Property Control

Contact Property Administration once you have received a capital item.

Use the correct Capital PeopleSoft Account

• Individual items that have a value of $5000.00 or more
• Vehicles that have a value of $5000.00 or more
• Intangible Assets – See CMP 140

Do not use a Capital PeopleSoft Account

• All Tablets must be tagged with a NAU Asset number
• Vehicles less than $5000.00 are non-capital but must be tagged with a NAU Asset number
• See Property Administration’s website for directions on tagging.
• All Non-Capital computers (<5000.00) will be tagged and managed by ITS, for more information contact ComputerPurchasing@nau.edu
• At the department’s request, Property Administration can also tag items that do not fall into the above category if a purchasing document is supplied ( e.g. cameras, projectors and items that can easily walk away.)

The department acquiring the gift acquires all documentation transferring title of the equipment to the university. Completes a “gift in kind” report and obtains the required signatures accepting the equipment on behalf of the University (Vice President, Provost). Submits a copy of the “gift in kind” form to Property Administration (Contact the Northern Arizona University Foundation at 928-523-2012 for the gift in kind report.

When a vehicle is purchased with state or local funds it must be tagged and added to the asset system. All pertinent information related to University vehicles, including the original vehicle title, is maintained in the Property Administration office. For other information on University vehicles, please contact the NAU Transportation Service Center at 928-523-2469.

Expenditures for maintenance are those required to maintain equipment in good working condition. Repairs are those expenditures required to bring equipment back into good working condition. Neither expenditure extends the intended useful life or changes the intended purpose of the asset. Therefore, costs incurred for maintenance and repairs are not capitalized. Floor and wall covering replacements (e.g., carpet, floor tile, and wallpaper) are considered maintenance and repairs, except when done in conjunction with a remodeling project.

Betterments are capitalized if they meet the minimum requirements for capitalization ($5,000.00). Alterations made solely for cosmetic purposes are not capitalized.

Replacement parts generally do not increase the value and/or intended useful life of an asset. Therefore, replacement parts are generally not capitalized. However, if a significant increase in value or useful life is provided through a replacement, the guidelines for betterments are to be followed.

Before a department trades a University asset for a new piece of equipment, approval must be obtained from Property Control (523-6391). A PCA form must be completed for the asset number of the item being traded in, identifying the vendor and providing the quote with the trade in price prior to initiating a requisition, so the appropriate records can be updated.

NAU accepts no responsibility for personally owned equipment lost or stolen at NAU. Individuals who have personally owned equipment on campus should take the following precautions to avoid the possibility of its being mistaken for NAU equipment:

• Mark the equipment for identification of ownership.
• Provide the department head with a list of personally owned equipment.
• Should confusion arise, proof of ownership rests with the individual, not NAU.

If Capital equipment, Tablets or NAU Tagged Non-Capital assets are transferred between departments, a PCA form must be completed in order to change location and the transfer of custody to the acquiring department.

Transfers of NAU property between departments require two signatures, one from the releasing department and one from the receiving. (Please include phone numbers too). The Speedchart number and Building/Location that it is being transferred to must be noted on the PCA form. The individuals who sign the PCA can be whoever is designated to do so by the departments completing the transfer.

NAU equipment may be removed from University premises for official University business only, not for personal use. There are no exceptions. Pre-approval must be obtained before the equipment leaves Campus by completing an Approval for Off Campus Use Form. Off-campus loans cover a time period of a two week minimum to a maximum of one year. If property on loan is required for use in excess of the one year maximum, the loan must be renewed before the loan period expires. In this instance (for loan renewals), please use the same form above and circle the appropriate box on the form denoting a loan renewal.

Some assets are located at NAU affiliated sites off-campus. This situation treated differently than an off-campus loan of equipment to an individual.

When newly acquired assets are to be used at an off-site NAU location, the asset is to be tagged prior to leaving campus and all appropriate information recorded, including the address of where the asset is to be located and a contact person for further information. If an asset has been delivered to an off-campus site before it has been tagged, the “responsible person” listed on the requisition will be contacted for the name, address, phone number of the remote site, and the make, model and serial number. An NAU ID tag will then be issued to those in custody of the asset to affix to the item. A letter will be sent with the tag. The department must sign and return the letter to Property Administration verifying that the equipment was tagged and the information is correct. When an asset is to be relocated to an off-site location (from campus) a PCA form should be completed showing the new location. Items located at off-site locations are included on the department’s asset inventory list along with the assets located on campus.

Any and all property in the University’s custody, whether titled to the University or not, and regardless of the funds used to acquire it, is University property and can only be disposed of properly through Property Surplus.

Under no circumstances shall a department or individual give away University property. A University employee, who improperly disposes of, donates, loans, cannibalizes, sells, or gifts University property is subject to disciplinary action up to and including termination. Please contact Property Surplus at 523-4163, for further information on disposal policies.

If an asset cannot be located a PCA form must be completed. Check the “missing” box on the PCA form and list all missing items. The department Dean/Director and the Provost/Vice President must sign the PCA. Property Administration will then delete these items from the Fixed Asset Inventory Master. (Assets must be missing for a minimum of two (2) years before they can be deleted from the master list.)

The department must file a report to the NAU Police Department. The department shall also notify the Risk Management. The department shall then complete a PCA form so that the asset can be removed from the fixed asset system. The Director’s signature is required on the PCA form and the police report number.

A capital asset is considered impaired when its service utility has declined significantly and unexpectedly. Such events or changes in circumstances that may be indicative of impairment include evidence of physical damage, enactment or approval of laws or regulations or other changes in environmental factors, technological changes or evidence of obsolescence,
changes in the manner or duration of use of a capital asset, and construction stoppage. A capital asset generally should be considered impaired if both (a) the decline in service utility of the capital asset is large in magnitude and (b) the event or change in circumstance is outside the normal life cycle of the capital asset.

When assets are unintentionally destroyed due to fire, flood, human error, etc., a PCA form must be completed by the department. If the asset has been intentionally destroyed due to vandalism or criminal activity, then a police report is required and a PCA form. The only exception to the requirement for a police report is for vehicles damaged in a traffic accident.  If the destruction will be claimed against the University’s insurance, the department shall also notify the Risk Management.

When obsolete equipment is utilized as a source of parts for other similar units you must contact Property Administration prior to cannibalizing the equipment.  A PCA form must be filled out with Dean/Director signature and forwarded to Property Administration.