UW System requires the University to report and track any item whose acquisition cost (or value, if the item was donated) is $5,000 or more and has a useful life of more than one year. After delivery and installation of the capital asset are completed, it is necessary for the Business Office to inspect and identify the asset with a bar code sticker and an id number. The asset is then recorded in the university's capital inventory records. University departments should report any donations received during the fiscal year to the Business Office. The Business Office will determine whether or not the donations need to be recorded in the capital inventory records.
UW System policy paper F33 outlines the parameters for tracking capital asset acquisitions and disposals.
Surplus Property/Disposal of Capital Assets - if you need to dispose of an item that has a bar code sticker on it, you will need to fill out the surplus property declaration form and forward it to the Business Office (Old Main 206).
Surplus Property Policy & Procedure
- State Procurement Manuals PRO-F-1 (Surplus Property Disposal-Vehicles and Related Equipment) and PRO-F-3 (Surplus Property Disposal-Non-vehicles) are considered integral parts of this document and the reader should be familiar with the policies and procedures set forth in these manuals before reading this document.
- All monies collected in regard to surplus property disposal will be in compliance with the campus cash handling policy.
- All monies collected will be deposited in the appropriate Surplus Property cost center. Proceeds, and associated expenses, from the sale of items that will be replaced must be processed in Surplus Property cost center, 136-710109-7. Proceeds, and associated expenses, from the sale of items that will not be replaced must be processed in the Budget Stabilization cost center, 963-029338-1.
Departments declaring surplus items will:
- Attempt to sell the surplus item to other campus departments by advertising the item via campus email
- Interested parties will contact the selling department directly and negotiate the price. The buying and selling departments will arrange delivery. A Facilities Management work order can be submitted to have the campus Grounds personnel effect the delivery at the established campus chargeback rate. The selling department will be responsible for initiating a journal voucher to complete the transfer of funds. The selling department will retain the proceeds for use as discretionary funding.
- If the condition of the item or the nature of its use precludes the ability of another department to use it, this step can be skipped.
- Contact the campus surplus property manager to dispose of the items. At this point, any proceeds generated from the sale are at the disposal of the campus administration within the parameters of the State Procurement rules and the department declaring the item surplus gives up any right to the funds generated from the sale.
Surplus Property Manager will:
- Arrange for the pickup and storage of the surplus item.
- Determine if the item has a campus property tag, which indicates that the item is on the campus capital inventory. If so, a Surplus Declaration Form will be completed and sent to the campus Capital Inventory Manager.
The Capital Inventory Manager will determine if the item had an original purchase price of more than $25,000.
- If yes, Capital Inventory Manager will instruct Surplus Property Manager to obtain authorization from State Surplus Property Program (SSPP) in accordance with procedures set up in PRO-F-3. While pending, the Surplus Property Manager will hold the surplus item until authorization is obtained. Note: SSPP authorization is required before disposing of any vehicle, by any method; see PRO-F-1.
- If no, Capital Inventory Manager will instruct Surplus Property Manager to proceed with disposition of item (except vehicles which must be pre-approved for sale by SSPP).
- Determine whether the item has any value
- Non-vehicles with no value will be disposed of by the most economical means including sale for scrap. Vehicles and related equipment will be disposed of in accordance with PRO-F-1. Proceeds, and associated expenses, from a scrap sale will be deposited into the appropriate surplus property cost center.
- Non-vehicle items with value will be disposed of in accordance with the methods prescribed in the summary table of PRO-F-3 which lists different sale methods depending on item value.
- Vehicle items with value will be disposed of in accordance with the methods prescribed in PRO-F-1.
- Maintain records on surplus property sales
- Keep an annual file by calendar year for all sales and associated expenses.
- Keep a log of items sold and deposited into the Surplus Property cost centers listing the description and amount received. The log should include a column to declare whether the funds were deposited in the Surplus Property or Budget Stabilization cost center.
- Prepare and submit by January 3rd the annual report to SSPP listing all items that were sold in the previous year for an amount in excess of $5,000.
results of surplus property with a current value over $25,000 will be reported on the declaration form as instructed in PRO-F-3, section V.