1. Overview

   This policy establishes the requirement for the disposition of university surplus or excess property in compliance with other applicable university policies and state and federal laws. Surplus disbursement/disposal procedures ensure that university property provides value to the full extent of its worth and that disbursement/disposal is conducted equitably, efficiently, and cost-effective. 

   When it is determined that a university owned asset has no further productive use or value within the unit this item will be considered for designation with the surplus disbursement/disposal program. Departments declaring assets as surplus or excess state will contact moving and surplus to initiate the disposition process. The property will be removed from the department for disposition by moving and surplus and evaluated for resale potential. No one is permitted to donate, give away, sell, or otherwise dispose of any surplus or excess property, except by the procedure outlined in this policy. Equipment used as a trade-in as part of the purchase of new equipment is not considered surplus.

   This policy does not affect the procedures of policy  44.104 .

2. Departmental responsibilities and procedures

   1. All equipment

      In the disposal of all surplus items, departments must proceed as follows:

      1. Every department or planning unit should have an individual who is authorized to determine when property (equipment, supplies, or other material assets) is no longer useful to the department.
      2. When the authorized individual determines that property is no longer useful, moving and surplus will be contacted to arrange for disposition.
      3. The department must report inventory changes and deletions directly to inventory control, in accordance with policy  19.054 .

   2. Red tag equipment

      Red-tag equipment is equipment marked with a red, rather than the usual green university inventory tag. A red tag designates that the equipment was purchased using external funds via a grant or contract or equipment furnished or loaned to the university where the title remains with the sponsor, not the university. with grant funds and is titled to the granting agency, not the university. Red-tag equipment should not be designated as surplus without approval from the equipment inventory office. 

3. Moving and surplus responsibilities and procedures

   Upon receiving a departmental surplus request, moving and surplus will:

   1. Schedule to move the surplus property to the surplus warehouse;
   2. Record the item description and general condition;
   3. Add the item to surplus property inventory if it has economic value and direct it to the recycling program if it does not; and 

   4. Locate inventory control numbers and report changes to inventory control for removal from the department's inventory records. This provision does not relieve the department from its responsibility to contact inventory control directly, as stated in part  (B)(1)(c)  of this policy.
      
      Assets will be made available for departmental purchase or external sale via the surplus store or by auction as deemed appropriate by moving and surplus. 

      At the discretion of the moving services manager, it may be decided that a goodwill offering will be made as a donation to another state educational or non-profit (501c3) if public sale or auction disposal is not deemed appropriate. Organizations will be required to provide tax identification and awards will be made on a first-interested, first-claimed basis. First preference will be given to other nonprofit education institutions in our local geographic region. These goodwill offerings are meant to enhance and further the university’s commitment to organizational stewardship through education, research, community service, and sustainability. Donations will not be allowable for political purposes or for-profit organizations. 

   5. Specialized items (e.g., aircraft) that are not suitable for the typical public will be referred to university procurement to determine the of most appropriate method of sale. 

4. Disbursement of income generated

   1. Sales conducted through moving and surplus 

      The division of the income generated by sale of surplus items through the moving and surplus office depends on the value of the item:

      1. If the income generated from the item's sale is one thousand dollars or less, the moving and surplus office will retain all the proceeds.
      2. If the income generated from the sale of a surplus item is greater than one thousand dollars, fifty per cent of the proceeds will be returned to the contributing department.  

      When the proceeds from the sale are critical to funding the replacement of the item with a similar item, departments may request up to seventy-five percent of the proceeds  by submitting a written request and justification to the moving services manager.

5. Regional campuses

   Each regional campus dean will manage the disposition of surplus or excess property on their regional campus, ensuing the procedures outlined in this policy are followed. 

Forms, References, and History

1. Forms

   There are no forms specific to this policy.

2. References

   The following items are relevant to this policy:

   1. Policy  19.054 , "Equipment Inventory Control."
   2. Policy  44.104 , "Hazardous Materials Management."

3. History

   Draft versions of this policy that were circulated for review, their cover memos, their forms, and Reviewers' comments on them are available on the password-protected Review site.

   Prior versions of this policy were approved on:

   1. April 23, 2007
   2. December 1, 1997
   3. October 2, 1978