3-DISPOSAL

3.20 UNIVERSITY AND SPONSOR EQUIPMENT
EFFECTIVE
6/1/00		LAST UPDATE
12/01/02
PURPOSE: To provide University department with proper procedures for the disposal of University and sponsor owned property
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 45.5 and 45.6
Office of Management and Budget Circular A-110

POLICY: Any and all personal property in the University's custody, whether titled to the University or not and regardless of the funds used to purchase it, is University property. University property can only be disposed of through Surplus Property.

Under no circumstances shall a department or employee discard or give away University property. Except as instructed by Surplus Property, University property is to be transported to Surplus Property warehouse and yard.

If it is determined that the University property intended for disposal is contaminated, toxic or potentially hazardous to staff and the public, departments are to notify Risk Management for disposal instruction.

If a University employee improperly disposes, cannibalizes, sell or gifts University property, the employee is subject to disciplinary action. The employee's department may also be required to transfer from departmental funds to central administration an amount equal to the fair market value of the property and any costs associated with the recovery of the property.

PROCEDURE:
    RESPONSIBILITY ACTION
    CUSTODIAL
    DEPARTMENT
    1. Determine the titleholder of the property being considered for disposal.

  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 disposed of , its condition and request 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 disposition instructions.

    2. Shall advise the department as to the determination of the sponsor on disposition instructions for 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 the 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 disposal instruction for University Titled Property.

  2. UNIVERSITY TITLED PROPERTY

    CUSTODIAL
    DEPARTMENT
    1. Prepare a Request for Authorization to Dispose of Property form and forward the original to Surplus Property and a copy to Property Management.

      1. If you use the online form, notification will be sent automatically to Property Management.

      2. If you use a photocopied form, send an additional copy to Property Management.
    PROPERTY
    MANAGEMENT-FSO
    1. Will keep the form until they receive notification from Surplus that the property has been disposed of and follow up as time permits.
    CUSTODIAL
    DEPARTMENT
    1. Provide or arrange for transportation of the property to Surplus Property. If the nature or condition of property possesses a hazard, it must be properly packaged for transport and handling. All hazardous, contaminated and toxic property must be declared as part of any movement of property to Surplus Property.
    SURPLUS PROPERTY
    1. Surplus Property will not be able to pick up any capital equipment (equipment that appears to have cost $5,000 or more) which does not have a UA inventory tag physically on it or does not reference a UA inventory tag in the accompanying paperwork.
    CUSTODIAL
    DEPARTMENT
    1. If the equipment does not have an A-Tag number, search the department’s inventory listing, including unlocated equipment for A-Tag information, and call Property Management to assist in the research.
    SURPLUS PROPERTY
    1. The following is a list of disposal methods.
      • Public Sales
      • Cannibalization

    2. If the sale price is $5,000.00 or more per unit and the property was acquired on a Sponsored Project Services account (300000 to 499999) obtain approval for the sale from the SPS Property Administrator. Prior federal sponsor approval for property disposal is required on some federally funded, university titled equipment when the disposal sale (market value) price is $5,000.00 or more.
    SPS PROPERTY
    ADMINISTRATOR
    1. When contacted by Surplus Property, verify if the sponsor is a federal agency and if the federal sponsor’s contract, grant or agreement has a property provision requiring federal sponsor approval before a disposal sale with a per unit price of $5,000 or more.

    2. If federal sponsor approval for the disposal is required, advise Surplus Property and submit a disposition request to the federal sponsor. Inform Surplus Property upon receipt of instructions from the federal sponsor.
    SURPLUS PROPERTY
    1. Complete the sale.

    2. Notify Property Management-FSO that University property items have been disposed of.
    PROPERTY
    MANAGEMENT-FSO
    1. Remove the property from the University Fixed Assets System (FFX).

    2. Send an Asset Control Sheet to the department for cannibalized equipment.

CROSS-REFERENCES:

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