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Policy Contact: Property Management Office

1. Purpose

   This policy and its procedures set forth the guidelines for equipment and supplies management for employees at the University.

2. Policy
    
   1. University employees are responsible for following applicable laws and policies regarding property management, including the provisions of SDCL Chapters 5-24 and 5- 24A.
       
   2. The term “property” throughout this policy refers solely to personal property, defined in SDCL 5-24A-1 as property which, due to its nature or physical characteristics, cannot be included with the scope of definition of real property.
       
   3. Property owned or in the custody of the University shall be used for institutional purposes only. No University employee shall permit such property to be removed from the University campus for use on either a rental or loan basis for non-institutional purposes, or for personal use.
       
   4. Those items of property with a value of less than $5,000 shall be the responsibility of the department to control. The disposal of all equipment items, regardless of value, is covered by State law and regulation.
       
   5. Equipment with a value of $5,000 or more and with a useful life exceeding one (1) year must be tagged and controlled. Typical items in this classification include those capital assets purchased using a 777XX2 or 777XX7 Account Code.
       
   6. Equipment created, requisitioned, or purchased on campus that is valued at $5,000 or more must be added to the perpetual inventory. Departments are responsible for preparing and sending a memo to the Property Management Office, or successor unit, with a brief description that will identity the item plus the building and room number where the equipment is to be generally located, the identification or serial number, if any, and, for requisitioned or purchased equipment, the actual cost of the equipment or, if the actual cost cannot be ascertained, the estimated fair market value of the item at the time it was created, requisitioned, or purchased. Cost of created equipment will be determined by adding the costs of all inputs (materials, labor, shipping/freight) in the manufacturing of the item. Copies of vouchers verifying the cost of created equipment must also be included.
       
   7. Gifts of equipment to the University with a fair market value of $5,000 or more must also be added to the perpetual inventory. Departments are responsible for preparing and sending the forms required by the ������Ƶ Foundation to the Property Management Office, or successor unit, and the ������Ƶ Foundation, including the donor or source of supply, a brief description of the item, the building and room number where the equipment is to be generally located, the serial or identification number, if any, and the known actual cost or, if the actual cost cannot be ascertained, the estimated fair market value of the item at the time of acquisition.
      1. Equipment purchased by the ������Ƶ Foundation for any University department or unit is considered a gift to the University and must be added to the inventory.
      2. All gifts must be accepted in accordance with SDBOR Policy 5.8.
          
   8. To aid in identifying and controlling equipment, the Property Management Office, or successor unit, is responsible for assigning an ������Ƶ tag number to each item. The tag must be placed on the equipment by Property Management personnel. Equipment in the custody of University units located outside of Brookings will be assigned identification numbers, and the placement of tags on the equipment will be performed by employees located in the outlying units. Tags will be forwarded by the Property Management Office.
       
   9. Each dean, director, or department head is accountable to the University President for all equipment assigned, controlled, or in the custody of their office or department. The Property Management Office, or successor unit, is responsible for maintaining a perpetual inventory of all moveable equipment.
       
   10. With regards to federal property, the Grants Administration Office, or successor unit, is responsible for the following:
       1. Annual Report of Federal Property – completed annually as of September 30th;
       2. Subcontractor Control – ensures that subcontractors follow all reporting requirements; and
       3. Contract Property Close Out – monitors subcontractors’ and University’s property reports at close of awards to ensure that all property has been disclosed.
           
   11. Federally-funded or grant-funded property titled or loaned to the University shall be processed as follows:
       1. If the property is federal property, identification of equipment must indicate federal ownership.
       2. All unneeded property must be reported as excess, and disposal of the property must be approved by the federal agency per regulation or per the terms and conditions set forth by the funding agency.
       3. Loss or theft of the property must be reported to the funding agency, as set forth in regulation or in the terms and conditions of the purchasing agreement.
           
   12. Several requirements must be followed before requisitioning equipment per federal regulation:
       1. For equipment proposed for requisition with a value over $5,000, the department shall screen for like equipment that might not currently be in use elsewhere in the University by contacting other departments that would likely have the type of equipment they are requisitioning.
          1. Such equipment found elsewhere in the University is “not in use” either when it is no longer needed for the project or program for which it was originally acquired, or where the equipment can be made available to other projects without interfering with the work on the project or program for which the equipment was originally acquired.
          2. First preference for equipment use requested by other programs or projects is to be given to those programs or projects currently or previously funded by the federal awarding agency which funded the original acquisition of the equipment. Second priority is given to programs or projects currently or previously funded by other federal agencies. Finally, use for non-federally-funded programs or projects is also allowed where the equipment will continue to be used on the federally-funded project or program for which it was acquired.
       2. The Property Management Office, or successor unit, is also available for assistance in locating similar types of equipment with a value over $1,000.
           
   13. When a computer item is to be disposed of or transferred to a different department, the Property Management Office must contact the Division of Technology and Security to assist with data erasure to ensure there is no data loss through the disposal or transfer process.
        
   14. For purposes of this policy and procedures, a computer item includes a hard drive, monitor, printer, fax machine, copier, or computer accessories.
        
   15. Departments are responsible for providing the Property Management Office with documentation of any equipment requiring a title and/or license plate through the Department of Transportation. All titled equipment is to be photographed and the serial or identification number of the equipment recorded. If the equipment has a license plate, an additional photograph of the license plate attached to the equipment is required. All titles and records for University equipment are held with the Property Management Office.
        
   16. On an annual basis, the Property Management Office, or successor unit, is responsible for providing departments a list of the equipment charged to their custody as provided in Parts 2.e and 2.f above. The department is responsible for verifying the list through the dean, director, department head, or designated representative, to ensure that all equipment has been accounted for. The department is also responsible for returning one (1) copy of the list to the Property Management Office, or successor unit, along with a list of any changes to be made and for maintaining the second copy in the department.
        
   17. On an annual basis, the Property Management Office, or successor unit, is responsible for providing departments a list of titled equipment charged to their custody. The department is responsible for verifying the list through the dean, director, department head, or designated representative and for analyzing whether the equipment is usable, the equipment is needed, and the equipment is being used. The department is also responsible for returning one (1) copy of the list to the Property Management Office, or successor unit, and for maintaining the second copy in the department.
        
   18. During the interval between annual listings, the Property Management Office, or successor unit, may conduct spot inventories of various items in departments and offices throughout the University. Items are selected at random, but may include those reported as missing on the latest annual inventory as well as items that are subject to pilferage and high value items. All discrepancies discovered will be reported to the appropriate dean, director or department head.
        
   19. Each dean, director or department head is responsible for notifying the Property Management Office, or successor unit, of any acquisition, disposal, trade-in or transfer of equipment in their custody per SDCL 5-24-4. Most acquisition information is automatically picked up from the account system; however, there are exceptions, such as gifts, grants, surplus, or transfers for which the department needs to make notification.
        
   20. Departments are responsible for notifying the Property Management Office, or successor unit, of any changes in the status of all capital equipment, regardless of value, listed on the inventory records of the University. These changes may result from:
       1. Trade-in: An item to be traded must have prior approval from the dean, department head or designee and must be listed on the purchase requisition, including the appraised value determined by the South Dakota State Property Management Office. The ������Ƶ tag number, description, serial number and trade-in allowance information must also be shown on the final payment voucher. Based on this information, Property Management will remove traded-in equipment from the inventory records.
       2. Excess or Surplus Items: Equipment which is unserviceable, obsolete or excess to the needs of a department for any reason must be disposed of as surplus property. The department must first submit the applicable surplus request form to Property Management requesting the item be declared surplus. The form must also include the inventory number, a brief description, the current condition of the item, and the current location.
       3. Direct Sale to Other State Agencies and University Departments: Departments must contact Property Management before the sale to obtain permission, as state laws and regulations prohibit certain types of sales. When permission is obtained, Property Management is responsible for working with the department to assure that the item has been sold according to state law and regulations. The department must prepare a memo to Property Management including the inventory number, a brief description, and other relevant details before the sale.
       4. Theft or Loss of Equipment: Whenever the theft or loss of equipment is discovered the department must immediately report the loss to the University Police, including all pertinent information related to the equipment. Notification must also be sent to Property Management. The University Police are responsible for investigating the circumstances of the loss and, upon completion of the investigation, for submitting a copy of the case to Property Management. If the equipment is not recovered, the date and circumstances of the loss shall be recorded in the inventory for the current year. Property Management shall not remove the item from the inventory records until all investigative action has been completed and all attempts to recover the item failed.
           
   21. Transfer of Equipment between Departments: Departments must prepare an Equipment Transfer Form and submit it to Property Management including the inventory number, a brief description of the item being transferred, and the department to which the item is being transferred. The memo must also include the new building and room number location of the item. Property Management is responsible for verifying the transfer with the departments.
        
3. Procedures
    
   1. Departments must notify the Property Management Office before any item of equipment, furniture or fixtures is disposed of by any means, including trade-in, sale, exchange, salvaged for parts, thrown away, etc. following the guidelines set forth in this policy.
       
   2. Departments can request a trade-in by submitting an appraisal form to Property Management. The South Dakota Property Management Appraisal Sheet must be used.
      1. Appraisal forms must be saved as a word documents and emailed to Property Management at the email address indicated on InsideState under Property Management.
      2. Once Property Management receives the Appraisal Form, any restrictions per the original funding agencies terms and conditions, will be identified for approval before submitting the form for appraisal.
      3. When terms, conditions and/or restrictions if any, are met Property Management will forward the appraisal form to the South Dakota State Property Management office to get an appraised value. When the appraised value is determined the completed appraisal form will be routed back to the requesting department.
      4. The approved appraisal form must be attached to the purchase requisition which will be forwarded on to the appropriate buyer.
          
   3. Departments can declare items surplus by submitting the appropriate surplus form to Property Management. The Computer Surplus Form must be used for computer and computer items, and the Miscellaneous Surplus Form must be used for all non-computer items.
      1. Surplus forms must be saved as an Excel document and emailed to Property Management at the email address indicated on InsideState under Property Management.
      2. If the item being declared surplus is a computer item, the Computer Surplus Form must be forwarded to Property Management who will send the approved request to the Division or Technology and Security for removal. Note that Facilities and Services will not remove any equipment that falls under computer surplus unless requested by the Division of Technology and Security.
      3. If the items to be declared surplus have been identified miscellaneous surplus, the items will then be tagged by Property Management at their earliest convenience. Items should not be stored in the University hallways pending this step.
      4. Once the items have been tagged by Property Management, a list of the miscellaneous items declared surplus will be sent to Facilities & Services. Representatives from Facilities & Services will come pick up the miscellaneous surplus items at no charge at their earliest convenience. If departments call Facilities & Services to pick up the items as a designated time, the department will be charged accordingly.
      5. Every spring the University holds a surplus auction to dispose of the surplus items that are acquired over the year. In mid-February, Property Management no longer tags surplus items until after the auction in order to prepare for the sale. Department should keep this in mind when submitting surplus requests.
      6. All departments that have surplus items moved without submitting the appropriate form to Property Management will not receive funds from the sale of the surplus items at the auction. Capital Equipment that is moved to surplus without approval will not be put on the sale until all approval process has been completed.

4. Responsible Administrator

   The Vice President for Finance and Budget, or designee, is responsible for the annual and ad hoc review of this policy. The University President is responsible for approval of this policy.

Approved by President on 09/30/2015. Revised; Approved by President on 10/10/2018.

Sources: SD Codified Laws Ch. and

Associated Forms: