Policy Number: 302.1.3

Policy: Property/Equipment - Disposal

Date Adopted: 04/96

Revision Date: 01/04

References: OMB Circular A-21, Property Disposal

Approved By: Robert A. Duringer, Vice President for Administration & Finance

The disposal of any University property/equipment must be pre-approved by Business Services - Property Management. Disposal can occur through transfer, cannibalization, sale, trade-in, or designation as surplus. A brief explanation of each of these types of disposal follows.

Transfer - Property/Equipment

Generally, property/equipment can be transferred to another state agency, to a tax supported agency such as local government, to a tax supported educational agency such as a public school, or to a non-profit health or educational institution.

Cannibalization - Property/Equipment

Cannibalization is defined as the removing of parts or components from a piece of property or equipment to be used in ways that serve the needs of the University.

Sale - Property/Equipment

Sale of University property or equipment is defined as a competitive sale such as at a garage sale, auction, or by taking sealed bids. Proceeds from the sale of items purchased from the General Operating Fund of the University (less any sales costs) is returned to the General Operating Fund of the University. Proceeds from the sale of items purchased with grant or contract funds (less any sales costs) are placed in the General Operating Fund unless there are stipulations in the contract or grant agreement that require otherwise. In general, proceeds from the sale of property or equipment purchased with other funds (less any sales costs) is returned to the source of funds from which the property or equipment was purchased.

Trade-In - Property/Equipment

Trade-ins of any property/equipment in conjunction with a purchase, must be authorized by Business Services - Property Management prior to the trade-in.

Surplus - Property/Equipment

Surplus is property/equipment which has been approved by the University Property Manager as no longer needed by the University. Disposal of surplus property/equipment is at the discretion of the University Property Manager.