Minnesota Department of Transportation

511 Travel Info

MnDOT Policies

Property Management

MnDOT Policy #FM019
Revised: January 22, 2024

View/print signed policy (PDF)

Property Management Procedures

Please go to the MnDOT Org Chart to find specific contact information: Org Chart.

Responsible Senior Officer: Deputy Commissioner/Chief Administrative Officer
Policy Owner: Director, Office of Administration
Policy Contact: Materials Management Section Director

Policy statement

The Minnesota Department of Transportation must comply with the State of Minnesota Property Management Policy and User Guide, published by the Department of Administration, and incorporated herein by reference. Property management reporting and accounting is an essential part of MnDOT’s effort to establish internal controls in the agency.

Internal Controls

Internal controls must be in place in accordance with Statewide Financial Policies. Districts and offices must ensure adequate separation of duties exists or implement mitigating controls.

An annual review by the Office of Financial Management initiates the process of SWIFT access and role assignments. Offices and districts must evaluate each employee’s specific duties to ensure the proper assignment of roles and mitigating controls are in place.


In addition to the State of Minnesota Property Management and User Guide published by the Department of Administration, MnDOT employees must comply with the agency-specific Property Management Procedures.

Reason for policy

The purpose of this policy is to:


The MnDOT Property Management Policy applies to all sensitive items, consumable inventory, supplies, and surplus property under the control or possession of the agency. This policy does not apply to buildings or real property.

All MnDOT employees must comply with this policy.

Key stakeholders with responsibilities under this policy include:

  • Office of Financial Management
  • Office of Administration – Materials Management Section (MMS)
  • Office/District Materials Management
  • Fleet Management


Consumable Inventory

Items purchased by an agency and tracked by the agency’s financial system for:

  • Reissue, reuse, or resale which the agency controls as a part of its ongoing operations (such as construction materials, bulk fuel, hardware items, or maintenance parts that are stocked by the agency; or
  • Items purchased and incorporated into or attached to an end-item during production, including raw materials or work-in-progress and finished goods or materials (such as equipment components to be used for a tailor-made truck for a specific purpose). 

Cycle Count

An audit technique that divides the items at the inventory center into multiple counting events so that a complete physical inventory can be conducted and reconciled for the inventory center over the course of a year.

At the end of the year, the entire inventory center will have been inventoried. This is an alternative to conducting a complete physical inventory (wall to wall count) once per year. The key purpose of cycle counting is to identify items in error, thus triggering research, identification, and elimination of the cause of the errors on a timely basis and to maintain accurate financial data. A cycle count must occur on a regular, defined basis (often more frequently for high-value or fast-moving items and less frequently for low-value or slow-moving items).


An accounting of the quantity of materials on hand. It may consist of stocked items used to support production (raw materials and work-in-process items), as well as supporting activities (maintenance, repair, and operating supplies) and customer service (finished goods and spare parts).

Materials Management

The function of managing and maintaining a constantly available supply of raw materials, purchased parts, and supplies.

Physical Inventory (Wall-to-Wall)

The act of accounting for, and the accurate verification of, information on file for each piece of state-owned consumable inventory property. A complete physical inventory and verification with the results entered in the SWIFT inventory module documenting the accuracy of 100% of the items maintained in the inventory module of SWIFT must be conducted, at a minimum, annually.  A Cycle Count method may be used in place of the physical inventory. 

Satellite Inventory Unit

Assigned business unit location where the ownership or responsibility of materials from a parent (main) inventory unit are transferred so that materials are accounted for, tracked in the agency’s financial system, and available for consumption.

Sensitive Items

Items that are not considered consumable inventory, real property (land and buildings), or capital assets. Sensitive items are generally for individual use or could be easily sold and are most often subject to pilferage or misuse.

Separation of Duties

An internal control practice designed to reduce the opportunity for errors and to protect employees. Duties are separated so that no one person carries out all phases of a business transaction from beginning to end.


Items purchased by an agency and used or assigned immediately or within a reasonable time after they are acquired (such as office supplies, one-time purchases of monitors, mice, keyboards, and nominal peripherals, or instructional materials and supplies that are used up as part of a class or training activity). Note: bulk purchases of monitors, mice, keyboards, and nominal peripherals kept on hand are not considered supplies and must be tracked in inventory.

Surplus Property

Any state-owned property with utility or monetary value including capital assets, sensitive items, commodities, equipment, materials, or supplies, that is obsolete, unused, not needed for a public purpose, or ineffective for current use.


Office of Financial Management

  • Lead all efforts in reporting and tracking capital assets and sensitive items, including required physical inventory.

Office of Administration - Materials Management Section (MMS)

  • Support implementation and compliance with the State of Minnesota Property Management Policy and User Guide, issued by the Department of Administration.
  • Provide leadership, direction, and support to all MnDOT personnel on materials management issues such as:
    • Inventory management
    • Sensitive items
    • Surplus property
    • Consumable inventory
    • Procurement
    • Standardization and specifications
    • Materials management-related technology system modifications and/or improvements
    • Regional issues, accountability, and local activities
  • Identify process improvements and recommend best practices within the agency.
  • Promote an environment of interdepartmental partnerships to optimize materials management practices.
  • Communicate materials management strategic direction.
  • Identify or confirm the need for materials management training for the agency and coordinate and facilitate the instruction.
  • Provide support and training for MnDOT’s Electronic Inter-Office Requesting System (EIOR), Mobile Inventory Application, purchasing cards, and the Statewide Integrated Financial Tools (SWIFT).
  • Coordinate a quarterly fuel sync to reconcile the bulk fuel inventory according to established procedures. (See the Bulk Fuel Section of the Property Management Procedures).

Office/District Materials Management

  • Ensure implementation of and compliance with the enterprise and agency policies on property management.
  • Promote planning ahead for purchases (spending plan and biennial budget), property management, and education.
  • Evaluate and enhance services provided to stakeholders.
  • Investigate business opportunities to support partnerships across offices and districts to save time and money, where appropriate.
  • Follow all Property Management Procedures.
  • Identify and communicate property management issues and achievements to the Materials Management Section with the goal of continuously improving the overall property management process.
  • Requisition and purchase materials in economic quantities at the proper time.
  • Receipt, store, and protect materials.
  • Issue materials upon authorized request.
  • Maintain and verify inventory records. At least annually, conduct a complete physical inventory and verification with the results entered in the SWIFT inventory module documenting the accuracy of 100% of the items maintained in the inventory module of SWIFT. A Cycle Count method may be used in place of the physical inventory. 
  • Dispose of materials properly at the end of useful life. Process surplus sales of materials according to the State of Minnesota Property Management Policy and User Guide.
  • Ensure credits or checks are applied according to the MnDOT Office of Administration Applying Credits to Vendor Payments.
  • Assign an employee responsible for satellite inventory location and policy compliance.
  • Ensure employees are well versed in statutes, rules, and policies regarding property management.
  • Reconcile and ensure accuracy of inventory and bulk fuel at each location according to established procedures. District management must maintain accountability standards for all inventory processes including, but not limited to bulk fuel. (See the Bulk Fuel Section of the Property Management Procedures)

Fleet Management

  • Lead all efforts in reporting, tracking, and disposal of fleet and equipment assets, including required physical inventory.

Policy Owner (Director, Office of Administration)

  • Review the policy every two years, or sooner as necessary, to ensure the policy remains up to date.
  • Ensure procedures, forms, other supporting documents, and training associated with the policy remain current.
  • Monitor state, federal, enterprise, agency, or other requirements that apply to the policy or procedures.
  • Consult with the Office of Chief Counsel to ensure the policy and procedures remain compliant with all state, federal, enterprise, agency, or other requirements.
  • Ensure that necessary approvals by state or federal agencies are obtained before changes to the policy or procedures are implemented.
  • Work with the Policy Coordinator to revise the policy and/or confirm its accuracy.
  • Communicate policy revisions, reviews, and retirements to stakeholders.

Resources and related information


Process, Procedures, and Instructions


History and updates


September 15, 2016


  • First Revision: January 22, 2024

Policy Review

This policy's next scheduled review is due January 2026.