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Business Affairs


Property Management and Inventory Control Procedures

General

Inventory Responsibilities of Department Heads

Physical Inventory Procedures

Non-Inventoried Property

Digital Property Disposition Form (See InfoPath)

Digital Property Transfer Form (See InfoPath)

University Policy Manual

 

PROPERTY MANAGEMENT AND INVENTORY CONTROL PROCEDURES

University property is purchased for use in the conduct of official University business.  University property should be removed from campus only for conducting University activities and with the approval of the department head.  Property removed from the campus should be safeguarded against loss or damage in transit and returned to the campus as soon as reasonable.  University property is not to be used in the conduct of a private business or for profit activities.

To meet the requirements of property management of inventoried items, the university has established the property management section of the accounting services office. Control records are kept on property purchased by the University with a value of $5000.00 or more.  Information pertaining to the acquisition, transfer and disposition of equipment is maintained by the property management section of the Accounting Services Office.  This office will assist in managing all University property whether on inventory or not.  If questions arise concerning property procedures, contact Property Management at 620-341-5137.

University officials have NO authority to dispose of state property without prior approval of Property Management and the ESU Controller.  This includes disassembling an item and using it for parts.

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INVENTORY RESPONSIBILITIES OF DEPARTMENT HEADS

Approval of Invoices

When a department head approves invoices for payment of new equipment, the brand name, model, and serial numbers should be added to the invoice, if not provided by the vendor.  If the property is to be inventoried in a different org than used to pay for the item, indicate the org number to be used for inventory purposes. If the item is an upgrade to a previously purchased item, it should be noted and the decal number should be included.

If items which would normally be inventoried are being purchased by one University department for resale to other University departments, it should be so noted on the initial purchase and when approving the invoice.

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Building Identification

Department heads will indicate the building in which the property is located.  The two digit ESU building code and room number should be entered on the invoice.

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Transfer or Disposal of Property
    (with a value of $5000 or more and listed on Inventory)

All University property with a value of $5000.00 or more and listed on inventory must be disposed of according to guidelines established by the State Surplus Property Program. When disposing of inventory, a Property Disposition Form is prepared by the department wishing to dispose of state property. The Property Disposition Form is sent to Property Management for review. The form is then forwarded to the Physical Plant for appropriate action to be taken Physical Plant will follow the Secure Disposal and Reuse Policy established by Faculty Senate and approved by the President of this university in October of 2009. University Personnel DO NOT have authority to dispose of state property without prior approval by Property Management and the ESU Controller. This includes disassembling an item and using it for parts.

To transfer property from one department’s inventory to the inventory of another department, the Property Transfer Form should be prepared and submitted to the receiving department for a signature. Then that department should forward the form to Property Managment. After Property Management records the transfer, a copy of this form will be forwarded to the Physical Plant if it is necessary for Physical Plant staff to move the items. Physical Plant staff will move the property upon receipt of a copy of the form signed by Property Management.

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Transfers of Grant Purchased Items

Transfers of property that was purchased by externally-sponsored research projects or other external funding sources, where title to the property vests with the State of Kansas, may be approved only if accompanied by a formal recommendation from the current institution, including certification that: a.) The project investigator is moving to another academic institution and the principal investigator’s financial support is also transferred by the granting agency without interruption; b.) The granting agency approves the transfer to the new institution of property purchased wholly by grant funds; c.) Such property was specialized in nature, acquired specifically for the investigator for that particular program, and is essential to continuance of the program without undue interruption in the work; d.) The originating institution does not need the property in its current related research program; and e) The entire cost of physical transfer of the property will be borne by the granting agency or the recipient institution.

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Lost, Stolen, or Destroyed Items

When property is discovered missing, the University Police should be notified immediately and a police report filed on the missing item. Property Management should be notified by phone as soon as possible.  After the phone call, the department should follow up by submitting a copy of the police report along with a Property Disposition Form to Property Management. 

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Trade-In or Replacement Items

A Property Disposition Form must be prepared and sent to Property Management listing the item(s) to be offered in trade.  The Property Disposition Form should accompany the related purchase Requisition.  No property may be released to a vendor prior to receipt of an approved Property Disposition Form, which will be prepared by the property management section of the Accounting Services Office for approval from the ESU Controller.

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PHYSICAL INVENTORY PROCEDURES

The annual physical inventory is the means by which each department reports on the custody of the permanent property assigned to the department.  A physical inventory is required to be conducted annually by the University.  Property Management coordinates this annual physical inventory and reports the results to the State Division of Accounts and Reports and to the University administration.

Property Management will visit each department to annually locate and verify all of the property in the department against an inventory list. If a discrepancy is found in the description of any item, a notation will be made by the listed item.  All serial numbers on the property will be verified with the numbers on the property list.  If the listed serial number is incorrect, the correct number will be noted.  If a serial number is not listed, it will be noted.  If property is on hand and is not on the listing, a note will be made describing the property and the department from which it was received or where it was purchased. The department will provide documentation of the purchase. After the physical inventory is completed, Property Management will make any necessary corrections to the department's inventory list and provide a final copy of the inventory list to be signed by the department. After the inventory list has been signed by both the department and Property Management a final copy will be provided for the department's records.

Monthly each department head will receive a listing of inventory transactions and should verify the information and initiate any corrections with the property management section of the Accounting Services Office.

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NON-INVENTORIED PROPERTY

Departments are responsible for safeguarding and accounting for property valued at less than $5000.00 and not included on the University’s central inventory.  To dispose of non-inventoried items, departments must complete a Physical Plant Service form.  If items are to be offered for sale or donation, prior approval must be received from Property Management and the ESU Controller. Items that are lost or stolen must be reported to the University Police and a police report filed as soon as possible.  Property Management should be notified by phone and the department should follow up by submitting a copy of the police report to Property Management.  University officials have NO authority to dispose of non-inventoried property.

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