Property Management and Inventory Control Procedures
Inventory Responsibilities of Department Heads
- Purchase Requisitions
- Approval of Invoices
- Building Identification
- Transfer or Disposal of Property
- Transfers of Grant Purchased Items
- Lost, Stolen, or Destroyed Items
- Trade-In or Replacement Items
Instructions for the Transfer of Property Form
Transfer of Property Form (coming soon)
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. 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 the property management section of the Accounting Services Office (x5137).
University officials have NO authority to dispose of state property without prior approval of the State Surplus Division. This includes disassembling an item and using it for parts.
INVENTORY RESPONSIBILITIES OF DEPARTMENT HEADS
Purchase Requisitions
Purchase requisitions should give the exact “name” of the item being ordered. By listing the “name” in this manner, the inventory record will conform to the correct name for the property. When ordering property and accessories, the accessories should be clearly identified. If the new property and the accessories are intended to be inventoried as one item, the order should so state. For example, One Oscilloscope, with the following accessories: (list the accessories). If the accessories are to be inventoried separately, each should be clearly described so the items can be easily identified during inventory.
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 account than used to pay for the item, indicate the account number to be used for inventory purposes.
Items which would normally be inventoried but are being purchased by one University department for resale to other University departments should be object coded 498 on the initial purchase and so noted when approving the invoice.
Building Identification
Department heads will indicate the building in which the property is located. The two digit ESU building code should be entered on the invoice (see Appendix A).
Transfer or Disposal of Property
All University property must be disposed of according to guidelines established by the State Surplus Property Program (available in the Controllers Office). A transfer of property form is prepared by the department wishing to dispose of state property (see appendix B). The Transfer of Property form is sent to the property management section of the Accounting Services Office for review and transmittal to the State Surplus Division if necessary. University Officials have NO authority to dispose of state property without prior approval of the State Surplus Division. 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 ESU Transfer of Property (authority for moving equipment) form should be prepared and submitted to the property management section of the Accounting Services Office. The form is available on InForms at o:\informs\property.wpf (see Appendix B). For additional instructions or assistance, contact the property management section of the Accounting Services Office.
Normally this form will be prepared by the department that the equipment is being transferred from, but either unit can prepare it as long as care is taken not to prepare duplicate forms for one transfer. After the property management section of the Accounting Services Office 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 the property management section of the Accounting Services Office.
Transfers of Grant Purchased Items
Transfers of property that was purchased by externally-sponsored research projects or other external funding sources, were 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.
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. The property management section of the Accounting Services Office 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 Transfer of Property form to the property management section of the Accounting Services Office. The police report will be included with the Disposition of Property that will be submitted to State Surplus Property by the property management section of the Accounting Services Office.
Trade-In or Replacement Items
A Transfer of Property form must be prepared and sent to the property management section of the Accounting Services Office listing the item(s) to be offered in trade. The Transfer of property should accompany the related purchase Requisition. No property may be released to a vendor prior to receipt of an approved DA 110, which will be prepared by the property management section of the Accounting Services Office for approval by State Surplus Property.
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. The property management section of the Accounting Services Office coordinates this inventory and reports the results to the State Division of Accounts and Reports and to the University administration.
The property management section of the Accounting Services Office will annually provide each department with a physical inventory list, in duplicate, of all property assigned to the department. The department will need to locate and verify all of the property in the department against the list. If a discrepancy is found in the description of any item, a notation should be made by the listed item. All serial numbers on the property should be verified with the numbers on the property list. If the listed serial number is incorrect, the correct number should be entered. If a serial number is not listed, it should be entered. If property is on hand and is not on the listing, a note should be attached describing the property and the department from which was received.
After taking the physical inventory of all property in the department, one copy of the duplicate physical inventory list, marked with any necessary changes or additions, is to be returned to the property management section of the Accounting Services Office together with a signed Physical Property Inventory Certification. Instructions set with each department’s property list will give a date to return the report to the property management section of the Accounting Services Office.
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.
COMPUTER EQUIPMENT
Computer equipment costing $500 to $5,000 is maintained on a separate University inventory. Departments are responsible for safeguarding and accounting for these items. A listing of new acquisitions will be sent to each department monthly and annually. This listing with other annual listings should be kept by the department as a permanent record of the property assigned to that department. Follow procedures as outlined in inventory Responsibilities of Department Heads.
NON-INVENTORIED PROPERTY
Departments are responsible for safeguarding and accounting for property not included on the University’s central inventory. To dispose of non-inventoried items, departments must complete a Physical Plant work order form (available on InForms at o:\informs\service.wpf). If items are to be offered for sale, prior approval must be received from the property management section of the Accounting Services Office. To transfer on-inventoried items, departments must complete the processed through the property management section of the Accounting Services Office. However, items that are lost or stolen must be reported to the University Police and a police report filed as soon as possible. The property management section of the Accounting Services Office should be notified by phone and the department should follow up by submitting a copy of the police report to the property management section of the Accounting Services Office. University officials have NO authority to dispose of non-inventoried property.
Last Updated June 28, 2007