A. Statement of Purpose

To acquaint all University personnel with current State laws and University rules, regulations and procedures for proper safeguarding and disposal of University property.

B. Rules and Regulations

Texas State Government Code Chapter 403.271, Property Accounting, establishes the current guidelines for property accounting and responsibility. This act was amended by House Bill No. 39, enacted by the Texas Legislature, which became effective September 1, 1991. In addition, House Bill No. 39 added Subchapter L, Property Accounting, to Chapter 403 of the Government Code.

The sale or transfer of data processing equipment to employees of the University is prohibited as per Board of Regents Rules Regulation Part II Chapter VII Sec. 7.3 Disposal of Surplus or Salvage Data Processing Equipment. University of Texas System Board of Regents' Rules and Regulations, Series 80201.

Surplus or salvage data processing equipment, as defined by Texas Government Code Chapter 2175, Surplus and Salvage Property Guidelines. For disposal exceptions for Institutions of Higher Education, see the Texas State Government Code Chapter 2175.304.

Article IX, Section 9.03 of Senate Bill 1 from the 77th Legislative Session 2002-2003 Biennium clarifies the penalties for excessive lost or stolen property. See the Legislative Budget Board web site for information.

Texas Government Code Chapter 2175, Surplus and Salvage Property Guidelines. For disposal exceptions for Institutions of Higher Education, see the Texas State Government Code Chapter 2175.304.

The Vice President and Chief Financial Officer is the President's designated Property Manager for The University of Texas at Austin. Department heads are responsible for all University property in their care. Department heads are further responsible to ensure that the annual physical inventory of University property assigned to their department is completed each year. The annual physical inventory process and timeline are prescribed by the property manager and State law. See Texas State Government Code Chapter 403.272, Responsibility for Property Accounting, and 403.273, Property Manager; Property Inventory.

The property manager is responsible for maintaining property records and prescribing reports required from department heads. These records are maintained by Inventory Services in the Office of Accounting.

Property is categorized as either "capital," "controlled," or "non-capital" (expensed). Capital assets consist of non-consumable items having a value of five thousand dollars ($5,000) or more. Controlled assets are items that the State Comptroller requires agencies and institutions to report to the State Property Accounting (SPA) system. Controlled assets consist of non-consumable items having a value of $500 to $4,999.99 per unit, and firearms regardless of value. Capital and controlled items are placed on the University's inventory system and are accounted for each year by a physical inventory. New acquisitions costing less than $5,000 that do not meet the criteria for capital or controlled equipment are considered non-capitalized. Department heads are also responsible for the custody, safekeeping, and proper use of such non-capitalized items.