Chapter 15-300: Control and Marking of Property

15-310 Responsibilities

In accordance with BUS-29 Section III. A.

The head of the custodial department [i.e. the department that has custody of the equipment] and the Principal Investigator have primary responsibility for the care, maintenance, physical inventory, control, and disposition of inventorial equipment and other University orextramurally-funded property. They must maintain up-to-date departmental records that reconcile to the official records maintained by the Equipment Management Office, and if an award is involved, fully inform the Equipment Management Department as to all provisions of each award document regarding the care, custody, maintenance, records, control, and all transactions involving said property so that the Equipment Management Department may properly carry out its functions regarding inventorial equipment.

15-320 Indentification of Equipment

BUS-29, Section VI. Identification of Equipment, describes the University system for identifying, marking, and recording property in the custody, possession, or control of the University. In general, with respect to University inventorial equipment:

All inventorial equipment is identified, marked with the property number, and recorded promptly upon receipt. It shall remain so identified as long as it is in the custody, possession, or control of the University. Assigned property numbers are recorded on all applicable receiving, shipping, and disposal documents, and any other records that may be a part of the Equipment Management system. Such markings and identification are removed or obliterated from the equipment only when sold, scrapped, or otherwise disposed of. Once a property number has been assigned, no change is made during the life of the item regardless ofinter-departmental or inter-campus transfers. Property number data are maintained by each campus Equipment Management Department.

The University system for identifying inventorial equipment and accessories/components purchased for equipment is known as the Classification Code system. Guidelines for assigning Classification Code numbers to inventorial equipment acquisitions are issued by the OP Executive Director — Procurement Services.

See BUS-29 Sections VI. B. and C. for information on the identification of Government inventorial equipment and other Government property.

15-330 Inventory

Custodial departments are to take physical inventories at least every two years. The department head or Principal Investigator should verify the existence, current utilization, and continued need for the equipment inventoried. The local Equipment Management Department normally verifies the departmental inventories on the basis of statistical sampling, with all departments being sampled at least once every two years. Other verification procedures (such as one based on a bar code program) may be used in lieu of statistical sampling if accepted by the University's cognizant auditor for property management systems. (See Section 15-340, below.)

Complete physical inventories of Government equipment may be made by the local Equipment Management Department if required by the terms of a contract.

Physical inventories are also normally performed by the local Equipment Management Department, in coordination with the custodial department and the Principal Investigator, upon termination or completion of a government contract. Disposition instructions are requested from the agency by the campus Equipment Management Department as required under the contract. The requirement for an inventory may be waived by the campus Property Administrator when the equipment has been authorized for use in a follow-on contract. (See BUS-29 Section X. for further information.)

15-340 Audits

Campus property management systems are audited by the Office of Naval Research. Campus audit information is coordinated by the Office of the President Procurement Services

DOE Laboratory property management systems are audited by the Department of Energy.

15-350 Personal Use of Property

BUS-29 Section XIII. states that:

Employees shall not use University materiel or property in the care and custody of the University for personal purposes without pre-approval by the administrative head at that location.

Thus, use of University materiel or property in the care and custody of the University by University employees for personal purposes is not allowed except with the approval of the Chancellor, or, as appropriate, OP Chief Financial Officer, or the Vice President--Agriculture and Natural Resources.

15-351 Shared Equipment

Unless precluded or restricted by the terms of the award, equipment purchased with federal grant funds may generally be shared as long as this does not interfere with accomplishing the objectives of the project for which the equipment was originally purchased.

15-352 Equipment Loans

Equipment loans are covered in BUS-29 Section IV. E. and F. Subparagraph E. states that

When the University does not hold title to equipment but the equipment is in the care and custody of the University, the equipment cannot be loaned without the specific written approval of the title holder.

Subparagraphs F. outline procedures for recording loans of University-owned equipment under intramural loans, extramural loans, and inter-campus loans.

15-353 Subcontractor Control

Each subagreement entered into by the University whereby federal or State government property may come under the control of a subcontractor must contain specific provisions concerning the subcontractor's responsibility for the care, custody, and use of that property. These provisions should require, by flowing down requirements in the prime award, that the subcontractor assume the responsibility and obligations of the University with respect to that property while it is under the subcontractor's control. These obligations will include appropriate care, utilization, storage, movement, disposition, and record keeping. See BUS-29 Section XII for further information.