MGIC - Property Management Policy

Property Management

Purpose

The purpose of this policy is to ensure sound property controls for capital and non-capital assets purchased through the Maryland Global Initiatives Corporation (MGIC), to minimize the risk of loss, theft, damage, or misappropriation. Such controls include procurement, custody of assets, recordkeeping, and facilities management.

This Policy applies to all physical property purchased or leased through MGIC or held in the possession of MGIC employees, MGIC service providers (e.g. consultants), or partner institutions operating under an MGIC agreement.

Background

MGIC may be used by Requesting Units to purchase physical assets outside the United States (U.S.), for use by the University of Maryland, Baltimore (UMB) and Affiliate Entities (hereafter collectively referred to as UMB/Affiliates), by MGIC, and/or by institutional partners or other affiliates conducting business in foreign countries. For purposes of this policy, property is defined as:

• Capital asset, or “equipment”: an item that (1) is durable with an expected service life of one or more years; (2) has a purchase value (cost) of US $5,000 or more; and (3) is complete in itself and does not lose its identity or become a component part of another article when put into use.
• Non-capital asset (NCA): a physical asset with an acquisition cost of less than US$5,000 per unit, or with a useful life of less than one year.
• Designated non-capital asset (DNCA): an asset valued at less than US $5,000 that merits additional stewardship – such as documentation showing assignment to an employee – because such assets are desirable, easily converted to personal use, and susceptible to theft. Typically, these assets are not fixed to a permanent structure and can be easily removed or carried, such as a tablet or laptop computer.
• Real Property: Buildings and other permanent structures in foreign countries, leased by MGIC for occupancy or use of Requesting Units.

The International Operations (IO) division of UMB’s Administration and Finance department administers MGIC and manages the activities prescribed in these policies.

Policy Statement

Property Acquisition

1. All property under all asset categories purchased or leased through MGIC must comply with the MGIC Procurement Policy and associated procedures.
2. MGIC shall not purchase Real Property under any circumstances. MGIC may be used to lease facilities, such as office space, on behalf of Requesting Units who need physical space in foreign countries. Given the heightened risk and complexity of international Real Property leasing, MGIC shall engage local legal counsel, funded by the Requesting Unit, and shall obtain prior approval from the MGIC Board of Directors, for all proposed facilities leases.

Property Title and Ownership

1. By policy, MGIC does not and will not hold title to or ownership of capital or non-capital assets (designated or otherwise).
2. Title to and ownership of property purchased directly by MGIC on behalf of a Requesting Unit shall be automatically assigned to the appropriate UMB/Affiliate, unless local regulations, sponsor requirements, or other University imperatives require vesting or transferring title and ownership to a designated third party.
3. MGIC may transfer property to a third party in lieu of UMB/Affiliate, at the request of the Requesting Unit and with the concurrence of the third party, in compliance with applicable laws in the foreign jurisdiction and with applicable sponsor regulations.
4. The acquisition, vesting, and disposition of property purchased through MGIC may require prior approval by an award sponsor as well as in-country clearances by relevant government authorities. It shall be the responsibility of Requesting Units to obtain any required prior approvals or clearances, and to comply with disposition requirements, in compliance with applicable laws and regulations.

Property Records and Controls

1. MGIC will maintain an Asset Register to record all items purchased, date and location of acquisition, and the Requesting Unit or third party to which ownership or title was assigned.
2. Property that was purchased directly by UMB/Affiliate, rather than MGIC, for use by MGIC personnel, will be tracked in the respective entity’s own inventory records and is the responsibility of that entity to control and maintain.
3. Physical assets purchased through MGIC for use by MGIC-contracted service providers (such as consultants) shall be vested with the Requesting Unit. MGIC’s service contracts shall include terms stipulating the return or disposal of property as instructed by the Requesting Unit upon completion of the contract. A contractor’s failure to comply with these terms shall constitute a breach of contract and MGIC shall retain the right to withhold final payment, deduct the value of unreturned or damaged assets from any amounts due, or pursue additional remedies as permitted by law.

Property Use and Care

1. MGIC personnel and other individuals and entities using property provided by MGIC or UMB/Affiliate (i.e. other users) are responsible for the proper use, care, and control of such property for the duration of their employment or engagement.
2. MGIC personnel and other users may not use assigned property for personal purposes, and should have no expectation of privacy regarding their use of any MGIC or UMB/Affiliate communication systems. Use of equipment and other property provided by MGIC or UMB/Affiliate may be audited by authorized management at any time without notice.
3. MGIC personnel and other users must take reasonable precautions in protecting property from loss, damage, or misappropriation. Employees and contractors can be held liable financially and otherwise for property that is misappropriated, misused, damaged, or lost because of their negligence or willful misconduct, and may be subject to disciplinary action.
4. MGIC personnel and other users must immediately report lost, stolen, or damaged assets to their supervisor and, if relevant, seek a police report.
5. MGIC personnel and other users must immediately report to their supervisor any incident resulting in property damage, loss of use, or worsening of safety conditions for personnel at a leased MGIC facility, even if the apparent damage to property is deemed minimal.
6. Personnel and others users must return property to their supervisor and/or other designated persons at the end of their assignment or upon request.
7. Requesting Units are expected to carry appropriate insurance coverage for all assets purchased through MGIC. MGIC may be utilized to obtain property insurance outside the United States as a procurement service to Requesting Units.

Property Disposition

1. The Requesting Unit is responsible for developing and executing disposition plans and complying with sponsor requirements for the disposition of property purchased through MGIC. MGIC shall not be responsible or liable for property following the purchase and automatic transfer of title/ownership to the Requesting Unit.
2. Data storage devices such as computers and tablets, network servers, mobile phones, multi-function printer/copiers, and removable devices such as USB flash drives and external drives, must be disposed of properly to ensure any sensitive data on the device is rendered unrecoverable. The Requesting Unit must ensure data storage devices are completely sanitized prior to disposition, in compliance with their respective institution’s IT and Data Protection policies.

Facilities Management

1. Space lease contracts, which may be called lease, occupancy agreement, tenancy agreement, license, rental agreement, use agreement, or other variations, must be reviewed by local legal counsel. This policy applies to all facility types including offices, laboratories, warehouses, temporary housing, and other facilities that may be required for program implementation.
2. Only the MGIC President or their assigned delegate is authorized to sign a space lease contract. This authority applies to original contracts, amendments, and modifications.
3. Office facilities leased under MGIC contracts must be assessed by a security professional or property manager familiar with the local environment, to include:
   • Safety and security, as it relates to crime rates, number and location of building egresses (exits), proximity to popular locations for public demonstrations, ability to secure the premises, and hazards such as flooding, tsunamis, or earthquakes
   • Sufficient and secure parking
   • Good and reliable utilities including water, sewer, electricity, and internet
   • Access by public transportation and by people living with disabilities
   • Well-ventilated and sufficient workspace to avoid crowding
   • Suitable space for conducting training workshops, when applicable
   • Suitable space for nursing (lactating) mothers
   • Storage space that is adequate for current and projected needs
4. UMB/Affiliate and third-party personnel occupying MGIC-contracted facilities must take measures to maintain a safe, secure, and healthy work environment. See MGIC Human Resources policy and MGIC Safety and Security policy. Specific actions to fulfill this responsibility include the following:
   • Access to keys or access/entry codes is carefully controlled.
   • Access by visitors is controlled in a manner appropriate to that security environment.
   • Office and storage site lock-up procedures are documented and followed.
   • Emergency safety supplies such as fire extinguishers and first aid kits, are present and maintained.
   • Functioning outdoor lighting, secured doors and windows, and emergency exit access are maintained.
5. MGIC shall obtain appropriate insurance coverage for real property leased on behalf of UMB/Affiliate, funded by the Requesting Unit.

Scope

This policy applies to all MGIC personnel, UMB personnel and affiliates, and third-party personnel who acquire, manage, use, and safeguard property through the MGIC mechanism.  

Responsibilities

1. IO staff: Develop, implement, and follow appropriate standard operating procedures to ensure MGIC policy compliance and minimize risk to MGIC and UMB/Affiliates for which property is acquired.
2. MGIC employees and other authorized users: Comply with all aspects of this policy, including property use and care, reporting of damage/loss, and facility management.
3. Assistant Vice President (AVP) - IO (in capacity of MGIC VP – Policy & Administration): Maintain policies and oversee IO compliance. Authorize policy exceptions where properly justified. (See MGIC policy on Policy Exceptions).
4. Requesting Units: Follow MGIC policies and procedures. Request Policy Exceptions for legitimate reasons only, and refrain from policy deviations unless and until an exception is approved by MGIC. Ensure property acquired by MGIC and titled to UMB or an Affiliate Entity complies with applicable sponsor or other regulations governing such property. Collaborate with IO to minimize and appropriately balance risk to property users, MGIC, and UMB/Affiliate.

Procedures

See MGIC Standard Operating Procedures.

Documentation Requirements

• MGIC Asset Register
• MGIC Table of Authorities

References

• MGIC Policy on Policy Exceptions
• MGIC Policy on Human Resources
• MGIC Policy on Procurement
• MGIC Policy on Safety and Security