Chapter 2: Assignment of Responsibilities for Equipment Management
A&M System Members are responsible for the accurate and timely reporting of all equipment in their possession. Members are also responsible for assuring the accuracy of all statements of financial condition relating to equipment.
Responsibility of Agency Head
General
The Agency Head is ultimately responsible for the custody and care of all equipment in his Member's possession. For purposes of equipment management, Agency Head refers to the Chief Executive Officer of each A&M System Member.
The Agency Head is responsible for assuring the accuracy of all statements of financial condition relating to the Member's property and evaluating the adequacy of inventory controls placed on equipment. If a Member wishes the assistance of the State Auditor's Office in developing internal control procedures, it should notify the State Auditor's Office directly.
The Agency Head will designate a Property Manager and inform the State Comptroller in writing, of the designated manager. This is accomplished by submitting a completed Notice of Agency Head and Designation of Property Manager form to the State Comptroller. An example of this form is shown in the SPA User's Manual. If desired, an Alternate Property Manager may also be designated on this form. An Agency Head is not relieved of responsibility for the Member’s equipment by designating a Property Manager.
Delegations
The Agency Head may delegate to the following people:
Property Manager/Alternate Property Manager
Accountable Property Officer/Alternate Accountable Property Officer
Surplus Inventory Supervisor
Surplus Procurement Officer.
Distribution of Procedures
Each Agency Head is responsible for the distribution of procedures regarding the accountability for and safekeeping of equipment maintained by the Member. All Member procedures must comply with the rules of property management and reporting as defined by the State Comptroller and this A&M System Equipment Management Manual. However, a Member may adopt a stricter policy that does not contradict State or System policy. Furthermore, it is the responsibility of the Agency Head to ensure that the Property Manager and Alternate Property Manager receive training in the rules, policies, procedures, and system operation of the State Property Accounting (SPA) System as administered by the State Comptroller.
Sale of Surplus/Salvage Property
The Agency Head or designee is authorized to sell in an orderly manner all surplus and salvage property. No property with an inventory value greater than $10,000 will be sold without the advance approval of the Agency Head. All requests for authorization for sale will include the asset number, description, date of acquisition, condition and inventory value for each item of property.
The Agency Head will insure that there are written procedures for that Member (including advance approval requirements) for requests for an authorization for sale of all other surplus and salvage property with an inventory value of $10,000 or less per item. Requests for authorization for sale of items with an inventory value of $10,000 or less but equal to or more than $1,000 will include the asset number, description, date of acquisition, condition, and inventory value for each item. Content of requests for authorization for sale of items valued under $1,000 will be at the discretion of each Member.
Loss of Property
If an Agency Head has reasonable cause to believe that a Member's equipment is missing, destroyed or damaged through the negligence or fault of an official or employee of the state, the Agency Head must report the occurrence to the State Auditor's Office and the Office of the Attorney General.
Responsibility of Property Manager/Alternate Property Manager
General
The Property Manager for each A&M System Member is responsible for the overall equipment management for the Member, including the maintenance and control of the central inventory records. Each Member must submit a completed Notice of Agency Head and Designation of Property Manager form to the State Comptroller to designate the Property Manager and his alternate (if any). An example of this form is provided in the SPA User's Manual. The Property Manager will have update capabilities for all State Property Accounting System information for the particular Member.
When a Member's equipment is entrusted to a person other than the Property Manager, the Property Manager shall require a written receipt from the person receiving custody of the equipment. This receipt shall transfer the responsibility for the equipment to the person receiving the custody of the equipment. The receipt must include a detailed list of the property entrusted to the individual, along with a statement of financial liability for loss or damage resulting from negligence, intentional act, or failure to exercise reasonable care to safeguard, maintain and service the property.
Property Managers can delegate equipment responsibility to Accountable Property Officers when the receipt process is followed. The Accountable Property Officer is typically the Department Head. Property Managers will maintain a current list of Accountable Property Officers for every department/unit under their jurisdiction. Property Managers need to ensure that the Accountable Property Officers or their Alternates are trained in issues related to equipment management for equipment under their care.
Annual Inventory
Each A&M System Member must conduct a physical inventory of its equipment each year, at a time of its own choosing. The Property Manager is responsible for coordinating this effort. When completed, the Agency Head or designee must forward a signed Certification of Physical Inventory Conducted by Agency form to the State Comptroller. A copy can be found in the Forms Section of the SPA User's Manual. The form must be submitted within forty-five days of the actual date of the inventory, but no later than twenty days after the last day of the fiscal year. In addition, each Member must report the method(s) used to verify its inventory to the State Comptroller.
During each annual physical inventory, the legibility of the inventory number should be verified. Missing or illegible labels and property numbers should be replaced or numbered before concluding the inventory process. The condition of each property item must also be evaluated during annual physical inventory.
Transfers
The Property Manager will control transfers of equipment. Transfer of equipment includes any item of equipment transferred from or to a department of a Member of the A&M System by another department within the same Member, a department in another Member, or, another agency outside the A&M System. The Accountable Property Officers, or Alternates, will be responsible for transfers of equipment to or from their departments and will submit documentation for all transfers to the Property Manager. Accountability will be maintained throughout the transfer process. Items will not be deleted from the losing department until added to the gaining department. The Accountable Property Officer or Alternate from the two departments must put this in writing first. If the transfer involves another Member of the A&M System or an outside agency, the two Property Managers need this agreement in writing also. Additionally, when transferring in an asset, the original acquisition date must remain the same in order to comply with State procedures.
Missing/Stolen Equipment
The Property Manager must follow detailed rules found in the SPA Policy and Procedures Manual when equipment is reported to them as missing/stolen, or they discover equipment to be missing/stolen. Each System Member must have a missing/stolen property report that the Accountable Property Officer, or Alternate, will fill out when the equipment is discovered to be missing/stolen. The Accountable Property Officer, or Alternate, must notify the Property Manager within 24 hours of identifying missing/stolen equipment. Missing equipment must remain on the Member's inventory through two physical inventories and/or two calendar years from the time the item is determined to be missing.
When property is found after being reported as missing or stolen, a report must be submitted to the Property Manager certifying the recovery of the equipment. The report should include the following information: asset number, asset description, location of asset, and signature of the Accountable Property Officer, or Alternate. The Accountable Property Officer, or Alternate, should prepare this cancellation report. The Property Manager will follow the State Comptroller's guidelines on the filing of State reports and proper notification of State agencies. This information can be found in the SPA Policy and Procedures Manual.
Found Equipment
Equipment found within the System which appears to have been lost, abandoned, or not under the control of any individual or System activity, will immediately be reported to the Property Manager and placed under the control of either the Accountable Property Officer of the finding department/unit or the surplus property activity serving that Member of the System. Documentation of the return to control of the equipment is required. If the item is determined to be already assigned to a department, its discovery will be reported by the Property Manager to the Accountable Property Officer, or Alternate, of that department who will make arrangements for its recovery or turn the equipment in to an authorized surplus property activity of the System.
Responsibility of Accountable Property Officer/Alternate Accountable Property Officer
General
Accountable Property Officers (typically Department Heads) are responsible for the physical possession and control of all equipment entrusted to their activities. They are under financial liability for the loss or damage to items under their control if the loss or damage results from their negligence, intentional act, or failure to exercise reasonable care to safeguard, maintain, and service the items. Accountable Property Officers are also responsible for ensuring employees are aware of their responsibilities for property. An Accountable Property Officer may appoint, in writing, an Alternate Accountable Property Officer to act on his behalf.
Designated by the Accountable Property Officer, the Alternate Accountable Property Officer performs the daily functions of equipment management for the department. While the Alternate Accountable Property Officer exercises "due care", ultimate responsibility for departmental equipment belongs to the Accountable Property Officer. Since Alternate Accountable Property Officers generally fill out the paperwork and are aware of day-to-day equipment issues, Property Managers need to train these individuals on proper equipment management procedures for property under their care.
Transfers
Transfer of equipment includes any item of equipment transferred from or to a department of a Member of the A&M System by another department within the same Member, a department in another Member, or another agency outside the A&M System. The Accountable Property Officer, or Alternate, will be responsible for transfers of equipment to or from the department and will submit documentation for all transfers to the Property Manager. Accountability will be maintained throughout the transfer process. Items will not be deleted from the losing department until added to the gaining department. The Accountable Property Officer or Alternate from each department must put this in writing first. If the transfer involves another Member of the A&M System or an outside agency, the two Property Managers need this agreement in writing also.
If research equipment is being sent to surplus or transferred out of the A&M System, the sponsored agreement should be reviewed to see if permission is needed from the sponsor. This review should be performed and documented accordingly prior to submitting the transfer form to the Property Manager.
When transferring equipment to another Member or State agency, all insignia of the releasing Member or State agency should be removed or permanently obliterated prior to delivery to the receiving Member or State agency.
Loans
All loaned inventoried equipment must be reported in the physical inventory of the loaning Member. Upon completion of the assignment or loan period, the Accountable Property Officer will assure that the equipment is properly accounted for and the documentation reflects the end of the assignment and the return of property.
Equipment may be assigned or loaned to an activity or individual for the official benefit of The Texas A&M University System only. This assignment or loan can be considered temporary (i.e., overnight or for a weekend) or long-term.
When equipment is loaned to an activity not under the control of the Accountable Property Officer, the Accountable Property Officer will require the receiving activity to execute a receipt. If property is to be or has been loaned in excess of 90 days, the loaning Accountable Property Officer should review the need for the property in that activity to determine if the property should be transferred to the borrowing activity, returned, or reported to the Property Manager as surplus.
The Accountable Property Officer should establish procedures for management of equipment that are assigned or loaned. The procedure will include the following requirements as a minimum:
- receipt for the issue and return of equipment;
- receipt specifying, if applicable, restrictions on use, requirements for special handling or operator training, and any other specific stipulations;
- identification of the loan in the department's inventory records;
- specific time limits for the loan, if known; and,
- periodic review of items on loan.
When items of equipment, such as laptops, drafting sets, and cameras, are specifically assigned to an employee for use in the employee's official duties, the Accountable Property Officer must ensure that upon employee transfer or termination all equipment assigned to the employee is returned to the department or accountable unit.
Loans of certain types of equipment require special attention due to restrictions on utilization. Accordingly, written approval of the Chief Financial Officer or the official designated to circulate and/or control research activities is required prior to loan of research equipment. The loan of equipment acquired through the Texas A&M Research Foundation will require prior written approval of the Research Foundation and be subject to the conditions prescribed by the Research Foundation.
Found Equipment
Equipment found within the System which appears to have been lost, abandoned, or not under the control of any individual or System department/unit, must be reported immediately to the Property Manager and placed under the control of either the Accountable Property Officer of the finding department/unit or the surplus property activity serving that Member of the System. Documentation of the return to control of the equipment is required. If the item is determined to be already assigned to a department, its discovery will be reported by the Property Manager to the Accountable Property Officer, or Alternate, of that department who will make arrangements for its recovery or turn the property in to an authorized surplus property activity of the System. If the department charged with control of the item can not be identified, and the item is required by the finding department, it will be entered into the inventory records of the finding department. If such item is not required by the finding department/unit, it will be entered into the inventory records of the surplus property activity for either reissue or disposal.
Surplus/Salvage
The Accountable Property Officer or Alternate is responsible for promptly identifying and reporting to the Property Manager any excess equipment under the department’s control. Once reported, the Property Manager will initiate action to transfer the equipment to a department which has need for the equipment or to the surplus property activity.
Missing/Stolen Equipment
The Accountable Property Officer, or Alternate, will notify the Property Manager within 24 hours of identifying missing/stolen equipment. In addition, a copy of the missing/stolen inventory report is to be sent by the Accountable Property Officer, within the 24-hour period, to the Property Manager.
The Accountable Property Officer will immediately initiate a formal investigation for any property not located in an effort to locate all property and/or prevent a repeat occurrence. This investigation must include the following (at a minimum):
- notify all departmental personnel of loss, and request any information known concerning the property;
- conduct a search of the department;
- identify the person responsible for the property;
- identify the date and place the property was last seen;
- identify the manner in which the loss occurred;
- determine if prescribed procedures were adequate to safeguard the property;
- recommend any revisions in procedures that might be required to assist in preventing future losses of the same type; and,
- recommend holding an individual or individuals pecuniarily liable and, if so, in what amount.
Any individual who, through misuse or neglect, causes or permits property to be lost (missing), stolen, damaged, or destroyed may be held pecuniarily responsible for the loss sustained. To determine the amount of the loss, such factors as original acquisition value, age, condition, cost of recent repairs or renovation, and estimated fair market value prior to loss or damage should be considered. If the Accountable Property Officer suspects employee theft or negligence, this must be indicated on the missing report.
When property is found after being reported as missing or stolen the Accountable Property Officer, or Alternate, will prepare, and submit to the Property Manager, a cancellation of the missing report previously submitted. This cancellation should provide the following information: asset number, asset description, location of asset, and signature of the Accountable Property Officer, or Alternate, certifying the recovery of property.
Responsibility of Surplus Inventory Supervisor
General
The Surplus Inventory Supervisor is responsible for the management of excess equipment. This individual may also be the Property Manager, the Surplus Procurement Officer, or another employee. For those A&M System Members having a separate property account for surplus property, this individual might also be the Accountable Property Officer for that account.
Surplus/Salvage
Basic procedures for disposition of equipment include the following:
- available for transfer to other departments or other System Members,
- transfer to public schools or school districts or other State agencies, or
- sold at auction.
Responsibility of Surplus Procurement Officer
General
The Surplus Procurement Officer is the official representative of the Member in all matters pertaining to the acquisition of surplus property. The Texas Building and Procurement Commission will be provided the name and mailing address of the designated Surplus Procurement Officer.
Transfers
Property held in trust cannot be transferred without the approval of the owning agency or entity. If property is U. S. Government surplus property, the Surplus Procurement Officer is responsible for coordinating and approving the transfer for that Member.
Responsibility of Employee
General
Each state employee is responsible for using state equipment only for state purposes and to exercise reasonable care for its safekeeping. The term "reasonable care" means that, at a minimum, steps are taken to maintain the asset in an acceptable manner, ensure the security of an asset, ensure that an asset can be located at any time requested, and ensure that the person responsible for the asset is known. At no time should state property be used for personal gain.
