Property & Inventory Management

PROPERTY MANAGEMENT

POLICIES AND PROCEDURES MANUAL

I. DEFINITIONS

II. ACQUISITIONS OF EQUIPMENT

Purchases

Equipment Received by Central Receiving

Equipment Picked up by Departmental Personnel

Equipment Received by Off-Campus Departments

Lease/Purchase Agreements

Departmental Transfer Authorization

Miscellaneous Disbursement Voucher

Alabama State Agency for Surplus Property

Other Than Purchases

Gifts

Renovations

Fabrication by Maintenance Department

Consignments, Loans, Donations or Fabrications of Equipment by using Department

Office for Sponsored Programs Financial Services - (Post Award Policies and Procedures)

#6- Equipment

III. TRANSFERS OF EQUIPMENT

Transfers to Other Departments

Transfers to Surplus Property

Transfers to Other Buildings

IV. LOANS OF EQUIPMENT

V. DISPOSAL OF EQUIPMENT

Lost, Stolen or Assumed Stolen

Trade-Ins

Obsolete or Useless

Cannibalization

Sales

VI. PHYSICAL VERIFICATION OR INVENTORY

VII. TRANSFER OF PROPERTY MANAGEMENT RESPONSIBILITY

THE UNIVERSITY OF ALABAMA PROPERTY MANAGEMENT

POLICIES AND PROCEDURES

SYNOPSIS

The University of Alabama is required by state law to maintain a complete inventory of all equipment and to verify this inventory through physical counts at least once every two (2) years. The property management policy attached outlines the responsibilities and procedures developed to respond to this requirement. It assigns the ultimate responsibility for assuring compliance with the laws regarding equipment inventory to the Dean, Director, or Department Head to be delegated as they see fit.

The heart of this policy lies in the creation of DEPARTMENTAL PROPERTY MANAGERS appointed by the appropriate Dean, Director, or Department Head whose responsibilities will be to represent their departments in all property related matters. The Property and Inventory Management Office will depend on these managers to keep departmental inventories in order. The University of Alabama Property and Inventory Management staff will conduct periodic training sessions for these Department Managers and will be available at all times to answer questions.

Definitions of various equipment categories have been clarified and strengthened. Distinctions between "University-Owned" and "University-Controlled" property as well as "moveable" and "fixed" equipment are made.

All possible avenues for acquisition of equipment are addressed, and the appropriate procedure to be followed in each situation (to process the additions to the appropriate inventory) is established.

Every effort should be made to turn in surplus equipment to Surplus Property for transfer to other areas of the University. Property may be transferred from one using department to another and from one building to another within the same department. Property can also be "loaned" to other University of Alabama Departments.

Following is a discussion of the most frequently used of the acceptable methods of property disposal (trade-ins, cannibalization, public sales, etc.).

The physical counts required by law are the responsibilities of the departments and shall be subject to subsequent verification by the Property and Inventory Management Office.

Should the responsibilities of Departmental Property Manager be assigned to another person, please notify the University of Alabama Property and Inventory Management Office immediately. We will be happy to assist in an orderly transfer of responsibility in any way we can, including an additional physical inventory.

Our goal in Property and Inventory Management is to make the safeguarding and eventual disposal of University property as effective and easy as possible.

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PROPERTY MANAGEMENT POLICY

The University is committed to maintaining proper accountability and control over its equipment. This policy for University-wide property management outlines the responsibility and procedures developed in response to this need. It is the responsibility of every employee of the University to abide by these property management procedures.

The Dean, Director, or Department Head has the ultimate responsibility to insure compliance with these property management procedures. In performing this responsibility they may designate Property Managers.

The effectiveness of this property management policy is dependent upon a coordinated working relationship between the University Property and Inventory Management Office and the respective Property Manager. The procedures outlined in the following text provide the means for the Property Manager to coordinate his or her responsibilities with those of the Property and Inventory Management office.

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PROPERTY MANAGEMENT PROCEDURES

I. DEFINITIONS

University-Owned Property "University-Owned property" is all property acquired by the University by whatever means, title to the property being vested in the University. Where applicable, University-Owned property is subject to the laws of the state of Alabama as well as this policy.
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University-Controlled Property "University-Controlled property" is all property acquired by the University by whatever means, title to the property being vested in someone other than the University. Where applicable, University-Controlled property is subject to the terms and conditions of any contract, grant, agreement, regulation, or other obligation under which the University assumed possession, as well as to this policy.
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Property Subject to Inventory Control For the purpose of this procedure, "property" is defined as moveable and non-consumable items. "Property Subject to Inventory Control" includes University-Controlled property as well as University-Owned property. It does not include the category known as "fixed property or equipment," nor does it include items customarily installed as part of a building. Examples of excluded items are water heaters, built-in appliances, central air conditioning systems, etc. Generally, property subject to inventory control (i.e., equipment) should satisfy the following requirements in order to be included:
1. Have a life expectancy of one (1) year or more.
2. Have an acquisition value of $5,000.00 or more and an identity not altered materially through use.
  1. Some items that cost $5,000.00 or more are considered consumable and should be classified as "expense" rather than "equipment."
    1. Glass, cloth, rubber, filament, and inflatable products
    2. Repair and replacement parts
    3. Tool kits or assortments of small hand tools
    4. Toys used for instructional or recreational purposes
    5. Various instructional cassette tapes
  2. Special property items that are non-consumable, have an acquisition value of less than $5,000.00, and have a useful life of one (1) year or more should be tagged and/or inventoried as follows:
    1. "Sensitive items," such as firearms, etc.
    2. Items acquired from the Alabama State Agency for Surplus Property where the initial acquisition cost requires that the items must be inventoried. (See Section II-A-7, Alabama State Agency for Surplus Property.)
    3. Antiques where the dollar value has not been determined by appraisal and the acquisition cost is less than $5,000.00.
    Resolution of specific situations where the status of a piece of equipment is questionable as to whether it is "fixed" or "moveable" will be left to the discretion of the Property and Inventory Management Office. Decisions will be made on the most consistent basis possible.
Property Manager The Dean, Director, or Department Head may delegate the authority for property responsibilities and assign it to any employee(s) within their division who will be designated "Property Manager" in addition to any other titles held. A current master list should be forwarded to the Property and Inventory Management Office by each Dean, Director, or Department Head and maintained on a current basis. A list of all persons who have been designated by their Property Manager to act as representatives will likewise be maintained by the office of the appropriate Dean, Director, or Department Head and the Property Control Department.

Training and Orientation It is the responsibility of the University of Alabama Property and Inventory Management Office to provide for the training and orientation of each Property Manager. A training session for each newly appointed Property Manager and/or the designated representative(s) will be conducted on either a group or one-to-one basis. Attendance of a training session by each Property Manager is considered essential for the effective performance of these duties. Property Managers should also view training as a continual process and should not hesitate to contact the Property and Inventory Management office for guidance in property-related matters.

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II. ACQUISITIONS OF EQUIPMENT

A. Purchases

Equipment Received by Central Receiving
1. Equipment purchased by the using department through normal purchasing procedures will be received in the Central Receiving Department and delivered by Receiving personnel to the appropriate on-campus Department with property tags affixed. Where this is not feasible, equipment will be delivered to the Department for assembly/uncrating/installation as necessary. The property manager will then notify the Property and Inventory Management Office to affix tags to these items as soon as possible.
2. Additions will be made to the appropriate departmental inventory file, and the Property Manager will be responsible for that equipment until such time as it is disposed of in accordance with this policy.
3. As of January 2001 Equipment should be Delivered to Central Receiving and all other deliveries should be delivered directly to the department.
Equipment Picked up by Departmental Personnel Should departmental personnel at any time pick up equipment from a vendor's place of business, they should immediately upon return to campus notify the Property and Inventory Management Office so that it may be properly tagged and recorded.
Equipment Received by Off-Campus Departments
1. Equipment purchased by off-campus Departments will be delivered directly to these departments. The Property Manager must then notify the Property and Inventory Management Office of the delivery.
2. The Property and Inventory Management office will then process the addition(s) to the appropriate departmental inventory file and will provide to the Property Manager the property tags to be affixed to the equipment received. As with on-campus Departments, the Property Manager is responsible for equipment received until the time of its disposal.
Lease/Purchase Agreements
1. Equipment acquired via least/purchase agreements falls within the category of "University-Owned property" and is subject to the controls and restrictions as stated in "I. DEFINITIONS." As such, the Property Manager is responsible for this equipment.
2. Equipment acquired in this manner will be added to the appropriate departmental inventory file at the time that the initial payment occurs. If the lease/purchase agreement is terminated prior to fulfillment, it is the Property Manager's responsibility to advise the property control officer of that fact in order that The University or Alabama property tag and other markings may be removed and the equipment deleted from the Department's inventory records.
Departmental Transfer Authorization
1. Property acquired by "Departmental Transfer Authorization" is also subject to inventory control.
2. Equipment purchased in this manner will be delivered to the property manager of the receiving department. The Property Manager's signature on the "Departmental Transfer Authorization" form will acknowledge receipt of the equipment items listed.
3. All items purchased in this manner will be tagged and added to the appropriate departmental inventory in accordance with current procedures.
Miscellaneous Disbursement Voucher
1. Equipment purchased from non restricted funding sources such as the Capstone Foundation and Law School Foundation via "Miscellaneous Disbursement Voucher" is likewise considered "University-Owned property." As such, it too will be tagged and recorded as moveable equipment.
2. Equipment items procured in this manner should be received in the Central Receiving Department and delivered by Receiving personnel to the appropriate Department. The Property Manager or other departmental personnel should notify the Central Receiving Department to expect the delivery of these items immediately after the order has been placed. Upon receipt of this equipment, the Property Manager will contact the Property and Inventory Management Office and request that property tags be affixed to these items as soon as possible.
3. A Property and Inventory Management personnel will be dispatched to tag the equipment.
4. These items will then be processed as additions to the appropriate departmental inventory. The Property Manager shall be responsible for this equipment until such time as it is disposed of in accordance with University policy and procedure as herein established.
Alabama State Agency for Surplus Property
1. Departments wishing to purchase equipment form the Alabama State Agency for Surplus Property are invited to do so in accordance with established University procedures.
2. In the event that equipment items are purchased on visits to the Surplus Property Warehouse, it is the Property Manager's responsibility to see that the equipment purchased, along with the "Distribution Document" obtained from the State Agency is brought by the Central Receiving Department to be tagged and recorded to the appropriate departmental inventory. This should be done no later than the next business day.
3. Equipment acquired from the Alabama State Agency is tagged and recorded in accordance with the restrictions placed on the use of such equipment. These restrictions apply where the government's initial acquisition cost is $5,000.00 or more and to passenger motor vehicles regardless of cost. The restriction period runs for 18 months from the date of purchase, during which time this equipment must be used in its original form; i.e., it cannot be used for secondary utilization. This restriction applies except where prior written approval to cannibalize a piece of equipment has been granted by the Alabama State Agency. All requests for cannibalization will be coordinated through the Property and Inventory Management Office. After approval has been received, Departments may then cannibalize equipment as desired. The Property Manager should complete a "Equipment Form" to remove the item from the Department's inventory records.
4. After expiration of the restriction period, Departments desiring to cannibalize equipment acquired from the Alabama State Agency may apply in writing to the Property and Inventory Management Office for permission to do so. It is the responsibility of the Property Manager to request authority to cannibalize equipment as well as to complete a "Equipment Form" to remove the equipment from the Department's inventory records.

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B. Other Than Purchases

Gifts
1. It is the Property Manager's responsibility to notify the Advancement Services Ultilizing "The Gift Transmittal Deposit Form" when equipment is received as a gift from an outside source.
Renovations
1. At the discretion of the Property and Inventory Management Office, equipment acquired and installed as part of a renovation project will be tagged as moveable equipment if the cost of the equipment exceeds $5000.00.
2. It is the responsibility of the Property Manager to furnish to the Property and Inventory Management Office at the beginning of each project a list and acquisition costs of all such equipment furnished and installed under the terms of that contract to be processed as an addition to the Department's inventory records.
Fabrication by Maintenance Department
1. At the discretion of the Property and Inventory Management Office, items of equipment which are fabricated by the University's Maintenance Department will be tagged and recorded as moveable equipment and as such will be considered "property subject to inventory control." If fabrication cost of these items exceeds $5000.00, these items would generally fall in the category of "not built-in."
2. It is the responsibility of the Property Manager to make the Property and Inventory Management Office aware of equipment items fabricated for them.
Consignments, Loans, Donations, or Fabrications of Equipment by Using Department Equipment acquired by Departments through any of the four methods referenced above will be reported to the Property and Inventory Management Office by the Property Manager by completing an Equipment Acquisition Other Than Purchases Form

III. TRANSFER OF EQUIPMENT

Transfers to Other Departments Transfer of excess or unwanted property is encouraged. Departments wishing to transfer equipment to any other department on campus may do so through the Property and Inventory Management Office .
1. The Property Manager of the transferring Department should initiate a "Equipment Form" to initiate the desired transfer for all items costing over $5000.00 and which appear on the Department inventory. This form is to be completed and signed by the transferring and Property Managers as well as the Dean or Division Head to whom the transferring Department reports. This form should then be forwarded to the Property and Inventory Management Office.
2. Upon receipt of the necessary paperwork, the Property and Inventory Management Office will assume the responsibility for transferring equipment between inventories and for scheduling physical moves of equipment. Departmental personnel should not schedule moves of equipment directly with the Logistical Support Department. Logistical Support personnel are not authorized to move any equipment or property without prior knowledge and written approval of the Property and Inventory Management Office.
3. Equipment that is in excess in one Department is normally transferred to other Departments without charge. However, in certain cases the Department from which the property is being transferred may require reimbursement for this equipment from the receiving Department. A "Equipment Form" must be initiated by the receiving Department.
Transfers to Surplus Property
1. Departments wishing to transfer excess or unwanted equipment to Surplus Property may do so by preparing a "Equipment Form"for all items whose cost is greater than $5000.00.
2. Upon receipt of the appropriate form, the Property and Inventory Management Office will transfer and schedule the physical move of these items. Only the specific items listed on the form will be moved by the Logistical Support Department. No moves of equipment to Surplus Property will be performed by the Logistical Support Department prior to receipt of the completed form(s) by the Property and Inventory Management Office.
3. It should be noted that when equipment is transferred to "Surplus Property," the transferring Department automatically relinquishes all control over that piece of equipment. All funds realized from the sale of these surplus items accrue to the appropriate Financial Affairs revenue account. Equipment that is in the Surplus Property area, however, is available to all Departments alike on a first-come, first-served basis.
Transfers to Other Buildings
1. Items to be moved which carry a purchase price of less than $5000.00 can be disposed of directly by the University of Alabama Department that owns the items. If that Department wishes Property and Inventory Management Office to dispose of these items, the Department must send a detailed listing of these items to the Property and Inventory Management Office. For these items less than $5000.00, the originating Department is subject to a handling charge consisting of actual labor charges incurred by the University of Alabama Logistical Support Department and the Property and Inventory Management Office in transporting and handling these items to the point of disposal.
2. Departments wishing to have equipment under their control moved from one building to another may do so by preparing a "Equipment Form". It is the responsibility of the Property Manager to complete and sign this form and forward same to the Property and Inventory Management Office to accomplish the desired physical move of equipment.
3. Upon receipt of the completed Report of Change in Location form, the Property and Inventory Management Office will assume the responsibility of scheduling physical moves of equipment. Departmental personnel should not schedule moves of equipment directly with the Logistical Support Department but should have moved coordinated by the Property and Inventory Management Office.
4. This procedure is to be followed where the desired effect is to change the building or room location only. Accountability for this equipment remains with the Department on whose inventory it appears.

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IV. LOANS OF EQUIPMENT

Prior written permission from the appropriate Dean or Department Head is required before University-Owned or University-Controlled equipment can be loaned to other Departments within the University or to institutions external to the University. This authorization will be retained by the Property Manager subject to verification by the Property and Inventory Management Office. The receiving Department or institution borrowing equipment from the University must sign The University of Alabama "Equipment Form" acknowledging receipt of the equipment item(s) listed. This will serve as the Department's or Institution's authority to be in possession of equipment belonging to The University of Alabama. A Report of Change in Location of Equipment form must also be processed on all loans in excess of ninety (90) days duration.
Upon the return of loaned equipment to the University or to the appropriate Department, the Property Manager will sign and date all copies of the "Equipment Form" acknowledging the return of equipment items listed in good condition, except as noted.

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V. DISPOSAL OF EQUIPMENT

Lost, Stolen, or Assumed Stolen
1. When equipment has been lost, stolen, or assumed stolen, the Property Manager should immediately notify the University police requesting an investigation of the loss.
2. The Property Manager should then notify the Property and Inventory Management Office by forwarding a completed "Equipment Form" form along with a copy of the police report of the investigation.
Trade-Ins
1. In situations where equipment already on hand is "traded-in" on the purchase of new replacement equipment, the Property Manager will advise the Property and Inventory Management Office of this fact by completing a "Equipment Form" as soon as a purchase order is issued for the purchase of the new equipment and before the old equipment is removed from the University campus.
2. Trade-ins of equipment should be so noted on the appropriate purchase order, referenced by property number and serial number, and should have the prior approval of the Purchasing Department.
Obsolete or Useless
1. Equipment that is obsolete or has been rendered useless should be transferred to the "Surplus Property" inventory for disposal by the Property and Inventory Management Office.
2. Transfers of equipment that is obsolete or useless are handled by the Property Manager and are essentially the same as any other transfer to Surplus Property.
Cannibalization
1. Departments desiring to cannibalize "University-Owned property" on their inventories may do so only after receiving written permission secured from the responsible Dean, Director, or Department Head if the value is greater than $5,000.00.
2. To secure this permission, a "Equipment Form" form specifically requesting permission to cannibalize the equipment items listed on that form should be filled out and approved. In all cases this form should be forwarded to the Property and Inventory Management Office for approval prior to cannibalization. Equipment may be cannibalized upon receipt of the approved "Equipment Form" by the Property Manager.
3. In case of emergency, verbal permission for immediate cannibalization can be secured from the Property and Inventory Management Office. The Property Manager shall then be responsible for ensuring that the "Equipment Form" is filed subsequently.
Sales
1. The University of Alabama Property and Inventory Management Office will handle the sale of all inventoried equipment (i.e. equipment costing over $5000.00) in accordance with state laws pertaining to the disposal of surplus personal property.
2. The Property Manager of the Department wishing to sell equipment valued over $5000.00 should submit a memorandum requesting that the item(s) listed thereon be advertised for public sale. The memorandum should contain a complete description of each item to be sold, including its corresponding University of Alabama property number, if applicable, and minimum acceptable bid, if any. An account number to which the expenses of conducting the sale (newspaper ads, printing, postage, etc.) will be charged should also be indicated. The memorandum should be signed by the Property Manager or Department Head and approved by the Dean or Division Head. The approved memorandum should be in the Property and Inventory Management Office prior to advertisement for sale.
3. All proceeds from sales of equipment will be deposited in the General Fund. Proceeds from the sale of specific items may be transferred to the appropriate departmental budget with the prior approval of the Vice President for Financial Affairs and the appropriate divisional Vice President. The University of Alabama Property and Inventory Management Office will accrue 20% of the proceeds of such sales to defray the handling costs.
4. The University of Alabama Property and Inventory Management Office will also handle the sale of non-inventory items (i.e. those items costing less than $5000.00) at the request of the affected University of Alabama Department. The Property Manager of the Department wishing to sell such items should submit a memorandum containing a detailed description of each item and it estimated "value" or minimum bid amount to the University of Alabama Property and Inventory Management Office. The University of Alabama Property and Inventory Management Office will receive 33 1/3% of the sale price of the items sold with the balance accruing to the originating Department. Should the sale proceeds be insufficient to cover this charge, then all sale proceeds will be accrue to the University of Alabama Property and Inventory Management office and the originating Department will be assessed for the balance. If the items do not reach the minimum bid amount, The University of Alabama Property and Inventory Management Office will sale the items in the next sale and the procedes will go into Property and Inventory Management's accounnt.

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VI. PHYSICAL VERIFICATION OF INVENTORY

Federal guidelines and state regulations dictate that a complete physical inventory of all equipment items under each Department's accountability be taken at least once every two (2) years. The responsibility for performing this task shall rest with each individual Department for which an inventory has previously been established. These inventories shall then be subject to subsequent verification by the Property and Inventory Management Office.

The Property and Inventory Management Office shall be responsible for establishing and announcing each physical inventory period. At the beginning of each period, the Property and Inventory Management Office shall distribute to each Departmental Property Manager, two (2) copies of the most current equipment listing (printout) available, along with specific instructions relative to taking the inventory. The Department shall then have no more than ninety (90) days in which to perform the inventory. The inventory should result in identifying whether the items listed are still on hand. If not, proper reporting of lost, stolen, destroyed, obsolete, or otherwise missing equipment should be made. Upon completion, the Property Manager should then return to the Property and Inventory Management Office the original copy of the completed inventory that has been signed and dated by the Property Manager and Department Head. This copy of the listing should reflect the current status of each item listed thereon. In addition, any forms (Reports of Survey, Reports of Transfer, Reports of Change in Locations, etc.) necessary to effect the desired changes in the equipment listing should also be included. The Property Manager should retain the duplicate copy of the equipment listing for the departmental property files.
Periodic inventory verifications may be arranged by the Property and Inventory Management Office with the departmental Property Manager. To the extent possible, these verifications shall be arranged at mutually agreeable times. They shall be conducted by a representative of the Property and Inventory Management Office with the assistance of the Property Manager and other faculty and/or staff members as may be required. If the verifications indicate to the Property and Inventory Management Office that the inventory taken by the Property Manager was inadequate, then this matter will be reviewed with the Property Manager. Unresolved discrepancies will be reported to the appropriate Department Head, Dean or Division Head, and Vice President.
If at any time, University-Owned or University-Controlled equipment is removed from University premises for purposes relating to the performance of one's duties, it shall be required that permission in writing from the appropriate Department head is secured prior to said removal. This permission shall include, but not be limited to, the description of the equipment, condition, manufacturer's serial number (if applicable), and the University Identification Number (property number). It shall be retained by the Property Manager subject to verification by the Property and Inventory Management Office.
When equipment is returned to a manufacturer or a service representative for repairs, the same procedures as outlined in "C" above will apply.
In situations where equipment has been lost, stolen, or assumed stolen, the budget of the individual Department involved will "ordinarily" bear the replacement cost of equipment purchased as a result of these discrepancies. Any exceptions to this procedure will necessitate the approval of the appropriate Dean and/or Vice President.

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VII. TRANSFER OF PROPERTY MANAGEMENT RESPONSIBILITIES

The appropriate Vice President or delegated appointing authority of the Property Manager shall be responsible for requesting a complete physical inventory prior to impending personnel changes of the Department Head, the Property Manager, or in other situations where deemed necessary. At the time a Property Manager within a Division or Department is relieved of property management responsibilities, for whatever reason, the Property Manager will conduct a physical inventory of all property subject to inventory control. This should occur prior to the Property Manager's being formally relieved or property management responsibilities. The Vice President in charge of the Division in which the past Property Manager worked should appoint a succeeding Property Manager to effect the transfer of accountability.

The succeeding Property Manager and the Department Property Manager shall conduct a joint physical inventory of all inventoried property within the Department or Division. As with other inventories, all items will be identified as being on hand or, if not, they should be property reported as lost, stolen, destroyed, obsolete, or otherwise missing. The succeeding Property Manager shall sign a transfer acknowledging receipt of all equipment shown on the verified inventory and then shall assume the responsibilities of Property Manager.

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