UCR

UCR Policies and Procedures

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For a hardcopy pdf of this document, contact the Office of Compliance (2-8246).

Policy Title:                   University Property - Disposal & Use of

Policy Number:             750-99

Responsible Officer:

Equipment Manager and Logistics Manager

Responsible Office:

Equipment Management and Logistics Services

Origination Date:

09/15/1994

Date of Revision:

07/05/2017

Date of Last Review:

07/05/2017

Scope:

Guidance Regarding University-Owned Property

Note:  Property conditionally titled to the University may be subject to additional requirements. For property titled to State, Federal, or other outside entities, refer to P&P 750-24; Government Contract and Grant Equipment - Management of

 

      I.        POLICY SUMMARY

 

The policy and regulations governing the management, control, and disposition of property titled to or under the custodial control of the University are provided in University of California (UC) Business & Finance Bulletin BUS-29: Management and Control of University Equipment (BUS-29) and University of California (UC) Business & Finance Bulletin BUS-38: Disposition of University-Owned Property (BUS-38). This policy further elaborates and implements the local campus-wide procedures that are used to support these policies at the University of California, Riverside.

 

    II.        DEFINITIONS

 

All capitalized terms used but not defined herein shall have the meaning as defined within University of California (UC) Business & Finance Bulletin BUS-29: Management and Control of University Equipment (BUS-29).

 

  III.        POLICY TEXT

 

A.   DISPOSAL OF UNIVERSITY PROPERTY

1.    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.  Federally owned materials disposals are covered in BUS-29 and elaborated on in local policy 750-24.

2.    Logistics Services is responsible for storage and disposal of equipment and supplies which are excess (surplus) to the campus. No other department, unit, or individual is authorized to dispose of, destroy, or dismantle University property without the consent of either the campus Logistic Manager or Equipment Manager.

3.    Equipment which is reported as excess by the custodial department will be screened by Logistic Services against local campus needs. Also, if the original acquisition cost was $50,000 or more, an announcement of the item`s availability is required to be circulated to all UC campuses. These actions are performed to ensure the University equipment is utilized to the fullest extent.

4.    Obsolete or scrapped items, regardless of whether they are inventorial or non-inventorial, must be examined by Logistics Services or Equipment Management before approval is given to disassemble the item for parts, or to deliver it to the Logistic Services Excess Property (Surplus) Operation warehouse.

5.    Funds realized from the sale of excess property will be returned to the releasing department less handling costs. Logistic Services will retain handling/administrative costs, according to published rates and listed in the table below. 

Net Revenue from Sale

Percent Retained by Excess Property

$0 - $60

100%

$61 - $5,000

20%

$5,001 - $100,000

10%

$100,001 >

5%

 

B.   SALE OF EXCESS EQUIPMENT

1   Excess property can ONLY be sold through the Logistic Services Department or if specifically authorized by the campus’ Logistics Manager or Equipment Manager.

2.  Property received from departments will be notated/recorded as received and departments will be able to view revenue earned, for any given period, within the Excess Property system.  A budgetary transfer (BEA) is used to reflect proceeds in the department's sale of equipment FAU, within Fund 68310.

3.  Equipment and supplies turned in are screened by Logistic Services to determine if the property will 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.

4. Property that is not considered scrap is sold through the Logistic Services Excess Property (Surplus) Operation. Vehicles declared excess and turned over by Fleet Services or a campus department is sold through an online auction process.

5. Pricing Policy

a.    The pricing of property to be offered for sale by Logistic Services on behalf of a campus department is generally determined by the following three methods:

1)    The fair market value (FMV) based on the University’s associated useful life schedule;

2)    the current market value (CMV); and

3)    the department request. See section 8 below.

6.    The FMV 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.

7.    CMV 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.

8.    Departments have the option of setting the price of their item to be offered for sale. Logistic Services will ask this price for ninety (90) days. If, after this period, the item has not been sold, a new price is determined by either of the first two methods.

C.   RETAIL SALES OPERATION

1.      Excess Property is offered for sale to the general public on the first Tuesday of each month from 11:30 a.m. - 4:00 p.m., at the Excess Property Warehouse located in the University' Corporation Yard. Sales are on a "first come, first served" basis. Entrance to the sale 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. Credit Card payment will be the only form of payment by Fall of 2017.  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.

2.      Departments wishing to purchase excess property are encouraged to do so via recharge prior to the monthly sale by making an appointment with Logistics Services.

D.   DISPOSITION OF ITEMS NOT SOLD

1.    Any item not sold after ninety days is either scrapped or the price is lowered.

2.    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.

E.   PROPERTY LOANS

1.    Contract and Grant property which is in the care and custody of the University, but for which the University does not have an unconditional title, cannot be loaned without the specific written approval of the title holder. Refer to policy 750-24 for additional details to non-university titled property.

2.    University property 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 the perceived "sensitivity" of such use. The written approval of the Associate Vice Chancellor of Business & Financial Services or their designated representative is required prior to any equipment being removed from the university’s property.

3.    On-Campus Loans: If inventorial equipment is loaned from one department to another for a short period, a memorandum of transaction must be filed in the lending department. If the period of the loan exceeds one year, it will be considered a transfer and reported to Equipment Management via an EIMR in the Asset Management System (AMS).

4.    Off-Campus Loans: These loans are documented on the Authorization to Use University Property in an Off-Campus Location Form. If the loan involves inventorial equipment the form must be sent to the Equipment Manager for review and approval. If no inventorial equipment is involved in the loan than only local department approval is required. The purpose for the off-campus loan must be stated on the agreement. These loans must not exceed one year in length, however, they can be renewed annually if a requirement still exists after a year.

5.    The University is not responsible for loss or damage to any personal property owned by employees unless an Employee Equipment Loan Agreement is executed between the employee and the University for the usage of the property. This property must be carefully marked to reflect the owner of the property.

F.    BORROWING OF EQUIPMENT BY UCR DEPARTMENTS FROM THIRD PARTY

1.    Normally, an agency or other third party will require the University to complete their loan agreement for equipment that is being borrowed. This agreement must be forwarded to the Office of Business Contracts or the Office of Research for review and approval. Equipment Manager is required to be notified of the loan and must be copied on the agreements communications.

2.    If the agency does not provide their own agreement, reach out to the Office of Business Contracts or the Office of Research.

3.    If the University 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.

G.   PERMANENT REMOVAL, TRANSFER, OR TRADE-IN

1.    When it becomes necessary to remove a piece of equipment permanently from the Campus, for any reason, an Equipment Inventory Modification Request (EIMR) must be prepared by the custodial department and submitted to Equipment Management.

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 is required to be initiated in the AMS.

3.    Equipment Management needs to be contracts directly for any transfers of equipment between the various University of California campuses.

4.  Logistics Services needs to be contacted directly for any transfer of equipment to non-University of California institutions, as special restrictions apply. University of California policy is that Federally funded items, once determined title is vested with the University can be transferred at no charge only with Department Chair’s approval; these items are also permitted to be sold to the receiving institution;  reimbursement is required on State and University funded equipment at fair market value.  

5. 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 Logistics Services. Refer to policy  750-24 for additional information.

H.   –THIS SECTION PENDING REVIEW

INSTRUCTIONAL EQUIPMENT REPLACEMENT (IER)

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 Logistics Services 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 Logistics Service'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. 

I.     REPAIR AND MAINTENANCE

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 will sign a receipt describing the item being removed, along with the its serial number and University assigned property number.

 

  IV.        RESPONSIBILITIES

 

Refer to BUS-29 for details pertaining to the responsibilities assigned to the Chancellor, Equipment Administrator, Surplus Administrator, Head of the Custodial Departments, and Principle Investigators.

 

   V.        PROCEDURES

 

A.    SURPLUS PROPERTY TRANSFER PROCEDURES

1.    Property containing oils/hazardous/toxic substances

Any property which contains hazardous and/or toxic substances may not be removed from the custodial department until the hazardous substances have been properly disposed of by the Environmental Health & Safety (EH&S) department. Only when certified safe for disposal by EH&S can the property be turned in to Logistics Services. It is the responsibility of the custodial department to accomplish this action with Environmental Health & Safety.

2.    INVENTORIAL EQUIPMENT ASSETS

a.    The department is required to prepare an Equipment Inventory Modification Request (EIMR) and a Disposal Request in the Excess Property system, for each item of equipment.

b.    The EIMR is submitted via the Asset Management System (AMS). The Logistic Services Department will notify Equipment Management when the inventorial equipment reaches Excess Property where it will be recorded/transferred to Excess Property.

c.    The Disposal/Pickup Request confirmation form is attached to the item, and indicates the department and department FAU to which sale proceeds are to be credited. It is extremely important that the condition of the items be notated.

3.    NON-INVENTORIAL PROPERTY

Departments must complete only the Disposal/Pickup Request form, leaving the property number field blank.

4.    DELIVERY/PICKUP OF EXCESS PROPERTY

After the disposal request has been entered into the Excess Property system, property can be delivered to the Logistic Services warehouse in Corporation Yard after coordinating a delivery time. If desired, but subject to budget constraints Logistic Services will pick-up 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 work order within the Facilities Work Order System to have Physical Plant deliver equipment beyond the capability of itself or Logistic Services to move. All property must be disconnected and not leaking fluids prior to initiating the transfer. 

B.   OTHER DISPOSITIONS AND TRANSFERS

Refer to the online Asset Management System User Guide for information relating to department procedures for asset dispositions and transfers.

 

  VI.        FORMS

·         Authorization to Use University Property in an Off-Campus Location:

http://bfs.ucr.edu/equipment/documents/offcampusloan.pdf

·         Employee Equipment Loan Agreement:

http://bfs.ucr.edu/equipment/documents/emploeeloanagreement.pdf

 

VII.        CONTACTS

 

Subject

Contact

Phone

Email

Non-Surplus Related Policy

Steve Staples,
Equipment Manager

(951)827–4209

steven.staples@ucr.edu

Surplus Policy

Dolores Cordova,

Logistic Manager

(951)827–5542

dolores.cordova@ucr.edu

 

VIII.        RELATED INFORMATION

 

A.   OFFICE OF MANAGEMENT AND BUDGET (OMB) CIRCULARS

1.    Uniform Guidance (2 CFR 200): Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards

2.    A-21: Cost Principles for Educational Institutions (for awards prior to Uniform Guidance)

3.    A-110: Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations (for awards prior to Uniform Guidance)

4.    A-133: Audits of States, Local Governments, and Non-Profit Organizations (for awards prior to Uniform Guidance)

B.   FEDERAL ACQUISITION REGULATIONS (FAR)

1.    FAR Part 45: Government Property

2.    FAR Part 52.245-1: Government Property

C.   UNIVERSITY BUSINESS & FINANCE BULLETINS

1.    A-51: Application of Proceeds from the Sale, Trade-in or Transfer of University

2.    BUS-19: Registration and Licensing of University-Owned Vehicles

3.    BUS-29: Management and Control of University Equipment

4.    BUS-38: Disposal of Excess Material and Transfer University-Owned Property

5.    BUS-43: Materiel Management

D.   UNIVERSITY OF CALIFORNIA, CONTRACTS AND GRANTS MANUAL

E.   UNIVERSITY OF CALIFORNIA, ACCOUNTING MANUAL

F.    LOCAL UCR POLICIES AND PROCEDURES

1.    750-12: Purpose and Responsibilities of Equipment Management

2.    750-18: Purchase & Management of Fabricated Equipment

3.    750-24: Management of Government Contract & Grant Equipment

4.    750-36: Lost and Found Property

G.   UNIVERSITY WEBSITES

1.    UCR Equipment Management Site: http://bfs.ucr.edu/equipment/

2.    UCOP Equipment Management Site: http://www.ucop.edu/procurement-services/policies-forms/equipment-management.html

3.    Excess Property (Surplus) Site: http://matmgmt.ucr.edu/storehouse/surplus.html

4.    AMS User Guide: http://bfs.ucr.edu/equipment/amsguide_home.html

 

  IX.        FREQUENTLY ASKED QUESTIONS

 

Not applicable.

 

   X.        REVISION HISTORY

The policy and associated procedures are reviewed, at a minimum every two years, by the Associate Vice Chancellor of Business & Financial Services and Controller or designee. The Office of Compliance updates this policy and associated procedures to reflect changes to relate policies or governing standards, regulations, laws, and other such guidance as often as required.