Property Management Overview :

Who Cares About Property? Federal Regulations 2 CFR 200 FAR 45 DFAR State of Alabama Code of Alabama 1975, Section 36-16-8 Code of Alabama 1975, Section 41-16-120 UA Polices FAR-1 Capitalization Policy PIM PIM Policy & Procedures YOU!!! There are Federal regulations, State laws and UA policies that govern how property is handled. Since UA receives funding from Federal and State agencies as well as the State of Alabama, we must comply with these and are subject to audit by any of these agencies. The University is committed to maintaining proper accountability and control over its assets. Who Cares About Property?

Who is responsible for property? The dean or department head have the ultimate responsibility to insure compliance with these property management procedures. In performing this responsibility, they 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. PIM Policy Who is responsible for property?

What is property anyway? Land Land Improvements Buildings Building Improvements Books & Maps Vehicles Machinery Equipment Works of Art/Historical Treasures What is property anyway?

What property am I responsible for? Office Equipment Lab & Scientific Equipment Tools & Machinery Recreation Equipment Kitchen Equipment Maintenance/Janitorial Equipment Vehicles Other General Equipment Capital Equipment Moveable/tangible Not permanently fastened to a bldg Does not lose its identity Value of $5,000 or above What property am I responsible for?

How do I know if it is Capital Property? Expendable Useful life > 1 year Cost > $5,000 Not permanently affixed Doesn’t lose it’s identity Account code 791XXX Useful life < 1 year Cost < $5,000 Consumable Account code other than 791XXX Example would be: Printing Machinery vs. Ink/Paper How do I know if it is Capital Property?

How is the value of my asset determined? Purchased Equipment Donated Equipment Amount Invoiced - discounts + freight + installation cost ------------------------- Value of Asset Acquisition Value as of the date of the donation. The calculation is for each item, not the total of several items. For example, if the PO is for $6,000 but 6 computers are being purchased then each item would be less than $5,000. As opposed to the PO is for $6,000 but one computer is being purchased then the one computer would be over $5,000 and would be tagged. Thus the reason there might be similar assets in your department, one that’s tagged and one that isn’t. How is the value of my asset determined?

What is the role of my Department ? Purchasing Tagging Inventory Transfer Relocation Loan Missing Lost/ Stolen Disposal What is the role of my Department ?

Assets can be purchased either via PO, Pcard, or Supply Store– although Supply Store purchases are rare—it does happen now that they sell Apple products. When using your Pcard please put detailed info in the description such as quantity of items, etc. In the example above, a rainfall simulator is being purchased. The asset itself costs $5,180.84 then there’s freight that brings the total to $5,677.26. This meets the definition of a capital asset. However, there is something wrong with this purchase. It wasn’t coded to a 791 account code. So in this situation the buyer would be asked to recode this purchase to classify the asset correctly. If this were a Pcard or Supply Store transaction the department would be asked to take the necessary steps to code the purchase to the correct account code. If an item is being traded in the asset info should be put in comments of the purchase of the new asset. A transaction form should also be processed and sent to PIM so that the asset that was traded can be removed from inventory. This keeps the asset records up to date and it also helps with inventory next year by ensuring it doesn’t appear on your list for the next inventory period. Purchasing

Reports from PO’s/BuyBama, Pcard & Supe Store, are reviewed to determine when UA departments are purchasing fixed assets. Once the asset is received and payment is confirmed a UA Tag # is assigned PIM then coordinates with your department to go to the physical location of the asset and place the tag on it. Typically the tag is placed near the serial number as shown in this picture. The tag number may also be written on the asset. In the case of a sensitive item or one whose value would be impacted by the placement of a tag, other measures can be taken to handle the tagging of those items. Tagging

In January, when inventory begins, your department will be asked to assist PIM with accessing & locating the items listed as belonging to your area. Barcode scanners will be used to read the yellow inventory tag and record the date and location that the asset was inventoried. If a barcode is in a location that cannot be read by the scanner it will be manually entered to update the information. Inventory

Once the initial inventory is complete, if there are items that could not be located, your department will be contacted to provide assistance with locating these items. Sending out emails, talking to grad students, faculty members etc. are ways you may provide assistance. Once every effort has been made to locate an asset, and it cannot be found, then a transaction form should be prepared along with a memo indicating the last known location of the asset and the efforts that were taken to find it. The transaction form along with a copy of the memo should be sent to PIM. Of course the police should be notified immediately upon discovering that an asset has been stolen. Lost/Stolen

Relocation/Loan/Transfer During the year, assets may be moved around within your department, transferred to another department, or loaned out to another entity. A Transaction Form should be completed when this occurs. By receiving notifications throughout the year PIM will have up to date information when the annual inventory starts. Also if the asset is chosen during an audit, the current location would be on file for viewing of the item. If an item is being Loaned or Transferred to a location off campus then a more descriptive address in the “To” section will be needed. This information may also be provided under the “Notes” section. A serial number and UA Tag number, if available, should be provided on the form. This aids in verification of the asset in the inventory system. It allows for proper handling of the item if purchased with grant funds. More in depth information about the transaction form can be found on the property management website http://fawp.ua.edu/propertyandinventory/. Recently the process for submitting a form has changed. You no longer need to fax a copy or send in an original –you simply email it to property@fa.ua.edu Relocation/Loan/Transfer

An item with either a silver tag or a yellow tag indicates property that’s on inventory or was on inventory at one time. A completed Transaction Form should be submitted when one of these items are sent to Surplus. State and federal law limits the means by which items can be disposed of, regardless of dollar value. Items to be disposed of should be handled by Surplus Property. (this includes items not on inventory, as well, such as office supplies, furniture, decor, etc.) Items cannot be given away, taken home, thrown away, etc. Any item that could contain hazardous material should be reviewed by Health & Safety prior to sending to Surplus. Disposal

Recycle There are several ways an item can be disposed of by Surplus: Departmental Redistribution Public Sale We have a new venue called GovDeals that hosts our sales online now Public Sales are open to everyone including UA Employees Recycle Scrap Metal Computer Vendor Paper Printer Cartridges Recycle

Please visit the other sections of our website for further information such as : Polices and Procedures The Property Manager Form The FAQ’s The Transaction Form and the additional page if needed The transaction Form Tutorial Propertyandinventory.ua.edu