Policies and Procedures - Surplus Property

Policies and Procedures - Surplus Property

A. Purpose

B. Policy

C. Procedure

    1. Surplus Declaration Process

    2. Disbursement/Disposal Program

    a. Campus Notification process

    b. Trash-to-Treasure (T2T)

    c. Sale Process

    (1)Sealed Bid
    (2)Proceeds
    (3)Penalties/Action
    (4)Property Control Notification
    (5)Computer Related Equipment
    (6)Hazardous Material

    3. Exceptions to the Surplus Disposal Program

    (1)Trade-In
    (2)Goodwill Offerings
    (3)Cannibalization
    (4)Special Value

    4. Surplus Sales to Employees


A. Purpose:

The purpose of the Surplus Property Policy and Procedure is to provide a clear and concise guideline for the disbursement/disposal of all Bloomsburg University surplus property. It is the intent of the university to maximize the use of all equipment and furniture. The surplus disbursement/disposal procedures which follow will ensure that university property has provided a value beyond its worth, and that its disbursement/disposal will be conducted in an equitable, efficient and cost effective manner.

B. Policy:

It is the University's policy to receive the maximum amount of value from a piece of equipment or furniture. When it has been determined that no further value is to be realized by the University through utilization of a particular piece of equipment or furniture, said item shall be declared surplus. Once declared surplus, items will be disposed of as set forth in the following procedures. The University's Director of Procurement has the primary responsibility to monitor compliance with this policy.

C. Procedure:

1. Surplus Declaration Process

When it is determined by the user department that an item has served its original purpose and no longer provides value to the original department, this item shall be slated for determination of its eligibility for the surplus disbursement/disposal program.

The decision to designate an item for the surplus program must be made by the person with purchasing authority for the department in which the furniture/equipment is located.

Should a circumstance present itself where no one is in a position to make a surplus determination that decision will be made by the Director of Procurement.

2. Surplus Disbursement/Disposal Program

a. Campus Notification Process

If the decision has been made that an item will be surplus, the parties are encouraged to advertise, through e-mail, the availability of an item for campus use. The item may be transferred to another department at the discretion of the head of the former user’s department.

If this method fails to redistribute the property, the department head will contact the Director of Procurement, making them aware of the surplus declaration. Contact (preferably by e-mail) should describe the item (i.e.; make, model, serial number, BU tag number), location and condition of the item, and the name and phone number of a contact person.

Upon receipt of this notification, the Director of Procurement will have the property moved to the pole barn for future use. Preference will be given to reuse of this property by other campus departments. Facilities Services should be contacted by campus personnel wishing to view the property and the Director of Procurement will be the contact point for off-campus nonprofit organizations. The material will be awarded on a “first request-first award” basis. The department must then submit a maintenance work order on-line at the Facilities Management website to have the items moved to their office. The Director of Procurement will make arrangements for nonprofit organizations to pick up the material being donated to them and will maintain a list of goods and the organizations receiving them.

If the condition of an item is listed as poor, broken, not working or cannibalized, an item may be declared scrap at the discretion of the Director of Procurement and disposed of accordingly.

b. Offer to Other PASSHE Universities - All surplus items are initially offered to other PASSHE universities, the PASSHE universities are notified of the availability of the item(s) and given 10 days to respond. The receiving university is responsible for transporting the item(s) at its expense.

c. Trash-Treasure (T2T) - The University will donate, at the discretion of the Director of Procurement, surplus goods to the Columbia County United Way to be sold at the bi-annual Trash-to-Treasure sale held on the university campus.

d. Sale Process

(1) Sealed Bid

The Director of Procurement may choose to list surplus items for sale via the Asset Auction website (http://asset-auctions.assetnation.com/index.cfm/general/VenueIndustry/In...)..

(2) Proceeds

Generally proceeds from such non-asset sale will be deposited in the general fund of the University. For assets sold via bid or auction the proceeds are deposited in the Funds Center that held the asset. However, proceeds from the sale would first have to cover the net book value (cost – accumulated depreciation). So, for example, if the equipment cost $300K, the accumulated depreciation = $290,000,and the equipment is sold for $100,000, the respective funds center would receive a gain on sale of equipment for $90K which would supplement the respective budget.

(3) Property Control Notification

It is the responsibility of the Director of Procurement, or their designee, to notify property control personnel of the removal of or relocation of surplus property which has been assigned a BU asset number.

(4) Computer Related Equipment

The Office of Technology must be contacted prior to the transfer/surplus declaration of any computer, printer, or other network related equipment. To initiate this process, submit a help desk ticket or call (ext. 4357) the Technology Support Help Desk stating that the department has equipment to be evaluated. Tech Support staff will clean the hard drive and erase all user data files. If it is determined that the item has further use to the University, Tech Support will repurpose the equipment; i.e. it may be given to employee for home use with appropriate approvals in place, provided to a department for use by a student employee or for temporary use or salvaged for repair parts.

Computer equipment that has no further value to the University and/or that Tech Support will no longer support can be disposed of by one of the following methods:

Donation to a local nonprofit organization that has provided a written request for computer equipment. The requesting nonprofit agency will be responsible for removing donated computer equipment from surplus storage.

Donation to Columbia County United Way at the time of a Trash-to-Treasure sale held on the university campus.

An appropriate method of recycling/disposal that will not expose the University to environmental risk or violate federal, state, or local restrictions.

(5) Hazardous Material

A University department may not declare surplus any materials that have hazardous chemical compounds contained therein. Materials that exhibit the characteristics of ignitability, corrosiveness, reactivity, toxicity or are on any Federal or State hazardous waste lists, are considered to be hazardous. When it is determined that a product which contains hazardous chemical compounds is no longer needed, or of use, the item must be immediately reported to the Safety Officer. They will then decide the need for, and the method of disposal for the product. The department declaring the material surplus will not be charged for the cost of properly disposing of the products

3. Exceptions to the Surplus Disposal Program

Experience, foresight, product knowledge and other factors will lead one to understand that a particular item, which is no longer useful to the University may have further value to other nonprofit organizations.

Examples of situations which may lend themselves to this idea would be, but are not limited to; computer equipment, microscopes, lighting systems, lab furniture, residence hall furniture, etc. Disposal of these items, which are considered to be too good for the surplus program yet outdated for campus use, may be accomplished in one of several ways.

(a) Trade-in

Often a manufacturer will provide a trade-in value for old equipment when a new purchase of similar equipment is considered. The value of the trade-in offer may be questioned by those in the field and if it is determined, by the involved parties and the Procurement Director, that equitable value is being provided then an agreement may be reached. The traded equipment’s model, serial numbers and BU asset number will be listed on the purchase order designated for acquisition of the replacement items. Credit for these items will be an integral part of the overall purchase price of the new equipment order. Removal of the trade-in will be coordinated between the vendor and the end user of the new equipment.

The Assistant Director of Budget and Finance is to be notified of the asset number on removed asset, date of removal from campus (or date asset is no longer property of BU). The Assistant Director of Budget and Finance will remove the old asset from the books. If there is any remaining book value, it will go to the Gain/(Loss) on Disposal of Capital Assets account. The new asset will be recorded when it is received in through SAP. Any trade-in value above the invoice amount will be added to the new asset, with the offset going to the Gain/(Loss) on Disposal of Capital Assets account.

(b) Goodwill Offerings

At the discretion of the University’s Director of Procurement it may be decided that a goodwill offering will be made to another PASSHE university or an educational or nonprofit organization, as a donation. Notice of the availability will be made to these organizations by letter, e-mail or fax. Awards will be made on a first interested, first claim basis.

First preference will be given to other nonprofit educational institutions in our geographic region (contiguous counties). These goodwill offerings are meant furthermore to advance the University’s educational mission.

(c) Cannibalization

For some items it may be considered advantageous to use components of one unit to help reconstruct another. This process may leave nothing more than an empty shell of absolutely no value. Disposing of an item that has been cannibalized in a University dumpster is the most cost-effective method of disposal.

The decision to use this process belongs to the supervisor of those involved in the reconstruction process. The Director of Procurement must be notified when equipment is cannibalized, and before it is discarded. In all instances, if the item has a BU asset number, it is necessary to report the status of the item to property control personnel for the recording of the disposal.

(d) Special Value

Items that are perceived to have a potential special value (i.e. antiquities, artwork and memorabilia) will be handled separately. At the discretion of the Vice President for Finance and Administration and/or the President, the items will be maintained by an appropriate department at the University, such as the Art Dept or the University Archives.

(e) Removal of Unclaimed Items

If the university is not successful in removing the items from campus by public sale, the items will be declared as scrap and disposed of accordingly. In order to save the University hauling charges and to reduce landfill fees, scrap or recycling dealers may be contacted to haul the materials away at minimal or no expense.

4. Surplus Sales to Employees

The State Adverse Interest Law provides that no State employee shall have an adverse interest in any contract with the State agency by which he is employed. There is an adverse interest when an employee is a party to a contract or arrangement for the acquisition, use or disposal by a State agency of services or of supplies, materials, equipment, land or other personal or real property, or when you he/she is a stockholder, partner, member, agent, representative or employee of such party to such a contract or arrangement.

The sale of surplus property would constitute a contract or arrangement for the disposal by an agency of property. An employee who violates this statute commits a misdemeanor subjecting to them a fine not to exceed $1,000 and/or imprisonment for a period not to exceed one year, and automatic forfeiture of their employment with the agency.