Property Management Handbook

Table of Contents

• Introduction
• Areas of Responsibility
  • Responsibilities of the Property Management Office
  • Responsibilities of the Campus Department (End User)
  • Department Inventory Clerks
  • Location of Property
• Property Requiring Special Handling
  • Personally Owned Property
  • Loaned Property
• Property Definitions
  • Definition of Property
  • Instructional Property
  • High Risk Property
  • Software
• Acquisition of Property
  • Purchase Order
  • Gifts
  • Transfers of Property to the University
• Inventory of Property
  • Identification of Property
  • Physical Inventories of University Property
• Survey (Removal) of Property Records
  • Survey - Surplus Property
  • Survey - Trade In of Property
  • Survey - Lost or Stolen Property
  • Survey - Junked or Salvaged for parts
  • Survey - Destroyed Property
  • Survey - Donation of Property
  • Survey - Transfers to other CSU campuses
• Relocation of Property
  • Relocation Within a Department
  • Relocation of Entire Department
  • Inter-Departmental Transfers
• Property Procedures for Computer Hardware
• Loss Prevention Techniques
• Forms

INTRODUCTION

The State Administrative Manual (SAM), Section 8600, outlines requirements for property accounting to ensure uniform accountability for State property. Specific instructions are provided for the acquisition, maintenance, control, and disposition of property.SAM also requires State agencies to make a physical count of all property and reconcile the count with accounting records at least once every three years. The campus Property Management Office has instituted a three year rotating inventory calendar to satisfy this requirement (approximately one-third of the campus' property is inventoried each year).

To assist the campus in meeting the SAM directives on property accounting, this handbook contains guidelines for those responsible for property. Questions, requests for assistance, suggestions regarding these guidelines, and any property related inquiries, should be directed to the Property Management Office.

AREAS OF RESPONSIBILITY

Responsiblities of the Property Management Office

The Property Management Office has the primary responsibility for the implementation of procedures, policies, and controls to provide for the accurate accounting of the acquisition, control and disposition of University (State) property (SAM Section 8600).The Property Management Office is responsible to physically inventory one-third of the University's property each year.The Property Management Office is responsible for the implementation of procedures, policies, and controls to protect University (State) property.The Property Management Office is responsible to maintain up-to-date property records and initiate all forms necessary to properly carry out this function.The Property Management Office is responsible to regularly and routinely adjust property records and reconcile to official University accounting reports of equipment expenditures. As part of the reconciliation process, it is the responsibility of the Property Management Office to notify Fiscal Operations, through the use of reconciliation reports, of any errors in or changes needed to the official University records.It is the responsibility of the Fiscal Operations Office to make the appropriate corrections/adjustments to the official capital asset records indicated by the reconciliation reports from the Property Management Office.

Responsibilities of the Campus Department (End User)

SAM Section 8652 states that "Inventories will not be exclusively controlled by the custodian (the Property Coordinator) of the property records..." The campus end user department has the responsibility for the care, custody, maintenance, and control of all property assigned to the department. It shall maintain up-to-date departmental records and complete such forms as are necessary to fully inform the Property Management Office with respect to the custody, records and transactions involving said property so that the Property Management Office may properly carry out its function with respect to property.

Department Inventory Clerks

Department inventory clerks, designated by a dean, director or chair are responsible for the following:

1. Conduct, in conjunction with the Property Coordinator, an inventory of the department once every three years (Please refer to "Physical Inventories", below). Promptly report any lost or stolen property to the Property Management Office and file a police report with Public Safety according to SAM sections 262S and 8643 (Please refer to "Lost or Stolen Property", below).
2. Process Request to Property Survey" form when appropriate (Please refer to " Survey of Property", below).

Location of Property

The location of each item of property is noted in the departmental records. Current records as to the movement of property are maintained in such a manner that any item of property can be located for inspection or inventory purposes within a reasonable time. Any relocation of property must be reported to the Property Management Office (Please refer to "Relocation of Property", below).

PROPERTY REQUIRING SPECIAL HANDLING

Personally Owned Property

If a University employee keeps personally owned property on campus, it should be reported to his/her department and identified as the property of the owner. The University will not be responsible for loss or damage to private property.

Loaned Property

Loans of property must be properly documented.

1. Loans of University Property from one Department to Another:
   • If property is loaned to another department, a CSUSB Property Action Request form must be forwarded to the Property Management Office by the lending department, giving the name of the borrowing department, the property number, and the new location of the property. When the property is returned, the Property Management Office should be notified by the lending department.
2. Loans of Property to Employees for Off-Campus Use:
   • Any loan of University property to an employee for off-campus use must have the prior approval of an authorized departmental designee. The loan of University property to an employee for a period of two weeks or longer requires the notification of the Property Management Office. All property being loaned must be listed on a CSUSB Property Action Request form, and processed via the Property Management Office. An Off Campus Property Use Agreement form must also be completed and a copy sent to the Property Management Office.
   • The employee using the property off-campus is responsible for the property while it is in their custody.

PROPERTY DEFINITIONS

Definition of Property

For inventory purposes, Property (Equipment) is defined as:

1. Has a normal useful life of at least one year. A unit acquisition cost of at least $500. The unit cost includes the purchase price with sales tax, plus all costs to acquire, install, and prepare the property for its intended use.
2. Be used to conduct State business.

Property acquired with Foundation funds and/or Associated Students accounts is not State property.

Instructional Property

For budgetary purposes, the Chancellor's Office requires record maintenance and annual reports of "instructional property". By definition, instructional property meets the following criteria:

1. Owned by the University. Has a unit acquisition cost of $500 or more. Assigned to an instructional department, the media services center and/or a learning lab, is included in the "instructional" category. Property assigned to the Library, Computer Center, Deans' offices, plant maintenance, and other administrative departments is not classified as "instructional".
2. Properly tagged and recorded in the property records of the Property Management Office.

High Risk Property

Some State property may pose a special risk of loss due to its marketability and portability (e.g., calculators, typewriters, vcr's, tv's, camera equipment, etc.). All high risk property with an acquisition cost of at least $500 will be tagged and inventoried. It is also highly recommended that departments with high risk property with an acquisition cost below $500 record the make, model, value and serial numbers in departmental records. An engraving tool is available to borrow from the Property Management Office for engraving property. Engrave "CSUSB", the name or initials of the department, and the CSUSB identification number (if applicable) on such items. Engraving has proven to be a deterrent to potential burglars or thieves, by assuring them that the property stolen can be identified by police anywhere as belonging to CSUSB.

EDP Software

It should be noted that computer software is not considered a property accessory. Software purchases are classified as operating expenses unless the acquisition cost is over $5000, in which case, the software is classified as an Intangible Asset.

ACQUISITION OF PROPERTY

Purchase Order

Property acquired on a purchase order is recorded on property records. Included on record are:

1. Fund number (based on the requisitioner's account number)
2. Description
3. Make
4. Model
5. Serial number
6. PO number
7. Acquisition cost
8. Department (based on the requisitioner's Report Unit)
9. Date received
10. Location (Building/Room)

Upon receipt through Shipping and Receiving, all property is tagged with a CSUSB bar coded identification number. If it is not practical to tag the property while it is in Shipping and Receiving, arrangements will be made to tag the property after it has been delivered to the department. Any receipt of incorrect or damaged property must be reported immediately to Receiving. Receiving or Purchasing will report any repairs or replacement of property to the Property Management Office. No property should be delivered directly to and/or picked up by departments unless arrangements have been made with Purchasing and Shipping/Receiving. Purchase of property items by use of the Procurement credit card can be authorized with prior V.P. approval. (See Procurement Card Handbook, "Restricted Purchases".)

Gifts

Any gifts to the University that are transferred to University ownership and meet the definition of property will be tagged and added to the property records. All donations of equipment, artwork, software, and other items must be processed through the Development Office prior to acceptance. The Gifts-in-Kind form is available through that office.

Transfers of Property to the University from other State Agencies

Notices of surplus property from other State agencies will be reviewed by the Property Management Office for possible use by the University. The Property Coordinator will notify campus departments of the availability of such property when appropriate. Property that is officially transferred to University ownership and meets the definition of property will be tagged and added to the property records.

INVENTORY OF PROPERTY

Identification of Property

All equipment which meets the property requirements will be tagged with a CSUSB bar coded identification number prior to delivery to the ordering department or shortly after it has been delivered to the ordering department. It remains so identified as long as it is in the custody of the University. Assigned property numbers are removed only when the property has been "surveyed" (See " Survey of Property from Records", below). Any additional identification by a department should be applied in a manner that avoids confusion with the State property number. Should the identification number be accidentally or mistakenly removed, the property will be tagged with a new tag and the information transferred to the new record.

Physical Inventories of University Property

The Property Coordinator is responsible to ensure compliance with SAM Section 8652 as stated in the Purposes and Objectives by physically inventorying one-third of the University's departments each year. The entire University has a vested interest for ensuring accurate property records because State budget allocations for replacement of instructional equipment are based, in part, on existing property records. The Property Coordinator has set up a tentative rotating inventory schedule that will require the physical inventory of all schools and administrative divisions at least once every three years. The physical inventory will be conducted on a department by department basis within each school and division. The following procedures will apply:

1. The physical inventory of property will NOT be exclusively conducted by the custodian (Property Coordinator) of the property records. It is the responsibility of the departments to assign a department inventory clerk to conduct the inventory along with the Property Coordinator.
2. Worksheets and Inventory Reports will be retained for audit and will show the date of inventory and the signatures of: the inventory takers (department inventory clerk and Property Coordinator) and the department head/dean.

Any property that is not found or accounted for during inventory will be reported to the appropriate department head/dean on a Property Survey Report. The department will be asked to state thoroughly on the report any facts and/or reasonable explanation as to why the missing property was not found. The completed report will need to be signed by the department head/dean. At this time, if appropriate, the department is also responsible for filing a police report on the missing property with the Public Safety department (SAM section 2625 and 8643). A copy of the police report is to be sent to the Property Coordinator along with the completed Property Survey Report. The Property Coordinator will forward the Property Survey Report to the other members of the Property Survey Board for their review and approval. The Property Survey Board is composed of the head of the department or school who has responsibility for the property being surveyed, the Vice President for that area or their designee, and the Vice President for Administration and Finance.

Once the Property Survey Report listing the missing property as lost is approved by the Property Survey Board, the property will be removed from the department's inventory.

SURVEY (REMOVAL) OF PROPERTY FROM RECORDS

In order to remove property items from inventory a process known as a "survey" must be completed. Property can be removed from inventory when it is traded-in, junked, lost, stolen, destroyed, salvaged for parts, sold as surplus, or transferred to another government agency such as the County or a school district. The survey is accomplished through a Property Survey Report. The report lists the property to be surveyed and must be approved by the Property Survey Board before the property can be traded-in, junked, etc. The Property Survey Board is composed of the head of the department or school who has responsibility for the property being surveyed, the Vice President for that area or their designee, and the Vice President for Administration and Finance. Please follow the procedures below to have property items removed from inventory.

Survey: Surplus Property

1. When it is determined that retention of property is no longer in the best interest of the department, a Request to Survey Propertyform must be prepared by the appropriate dean, director or chair. The request to survey property should include the CSUSB ID number, description, and the reason why the property is no longer needed. Forward the completed document to the Property Management Office. Before disposal of the property, the property will be made available to other campus departments. When arrangements are made to have the property transferred to another department on campus, the Property Management Office will initiate a Property Action Request form to transfer the property from the originating departments' inventory to the new departments' inventory.
2. When no other departments on campus have any use for the surplus property, the Property Management Office will make arrangements to properly dispose of the property through sale at auction, transfer to another government agency or other appropriate action. At this time, a Property Survey Report or Property Transfer Report will be processed to officially remove the property from the originating departments' inventory.

Survey: Trade-In of Property

Departments planning to trade-in property must list the vendor and monetary value offered by the vendor for the property on a Request to Survey Property form. This form should be submitted to the Property Management Office prior to actual trade-in. The purchase order number or requisition number should be listed on the form. A Property Survey Report noting that the property is being traded-in will be processed to officially remove the property from the originating departments" inventory.

Survey: Lost or Stolen Property

When a determination has been made that University property has been lost or stolen, the accountable individual or department should immediately notify Public Safety, extension 75165, and file a police report. A written report to the department chair, dean or director also needs to be prepared explaining what happened. A copy of this report and the University Police Report must be attached to the completed Request for Property Survey form and sent to the Property Management Office. The State Administrative Manual, section 8643, states: "Employees will be charged with any loss and damages to State property due to their negligence or unauthorized use." A Property Survey Report noting that the property was lost or stolen will be processed to officially remove the property from the originating departments" inventory. The Public Safety Department shall notify the Property Management Office when lost or stolen state property is reported to Public Safety. Public Safety officers shall forward a copy of the University Policy Report to Property Management within seven days of the report filling. Additionally, if any property is recovered, a similar report will be forwarded to Property Management within seven days of filing. For reconciliation purposes, Public Safety will maintain/update the list of lost or stolen property on campus. Property Management will contact Public Safety once a month to confirm that all reports have been forwarded. Public Safety will perform a police report database search for confirmation. Property management will log all conversations with Public Safety to record database searches.

Survey: Junked or Salvaged for Parts Property

When it is determined that property no longer has any value (junk) or would best serve the needs of the department by being salvaged for parts, a Request to Survey Propertyform must be prepared by the appropriate dean, director, or chair. The request to survey property should include the CSUSB ID number, description, and the reason why the property is no longer needed. A Property Survey Report noting that the property is to be junked or salvaged for parts will be processed to officially remove the property from the originating departments" inventory.

Survey: Destroyed Property

When it is determined that property has been destroyed (as by fire, etc.), a Request to Survey Property form must be prepared by the appropriate dean, director, or chair. The request to survey property should include the CSUSB ID number, description, and the reason why the property is no longer usable. A Property Survey Report noting that the property was destroyed will be processed to officially remove the property from the originating departments' inventory.

Survey: Donation of Property

When a department wishes to donate surplus property to another government organization (such as a school district or the county), a Request to Survey Property form must be prepared by the appropriate dean, director or chair. The request to survey property should include the CSUSB ID number, description, the reason why the property is no longer needed, and the name and address of the donee. Before the property can be donated, the property will be made available to other campus departments and State universities. If arrangements are made to have the property transferred to another department on campus, the Property Management Office will initiate a Property Action Request form to transfer the property from the originating departments' inventory to the new departments' inventory. If arrangements are made to have the property transferred to another State university, the Property Management Office will initiate a Property Transfer Report to accomplish the transfer to the other university. When both these options are exhausted, the department is free to donate the property to the another government organization of their choice. A Property Survey Report noting that the property is being donated will be processed to officially remove the property from the originating departments' inventory. Donations to other than government organizations is limited to non-profit organizations and to property that has an estimated salvage value of $0.00. When a department wishes to donate such property to a non-profit organization, a Request to Survey Property form must be prepared by the appropriate dean, director or chair. The request to survey property should include the CSUSB ID number, description, the reason why the property is no longer needed, and the name and address of the donee.

Survey: Transfers to other CSU Campuses

When a department wishes to transfer surplus property to another CSU campus, a Request to Survey Property form must be prepared by the appropriate dean, director or chair. The request to survey property should include the CSUSB ID number, description, the reason why the property is no longer needed, the name and address of the campus the property is being transferred to, and the name and phone number of the person accepting the property on behalf of the campus. A Property Survey Report noting that the property is being transferred will be processed to officially remove the property from the originating departments' inventory.

RELOCATION OF PROPERTY

It is the responsibility of the department to notify the Property Management Office of all relocations of property as follows:

Relocation within a Department

When the only change is the physical location of property within a department, a CSUSB Property Action Request form should be completed and signed by the departmental inventory clerk. Another option is to notify the Property Management Office with a memo via E-Mail.

Relocation of Entire Department

When an entire department relocates, the department should complete a physical inventory of property. The Property Management Office should be notified of the impending relocation through a CSUSB Property Action Request form or a memo via E-Mail. The Property Management Office will coordinate a physical inventory of the department with the designated departmental inventory clerk.

Inter-Departmental Relocation

When property is permanently transferred between departments, a CSUSB Property Action Request form must be completed and signed by the department head/chair of the department transferring the property. This form should then be forwarded to the department that has accepted the property. This department should record the new location(s) of the property. The department head/chair of this department also signs the form accepting the property for the department. The completed form should be forwarded to the Property Management Office. The Property Management Office will then update its inventory to reflect the transfer.

PROPERTY PROCEDURES FOR COMPUTER HARDWARE

External Computer Hardware Over $500

All external computer hardware purchased with a unit value of over $500 will be recorded on the Property records. Upon receipt through Shipping and Receiving, all computer hardware is tagged with a CSUSB bar coded identification number. If it is not practical to tag the hardware while it is in Shipping and Receiving, arrangements will be made to tag the hardware after it has been delivered to the department.

LOSS PREVENTION TECHNIQUES

Departments with office areas, especially those which are easily accessible to the general public, or which are responsible for property which is susceptible to theft, such as computer equipment, office machines, etc., should consider utilizing one or all of the following theft protection measures:

1. Ensure that CSUSB ID tags are on all property. Engrave "CSUSB", the name or initials of the department, and the CSUSB identification number (if applicable) on such items, using an engraving tool which may be borrowed from the Property Management Office. Engraving has proven to be a deterrent to potential burglars or thieves, by assuring them that the property stolen can be identified by police anywhere as belonging to CSUSB. Business machines may be cabled or bolted and locked to desks and stands. There are various designs and manufacturers which produce pads that anchor a business machine and can offer a sufficient amount of protection. Purchasing can provide names of companies that sell devices for securing computers, printers, typewriters, etc. A security room or closet may be used to store any item(s) considered vulnerable to theft. The value of the objects to be protected should determine the strength and burglary-resistant qualities required. This protection is often worthwhile as a secondary line of defense. For internal control purposes, inventories need not be exclusively controlled by the Departmental Inventory Clerk. Departments may assign a responsible person to perform interim inventories to ensure adequate property control. Establish a check-out/check-in system which would include the identification number of the item, the person to whom it is assigned, its location, and the dates checked out and in.
2. Periodically review key and room security needs.

This narrative has been prepared by the Property Management Office of Support Services. Its purpose is to provide guidelines for those responsible for property. Questions, requests for assistance, suggestions regarding these guidelines, and any property related inquiries, should be directed to the Property Management Office.

APPROVED BY ADMINISTRATIVE COUNCIL JANUARY 5, 1998

FORMS

1. CSUSB Property Action Request Form
2. Off-Campus Property Use Agreement Form
3. Off-Campus Property Use Check-In
4. CSUSB Gifts-In-Kind Form (DEV 043)- Sample
5. Request to Survey Property Form

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