BF/FIN/04 - Property Control Policy

Effective August 1, 2011

II. Scope of Policy: It is the policy of the California State University (CSU) that campuses implement methodologies for the recording, tracking, and safeguarding of university property (e.g., tangible, intangible, and gifts) and the sale and licensing of intellectual property. This policy is applicable to all California State University, Stanislaus units and its related auxiliary corporations. Applicability to the auxiliaries is for adoption of process and responsibility only and is not to be construed as a transfer of liability or risk.

III. Definitions:

Auxiliary Enterprises - a program, activity, or fund source used to furnish facilities, goods or services to faculty, staff, or incidentally to the public. An Auxiliary Enterprise typically charges a fee directly related to, although not necessarily equal to, the cost of the facilities, goods or services. The distinguishing characteristic of an Auxiliary Enterprise is that it is managed on an essentially self-supporting basis. Examples are faculty, staff, and student housing, food services, college stores, faculty clubs, parking, student health services, and Extended Education. Auxiliary organizations are also considered an auxiliary enterprise.

Property: For the purpose of this policy, property is defined as the following:

• Equipment
• Intangible Assets (including but not limited to copyrights, easements, patents, software, trademarks, and websites)
• Land and land improvements
• Works of art and historical treasures
• Construction work in progress (CWIP)
• Buildings and building improvements
• Improvements, other than buildings
• Infrastructure
• Leasehold improvements
• Library books and materials

IV. Policy: The President or designee will ensure the following

• Appropriate resources are allocated and responsibility assigned for proper receipting, recording, securing, tracking, and disposal of property.
• Procedures are implemented for the timely recording of all property based on normal entry cycles. For example, equipment additions may be required to be recorded each month due to the high volume of transactions, whereas major capital improvements may be recorded annually.
• Procedures are implemented for the timely disposal of all property based on normal entry cycles.
• Procedures are implemented that require appropriate approval for the disposal of property.
• Procedures are implemented for the evaluation, acceptance, and recording of gifts of property.
  • If title is to be held by the University or an auxiliary organization that reports its financial statements using the accounting rules as promulgated by the Governmental Accounting Standards Board (GASB), then the gift should be recorded in accordance with GASB Statement No. 33, Accounting and Financial Reporting/or Non-exchange Transactions.
  • If title to the property is to be held by an auxiliary organization that reports its financial statements using the accounting rules as set forth by the Financial Accounting Standards Board (F ASB), then the gift should be recorded in accordance with the rules as summarized in Chapter 5 of the American Institute of Certified Public Accountants’ Audit and Accounting Guide: Not-for-Profit Organizations.
  • Generally, F ASB and GASB accounting rules require gifts of property to be recorded at fair value. The University will record such gifts in their records, or those of the auxiliary organization, using objective criteria.
  • When property gifts are made between the campus and one of its auxiliary or vice versa, the transaction will be recorded at historical cost as discussed in the CSU Capital Assets Guide.
• The University will evaluate and record all intangible assets in accordance with the applicable GASB statement requirements.
• All regulations for property obtained from a federal or state grant are adhered to in accordance with the respective requirements such as Office of Management and Budget
  (OMB) Circular A-110 or related state regulations.
• Campus personnel use the California State University (CSU) Capital Assets Guide as guidance for all property as it relates to capitalized costs, depreciation methods, impairment, and other such issues. The CSU Capital Assets Guide is updated annually to reflect evolving accounting and reporting requirements and is included the CSU GAAP Manual

V. Delegation of Authority: The President delegates authority for the implementation and management of the Property Control policy to the Vice President of Business & Finance (Chief Financial Officer).

Laws, State Codes, Regulations and Mandates

ICSUAM The Administration of University Property 
ICSUAM Recording Gifts of Property 
ICSUAM Intangible Assets 
EO 409 Purchase, Sale, Lease, and License of Personal Property Delegation of Authority
EO 644 Intellectual Property - Campus Policies 
EO 676 Delegation of Gift Evaluation and Acceptance to Campuses 

Related Policies and Procedures: ICSUAM The Administration of University Property, ICSUAM Recording Gifts of Property, ICSUAM Intangible Assets, EO 409 Purchase, Sale, Lease, and License of Personal Property Delegation of Authority, EO 644 Intellectual Property - Campus Policies, EO 676 Delegation of Gift Evaluation and Acceptance to Campuses 

Review History: Approved by President Hamid Shirvani on August 1, 2011.

Business & Finance Division has the primary responsibility for this policy.

Attachment(s): BF/FIN/4 - Property Control Policy  

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