BUSINESS AND SUPPORT SERVICES
ACCOUNTING INVENTORIES

Procedure

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PROPERTY MANAGER

An institution of higher education, including a college district, shall account for all personal property as defined by the comptroller un-der Government Code 403.272. At all times, the property records of an institution of higher education must accurately reflect the personal property possessed by the system or institution.

The chief executive officer of each institution of higher education shall designate one or more property managers. The property manager shall maintain the records required and be the custodian of all personal property possessed by the institution.

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PROPERTY TRANSFER

A state agency, including a college district or other institution of higher education or a university system, may transfer any personal property of the state in its possession to another state agency with or without reimbursement between the agencies.

When personal property in the possession of one state agency is transferred to the possession of another state agency the transfers must be reported immediately to the Director of Business Services and Cashiers Office by the transferor and the transferee on the forms prescribed.

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STATE AUDITOR

The state auditor, based on a risk assessment and subject to the legislative audit committee’s approval of including the examination in the audit plan under Government Code 321.013, may periodically examine property records or inventory as necessary to determine if controls are adequate to safeguard state property.

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LIABILITY

A person is pecuniary liable for the loss sustained by the state if:

• Agency property disappears, as a result of the failure of the head of an agency, property manager, or agency employee entrusted with the property to exercise reasonable care for its safekeeping;
• Agency property deteriorates as a result of the failure of the head of an agency, property manager, or agency employee entrusted with the property to exercise reasonable care to maintain and service the property; or
• Agency property is damaged or destroyed as a result of an intentional wrongful act or of a negligent act of any state official or employee.

The liability may attach on a joint and several basis to more than one person in a particular instance.

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APPLICABILITY OF PROPERTY ACCOUNTING STATUES

Except as provided by this policy, Government Code Chapter 403, Subchapter L does not apply to an institution of higher education.

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Approved: October 2, 2015
Updated: August 13, 2019