EIU Office of Internal Auditing

#163 - University Personal Property Control

Approved: March 19, 2003

Nomenclature changes: December 22, 2006

Monitor: President

These regulations are issued to provide guidelines and procedures to assure that University personal property is used only for the educational, research or public service purposes of the University and in accordance with the requirements of the State Property Control Act and other applicable laws and regulations governing State property.

Property belonging to Eastern Illinois University is “state-owned property” and, as provided under the State Property Control Act, is subject to the regulations of the Department of Central Management Services (CMS) as administrator of the act. These regulations are expanded upon in Section 5010 of the Illinois administrative Code. The President of the University, as “responsible officer”, is accountable to CMS for the supervision, control, and inventory of all personal property in the custody of Eastern Illinois University. These custodianship duties and responsibilities are delegated as outlined below.

Private Use of University Property

The private use of University property is not permitted except as may be provided for in certain Board of Trustees employer-employee contractual arrangements. No one connected with the University in any capacity may use any University property for any personal purposes. It is a misuse of University property to:

1. give it to, permit its use or consumption by, or to use or consume it for the benefit of any person, group or organization within or outside the University except in pursuit of the public purpose of the University.
2. waste, abuse or neglect University property causing its damage, destruction, or impairment of function or useful life.

Account Managers Duties and Responsibilities

Account managers are delegated the responsibility of maintaining proper accountability and control of the equipment within their jurisdiction. Account managers shall have the following specific responsibilities regarding University equipment:

1. know the location of all equipment inventoried to their account and assure that such equipment is reasonably secure from possible theft and other hazards;
2. assure that assigned equipment is being used in the best interests of the University;
3. complete an annual verification of the status of departmental inventory on a timely basis and complete required forms provided by Property Control;
4. discourage theft and loss of University equipment by fixing responsibility for its maintenance and proper use.

The Vice President for Business Affairs has been delegated the authority to develop and issue necessary procedures and to provide general supervision of the property control function. The Property Control unit is primarily responsible for the maintenance of inventory records, identification of equipment by department and location, and satisfying the requirements of accountability of all assets and reporting to the State Department of Central Management Services as required.

Addition of University Property

An item that cost $100.01 or greater and has a useful life of one year or longer is considered equipment. Only equipment that costs $500.00 or greater and equipment with a value of less than $500.00 that is considered a high theft item is maintained in the University’s fixed assets system. These items are added to the fixed asset system (a) after payment has been made by the Accounting Office or (b) following transfer from another location or agency. CMS requires the following information to be entered and maintained on each property item:

1. Identification number – six digit number assigned to item
2. Location code number – ten digit number divided into three groups of digits separated by dashes. The first digit group consists of five digits and is the appropriation number assigned to the University by the Comptroller. The next two groups consist of three digits and two digits respectively. These numbers are assigned by the University and used to locate the item within the University.
3. Description – the description shall be brief (less than 41 characters), include a serial number if applicable and be written in the follow format: principal name of property, necessary descriptive words and/or measurements, serial number. (examples: Desk, executive, steel, gray, 30” x 58”; typewriter, IBM, #48-307-582)
4. Date of purchase – four digit number indicating month and year
5. Purchase price – purchase price includes delivery and installation costs if applicable. If a gift, the value of the item will be used as the purchase price.
6. Object code – a four digit number selected from the listing in Section 11 of the Comptroller’s Uniform Statewide Accounting System (CUSAS) manual.
7. Voucher number – assigned by the University to the voucher used to acquire the item. If the item was not acquired by an invoice voucher, all zeros should be entered unless the item was a gift, in which case “gift” should be entered.

Relocation of University Property within the University

An item on a department's inventory may be moved either within the department or between departments by following these steps:

1. Complete a Moving Request form for each piece to be moved. Moving Request forms are available through Property Control.
2. Send the first three copies of the completed Moving Request form to Property Control.
3. Attach heavy buff copy of Moving Request form to item to be moved.
4. Property Control will coordinate scheduling of the actual move.
5. After the move is completed, Property Control will process the change in location on each area's inventory.

Temporary Removal of University Property

University property may be temporarily removed from University premises when it is determined that such removal will advance the University programs or activities of that unit. The person or entity to which the property is assigned shall be liable for any losses, damage or destruction, or impairment of function or useful life of the property that may result due to negligence or carelessness. Even though the property may seem to be of no value, removal is prohibited unless it is removed in accordance with the following guidelines.

1. Short Term Temporary Removal Guidelines and Approvals
   
   Overnight or weekend removal of University property must be approved, in writing, by the account manager and dean or director. The written approval shall specify the date the property is to be returned to the campus. All other requests for removal of property up to one month must be submitted in writing on a Temporary Removal of Property form provided by Property Control. All temporarily removed property must be returned to the assigned unit by the designated date, unless written approval from the responsible account manager and dean or director has been obtained for an extension. The total period of temporary removal may not exceed one month.
2. Extended Removal Guidelines and Approvals
   
   The Vice President for Business Affairs, or designee, may authorize extended removal of property from University premises for use in university-related activities. In such cases, no specific time period need be stated, the intent being that the property will remain at the off-campus location for as long as the University program or activity is conducted at that location.
3. Contractual Agreements
   
   University property may be loaned to, or used for the benefit of, a person or organization outside the University pursuant to a contractual agreement, executed by the Vice President for Business Affairs, or designee, when a full and fair consideration is to be received in exchange for its use and where the consideration is, or may be used, to advance the public purposes of the University.

Transfer of University Property

When an item is no longer of use to a department, it is the account managers’s responsibility to have the item removed from his/her inventory in one of the following ways:

1. If the item is still in working condition, the account manager should notify the University community of the item through University Publications/University Newsletter of the availability of the item. If another department within the University can utilize the item, procedures should be followed to relocate the item to the new department. If, after a reasonable time, no other department has shown need for the item, Property Control should be notified by completion of a Moving Request form, notating the item is to be surplused. Property Control will then pick up the item from the department and complete the process by transporting the item to the State warehouse. Once CMS accepts the item by signing off on the transfer of possession, Property Control will remove the item from the department’s inventory list.
2. If the item is no longer usable, Property Control should be notified by completion of a Moving Request form. If the item is to be discarded, Property Control will remove the item from the department and store it in the Property Control warehouse. Property Control will then file the necessary forms with CMS to receive authorization to dispose of the item. Once authorization is received from CMS, Property Control will dispose of the item and remove the item from the department’s inventory list.
   
   If the item is to be cannibalized by the department, Property Control will file the necessary forms with CMS to receive authorization. Once authorization is received from CMS, Property Control will notify the department, who may then remove the inventory tag and cannibalize the item. Cannibalization should not begin until authorization is received from CMS. The item will be removed from the department’s inventory list by Property Control.

Items may be used as trade-in for replacement items of like nature. Written notification to CMS must be completed and approval received before the transaction takes place. The written notification should include: description of the item, date purchased, inventory number and serial number, if applicable; full description of the new equipment being purchased; name of the person or business accepting the trade-in; cost of the new item; and value allowed on the trade-in. Once approval is received, and the transaction takes place, Property Control shall complete the necessary form with CMS to reflect this transaction.

Tagging of University Property

All University property with a value of $500 or more and items considered to be a high risk for theft, regardless of the acquisition cost, are required to be identified with a red, numbered tag. This tag shall be affixed to the property in a general area easily located by all and in no danger of being damaged. In addition, the inventory number is printed on the equipment in an inconspicuous location with a marking device to facilitate identification if the red, numbered tag has been removed. If the item consists of several pieces which are likely to be used separately (such as tool sets), each piece should be marked in such a manner that the identification number is not easily removed. The status of the items in this category is maintained on the University’s Fixed Assets system. These items are listed on the department’s inventory verification list.

University property with a value between $100.01 and $499.99 (excluding internal components for computer add-ons) are tagged with a blue non-numbered tag. The status of these items is not maintained on the University’s Fixed Assets system and these items do not appear on the department’s inventory verification list. However, the departments are responsible for maintaining property control records for all equipment in this category.

If an item loses its inventory tag, the account manager must request a replacement tag from Property Control. As inventory tags are numbered sequentially and cannot be duplicated, a new inventory tag number may need to be assigned to the item at the time of retagging.

Inventory of University Property

An annual physical inventory of all “state-owned” property in the University’s possession is required by CMS. This inventory must be completed as of a “Certification Date” set forth by CMS and the results reported to CMS within 90 days of the certification date. At the time of the inventory both the location code and identification number of each item must be verified.

The process for this inventory is as follows:

1. An “Inventory Verification List” as of the certification date assigned by CMS, is sent out to the account manager agent by Property Control. This list contains all inventory assigned in the University’s fixed asset system to the account manager as of that date. Accompanying this list are instructions (including a due date for completion), an Inventory Certification Form and forms to be completed describing discrepancies noted.
2. The account manager is responsible for verifying the location code and identification number of each item on the list. If the account manager is not able to locate an item, the status of the item must be reported on the appropriate form supplied by Property Control. In addition, items located in the account manager’s area that are not included on the list are to be reported to Property Control on the appropriate form provided.
3. When the inventory is completed, the account manager completes and submits the Inventory Certification Form, along with accompanying forms if necessary, to Property Control.

Information received from the account managers is then used by Property Control to report to CMS the status of the University’s inventory.

Theft of University Property

If University property is discovered to be stolen, the following procedure must be followed:

1. Notify EIU Campus Security at 581-3213 of the theft. This should be done as quickly as possible so that Security personnel may take all necessary steps to recover the stolen property.
2. The account manager should then send a written report to EIU Campus Security about the theft. The report should include the date the theft was discovered and a complete description of the item or items taken, including the inventory tag number and serial number if applicable. These numbers can be obtained from the department’s inventory verification list or the University’s fixed assets system.

Ramifications Process for Non-adherence to IGP:

If an account manager has not completed his/her inventory by the due date, Property Control personnel may be required to complete the inventory for the department. If this is necessary, the department will be assessed a charge to cover the time involved.

Violations of other Property Control policies or procedures shall result in the following:

1. First Violation
   
   Property Control shall notify the account manager by memo that a Property Control policy or procedure has not been followed. The account manager shall be informed of the correct procedure to follow in the future and of the consequences of subsequent violations.
2. Second Violation
   
   Property Control shall again notify the account manager by memo including reference to the previous violation. A copy of this memorandum shall be sent to the appropriate Dean or Director.
3. Third Violation
   
   Property Control shall notify the appropriate Vice President of the account manager’s policy/procedure violations. A copy of the memorandum shall be sent to the account manager and the appropriate Dean or Director. Appropriate action at this time may result in the removal of the individual’s account manager authority.