Property Management ProceduresOfficial Revision August 2011
Accountable Officer--The departmental administrative head to whom custodial accountability for property has been delegated. The principal investigator administering a grant or contract is the accountable officer for property acquired by or assigned to the grant or contract project.
Custodian--Any person entitled to lawful custody of property owned by the State.
Exchange Property--Property being offered as a trade-in on the purchase of a new item.
Property Clearance--Submission of the completed accountable officer change Form (PROP-4) to the Property Management Section upon the change of custodial responsibility to a new accountable officer.
Property Manager--An individual assigned by the University President to manage the assignment, accountability, transfer and disposal of state-owned property for which the University has custodial responsibility under the Florida Statutes.
Property Survey Board--A body appointed by the University President to recommend relief of accountability for loss, theft, etc. and surplus property disposal actions.
Survey--Submission of the completed Property Accountability Form (PROP-1) to the Property Management Section for action on the survey requested.
Tangible Personal Property--All personal property other than real estate, acquired by and belonging to Florida Atlantic University.
- Transfer--A reassignment of accountable property from the custody and control of one accountable officer to the custody and control of another accountable officer evidenced by the completed Transfer Request section of the Property Accountability Form (PROP-2).
A. University Property
Equipment, fixtures, and other tangible personal property of a non-consumable and nonexpendable nature, the value of which is $5,000 or more and the normal expected life of which is one year or more; this includes donations which are classified as University property.
Books, bound periodicals, films, tapes and maps that form part of a library, the value of which is $250.00 or more, are classified as university property.
Video recorders, portable computing devices, optical devices, printers, video cameras, cameras, scanners, Ipads, external drives and similar attractive items costing less than $5000 dollars purchased are classified as University property but are not assigned a number on the Master Property file. These items may be permanently marked and inventoried by the using department. Also, special decals are available upon request from Property Management.
- Gifts and property fabricated by the department from expense items that meet the definition of University property are classified as University property.
B. Responsibility for University Property
The responsibility and authority for all university property is delegated to the Vice President of Finance, who shall serve as the Property Manager. To assist the Vice President Finance, the custodial responsibility is further delegated to the administrative heads of departments to which the property is assigned. The administrative head may delegate custodial accountability, but he or she remains the responsible custodian.
- The principal investigator is the accountable officer with regard to property assigned to a grant or contract. Upon expiration of the grant or contract, any property transferred to the university under the terms of the grant or contract becomes the accountability responsibility of the department head to which the property is transferred.
C. Care of Property
The accountable officer is responsible for insuring that property is adequately protected against loss or damage. He is also responsible for assuring university property is used solely for the benefit of the University. Exceptions to this limitation require submission of a written report to the Vice President of Finance by the accountable officer.
University property removal must be authorized by the accountable officer.
- Written permission to remove the property from the campus must accompany the property. The University Police Department has the authority to require this document. These requests should be submitted on a request to remove property from campus form (PROP-3). The requestor should retain an approved copy as authorization for removal.
D. Property Accounting - The Property Management office organizationally reports to the University Controller's Office and is charged with the following responsibilities and duties:
Providing cyclic annual inventories for all departmental accounts as required by Florida Statutes.
Maintaining current records of files which indicate identification, location, value, condition, and assignment of university property.
Coordinating the disposal of surplus property. Processing documents which deal with the acquisition, transfer, loan, or disposal of university property.
Performing scheduled and spontaneous physical inventory inspections and verifications using a random sample of items provided by the Internal Managing Auditing Department.
Transmitting property data to the Banner Fixed Asset Module.
Affixing property identification bar-codes.
Assisting with the recycling of surplus property within the University.
Acting as Secretary to the Survey Board.
- Conducting property management workshops for accountable department managers and clerical support personnel.
E. Property Purchase Procedures
The Index number shown on the purchase document is the number of the department, grant or contract to which the property is assigned.
Initial freight costs should be included as part of the equipment cost.
Replacement parts (but not additions thereto), repairs, and service contracts are items of expense and are not university property.
- University property may not be purchased on a Blanket Purchase Order.
F. Acquisition of No-Charge Equipment (Donations, Gifts, etc.)
All procurement and acquisitions must be initiated on a General Requisition (PUR 22). The Division of Purchasing will process the requisition.
"No Charge" is entered on the requisition by the requesting department; Purchasing issues a no-charge purchase order which causes Central Receiving to anticipate delivery.
Upon receipt of the equipment, Central Receiving shall notify Property Management of the arrival and, in addition, shall provide inventory data for the records.
- No obligation is assumed by the University without the appropriate requisition processing.
G. Specific Procedures
1. Identification Number Assignment--Bar Codes
a. An identification number is assigned to items which meet the stated criteria for university property. Numbered bar-codes are attached to a copy of the purchase order and held for affixing by the Property Management staff.
b. Any department may add an attachment to an existing tagged item without identification numbers being assigned to the added item. Attached parts added to tagged equipment will be considered a part of the same item. No additional tag will be issued and the purchase order will be used to increase the value of the original item accordingly. The Division of Purchasing must include the Purchase Order number and bar code of the existing item on the requisition(s) of the component(s) to be added. These two numbers will identify the existing item's inventory records that must be adjusted.
c. Gifts, donations, and property fabricated by the department from expense items are issued bar codes.
d. Bar-codes will normally be applied and the property record completed within thirty working days of the receipt of payment as captured on the Extract Report. Specific and extenuating situations as: remote site tagging, unauthorized off-campus removal, purchases made and stored for new construction projects, partial shipments, direct pays, carry forward funding, and etc.
2. Annual Physical Inventory
a. Section 273.02, Florida Statutes, requires that an inventory of property shall be taken once each year and whenever there is a change of custodian. To comply with the annual requirement of the law, departmental property listings of inventory items that are not found during the automated scan done by the Property Department (Records With No Current Inventory Date) are sent to the accountable officers. The department must complete a physical inventory by locating or surveying the missing items and returning the verified list to Property Management within thirty days.
b. Accountable officers are encouraged to delegate responsibility and authority to maintain continuous control and accountability over property.
c. The accountable officer is required to assign the physical counting of missing items to employees other than him/herself.
d. Personnel taking the inventory are required to make appropriate notations on the property listing, to verify property on listing, changes in location, or correction to nomenclature, such as status code and condition code. Notations for property listed but not located must be made.
e. To report lost property, the accountable officer must forward a complete Property Accountability Form (PROP-1) to Property Management.
f. To report stolen property, the accountable officer must forward a completed Property Accountability Form (PROP1) and a copy of the Police Report to Property Management.
g. The Inspector General's Department will designate a random sample of items taken from completed physical inventories. Property Management will use the sample to check the accuracy of the reported inventory.
h. Property Management will monitor the thirty day return requirement. A follow-up will be sent out to the Accountable Officer of Record and the next higher level of supervision if the inventory is not returned within a reasonable time period following the deadline.
i. The Property Department will write up the documentation needed for any items that have not been found for at least 5 years and, that have been totally depreciated if the Accountable Officer has not complied by doing so. The Property Department will present this documentation to the Accountable Officer for signature; upon obtaining the signature, the survey will be presented to the Survey Board for approval to write it off at the next scheduled Survey Board meeting.
3. Moving and Transfer of Property
a.The Property Management Department must be notified either with a Transfer Form (PROP-2) or by phone at extension 7-2927 when property is physically moved from one location to another. These changes in location may be made on line by the Property Department without filing of paperwork as long as the asset has a current fiscal year inventory date.
b. When custodial accountability of property is transferred, a Property Transfer Form (PROP-2) must be submitted to Property Management. Transfers will not be completed until both required signatures have been affixed. The asset must have a current fiscal year inventory date.
4. Exchange (Trade-In) of Property
University property may be (1) traded-in on new acquisitions from vendors, or (2) may be sold to the Division of Surplus Property for the amount of the trade-in allowance.
a. The requisition for the new acquisition should contain the following information concerning the item to be traded: description, including serial number (if applicable), tag number, and trade-in allowance.
b. The above information may be obtained from the department's inventory list or from Property Management.
c. Upon approval and after notification by the Purchasing department, the originating department must prepare a Property Accountability Form (PROP-1) to obtain relief from accountability for the traded-in item(s).
d. University property intended for trade-in is subject to the following restrictions:
- The value of the trade-in must be more than the utilization cost to the University.
- All tag numbers or other university identifiers are removed or marked out before release of the property.
- Removed property tags are returned to Property Management with the signed Property Accountability Form(PROP-1) when possible.
e. Report of Survey
1. No university property, including property purchased on contract or grant accounts or equipment which is donated, may be removed or disposed of without the approval of Property Management and/or the University Survey Board.
2. The property accountability form (PROP-1) is used to remove university property from inventory for the following reasons: theft/mysterious disappearance; lost/ not noted in annual inventory; worn out or broken/not usable (pick up required); not needed/obsolete (pick up required); to be cannibalized (prior approval required from Property Management); trade-in; and, other (includes fire, flood, etc and should be explained). The Survey Board must review and approve the disposition of all items designated as: theft/mysterious disappearance and lost/unaccounted for. The Survey Board further delegates the responsibility to the Property Management Department to dispose of items deemed to be junk and to be trashed, surplused and to be recycled, cannibalized, traded-in, or transferred.
3. The accountable officer shall initiate the Property Accountability Form (PROP-1) for appropriate action and release of accountability.
4. When loss or damage has been caused by negligence, the Survey Board may recommend assessment of personal liability.
5. When a theft is discovered, the University Police Department must be notified. The University Police Department must submit written notification of investigation results to the department. A copy of the Police Incident Report (FAU DP-84) must be attached to the Property Accountability Form (PROP-1).
6. When loss or damage to property has been protected by insurance, in addition to the coverage provided by the State Fire Insurance Fund, the Property Accountability Form (PROP-1) is submitted with the date of loss or damage, the date of submission of the insurance claim, and the name of the insurance company attached. Notify the insurance section of the University Controller's Office immediately of all insured losses.
7. When a Property Accountability Form (PROP-1) is used to request authorization to cannibalize equipment, the cannibalization may be accomplished only after the property has been inspected and approved for this method of disposition by a representative of Property Management.
8. Equipment returned to the vendor for credit does not require a Property Accountability Form (PROP-1). However, Property Management must be advised in writing of the bar-code number and description of the equipment, the amount of credit and the date on which it was received. University identification numbers must be removed from property before it is returned to the vendor.
Abandoned Personal Property
a. Personal property abandoned (except automobiles) or lost on a campus of a university in the State University System must be disposed of in accordance with the provisions of Section 705.18, Florida Statutes.
b. Under the provisions of this section, the University President shall take charge and make a record of the date such property was found, and after thirty days, the President shall order the property sold at public outcry. At any time prior to sale, the rightful owner may reclaim the property.
c. Property Management will, when notified and in accordance with the Statutory provisions outlined above, arrange to pick up and dispose of abandoned or lost personal property.
d. All moneys realized from such sale shall be placed in an appropriate fund and used solely for student scholarships and loan purposes.
No individual is authorized to negotiate or arrange for the disposal of materials or salvage.
Disposal of Surplus Property
Disposal of any university property that has been tagged at the time of purchase has to be reported to the Controller’s Office, Property Management Department by submitting a Property Accountability Form (PROP-1). Disposal should be witnessed by the Property Department.
Periodically, an e-mail list of surplus property available is circulated to FAU-L. If relocation within the campus is not possible, then Property Management disposes of the property in accordance with current FAU Procedures.
a. Responsibility and Duty
(1) The Property Survey Board acts as an advisory board to the Vice President of Administration and Finance. The Property Survey Board's functions are the reviewing, interpreting, and recommending to the Vice President the disposition of items requested for survey.
(2) The Property Survey Board is responsible to the Vice President for of Administration and Finance the execution of all duties, as detailed herein. The Board is further responsible for the lawful application of regulations as contained in the Florida Statutes, Chapter 273, and in the surplus property rule, 6C5-6.07, Florida Administrative Code.
(1) The Vice President of Administration and Finance will nominate members of the Survey Board for a term of two years. The President will appoint the members.
(2) Membership will consist of nine (9) members.
(3) Chairman for the Board will be elected by members.
(4) Secretary for the Board shall be the Manager of Property Management.
(1) The Property Survey Board will meet on a cyclical basis or on the call of the Chairman.
(2) The Secretary for the Board will publish the minutes of the meetings and maintain the records for the board.
d. Reports and Forms--The Property Survey Board will receive, review, vote and submit recommendations to the Vice President of Administration and Finance for approval.
(1) Property Accountability Form (PROP-1) is to be completed by the accountable officer if a survey or transfer action is required. Attachments as required should be attached prior to submission to Board.
(2) Survey Board Meeting Agenda. This form is typed and photocopied as necessary. Signatures of Survey Board members and the Vice President of Administration and Finance are affixed.
(3) Summary of Surveyed Property. This form is to be used to summarize the results of the Survey Board's actions.
e. Functions of the Secretary of the Board
(1) Log in receipt of documents received from departments, Police, State agencies, and any documents from outside sources.
(2) Review each document (request for survey) and all back-up documentation prior to submission to Board for recommendation.
(3) Prepare a list of items under consideration by the Board.
(4) Maintain a current list of items surveyed, pending approval, etc.
(5) Maintain a file of all regulations pertaining to Board.
(6) Maintain a file of all pending and approved survey forms (this must include all documentation).
(7) Maintain a file of all minutes and reports released to the Board.
(8) Work as liaison between departments and Vice President of Administration and Finance.
f. Surplus Property
(1) Tangible personal property which is determined to be surplus because it is excess, obsolete, uneconomical or inefficient for continued use shall be certified as surplus by the custodian of the property to the Property Manager by completing the Property Accountability Form (PROP-1) and forwarding it to Property Management.
(2) In instances of loss, theft or fire, such property should be reported to the Property Manager and Survey Board for action on property accountability.
(3) Buildings, structures and other items of a semi-permanent nature shall be considered tangible personal property, if and when they are severed from the real property upon which they reside, and shall be reported in the same manner as all other surplus property. In addition, the legal description of the location, size, type of construction, and reason for removal shall be noted.
Note: all information in this manual is subject to change by the appropriate authority.
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