PRP 5460 - Disposal/Movement of Fixed Assets/Equipment
|September, 1985||Original creation as PRP 5453||Administration and Finance|
|November 13, 1995||Approved as 5460||Cabinet|
|December 3, 2014||Review and Recommend changes to PRP 5460 – Surplus Property||GAC|
|March 25, 2015||Endorsed||University Forum|
1. RATIONALE FOR POLICY
To provide guidelines to faculty and staff for the management of surplus property
Surplus, fixed assets, scrap, life-cycle
3. BACKGROUND INFORMATION
The previous policy was only focused on the process for moving and transferring assets.
4.1. Property and materials that are purchased with University or grant funds, donated to the University, or acquired for the University through other means, are the property of the University and do not belong to specific individuals. The University will dispose of its surplus property in an environmentally and fiscally responsible manner in accordance with local, state, and federal regulations. A department or individual may not dispose of property unilaterally. Disposal of University property for personal gain or favor is prohibited. Equipment used as a trade-in as part of the purchase of new equipment is not considered surplus.
4.2. This policy provides the University with a surplus equipment disposal procedure that will ensure that University property has provided a value beyond its worth, and that the disposal will be conducted in an equitable, efficient, and cost effective manner.
4.3. 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.
4.4. Property purchased with federal funds and later transferred to the University may become surplus and must be disposed of according to any stated terms of the grant. Disposal of property with any federal restrictions should be coordinated with the Business’s Office, Grants Accountant. Property without restrictions may be disposed of according to normal University procedures.
4.5. Each department is responsible for all departmental assets and should use assets only for University business. If assets become missing (lost or stolen), please contact University Police immediately and provide them with detailed information.
4.6. Proceeds from non-asset sales will be deposited in the University General Institutional Support fund. Proceeds from asset sales (usually via bid or auction) are deposited in the funds center that held the asset if the proceeds from the sale are greater than the asset’s net book value (asset cost less accumulated depreciation). For example, if the equipment cost $300,000, the accumulated depreciation equals $290,000, and the equipment is sold for $100,000, a gain on sale of equipment for $90,000 and corresponding budget supplement would be recorded in the asset holder’s funds center. If, however, the proceeds are less than the asset’s net book value, the proceeds will be recorded in the Net Investment in Plant fund to offset the loss created by the disposal. Surplus sales from federal grants which are still active, should be deposited to the active grant account.
Procedures for the identification and disposition of surplus property are posted at the website listed below.
Surplus Property: Surplus property is equipment, furniture or property excluding real estate that is available for disposal, re-distribution, and sale for which Bloomsburg University no longer has a need or a useful purpose.
Scrap: Equipment, furniture or property (excluding real estate) in poor condition, obsolete in function or broken such as to be discarded as worthless or sold to be reused as parts; junk.
Fixed Asset: Items having a useful life of at least one year with an acquisition cost of $5,000 or more or the current amount established by the government negotiation agreement for indirect costs.
Asset Life Cycle: The process that governs an asset from being initially identified, through to being approved for reuse by users, and, eventually, to being withdrawn from use.