15-SECURITY, THEFT CONTROL, LOSS AND DAMAGE

15.10 DAMAGED OR DESTROYED EQUIPMENT
EFFECTIVE
6/1/00		LAST UPDATE
12/01/02

PURPOSE: To provide direction to university departments in reporting damage or destruction of University and sponsored owned equipment.
AUTHORITY: Powers and duties of the University President, ABOR Policy 3-801 and 3-802

Below authority applies ONLY to Federal Property (acquisition dollars or title):

    48 Code of Federal Regulations 45.502 and 45.504
    Office of Management and Budget Circular A-110
POLICY: University departments are responsible for reporting all instances of damage or destruction of capital equipment to the Department of Risk Management as soon as the accident, loss, fire or vandalism becomes known to departmental personnel. Damage and destruction of University or sponsored owned capital equipment shall be investigated and fully documented.

These reports are required to enable the University to recover from the Arizona Self- Insurance Program all or part of the value of capital equipment damaged or destroyed. Further, it is to recognize that the University is responsible for damaged or destroyed government and other sponsor owned property which may require reimbursement to the sponsor.

The requirement for these reports is also a means of measuring a department's performance in providing security over its equipment and safety in the use and operation of equipment.

PROCEDURE:

  1. GENERAL:
      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 know 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 Fixed Assets System (FFX) are also accepted as proof of ownership.
      UNIVERSITY POLICE
      DEPARTMENT
      1. Investigate as circumstances require and prepare a police report detailing the incident.
      CUSTODIAL
      DEPARTMENT
      1. All university personnel are to cooperate with the University Police Department investigation.

      2. When destruction of capital equipment makes disposal through Surplus Property impractical, the department head shall send a memorandum to the Property Management -FSO describing the circumstances of the destruction and requesting the removal of the destroyed capital equipment from the active records of the Fixed Assets System (FFX). 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-FSO
      1. Remove the destroyed property from the active records of the Fixed Assets System (FFX). An automatic notice is issued to the custodial department.

  2. UNIVERSITY OWNED CAPITAL EQUIPMENT:

      1. When damage to University titled capital equipment leads to a determination to dispose, prepare a Request for Authorization to Dispose of Property form and forward to Surplus Property.
      SURPLUS PROPERTY
      1. Sell or dispose of the damaged capital equipment as prescribed in the Surplus Property disposal procedures.

      2. Notify Property Management-FSO when disposal of the damaged property is complete. The notice is to include the property A-tag number(s).
      PROPERTY
      MANAGEMENT-FSO
      1. Remove the damaged University titled property from the active property records of the Fixed Assets System (FFX). An automatic notice is issued to the custodial department.

  3. SPONSOR OWNED EQUIPMENT:

      CUSTODIAL
      DEPARTMENT
      1. When destroyed capital equipment includes sponsor owned items, the department head shall send a copy of the memorandum (above) prepared for Property Mamagement-FSO 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
      1. Shall 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.

      2. Shall 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.

      3. 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-FSO with copies to the department and Sponsored Project Services property folder for the sponsor.
      PROPERTY
      MANAGEMENT-FSO
      1. Change the titleholder to University in the active records of the University's Fixed Assets System (FFX).
      CUSTODIAL
      DEPARTMENT
      1. Prepare a Request for Authorization to Dispose of Property Form on the damaged property and forward to the Surplus Property Office.
      SURPLUS PROPERTY
      1. Sell or dispose of the damaged capital equipment as described in the Surplus Property disposal procedures.

      2. Notify the FSO Property Management when disposal of the damaged property is complete. The notice is to include the property A-tag number(s).
      PROPERTY
      MANAGEMENT-FSO
      1. Remove the damaged University titled property from the active property records of the Fixed Assets System (FFX). An automatic notice is issued to the custodial department.
      CUSTODIAL
      DEPARTMENT
      1. University departments are responsible for reimbursement of sponsors for damaged or destroyed equipment when a valid request is made by the sponsor.

      2. If the sponsor request reimbursement, send to the Sponsored Projects Services Property Administrator a copy of the reimbursement payment documents.
      SPS PROPERTY
      ADMINISTRATOR
      1. 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-FSO with copies to the department and Sponsored Project Services property folder for the sponsor.
      PROPERTY
      MANAGEMENT-FSO
      1. Change the titleholder to University in the active records of the University's Fixed Assets System (FFX).
      CUSTODIAL
      DEPARTMENT
      1. Prepare a Request for Authorization to Dispose of Property form on the damaged property and forward to the Surplus Property Office.
      SURPLUS PROPERTY
      1. Sell or dispose of the damaged capital equipment as prescribe in the Surplus Property disposal procedures.

      2. Notify Property Management-FSO when disposal of the damaged property is complete. The notice is to include the property A-tag number(s).
      PROPERTY
      MANAGEMENT-FSO
      1. Remove the damaged University titled property from the active property records of the Fixed Assets System (FFX). An automatic notice is issued to the custodial department.

    CROSS REFERENCE:

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