PAP.2.13.030 Basic Principles Property and Equipment Management System

(a) Location of Records. All records pertaining to this system shall be located in the accounting office. Forms for this system are illustrated in Appendix C – Sample Accounting Forms and are as follows:

(1) Additions of Property Inventory. This form serves as the asset record for each item of equipment acquired. This form is generated by the custodian of purchased equipment. The Chief Procurement Officer is responsible for maintaining the property management system and the recording of general fixed assets in the system. The Chief Procurement Officer shall use this form to document the addition of property, equipment, or inventory.

(2) Property Inventory Data Sheet. These forms are used for taking the bi-annual physical inventory. This form, completed by each Department Director, provides custodian, description, condition and location of all property and equipment. Also, it is periodically updated as to the condition and location of property and equipment. A review of property and equipment should be carried out at least on a yearly basis by the Chief Procurement Officer, or designee.

(3) Property Disposition Authorization. This form is to be used to authorize the sale, trade-in or scrapping of any piece of property. This form, completed by the Custodian, provides reason for disposal, description, condition and location of all property and equipment. All disposals require the approval of the Department Director, and authorization of the Chief Procurement Officer. As required by law, the Department Director shall also obtain the approval of their granting agency for the disposal of any property purchased with funds from a granting agency.

(4) Transfer of Property. This is used to trace the movement of an asset from one department or location to another. This form, completed by the Custodian, provides reason for transfer, description, condition and location of all property and equipment. All transfers require the Department Director, and authorization of the Chief Procurement Officer. Forms should be filled out when an employee terminates employment or a new employee joins the Tribe.

(b) Location Units.

(1) Property location units shall be established for the Tribe to provide control and accountability of property items. The location unit will be identified and clearly assigned on the "Addition of Property Inventory" form when an item of equipment is acquired.

(2) Location units shall be based on physical areas or functional responsibility. These areas shall be defined by the Department Directors. The Department Directors shall also identify those individuals who will be responsible for the property located in a particular location unit. These individuals will be referred to as "Custodians."

(1) The data base is the backbone of the property management system. The sole purpose of all of the forms and procedures used in this system is to keep the information in the data base accurate and up to date.

(2) The data base contains the following information of each item or property:

(A) Description of the item;

(B) Identification tag number;

(D) Date of disposition;

(E) Serial number and or model number of the item;

(F) Program (source of funds for the purchase of the item);

(G) Department location classification;

(H) Whether the item is owned or leased;

(I) Cost of / or estimated value;

(J) Federal funds used to acquire the asset; and

(K) If applicable the sales price and whether or not the item is insured.

(L) Condition

(3) The totals from the data base will be reconciled with the current period financial statements and the general fixed assets account group on an annual basis by the Chief Procurement Officer.

(d) Property Register.

(1) The "Property Register" is a report generated from the information contained in the data base. This report can present this information in any format required by management simply by changing the sort orders. The information on the "Property Register" is used to:

(A) Account for all identification numbers;

(B) Provide for a method for locating an identification number in the equipment record files;

(D) Provide an accounting record for each item of equipment owned, leased or disposed of per the property procedure manual;

(E) Provide cumulative dollar values which should correspond with the general ledger balances;

(F) Assure that all items determined to be insured, are insured and that the organization is not paying insurance for items that it does not own or items that have been sold, traded, or disposed of.

(e) Filing and Retention of Property Inventory Records. Asset records shall be retained and maintained by the accounting office. They shall be filed by each Department Director. When an equipment item is disposed of, the asset record shall be retained for three (3) years after the audit report has been issued.