University Business Policies and Procedures Manual

7710
PROPERTY MANAGEMENT AND CONTROL
Effective Date: November 1, 1991
Revised: 12/13/91, 10/15/95, 02/05/96, 03/21/97, 05/08/98, 12/08/99, 07/01/01, 09/25/02, 07/01/04, 03/01/06, 08/01/06, 06/01/07
Subject to Change Without Notice

Authorized by UNM Regents' Policy 7.21 "Investment of Operational Funds and Bond Proceeds"

1. General

The University of New Mexico may acquire, maintain, protect, use, and dispose of property required to perform its mission. University property and resources may be used only for University business. For the purposes of this policy, property is defined as moveable items such as equipment costing over $5000 with a useful life of more than one (1) year. University property must be managed according to University policies and applicable state and federal law, including the following:

• State of New Mexico Law Section 12-6-10 NMSA 1978 as amended by Chapter 303, 1983 and House Bill 1074;
• Office of Management and Budget Circular A-110 Attachments N and O;
• OMB Circular A-21;
• NASA Procurement Regulations;
• DHHS Procurement Regulations;
• DOE Procurement Regulations; and

• Appendix C of the Defense Acquisition Regulations as consolidated into the Federal Acquisition Regulations.

University property includes all:

• equipment purchased by University departments, regardless of the source of funds used to purchase the equipment;
• U. S. Government-owned equipment used by University departments;
• components and material used to make equipment, whether furnished to, acquired by, or fabricated by the University;
• property donated to the University; and
• property loaned or leased to the University by outside organizations.

University property is in the custody of the department which purchased or is using the property. The department is responsible for the management and control of the property assigned to it. The dean, director, department head, or the principal investigator for government-sponsored projects, is responsible for:

• initiating requests to acquire property or use restricted or government excess property;
• the proper use, maintenance, and security of assigned property;
• maintaining inventory records on all property in custody of the department; reporting any shortage, damage, loss, or theft of property; and
• disposing of University property according to University policies.

2. Acquiring Property

2.1. Purchases

All purchases of equipment are made according to University policies, the Higher Education Department (HED), and the State of New Mexico Procurement Code. Expenditures for units of equipment of $10,000 or more are to be charged to a plant fund index. Departments may contact the Property Accounting Department for an index number to transfer the funds if the department does not have a plant fund index.

2.1.1. Purchases Using Federal Funds

All purchases involving federal funds must comply with the guidelines of the individual contract or grant, and be approved by the University Contract and Grant Accounting Office or the University Health Sciences Center (HSC) Financial Services Division. The purchase of equipment must be necessary, in accordance with the terms of the contract or grant, and comply with U.S. Government regulations. The principal investigator must complete all required government forms.

2.1.1.1. Avoid Duplicate Purchases

The University must avoid purchasing duplicate items. If it will not interfere with a project, users should make property acquired for use on a project available to other projects.

• First preference for other use shall be given to other projects sponsored by the federal agency that financed the property.
• Second preference shall be given to projects sponsored by other federal agencies.
• Use on other projects not sponsored by federal funds is permissible if authorized by the federal agency.

The University Property Accounting Department maintains a database of property available for shared use. Send Purchase Requisitions (PRs) using federal funds for equipment items of $10,000 or more to the Property Accounting Department. The Property Accounting Department will perform a search of the equipment database to determine if duplicate equipment is available.

2.2. Gifts

All gifts of equipment to the University must be made in accordance with "Gifts of Tangible Personal Property" Policy 7110, UBP. Unless exempted under Section 8. of that policy, a department must obtain approval from the University Development Office prior to accepting a gift of equipment. Once the gift is received, the department must report it to the Development Office per Section 6. "Gifts of Tangible Personal Property" Policy 7110, UBP. The execution of any formal acknowledgment forms must be processed by the Associate Vice President for the Development Office; however, the department receiving the gift may and should express appreciation and gratitude for the gift. The Development Office reports all property valued over $5000 to the Property Accounting Department. This property is then added to the University Property Inventory as described in Section 4. herein.

2.3. Property Loaned to the University

External organizations and agencies sometimes lend property to the University. Loaned property may include such diverse items as a fine arts collection or a piece of equipment.

2.3.1. Record Keeping and Insurance

Any property on loan to the University must be immediately reported to the Property Accounting Department for insurance purposes. The loaned property is added to the University inventory records and is included in the annual physical inventory. When the property is returned to the lending organization, the department must notify the Property Accounting Department and supply Property Accounting with documentation that the returned equipment was received by the lending agency (i.e. copy of the receipt of goods).

2.3.2. Use, Maintenance, and Security

Property on loan to the University will be returned in the same condition in which it was received. While property is on loan to the University, the department that has custody of the property is responsible for its use, maintenance, and security. Refer to Section 3. herein for guidelines.

2.4. Hazardous Materials

If hazardous or dangerous materials are needed in the course of conducting research, contact the University Department of Safety and Risk Services before acquisition.

3. Use, Maintenance, and Security of Property

University departments who have custody of University property are responsible for its proper use, maintenance, and security.

3.1. Use of Property

Normally all property should be used for the purpose originally intended. However, a piece of equipment acquired for use on a federally sponsored project may sometimes be used elsewhere within the University after the project ends. The terms of the contract or grant must be complied with.

3.1.1. Government Owned Property

Any government property with an acquisition value of $5,000 or more must be monitored for a minimum level of use as required by Federal Acquisition Regulations (FAR) Subpart 45.902-2 and OMB Circular A-110. If the equipment is no longer being used, the department must contact the Property Accounting Department.

3.2. Maintenance of Property

Departments must take care of and properly maintain property to ensure the longest useful life possible. All items should be maintained according to manufacturers' recommendations or accepted standards. Follow suggested schedules of lubrication, cleaning, calibration, and inspection. If preventive maintenance is not required, the property should be maintained in a clean and orderly manner.

 3.3. Location and Security of Property

The location of each item of property is included in the University inventory records. Current location records must be maintained so that any item can be located for inspection or inventory purposes within a reasonable time. When property is temporarily idle or placed in storage, the department must provide adequate protection from damage or loss. Property must be protected when moved.

Departments should make adequate provisions for the physical security of the property in their custody. Areas containing equipment should be locked after business hours or at other times when not in use. Special precautions should be taken for high-value, portable items.

3.3.1. Theft of Property

Departments must immediately report the theft of any inventoried equipment to the University of New Mexico Police Department, Property Accounting Department, and the Department of Safety and Risk Services. Unexplained disappearances and losses must be reported to Property Accounting as soon as possible following the discovery of the loss. For more information, refer to "Casualty and Liability Insurance Claims" Policy 6150, UBP.

3.3.2. Precious Metals and Sensitive Items

Every precaution must be taken to ensure the safekeeping of precious metals and sensitive items. Sensitive items are items of property that are susceptible to being taken for personal use or which can be readily converted to cash. Sensitive items must remain in a secure area when not in use. Precious metals must be locked in a safe when not in use. Changes in form, including extraction from the original product, must be according to the terms of the contract or grant.

4. Inventory Control and Reporting

The Property Accounting Department is responsible for overseeing the control of property assigned to University departments with a cost over $5000 or certain computer equipment such as laptops, desktop workstations, and tablets. The Property Accounting Department maintains inventory records, mails property tags to departments, and provides reports and information from equipment inventory records. They also maintain financial records on property. Departments must ensure property tags are on all inventoried property. Departments are responsible for maintaining control and internal records on all equipment items that are not overseen by the Property Accounting Department. 

4.1. University Equipment Inventory

The Property Accounting Department maintains the University Inventory System, a database containing information on each item of property valued over $5000 and certain computer items such as laptops, desktop workstations, and tablets. The following information is maintained on the inventory database for each item of equipment:

• UNM identification number (per property tag)
• name or description of item
• manufacturer, model number, and serial number
• reference number, index number used for purchase, and fund code
• department name and location where equipment is assigned
• acquisition and assigned date to current department (if different)
• cost
• availability code (available for use elsewhere, used in the current department, surplus, not usable in current condition, or available for shared use)
• government code (designates government-owned equipment)
• source of acquisition
• disposition record

The Property Accounting Department forwards to the department a report identifying specific item(s) as having been recently acquired by the department. Property tags are included with the report and the department is responsible for placing the tags on the item(s) in a location that is easily identifiable. The report must be completed by the department and returned to the Property Accounting Department within thirty (30) days after receipt of the report. The report will supply Property Accounting with required information, such as location of equipment and serial numbers, that will assist in maintaining accurate inventory records.

4.2. Physical Inventories

New Mexico State Law Section 12-6-10 NMSA, as amended by Chapter 303, Laws of 1983 and House Bill 1074, requires The University of New Mexico to conduct a physical inventory of all property valued over $5000 annually. The annual physical inventory also provides departments with an accurate inventory of property assigned to the department.

4.2.1. Each year, the Property Accounting Department distributes to departments a listing of the department's equipment, as currently reflected on the University inventory. Instructions, an Asset Adjustment form, a form for identifying federal property on loan to the University, and a Certification Statement are also distributed.

4.2.2. Department administrators are responsible for completing a physical inventory and returning all forms to the Property Accounting Department by the specified deadline. The department should retain copies of inventory documents.

4.2.2.1. Physical Inventory of University Art Collections

Each gallery and  museum at the University is required to conduct a physical inventory of all University art collections on an annual basis.  A Certification Statement will be distributed to the galleries and museums and must be submitted along with the physical inventory listing to the Property Accounting Department by the specified deadline. 

4.2.3. The Property Accounting Department uses the certified inventories to make adjustments and corrections to the inventory.

4.3. Adjustments to Inventory

Changes in a department's inventory should be reported to the Property Accounting Department as they occur throughout the year. The Asset Adjustment form or the Request for Disposal of Surplus Property form is used to report additions to or deletions from the department's inventory. This form may also be used to request that property be tagged.

4.4. Assistance from the Property Accounting Department

Departments may request assistance from the Property Accounting Department to affix the property tags and complete the report for a fee. A representative will come to the department acquiring the property, inspect the equipment, affix property tags, and record all identifying information. If a department requests assistance, or is unable for any reason to complete their annual physical inventory or to complete tagging of newly acquired assets, the required inventory and tagging will be completed by the Property Accounting Department and the department will be invoiced at the current rate per hour.

5. Disposition of Property

When an item of property is no longer useful to a department, it may be transferred to another University department, traded in on new equipment, or disposed of through the University Surplus Property Department. The department that is transferring, trading in, or disposing of the property is responsible for completing an Asset Adjustment form or the Request for Disposal of Surplus Property form and submitting it to the appropriate office.

5.1. Interdepartmental Transfer of Property

When equipment is transferred between University departments, no change is made in the recorded value of the equipment. The department transferring the equipment must report the transfer to the Property Accounting Department on an Asset Adjustment form.

5.2. Transfer of Assets to Another Institution

Equipment purchased with funds from contracts and grants administered by the University legally belong to the University of New Mexico. If a principal investigator transfers to another institution, in general, research grants will transfer with the principal investigator. However, contracts and grants for public service or training projects will usually remain at the University. Guidelines within the contract or grant will specify the procedure to follow if the assets are to transfer with the grant. Any equipment not officially transferred with the grant remains with the University.

5.3. Trading In Property

If a department wishes to trade in an item of property on the purchase of a new item, the department should contact the University Purchasing Department for approval. The Purchase Requisition should identify the item to be traded in, including a full description, manufacturer, serial number, and University identification number (per property tag). The department trading in the property must send an Asset Adjustment form to the Property Accounting Department. These procedures also apply to upgrades of equipment.

5.4. Cannibalization of Equipment

When an item can no longer be used for the purpose for which it was acquired or cannot be economically repaired and its components or parts are usable in a like item of equipment it may be desirable and advantageous to cannibalize (dismantle) an item of property. After cannibalization, the inventory control tag must be turned in to Property Accounting with a completed Request for Deletion of Assets form. Components that are not used should be sent to the Surplus Property Department.

5.5. Works of Art, Historical Treasures, and Special Collections

Any funds received from the sale of works of art, historical treasures, or special collections must follow the UNM Board of Regents' policies and procedures related to accessioning (adding) and deaccessioning (removing) of such objects. In general as these collections are held for public exhibition, education, or research in furtherance of public service rather than financial gain, the proceeds will be used to further these goals and objectives.

5.6 Government Property

If the government equipment is no longer being used, the department must contact the Property Accounting Department.

5.7. Disposal of Surplus or Obsolete Property

Property to be disposed of (not traded in on new equipment or transferred to another University department) must be sent to the Surplus Property Department. A department that has property that is not being used should contact the Surplus Property Department. The department should complete and submit the Request for Disposal of Surplus Equipment  Property form. For more information refer to "Acquisition and Disposition of UNM Surplus Equipment" Policy 4610, UBP.

 5.8. Loan of Equipment to a Non University Entity

All requests to loan University property to a non University entity must be submitted for approval to either the University Associate Vice President for Financial Services or the HSC Financial Services Division. The request should describe the property in detail and include a statement justifying the proposed loan of the property.

5.9. Hazardous Materials

If hazardous or dangerous materials are to be sold after use, SHEA SRS must be consulted first.

5. Related Links

"Gifts of Tangible Personal Property" Policy 7110, UBP
"Casualty and Liability Insurance Claims" Policy 6150, UBP
Asset Adjustment Form
Request for Disposal of Surplus Property Form
Request for Deletion of Assets Form
"Acquisition and Disposition of UNM Surplus Equipment" Policy 4610, UBP

Comments may be sent to UBPPM@UNM.edu
http://www.unm.edu/~ubppm