Informational Circular 01-A-021
Attachment
June 21, 2001
SAFE GUARDING STATE ASSETS
Each state agency is responsible for establishing a policy for safeguarding
financial and physical assets and being alert to possible exposures, errors and
irregularities. Management must be aware of internal control weaknesses that can
lead to or permit misuse, misappropriation, or destruction of assets. In
addition, each state employee has stewardship responsibilities for state agency
assets assigned to him/her or otherwise in their control.
Property Management Officer
Each state agency should appoint an individual to serve as the lead person
regarding all inventory and asset management issues within the state agency, and
is responsible for distributing all statewide and agency-specific asset
management policies throughout the state agency. This employee is also
responsible for conducting the agency's annual physical inventory.
Property Criteria
Only items with a value of $5,000 or more and with a useful life exceeding
one year are reported on the fixed asset listing for the agency. However, the
state agency also has a responsibility to safeguard all other assets including
desirable items like calculators, cameras, recorders, power tools, office
machines, notebook computers, software, weapons, etc. The property management
officer, or designee, is responsible for ensuring these and similar assets are
not simply "lost" over time, and that they are disposed of in
accordance with state surplus property rules and procedures.
Ownership
The state agency owns all property purchased with State of Kansas funds and
all property received as gifts. Although title to property purchased with funds
from a grant or contract may not be vested in the state agency, the
state agency should exercise the responsibilities of ownership for such
property. Regardless of which state agency organizational unit ordered the item,
the fund cited, or the particular budget expensed, the principle of state
ownership prevails.
Usage
State of Kansas assets should only be used in the conduct of official state
business. Property may not be rented or loaned to any person or group for
personal use.
Stolen Assets
An employee discovering the theft of property must report the
theft to his/her supervisor. This is to be done as soon as possible, but no
later than three days from the date of discovery. The supervisor should then
notify the property management officer immediately. It is the responsibility of
the property management officer to report the theft to the appropriate law
enforcement agency.
Disposal of Property
State agency property must be disposed of in accordance with Surplus Property
policies and procedures, and under the direction of the agency Property Control
Officer.
