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> MSU Policy and Procedures > Property Management Procedure Manual
Montana State University
Property Management Procedure Manual
Subject: Financial
Affairs - Property Management
Policy: Property
Management Policies and Procedure
Manual
Revised: June 16, 2008
Effective date: Immediately
Review date: As
procedures or requirements change or
September 30, 2008
Responsible
Party: Property Management
Introduction
and
Purpose: This manual is to assist university
personnel
in safeguarding, accounting for and disposing
of university assets as well as assets
belonging to
other governmental agencies.
Policy This is
the guide for decision making.
Procedures: The sequential steps necessary to carry
out
the policy.
Internal control
considerations: How to ensure adequate safeguarding of
assets and avoid
misuse.
TABLE OF CONTENTS
I. Introduction
II. Property
Management Methods
III. Capital
Property Criteria
IV. Capital
Accessory Purchases
V. Adding Property
to PAMS
VI. Information
Requested on Invoice/BPA
VII. Identification of Property
VIII. Government,
Furnished Property, Including U.S.D.A.
IX. Surplus
Property Bureau Transactions
X. Purchases
Involving Trade-Ins
XI. Gifts of
Capital Property
XII. Changes
in the Inventory Control Listing
XIII. Thefts
XIV. Sale of
Surplus Property
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
| MSU | Admin & Finance | Property Management |
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:
-
The building where the
property is to be principally used,
person using the equipment, and
room number, if known.
-
The model number and
serial number, if applicable, if not already noted on the invoice.
-
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 (departments need to copy
from the Financial User Website [Non-Capital
Inventory] and paste to their spreadsheet program). 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 PARR Form through 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.
-
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:
-
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.
-
Contractor-Acquired Equipment:
Equipment acquired by the University with funds provided by the
Federal Government.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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 to indicate federal ownership.
-
Property Management
adds the item to the departmental list of government owned property.
-
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.
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.
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.
-
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.
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.
-
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.
-
I. 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 PARR 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.
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.
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.
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.
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.
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.
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.
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.
Sources
Federal Guidelines
State Guidelines
Montana State University Guidelines
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 PARR and sends it to Property Management. The PARR 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 PARR form for approval. If the department is using a requisition that involves a trade-in, the PARR 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 PARR 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 PARR form 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 PARR Form to Property Management (propmgmt@montana.edu) stating:
- Property number(s) of the surplus item(s), or serial/brand if there's no tag.
- Description of the property and location,
- Condition of the property, i.e.: broken, operable, fair, excellent, etc.,
- Desired price (if any minimum), or estimated value.
- Contact person and telephone number.
A.The department completes a PARR Form 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.
B. 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.
C. 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 PARR Form. Property Management then approves disposal and notifies the department of appropriate disposal disposition of state property.
D. 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 III 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 IV (2.0 ghz processor) or better in working condition, the hard drive still needs to be wiped clean but call the Property Management office to pick them up for reuse on campus.
Complete a PARR Form for all your computer equipment and send it to Property Management. Property Management will be 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.
E. 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.
F. 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 returned to the departments less auction and Property and Supply Bureau costs (approx. $500.00).
G. 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 ads for individual items or specialized items.
Please contact Property Management (X5504 or x2643) if you have any questions concerning surplus property.
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