The Property Records Office is responsible for maintaining the University's central, capital assets inventory records by identifying new assets, auditing all property every two years, updating for corrections and preparing annual reports.
Every department plays a significant role by properly caring for their assets, reporting changes in status (e.g. location) to this office and following the policies and procedures outlined here to ensure the integrity of their inventory records.
Outlined below are the policies of the University System of Maryland's Board of Regents and the State of Maryland that govern the processes that must be followed to ensure compliance. Most importantly, our procedures are embedded within the policies.
Stolen Or Missing Property Disposal
Reconciliation Of Asset Records
Materiel Management Service Request form (MMSR)
As part of the University System of Maryland (USM), Towson University is required by law to regulate and control all property in its possession.
Universities must capitalize all property with an acquisition value of $5,000 or greater, and are responsible for maintaining inventory records for all capital and non-capital sensitive property, performing physical inventories of Capital and Sensitive Property at least once every two and three years, respectively, and reconciling additions and deductions in the inventory. Non-capital property has an acquisition value of less than $5,000. The University is not required to report on these items for financial reporting purposes.
Each USM institution is given the responsibility of defining the appropriate level of control. Towson University has elected to centrally control firearms and computers, regardless of cost, and all other equipment and furniture at $5,000 or greater. Departments are responsible for keeping records of all sensitive property, i.e. computer peripheral equipment, audio / visual equipment, office equipment, scientific and all other equipment valued at $2,500 to $4,999.99.
The Property Records Office of the Materiel Management Department is responsible for maintaining the University's central property records. Departments are responsible for the accuracy of the information in inventory records, and must report changes as soon as possible.
The following definitions may be helpful:
Property: Furniture and equipment with a useful life of a year or more.
Capital Assets: Property with an acquisition value of $5,000 or greater.
Non-Capital Assets: Property with an acquisition value of less than $5,000.
Sensitive Property: Generally defines property that is easily converted to personal use. Includes but is not limited to computers and peripherals, audio-visual equipment and office equipment, i.e., fax machines.
- A detailed list is in the Sensitive Equipment section.
Central Record: Inventory record of capital property maintained by the Property Records Office.
Property Records: The section of Materiel Management responsible for the central record. (Formerly Property Control)
User Employee: Primary person assigned to use property.
The Property Records Office is responsible for:
- maintaining the central record of University capital property, computers and firearms
- conducting a physical inventory of capital property at least once every two years
- conducting audits of departments' records of non-capital property at least once every three years
- reconciling the central record to the University's accounting system
- maintaining accurate records for audit purposes
-
supplying non-capital property label
Departments are responsible for:
- labeling non-capital property with a value of $500 or greater that is received directly or otherwise received unlabelled
- maintaining a record of non-capital, sensitive property with a value of $2,500 to $4,999.99
- reporting any activity that will change the status of property on the central record
- maintaining an accurate inventory of University property in their custody
- performing an inventory of non-capital property at least once every three years
- assisting Property Records in performing a physical inventory of capital property, computers and firearms at least once every two years
- notifying the Property Records office of all capital property, computers and firearms that are not properly labeled and/or on the central record
- adhering to all procedures and regulations pertaining to property
It is advisable that every department appoint an "Inventory Coordinator" to act as the liaison, point of contact, with the Property Records Office. Otherwise, the duties generally default to the department head, who is primarily responsible for the property in their department's care and the contents of the department's inventory records. The coordinator will be responsible for maintaining the department's inventory record and files.
Departments must establish a process to have their personnel work with their inventory coordinators to report stolen property or to move, transfer, or dispose of any University property. Department heads are responsible for enforcing these policies.
A central record is maintained on all capital property, computers and firearms. All capital property will be assigned a six-digit number. Where possible, an adhesive barcode label with the number, a barcode and "Towson University" will be attached to the unit. If a label cannot be affixed, a six-digit number beginning with "N" will be assigned by Property Records Office. Barcode labels will be applied and/or assigned by Materiel Management/Property Records' staff.
1. Sensitive equipment is property that is easily converted to personal use and has an acquisition value of $2,500 to $4,999.99. Plain TU logo labels will be applied by Materiel Management/Property Records staff when appropriate, and in most circumstances by the department of custody. See Section IX Sensitive Equipment for more detailed information.
2. Non-capital property is not capitalized as defined above in "A" nor controlled as defined in item 1. It is required that all non-capital property with an acquisition value of $500 or greater be identified as Towson University property. Where possible an adhesive label will be affixed to this property. This label will have at the minimum "TOWSON UNIVERSITY". Whenever possible, non-capital will be labeled at the point of receipt by Materiel Management staff.
Departments must maintain an inventory record of non-capital, sensitive equipment with an acquisition value of $2,500 to $4,999.99. See Section IV.C, Record Keeping and Audits and Section IX. Sensitive Equipment. Departments must label non-capital property that is delivered directly to them. Property Records Office will supply the labels.
Property procured with grant funds may be capital property or non-capital property as defined above. Budget codes beginning with number "4" or "5" identify grant accounts. Property Records is required to maintain central inventory records of capital grant property. This property will be identified with a "G" in the "FND" (FUND) field on the central records.
University Research Services is responsible for notifying the Property Records Office of:
- Property obtained with grant funds
- Ownership of grant property. When not notified, Property Records will identify as University owned
- The final disposition of grant property. Property that reverts to the grantor will be removed from the active records
Property that is not moveable, i.e. it is attached to the building by bolts, plumbing and/or electrical lines, is classified as "fixed." This property is usually "not" recorded in inventory records, but is part of the value of the building. Some examples include wall-to-wall carpet and blinds.
Property with an acquisition value of $500 or greater must be identified as Towson University property. When property received by Materiel Management staff is procured on a purchase order, they will apply the appropriate label (there may be exceptions), note it on the receiving report, and forward a copy to Property Records.
Capital property as defined in Section II will have a TU barcode label/number affixed/assigned to the item.
Other property will have Towson University label affixed to the item. If assembly is required, the item will not be labeled at Receiving, but this information will be noted on the receiving report, and Property Records will apply a barcode label if required.
Departments must notify Materiel Management's Central Receiving when property procured on a Purchase Order is received directly from the vendor. Departments must notify the Property Record Office of any capital property and computers received without labels. Property Records will label the units. Departments must provide proof of purchase documents for all computers procured/received directly.
Departments must label all non-capital property received directly by them or otherwise not labeled by Materiel Management staff. The department must record all sensitive equipment with an acquired value of $2,500 to $4,999.99. See Section IV.B.2, Inventory and Record Keeping and Section IX. Sensitive Equipment.
If the department procures items for installation onto or into a capital unit (e.g. board for a computer) they must notify Property Records of this addition. Furthermore, they must provide the cost of the items, the source of the item (purchase order, visa purchase, etc.), and the identification number of the unit. Property Records will determine if this addition changes the cost of the unit. If the items are installed onto or into a non-capital item, then the department will add the value to the cost on. If the increase in cost changes the status of the item to a capital item as defined in Section II, the department must notify Property Records.
B. GIFTS AND DONATIONS TO THE UNIVERSITY
Donations to the University, including gifts of furniture and equipment, are to be directed to the Office of University Advancement. Once the donated property has been accepted, the Office of University Advancement must notify Property Records. Capital property will be labeled and recorded by Property Records.
Please address questions to Property Records (x42175)
Non-capital, sensitive equipment with a value of $2,500 to $4,999.99 must be recorded in the department's rty sensitive equipment record. All non-capital property with a value of $500 or greater must be labeled by the department.
1. MARYLAND STATE AGENCY FOR SURPLUS PROPERTY
Departments may procure surplus property from the Maryland State Agency for Surplus Property (MSASP). Before going to MSASP, departments must contact the Procurement Department for a letter of authorization and a copy of the authorization card.
If surplus property is purchased, the department must send the receipt to the Director of Procurement. The department must notify Property Records of any capital property purchased so that Property Records can label and record it on the central records.
If property needs to be picked up from MSASP, a Materiel Management Service Request must be submitted in a timely manner by the department, since items must be picked up within four working days of purchase.
The department must label all non-capital property with a value of $500 or greater. Any sensitive equipment with a value of $2,500 to $4,999.99 must be recorded on the department's sensitive equipment record. See Section IV.
2. UNIVERSITY SURPLUS
Note: Materiel Management does not have storage for surplus property. Departments can help in the University's efforts to "recycle by reusing" excess property in "good" condition. Before sending in a request for disposal, try finding a new home for these pieces by offering them to other departments in your building. Plan ahead, so that you may post your surplus property on Inside@Towson's Faculty/ Staff Bulletin Board, under Special Interests, and still get rid of it in a timely manner.
Departments seeking to obtain excess property can contact Materiel Management for availability. Materiel Management will attempt to match needs with requests for disposal of excess property. Property Records will update the central record for capital property transfers reported by Materiel Management. Each department must record the transfer of sensitive equipment with a value of $2,500 to $4,999.99 in their department's record.
Equipment on loan to the University from a non-State agency for official use shall be reported to Property Records Office. The University has no insurance coverage for the loss of the property. Therefore any loss would be the responsibility of the user department.
If a department wishes to temporarily loan any property to another department, it is the responsibility of the departments to maintain a record. See Section V. F.
Each employee is responsible to the University for maintaining and safeguarding all property entrusted to him/her. A central record will be maintained for capital property. Departments must maintain a record of non-capital, sensitive equipment with an acquired value of $2,500 to $4,999.99. Maintaining records, including periodical inventory of property is the responsibility of the departments where the inventory is assigned.
1. CAPITAL PROPERTY
Property Records, with the assistance of departments, will conduct a physical inventory of all capital property on a two-year cycle. Property Records will search for capital property by the location of record only. The physicals will be done building by building.
After completing a building, Property Records will reconcile the physical inventory results to the central record. A report of the inventory results will be issued to each department. The report will consist of:
a. A cover memo b. A printout of the property inventoried c. A printout of the property not located during the physical d. A report on compliance with the policies on non-capital property. See Section IV.B.2.
Departments are responsible for reconciling discrepancies, e.g. property not found during a physical inventory. Departments must respond to the inventory report and provide verifiable explanations for property not located during the inventory. Acceptable responses include but may not be limited to:
a) Materiel Management Service Request for disposal, for transfer, or move to another location or department. The property identification number must be on the request.
b) A police theft report. The report must list TU identification number and/or serial number.
c) Vendor's documentation authorizing the return of property. The documentation must include tag and/or serial number.
d) Identifying a new location.
A revised report will be provided to the department once Property Records has verified the information and updated the central record.
Unaccountable property will remain on the central record until the end of the inventory cycle. Upon completion of the physical inventory cycle, a list of unaccountable property will be submitted to the Vice-President of Administration and Finance for authorization to remove the items from the active central record. Capital property written off as unaccountable in one cycle will be placed back on the active central record if it is discovered in a future audit.
2. NON-CAPITAL PROPERTY
Departments are responsible for conducting a physical inventory of non-capital sensitive equipment (see Section IX for more information) with a value of $2,500 to $4,999.99 or greater at least once every three years. It is recommended that the departments use a copy of their property record to perform the physical inventory. A blank copy of the Sensitive Equipment Record Log is available is available at Materiel Management's web page. All items on the record should be verified and checked off on the copy used for conducting the inventory if located. The working document(s) should be signed and dated by the person who did the work, as well as the department head or chair.
Departments' inventory coordinators or designees should maintain the record to keep it current. Departments may select to automate their record, but at a minimum must follow the format provided. The record must be updated for newly acquired property, disposals (including transfers to other departments) and other movement, or the result of the physical inventory. Property Records will contact departments to conduct an audit of the departments' compliance with policies and procedures at least once every two years simultaneously performed during capital property audits. A report of the audit results will be sent to department heads, deans, vice-presidents, and Internal Auditing.
Departments are required to maintain a property record of non-capital, sensitive equipment with a value of $2,500 to $4,999.99. The department must, at a minimum, add new property as it is received; record the date items are removed from the department; update the record for movement. This record may be maintained manually or on a computer. A copy of the record must be available upon request for auditing.
Property Records will perform periodic audits, simultaneously with capital property physical inventories, of individual department records. The audits will be performed to ensure compliance with the policies outlined in this manual.
Property Records will issue a report of its findings to the department head and the Internal Auditing office.
The movement of capital property and computers must be reported to Property Records Office on a Materiel Management Service Request. The department must provide the property identification number and the "FROM" and "TO" locations including the building and room. This information must be provided even if the department moves the property itself, that is without the assistance of the University's moving crew.
If the move is the result of multiple offices being relocated, contact Property Records in advance to arrange an inventory audit in place of detailing the property on a request.
Movement of sensitive equipment with a value of $2,500 to $4,999.99 must be recorded on the department's sensitive equipment record. The location and responsible user-employee must be updated.
B. MOVES REQUIRING MOVING SERVICES
Materiel Management provides moving services. To request this service, a Materiel Management Service Request (MMSR) must be submitted in a timely fashion. The Moving Services will verify the property identification number on all items moved. Upon completion of the move, a copy of the request will be forwarded to Property Records for record updates.
Any movement of sensitive equipment with a value of $2,500 to $4,999.99 must be recorded on the sensitive equipment record. The location and responsible user - employee must be updated.
If capital property needs to be repaired off campus, departments must notify Property Records by submitting a Materiel Management Service Request. The form must include the name of the repair organization, the property identification number, and the "FROM" location. If a purchase order is issued to cover the repair, the order number should be referenced on the request. Property Records will update the central record to show the unit is off campus.
If sensitive equipment needs to be repaired off campus, departments must write "OFF CAMPUS" in user - employee space on the sensitive equipment record. When the property is returned, the user - employee space must be updated. If the property label was removed during repair, the department must replace it. If the unit is to be replaced instead of repaired, the department must remove the property identification label.
Once the capital unit has been returned or replaced, the department must notify Property Records to update the central record. If the property identification label was removed during repair, Property Records will replace the label and update the central record accordingly. If the unit was replaced, Property Records will label the new unit and update the central record.
Permission to take property off campus is generally limited to the faculty and staff for University business use only. Personal use is prohibited. The department head must approve all off campus use and is responsible for ensuring that the property is returned if employment is terminated. The employee must be able to produce the property upon demand. If property is lost, stolen, or damaged, the employee is financially liable and responsible for the replacement value of the property.
Students are permitted to borrow University owned property if used in an academic context such as musical instruments. Departments are responsible for maintaining records of student loaned property. It is important to note when borrowing property, the borrower accepts responsibility for the security of the items and accepts liability for damage caused by negligence, loss or theft. Capital property and computers being used off campus must be reported to Property Records on a Materiel Management Service Request. The form shall include the borrower's name, equipment description, property identification number, and "FROM" location. The request must be approved by the department head and the borrower must sign the request where indicated.
When the property is returned to campus, the department must notify the Property Records Office in writing, in order to update the central record.
If sensitive equipment is being used off campus, then the department must note "OFF CAMPUS" in the location and the borrower's name in user - employee space on the sensitive equipment record and update the record upon return to campus.
Property may be transferred between departments and state institutions. If Moving Services is required, a Materiel Management Service Request must be submitted. Both the requesting and receiving department must sign the request. The request must contain the receiving department's name, description, property identification number, and "FROM" and "TO" locations including the building and room. Moving Services will verify identification numbers when moving the property and the central record will be updated accordingly.
If a transfer of capital property occurs without using Moving Services, a Materiel Management Service Request must be submitted for record update only. The request must be signed by both the requesting and receiving departments and contain the same information as defined above.
When sensitive equipment is transferred to another department, the new department's name and date
should be recorded in the user - employee space in the transferring department's property record, and the receiving department must record the newly acquired equipment in their property record.
Departments may make temporary loans of property. If Moving Services is required, a Materiel Management Service Request must be submitted. Both the requesting and receiving department must sign the request. The request must contain the receiving department's name, description, property identification number, and "FROM" and "TO" locations including the building and room. Moving Services will verify the property identification numbers when moving the items and the central record will be updated accordingly.
If a loan of capital property occurs without using Moving Services, a Materiel Management Service Request must be submitted for record update only. The form must contain the same information and signatures as defined above. When the property is returned to the department, Property Records must be notified.
If sensitive equipment is loaned, the department must record "LOAN" and the department's name in the user - employee's space on the property record and the location must be updated to the building and room of the borrowing department. The department must update their property record upon return of the property.
Stolen or missing property must be reported to the University Police immediately. The University Police will conduct an investigation and issue a report (which will include the property identification number, serial number, and description), and send a copy of the report to Property Records. Departments must submit a Materiel Management Service Request to report the loss of any capital property. The police case number must be recorded on the request. Upon receipt of the police report and service request, the central record will be updated.
If a theft occurs off campus (e.g. offices in 7801 York Road), it must be reported to the local police department. The individual reporting the theft must obtain the case number from the police. If capital property was stolen, departments must submit a Materiel Management Service Request to report the theft with case number recorded on the request.
When sensitive equipment with a value of $2,500 to $4,999.99 is stolen, departments must note this on their records along with case number and date in the user - employee column.
Surplus property shall be disposed of :
a. by trading it;
b. by auctioning it;
c. by selling it in a manner that fosters competition to the extent practical, considering the value of the item and the availability of prospective purchasers;
d. by transferring it, with proper documentation, including by donation, to another institution or major component within the University System, a nonprofit organization, the State, or a local government;
e. by dismantling it for recovery of parts; or
f. by destroying or discarding it if no value can be realized.
The procedures and policies that must be followed when disposing of TU property are outlined below.
Grant Property, i.e. property procured through a grant or with grant funds, must be disposed in accordance with the terms of the grant. See also section 2.C. above, "Identification - Grant Property."
All property is to be disposed of by Materiel Management personnel or may be disposed of by the department, such as by donation or sale, only after receiving authorization and proper documentation to dispose from Materiel Management.
Departments are prohibited from disposing of property in any manner, including dismantling for parts, without proper authorization from Materiel Management. A Materiel Management Service Request form (MMSR) must be submitted and include the property identification number, description, and "FROM" location, building and room.
Materiel Management will attempt to apply usable property to outstanding needs for excess property and donation requests; therefore, a ten-working-day turn-around time for service should be anticipated. If the property is to be donated, see Section VII D.
Property in very poor and/or unuseable condition can generally be disposed of by Materiel Management in less than ten days.
Departments must arrange for secure storage of their surplus property until pickup can be arranged.
Property will remain on the central record until the property has been dumped, transferred, or otherwise disposed by Materiel Management.
When sensitive equipment with a value of $2,500 to $4,999.99 is removed from the department for disposal, departments must record "DISPOSAL" and date in the user - employee space in the department's property record. NOTE: All computer disposals will be coordinated with OTS Department to ensure that data, software and/or hard drives are removed prior to disposal.
FREON must be removed from property, e.g. refrigerators and window air-conditioners, prior to disposal. Departments need to contact the office of Environmental Health and Safety, and obtain clearance, to dispose of property containing Freon. These requirements may delay the disposal process, but are necessary to protect the environment. No disposal facility will take these items unless the removal of the FREON is certified.
Departments may be able to trade-in property for new purchases. A notation must be made on the purchase document(s) that property to be traded will be part of the purchase. Departments must submit a Materiel Management Service Request which must include the property identification number, a description of the property, the "FROM" location including building and room, and the purchase order number. Departments must remove identification labels before the property is traded.
When Property Records receives a copy of the receiving report for the new purchase, they will match it with the service request. Where applicable, new property will be added to the records and traded property will be removed. If sensitive equipment, with a value of $2,500 to $4,999.99 is traded, the department must record "TRADE-IN" and date in the space for the user - employee in their property record.
C. SALE OR AUCTION OF PROPERTY
University property may not be sold without advertising and soliciting bids in a fair and competitive process. Departments intending to sell property must contact Materiel Management or Property Records for direction before advertising for bids. Departments are responsible for any expenses incurred as the result of the sale. Any proceeds received, as the result of the sale must be in the form of a check payable to "TOWSON UNIVERSITY", and deposited with the Bursar's Office. All property identification labels must be removed from property before it is sold.
Capital property that is sold must be reported to the Property Records Office on a Materiel Management Service Request. The department must include the property identification number, description, and "FROM" location on the request, and a copy of the bid and Bursar's Office receipt must be included with the request. Property Records will remove the property from the active central record.
Occasionally, an auction enterprise (e.g. Bel Air Auto Auction) will handle the auction of property for the University. Departments, working with procurement, are responsible for the arrangements with the auction firm. The auction firm must provide documentation showing the proceeds of the sale. Proceeds received as a result of the auction will be in the form of a check payable to "TOWSON UNIVERSITY"
which must be deposited with the Bursar's Office.
Before capital property is moved off campus for auction, it must be reported to Property Records. The department must include the property identification number, description, and "FROM" location on the request, and Property Records will update the central record to show the item is off campus. When the department receives the confirmation of the sale and the check, they must send a copy of the documentation to Property Records who will remove the property from the active central record.
When sensitive equipment with a value of $2,500 to $4,999.99 is sold, the department must mark "SOLD" and the date in the user - employee's space on the department's property record.
D. DONATION OF SURPLUS TO NON-PROFIT ORGANIZATIONS
Donations may be made to non-profit or charitable organization e.g. local schools, shelters, religious organizations, etc.; however, before donations take place, they must be reported to Materiel Management on a Materiel Management Service Request form. Departments will further be required to complete a Surplus Property Donation Receipt, supplied by Materiel Management, signed by the department and the recipient non-profit entity. Materiel Management will send a copy of the service request and donation receipt for capital property to Property Records, and the donated property will be removed from the central record.
One state institution cannot "donate" property to another. Follow procedures in Section V.E. Transfers.
RECONCILIATION OF ASSET RECORDS
Property Records is responsible for reconciling the central fixed asset record with the Financial Record System (FRS). Financial Services must provide a monthly report of receipts of controlled property, which Property Records will reconcile with the additions to the central record. All discrepancies will be reconciled, and a report will be sent to Financial Services and Internal Auditor.
Sensitive equipment is defined by its desirability, susceptibility to theft and ease of adaptability to personal use. Typical examples include televisions, cameras, computers, fax machines, cell phones, electronic balances (scales), etc. Although most of this property usually costs less than the mandated limits that we must record and control, departments are expected to take appropriate measures to protect and secure all university property.
Departments are strongly advised to maintain, at a minimum and regardless of cost, a list of serial numbers for sensitive assets, especially those that may have a history of loss within the department. The serial number may be the only means of recovering the stolen equipment. At the very least, it will allow departments to accurately report the loss to Property Records.
A list of sensitive equipment follows.
SENSITIVE PROPERTY
Sensitive property is equipment that is easily converted to personal use. It is equipment that may not be removed from the University without authorization. This equipment consists of computers and related equipment, audio/visual equipment, and office equipment. Departments are expected to take appropriate measures to secure this type of equipment and that a record is maintained. Examples of sensitive property are:
Computer
& Related Equipment
Audio/Visual Equipment
Computer Systems
Tape Recorders & Players
Laptop Computers
VCR's
Printers (All)
Stereos
Disk Drive Units
Projectors
Tape Drive Units
Cameras (All)
CD Drive Units
Musical Instruments
CD Burners
Televisions
Monitors
CD Players
Keyboards
Radios
Modems
Amplifiers
Plotters
Speakers
Scanners
Headphones
Terminals
Microphones
Office
Equipment
Lab Equipment
Fax Machines
Balances Copiers
Meters
Telephones (Mobile)
Microscopes
Typewriters
Calculators
Adding Machines
Clocks
Cash Registers
Scanners
The above list is not all-inclusive. If you have questions about equipment being "sensitive", please contact Property Records at extension 4-2175.
These policies were last revised June 2002.
