SUBJECT:  Reimbursement and Responsibility for the Loss or Damage
          of University Property Due to Negligence

PROCEDURE NO.:  2D:01:05A                    DATE:   December 1, 1988

SUPERSEDES PROCEDURE NO.:  2D:01:05A         DATED:  August 1, 1981


To place responsibility for lost or damaged University property
so as to ensure accountability therefore, and to establish
appropriate procedures to obtain repair or replacement thereof;
and to ensure compliance with TN Board of Regents Policy when
sanctions are appropriate against an involved employee.


It is the responsibility of department chairman/activity heads to
advise students and employees that University property may be
used only for University purposes.  Such property must be
safeguarded, maintained, and returned in the same conditions as
received with due consideration given to normal wear and tear.

Property lost or damaged through negligence will be paid for by
the person(s) determined to be responsible for such loss or
damage.  Property lost or damaged wherein negligence is not a
factor will be repaired or replaced through normal budgetary
procedures.  Costs of repairs to vehicles for which the University
is not reimbursed by the user (The U of M employee) or an
insurance company will be charged to the user's department.

In the interest of minimizing reporting procedures, no report to
the President and others, as set forth under paragraph 5 below,
will be required wherein the property value involved is $50.00 or


1.  Department chairman/activity heads will notify the Security
    Department of the loss or damage of University property within
    24 hours of discovery of such loss.  (Detailed instructions for
    this notification are contained in University Procedure 2D:01:01H.)

2.  Within 48 hours after notification that University property
    has been lost or damaged, the Security Department will conduct
    an investigation into the matter.  This investigation will 
    normally be completed within a five working day period.  Upon
    completion, the Report of Investigation will be forwarded to
    the department chairman/activity head concerned.

3.  If after reviewing all facts, the department chairman/activity
    head determines a person negligent, he will schedule a hearing
    at which the concerned individual will have an opportunity to
    rebut the alleged liability and present his/her case.  This
    review of the facts and conduct of any hearing should be
    completed as soon as possible and normally within five working
    days from receipt of the Report of Investigation.

4.  A determination as to whether or not pecuniary liability
    and/or other sanctions are justified will be made by the
    department chairman/activity head after consultation with the
    college dean/activity director and the vice provost or vice
    president of the concerned division, as appropriate.  This
    determination will be based upon the facts established in each

5.  Regardless of whether or not pecuniary liability is determined
    or other sanctions felt appropriate, a report must be made to
    the appropriate dean/director with copies to the President,
    concerned vice provost/vice president, Vice President for
    Business and Finance, and the Director of Security and Safety
    Services.  This report will indicate the findings and dis-
    position of the case and will contain a specific statement as
    to whether or not recommendation contained in the Security
    Department investigation report have been or will be imple-

6.  If it is determined that the individual concerned is liable
    for the loss or damage, the department chairman/activity head
    will inform that person in writing as to the findings and that
    he/she has five working days in which to either reimburse the
    University or appeal the determination to the Vice President
    for Business and Finance (see Appeals Procedure).

7.  If reimbursement is not made within five working days and the
    determination has not been appealed, the department chairman/
    activity head will provide the Bursar with the following

    a.  Name, address, and social security number of the person to
        be billed.
    b.  Complete information concerning the indebtedness, i.e., a
        description of the equipment/property lost or damaged,
        The University of Memphis property decal number (if
        applicable), other information pertinent to the loss, and
        the amount to be collected.

This information will be used to set up indebtedness against the
person concerned as a University account receivable.

8.  The Bursar's Office will submit a bill to the person concerned, 
    requesting payment.  If the person is a student and the debt 
    is not paid within a reasonable time, the Bursar's Office will 
    inform the Records Office to place a hold on his/her records 
    (including registration materials) until payment is received. 
    If an employee fails to pay an assessed debt, the Bursar's 
    Office will notify the Associate Vice President for Finance who 
    will take appropriate action to obtain reimbursement from the 

9.  The department chairman/activity head through his/her area
    vice provost/vice president are responsible for instituting
    sanctions other than pecuniary liability when appropriate.

            Penalties for Misuse of University Vehicles

1.  In accordance with the Tennessee Board of Regents Policy,
    employees who carelessly operate University vehicles that
    result in damage to the vehicle or injury to persons or
    property are subject to disciplinary sanctions, depending upon
    the magnitude of the misuse and the frequency with which it

2.  Sanctions for misuse shall be as follows:

    (a)  Written reprimand or warning;
    (b)  Suspension without pay; or
    (c)  Dismissal.

Discipline of employee for misuse of University vehicles is the
responsibility of the employee's immediate supervisor.  (See also
The U of M Operating Procedure No. 2D:02:06A)

                       Appeals Process

1.  Individuals who have been determined to be liable and who wish
    to appeal the decision shall make appeal by notifying the
    concerned department chairman/activity head in writing within
    the allocated five working days.  Upon receipt of such
    notification, the department chairman/activity head will
    forward the complete file, including all records, evidence,
    documents, and his recommendations, to the Vice President for
    Business and Finance for review and appropriate decision.
    After consideration of the facts, the Vice President for
    Business and Finance will notify all concerned in writing as
    to his findings.  If he concurs in the determination of
    liability, the concerned individual shall have five working
    days in which to either reimburse the University or appeal the
    determination in writing to the President for a final decision.

2.  If reimbursement is not made within five working days and the
    determination has not been appealed, the Vice President for
    Business and Finance will provide the Bursar with the
    information listed in paragraph 7a and b in order that he may
    proceed with the collection process outlined in paragraph 8.

3.  If the determination is appealed to the President, the Vice
    President for Business and Finance will provide the President
    with all appropriate files pertaining thereto.  After review,
    the President will convey his decision, in writing, to all
    concerned.  If a finding of liability is upheld, the Vice
    President for Business and Finance will notify the Bursar who
    will comply with paragraph 8 above.

4.  Appeals for sanctions other than pecuniary liability shall be
    handled in accordance with appropriate grievance and disci-
    pline procedures.