UNIVERSITY SYSTEM OF NEW HAMPSHIRE

FINANCIAL AND ADMINISTRATIVE PROCEDURES

 

DISPOSAL OF SURPLUS PROPERTY                                       Procedure:         11 - 030

Issued By:          Director of USNH/UNH Purchasing                                          Approved by:

A.  SUMMARY OF ADMINISTRATIVE PROCEDURE

This policy explains the process involved in the disposal of USNH surplus supplies and equipment.  Supplies and equipment acquired through USNH are the property of USNH or a state, federal or other sponsor.  A department may not unilaterally dispose of USNH or sponsor’s property.

1.      Definition of Surplus Property:  Surplus property is supplies or equipment which are obsolete, damaged, unusable or in excess of need.  This includes all tangible assets with the exception of real property,  (The sale or disposal of real property is addressed in BOT, Section VI,C.3, Policy on the Disposal of Real Property.)

2.      Why is a Disposal of Surplus Property Policy Necessary?  Internal controls are necessary to meet the fiduciary responsibilities of the USNH Trustees to protect and properly monitor USNH resources.  This policy facilitates the physical removal of surplus property, finds an alternative internal use, reduces the storage burden and maximizes USNH’s return on salable items. In addition, timely and proper recording of disposed property is important for maintaining an accurate financial system and safeguarding USNH assets.

3.      Responsibility:  Each department chair, dean, director, project director or business manager is responsible for all property under his/her control. Campus purchasing departments are responsible for determining the appropriate disposition of all surplus property and for authorizing and accomplishing such disposition.  They may delegate authority for disposition as size, condition, value, location, etc., or the item dictates.  USNH/UNH Property Control is responsible for properly recording disposal of surplus property and any proceeds received.  Campus facilities departments are responsible for removal and transportation of surplus property.

B. Detailed Operating procedure

1.      Preference for Disposition of Surplus Property:  When disposing of property, the following priority should be used to determine preferred recipients of surplus property: a) other departments on campus, b) other USNH campuses/departments, c) State of New Hampshire, d) other interested parties.

2.      Specific Campus Procedures

a.       KSC -Email KSC Purchasing with item(s) to be declared surplus.  KSC will promptly remove the surplus item from the department and handle the full disposition process from a central storage facility. 

b.      PSU - Departments may access the PSC Purchasing website to declare an item(s) surplus at http://plymouth.edu/purchase/Surplus.index.html The list of available surplus property is updated regularly on the PSC Purchasing website.  Campus Purchasing will work with the department to determine the disposition of the item(s) declared surplus. The Purchasing Department will provide specific instructions to the department which declared the property surplus, and facilitate the removal of the property.

c.       GSC - When one of the regional offices determines that there is surplus property, they notify the Dean’s Office.  The regional offices complete the appropriate on-line form at the UNH/USNH website at http://www.unh.edu/purchasing/surplus/index.html.  The request then follows the same process as UNH property (see section B.3.e. below).

d.      System Offices - Each department is responsible for completing the appropriate on-line form at the UNH/USNH website at http://www.unh.edu/purchasing/surplus/index.html.  The request then follows the same process as UNH property (see section B.3.e. below).

e.       UNH, UNHM, NHPTV, and UNH Foundation - The BSC Director/Manager is responsible for the following actions in this sequence: 1) contact Property Control if the property was purchased using government funds and 2) notify Property Control in writing if the property being disposed is on the equipment inventory list.  Items must be adequately identified; include tag/barcode number, description, etc. 3) determine the estimated current market value of the property, 4) notify Purchasing to determine proper disposition and complete the appropriate on-line form the UNH/USNH website at http://www.unh.edu/purchasing/surplus/index.html, and 5) approve the final disposition of all surplus property with an estimated current market value of less than $5,000.

                                                              i.      Thresholds:  The following thresholds should be used when determining the appropriate   procedure for the disposal of all surplus property.

1.      Surplus item(s) with an estimated current market value of $0 (i.e., obsolete, damaged, etc.) do not have to be advertised if the property is to be scrapped.  After departments have received permission to scrap/dispose via email from Purchasing, they may do so themselves or call Grounds and Roads (2-3518) directly for disposal arrangements.  If disposing of the items themselves they must make sure the property being disposed of is placed directly inside of a dumpster and not left laying or sitting beside one.  If an item to be disposed of is electronic or hazardous, purchasing will approve all such scrap requests and notify Property Control and Environmental Health & Safety (EH&S).  After approval by Purchasing, the department works directly with EH&S for removal/disposal of electronic/hazardous item(s).

 

2.      Surplus item(s) with an estimated current market value per unit of $1 to $1,000 will be advertised by the Purchasing Office. In addition, departments may place ads at their own expense offering the item(s) for sale in local or regional newspapers or trade magazines. Any department electing to advertise in this manner must notify UNH/USNH Purchasing when the ads will be placed so they may adjust the time period for accepting bids if necessary. At the end of the fourteen day advertising period, if no UNH department has bid on the item(s), the goods will be sold to the highest bidder within the next category of bidders. If there are no bidders for the item(s), the department may send a Request to Scrap or a Request to Donate to Purchasing, via the Purchasing website.  Surplus may be donated to a non-profit organization when a recipient is known.

3.      Surplus item(s) with an estimated current market value over $1,000 require UNH/USNH Purchasing Office approval before sale or disposal.  Purchasing is also available to help solicit bids and assist in selling items within this category.

                                                            ii.      Grounds and Roads Removal:  If there are no bidders for the item(s) and item(s) are not donated to a non-profit organization, they will be removed by the department contacting the Grounds and Roads Department for pickup.

                                                          iii.      Environmental Health & Safety (EH&S) Removal:  If there are no bidders for the electronic/hazardous item(s), they will be removed by EH&S after approval by Purchasing.

3.      Equipment:  (See Procedure 11-020, Acquisition of Equipment, for definition)

a.       Government Property:  For tagged equipment,  if the department is unsure of the funding for a piece of surplus equipment, the department should contact Property Control.  For disposal of property purchased with federal grant or contract funds, Property Control must obtain all necessary written approvals from the applicable sponsor and/or cognizant agency (Office of Naval Research) prior to advertisement or disposal.      If a department is requesting an item(s) be scrapped, the Request to Scrap form (http://www.unh.edu/purchasing/surplus/index.html) must be completed.  Purchasing will forward the request to Property Control for final approval.

b.      File Updates:  Property Control, as well as designated KSC and PSU personnel, currently have the only update capability to the equipment inventory data in Banner Fixed Assets.  This includes location, tag/barcode, serial number, custodian/responsible person, etc.  Financial updates, including cost and depreciation and related financial adjustments, to Banner Fixed Assets are only maintained by Property Control. 

4.      Proceeds from the Sale:  In all instances except State Auction and sales by KSC, PSU, and GSC, revenue from internal sales will be applied as a credit to a supplies expense account within the selling department’s Banner fund/org (see Procedure 10-001, Revenue Accounting, Section B.4, Sales of Departmental Equipment, for details). 

5.      Transfers:  The department must complete the Equipment Location Form (ELF) on the Purchasing website and submit the form to Property Control.

6.      Sale to USNH Employees:  All sales or transfers to employees must be approved by the campus purchasing department prior to the transfer, even in cases where estimated current market value is $0.  The sale price of all property sold to employees should approximate current market value, and associated receipts should be recorded as revenue to the selling departments.

7.      Transfers:  Who to Contact:

o       USNH/UNH Purchasing Office                     862-6187

o       USNH/UNH Property Control                       862-3645

o       PSU Purchasing Office                                   535-2587

o       KSC Purchasing Office                                  358-2493

o       GSC Dean’s Office                                        228-3000 (x323)

o       UNH Grounds & Roads                                 862-3518

o       UNH Environmental Health & Safety           862-0683