UCR Policies and Procedures

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Campus Policy Number: 750-99

University Property - Disposal & Use of
Policy Owner: Equipment Management
Effective Date: 9/15/94

    1. Policy
      • Business and Finance Bulletin BUS-38 sets forth general requirements for the disposal of excess University-owned material. This bulletin does not apply to agricultural products produced by the University or to Federally owned material in the custody of the University.
      • University property is defined as "any property, regardless of value, which is owned by the Regents of the University of California." This definition includes items for which the University has received title, even though the item may have been initially purchased with contract or grant funds.
      • Equipment Management is responsible for storage and disposal of equipment and supplies which are surplus to the campus. No other department, unit, or individual is authorized to dispose of, destroy, or dismantle University property without the consent of the Equipment Manager.
      • Equipment which is reported as excess by the custodial department will be screened by the Equipment Management Office against local campus needs. Also, if the original acquisition cost was $10,000 or more, an announcement of the item`s availability will be circulated to all U.C. campuses. These actions are performed to ensure the University equipment is utilized to the fullest extent.
      • Obsolete or scrapped items, regardless of whether they are inventorial or non-inventorial, must be examined by the Equipment Management Office before approval is given to disassemble the item for parts, or to deliver it to the Equipment Management warehouse.
      • Funds realized from the sale of excess equipment will be returned to the releasing department less handling costs. Equipment Management will retain handling the administrative costs, normally 10%. Funds appropriated to departments from the sale of excess equipment may be carried forward for one fiscal year. Balances remaining after one full fiscal year following the year of sale, however, will be transferred to the General Fund and lapsed at fiscal year end. Funds acquired by self-supporting operations may be carried forward for as long as necessary.
    2. Procedure
      1. Equipment containing oils/hazardous/toxic substances
      2. Equipment which contains hazardous/toxic substances may not be removed from the custodial department until the hazardous substances have been properly disposed of by Health & Safety. Only when certified safe for disposal can the equipment be turned in to Equipment Management. It is the responsibility of the custodial department to accomplish this action with Health & Safety.

      3. Inventorial Items
      4. The department prepares an Equipment Inventory Modification Request (EIMR) and a Disposal Request Form, for each item. Information to complete these forms can be obtained from the department's copy of the Annual Inventory Listing (EQ920).

        The EIMR is sent to Equipment Management who assumes accountability for the excess items when received.

        The Disposal Request form is attached to the item, and indicates the department and account to which sale proceeds are to be credited. It is extremely important that the condition of the items and the department account number (long version) be also provided. LEAVE THE FUND AND SUB NUMBER AREAS BLANK. The four copies of the form are handled as follows:

        • Yellow -- Department copy. This copy will be returned which receipt is acknowledged by Equipment Management.
        • White -- Filed in "Excess Disposal" file by Equipment Management.
        • Pink -- Remains attached to item. Utilized for sales accountability and destroyed when item is sold.
        • Hard -- Remains attached to item. Utilized for sales accountability and destroyed when items is sold.
      5. Non-Inventorial Items
      6. Departments must complete only the Disposal Request form, leaving the property number field blank.

      7. Delivery/Pickup of Excess Equipment
      8. When documentation is completed, property can be delivered to the Equipment Management warehouse in Corporation Yard after coordinating a delivery time. If desired, but subject to budget constraints, Equipment Management will pickup items less than 50 pounds that can be handled by one individual. There is a five item limit per department, per week. The department will initiate a C & R to have Physical Plant deliver equipment beyond the capability of itself or Equipment Management to move. Equipment should be disconnected and not leaking fluids.

    1. Equipment/material received from departments are assigned sales control numbers for tracking purposes. A monthly report is provided the departments reflecting items sold and sales revenue due. A transfer of funds is used to deposit funds in the department's sale of equipment account.
    2. Equipment and supplies turned in are screened by Equipment Management to determine if the item(s) should be sold as an item or for scrap. An item is sold for scrap if it no longer functions as intended, is not repairable, is destroyed or dismantled or is non-salable regardless of condition.
    3. Equipment and supplies not considered scrap are sold through Equipment Management's Retail Sales operation. Vehicles declared excess and turned over by the central garage or a department, are either advertised in a monthly or special bulletin for sale, on a sealed bid basis, or sent to the county auction.
    4. Pricing Policy
      • Pricing of items to be offered for sale is determined by three methods: useful life schedule; current market value; and department request.
      • The useful life schedule involves the use of depreciation and salvage values listed for each category of equipment. For example, a pool table would have a ten-year life span, with a 10% salvage value according to the schedule. Thus a five year old table originally costing $1,000 would be worth $550, five years useful = 45% depreciation.
      • Current market value is determined by ascertaining the selling/buying price of local and national vendors dealing with item in question. Thus, our pool table which is worth $550 via the useful life schedule method might be worth $350 on the current market.
      • Departments have the option of setting the price of their item to be offered for sale. Equipment Management will ask this price for ninety days. If, after this period, the item has not been sold, a new price is determined by either of the first two methods.
    5. Retail Sales Operation
      • Items are offered for sale to the general public on the first Tuesday of each month from 11:30 a.m. - 4:00 p.m., Corporation Yard. Sales are on a "first come, first served" basis. Entrance is determined by place in line; position in line, however, does not give a buyer preference for specific items. Payment is by cash or check. Personal checks are accepted only after verification of current address and phone number. All items are sold on a "as is, where is" basis; the buyer is responsible for removal of items purchased and the University makes no guarantee on the items it sells, either implied or expressed.
      • Departments wishing to purchase excess equipment are encouraged to do so via recharge prior to the monthly sale by making an appointment with Equipment Management.
    6. Disposition of Items Not Sold
      • Any item not sold after ninety days is either scrapped or the price is lowered.
      • Should it be determined that no demand exists for this item or the selling price is lower than the scrap value, the item is considered unsalable and sold for its weight in scrap.
    1. Contract and Grant equipment which is in the care and custody of the University, but for which the University does not have title, cannot be loaned without the specific written approval of the titleholder.
    2. University equipment cannot be loaned to any outside individuals, agencies or organizations unless the intended use is directly related to a University research program or is considered by the Department Chair to be in the best interest of the University. Factors to be considered in determining the best interest of the University shall include, but not be limited to, the relationship of the intended use to the University's mission of education, research and public service and perceived" "sensitivity" of such use. The written approval of the Materiel Manager or his designated representative is required prior to any equipment being removed from the Campus.
    3. On-Campus Loans: If equipment is loaned to another department for a short period, a memorandum of transaction should be filed in the lending department. If the period of the loan exceeds one year, it should be reported to Equipment Management on an EIMR.
    4. Off-Campus Loans: These loans are documented on the AUTHORIZATION TO USE UNIVERSITY PROPERTY IN AN OFF-CAMPUS LOCATION (Attachment 1, Storehouse form #71471-192) agreement and sent to the Equipment Manager for approval. The purpose for the off-campus loan should be stated on the agreement. These loans should not exceed one year in length; they can be renewed if a requirement still exists at the of the year.
    1. Normally, an agency will require the University to complete their loan agreement for equipment to be borrowed. This agreement should be forwarded to the Equipment Manager for approval.
    2. If the agency does not provide their own agreement, utilize the EQUIPMENT LOAN AGREEMENT (BORROWING), available from Equipment Management (Attachment 2).
    3. If UCR borrows equipment from an individual, an EMPLOYEE EQUIPMENT LOAN AGREEMENT must be executed; if not, the University is not liable for any damage or loss to this piece of equipment. This form is available from Equipment Management (Attachment 3).
    1. When it becomes necessary to remove a piece of equipment permanently from the Campus, for any reason, an Equipment Inventory Modification Request must be prepared by the custodial department.
    2. In the event that University-owned equipment is traded-in for a new acquisition, all pertinent information must be included on the Purchase Order, and an EIMR initiated.
    3. When a professor transfers to another institution and plans to take University equipment with him/her, approval is first required by his Department Chair, Office of Research Affairs (if grant/contract funded equipment) and Equipment Management. See 750-24 for additional information.
    1. Equipment purchased using Instructional Equipment Replacement funds to replace equipment which has become no longer usable (functionally obsolete), cost effective (economically obsolete), or useful (technologically obsolete), will either be turned in for disposal action to Equipment Management or retained by the department.
    2. In both instances, the custodial department will prepare an Equipment Management Modification Request (EIMR). In the event the EIMR requests disposal of equipment, arrangements will be made to have the equipment picked up for transport to Equipment Management's warehouse. The EIMR, requesting the property be retained in the department, will be assigned the appropriate inventory custodial code, fund number 19999 by Equipment Management and recorded on the department's inventory as "IER retained equipment (Attachment 4). The value will be recorded as a non-add to the total value of equipment in the department, in a separate listing of the annual EQ920.
    3. Departments submitting requisitions using IER money; e.g., fund numbers 19900 & 19905, a fund number specified as IER or fund number 20575, designated as obsolete Equipment Lottery, will identify the piece of equipment being replaced by inclusion of the property number in the block at the top of the requisition designed for PURPOSE OR USE (Attachment 5). New equipment purchased with IER money to accommodate changes in program emphasis or instructional mode, will be identified as such in the PURPOSE OR USE section of the requisition.
  8. Repair or maintenance of all property requires the approval of the Department Chair or designee. Positive identification of the individual to perform repair work on equipment must be obtained prior to any work being accomplished. If any item to be repaired must be removed from its usual location, the individual receiving the equipment shall sign a receipt describing the item being removed, along with the its serial number and UCR property number.