EFFECTIVE DATE: September 16, 2014
ISSUE #: 5
PRESIDENT: William Flores
PURPOSE
This PS defines the means by which the University of Houston-Downtown acquires capital
and controlled property and outlines the procedures regarding the recording of capital and
controlled property acquisitions on the Property Management System.
DEFINITIONS
2.1 Capital Property: Property valued at $5,000 or over that has an estimated useful life of
at least one year.
2.2 Controlled Property: State designated property that must be secured and tracked due to
the high risk nature of the item. The property is valued between $500 and $4,999 and
has a useful life of at least one year. The specific assets include: desktop and laptop
computers, all firearms regardless of amount, stereo systems, cameras, video cameras,
video recorder/laserdisc players, camcorders, television/VCR combinations, television
sets, video cassette recorders, and data projectors.
POLICY
3.1 Capital and controlled property may be acquired by the university through the
purchasing process, as loans from the federal government, via interagency transfers, or
as gifts-in-kind. All capital and controlled property - regardless of its acquisition
source, funding (state appropriations, local funds, or grants), or purchasing mechanism
employed (purchase orders, direct vouchers, or service center requisitions) - must be
accounted for through Property Management inventory records.
3.2 The term "purchasing" may also refer to the procurement of goods from an on-campus
service/auxiliary department, such as a department which offers computers and
computer parts to university customers. Property Management is notified of capital or
controlled property purchases through copies of the purchase orders, vouchers, and
service center requisitions made available by Accounts Payable and General
Accounting.
3.3 Property Management inventories capital and controlled property on loan to the
university. The department receiving loaned items must notify Property Management
upon acquisition and provide the model, serial number, and location of the property.
The title of the property remains with the lender. When the department has no further
need for this property, both the lender and Property Management must be notified
immediately.
3.4 Title to any capital or controlled property purchased by UHD is vested in the university
and the State of Texas. Property purchased with sponsored project funds is also subject
to sponsor regulations regarding title. Title to property transferred from another
government agency or educational institution is vested in UHD and the State of Texas
unless the former owner notifies the university in writing of other arrangements or
conditions. Title to donated property is vested in UHD and the State of Texas by virtue
of the fact UHD is a state agency.
3.5 UHD is the sole agent to accept contracts and grants awarded to the university, and it is
responsible for the disposal of any property furnished by those awards. Upon
completion of a contract or grant, title to all property is transferred to the university
immediately, unless the contract or grant requests title to remain with the sponsor. If a
contract or grant is terminated, canceled, or transferred, the Office of the Vice President
for Administration & Finance will work with the sponsor to determine the status of the
property obtained.
3.6 When a department purchases non-maintenance, non-consumable items that enhance
the functionality of existing equipment and increase its capital value, the purchase price
of the item(s) is/(are) considered an "Added Cost" and capitalized. The modifications,
attachments, and/or accessories should be permanently installed with a combined value
of the original equipment and added cost at or exceeding $5,000.00 to qualify for added
cost capitalization. If the combined value of the original item and the added cost do not
exceed $5,000.00, the added cost should not be capitalized.
3.7 It may be necessary for a department to fabricate or assemble equipment in order to
achieve the functionality of the capital or controlled property. Property Management
must be notified of any such fabrications. All purchases of materials and components to
be used in the construction and/or assembly of the fabricated equipment must be coded
using property sub codes, regardless of the cost of the materials or components.
PROCEDURES
4.1 Capital or controlled property acquired from another state agency will be designated as
a "transfer," and the change in ownership must be reflected on the property inventory
records of both agencies.
4.1.1 Transfers can involve either a purchase (i.e., the acquisition of police vehicles
through the Department of Public Safety) or the uncompensated shift of surplus
equipment from one state agency to another. The Texas Surplus Property Agency makes available all surplus equipment of the state, which may be
acquired with permission of the departmental Property Custodian.
4.1.2 The United States federal government also makes available surplus equipment,
which may be acquired with permission of the Property Custodian and the
Property Manager.
4.2 Capital or controlled property received by departments as gifts from outside donors
must be recorded in the Property Management System. Notification must also be sent to
University Advancement. Departments considering the acceptance of gifts of property
should contact the Development Office for specific guidance in this matter.
4.2.1 All capital or controlled property received as gifts will be entered into the
Property Management System with a value determined in one of the following
manners:
4.2.1.1 Invoices or other documents stating original cost
4.2.1.2 Manufacturer price list
4.2.1.3 Distributor and supply company catalogs
4.2.1.4 Industry publications and trade journals
4.2.1.5 Public records and tax assessment records
4.2.1.6 Realtors, appraisers, and bankers
4.2.2 All supporting documentation for valuing gifts of capital or controlled property
will be maintained in the Property Management Office for the useful life of the
items.
EXHIBITS
There are no exhibits associated with this policy.
REVIEW PROCESS
Responsible Party (Reviewer): Property Manager
Review: Every three years on or before November 1st.
Signed original on file in Employment Services and Operations.
POLICY HISTORY
Issue #1: 03/23/94
Issue #2: 03/15/99
ssue #3: 02/28/00
Issue #4: 11/05/10
REFERENCES
Texas Surplus Property Agency
