What's property management and why is it important?
Property management is the process of safeguarding University property through the use of internal controls such as accurate record keeping, physical inventory checks, and communication between department equipment coordinators and central property accounting.
Property management is important as it has multiple impacts on the University.
First - All Board of Regent’s universities are required to adhere to KBOR and State of Kansas policies pertaining to acquisition, use and disposition of fixed assets ». Failure to follow these policies is not an option.
Second – Poor property management has a financial impact for the University. Departments that fail to protect and track their equipment often incur additional costs to replace poorly maintained or lost equipment. Additionally the University’s central property records are just one of many items used to calculate the University’s Facilities and Administrative Cost Reimbursement Overhead rate (F&A rate) that is negotiated with the Department of Health & Human Services (DHHS). The F&A rate is the reimbursement that the University receives from sponsored projects for use of its facilities & administration resources, and inaccurate property records can cause a reduction in this rate. This reimbursement provides the majority of annual operating funds for the Kansas Center for Research (KUCR) as well as funding for our research centers, departments and individual investigators. Therefore any potential reduction in the University’s F&A rate impacts the entire University community not just the department responsible for the property.