 PROPERTY ACQUISITION

1. New Property

Property management and inventory control procedures should begin when a new item is
purchased. The person who maintains the inventory records needs the number of the
purchasing document as well as other information. The Property Control Data Collection Form
(02-623) is used by some departments to assure that all necessary information is available.
The Department Property Officer is ultimately responsible for property management and
inventory accuracy.

2. Used Property

Departments may notify the PMO of their need for surplus items. If the items are not
available immediately, the their request will be entered on the "Want List" and they will be
notified on a first-come, first-served basis when requested items become available. Requests
for buildings and mobile units should be submitted in writing to Leasing and Facilities
Management, Department of Administration.

3. Trade-ins

Departments may replace or upgrade equipment through a trade-in of a like item. Trade-ins
are required to be approved in writing, in advance by the PMO. A trade-in will be approved
only when the PMO has determined that it is in the best interests of the State.

Other agencies' needs will take priority over a trade-in request.

If the item is actually excess to the agency, the PMO may recommend a direct transfer to
another agency or that the item be turned in for reissue to another agency.

State agencies must follow the appropriate procurement process established in 2 AAC 12 or
the Administrative Manual based on the total estimated sales price, including trade-in credit,
for the equipment to be purchased.

A proposed trade-in is initiated by memorandum from the Property Custodian, approved by

the Department Property Officer. The memo must include:

1. equipment description including Property Control and Serial Numbers

2. equipment condition and current estimated value
3. statement of need and significant program impacts (if any) should the trade-in be
denied
4. description of new equipment desired, including proposed method of purchase,
estimated purchase price, and estimated trade-in allowance

4. Leased or Rented Property

Controlled property includes items which are loaned, leased or rented items in the care of
custody of the State, even though owned by another entity. Information concerning the
criteria for designation as controlled property and property identification are applicable to
leased or rented property.

 INVENTORY REDUCTION

1. Lost-Stolen-Damaged

An item which is lost, stolen, damaged or destroyed must be reported by the Department
Property Officer on Form 02-627, "Lost-Stolen-Damaged Property Review." In addition, the
Division of Risk Management, Department of Administration, must receive written notice of
the loss as soon as it is known; a completed copy of the Form 02-627 should be provided to
the Division as well.

Departments have the authority to establish the degree of responsibility and liability, as well
as appropriate punitive measures for negligence or misuse of state property by an employee.
Employees should be advised of any liability they might incur due to their custody of state
property and the procedures to follow when an item is being reported as lost, stolen,
damaged or destroyed.

Suspected theft of equipment or supplies should be reported immediately to the appropriate

law enforcement agency. Any law enforcement report should be included with the Form 02-
627.

2. Property Salvage/Destruction

State property which can not be repaired economically or is not marketable should be
destroyed or salvaged for parts. PMO approval is required before destruction or salvage and is
requested on Form 02-610, "Property Salvage/Destruction Request."

The destruction of junk items is both appropriate and necessary for effective property
management and control. The PMO is not intended to serve as a dumping ground for junk
items and is not able to do so. Although approval is required before property can be
destroyed, the approval process is intended only to document that the destruction is
authorized and appropriate.

The Department Property Officer may establish internal procedures for determining that
destruction or salvage is appropriate; once those conditions have been satisfied, the From 02-
610 should be submitted to the PMO.

3. Loaned Property

Property may be loaned to another department for a period less than six months without
approval of the PMO. Property control of items which are loaned remains with the "loaning"
department. (Such loans may be subject to internal approval by the appropriate Department
Property Officers.)

Form 02-657, "Property Receipt" allows the Property Custodian of the "loaning" department to
maintain a record of such items and is the only record acceptable to an auditor in
documenting the location of items not physically present at the time of an audit. The
Property Receipt may be destroyed once all items on it have been returned.

Custodians may also find this form useful in keeping track of non-controlled items loaned as
well as items "issued" for field use. If an item will be on loan for six months or more, a
permanent transfer must be considered.

4. Barters

Departments may replace equipment through a barter for equipment or services of equal
value with another government entity or a non-state entity. Such transactions are reviewed
on a case by case basis and are required to be approved in advance by the PMO.

Barters are not considered a typical property transaction, but they are a tool that can be used
under certain circumstances if the PMO determines that the proposed barter is in the best
interests of the State.

Other agencies' needs will take priority over a barter request and the PMO may recommend a
direct transfer to another department or that the item be excessed for reissue to another
department. Approval or denial of a barter request would occur only after taking into
consideration such things as cost of shipping and the practicality of moving the equipment to
another site.

A proposed barter is initiated by memorandum from the Property Custodian, approved by the
Department Property Officer. The memorandum must include the following information:

1. equipment description including Property Control and Serial Numbers

2. equipment condition and current estimated value
3. statement of need and significant program impacts (if any) should the barter
be denied
4. brief description and estimated value of the equipment or services the State
will gain through the barter
 PROPERTY TRANSFERS

1. Intra-departmental Transfers
A Department Property Officer is authorized to transfer property within the Officer's
own department and may establish internal procedures for documenting such transfers
and updated the computerized Property Control System. Some departments use the
"Inter-Departmental Property Transfer Authorization and Report," Form 02-622, in lieu
of creating their own form.

2. Inter-departmental Transfers
Property may be transferred to another department only after approval of the PMO.
The "releasing" Department Property Officer and the "receiving" Department Property
Officer can approve the request on Form 02-622, "Inter-Departmental Property
Transfer Authorization and Report" and forward it to the PMO. The property may not
actually be moved until the transfer has been approved by the PMO. The "Want List"
maintained by the PMO can be helpful to departments with excess property as well as
those which need particular items.