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Handbook of Business Procedures

Date published: 
Last revised: 
Issued by: 

Feb. 17, 2005
Feb. 22, 2011
Inventory Services

 

Part 16. Inventory Control and Property Management - Table of Contents


16.1. INVENTORY CONTROL AND PROPERTY MANAGEMENT INTRODUCTION AND RESOURCES

A. Statement of Purpose

To acquaint all University personnel with current State laws and University rules, regulations and procedures for proper safeguarding and disposal of University property.

B. Rules and Regulations

Texas State Government Code Chapter 403.271, Property Accounting, establishes the current guidelines for property accounting and responsibility. This act was amended by House Bill No. 39, enacted by the Texas Legislature, which became effective September 1, 1991. In addition, House Bill No. 39 added Subchapter L, Property Accounting, to Chapter 403 of the Government Code.

The sale or transfer of data processing equipment to employees of the University is prohibited as per Board of Regents Rules Regulation Part II Chapter VII Sec. 7.3 Disposal of Surplus or Salvage Data Processing Equipment. University of Texas System Board of Regents' Rules and Regulations, Series 80201*.

Surplus or salvage data processing equipment, as defined by Texas Government Code Chapter 2175, Surplus and Salvage Property Guidelines. For disposal exceptions for Institutions of Higher Education, see the Texas State Government Code Chapter 2175.304.

Article IX, Section 9.03 of Senate Bill 1 from the 77th Legislative Session 2002-2003 Biennium clarifies the penalties for excessive lost or stolen property. See the Legislative Budget Board web site for information.

Texas Government Code Chapter 2175, Surplus and Salvage Property Guidelines. For disposal exceptions for Institutions of Higher Education, see the Texas State Government Code Chapter 2175.304.

The Vice President and Chief Financial Officer is the President's designated Property Manager for The University of Texas at Austin. Department heads are responsible for all University property in their care. Department heads are further responsible to ensure that the annual physical inventory of University property assigned to their department is completed each year. The annual physical inventory process and timeline are prescribed by the property manager and State law. See Texas State Government Code Chapter 403.272, Responsibility for Property Accounting, and 403.273, Property Manager; Property Inventory.

The property manager is responsible for maintaining property records and prescribing reports required from department heads. These records are maintained by Inventory Services in the Office of Accounting.

Property is categorized as either "capital," "controlled," or "non-capital" (expensed). Capital assets consist of non-consumable items having a value of five thousand dollars ($5,000) or more. Controlled assets are items that the State Comptroller requires agencies and institutions to report to the State Property Accounting (SPA) system. Controlled assets consist of non-consumable items having a value of $500 to $4,999.99 per unit, and firearms regardless of value. Capital and controlled items are placed on the University's inventory system and are accounted for each year by a physical inventory. New acquisitions costing less than $5,000 that do not meet the criteria for capital or controlled equipment are considered non-capitalized. Department heads are also responsible for the custody, safekeeping, and proper use of such non-capitalized items.

Due to fiscal year-end processing, the *DEFINE inventory system is closed each year from Sept. 1 through the end of October. Updating existing inventory records or adding additional inventory items that were purchased in the new fiscal year to the inventory system will not be possible during this time. E-mail notifications will be sent campus-wide informing the community of the *DEFINE inventory system closure and reopening.

Texas Government Code
Legislative Budget Board
Vice President and Chief Financial Officer
Inventory Services
SPA Process User's Guide

C. Accountability and Responsibility for University Property

University property is State property and may be used for official purposes only.

The president of the University of Texas at Austin has assigned the responsibility for property accountability to the department heads as inventory custodians. The department head or custodian may not delegate the responsibility for the proper care, maintenance, and safekeeping of university property assigned to his or her custody; however, to ensure a separation of duties a noncustodian or inventory contact should be appointed to assist department heads in fulfilling their responsibilities. All contacts new to inventory are required to attend the mandatory training class, DE 437-Inventory Policies and Procedures. Inventory contacts, who have attended the mandatory training class DE 437, may meet yearly compliance requirements by completing the training course CW 536. Please visit TXCLASS for class scheduling, profiles, and registrations.

Office of the President
DE 437 - Inventory Policies and Procedures
TXClass

D. References

1. State and University

Legislative Budget Board Publications
FACTS Manual of Accounts, Section V, Volume I
University of Texas System Board of Regents' Rules and Regulations Series 60101*
University of Texas System Board of Regents' Rules and Regulations, Series 80201*
SPA Process User's Guide
Texas Government Code Chapters 2175.304, and 403.271 through 403.278.
The University of Texas at Austin HOP policies 4-1120-PM and 3-2020-PM

2. Federal

Defense Federal Acquisition Regulations Supplement Part 245
Defense Logistics Agency Manual 4215.1 (DLAM 4215.1)*
DoD Guidebook for Contract Property Administration (replaces DoD 4161.2-M Property Manual)
Federal Acquisition Regulation Part 45 (FAR Part 45)
Federal Demonstration Partnership
Office of Naval Research
OMB A-110 – Uniform Administrative Requirements for Grants and Contracts
CFR 220 – Cost Principles for Educational Institutions (formerly OMB Circular A-21 (2004))
The University of Texas at Austin Purchasing Procedures

E. Related Offices

Board of Regents
http://www.utsystem.edu/bor/rules/

General Services Surplus Property
http://www.utexas.edu/physicalplant/general/index.html#Surplus

Inventory Services
http://www.utexas.edu/business/accounting/in/

Legislative Budget Board
http://www.lbb.state.tx.us/

Office of Institutional Research
http://www.utexas.edu/academic/oir/

U.S. Department of Defense
http://www.defenselink.mil/

U.S. General Services Administration
http://www.gsa.gov/portal/category/21219

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Part 16. Inventory Control and Property Management - Table of Contents