Management of university property and government property for which the university
is responsible.
Operation of the Property Accounting Department.
Definitions
Property - Equipment, material, supplies, land, land improvements, buildings or building
improvements purchased with any funds administered by the university, acquired from
the State Department of Facilities Construction and Management or bequeathed or contributed
to the university.
Government Property - Property owned or furnished by the federal government or acquired
by the university with federal funds under the terms of a contract or grant for which
the federal government retains title.
University Property - That property to which title is vested in the university whether
purchased with university funds or acquired by bequest or gift.
Surplus Government Property - Property determined to be excess by the state or federal
government which is made available to the university for purchase or as a gift.
Excess University Property - University property that is unusable or no longer required
by the university.
Real Property - Land, buildings and related improvements purchased with university
funds, bequeathed or donated to the university.
University Funds - Funds administered by the university without regard to source of
such funds.
Hazardous Materials - Property containing substances that are identified as hazardous
by federal and/or state laws and regulations and/or by university policies and Procedures
as administered by the Environmental Health and Safety Department.
Retirement/Transfer Form - An official University document that is used to transfer
property/equipment from one department to another and/or to retire property/equipment
from a department's inventory records. The Retirement/Transfer form may be obtained
from the Property Accounting Department or University Surplus and Salvage Department.
Insurable Equipment - Equipment having an acquisition or donated value between $1,000
and $4,999 and a useful life in excess of one year.
Capital Equipment - Equipment having an acquisition or donated value of $5,000 or
more and a useful life in excess of one year.
Policy
Inventory Records - The university will maintain inventory records on all property,
including real property, which has an acquisition or donated value of $1,000 or more,
has a useful life in excess of one year, and meets any of the following criteria:
University property.
Government property.
Loaned property that is borrowed by the university from another university or from
an off-campus entity.
University or government property for which the University of Utah is accountable,
which is on loan to another university or offcampus entity.
Reporting Requirements of University Acquired Property
It is the responsibility of each department or entity which acquires, holds, or disposes
of university and government property to ensure that such property is:
Properly reported when acquired.
Properly inventoried and safeguarded.
Properly reported at time of disposal.
When expenditures for government and university property are recorded in the accounting
system, the Property Accounting Department shall prepare and send inventory tags to
the cognizant departments. Departments shall attach the inventory tag to the property,
record the location on a form provided by Property Accounting, and return the form
to Property Accounting within 30 days.
The Development Office shall forward a "Gift/Private Grant Acceptance Report" to Property
Accounting when property is received by gift or bequest.
Departments must report intent to fabricate or construct property, including buildings
or building renovations, to Property Accounting at the beginning of the project. Such
intent should be indicated on a "Notice of Intent to Fabricate" form. The form requires
the approval of the Office of Sponsored Projects and Property Accounting. When properly
approved, the fabrication project shall be assigned an asset number, which must be
indicated on all procurement documents used for that project. When the fabrication
project is complete, Property Accounting shall be notified and will send an itemized
list of the payments applied to the department responsible for fabrication or construction.
The department is responsible to correct any discrepancies.
All proposed purchases of property having a per item acquisition cost of $5,000 or
more are subject to screening Procedures to determine if, in lieu of purchasing new
property, functionally equivalent property is available within the department or on
campus (see Policy 3-045).
Historical cost is the basis for valuing university and government property. Historical
cost is the cash or cash equivalent price of obtaining the property and getting it
ready for its intended use, including freight charges, installation costs, etc. For
land and buildings it includes purchase price, closing costs and all fees and other
costs to ready the land and/or building for its intended use.
Property donated to the university is recorded at its fair market value at the time
of donation.
Property received in an exchange (trade-in) should be recorded at its fair market
value.
All requests to federal agencies for property must be made through the Office of Sponsored
Projects.
The university must maintain records for all property purchased under research and
training grants and contracts and comply with all regulations relating to such property.
This obligation to the awarding agency continues until the project is terminated or
until the expiration of the useful life of the property, whichever is required by
the awarding agency.
If, during the period of performance under an award, the account executive leaves
the university and a new account executive is appointed, the obligation of the university
remains in force and becomes the responsibility of the new account executive.
Status of title to property acquired under a grant or contract shall be determined
at the time of acquisition. Generally, title is either:
Retained by the granting agency.
Vested in the university at the time of acquisition.
Temporarily vested in the university, with the agency reserving the right to transfer
title to:
The agency.
Another institution, if the principal investigator transfers.
The university on a permanent basis, generally upon completion of the project.
Additions to Existing Equipment
In order to have uniformity in accounting for additions to capital and insurable equipment,
the following guidelines shall be followed:
"Repair" or "maintenance" expenditures shall be recorded as a current expense regardless
of the amount. A repair or maintenance expenditure is one that maintains the property
at its existing level or existing life of service, such as painting, repair, miscellaneous
parts, and normal servicing.
In general, additions to equipment costing less than $1,000 shall not be recorded
as equipment. An exception occurs when the original equipment and the addition are
purchased within a 12 month period, the addition becomes an integral part of the original
purchase (to produce a single functional unit), and the addition significantly extends
the useful life or substantially increases the value or capability of the equipment.
If the result of the addition increases the aggregate cost of the equipment, but the
total is still less than $4,999.99, the addition shall be recorded as insurable equipment.
If the result of the addition increases the aggregate cost to $5,000 or more, the
addition shall be recorded as capital equipment and the original purchase cost should
be transferred to a capital equipment account by journal entry.
Accounting for Component Unit Property, Modular Furnishing and Grouped Property
When it is difficult to determine whether component unit property, module furnishings
or grouped property should be recorded as insurable or capital equipment, the following
guidelines shall be followed:
A property grouping is considered a single property item if the items comprising the
group cannot function independently. If such functional group or operational unit
costs $1,000 or more, the total cost shall be recorded as either insurable or capital
equipment, depending on the total cost.
If individual pieces of a component unit, modular unit or grouped property can function
independently, each piece costing $1,000 or more shall be recorded as either insurable
or capital equipment, depending on the total cost.
Computer Systems and Software
A computer systems (i.e., C.P.U., monitor, printer, software and accessories) purchased
as a package shall be recorded as either insurable or capital equipment (depending
on the total cost) if it costs more than $1,000. Software packages purchased separately
or developed internally shall not be recorded as equipment regardless of cost. All
costs incurred for internal development of systems or software shall be recorded in
the applicable non-equipment expenditure account (i.e., personal services, supplies,
etc.).
Library Books
A detailed inventory record of books and other holdings of the various university
libraries shall be maintained by the cognizant library administration. Additions will
be recorded at cost as of the date of acquisition or at the fair market value at the
date of donation. Donated library materials with an estimated value of $5,000 or more
shall be appraised by an independent party to determine the value to be recorded.
Total additions and deletions during the fiscal year ending June 30 shall be reported
to and recorded by the Property Accounting Department annually. Deletions will be
recorded based on an annually revised average cost per volume.
Transfers of Property
All transfers of property acquired with federal funds must be approved in advance
by the appropriate government agency through the Office of Sponsored Projects.
Property acquired under grants or contracts from agencies which retain title to or
reserve the right to transfer property will be transferred when so instructed by the
awarding agency. This policy does not apply to supplies and other materials except
in isolated and exceptional cases.
When an account executive transfers to another institution and the awarding agency
transfers related project(s) to the new institution, or awards a new contract or grant
at the new institution under which the original project will be continued, the university
usually retains all grant-acquired equipment to which it has obtained title. However,
if the university has no need for the equipment, and it is critical to the project
and will relieve the granting agency from purchasing duplicate equipment, the vice
president for research may authorize transfer of the equipment to the new institution.
When property is obtained for multiple grant use, it is the policy of the university
to consider property eligible for transfer only if it derives the majority of its
use from the grant being transferred and was originally purchased from that grant.
University property may only be transferred to another institution if the university
has no need for the equipment, the new institution agrees to purchase the equipment
at a fair market value established by University Surplus and Salvage, and the approval
of the cognizant vice president over the department transferring the equipment is
obtained.
University property may be transferred from one university department to another,
with the agreement of both departments.
Disposal of Property
It is the policy of the university to dispose of excess university property in a manner
that will maximize the return or benefit to the university, consistent with laws governing
state property.
Departmental sale of university property, except to another university department
or through the University Surplus and Salvage Department, is prohibited.
The University Surplus and Salvage Department is responsible for the disposal of excess
university property in accordance with Procedures outlined in paragraph III.S. of
this policy. The University Surplus and Salvage administrator assists departments
in the disposal process.
Excess university property received at the University Surplus and Salvage Department
generally will not be held longer than 60 days. If property is determined to be not
saleable, it may be cannibalized, scrapped or discarded if determined to be of no
value by University Surplus and Salvage.
Listings of property available at University Surplus and Salvage are located on the
University of Utah web page. This information is updated periodically.
Hazardous material disposal is coordinated by the Environmental Health and Safety
and the Radiological Health Departments and specific Procedures on the disposal may
be obtained from Environmental Health and Safety. If hazardous material is disposed
of in a manner inconsistent with these Procedures, fines and/or penalties may be assessed
to the university. Responsible individuals or departments may be subject to fines,
penalties and possible criminal action.
Property Location, Maintenance and Use
Departments shall maintain records identifying the current location of each item of
capital equipment to allow any item to be located within a reasonable time.
Prior written approval of the cognizant department head must be obtained for offcampus
use of university or government property. Approval documents must identify the specific
off-campus location, the university property identification number, the responsible
individual and the purpose of off-campus use.
The original approval document shall be retained by the cognizant department and copies
provided to Property Accounting and the individual responsible for the off-campus
use within 3 days of moving the property offcampus. All property assigned an off-campus
location is subject to normal inventory verification Procedures.
When the property is returned to campus, the department shall notify Property Accounting
within 3 days and the Authorization to Locate Property Off-campus will be canceled.
An individual who removes property from its campus location without proper authorization
is responsible for replacing such property if it is lost, stolen or damaged.
It is the responsibility of the account executive to properly maintain government
or University property which has been entrusted to him/her. The account executive
shall, if requested, apprise the manager of the Property Accounting Department of
the condition of any government property in his/her possession.
It is the responsibility of the account executive to ensure that government property
is utilized as authorized in the contract or grant.
Security and Losses
The head of the cognizant department and the account executive are responsible to
adequately provide for physical security of property in their custody. Special precautions
shall be taken to safeguard portable and high pilferage property.
Loss, theft or destruction of university or government property must be reported within
twenty-four (24) hours of discovery to the Risk Management Department. Such loss of
property must also be reported to Property Accounting by the cognizant department
before the items can be removed from the department's inventory. The report must include
applicable inventory numbers, and in the case of theft, the University of Utah police
case number.
Only university or government property which is recorded on Property Accounting records
is insured subject to a deductible amount. In case of loss, the deductible amount
is charged to the cognizant department.
Procedure: Verification of Inventory Records
At least annually, Property Accounting will send each department a list of the capital
equipment for which it is accountable. The department shall verify the existence,
condition and location of each item in accordance with instructions provided by Property
Accounting. The department head must approve the completed inventory which must be
returned to Property Accounting within sixty (60) days, unless an extension is requested
and granted. Inventories not returned on a timely basis will be brought to the attention
of the cognizant vice president for review and appropriate follow-up.
Departments shall not be relieved of accountability for unlocated property in the
absence of diligent effort and review and approval by responsible administrators.
If an item cannot be located, the head of the department shall certify that a thorough
investigation has been made before approving the inventory listing. Approval from
the cognizant vice president must be obtained to remove unlocated items from the records.
Annual verifications will not be required for insurable equipment costing between
$1,000 and $4,999.99.
Procedure: Acquisition of Surplus Government Property - The university is eligible
to acquire surplus property offered by the General Services Administration. A surplus
government property listing, published weekly by the General Services Administration,
is available for review by account executives in the Office of Sponsored Projects.
The Procedure to obtain equipment from the list is:
Account Executive
Calls the General Services Administration Office holding the property, requesting
that the item(s) be reserved for the University of Utah.
Completes the form provided by the contracting or granting agency, references the
reservation request, obtains approval of the department head and forwards it to the
Office of Sponsored Projects.
Office of Sponsored Projects
Reviews and, if appropriate, approves the request.
Prepares, in collaboration with the account executive, the requisition and forwards
it to the contracting agency, with a copy to Property Accounting for information purposes.
Maintains a status file for and expedites resolution of all items of government property
under requisition.
Property Accounting Department
Compares receiving documents with a copy of requisition form when government property
is received by the university.
Records in the university property record the government property received at its
estimated value or value determined by the federal government, regardless of the amount
paid by the university.
Issues and distributes the appropriate property identification tag to be placed on
the property.
Procedure: Obtaining Approval to Transfer Government Property to Another Institution
Account Executive
Prepares and forwards a letter to the Office of Sponsored Projects requesting the
transfer of the property. The letter must contain signature approval of the department
head and the dean and a detailed property listing from the Property Accounting Department
showing:
The original purchase price.
A description of the property, including make and model number.
Number of the account from which the property was purchased.
Purchase order number.
University inventory number.
Location of the property.
Obtains a letter from the new institution stating that it will accept title to the
property and assume financial responsibility for packing and shipping.
Presents above documents to the Office of Sponsored Projects for processing.
Office of Sponsored Projects
Obtains written verification from the contracting agency that:
The grant or contract will be awarded to the new institution.
Authorization is given to transfer government property to the new institution.
Presents detailed request to the vice president for research for review and approval.
Prepares and transmits an approval letter to the new institution with copies to the
account executive, dean, department head, Property Accounting Department and the director
or contracting office of the awarding agency when the request to transfer title is
administratively approved.
Department Head and Account Executive
Certifies that only the approved property has been packed and shipped.
Presents a properly completed and approved retirement/transfer form to Property Accounting
along with the approval letter from the Vice President for Research.
Property Accounting
Processes retirement/transfer form retiring the property being shipped from the department
inventory.
Procedure: Obtaining Approval to Transfer/Sell University Property to Another Institution
Account Executive
Prepares and forwards a letter to the cognizant vice president requesting the transfer
of the property. The letter must contain signature approval of the department head
and the dean/director as well as a detailed property listing from the Property Accounting
Department showing:
The original purchase price.
A description of the property, including make, model number and year of purchase.
Number of the account from which the property was purchased.
Purchase order number.
University inventory number.
Location of the property.
Obtains a letter from University Surplus and Salvage stating the fair market value
of the property being transferred and sold to the new institution.
Obtains the signature of the cognizant vice president authorizing the transfer and
sale of university property.
Presents a properly completed retirement/transfer form to University Surplus and Salvage
along with the approval letter from the cognizant vice president.
University Surplus and Salvage
Obtains a sales agreement from the institution purchasing the equipment stating that
it will purchase the property and assume financial responsibility for packing and
shipping.
Inspects the property items to be sold before packaging and authorizes shipping if
description of the property to be shipped matches approved list.
Presents retirement/transfer form along with approval documents to Property Accounting
for processing.
Procedure: Transfer of Property Between Departments
Account executive submits a properly completed and approved retirement/transfer form
to Property Accounting within 5 days of the transfer.
If a transfer is temporary (less than 3 months), submittal of a transfer form is not
required.
Procedure: Cannibalization of Property
When property is cannibalized or disassembled, the cognizant department must submit
within five (5) days a properly completed and approved retirement/transfer form to
Property Accounting.
Procedure: Transfer of Excess University Property to University Surplus and Salvage
Upon notification by a department of availability of excess university property, University
Surplus and Salvage will arrange for the transfer of such property.
Generally, University Surplus and Salvage will dispose of excess university property
as it determines is appropriate, unless the transferring department specifically requests
that it be consigned to University Surplus and Salvage which provides a potential
selling price for each item.
University Surplus and Salvage will periodically determine if the initial proposed
selling price needs to be reduced or if the asset should be discarded. If requested,
the transferring department will be informed of all such proposed reductions and/or
disposals.
University Surplus and Salvage will retain a percentage of the selling price on items
sold to help defray it's costs of handling the disposition of the surplus items. A
schedule of the percentages retained by University Surplus and Salvage is available
upon request. Approval by the Vice President for Administrative Services, or his or
her designee, is required when establishing or changing the percentage charged by
University Surplus and Salvage.
When excess university property needs to be transferred to University Surplus and
Salvage, the cognizant department shall prepare a properly completed and approved
retirement/transfer form to be available at the time the property is to be picked
up by University Surplus and Salvage.
The form must include applicable inventory numbers. Departments cannot be relieved
of accountability for items unless inventory numbers are correctly identified on the
form. At the time of pick up, University Surplus and Salvage will sign the retirement/transfer
form and give a copy to the transferring department.
Procedure: Disposal of Government Property
The account executive shall notify the Office of Sponsored Projects when government
property becomes excess to the contract or grant for which it was provided, or reaches
the end of its useful life.
The Office of Sponsored Projects shall request instructions from the contracting agency
and acts on the instructions received.
Procedure: Disposal of Excess University Property by the University Surplus and Salvage
Department
The University Surplus and Salvage Department shall dispose of excess university property
in the following manner:
Property shall first be offered to university departments at a cost determined in
accordance with this policy.
Property shall next be offered to other state schools or governmental agencies at
a cost determined by the University Surplus and Salvage Department. A listing of surplus
property available for external sale will be submitted to the State Division of General
Services each month by University Surplus and Salvage. In addition University Surplus
and Salvage will submit to the State Division of General Services at least fifteen
(15) days in advance of a specific sales event a listing of property for sale at that
event.
Property shall next be offered to the general public at a price determined by the
University Surplus and Salvage Department and consistent with Board of Regents' policy
regarding competition with the private sector. Applicable sales taxes will be collected.
If property has not been sold within 60 days, items will be dismantled for useful
components, sold for salvage value, scrapped or otherwise discarded.
Procedure: Trade-in Offers on Purchase of New Property
If a written trade-in offer is made to the University on the purchase of new equipment,
Procurement & Contracting Services will notify the University Surplus and Salvage
Department of such offer. The University Surplus and Salvage Department will determine
if the offer appears fair and reasonable. If a greater return can be realized by the
university through public sale, University Surplus and Salvage shall take possession
of such property and credit the releasing department with no less than the offered
trade-in value.
Procedure: Sale of Vehicles and Items Valued at $5,000 or More to the Public
The University Surplus and Salvage Department will advertise and receive sealed written
offers for vehicles and items with an expected sale price of $5,000 or more. The date
and time of the sale will be included in the advertisement and all offers will be
held until the time of the public opening. The period for receiving offers will be
a minimum of fourteen (14) days after the publication of the advertisement. If the
highest bona fide offer has met or exceeded the minimum acceptable price and has met
the conditions set forth for the sale, a sales agreement will be entered into, if
deemed appropriate, and the property sold. If the highest offer does not meet or exceed
the minimum acceptable price, further offers may be solicited until the property is
sold. The University Surplus and Salvage Department may hold, at its discretion, periodic
public auctions to dispose of surplus property.
Rules, Procedures, Guidelines, Forms and other related resources
