18-TRADE-IN

18.20 UNIVERSITY FUNDED PROPERTY - GENERAL
EFFECTIVE
06/01/00		 LAST UPDATE
06/08/09
PURPOSE:
 To provide direction to University departments regarding the trade-in of University funded equipment of new items.
AUTHORITY:
 Powers and duties of the University President, ABOR Policy 3-801 and 3-802

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

48 Code of Federal Regulations 45.509-2
Office of Management and Budget Circular A-110

POLICY:

University departments may trade University property for new items, as long as the property being traded in is not for some unknown product or service to be acquired in the future. Trading University equipment in on an item that will be titled to another entity is prohibited. A trade that results in the department receiving funds in addition to a new item is considered a sale, not a trade and must be processed as outlined in Public Sale.

 
PROCEDURE:
    RESPONSIBILITY   ACTION
    CUSTODIAL
    DEPARTMENT    		  
    1. Determine the titleholder and source(s) of funding for the equipment item(s) proposed for trade-in.
      1. If the item is titled in a sponsor, or if the item is University titled, acquired on government funds, and has a trade- in value of $5,000 or more, follow the instructions in Property Management Policy 18.10.
      2. If the item is University titled, acquired on University funds, follow the standard University purchasing procedure by creating a Purchase Requisition (FRS Departmental Manual, 10.11) to order the new item or items.
    2. 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.
    3. Prepare a Request for Authorization to Dispose of Property (RADP) form, note the dpr number at the top, and send to Purchasing as an attachment.
    PURCHASING  
    1. Forward the Purchase Requisition and RADP to Surplus Property for review.
    SURPLUS PROPERTY  
    1. Review the Purchase Requisition and the RADP and approve, or resolve any differences with the department, return form for completion, or request further justification.
    2. If approved, sign and forward to Purchasing for processing.
    3. If denied:
      1. Arrange to pick up the property and dispose of it using other methods.
      2. Indicate on the Purchase Requisition that the new item or items will now be split funded between Surplus Property and the department.
      3. 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.
      4. Surplus Property’s account will be charged an amount equal to what would have been received from the intended trade plus tax.
    PURCHASING  
    1. 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     		 
    1. 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).
    PROPERTY
    MANAGEMENT-FSO    		  
    1. Upon receipt of notification that the trade-in has been delivered to the vendor, remove it from the Fixed Assets System (FFX).
Return to Property Management Manual Contents