18-TRADE-IN

18.10 GENERAL EFFECTIVE 6/1/00 LAST UPDATE 12/01/02

RESPONSIBILITY	ACTION
CUSTODIAL DEPARTMENT	Determine the titleholder and source(s) of funding for the equipment item(s) proposed for trade-in. If the item is titled in a sponsor, either obtain a written approval from the sponsor to use as a trade-in, or ask the SPS Property Administrator to request the trade-in authorization from the sponsor. If the item is University titled, acquired on government funds, and has a trade- in value of $5,000 or more, contact the SPS Property Administrator for a determination of the applicable government trade-in rules. Request sponsor approval of the trade-in as directed by the SPS Property Administrator. Upon receipt of the sponsor authorization to use the item for a trade-in, follow the standard University purchasing procedure. Create a Purchase Requisition (FRS Departmental Manual, 10.11) to order the new item or items. Identify the items being traded, the UA property tag number (or indicate that a tag does not exist) and the value being received for the trade. The transaction will not be processed without a value being indicated for the item being traded. Prepare a Request for Authorization to Dispose of Property (RADP) form, note the dPR number at the top, attach a copy of sponsor approval letter, if applicable, and send to Purchasing as an attachment.
PURCHASING	Forward the Purchase Requisition and RADP to Surplus Property for review.
SURPLUS PROPERTY	Review the Purchase Requisition and the RADP and approve, or resolve any differences with the department, return form for completion, or request further justification. If the item is not titled in the University or if it has a trade-in value of $5,000 or more and was purchased on a sponsored account, review the RADP for a copy of the sponsor approval letter. If a copy of the sponsor’s approval is not attached to the RADP, verify the need for sponsor approval of the trade-in with the department and the SPS Property Administrator. If approved, sign and forward to Purchasing for processing. If denied: Arrange to pick up the property and dispose of it using other methods. Indicate on the Purchase Requisition that the new item or items will now be split funded between Surplus Property and the department. The department will be credited an amount equal to what they would have received from the trade-in. The department will not receive any further funds resulting from the disposal of the disapproved trade other that the trade-in price plus sales tax they has proposed. Surplus Property’s account will be charged an amount equal to what would have been received from the intended trade plus tax.
PURCHASING	Review the returned Purchase Requisition and RADP for the required approvals and process. A Purchase Order will not be issued without Surplus Property’s approval.
CUSTDIAL DEPARTMENT	When the equipment used as the trade-in is shipped or picked up by the vendor, obtain a receipt and notify Property Management-FSO to delete the item(s) from the Fixed Assets System (FFX). If the trade-in item is sponsor titled or required sponsor approval for the trade-in, notify the SPS Property Administrator.
SPS PROPERTY ADMINISTRATOR	Prepare a Property Record Change Form for the trade-in and forward to Property Management-FSO.
PROPERTY MANAGEMENT-FSO	Upon receipt of notification that the trade-in has been delivered to the vendor, remove it from the Fixed Assets System (FFX).

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