3-DISPOSAL

3.10 CANNIBALIZATION
EFFECTIVE
6/1/00		LAST UPDATE
04/28/05
PURPOSE: To provided University departments with proper instructions for the disposal of University property through cannibalization.
AUTHORITY: Powers and duties of the University President, ABOR Policy 3-801 and 3-802

Below authority applies ONLY to Federal Property (acquisition dollars or title):

48 Code of Federal Regulations 45.503
Office of Management and Budget Circular A-110

POLICY: The department head is charged with the responsibility of monitoring the cannibalization of University equipment. It is against University policy to disassemble usable equipment when other cost effective options are available.
PROCEDURE:
    RESPONSIBILITY ACTION
    CUSTODIAL
    DEPARTMENT
    1. Determine the titleholder of the property being considered for cannibalization.

  1. GOVERNMENT AND OTHER SPONSORED OWNED PROPERTY:

    CUSTODIAL
    DEPARTMENT
    1. Shall notify the SPS Property Administrator that an item with government or other sponsor title is to be cannibalized, its condition and request approval and disposition instructions be obtained from the sponsor.
    SPS PROPERTY
    ADMINISTRATOR
    1. Shall notify the grant or contracting officer of the government and other sponsor as to the condition of the item and request approval or disposition instructions for the cannibalization.

    2. Shall advise the department as to the determination of the sponsor on disposition instructions for the cannibalization of the equipment.

    3. If the sponsor abandons the property to the University, prepare a Property Record Change form to change the title to the University and send to Property Management-FSO to change The titleholder to University in the Fixed Assets System (FFX).
    CUSTODIAL
    DEPARTMENT
    1. If requested by the sponsor’s disposition instructions, return the property to the sponsor.

    2. If title is abandoned or transferred to the University, follow the cannibalization instruction for University Titled Property.

  2. UNIVERSITY TITLED PROPERTY

    CUSTODIAL
    DEPARTMENT
    1. Prepare a Request for Authorization to Dispose of Property form (OMM101) and indicate Other with the notation of cannibalization.

    2. Upon approval by the department head to cannibalize, send a copy of the form referencing the A-tag (s) number to Property Management-FSO .

    3. Maintain Cannibalization Records in a central location.
    PROPERTY
    MANAGEMENT-FSO
    1. Upon receipt of the signed form delete the asset from the University Fixed Assets System (FFX).
    CUSTODIAL
    DEPARTMENT
    1. Request from Property Management-FSO a new A-tag for any new asset(s) created from the assembly of cannibalized parts, if the capitalization criteria is met.

    2. Advise Property Management-FSO of the value of cannibalized parts incorporated into other equipment items if the capitalization criteria is met.

    3. When the residual of the cannibalized property is turned into Surplus Property for final disposition, attach the Request for Authorization to Dispose of Property.

    4. It is the department head's responsibility to monitor the cannibalization process to protect the University's property from unnecessary disassembly or destruction.
    SURPLUS PROPERTY
    1. If the appropriate authorized signatures are received, process as normal turned in equipment.

    2. The equipment will not be removed from that department's inventory until authorization has been received.

    3. When correct documentation is received from the department after the request was returned for missing information or signatures, the item enters the disposal cycle.

CROSS-REFERENCES:

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