Property Liability (B-34)
Original Implementation: April 22, 2003
Last Revision: April 23, 2013
Any university employee entrusted with state property may be held financially liable for damaged, destroyed, lost, or stolen property as outlined in Texas Government Code § 403.275.
All university employees must complete the property liability acknowledgement form at new employee orientation.
Equipment managers will be required to sign a certification of physical inventory with change in department head, accepting responsibility for all department property within 30 days of assuming their duties. The department head will be listed as equipment manager on property records and is responsible for identifying custodians who have been entrusted with the care and safekeeping of specific pieces of property.
Employees taking equipment off campus will be required to complete a removal of property from campus form. These forms will include the following statement:
“I understand that I may be held financially liable for lost, damaged and stolen property as outlined in Texas Government Code § 403.275.”
A person is financially liable for any property loss sustained by the state if:
- 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;
- 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
- 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.
After conducting an investigation, if the property manager has reasonable cause to believe that any property in the agency's possession has been stolen, lost, destroyed, or damaged through the negligence of any state official or employee, the property manager shall report the loss, destruction, or damage to audit services, the vice president for the division, the vice president for finance and administration, the director of procurement, the director of ITS (computer only), and UPD (stolen equipment only). In addition, the property manager in consultation with the equipment manager and/or audit services will determine whether replacement of property or reimbursement of property value best meets the needs of the university. The value of the loss to the university will be determined by considering the value of the property and the value to SFA as outlined in the property management manual.
If the employee refuses or disregards the request for replacement or reimbursement, the university may pursue action against the employee through the Office of the Attorney General or employ other efforts to obtain reimbursement.
Cross Reference: Texas Gov’t Code §§ 403.275, 2203.004; Property Inventory and Management (C-42)
Responsible for Implementation: Vice President for Finance and Administration
Contact for Revision: Director of Procurement and Property Services/HUB Coordinator
Forms: Property Liability Acknowledgement
Board Committee Assignment: Finance and Audit