• Resolution Forms
• Property Acquired
• Compliance and Utilization

• General Procedures
• Property Sales Procedures

Appendices

A Property Asset Removal Request

B 1055 Equipment Off Campus Form

C Annual Inventory Procedures

D Resolution Form to Acquire State and Federal Surplus

I. INTRODUCTION

Property Accountability Management System (PAMS Title 2-1700.00) is a centrally maintained subsystem of the Statewide Accounting Budgeting Human Resource System (SABRS) used to manage and account for the State's investment in all fixed assets (property, plant, and equipment).

At Montana State University, the various department heads are vested with the ultimate responsibility for all inventories within their departments. Property Management is a support service to the department to assure that accurate records and proper control of property are maintained. Title and ownership of all University property are with the Montana University System. Possession, use, and accountability are maintained on the department level.

Property Management and the Montana State University Internal Auditor's Office will occasionally perform unscheduled audits, and complete audits of departmental property may be performed as directorship vacancies occur. Department heads or deans may also request audits of property within their jurisdiction.

University property and equipment may be used only in the performance of University duties, and University property and equipment should not be loaned out for personal use. This is to prevent equipment from being used off-campus for other than legitimate University business. Should an occasion develop where the property will be used off-campus for legitimate University business, a written request must be made to the appropriate dean/department head by the borrower. If approved, the dean/department head should obtain a written receipt for removal of the equipment from the University premises. Forms for this purpose (Form 1055 - Appendix C) are available from Property Management. Property Management will keep copies of all receipts on file and should be notified in writing when the property is returned to the University premises.

The Montana State University is directly responsible and accountable for the acquisition, use, maintenance, movement, disposition and reporting of all property obtained with federal funds and for the maintenance and reporting of equipment provided by the Government for use on a federally funded project.  For the purposes of this policy, equipment shall refer to a) Capital Equipment which is defined as any unit item with a life expectancy of at least one year and having an acquisition cost of $5,000 or more; and b) other items having a lesser value but specifically controlled by the agency.  Shipping, taxes, in-transit insurance, and installation charges should be included under this category for new purchases, provided these costs are included in the original purchase order.

Montana State University and the State of Montana assume no responsibility for the maintenance or safekeeping of items which are the personal property of faculty and staff members. These items are on campus at their owner's risk.

II. PROPERTY MANAGEMENT METHODS

Property inventory at Montana State University is classed as either periodic or perpetual.

The perpetual fixed assets inventory is taken on a department level, as requested, or during every other fiscal year as set forth on the control schedule (PAMS Section 2-1710.40 - 2-1710.43). The perpetual inventory is updated by Property Management as acquisitions occur, and is designed to record ownership and location of capital property.

The periodic inventory is taken on a department level for those departments having stores and supplies or livestock. A physical inventory must be performed every year near June 30. Procedure for taking the annual inventory is explained in the 1984 annual inventory policy (Appendix D).

III. CAPITAL PROPERTY CRITERIA

Montana State University operates under a property accountability system mandated by the State, effective July 1, 1980. This Property Accountability Management System (PAMS) is a sub-system to SABHRS, and is used as a means to record capital property and generate the Investment in Plant entry into SABRS for our financial statements. In addition, PAMS will continue to serve the needs of Montana State University in the areas of capital property management asset utilization, and cost accountability.

Property is capitalized and included in PAMS only if the following requirements are met:

1. The property must have a unit cost (or estimated value for donated items) equal to or greater than $5,000 or more, and

2. The estimated useful life of the item must be greater than one year, and

3. The identity does not change with use, and

4. The property is of a non-consumable nature, and

5. The unit must be identifiable and separately accounted for.

IV. CAPITAL ACCESSORY PURCHASES

Often a piece of equipment is purchased which is to be used in conjunction with a capital item, but which could not be used only by itself. If any equipment is purchased which is to be used only with a specific piece of capital property, if it cannot be used by itself, and if it is not a replacement part, then it is deemed a capital accessory. Capital accessories will not receive new property numbers, but will assume the same property number as the capital item they go with. The account code for capital equipment accessories is 63199. The department should list the property number of the item that the accessory is used with in the lower left box of the BPA.

As stated on each requisition, it is the responsibility of the requisitioning department to provide the Purchasing Department with the information to identify the capital item with which the capital accessory is going to be used. The property tag number of the capital item should also be noted in the lower right section of the BPA when the invoice is processed for payment. 

V. ADDING PROPERTY TO PAMS

The BPA, invoice and purchase order copy is used to add new property acquisitions to a departmental inventory on Banner fixed assets. For all University acquisitions of capital property, a State of Montana identification tag is assigned by Property Management at the time that an invoice/BPA is processed for payment, when a donated gift is received, or when a capital item is acquired by another method. Department accountants can query new capital equipment information on the Banner fixed assets (Call Property Management X5504 for security access). Information on department's capital equipment inventory can be accessed on the SAIS web site.

VI. INFORMATION REQUESTED ON INVOICE/BPA

When capital property is received and accepted by the requisitioning department, a Business Payment Authorization is prepared by the department. Depending on which index number it's paid from, the BPA is sent with an invoice to the Business Office, Grants and Contracts or AES/CES accounting. It is the responsibility of the requisitioning department to note on the invoice or in the lower right box on the BPA, the following information:

1. The building where the property is to be principally used, person using the equipment, and room number, if known.
    

2. The model number and serial number, if applicable, if not already noted on the invoice.
    

3. Changes in color, size, quantity, or description not shown on the purchase order.

When the Purchasing Department receives the BPA with the invoice, a copy of the purchase order is made, and everything is then forwarded to Property Management. A State of Montana identification tag number is then assigned. The assigned tag number is then entered into the Banner fixed assets, using the information from the purchase order, the invoice, and the BPA. The BPA and supporting invoices are then forwarded to Claims in the Business Office for payment. A copy of the purchase order, BPA, and invoice is used to add the capital property acquisitions to the PAMS records and kept on file in the Property Management Office.

VII. IDENTIFICATION OF PROPERTY

One unique number is assigned to each specific piece of capital property. Once that number is assigned, it remains on record until deleted, and it is never assigned again. The property number that is assigned for each piece of property is noted on the corresponding BPA before the BPA and invoices are taken to the Business Office to be paid. No invoices for capital property or BPA's with an object code of 63199 or 63106 will be paid until they are cleared through Property Management.

UNTAGGABLE PROPERTY

Property which, due to structure, shape, or precision, cannot be tagged should be marked in some other easily identifiable manner. Whenever possible the property number will still be identified on the item by some means such as decal, indelible ink, paint, or electric engraver. The unused property tag is taped to the file copies in Property Management when it is filed.

MISSING TAGS OR UNTAGGED ITEMS

It is possible that an item's original tag is missing or that it was not initially tagged. The department should note sufficient information such as description and serial number so that a research of property records can determine if the item needs to be tagged or retagged.

MINOR PROPERTY

Minor property consists of items having a normal useful life of one year or more, can be separately accounted for, and has a unit cost of at least $1,000 but less than $5,000. 

Effective July 1, 2001 MSU Property Management raised the equipment capitalization level from $1,000 to $5,000 in keeping with revised state policy and regulations. At that time, departments were delegated with the responsibility to keep and maintain their minor equipment inventory. Also since July 1, 2001 departments need to tag new equipment costing $1,000 to $5,000 and add these items to their minor equipment inventory spreadsheet. As these equipment items are transferred or disposed of, notations on the spreadsheet should be made as to where they've been transferred to or reason why they were disposed of. Departments need to keep this minor equipment inventory current for internal control, insurance and management purposes, and to show good stewardship of accountability of state funds. These items are also subject to audit, both internal and state.

Minor equipment tags can be requested from Property Management (X5504). These tags have a blank area for departments to devise their own numbering system. The minor equipment inventory list should be organized by property tag number. When desirable and feasible, minor property that has a unit cost of less tan $1,000 may also be tagged and labeled with the adhesive backed tags.

The government often furnishes property to the university to perform specific contract requirements. This property can "ONLY" be used on the contract or grant it is intended for unless otherwise stated. Accurate records need to be maintained as to the use, location, and maintenance.

Please notify Property Management when Government Furnished Property has been received. Property Management will then tag the property if capital (cost $5,000 or more) or furnish minor equipment tags (cost $1,000 to 4,999) to the department to tag and report to Grants & Contracts.

Never trade, cannibalize, or dispose of property purchased with government funds without prior approval from Property Management. Contact Property Management for procedures to dispose of inoperable or unwanted property.   

VIII. GOVERNMENT FURNISHED PROPERTY, INCLUDING U.S.D.A.

Government Furnished Property
The government often furnishes property to the university to perform specific contract requirements. This property can "ONLY" be used on the contract or grant it is intended for unless otherwise stated. Accurate records need to be maintained as to the use, location, and maintenance.
Please notify Property Management when Government Furnished Property has been received. Property Management will then tag the property if capital (cost $5,000 or more) or furnish minor equipment tags (cost $1,000 to 4,999) to the department to tag and report to the Office of Sponsored Programs.
Never trade, cannibalize, or dispose of property purchased with government funds without prior approval from Property Management. Contact Property Management for procedures to dispose of inoperable or unwanted property.
PROPERTY ACQUIRED THROUGH U.S.D.A.
The USDA retains title to all equipment acquired through their agency. When you need to surplus or dispose of any of these items, process the same surplus PAMS-3 or disposal PAMS-4 forms to the Budget/Fiscal Analyst in either the Dean of Agriculture or Extension Director's Office (depending on which office was used to bring in the USDA excess).  ALL USDA disposals need to go through the area utilization officer for review and disposition, so never attempt to dispose of anything until it is cleared and approved.
 

1. Government Property - All property where the title is retained by the government, purchased with government funds, or furnished by the government. Such property shall be classified as follows:
    

1. Government-Furnished Equipment: Equipment owned by the Government but furnished to the University for use under a federally-funded project. Transportation and installation costs are not considered as part of the unit price for this purpose. Normally, the unit price of government-furnished equipment is provided on the document covering shipment of the property.

2. Contractor-Acquired Equipment: Equipment acquired by the University with funds provided by the Federal Government.

3. Contractor-Fabricated Equipment: Special purpose equipment that is assembled or fabri­cated and that results in an article of capital equipment. The fabricated unit consists of items or assemblies of parts that are interconnected and interdependent so as to become a new functional entity for a special purpose.

4. Government Material — Government property which may be incorporated into or attached to an end item to be delivered under a contract or which may be consumed in the performance of a contract. It includes, but is not limited to, raw and processed material, parts, components, assemblies, and small tools and supplies.

2. Management of Government Property

Written procedures for the management of government property are included in this manual.   The manual is a collaborative effort of the Office of Sponsored Programs, Purchasing, and Property Management to establish and maintain a property control system for the control, use, maintenance, repair, protection and preservation of government property in the custody of Montana State University, its agents, and its subcontractors.  The manual addresses the 15 functional areas of government property administration as prescribed by DoD 4161.2-M, the DoD Manual for the Performance of Contract Property Administration.

 Property Management is the primary institutional contact for matters relating to government property management.  Property Management works closely with the PIs/Departmental Administrators, the Office of Sponsored Programs, and Purchasing to facilitate effective property management at Montana State University. 

3. Acquisition of Government Property

Government property may be acquired as follows: (1) by purchase (through the University's Purchasing Department), or (2) by government surplus, or 3) by fabrication as an end product.  

1. By purchase - The policy and procedure governing all University purchasing shall govern the acquisition of property by purchase for use under any research and development contract. It shall be the responsibility of the Principal Investigator to see that this procedure is followed as well as obtaining the sponsor's approval for the purchase if such is required. Preacquisition screening prior to purchase is required if DOD or NASA funds are used.

2. By Government-Approved Transfer from government surplus - The Principal Investigator shall submit a written request to the Fiscal Officer in OSP showing the technical reason for a request when ordering items from government surplus sources.

3. By fabrication as an end product of the contract - When fabrication is completed, the Principal Investigator will notify the OSP and Property Management Administrator in writing. At that time, appropriate accounting entries will be made by the Controller’s Office which will result in the recording of the value of the equipment in the University Plant Property Ledger. Property Management will provide an identification tag to be affixed to the equipment.

Process of Capital Equipment Purchases: 

• Purchasing Department routes capital invoice payments through Property Management, who assigns the permanent tag number, locates and tags the item, noting PI name, serial # and location.  This information is entered on the University BANNER computer system.  At this time, it’s indicated that the item has federal ownership and is added to the university list of government-owned property.

• Departments report to Property Management once a year that they have reviewed their property inventory and if there are any changes or not.

• Every other year Property Management conducts a physical inventory of capital equipment and government owned equipment.

• Capital equipment items are entered into the Banner Fixed Asset System.

• Property Management labels the item with an MSU tag number to list on the inventory system plus a label that indicates the asset is U.S. Government owned.

• Property Management adds the item to the departmental list of government owned property.

4. Identification of Government Property

Property Management shall be responsible for the affixing of identification tags on all government property as soon as feasible after such property has been received. These tags shall bear the legend "Montana State University" and shall have an identification number. The identification tag shall remain on the item of property so long as the item remains under the contract of the same government agency.

When required, identification numbers issued shall also be affixed to items of government property. If transfer of title of government property is made to the University, all government identification tags shall be removed. Unless otherwise specified by the contract, title to each item of equipment costing less than $5,000 and purchased with contract funds shall be vested in the University upon acquisition.

In all cases, the Property Management must be advised!

5. Receiving

Shipments of freight to the University are delivered directly to the ordering University department.  The delivery of large shipments (size or quantity) is arranged through the Physical Plant. 

 When the property is delivered to the department, the PI/Departmental Administrator is responsible for examining it to determine quantity received, condition and any transit-related discrepancies.

 For property that is delivered directly to the department, the PI/Departmental Administrator is responsible for notifying Office of Sponsored Programs and Property Management of receipt of government-furnished property.

6. Property Records

Property Control maintains the official records for all federal government property coded as capital equipment.  The information contained in the departmental government property files includes: 

• property identification number

• department

• acquisition method (purchased, donated, loaned, purchased grant assets)

• description

• manufacturer

• model number

• serial number

• condition code

• unit cost

• total cost

• date received

• location (building/room)

• department contact

• contract/grant number

• university account number

• funding agency

• date last inventoried

 The PI/Departmental Administrator is responsible for maintaining lists of government property (capital and non-capital) for each of his/her projects, including property at offsite locations and property in the custody of subcontractors.  The PI/Departmental Administrator is also responsi­ble for working with the Property Officer to self-audit government property at least once a year and for updating property records accordingly.

7. Physical Inventories

As required, or at the termination of a contract (whichever comes first), the OSP and/or Property Management shall furnish the responsible Principal Investigator with a listing of all government property acquired during the life of the contract to date. The Principal Investigator or his/her representative shall make a physical inventory of all the government property held under his/her contract and shall return the listing to the OSP with the appropriate notation as to location and condition of each item.

Departments located off-campus will conduct manual inventories biennially.

Procedure:

• a. Mail a current asset inventory listing, Property Management's responsibility.
• b. Physically verify the existence of each asset on the asset inventory listing and that the asset’s tag is affixed. Department's responsibility.
• c. Complete and submit to Property Management the inventory report. On the report, note all the located assets as “found” in the blank field to the right of each asset. Exceptions such as items on loan, missing, etc, should be explained in the blank field to the right of each asset with appropriate documentation supporting the explanation. Submit the report to Property Management with supporting documentation that may include the following:
  • i. Copy of a loan agreement.
  • ii. Print out of email confirming location of asset and responsible parties.
  • iii. Copy of surplus pick up request for items sent to surplus.
  • iv. Property Disposition Request form for items cannibalized or salvaged.
  • v. Property Disposition Request form for missing items.

The Dean, Department Head or Director of the unit should review, sign and date the Inventorry report. Submit the report to Property Management within the date requested by Property Management. This finalizes the physical inventory process for the department.

Annual Inventory

Property Management and the PI/Departmental Administrator will work together to conduct an annual inventory of all government-owned property and resolve any discrepancies disclosed by the inventory.  Subcontractors are also required to inventory all government-owned property and Subcontractors are required to inventory all government-owned property and report the results of their inventory to the PI/Departmental Administrator. Departmental inventory records will be updated upon completion of the inventory and resolution of discrepancies.  Any adjustment to government property will not be made without approval from the agency.   

In addition, a bi-yearly inventory of all capital equipment items (both federal and non-federal) is performed by Property Management in conjunction with the department inventory contact person.  Property Management generates and inventories lists of capital equipment and forwards it to the department.  Property Management physically locates each item on the list, notes any changes to location or status.  Property Management then updates the official property record and includes the date of the inventory.

 Selective  Inventory

Property Management may conduct selective inventories as needed to protect the Government’s interest.

 Closeout or Terminal Physical Inventory

The PI/Departmental Administrator shall prepare, with the assistance of Property Management, an inventory of government property in the possession of Montana State University or its subsidiaries at termination or closeout of an award.  The PI/Departmental Administrator will contact the awarding agency for disposition instructions.

8. Movement

The PI/Departmental Administrator is responsible for notifying Property Management when government property is relocated and for updating the departmental government property list with the new location.  If prior approval from the agency is required before property movement, the PI/Departmental Administrator should request such approval via the OSP.

 Movement out of the department of any item of federal government property that is tagged with a university property tag must be documented by the PI/Departmental Administrator on an Equipment Transfer Notice which should be signed by the department heads of both the transferring and receiving departments and forwarded to Property Management.

 Any time a capital equipment item leaves the campus or is returned, the PI/Departmental Administrator is responsible for completing a 1055 Equipment Off Campus Form and forwarding it to Property Management.

 The PI/Departmental Administrator is responsible for providing adequate physical protection for equipment during movement to prevent possible damage to property and injury to personnel.

9. Loss, Damage or Destruction

• a. Purpose: To ensure that university departments follow the necessary procedures when reporting lost, damaged or destroyed equipment.
• b. Applicability: All equipment in the custody of MSU investigators.
• c. Departments must report all incidents resulting in equipment loss, damage or destruction to the MSU Property Management Office. Departments must notify Property Management by completing the disposal PAMS-4 form if the equipment is lost or damaged beyond repair and should be removed from inventory. If the asset is accountable to a grant or contract, the principal investigator must also follow instructions in the award document for reporting lost, missing, stolen or damaged property to the sponsoring organization.
• d. Property Management forwards information about lost, Missing or Stolen equipment to the University Police and notifies other relevant University departments.
• e. Procedure:
  • 1. University Departments are required to complete and submit a Lost/Stolen Form to Property Management..
  • 2. Property Managment is required to update the Fixed Asset system according to the Lost/Stolen Form.
  • 3. All cases of loss, damage or destruction are reported to the Property Management Office as soon as the fact of such loss, damage or destruction becomes known.
  • 4. The report includes all factual data as to the circumstances surrounding the loss, damage or destruction. The extent of the University’s liability, if any, is subject to a written determination by the Contracting Officer.
  • 5. The determination and disposition of any property rendered unserviceable may relieve the University of it’s responsibility with that item. A complete record of all transactions is to be kept, including disposal. Shipping documents or other instruments evidencing disposal should be appropriately cross referenced on the determination document. It is the Contracting Officer’s responsibility to notify the Government Property Administrator.

10. Storage

The PI/Departmental Administrator is responsible for storing property in accordance with acceptable commercial housekeeping procedures and for providing adequate protection from corrosion, contamination and damage.  Additional security and protection must be ensured for sensitive items.

11. Consumption

Consumption is the process of incorporating raw materials provided by the Federal Government into an end item or otherwise consuming them in the performance of the contract.  Consump­tion of materials must be authorized by the agency.  Quantities consumed must be reasonable and in proper quantities for the work being performed.    The PI/Departmental Administrator must ensure that a) consumption of materials is accurately documented (including authorization from the granting agency); b) age-sensitive materials are consumed first; c) any unused material is returned to the Government; and d) excess government property has been screened for parts or components that are removed or recovered from repair, rework, testing or cannibalization.

12. Utilization

University departments should use government property for the purpose(s) for which it was  described in 

the award.  The PI/Departmental Administrator is responsible for obtaining agency approval prior to using

government property for purposes other than those described in the award.

13. Maintenance

The PI/Departmental Administrator is responsible for the care, maintenance and utilization of government property in his/her possession or control from the time of receipt of the property until relieved of responsibility by the agency.  The PI/Departmental Administrator will ensure that the property is maintained and repaired by qualified laboratory technicians or return it to the manufacturer for repair as the situation may require.  The PI is also responsible for assuring that only qualified technical project personnel use the property and assuring that the property is protected from any deteriorating elements.  The PI/Departmental Administrator shall establish a program of regular preventative maintenance and keep records reflecting the nature and cost of repairs, parts replaced and cost. 

14. Subcontractors

The PI is responsible and accountable for all government property in the custody of subcontractors or at alternate locations.   FAR 45.505 requires the prime contractor to use the records created and maintained by a subcontractor with an approved property control system for government property provided under its own prime contracts, unless the Government Property Administrator directs otherwise. The PI/Departmental Administrator is responsible for maintaining the accuracy of the official property records by incorporating any government-owned property changes or discrepancies that were noted on the inventory report submitted by the subcontractor.

Information on government property at subcontractor locations is reported to the PI/Departmental Administrator using the Subcontractor Equipment Inventory form or applicable agency forms such as DD Form 1662 (DoD Property in the Custody of Contractors), NASA Form 1018 (NASA Property in the Custody of Contractors), and DOE F 4300.3 (U.S. Department of Energy Semi-Annual Summary Report of DOE-Owned Plant and Capital Equipment).

Property Management maintains records of government property that is physically located off-campus.  The PI/Departmental Administrator maintains this information on a department level while Property Management maintain this information on a university-wide level.

The PI/Departmental Administrator has the primary responsibility for keeping accurate records of government property at off-campus locations and for notifying Property Management of any changes to property locations. 

15. Reports on Government Property

OSP has the primary responsibility for preparing and submitting interim and closeout reports of government property as required by the sponsoring agencies.  The OSP will contact Property Management for a list of all capital equipment purchased under the award.

Special Reports: The Property Management Manager establishes schedules for issuance of special reports to meet special needs. Special reports are written to meet the unusual needs of departments. They are prepared upon request.

Periodic Reports:

• 1. Periodic property reports will be completed by the Property Management Office when required by individual external funding agencies, per their format and instructions, i.e. use of the NASA form 1018.
• 2. Government Furnished Inventory List: There is an additional report that consists of all government furnished or loaned equipment with an acquisition cost between $1,000 - $4,999.99. This report is required at the end of the contract.

Also see above for G. Physical Inventories, Annual Inventories, Selective Inventories & Closeout or Terminal Inventories.

16. Disposition

The PI/Departmental Administrator, OSP, and Property Management work together to dispose of government property as required by the Federal Government.

Effective property control provides for disclosing excesses as they occur.  To that end, the PI is responsible for assessing the use of government property on an ongoing basis.  Property should be reviewed periodically and its need justified.  If the property is no longer needed for the project for which it was acquired, it should be screened against other in-house contracts for further use.  The PI/Departmental Administrator should contact Property Management for assistance in the screening process.  When there is no further use for the equipment, the PI/Departmental Administrator should contact the agency (via the OSP) for disposition instructions.  Disposition must be approved by the agency before property is removed from inventory.  The PI/Depart­mental Administrator should notify the Property Management of approved disposition.

At completion of the contract, the PI/Departmental Administrator should contact the agency (via the OSP) for disposition instructions.  Any disposition of government property must be approved by the agency prior to disposition.

17. Closeout

The PI/Departmental Administrator, the OSP and Property Management work together to fulfill all contractual property requirements at the closeout of a contract.  The OSP notifies the PI/Departmental Administrator by email approximately two months in advance that the end date of an award is approaching. 

OSP has the primary responsibility for preparing and submitting the closeout report of government property if required by the sponsoring agency.  Reports should be submitted first to the OSP for review/approval. 

Information on government property at subcontractor locations is reported to the PI/Depart­mental Administrator using the Subcontractor Equipment Inventory form or applicable agency forms such as DD Form 1662 (DoD Property in the Custody of Contractors), NASA Form 1018 (NASA Property in the Custody of Contractors), and DOE F 4300.3 (U.S. Department of Energy Semi-Annual Summary Report of DOE-Owned Plant and Capital Equipment).

If the PI wishes to transfer government property from a completed contract to another active contract, he/she must obtain prior approval from the agency via the OSP.

18. Sources

Federal Guidelines

• OMB CIRCULAR A-110, Uniform Administrative Requirements for Grants and Other Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations
  http://www.whitehouse.gov/omb/circulars/a110/a110.html
  

• FEDERAL ACQUISITION REGULATIONS (FAR) – annual property reports are covered in FARS: 45.505-14 and DFARS 245.505-14
  http://www.arnet.gov/far/

• NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (NASA)
  http://ec.msfc.nasa.gov/hq/grcover.htm
• U.S. DEPARTMENT OF DEFENSE (DoD) 
  http://www.dtic.mil/whs/directives/corres/html/41612m.htm
  

• U.S. DEPARTMENT OF ENERGY (DoE)
  http://www.sc.doe.gov/grants/grants.html

State Guidelines

• http://www.montana.gov/

• http://www.montana.edu/level2/policy.html#state

Montana State University Guidelines

• http://www2.montana.edu/policy/

IX. SURPLUS PROPERTY BUREAU TRANSACTIONS

Resolution forms (revised 9/88 - Appendix E) for purchasing goods from the State Property and Supply Bureau in Helena for state and federal property, are available from the Property Management office. Authorized agents sign their names on the form, which is then approved by the department head and dean, and then forwarded to Property Management. Property Management sends the completed form to the Property and Supply Bureau in Helena where the department signatures are kept on file. These people are then authorized to purchase state and federal surplus property. This same form is also used to delete any authorized agents. Once the Property and Supply Bureau has a department's authorization form on file, the department name and address is added to the Property and Supply Bureau mailing list to receive their surplus equipment sale bulletins.

Any time surplus capital property is purchased from the Surplus Property Bureau or from another state agency, it must be entered on the inventory. It is the responsibility of the department which purchased the property to provide Property Management with the necessary information that is needed to add the property to the inventory. This would include the date acquired, a complete description of the item, serial number, cost value, and where it will be located. Property Management will utilize the information to add the property into the capital fixed asset inventory.

In accordance with the guidelines set forth by the General Services Administration, the State Surplus Property Bureau is required to make occasional compliance and utilization reviews on property purchased from the Surplus Property Bureau.

You may occasionally receive a Compliance and Utilization Review form, which you should complete, sign and forward to Property Management. Property Management will verify the existence of the item on the inventory if it is capital in nature, then return the Review to the Surplus Property Bureau.

X. PURCHASES INVOLVING TRADE-INS

When the purchase of an item involves a trade-in, prior approval must be obtained for the trade-in. The department obtains a signed quotation from the vendor which shows cost of new item, trade-in allowance and net cost; completes a PAMS-3 form (Appendix A) and sends it to Property Management. The PAMS-3 form must include a justification for trade-in as to why it's to the State's better benefit to allow trade-in rather than for the department to keep the item or have the State sell it as used equipment. Property Management then processes the PAMS-3 form for approval. If the department is using a requisition that involves a trade-in, the PAMS-3 form is sent with the requisition.

It is the requisitioning department's responsibility when processing the invoice for payment to note in the lower left section of the BPA, "Trade-in of Property Management tag number ..... approved per PAMS-3 number ... dated ......". This will indicate to Property Management that the item was approved for trade-in. Property Management will at that time delete the item from the department's capital equipment inventory.

No trade-ins are allowed on vehicles. See Appendix E under Section VIII: Sale of Surplus State Property. 

XI. GIFTS OF CAPITAL PROPERTY

Property Management should be notified by the department receiving the gift so that the gift may be entered on the inventory if it is capital property. The gift is recorded at estimated fair value as determined from a receipt, letter, or other document evidencing the gift.

XII. CHANGES IN THE INVENTORY LISTING

Departments will receive capital equipment inventory updates to review after each fiscal year end and another the following March. Departments should notify Property Management by e-mail of any equipment transfers and equipment that needs to be surplused or disposed of. If any capital equipment acquisition does not appear on this listing, notify Property Management so that it may be added.

XIII. THEFTS

If theft or illegal conversion is suspected, University Police must be notified immediately. A copy of the Campus Incident Report must accompany the PAMS-4 form (Appendix B) sent to Property Management to delete the stolen property from the inventory. Any maintenance contracts on the stolen property should be cancelled in writing. The local vendor should be advised of the model and serial number of the item stolen so the authorities can be alerted if the stolen property appears. Notification of the theft to Property Management will ensure that any applicable insurance reimbursement available will be pursued.

XIV. SALE OF SURPLUS STATE PROPERTY

GENERAL

State Statutes, specifically MCA title 18-6-101, provide specific ways in which surplus state property must be disposed of, regardless of whether it is being sold or junked. Economically speaking, at the present time, it is to the advantage of the department purchasing capital property to use old property for trade-ins as much as possible.

Under NO circumstances should individual departments attempt to dispose of State property on their own. This includes all State property that is not consumable, costs more than $25, and lasts longer than one year.

Special Note: Library material, books and software are removed from the surplus property regulations.

PROPERTY SALES PROCEDURES

Any department having surplus property they wish to sell should submit a letter or e-mail (wiedeman@montana.edu) to Property Management stating:

1. Property number(s) of the surplus item(s), or serial/brand if there's no tag.

2. Description of the property and location,

3. Condition of the property, i.e.: broken, operable, fair, excellent, etc.,

4. Desired price (if any minimum), or estimated value.

5. Contact person and telephone number.

1. The department completes a surplus PAMS-3 Form (Appendix A) as surplus property. Property Management advertises surplus property via email bids to the campus community and on the surplus property web page,  which may include other university units and counties. The property is not for sale to private individuals at that time. The offer is usually open for a period of two weeks. Interested departments submit their written or e-mail bids to Property Management and the highest bidder is awarded the property, if the selling department accepts the bid.

2. If the property is not sold to another university department, Property Management and the department review the disposition of the surplus property. It can continue to be re-advertised on campus, or Property Management can work with the department to advertise for public sale or it can be submitted to the State Property and Supply Bureau to handle. The State Property and Supply Bureau in Helena mails a sale listing to all State agencies or they may bid out equipment where is, as is to businesses registered for that commodity. Bids are usually accepted by the selling agency for a specified period, usually about two weeks and the highest bidder is awarded the property. An invoice copy to transmit the surplus property to the buyer will be sent by Property Management to the selling department after State approval is granted. Under no circumstances should the property being sold be given to anyone who cannot produce a receipt of payment for the property.

3. Disposal - If it is determined that the surplus property does not have any value, it may be junked, cannibalized or destroyed. However, before this can be done, the department completes a PAMS-4 form (Appendix B). Property Management then approves disposal and notifies the department of appropriate disposal disposition of state property.

4. Computer Disposal - Due to the University’s status as a regulated Hazardous Material generator, these materials must be managed according to Federal, State and Local procedures.  Failure to comply with these regulations places the responsible department accountable for regulatory penalties. 

   Please go to this website http://www2.montana.edu/desktop/surplus.htm for disposal instructions.  If you have any questions contact the Help Desk at 994-1777 or send an email to mailto:helpdesk@montana.edu

   If you have any computers that are Pentium II and below that still work and you want to dispose of and know of someone that would like to use them, they can have those and any working monitors (not flat screens).  The hard drives still need to be wiped clean but the original operating system can be re-installed (or the operating sys cd rom/disks that came with the system).

   If you have a better Pentium III or better in working condition, the hard drive still needs to be wiped clean but call my office to pick them up for reuse on campus.

   Complete a disposal form PAMS-4 for all your computer equipment and send it to Property Management.  I will process the form and send an approval back to your department with disposal instructions.  Remove all MSU tags and I.D. from the equipment and send them to Property Management with the form.  On the form, list either the MSU tag number or if no tag, the serial number of the PC.  List the make and quantity of monitors.  You may directly dispose of any keyboards, mice and printers.

5. All sale proceeds are returned to the department if the sale is processed by MSU Property Management. If the equipment sale is handled by the state, the Property and Supply Bureau retains all of sale value $200.00 or less, $200.00 of sale value between $200.01 and $2,000.00 and 10% of sale value greater that $2,000.01. Sale proceeds that a department receives should, if possible, be deposited into the same fund account that was used to purchase the item sold.  

6. Each spring and fall the State Property and Supply Bureau holds a public auction for vehicles and outdoor, shop, maintenance, and janitorial equipment.  Sale proceeds from the state auction are retuned to the departments less auction and Property and Supply Bureau costs (usually 10-12%).

7. Once every two years, with odd year sales in the spring, MSU-Bozeman holds a public sale. Property Management works closely with departments to decide if surplus goes to the sale site, salvage metal, or garbage. Departments are not charged any work control labor charges or equipment dismantling charges. This is a good time for departments to clean out storage areas or free up lab/storage space. Property Management may hold small sales periodically or may place classified adds for individual items or specialized items.

Please contact Property Management (X5504) if you have any questions concerning surplus property.

Return to regular view	Text-only	Updated: 1/24/06