15.10 Damaged or Destroyed Equipment

PURPOSE:

To provide direction to University departments in reporting damage or destruction of University and sponsored owned equipment.

SOURCE:   

Powers and duties of the University President, ABOR Policy 3-801 and 3-802

Authority below applies ONLY to Federal Property (acquisition dollars or title):

• Government Property, 48 C.F.R. § 45
• Government Property, 48 C.F.R. § 52.245-1
• Government Property, 48 C.F.R. § 245
• Government Property, 48 C.F.R. § 1852.245
• Uniform Guidance, 2 C.F.R. § 200

RESPONSIBILITY

    ACTION

CUSTODIAL DEPARTMENTS

1. Notify the University Police Department, as the circumstances require, and the Department of Risk Management, as soon as the damage or destruction of capital equipment is known to departmental personnel.
2. Prepare a Property Loss Report Form and submit to the Department of Risk Management. Attach a copy of the original records of ownership (purchase order or invoice) and other documents, as required by the Department of Risk Management. Accounts Payable retains copies of invoices for five (5) years. Property records from the University's Capital Asset Module (CAM) are also accepted as proof of ownership. 

UA POLICE DEPARTMENT

3. Investigate as circumstances require and prepare a police report detailing the incident.

CUSTODIAL DEPARTMENT

4. All university personnel are to cooperate with the University Police Department investigation.
5. When destruction of capital equipment makes disposal through Surplus Property impractical, the department head shall send a memorandum to Property Management describing the circumstances of the destruction and requesting the removal of the destroyed capital equipment from the active records of the Capital Asset Module (CAM). A list of property A-tags, a copy of the Property Loss Report, and concurring memorandum from the Surplus Property Administrator must be attached. 

PROPERTY MANAGEMENT

6. Remove the destroyed property from the active records of the Capital Asset Module (CAM). An asset control sheet is issued to the custodial department.

CUSTODIAL DEPARTMENTS

1. When damage to University titled capital equipment leads to a determination to dispose, log onto the asset management software and fill out the Disposal Requests.

SURPLUS PROPERTY

2. Sell or dispose of the damaged capital equipment as prescribed in the Surplus Property disposal procedures.
3. Record the transaction in the asset management software when disposal of the damaged property is complete, including the property A-tag number(s).

PROPERTY MANAGEMENT

4. Remove the damaged University titled property from the active property records of the Capital Asset Module (CAM). An asset control sheet is issued to the custodial department.

CUSTODIAL DEPARTMENT

1. When destroyed capital equipment includes sponsor owned items, the department head shall send a copy of the memorandum (#5 General above) prepared for Property Management and supporting documents to Sponsored Projects Services Property Administrator.
2. When damage to sponsor owned capital equipment leads to a determination to dispose, send a memorandum to the Sponsored Projects Services Property Administrator requesting relief of accountability or disposition instructions. 

SPS PROPERTY ADMINISTRATOR

3. Notify the contracting/grants officer of the federal awarding agency or other sponsor of the damage or destruction. The information available regarding the circumstances of the loss will be provided to the sponsor. As circumstances indicate, a request will be made for relief of accountability or disposition instructions from the sponsor.
4. Advise the University department as to the determination of the sponsor as to the granting of relief of accountability, disposition instructions or sponsor request for reimbursement for the loss of the destroyed or damaged property.
5. If the sponsor grants relief of accountability or disposition instructions abandoning damaged property to the University, prepare a Property Record Change Form to change title to the University. Attach supporting documents and send to Property Management with copies to the department and Sponsored Projects Services property folder for the sponsor. 

PROPERTY MANAGEMENT

6. Change the titleholder to University in the active records of the University's Capital Asset Module (CAM).

CUSTODIAL DEPARTMENT

7. Log onto the asset management software and fill out the Disposal Requests on the damaged property. 

SURPLUS PROPERTY

8. Sell or dispose of the damaged capital equipment as described in the Surplus Property disposal procedures.
9. Record the transaction in the asset management software when disposal of the damaged property is complete, including the property A-tag number(s). 

PROPERTY MANAGEMENT

10. Remove the damaged University titled property from the active property records of the Capital Asset Module (CAM). An asset control sheet is issued to the custodial department.

CUSTODIAL DEPARTMENT

11. University departments are responsible for reimbursement of sponsors for damaged or destroyed equipment when a valid request is made by the sponsor.
12. If the sponsor request reimbursement, send to the Sponsored Projects Services Property Administrator a copy of the reimbursement payment documents.

SPS PROPERTY ADMINISTRATOR

13. Upon payment of the reimbursement to the sponsor, prepare a Property Record Change Form to change the titleholder to University, attach supporting documents and send to Property Management with copies to the department and Sponsored Projects Services property folder for the sponsor. 

PROPERTY MANAGEMENT

14. Change the titleholder to University in the active records of the University's Capital Asset Module (CAM).

CUSTODIAL DEPARTMENT

15. Log onto the asset management software and fill out the Disposal Requests on the damaged property. 

SURPLUS PROPERTY

26. Sell or dispose of the damaged capital equipment as prescribe in the Surplus Property disposal procedures.
27. Record the transaction in the asset management software when disposal of the damaged property is complete, including the property A-tag number(s). 

PROPERTY MANAGEMENT

28. Remove the damaged University titled property from the active property records of the Capital Asset Module (CAM). An asset control sheet is issued to the custodial department.