Compliance Status

Louisiana State University and A&M College is in compliance with this principle.

Narrative

Louisiana State University and A&M College (LSU) exercises appropriate physical control over all of its physical resources by conducting annual property inventory audits of moveable property; adopting procurement processes to identify and add new equipment to the property management database at the time of purchase; using physical asset tracking systems; installing electronic access control systems; conducting an annual inventory of all space on campus; managing a deferred maintenance and preventative maintenance program for 539 campus buildings; and protecting people, property, the environment, and other campus resources through risk management efforts.  Policy Statement 84 (PS-84) Custody of Facilities and Premises [1] establishes policy governing the construction, modification, maintenance, and related facility management concerns for facilities and premises within the care and custody of LSU.

LSU Property Management [2] monitors and facilitates management of the university's moveable equipment inventory and fleet management programs in accordance with regulations established by state statute (Titles 39 [3] and 24 [4]) and with various federal government regulations (CFR) when applicable. All procedures and forms for inventory management are located on the LSU Property Management Website [2].

Geographical areas of responsibility for the LSU Office of Property Management include moveable property for LSU, as well as the offices of the LSU System, LSU-Alexandria, LSU-Eunice, and the LSU Agricultural Center, including the branch facilities of the Louisiana Agricultural Experiment Stations that are located statewide. The office also provides support services to the LSU Paul M. Hebert Law Center [5].

As of December 14, 2012, LSU had 52,116 items on inventory, having an aggregate (acquisition) value of $292 million, of which $3.7 million, or 1.3%, were unlocated items [6].   The university has created a plan to add barcode scanners, and this will require moving away from the Equipment Records Inventory (ERI) mainframe-based database to another platform. LSU is researching vendors and evaluating options.

Additional information on LSU physical resources is found in the compliance certificate for Core Requirement 2.11.2 and for Comprehensive Standards 3.11.2 and 3.11.3.

Moveable Property and Motor Vehicle Fleet Management

The associate director of the Office of Property Management is LSU’s designated property manager and transportation coordinator, pursuant to the requirements of Louisiana Administrative Code (LAC) Title 34, Parts VII and XI [7], Louisiana Revised Statute (LRS) Title 39 [3], and various federal government regulations. Property Management employs a staff of 11 to monitor and track the university’s moveable equipment and fleet. In addition, LSU has developed Business Office Procedures (BOP) 4-2 [8] and 4-5 [9] that further outline the ways in which LSU manages its moveable property and fleet. 

The Office of Property Management [2] is responsible for tagging assets as they are acquired, tracking additions to the inventory system, redistributing surplus items, disposing of assets, and maintaining the requisite documentation for all transactions.  In addition to conducting spot departmental audits across campus on an ongoing basis, Property Management also facilitates an annual inventory certification process; Louisiana’s property control regulations distinguish between non-consumable moveable property and supplies and items that are consumable through normal use in no more than one year’s time [10]. 

System Security and Integrity

LSU Property Management [2] follows policies and standards established by the state’s Office of Information Technology (IT) [11], an agency of the Louisiana Division of Administration.  This department, under the authority of Act 772 of the 2001 Regular Session of the Louisiana Legislature [12], develops formal information technology policies relative to information technology activities including, but not limited to, the following:

1. Implementing IT standards for hardware, software, and consolidation of services;
2. Reviewing and coordinating IT planning, procurement and budgeting;
3. Providing oversight for centralization/consolidation of technology initiatives and the sharing of IT resources;
4. Assuring compatibility and connectivity of Louisiana's information systems; and
5. Providing oversight on IT projects and systems for compliance with statewide strategies, goals, and standards.

The Enterprise Information Security Policy (IT POL 0-04) [13] states that responsibility and authority for information management shall be established and maintained by each state agency. The agency’s chief executive officer/secretary or equivalent is designated as the owner of that agency’s information and as such must practice due care and due diligence to ensure the confidentiality, integrity, and availability of that information. Campus departments are also responsible for ensuring that all aspects of the organization's planning, development, classification, and operation comply with applicable enterprise policies and standards.

LSU maintains its moveable property inventory in a mainframe-based database, the ERI. The property manager serves as the data steward for ERI.  Every year the Office of Property Management asks each department to identify an appropriate property custodian.  The departmental property custodian may request access to ERI, but such access is restricted to the ability to view inventory information and make limited changes, such as the building, room number, location, and comments fields.  All entries into ERI, with the exception of those outlined above, can be input only by the Office of Property Management [2].

Inventory Additions

Property control regulations require that all qualified items must be tagged and added to inventory within 60 days of acquisition.

Assets that must be tagged include

• Moveable property with a cost of $1,000 or more, except firearms, which are added regardless of cost;
• Donations and gifts to the university, which are acknowledged by the chancellor
• recorded by Sponsored Program Accounting (SPA) [14] or by the department and reported to Property Management on an AS522 form [15]; and
• Special museum additions, which require tagging because of the potentially high market/replacement value.

Property Management receives daily receiving reports that are automatically generated by departments when a piece of equipment is delivered and the department approves payment in the PRO System. The receiving reports are checked for appropriate commodity and object codes, and a representative of Property Management then visits the department and places an inventory tag on the new equipment. At that time, a cross check is performed between the actual item and the receiving report to ensure accuracy. After the asset has been tagged, the new inventory item is added to ERI. 

Property Management also receives notice of acquisitions of other potentially taggable property through weekly capital outlay reports, monthly reports on LaCarte purchases, and close coordination with SPA and the LSU Foundation.

In an effort to track the increasing number of portable electronic devices priced below $1,000, including laptop computers and tablets, which are at high risk of theft or loss, the Office of Property Management makes available a special yellow tag for non-inventoried items for use by any campus department.

Annual Inventory Certification

Louisiana Revised Statute 39:324 [16] requires an annual inventory to be taken of all state moveable property.  LSU conducts an annual inventory, and certifications are completed by each campus department.  A listing of all unlocated items (“suspense” items) is compiled and returned to the Office of Property Management, along with an Affidavit of Lost/Stolen Property signed by the department head [17]. 

Some departments use barcode scanners to facilitate the annual inventory process.  The ERI system does not support a “scan and validate” function, so the use of scanners is currently limited to those departments that have devised their own methods of employing this technology.  However, as LSU explores which system may replace ERI, the opportunity to add this functionality across campus is a key consideration.

Sensitive Data on Surplus Equipment

When surplusing any equipment that stores data, including computers, fax machines, and some photocopiers, the department surplusing the item must certify that all sensitive data has been removed and the method used to remove the data. See LSU Policy Statement 06.20, Security of Data [18].  Also see PS-114, Security of Computing Resources [19].  The State of Louisiana IT-POL-0-04 [13] governs this process and provides guidance on which removal process is used.

Fleet Management

The Office of Property Management manages the motor vehicle fleet for LSU.  Fleet vehicle records are maintained on the ERI system and AssetWorks, which is the system used by Louisiana Property Assistance Association (LPAA). 

Management of LSU’s fleet is performed in accordance with Louisiana Administrative Code Title 34, Part XI [20] and applicable federal laws, such as the Code of Federal Regulations.

As LSU’s transportation coordinator, the Office of Property Management facilitates the following processes:

• Vehicle Receiving
  • Applying to Department of Public Service for license plates and registration
  • Taking delivery of new vehicles from LPAA and delivering to campus departments

• Vehicle Disposals
  • Requesting permission from LPAA to dispose of vehicles
  • Delivering vehicle to LPAA for disposal (except disabled vehicles)

• Vehicle Assignment
  • Maintaining file of driver authorizations [Driver Safety Program Authorization/History form (DA 2054)] [21]
  • Overseeing Annual MV-2 Home Storage/Personal Assignment approval process

• Vehicle Operations
  • Ensuring drivers are familiar and in compliance with
    • procedures for safe operation of fleet vehicle
    • minimum preventive maintenance requirements
    • accident reporting procedures
    • completion of the Daily Vehicle Usage Log (MV-3)
  • Ensuring MV-3 compliance
  • Ensuring that preventive maintenance is performed and recorded on MV-4 form

• Maintenance of fleet records and reporting to LPAA

Facility Maintenance and Operations

Maintenance and operations of buildings and grounds are managed through the LSU Office of Facility Services, Facility and Utility Operations (F&UO) [22], as mandated by Permanent Memorandum 14 (PM-14) Operation & Maintenance of Physical Plant [23].  Services not performed by the department, such as elevator maintenance, repair, and inspections, are contracted out on an annual basis.  Annual fire safety inspections are performed by state fire marshal personnel accompanied by Facility Services staff.

LSU’s Preventative Maintenance Guide [24] lists the necessary maintenance schedule for various types of equipment and is managed through Maximo, the computerized work control system utilized by Facility Services.  The guide illustrates the preventive maintenance to be performed for each area and includes the job plans from Maximo that detail every task to be performed.  Preventative maintenance services ensure that all facilities and grounds are maintained and fully operational (e.g., air-conditioning systems, elevators, fire pumps) to support Facility Services’ mission to support the university's vision, mission, and goals by providing all campus entities with quality facilities combined with cost effective and responsive maintenance, utilities, design, and construction services.

Non-routine problems and issues submitted by the campus community are sent to the Work Control office in Facility Services. These requests are assigned to the appropriate maintenance, custodial, or grounds team for resolution. Work orders are processed through the computerized work control system in Maximo [25] to ensure that corrective measures are employed and that an appropriate response is sent to requestors.  Facility Services processes an average of 38,000 work orders annually. 

Facility Services, Facility and Utility Operations currently have 442 full-time employees who work in seven service areas: Facility Maintenance, Facility Systems, Environmental Maintenance, Energy Services, Utility Services, Building Services, and Landscape Services.   Facility Services, Facility and Utility Operations maintains 539 buildings comprising 12.7 million gross square feet of space.

Deferred Maintenance

The LSU Office of Facility Services manages a deferred maintenance [26] and capital renewal program for major building system replacements and overhauls that fall outside regular maintenance on buildings.  The department also prioritizes renovations of existing buildings over construction of new buildings to reduce the amount of deferred maintenance needs on campus. 

LSU, like many higher education institutions, grew rapidly after World War II, and many buildings were added to the campus in the decades after the war.  Louisiana suffered severe budget shortfalls in the 1980s at a time when many older buildings were in need of major system replacements or overhauls. These major maintenance items were deferred beyond the ideal replacement time.

In the early 1990s, a separate category in the capital outlay process dedicated to deferred maintenance was created and funding was made available for deferred maintenance (DM) projects. Approximately $32 million has been spent on DM to date at LSU. Additionally, a strategy adopted by the Louisiana Board of Regents to prioritize renovations of existing buildings over construction of new buildings is being pursued. 

According to a 2012 facilities report by Sightlines, LLC [27], 90% of the LSU campus building construction age is over 25 years old, and 52% over 50 years old. The peer average is 70% over 25 years old, and 35%  over 50 years old.  There are 0.5 buildings per developed acre, while the peer average is 0.26.  The report states that an older campus, such as LSU, amplifies capital and operational demand and that the current limited and unreliable capital is preventing the university from adequately “keeping up” and “catching up” with deferred maintenance needs.

Capital renewal and deferred maintenance funding falls outside of the normal funding stream of building and grounds maintenance.  These funds are included annually in the state’s Capital Outlay program, from the sale of General Obligation Bonds, as either a specific capital renewal project or under the allocation for Major Repairs for State Buildings (deferred maintenance).  Since 2004, projects approved for funding with Major Repairs funds are tied to a statewide facility conditions assessment, the VFA Report [28], which was completed by the State of Louisiana.

With a total investment of $99,715,338, 25 major capital renewal projects were completed between 2004 and 2011.  Five of the projects completed were in buildings included in the university’s National Historic District: the Journalism Building (1930), the Gym-Armory Building (1930), the Music & Dramatic Arts Building (1932), the French House (1936), and Himes Hall (1938).

Deferred maintenance projects completed in the same time period included a total investment of $19,115,435 on 104 projects.  Due to recent budget shortfalls, the state has not provided deferred maintenance funding for the previous five years. 

Residential Life-Deferred Maintenance   

Since 2005, Residential Life has invested more than $7.6 million in 73 small annual projects addressing deferred maintenance. The projects range from elevators, domestic hot water boilers, flooring, heating ventilation and air conditioning systems, roofs, and fire alarm systems.  Over the last decade, all elevators have been replaced, all fire alarm systems upgraded, every building painted on the inside and waterproofed on the outside, and all but five roofs replaced. In addition to small annual projects, four buildings received total renovations through the capital outlay process at a construction cost of approximately $38 million.

The Residential Life Housing Comprehensive Master Plan [29] and Housing Business Plan [30] address the major renovation, replacement, and construction of the housing inventory and are primarily funded through the sale of revenue bonds. Since 1995, more than $200 million in revenue bonds have been invested in new construction and major renovations.

In addition, all new or renovated facilities have a Maintenance Reserve Account to support long- term maintenance needs, which can be funded by a one-time deposit of 10% of the construction cost or by an annual deposit of 1.5% of the construction cost, adjusted for inflation. To date, the balance of existing Maintenance Reserve Accounts is $5,706,700.

To address the renewal needs of the facilities waiting for a major renovation or replacement, a facility maintenance program was developed on a simple life-cycle model. Funding for the program is budgeted at 10% of the annual gross revenue each year. This simple set of basic facility standards was initially adopted from life cycle models and over the last decade was the catalyst for more than $61 million in projects to renew the housing inventory. This model has expanded over time into a comprehensive program based on four pillars: safety improvements, security improvements, infrastructure, and furnishings.

Electronic Access Control System

The Office of Facility Services’ Building Automation Services (BAS) department [31] is responsible for the maintenance and installation of energy management systems, access control systems, security systems, telecommunications infrastructure wiring, clock systems, fire alarm systems, life safety systems, and motor control systems.

Campus Card Access is installed in every multi-floor residential housing facility on campus. Residential Life utilizes card access as a means not only to secure individual dorm rooms, but also to control the flow of residents within the buildings. By restricting floor access to only those individuals living on a particular floor, Residential Life provides an extra layer of protection for its residents and their property.

Additionally, card access is utilized in other buildings on campus to allow access to certain laboratory and art studio spaces within buildings after normal business hours. Access is granted only to those students and faculty approved by a department to have non-peak hour access to facilities. This policy allows these individuals to access certain areas while keeping the remainder of the building and its contents secure. 

Security systems are utilized throughout campus in sensitive areas to assist in the protection of vital equipment, sensitive information, and high-value research.  Security systems typically report to the LSU Police Department in order to speed police response.  Security systems are typically used in conjunction with security cameras in and around buildings.

Space Inventory

Space inventory is maintained and updated by the LSU Office of Facility Services, Planning Design & Construction [32]. LSU utilizes a facility database (FAC) system to maintain and update space inventory. It is used by all departments across campus as a self-reporting system for updating each department’s space inventory.  Space inventory is updated annually, and departments are encouraged to update their assigned space inventory throughout the year to ensure that inventory remains current.

In 2007, a major effort was made by Planning, Design & Construction staff to fully inventory and more accurately categorize existing space on campus.  Through this endeavor, 2.5 million square feet of space previously missing in inventory records was accounted for and properly categorized in the system.  LSU provides an annual space inventory report to the Louisiana Board of Regents, as required by the Louisiana Constitution.  

Risk Management

LSU’s Risk Management operates through the Division of Finance & Administrative Services (FAS) [33] and under the Department of Administrative Services and Risk Management (ASRM) [34].  The university’s insurance program is under the umbrella of the Office of Risk Management (ORM) through the State of Louisiana [35].  The ORM was created within the Louisiana Division of Administration by R.S. 39:1527, et seq., in order to provide a comprehensive risk management program for the state. 

The mission of Administrative Services and Risk Management in Finance & Administrative Services at LSU is to protect and support the people, property, the environment, financial, and other resources in support of LSU’s teaching, outreach, research, and student services.

LSU Risk Management is responsible for the administration of the university’s insurance program and coordination of insurance programs for LSU campuses. Staffed currently by five employees, the office has progressed from a part-time claims origination point in 1988 to an operation responsible for managing a comprehensive insurance program, which accounts for approximately 20% of all insurance claims activity in state government (Table 1). In addition to insurance claims, Risk Management manages the university’s Workers’ Compensation Program, oversees the Student Trip Travel Policy, coordinates activities related to lawsuits filed against the institution, reviews requirements for grants and contracts, and generates a host of reports for the state ORM addressing the university’s potential liability exposure.

Through ORM, LSU has insurance for the following coverage:

• Workers’ Compensation
• Property
• Excess Property/Boiler and Machinery
• Automotive Liability and Physical Damage
• Comprehensive General Liability
• Malpractice
• Employee Bonds and Crime
• Wet Marine

LSU has established and follows several policy statements related to risk management:

• PS-19              Environmental Health and Safety  [36]
• PS-65              Management of Human Body Fluid/Waste  [37]
• PS-67              Misuse of Drugs/Alcohol  [38]
• PS-90              Workers’ Compensation and Work Related Accidents  [39]
• PS-105            Return to Work Policy for Employees on Workers’ Compensation  [40]

Risk Management is currently establishing a centralized process for aggregating and reporting risk information from various sources to provide executive management with a comprehensive view of overall risk exposures.  The department is also developing and maintaining a program for identifying, assessing, monitoring, reducing, controlling, and reporting key business risks that might impact the achievement of the university’s goals and objectives.

Risk Management is expanding into strategic risk management, a more comprehensive approach that includes operational, strategic, financial, compliance, and reputational risks.  The department is also working to implement an ERM program at the institution.  ERM links institutional governance, risk management, and the strategic goals of the institution and provides a means to more effectively manage all of the risks that exist on a college or university campus.

Through annual property inventory audits; procurement processes; a physical asset tracking system; electronic access control systems in buildings; deferred maintenance of facilities’ preventative maintenance of equipment; and risk management efforts, LSU exercises appropriate control over all of its physical resources.  

Related Principles

Related information on physical resources at LSU are also presented in Comprehensive Standards 3.11.2 (Institutional Environment) and 3.11.3  (Physical Facilities).