage.

  2. If it is determined that an employee was at fault, the report will be forwarded to the State Attorney General’s office, which will in turn make a written demand upon the employee for reimbursement of the full amount of the loss sustained.

Whenever damage to UTSA property is discovered for which an individual student or employee can be held responsible, the responsible person may be required to reimburse UTSA for the damage. It is the responsibility of the department head and individual faculty or staff members to report such damage as soon as it is discovered, so that it can be repaired or replaced.

E. Removing Equipment from UTSA Premises

UTSA-owned property may be removed from the campus and other UTSA facilities to be used in conducting official UTSA business. Such property is not for personal use. When an item is taken off-campus, the individual assumes financial responsibility for the property and, if the property is negligently lost or stolen, will be required to replace the item or reimburse UTSA for the cost of the item.

Prior to removal of the equipment from UTSA, a Removal of Equipment (ROE) form must be completed and signed by:

    1. Person Removing Property – signature constitutes that he/she accepts financial responsibility for the care and safeguarding of property taken off campus, and if negligently lost, stolen or damaged agrees to replace or reimburse UTSA for the total or replacement cost of the property. He/she also agree to surrender the property upon demand, upon transfer or separation from UTSA, to make the property available for scanning during the department's Annual Physical Inventory, and to complete a new ROE form each year.

    2. Authorized Departmental Official – signature constitutes acceptance of fiduciary responsibility for the equipment should the employee separate from UTSA and the item is not recovered. The responsibility for the care of all UTSA property used by a department lies with the Authorized Departmental Official and may not be delegated. It is the duty of this person to see that staff takes every reasonable precaution to prevent loss of or damage to UTSA property while in their possession, or the possession of students under their direct supervision. This person is responsible for ensuring the department’s inventory is maintained in accordance with UTSA and State policy, and is required to emphasize to all members of their staff the importance of vigilance to prevent loss of or damage to UTSA property and in identifying those responsible for such damage whenever it occurs.

    3. Dean/Associate Vice President/Vice President – signature constitutes he/she is aware that equipment is being used off campus for official UTSA purposes.

    NOTE: Only staff and faculty are to be listed on and sign the ROE Form. If a department official allows a student to remove equipment from campus, the department must retain a log within the department. The log should list the equipment identification numbers, the date the equipment was removed from campus and when it is expected back, the student's identification numbers and location of the equipment. If the equipment is located at the student's home, the student's home address should be listed. 

A Removal of Equipment Form is valid for one year (by fiscal, annual, or calendar year, at the discretion of the department).The equipment must be made available for scanning at least once per year during the department's Annual Physical Inventory. Departmental Inventory Contact Persons are responsible for maintaining accurate logs of all equipment that is not located on UTSA premises and for ensuring the department's Removal of Equipment forms are current. The completed original Removal of Equipment Form is sent to the Inventory Office for the recording of the name of the person removing property, and the off-campus location.

    1. A report of all equipment removed from the campus will be prepared quarterly by the Inventory Department and forwarded to the UTSA Property Manager’s Office. The report will list, at a minimum: the equipment, the unit code, the acquisition cost, and the responsible person.

      • the equipment

      • the department ID (Dept ID)

      • the acquisition cost

      • the responsible person

    2. A departmental log for equipment removed from campus should contain the following information:

      • Employee's name & Employee ID that is borrowing the equipment
      • Item Description, UTSA Tag Number
      • Date checked out and expected return date

    3. A copy of the signed Removal of Equipment form must accompany all equipment removed from campus and may be requested for presentation by a member of the UTSA police department.

1. Exceptions to Annual Physical Inventory Requirements for Equipment Removed from Campus

Equipment that is not located on any UTSA campus may be excluded from an Annual Physical Inventory provided the requirements pertaining to each exceptional situation are met, as listed below. The Unit Head must draft a memorandum to the UTSA Property Manager/Inventory Manager stating that the equipment is located at a specific location and attach correspondence from an accountable person stating that the item was physically verified or other circumstances/documentation, as noted below. Exceptions that are not described in one of the following situations below may be granted but should be requested in advance before removing the item from campus.

If for any reason an item is not located on campus and no Removal of Equipment Form has been prepared, the absence of the item must be reported to the UTSA Police. Such equipment will be determined to be stolen, with the following exceptions:

  • Equipment in hazardous or inaccessible areas requires a memorandum from the Unit Head stating that the equipment is located in a specific inaccessible area. The location, the tag number, the serial number, and the dept ID must be identified. A specific time period and reason for inaccessibility of the item(s) must be included.
  • Equipment that is geographically separated from any UTSA campus:
    • Within 100 miles must be scanned annually and an ROE Form must be completed annually.
    • Further than 100 miles from any UTSA campus must be scanned every other fiscal year and an ROE Form must be completed annually.
  • Equipment not within the continental United States, must have an ROE Form completed annually.
  • Art collections on tour with documentation that includes a memorandum from the President's Office with the tour itinerary, a list of items on the tour, and a point of contact.
  • Equipment confiscated by legal authorities should be documented by an annual memorandum from the withholding legal agency listing the items confiscated.
  • Equipment whereby employees are on an extended medical leave and are working from home.
2. UTSA Property Taken Out of the Country

Travelers who take UTSA property, such as laptops or GPS devices, out of the country are considered to be temporarily exporting those items under Export Control Regulations. Laptop computers and GPS, and their underlying software, are subject to Export Control Regulations and may require a license for export to some destinations. All UTSA property taken out of the country should be cleared through the Office of Research Integrity and Compliance.

3. Computer Encryption Requirement

Before being removed from the UTSA campus, all laptop/desktop/notebook computers must be encrypted or be formally approved for a waiver by the UTSA Office of Information Security in accordance with the Computer Encryption Policy/Standard (Handbook of Operating Procedures 8.12).

F. Removing Artwork

UTSA-owned artwork is acquired, distributed and positioned at the discretion of the President. Whereas the UTSA Property Manager is responsible for all artwork, artwork is distributed to each UTSA campus for the benefit and enjoyment of all visitors, faculty, staff and students to the campuses. Therefore, it is the indirect responsibility of all individuals to report any damage or theft to the UTSA Police.

Artwork positioned in a department or common area of UTSA may not be relocated without the prior approval of the President or designee. This includes relocation from one wall to another in an area or to another area. Only those personnel authorized by the President may handle art for any reason. In the event that the current positioning has become insecure and presents a risk of damage or theft, the UTSA Property Manager should be notified immediately to have the situation remedied.

Artwork may not be removed from the UTSA campuses without advance approval from the UTSA Property Manager and shall only be transported by authorized personnel.

G. Lending Equipment

Departments may lend equipment to another department/division or to a state agency for official purposes. Both parties should understand that the Inventory records are not affected by a loan transaction and the lending department remains responsible for the property. The head of the lending department should ensure that a responsible official of the borrowing department or agency acknowledges receipt of the item.

H. Equipment Returned to Manufacturer for Repair or Replacement

When returning equipment to the manufacturer for repair, departments should make note of the inventory and serial number of the property. If there is a possibility that the original item will not be returned, the UTSA Inventory tag should be removed and affixed to an Equipment Trade-In Form and forwarded to the Inventory Office. A duplicate tag will be issued to the replacement unit. No merchandise should be returned to the manufacturer with UTSA barcodes attached.

I. The Role of the Inventory Department in the Human Resources Employee Separation Process

Employees separating from UTSA must have any property that is assigned to them in PeopleSoft reassigned to a new user before final clearance from the Inventory Department for the separating employee can be granted. This is accomplished by the Inventory Contact Person (ICP) from the separating employee's department updating the Custodian Tab in the PeopleSoft Asset Management Basic Add Screen.

Final clearance is a confirmation from the Inventory Department that the separating employee's Employee ID has been cleared of any inventory obligations.


DEFINITIONS

Term Description

Cannibalization

The removal of operable parts from an otherwise inoperable equipment item. The operable parts will be used to repair or construct other UTSA equipment.

Negligence

Negligence is defined as:
"The failure to exercise the care of a reasonably prudent or ordinarily careful person in the circumstances; a breach of the duty to act with care appropriate to the situation and the relationship of the persons, so as not to cause harm or loss."

 

REFERENCES/LINKS

RELATED FORMS/WORKSHEETS


REVISION HISTORY

Date Description

05/01/14

Updated DEFINE information for transition to PeopleSoft.

09/06/13

Added note after section E. Removing Equipment from UTSA Premises under section 3.

03/07/12

Replaced Office of Sponsored Programs with the Office of Post Award Administration in subsection Transfer to Another State Agency.

Revised the Missing UTSA Property section to reflect that a department/division head must make a recommendation as to whether the loss of UTSA property was due to negligence on the part of an employee, and the measures taken should negligence be found.

02/09/11

Revised Stolen University Property Section to include procedures for when UTSA property is stolen off campus. Added new section The Role of the Inventory Department in the Human Resources Employee Separation Process.

12/02/10

Added Laptop Encryption Requirement subsection to Removing Equipment from UTSA Premises section.

08/25/10

Published guideline as HTML.


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