Fayetteville Policies and Procedures  313.3 

University Equipment

1. Overview and Definitions
   The University is responsible for safeguarding all of its equipment. Custody and proper use of equipment is the responsibility of the various colleges and departments where the property is assigned. University employees have stewardship responsibilities for University property assigned to the employee. Employees are required to use good judgment in the use of all university equipment.
   
   For purposes of this policy, University equipment includes capitalized equipment, low value equipment, and low value – high risk equipment as defined in  Fayetteville Policies and Procedures 313.2 . University equipment also includes other items purchased, leased, or rented by or for the University, or loaned or donated to or for the University, or otherwise made available for use by the University, that may be used or sold.
   
   
2. Appropriate Use
   University equipment may only be used in the conduct of official University business.  University equipment may not be rented, loaned, or otherwise furnished to any person, group, or organization for personal use or for private use that is not formally authorized pursuant to applicable University policies.
   
   University equipment and other resources may not be used for any purpose that is illegal, unethical, dishonest, damaging to the reputation of the University, likely to subject the University to liability, or otherwise contrary to University policy.
   
   
3. Ownership and Control; Donations; Title
   The University owns and controls: (1) all equipment purchased with University funds, regardless of the funding source (unless stipulated otherwise by the funding source), regardless of the unit or person that ordered or possesses the item, and regardless of the particular budget expensed; and (2) all equipment received as a gift, donation, or contribution, regardless of which unit received or possesses the item, and regardless of whether the gift, donation, or contribution was solicited or not.  Further, this policy applies to equipment leased or rented by or for the University, or loaned or otherwise made available for use by the University.
   
   All donated, contributed, or gifted property must be reported to the appropriate Development Officer in each college, school, or unit (Development Staff). Equipment having a useful life greater than one year and an initial value of at least $2,500 should also be reported to the Property Accounting Office in Financial Affairs.
   
   Although title to equipment purchased with grant or contract funds may not be legally vested with the University, the University shall exercise the responsibilities of ownership for such equipment.
   
   Departments shall develop clear, consistent policies and procedures for management and control of all equipment. Department heads may appoint designees under their supervision to be responsible for equipment; however, the department head is primarily responsible for all equipment assigned to the department.
   
   
4. Loss, Theft, Damage, or Improper Use; Reporting Obligations
   Employees observing or otherwise aware of the apparent theft, misappropriation, abuse, misuse, illegal use, unethical use, dishonest use, or use of University equipment that is damaging to the reputation of the University or in violation of University policy should report such incidents to the custodial Dean, Director, or Associate Vice Chancellor and to the Director of Financial Affairs Compliance. In addition, employees may have time-sensitive reporting obligations under Board of Trustees Policy 350.1 (Fraud Policy), and under Ark. Code Ann. § 25-1-124, regarding loss of public funds or property.
   
   All lost or damaged University equipment must be immediately reported to the Department head of the custodial department as well as to Financial Affairs –  Property Accounting. 
   
   All stolen University equipment must also be immediately reported to the University Police Department (UAPD) or other appropriate law enforcement agencies.
   
   UAPD will report all incidents to the  Property Accounting Office, which will monitor for patterns of inadequate control of equipment. The Property Accounting Office will report apparent patterns of inadequate control of equipment to the department head of the custodial department, along with Vice Chancellors, and work with the department to develop and implement adequate controls as needed.
   
   Employees may be accountable to both civil and criminal authorities and to the University for acts that constitute violations of federal, state, or local law or University policies. The University may proceed with disciplinary action whether or not civil or criminal proceedings have been instituted against the employee. The University disciplinary proceedings may not be abated or subject to challenge solely on the grounds that the civil or criminal charges have been dismissed or reduced.
   
   Restitution will be required for theft or damage done to University property or for the improper disposal of University equipment.
   
   
5. Property Located Off-Campus
   All equipment provided by the University and not located on campus or at a site owned or leased by the University must be documented with a University Equipment Off Campus Form as well as properly recorded in Workday, including identification of the specific work location.  All such equipment will be subject to normal State and University inventory verification procedures.  See Fayetteville Policies and Procedures 412.3 for additional provisions specific to those in remote work arrangements.
   
   All lost or damaged University equipment must be immediately reported to the Department head of the custodial department as well as to Financial Affairs –  Property Accounting. 
   
   All stolen University equipment must also be immediately reported to UAPD or other appropriate law enforcement agencies.
   
   
6. Capital Equipment and Low Value Equipment Inventory, and Scanning of Inventory; Unlocated Items
   To ensure adequate control of capital equipment is maintained, physical inventory verification procedures are required. The University has established this policy to achieve consistent, accurate physical counts of inventory and related property using an effective and cost-efficient, risk-based approach. While physical inventory scanning will be performed by staff from Financial Affairs - Property Accounting, the University expects each department to actively participate in resolving unlocated/missing items as well as verifying property located off campus. Once Departments are notified of their physical inventory results, they will have two weeks to research and justify any unlocated items.  If a department does not address its unlocated items within the two weeks and has not contacted Property Accounting for assistance, or requested an extension, Property Accounting may assess the department a $500.00 penalty. 
   
   After all inventory procedures have been completed and all Workday asset records have been updated, Property Accounting will send a letter to each department head with the department’s inventory results, including a list of unlocated/unconfirmed equipment. The department chair shall sign and return the letter to Property Accounting. The letter states that in accordance with the Arkansas Financial Management Guide, Title 19, Chapter 4,  Subchapter 15, Property and Equipment Inventory, Lost or Stolen Property, the appointed individual has proceeded in the following manner regarding property on record which cannot be located:
   
   1.) Obtain the full identification of the missing property and last recorded location from Property Accounting.).
   2.) Check the last recorded location and adjacent areas. An interview should be conducted with all individuals assigned to the area where the missing property was last located according to the property records.
   3.) Conduct a search of property disposal and transfer documents to see if the property could have been turned in to the Surplus Warehouse, Marketing and Redistribution or transferred to another agency.
   4.) Establish whether the property involved may have been temporarily loaned to other activities. If so, the activities identified should be searched in an attempt to locate the missing property.
   5.) If the above actions fail to locate the missing property, all areas occupied by the department should be searched beginning with the activities most likely to have a use for the property.
   6.) If at any time during the investigation it is suspected that a theft has occurred, the matter should immediately be brought to the attention of the department head. If after notification the department head also suspects theft, the appropriate law enforcement official(s) should be contacted for investigation and further action as warranted. (See the section below captioned “Stolen Equipment”)
   7.) If at any time during the investigation process the missing property is located, the proper location shall be recorded in Workday.
   8.) At the conclusion of the investigation Property Accounting shall re-run Workday asset reports and consult with the Associate Vice Chancellor for Finance regarding any remaining unlocated/missing assets to determine what corrective actions are necessary. 
   
   If after the investigative results are presented to the Vice Chancellor for Finance and Administration (VCFA), the VCFA is satisfied that the remaining missing property cannot be located after the investigation report, a “Credit for State Property” Form (P3-19-4-1503) along with copies of the investigation report and the police report in the case of stolen property shall be prepared and submitted to the Arkansas Department of Finance and Administration-Office of Accounting for approval. Upon receipt of an approved “Credit for State Property” Form, P3-19-4-1503, the University may remove the missing property from Workday. This approval becomes part of the documentation to be used on the audit of the University's property records by the Division of Legislative Audit. The VCFA shall take any action he/she considers appropriate to prevent recurrence.
   
   
7. Stolen Equipment
   The department must notify UAPD or other appropriate law enforcement agencies of all items reported as stolen at the time the theft is discovered. Upon discovery, thefts reported to law enforcement agencies other than UAPD must also be reported to Property Accounting and the Director of Financial Affairs Compliance. In addition, employees may have time-sensitive reporting obligations under Board of Trustees Policy 350.1 (Fraud Policy), and under Ark. Code Ann. § 25-1-124, regarding loss of public funds or property.
   
   The department will need to obtain and file copies of police reports from law enforcement agencies, other than UAPD, with Property Accounting.
   
   In order to be treated as a possible theft, there must be evidence of theft other than equipment that simply cannot be located. UAPD will investigate and file an official report with Property Accounting. Property Accounting will notify the department and UAPD if there is a significant number or pattern of stolen items. In those cases, the department will need to schedule a security review to be performed by UAPD.
   
   Once the review has been performed, the department must submit a plan of action to UAPD and the VCFA to address any problems found. New equipment will NOT be approved for purchase by the department until the action plan has been filed and approved by the VCFA.
   
   
8. Discarded or Cannibalized Equipment
   In all cases, specific written permission must be obtained from the appropriate office within Financial Affairs prior to any discarding, cannibalizing or trading-in of equipment. Approval to cannibalize should be obtained from Surplus Property. Approval for trade-ins should be obtained from and coordinated through the Purchasing Office.
   
   Departments will be subject to the consequences imposed by Fayetteville Policies and Procedures 313.4 for improperly disposed equipment. Under FFP 313.4,  reimbursement of acquisition cost to the University will come from unrestricted gift funds.
   
   Items reported as stolen, discarded or cannibalized will be deleted from the department’s inventory by Property Accounting at the end of the fiscal year based upon approval from the Arkansas Department of Finance and Administration (DFA).
   
   Any items that require equipment tags are to be reported to the Property Accounting Office who will re-tag the equipment (if located on campus). Any items whose tags are not appropriately fixed to equipment should be reported to the Property Accounting Office.
   
   
9. Estimated Useful Life of Equipment
   The following are the recommended guidelines that were adopted by the University of Arkansas upon implementation of GASB34/35 for determining the useful lives of various classifications of equipment. 
   
   Type of Equipment Useful Life (in Years)

Type of Equipment	Useful Life (in Years)
Computer Equipment	3-5
Motor Vehicles	5-6
Other Office Equipment	5-7
Buses	5-10
Equipment (non-office)	7-10
Office Furnishings	7-10
Archives & Collections	10-15
Aircraft	10-15
Watercraft	10-15

Revised June 27, 2022
Revised June 28, 2017
Reformatted for Web April 2, 2014
Revised December 6, 2012
Revised August 1, 2012
Revised September 2, 2009
Revised March 21, 2007
Revised June 30, 2006
Revised July 25, 2003
Revised May 30, 2000
February 1999