FINANCIAL AND ADMINISTRATIVE PROCEDURES
MAINTAINING A PROPERTY CONTROL SYSTEM††††††††††††††††††††††††††††† Procedure:†††††††† 11 - 010
Issued By:† †††††††††††††† USNH Controller
A.† SUMMARY OF ADMINISTRATIVE PROCEDURE
This policy explains the requirements for and purposes of the USNH Property Control System.† The System ensures management control of USNH assets, including the acquisition, utilization, location, reporting, and disposal of equipment.
1. Definition of the USNH Property Control System.† USNH uses the Banner Fixed Asset module of Banner Finance to maintain records on all capitalized USNH equipment.
2. Why is a Property Control System Necessary?† A Property Control System safeguards the physical assets of USNH, assures compliance with federal regulations, and provides an auditable subsidiary ledger to the USNH general ledger.† Federal grant and contract regulations require that a structured equipment inventory be maintained and that available equipment be fully utilized before federal funds are spent on additional equipment purchases.
3. Responsibility.† The Property Control department of USNH Financial Services is responsible for maintaining equipment inventory for all USNH capital assets.† The department chair, dean, director, project director, or business manager is required to inform Property Control of any changes to the status of equipment assets under their control in a timely manner.
1. Property Control Files† The federal government requires that a Property Control System must contain the following information:
a. Identification: Tag/Barcode number, description, and if applicable, model, manufacturer, serial number, or other identification number
b. Location: Campus, department, building, and room number
c. Award:† Funding source (Banner fund/org) , responsible person , and if applicable, grant code and name of project director or user
d. Acquisition and Use: Date acquired, condition, title to, and if applicable, purchase order number, invoice number, and/or related journal entry numbers.
e. Cost: Unit acquisition cost
f. Disposal: Date, reason, and disposal method
g. In addition to these requirements, USNH calculates and discloses related depreciation costs associated with all USNH fixed assets, including USNH owned equipment.
2. Reconciliation.† The Banner Fixed Asset files are reconciled to the general ledger annually and additions are reconciled on a monthly basis.
1. Initiate and Facilitate Tagging/Bar-coding and the Inventory Process.† See USNH Procedure 11-023; Tagging/Bar-coding of Equipment and USNH Procedure 11-040; Inventorying of Equipment.
2. Reporting of Government-Owned Equipment.† Property Control is responsible for the submission of an annual report and other reports at the termination of grants and contracts of all government-owned equipment.† The Office of Sponsored Research is responsible for letting Property Control know when a grant or contract has ended and for communicating any reporting requirements.† This notification must be in writing.† The communication must include the name and address of the report recipient.† Property Control will communicate to the federal sponsor, title holder, or cognizant contracting officer all instances of loss, damage, or destruction of equipment within 30 days of notification.
3. Department Responsibilities† Departments must inform Property Control (Controllerís Office for UNH, UNHM, NHPTV and GSC, Purchasing for KSC, and Campus Services for PSU) of changes to the status of equipment, both as part of the inventory process and as part of normal operations, including:
a. Maintenance Information.† It is the department's responsibility to return warranty cards, conduct regular or periodic maintenance, such as lubrication, cleaning, or calibration and maintain records of deficiencies discovered as a result of inspections, as well as any maintenance actions.
b. Sub recipient Responsibilities.† The department must advise sub recipients of their responsibility to comply with USNH property control policies and procedures where applicable.
c. Physical Movement of Equipment.† When equipment is loaned to non-USNH entities, sold or given by one department to another, or moved from one location to another within a department, a completed must be sent to Property Control within 30 days following the move.† In addition, departments should report all instances of loss, damage, or destruction of equipment to Property Control as soon as possible.
d. Title Transfer.† When a grant or contract closes which has sponsor owned or titled equipment, the project director must notify Property Control to request authorization from the sponsor to transfer ownership to USNH.† Please contact the UNH Office of Sponsored Research or Campus Grant Accounting Office for assistance in these instances.
e. Transfer of Equipment to Another Institution.† Faculty members transferring to another institution must receive written approval from the campus VP for Research and Public Service , or equivalent VP, and the sponsor as required, to transfer equipment for grant or contract funded equipment.† To transfer equipment purchased against the General Fund, written approval must be received from the campus VP for Finance.†† A copy of applicable approval should be forwarded to Property Control.† Include the USNH barcode #, the Banner PTAG #, and other equipment identifying applicable and contact information.
f. Theft.† In addition to completing the appropriate disposal documentation (see part g. Disposal below), property which is stolen (or vandalized) must be reported by the department immediately to the respective campus security office at the residential campus and to the USNH Internal Audit department.†
g. Disposal.† See USNH Procedure 11-030; Disposal of Surplus Property.
h. Inventories.† See USNH Procedure 11-040; Inventorying of Equipment.