Created July 30, 1996 // Last Modified December 23, 2002
- CONTENTS -
INTRODUCTION
USM OFFICE OF PROPERTY MANAGEMENT
DEPARTMENTAL LIAISON CONTACT
PROPERTY LIST
POLICY FOR DISPOSAL OF UNIVERSITY EQUIPMENT
DISPOSAL OF SURPLUS ASSETS
EQUIPMENT RECYCLING
PROCEDURE FOR ACQUISITION OF FEDERAL SURPLUS PROPERTY
REQUIREMENTS FOR DISPOSAL: GRANTS & CONTRACTS
OFF-CAMPUS USE OF UNIVERSITY ASSETS/EQUIPMENT
STOLEN OR LOST PROPERTY
OFFICE OF PROPERTY MANAGEMENT MULTI-PURPOSE FORM
EXHIBIT A (Not Shown)
OFF-CAMPUS USE OF UNIVERSITY ASSETS/EQUIPMENT FORM
EXHIBIT B (Not Shown)
DECLARATION OF SURPLUS PROPERTY FORM
EXHIBIT C (Not Shown)
INTRODUCTION
All guidelines for the Office of Property Management and the University of Southern Maine (henceforth referred to as the University) are based upon the following fundamental concept:
Assets are owned by the University and/or the Federal Government for use by specific departments within the University. For purposes of this manual, assets may be defined as movable assets/equipment with an initial cost of $500.00 and/or a useful life of one year or more.
It is the responsibility of each department to account for the assets it uses. When a department has loose control over assets, the entire University is penalized by the department's improper disposal and/or replacement of assets/equipment. Proper control of assets includes responsibility for disposal, changes and/or transfers of assets, and a commitment to secure the highest possible value for all items sold or used as purchase trade-ins.
This manual explains the procedures departments are to follow to insure proper accountability of University assets. It is our goal that a department's assets be well-controlled by the proper use of purchase order numbers and the attachment of asset identification tags once the equipment is delivered.
A standardized capital asset/equipment disposal asset policy is a priority. Following is the established University policy for capital asset removal or disposition.
USM OFFICE OF PROPERTY MANAGEMENT
To facilitate a standard for the disposition of capital assets and equipment, as well as maintain current departmental asset inventories, the Office of Property Management has been established as an auxiliary of the Purchasing department. The Office of Property Management can be reached at: 501 Forest Ave. (P) - Extensions x5547/x5245
STAFF
Cheryl E. Leighton, Administrative Assistant II.............5245
Robert S. Smith, Director of Administrative Services........5246 (Property Liaison)
Robert Laplante, Property Manager.....5547
Basic functions provided by this office are:
DEPARTMENTAL LIAISON CONTACT
Property liaison contact provides the main line of communication between University departments and the Office of Property Management. To a great extent, the accuracy of the capital asset accounting system is dependent upon the quality of the communication between the Office of Property Management and University departments.
Because the property liaison contacts are responsible for a substantial capital asset account, they shall have direct access to their department heads and an expert knowledge of their department's functional areas.
RESPONSIBILITIES OF THE POSITION
Broadly stated, the responsibility of the property liaison contact is to provide a communication link between the departments and the Office of Property Management. The position also provides coordination of the capital asset activities within the department.
The responsibilities include:
1. Inform the Office of Property Management of the receipt of any new equipment. This will facilitate a timely update of each department's inventory listing.
2. Inform the Office of Property Management of any movement of property from one location to another.
3. Assist the Office of Property Management to locate movable equipment/assets during periodic on-site inventories.
4. Provide information to the Office of Property Management about surplus assets/equipment available for sale or disposal.
5. Review the annual inventory list provided by the Office of Property Management to assure its validity for both content and location.
PROPERTY LIST
The department property list will be compiled by the Office of Property Management and will identify the capital equipment/assets used by each department. Verification will be accomplished by on site inventories conducted every 18 to 24 months by the Office of Property Management and departmental personnel.
Each updated property listing should contain any changes caused by equipment transfers, acquisitions, or disposal made since the previous inventory. It is the responsibility of the departmental property liaison contact to reflect any changes discovered during the inventory cycle.
Upon completing the on-site inventory, the property listing will exhibit any unaccounted shortages. A listing of these shortages will be forwarded to the department head and the appropriate senior administrative officer for review and appropriate action.
Policy for Disposal of University Equipment
The options available to University departments for the disposal of surplus assets/equipment are:
1. Sale of equipment to other University departments. (Excluding Federal Property)
2. Sale of equipment to an outside party.
3. Equipment may be traded-in.
4. Equipment may be junked.
5. Grant transfer.
6. Acquisitions/disposition of Federal Surplus Property.
7. Disposal/Grants and contracts.
The procedures to follow for each option are presented on the following pages.
Departments may not sell or dispose of any equipment without the knowledge of and assistance of the Office of Property Management and the Executive Director of Business Services.
DISPOSAL OF SURPLUS ASSETS
Services Provided By the Office of Property Management:
The Office of Property Management can provide the following services once assets/equipment have been declared surplus:
1. Appraisal of the surplus item(s).
2. Advertising.
3. Assist with the preparation of the O.P.M. Multi-Purpose Form. (Exhibit A)
4. Process required journal voucher transfers.
5. Update the computerized inventory list.
To release equipment/assets for recycling or sale, the departmental liaison contact should call the Office of Property Management at extension x5245 or x5246. Initially, the surplus equipment/assets will remain with the selling department where qualified personnel would be available to demonstrate the item(s). The Office of Property Management will advertise the item(s) both internally and externally.
Surplus equipment/assets will be offered to the University community exclusively for the first thirty (30) days of their availability. If the equipment/assets are unsold at the end of that thirty (30) day period, the offer will be expanded to include outside parties. Sale of all items, both internal and external, will be "as is" on a first-come basis. Deliveries will be coordinated with the Office of Property Management.
Any items unsold at the end of the initial thirty (30) day offer period will be removed from the department for storage. Exceptions will be negotiated between the Office of Property Management and the selling department. Arrangements to view equipment/assets outside the University will be in accordance with University Policy.
Reimbursement to the selling department will be credited as follows:
U.S.M. Department to U.S.M. Department where Office of Property Management is involved* 75% of sale is credited to Department and 25% to Property Management.
U.S.M. Department to outside buyer 50% to Department and 50% to Property Management.
Junked Equipment" (Ownership transferred to the Office of Property Management).
*When the selling department secures the internal buyer, arranges physical transfer, and notifies the Office of Property Management of the transaction, full credit will be applied to their account.
Additional services the Office of Property Management will provide to the University community includes:
A. Pick-up and delivery, during normal business hours, of equipment sold outside the University.
B. Identify markets within the University for saleable items.
C. Locate potential outside buyers for saleable University items.
D. Provide expertise and assistance to the Departmental liaison contact to remove equipment/assets from the department.
E. Supply forms and assist in their processing to account for items sold, transferred, or junked.
The preceding delineation for asset utilization has the vigorous support of upper management. This support is indicative of a concern for the University as a whole rather than a sub-optimizing concern for any individual department. Recycling best serves the needs of the University to fully utilize its assets, reduce expenses, foster cooperation between departments, and ease the budgetary constraints of departments acquiring equipment.
EQUIPMENT RECYCLING
Surveys indicate a significant supply of usable surplus equipment within the University. Many departments have unused items which could benefit other departments. Primarily responsible for this situation is the reluctance of departments to surrender excess, unused equipment because of potential future use.
The success of the recycling program depends, in large part, on departments releasing unused equipment. potentially, departments participating in this program will be better able to acquire equipment more suitable to their needs because of the revenue generated by the sale of surplus items. Acquiring departments will also benefit because of the reduced purchase price of used equipment. The benefit to the University as a whole rests on the point that acquiring departments need not expend University funds .
A further benefit to the University is that surplus assets become utilized assets.
All surplus equipment should be consigned to the Office of Property Management for recycling. If all departments take advantage of recycling opportunities, all departments, and the University, will benefit.
Sale of Equipment to Other University Departments (Excluding Federal Property)
Once a buyer has been located for the surplus items, the following steps will be implemented:
1. The Office of Property Management will negotiate an acceptable item price between the buyer and seller.
2. The Dean, or an appropriate executive officer of the selling department should be consulted for approval of the sale price as well as the sale. NOTE - the Dean or appropriate executive officer must sign the O.P.M. Multi-Purpose Form before the transaction can be completed.
3. The selling department, in conjunction with the Office of Property Management, records the detail of the transaction on the O.P.M. Multi-Purpose Form. (Exhibit. A)
4. The selling department's property liaison contact should reflect the asset's removal on the department's inventory listing.
5. The Office of Property Management will update their data base to refect the change in departmental responsibility for the asset and complete the internal voucher transfers to complete the transaction.
Consignment of Items to Recycle and Sales:
Recycle and sales, a function of the Office of Property Management, is an available option for equipment disposal. Under this option, the Office of Property Management will retrieve and store the excess items and act as sales agent for the department.
Should a department choose the consignment option, their first action is to contact the Office of Property Management. The property liaison contact, along with Office of Property Management will complete the O.P.M. Multi-Purpose Form. The item for sale will then be removed to storage.
In accordance with University policy, the Office of Property Management will canvass University departments exclusively for thirty (30) days to find a potential buyer. This canvassing will be by means of the "Bargain Bulletin" published monthly in conjunction with the "Purchasing News and Clues". The Office of Property Management will also contact any parties who have made a previous request for the appropriate surplus item.
If a buyer for the item(s) cannot be found within the University, the Office of Property Management will initiate its search for an outside buyer. Once the item(s) have been sold, and payment received, budgetary credit for the sale will be shared on a 50/50 basis between basis between the originating department and the Office of Property Management. The Office of Property Management will monitor the sale and deposit of funds through to completion.
Any exception to this procedure must be authorized by the Vice President for Administration.
Occasionally, because of the specific/unusual nature of a piece of equipment, it may not be necessary to screen exclusively for an in-house buyer. In these situations the initial offering will be extended to outside as well as inside parties. These events will be closely monitored by the Office of Property Management for consistent and impartial treatment.
Only unrestricted federal surplus property may be processed through Office of Property Management in the same manner as regular University property. Please see regulations and guidelines for disposition of federal surplus property on Pages 12-14.
Disposal of "junked" Equipment:
Some items a department holds may no longer be usable. Throwing an item away is against University policy. Therefore, the Office of Property Management must be contacted before final action is taken on any movable asset/equipment is disposed of.
In reality, unusable equipment may have some limited salvage value or at the least may pose an unusual disposal problem.
There may also be a reuse potential for the item(s) in another department or area of the University. When junked equipment is turned over to the Office of Property Management ownership of the equipment transfers from the department to Office of Property Management.
The procedures for handling junked equipment are:
1. Contact the Office of Property Management at extensions x5245 or x5246 for pick-up of the item.
2. Complete and retain a copy of the O.P.M. Multi-Purpose. (Exhibit A)
3. The departmental property liaison contact should update the department's property listing to reflect the reduction in the department's inventory.
Trading-in Equipment Toward Replacement Equipment:
An efficient method of reducing the net purchase price of new equipment/assets is to use the equipment being replaced as a trade-in. This type of transaction is encouraged. However, it is essential that trade-in figures reflect the true value of the traded asset and that the purchase price of the new asset not be inflated. The Office of Property Management and the Executive Director of Business Services will review all trade-in transactions involving assets with an original purchase in excess of $500.00.
If the Director of Purchasing determines that the asset being traded is worth more than the trade-in allowance, the trading department should either negotiate a better trade-in agreement, without inflating the purchase price, or obtain senior administration officer approval.
Grant Transfer:
When an individual working on a grant at the University moves to another institution, a question may arise about the ownership of the equipment purchased with grant monies. In most instances, the equipment is the property of either the University or Federal Government. However, when the principal investigator's grant and research activity transfer to another location and the granting agency requests that the equipment also be transferred, standard procedure will be to release the equipment. The release m ust be approved by the Vice President for Administration.
When a release has been approved, the departmental liaison contact should notify the Office of Property Management. Property Management will inventory the equipment, remove identifying tags, and adjust the capital asset system. After this process has been completed, the individual leaving the University may then take possession of the item(s). It now becomes the responsibility and expense of the individual to pack and ship the equipment to the new location.
PROCEDURE FOR ACQUISITION OF FEDERAL SURPLUS PROPERTY
Basic Regulations:
The Federal Government makes surplus equipment available to state agencies which may in turn sell to qualified applicants such as the University. Government regulations may apply to particular surplus items even though they are the property of the University. All items acquired from federal agencies must be used solely for the purpose stated at the time of acquisition. These items may not be acquired for resale or personal use. Failure to comply with these regulations may result in the University losing its purchasing privilege.
Materials and equipment with a government acquisition cost of less than $500.00 do not require strict control but must be used in the normal course of higher education and/or research. Purchases under this category cannot be for donation or resale to persons or agencies outside the University. However, equipment or parts listed as "miscellaneous" with an acquisition cost of less than $500.00 do not require control.
Single item acquisition with a government purchase price of $500.00 or more as well as vehicles, aircraft and 50 foot or longer vessels are referred to as "Red Tag" items. This equipment must be strictly controlled according to federal regulations.
A. Time Period of Restriction on "Red Tag" Items.
1. Records and location on all "rolling stock" (vehicles, trailers, etc.) must be maintained for 24 months.
2. All other equipment must be controlled for 18 months. Records must reflect an accurate current location of the equipment sufficient to satisfy federal audit practices.
B. Requirements for Use of "Red Tag" Items.
1. All equipment must be used within the first year.
2. Proof of actual use must be available to federal auditors.
C. Rights to Salvage: Secondary Utilization Return on "Red Tag items".
1. The buyer may salvage any usable parts from, and dispose of the unused portion of, any item sold with cannibalization rights after 12 months. This option requires the execution of a government form stating that the equipment has been cannibalized and that the salvage parts have been put to use within one year.
2. When a part from a unit is required, the unit may be purchased and cannibalization rights requested while the item is still in the possession of federal surplus. Even though the equipment can be transported to the University, it cannot be cannibalized until federal permission has been received. The Office of Property Management must be notified of this action. When permission is received, follow the instructions in C-1 to notify the Federal Government. Both the Office of Property Management, and the O ffice of Government Industry Excess (GIE), must receive a completed copy of the cannibalization permission form. The Office of Property Management will then remove the item from the list of controlled equipment.
3. Cannibalization rights may also be obtained on a purchased item which is found to be only suitable for parts. A memo requesting permission, along with a copy of the original invoice, must be sent to GIE screening which will forward the request and invoice to the appropriate federal agency. Cannibalization cannot take place until written permission has been received. When permission has been received, proceed as in instruction C-1. GIE screening will send the University a copy of the cannibalization pe rmission form. At that time the Office of Property Management will remove the item from the list of controlled equipment.
4. Federal surplus property, no longer needed, may be returned to the Federal Surplus Property yard. Notify GIE screening with a memo and a copy of the original invoice of your intent. GIE Screening will contact the Federal Surplus Property Yard requesting permission. The Property Yard will authorize the return and issue a permission form. It is the principal investigator's responsibility to make arrangements to transport the equipment back to the Federal Surplus Property Yard. The Office of Property Man agement must receive a copy of the permission form to remove the item from the inventory listing.
5. If equipment is moved from its original location, the Office of Property Management must be notified in order to update the inventory records in the event of a Federal Audit.
REQUIREMENTS FOR DISPOSAL: GRANTS AND CONTRACTS
Unrestricted federal surplus property is disposed of in the same manner as other University owned property through Recycle and Sales. Please see consignment of items to the Office of Property Management on Pages 9 and 10.
Federal regulations, "A110" state that any item with an acquisition cost over $1000.00 acquired in conjunction with grants and contracts may not be disposed of without agency permission. Also, any money received from the sale of the item will be returned to the government based on the percent of government participation in the project. The law further states that, during the time that the equipment is held for use on the project for which it was acquired, the grantee shall make it available for use on ot her activities if such use will not interfere with the work on the project for which the property was originally acquired. When a project is completed, equipment may be passed on to other federally funded projects within the University if the federal agency does not recall the equipment for another purpose or institution.
The Office of Property Management should be contacted before making arrangements to dispose of equipment acquired in conjunction with grants or contracts that cost over $1000.00. The Office Property Management will inform the using department of all restrictions of disposal. It is the using department's responsibility to insure compliance with these restrictions.
OFF-CAMPUS USE OF UNIVERSITY ASSETS/EQUIPMENT
As a general policy, University property should not be removed from University premises. On rare and infrequent occasions, a piece of University equipment may be needed for use at a non- University location. Should there be a compelling and urgent need for University equipment to be removed from the University premises, permission for such removal should be obtained from the appropriate Dean or Executive Officer. In addition, all equipment should be accounted for on the University's inventory records before it is allowed off the campus. If an item is new and has not yet been recorded, the Office of Property Management should be contacted to add the item to the University's inventory system and the department's list of accountable assets prior to removal.
The lending department should also maintain a separate record of the asset, Example "B". This record should consist of: make, model number, serial number, University bar code number, the borrower's name and signature, date of loan, length of loan period, and the off-campus location of the asset during the loan period.
This information may prove invaluable to the lending department should the asset become lost, stolen or damaged. A copy of this record should be forwarded to the Office of Property Management.
If University equipment used off campus is stolen, the user should notify not only their local police force, but also the University Police and Safety.
Please be aware that the University does not have an all inclusive theft/loss policy on equipment used off campus. The user is responsible for equipment in their care and may want to review their home owner's or renter's insurance policy to make sure they are adequately protected.
THEFT/LOSS OF UNIVERSITY ASSETS/EQUIPMENT
Care should be taken to assure the safety and security of University assets/equipment at all times. However, despite positive efforts, items may occasionally be lost or stolen. When a loss is realized, the departmental property liaison should notify Police and Safety to complete a theft report. Information required on the theft report consists of brand name, serial number, model number, and USM identification number. Police and Safety will forward a copy of the report to Property Management. If the m issing or stolen property is subsequently located by the department, it is requested that Police and Safety and Property Management be notified.
Reporting the loss of University equipment used off-campus is subject to a different set of procedures. As well as informing the University police, the municipal police force where the loss/theft occurred should be notified. A detailed note listing brand name, serial number, model number, USM tag number, description and last known location of the item(s) should be forwarded to Property Management.
If the lost/stolen items are insured under the University's risk management system, the departmental liaison should also contact Property Management, x5245, to complete the process. This step should be taken whether the loss occurred on-campus or off-campus.
Created July 30, 1996 // Last Modified December 23, 2002
![[BusHome]](icons/home.gif){kind=icon}
Business Services Home Page