The Texas A&M University System

Chapter 3: Acquisitions

Gifts

Members of the A&M System receive furniture, equipment, works of art, etc. as gifts. These items, usually referred to as noncash gifts, become property of the Member upon formal acceptance. System Regulation 21.99.03 (Gifts, Grants, Loans and Bequests) should be followed when accepting such gifts. The Property Manager should be notified in writing of the acceptance of a gift that needs to be inventoried. The gift will be given an inventory number and will be tagged, if possible. If tagging or marking is not possible, an inventory number will be "assigned" for the item.

Equipment acquired through a donation must be recorded at its estimated fair market value on the date of acquisition. The method used should be based on a reasonable assessment. This method must be fully documented and maintained on file in accordance with State Comptroller policies and procedures. The method used to establish the appraised value must be reported to the State Property Accounting System.

U. S. Government Surplus Property

Under existing U. S. Government Regulations, the General Services Administration is responsible for donations of U. S. Government surplus property to the State agency responsible for distribution of such property within each State. In Texas, the allocations of this property are made to the Texas Building and Procurement Commission.

Unless otherwise indicated in the transfer documents, equipment acquired from U. S. Government surplus property sources becomes A&M System Member property upon acceptance by the department. If the unit value is $5,000 or more, the item will be assigned a property number, tagged, entered on the acquiring department's inventory, and controlled the same way as any other equipment item.

The provisions under which this property may be transferred to Members of the A&M System include the following:

The property transferred is usable and necessary for educational purposes, or public health purposes, including research in this State, and is required by the applicant for its own use in the State to fill an existing need and is not being acquired for use outside the State, for sale or any other use or purpose.

Funds are available to pay the costs of care and handling incident to donation, including packing, preparation for shipping, loading and transporting such property.

The property shall be placed in use within one year of receipt and shall continue in use for one year from the date the property was placed in use. There shall be a period of restriction which will expire after property having a single item acquisition cost of $5,000 or more and passenger motor vehicles, regardless of cost, have been used for the purpose for which acquired for a period of 18 months from the date the property was placed in use (40 US Code 484).

Inventory records pertaining to property transferred must be maintained by the donee institution in the same manner as that of other properties belonging to the donee institution.

The Texas Building and Procurement Commission has the right to refuse violators of these provisions from further participation in the Donation of Federal Surplus Personal Property program.