ACCOUNTING: INVENTORIES

An institution of higher education, including a college district, shall account for all personal property as defined by the comptroller under Government Code 403.272. At all times, the property records of an institution of higher education must accurately reflect the personal property possessed by the system or institution. Gov’t Code 403.2715(c)

Property Manager

The chief executive officer of each institution of higher education shall designate one or more property managers. The property manager shall maintain the records required and be the custodian of all personal property possessed by the institution. Gov’t Code 403.2715(d)

State Auditor

The state auditor, based on a risk assessment and subject to the legislative audit committee's approval of including the examination in the audit plan under Government Code 321.013, may periodically examine property records or inventory as necessary to determine if controls are adequate to safeguard state property. Gov’t Code 403.2715(e), .273(h)

Liability

A person is pecuniarily liable for the loss sustained by the state if:

1. Agency property disappears, as a result of the failure of the head of an agency, property manager, or agency employee

entrusted with the property to exercise reasonable care for its safekeeping;

2. Agency property deteriorates as a result of the failure of the head of an agency, property manager, or agency employee

entrusted with the property to exercise reasonable care to maintain and service the property; or

3. Agency property is damaged or destroyed as a result of an intentional wrongful act or of a negligent act of any state official

or employee.

The liability may attach on a joint and several basis to more than one person in a particular instance.

Gov’t Code 403.2715(e), .275

Applicability of

Property Accounting

Statutes

Except as provided by this policy, Government Code Chapter 403, Subchapter L does not apply to an institution of higher education.

Gov’t Code 403.2715(b)