The Texas A&M University System

Chapter 4: Inventory Control

Tagging of Inventory

All Members' equipment shall be permanently marked as property of the State of Texas. Markings shall be considered permanently affixed when the marking can be removed only through considerable or intentional means.

Each item tracked on a unit basis must be assigned a unique individual property inventory number. Members may not place a new piece of equipment into service with a property inventory number previously assigned to another piece of property, even if the previous item has been deleted from the inventory system.

An inventory number is to be assigned and permanently affixed to each item of equipment whether received by a central receiving activity or directly by a property account prior to the item being placed in use or released outside the initial receiving activity. For an item received by a central receiving activity for a property account, the inventory number will be assigned and permanently affixed by the central receiving facility prior to the item being delivered or released to the property account. When central receiving assigns and permanently affixes the inventory number, the numbers will be recorded on the delivery document transmitted to the department or unit. For an item received directly by a property account, the inventory number will be assigned by the Property Manager and permanently affixed by the activity prior to the item being placed in use.

The inventory number must be permanently affixed to an item promptly upon receipt and acceptance but not later than ten calendar days after receipt, unless prevented by unusual circumstances. Examples of acceptable reasons for not accomplishing such within the ten calendar days would be that the item had to be assembled, calibrated, or connected to a system before it could be inspected properly and placed in use.

Members may choose to track equipment using appropriate labeling methods as long as they meet guidelines established by the State Comptroller in consultation with the State Auditor's Office. Both "Property of the State of Texas" labels and property number labels must be placed in a highly visible position on the asset, where it is easily accessible during an inventory. Members must locate labels in a consistent manner, by equipment category, in order to facilitate physical inventories.

Securing of Assets

Each Member is responsible for ensuring that equipment is tracked and secured in the manner that is most likely to prevent the theft, loss, damage, or misuse of assets. Each Member should be diligent to ensure building security at all times. The Member should ensure that individuals in charge of security apprise the Property Manager of violations or changes to security that could subject equipment to misuse or theft.

Members must know where all assets are located at all times, should have a method for locating any inventory item whether on-site or off-site under their control, and should be able to locate a given item upon request.

Equipment that is checked out to employees must be used for state purposes only, and the responsibilities of stewardship and care of the property are maintained at the Member level. Each Member must have a written policy about checking out equipment and require each employee to sign for any property when it is checked out. Please refer to the section on Loans under the Accountable Property Officer's responsibilities in Chapter 2 for more detailed information.

The State Auditor's Office and/or the Office of the Attorney General will, at the request of a Member, provide advice about procedures for the securing of assets. All Member procedures should be based on good business practices.

Storage

The primary concern with storage is providing security from theft or pilferage, and protection against the elements, while maintaining the equipment in a serviceable condition and accessible location. The placement of equipment in storage does not normally relieve a Property Manager or an Accountable Property Officer of the responsibility for proper care, maintenance, and utilization of equipment. The only exception will be when an item is placed in a central warehouse type of storage which is under the jurisdiction of another Property Manager. In this case, the Accountable Property Officer will retain accountability for the equipment while the person in charge of the central warehouse facility, having receipted the equipment, assumes responsibility for the care and safeguarding of the equipment and, unless there are agreements to the contrary, for whatever maintenance is required for the equipment while in storage.

Utilization of Assets

Federal equipment issued to or provided to a System Member is to be utilized in the manner for which it was originally furnished and authorized unless specific written exception is received from the grantor. In all cases concerning a change in utilization of equipment obtained through the Texas A&M Research Foundation, the request for change will be submitted through the Foundation to the grantor.