Property Control
The Property Control Department oversees the management, tracking, and proper handling of all University assets. Its responsibilities include:
- Tagging newly acquired capital equipment with a unique identification number (Property Control Number) and recording the asset in the property control system.
- Managing annual physical inventories of all capital equipment, including conducting spot checks.
- Maintaining accurate records of capital assets, including location, acquisition date, value, and any improvements or upgrades.
- Supporting audits, including those by the Auditor General’s Office, the Arizona Board of Regents (ABOR) and the University.
Asset Recording and Cost
- Fixed assets are recorded at cost, which includes all normal and necessary expenses to make the asset operational. Ancillary costs include freight, sales/use taxes, installation, assembly, and testing charges.
- All assets with an original acquisition cost of $5,000 or more, must be physically tagged and recorded in the University’s asset inventory system. Sales/use tax, freight, and installation costs associated with any capital purchase are considered part of the value of the equipment.
- Inventory records contain: original cost, net value, funding source, purchasing document number, acquisition/disposal date, current location, serial/model number, useful life, last inventory date, and vendor.
Assets That Require Tagging
Capital Assets (use Capital Account) Accordion Closed
Contact Property Administration once you have received a capital item.
- Individual items valued at $5,000 or more
- Vehicles valued at $5,000 or more
- Intangible assets (see CMP 140)
Non-Capital Assets (do not use Capital Account) Accordion Closed
- Vehicles under $5,000
- Other items at departmental request with a purchase document (e.g., cameras, projectors)
- Computers under $5,000 are tagged and managed by the University’s Information Technology Services department. For more information email: ComputerPurchasing@nau.edu
Donated Property Accordion Closed
- Departments receiving gifts must complete a “Gift in Kind” report, obtain required signatures (Vice President, Provost), and submit a copy to Property Administration. Contact the NAU Foundation at 928-523-2012 for forms.
University Vehicles Accordion Closed
- Purchased with state or local funds, tagged, and added to the asset system. Titles and records maintained by Property Administration. For additional information call: NAU Transportation Service Center, 928-523-2469
Maintenance, Betterments, and Replacements Accordion Closed
- Maintenance/Repairs: Costs to maintain or restore equipment are not capitalized. Includes floor/wall coverings unless part of remodeling.
- Betterments: Capitalized if $5,000 or more; cosmetic improvements are not capitalized.
- Replacement Parts: Generally, are not capitalized unless they significantly increase value or useful life.
Trade-ins Accordion Closed
- Approval must be obtained from Property Control before trading University assets.
- Complete a PCA form with the asset number, vendor, and trade-in quote before initiating a requisition.
Personally Owned Equipment Accordion Closed
- NAU is not responsible for personally owned items.
- Individuals should mark ownership, provide a list to their department head, and retain proof of ownership.
Transfers and Off-Campus Use Accordion Closed
- Transfers within/between departments: Complete a PCA form with signatures, updated Speedchart number, and new location.
- Off-campus use: Requires pre-approval with the Approval for Off-Campus Use Form, for periods from 2 weeks up to 1 year. Renewal required for extensions beyond one year.
Assets at Off-site Locations Accordion Closed
- Tag assets before leaving campus, record off-site location and contact person.
- If assets arrive untagged, Property Administration will coordinate tagging.
- Off-site assets remain part of the department’s inventory.
Disposal of University Equipment Accordion Closed
- All University property must be disposed of through Property Surplus.
- Unauthorized disposal (donation, sale, cannibalization, etc.) may result in disciplinary action.
- Contact Property Surplus: 928-523-4163
Lost, Stolen, or Destroyed Assets
- Report all incidents to Property Administration within 10 days. Assistance is provided for police reports and insurance claims.
Missing Accordion Closed
- Complete PCA form; signed by Dean/Director and Provost/Vice President. Assets must be missing two consecutive years before removal from the University’s asset inventory.
Stolen Accordion Closed
- File police report, notify Risk Management, complete PCA form with Director’s signature.
Impaired Accordion Closed
- Assets with significant and unexpected decline in service utility. Indicators include physical damage, regulatory changes, obsolescence, or changes in usage.
Destroyed Accordion Closed
- Complete PCA form. Police report required for intentional destruction (except vehicle accidents). Notify Risk Management if insurance claim involved.
Cannibalized Accordion Closed
- Contact Property Administration before using equipment for parts. Complete PCA form with Dean/Director signature.
Records Retention
- Property Control retains all documentation supporting the physical inventory.
- Records are kept in accordance with the State of Arizona Records Retention Schedule, with a minimum of three years beyond disposal.
Definitions
- Asset: Any item of real property or Capital Equipment
- Betterments: Improvements that extend life, efficiency, or change use
- Cannibalization: Disassembly rendering equipment unusable
- Capital Equipment: Cost $5,000+ with life ≥1 year
- Depreciation: Recognition of asset’s value loss over time
- Donated Property: Transferred to NAU at no cost
- Gift: Equipment gifted to the University, recorded at fair market value at date of Gift
- Inventorial Equipment: Assets with NAU ID# or designated by sponsor/grantor
- Lease: Right to use property; title remains with lessor
- Lease/Purchase: Lease with option to purchase
- PCA: Property Control Authorization form
- Surplus Property: Excess items not needed by department
- Tag: The act of affixing or otherwise identifying University equipment with a University property control number
- Trade-in: Used equipment applied to new acquisition cost
- University: Northern Arizona University