Handbook of Operating Procedures > Series 400 Budget, Finance and Operations > 4.1.1 Use of, Accountability and Responsibility for State (University) Property

4.1.1 Use of, Accountability and Responsibility for State (University) Property

A.  Purpose

This policy provides guidelines for employees at The University of Texas at Tyler and The University of Texas Health Science Center at Tyler (collectively, The University), regarding the proper use of and accountability of state (University) property and to establish the responsibilities for the care of University property.

B.  Persons Affected

All University employees

C.  Definitions

1. University. The University of Texas at Tyler and The University of Texas Health Science Center at Tyler
2. SPA. State Property Accounting
3. State agency.
   1. any department, commission, board, office, or other agency in the executive branch or legislative branch of state government created by the constitution or a statute of the state of Texas; or
   2. a university system or an institution of higher education as defined by Section 61.003, Texas Education Code, i.e., The University of Texas at Tyler.
4. Controlled Assets. As per the Texas State Comptroller’s Policies and Procedures Manual, controlled assets are:
   1. any property that the Comptroller defines as Controlled in the State Property Accounting Users and
   2. all assets upon which the agency places local management controls.

D.  Policy

1. State Property Law: State Property Accounting
   The University accounting system is intended to provide the University with the information to make wise decisions and to serve as a University tool to assure the public that all University assets are well and properly maintained.
   1. All personal property owned by the state shall be accounted for by the agency that possesses that property and in accordance with the procedures set forth by State Property Accounting
   2. Any possession of the State of Texas is required to have management controls placed upon it if has sufficient value to warrant inclusion in the fixed asset portion of any official statement(s) of financial condition, or if it is determined it should be secured and tracked because of the nature of the possession.
   3. State agencies are still responsible for maintaining accountability for all state property, but costs of a system for accountability, either in real costs or in lost opportunity costs, should not exceed the value of the equipment.
   4. To facilitate systems for accountability, the State Comptroller has written a State Property Accounting Process User’s Guide. See website:  https://fmx.cpa.texas.gov/fmx/pubs/spaproc/index.php
2. Designation of Accountable Officers
   1. The Property Manager, Senior Vice President, Finance, Chief Financial Officer administers the property inventory procedures and ensures compliance with state and University property regulations. As the representative of the President, the Property Manager is the custodian of all personal property possessed by the University.
   2. Budget Authority/Department Head: The President delegates authority to University department Budget Authorities to serve as Accountable Property Officers with responsibility for the care, maintenance, and safe-keeping of property assigned to their departments. A department Budget Authority may not further delegate this responsibility.
3. Failure to Maintain the Property Inventory in Accordance with State Law
   1. Texas Government Code Section 403.277 reads: If a state agency fails to keep the records or fails to take the annual physical inventory required by this subchapter, the Comptroller may refuse to draw warrants or initiate electronic funds transfers on behalf of the agency.
4. Non-serviceable or Surplus Property
   1. Please refer to Handbook of Operating Procedure 4.1.4 for Disposal of University Property.
   2. /UTTyler/HOP/Series-400-Budget-Finance-Operations/4-1-4-Disposal-of-University-Property
5. Controlled Assets
   1. The link below comprises a list of controlled assets the State Comptroller’s Office has determined that, due to the nature of the items, even though they are not capitalized assets, real property, or improvements to real property or infrastructure, they must be secured and tracked regardless of cost or fund source -  https://fmx.cpa.texas.gov/fmx/pubs/spaproc/appendices/appa/appa_6.php

6. Restrictions on the use of University property: 

   1. University property and equipment of all types, including technical and research facilities of the University, are to be used only for official business. University equipment may not be taken off the University campus unless it is to be used for official business. The use of University-owned motor vehicles for other than official business is strictly prohibited by State Law (Texas Government Code 2203.004).

E.  Responsibilities

1. Budget Authorities / Department Heads will take all reasonable precautions to ensure that the property is used only for official business and is safeguarded in such a manner as to ensure against loss or damage.  If, in spite of such precautions, property is stolen, missing, destroyed, or damaged, a report to the Asset Management and Inventory Control or Accounting Department specific to the university location is required. Lost or Stolen property should be reported immediately to University Police as well.
2. Budget Authorities / Department Heads are responsible for ensuring that their inventory records are maintained in accordance with University and State policies.
3. Budget Authorities/ Department Heads are responsible for all departmental assets and must monitor items that are excluded from the University’s inventory to ensure that the department has the equipment necessary to accomplish its objectives.

F.  Review

This policy shall be reviewed every five years or as legislation changes.