Section: Procurement and Auxiliary Services
Policy Number: 5-6
Policy Name: Use and Disposal of University Equipment and Material
Date: April 30, 1984
Revisions: October 16, 1987; June 5, 1989; April 2000; March 19, 2008; March 15, 2010

  1. PURPOSE

    To provide for effective control and a coordinated approach to the use and disposal of University equipment and material.

  2. POLICY

    All equipment and material is the property of the University as a whole, unless otherwise clearly indicated as outlined below. This equipment and material is to be utilized in the most effective manner to meet the University's goals and objectives. When it is decided to dispose of University equipment or material, the Departments of Supporting Services and Procurement Services shall be notified to insure that established University policies and procedures are followed. All internal collection and disposal policies must refer to this policy name and number.

    1. Responsible Authority

      The Department of Supporting Services shall be responsible for coordinating the internal relocation or disposal of all University equipment and material. The Director of Procurement shall be responsible for the external disposition of such property and equipment in conjunction with Supporting Services as specified herein.

      Internal relocation is defined to mean University of Delaware departments only. External disposition includes sale to University employees, trade-in on new equipment, and sale or other disposition to vendors or individuals not related to the University.

      Disposal authority follows the following limits and refers to the original cost of the equipment as recorded in the Asset Management System:

      Directors/Chairpersons up to $100,000
      Vice Presidents/Deans up to $250,000
      Provost/Executive Vice President up to $500,000
      President over $500,000
    2. Research Grant Equipment

      Equipment purchased through research or grant funds shall be utilized and disposed of in accordance with existing University policy and consistent with the grant/contract provisions. Equipment purchased or on loan through such research/grant funds may be transferred with the Principal Investigator to another institution in accordance with University Policy 6-8, and with permission of the granting agency.

      Equipment no longer utilized and/or needed by the granting agency and which becomes the property of the University shall be made available for redistribution to other University units as outlined in University Policy 6-8, or disposed of as outlined below.

      Equipment remaining the property of the granting agency will be disposed of as specified in the grant.

  3. PROCEDURES FOR DISPOSAL

    1. Equipment Disposal (The term "equipment" refers to those assets defined as equipment in University policy 5-10.)

      1. Determination of serviceability and a decision to declare item(s) surplus to departmental needs will be made by the Director/Chairperson of the unit to which the equipment is assigned, utilizing the equipment relocation form.

      2. Interdepartmental transfer of serviceable equipment items is encouraged if such transfer is mutually advantageous. However, in all cases of transfer and/or relocation, an appropriate "Electronic Relocation of Equipment" form must be submitted to insure accuracy and accountability within the Asset Management system.

      3. A request for reassignment or disposal, with an "Electronic Relocation of Equipment" form will be submitted to the Director of Procurement, with appropriate information and signature(s) of approval, for all equipment transactions that affect the Asset Management inventory system.

        1. Serviceable/Unserviceable Equipment

          1. Items may be declared unserviceable, not reparable, junk, scrap or cannibalized by the owning department, but may not be disposed of until the department processes an appropriate "Electronic Relocation of Equipment" Form and receives approvals in accordance with II.A. above prior to disposal.

          2. After submitting the Electronic Relocation of Equipment Form, the department will have forwarded to them the original of the form with appropriate signatures and approval/disapproval. etc. Upon receipt of the Electronic Relocation of Equipment Form, the department will contact the University's Movers section for relocation or disposal as indicated on the Electronic Relocation of Equipment Form.

        2. Serviceable equipment notification

          1. Notification to the University community of available serviceable equipment will be made by the Department of Supporting Services or Procurement Services through the most appropriate method of communication including UD Classified.

          2. Surplus items will be made available at no cost (except for moving, installation, etc.) to a requesting department. In the event of multiple requests, reassignment will be determined by the next higher authority having responsibility for all the requesting units.

          3. In the event there is no internal request for reassignment of surplus equipment within sixty (30) days from the initial posting of notice of availability, further disposal efforts will be made in the following order:

            1. Trade-in on new equipment by Procurement Services. Departments may utilize surplus (if bought with departmental funds) as trade-in on new equipment (bought with departmental funds).

            2. Bid to outside firms (only business/industrial/institutional type goods) by Procurement Services.

            3. Sale to University of Delaware I.D. holders, as determined by the Director of Supporting Services. (Sale price shall be determined by the Director of Procurement based upon outside market value as well as the consideration for needed space.)

            4. NOTE: Disassembly if necessary prior to relocation, will be at the department's expense.

          4. Equipment items not disposed of within 180 days from date of availability will be offered by the Procurement Department to State of Delaware Department of Administrative Services (Division of Purchasing). If refused by that agency, items will be declared "scrap", relocated to the salvage yard, and removed from the Asset Management inventory.

            Upon sufficient accumulation, requests for bids from scrap dealers or Purchase Order(s) for removal as appropriate, will be issued by the Procurement Services Department. Funding for Purchase Orders, if required, will be from the University General Scrap and Surplus Account.

        3. Disposal of Vehicles and Grounds Equipment - such equipment will be disposed of by trade-in for a replacement unit whenever possible. Should the trade-in value be less than an established wholesale price or obviously less than a potential market value, such equipment will be first offered to University employees and outside individuals for sale by bid, or advertised publicly for sale by bid at not less than the wholesale price for automobiles or trucks, and a reasonable price as established by the Director of Procurement Services for other items. Sealed bids will then be received.

      4. Non-Equipment Disposal

        The department Chairperson/Director will determine the serviceability and disposition of material deemed surplus to the department's needs.

        1. Unserviceable Material

          Material no longer considered serviceable may be disposed of by the department in the most economical manner consistent with sound environmental practices and the necessity to avoid an image of waste and inefficiency. Facilities Managements' Grounds Section personnel will be utilized when practical for the disposal of such material.

        2. Serviceable Material

          1. Notify the Director of Supporting Services of Serviceable Material available for relocation or disposal by calling Central Delivery Receiving 831-2157.

          2. Quantity, volume, cost, available storage space, and reuse or sale potential will determine the sequence and extent of disposal actions by Supporting Services. Reuse by another department, if appropriate, will be considered first.

            1. If reuse is not practical, and quantity/volume are such that other institutional agencies may be potential buyers, an effort to sell the material in place will be made by the Procurement Department prior to relocating the material on campus for other disposal action(s).

            2. If the material cannot be sold (in place) the Director of Supporting Services will determine whether the material should be scrapped or relocated to the General Services Building warehouse for disposal actions in the order cited for equipment disposal in paragraph III A. 3. b. 3) above.

            3. If material relocated to the General Services Building is not sold, and further disposal action (scrap/junk/salvage, etc.) is necessary, costs incurred for such disposal will be paid by the department requesting disposal. Material so identified will not be held in the GSB warehouse for more than six months.

      5. Bulk Trash and Metal

        The disposal of bulk trash and scrap metal will be coordinated through Facilities Management, Grounds Division, New London Road. As scrap metal and bulk trash accumulates, Facilities Management shall arrange for periodic disposal by the appropriate supplier. Disposition of monies received from the sale will be deposited in the Scrap and Surplus Account, administered by the Director of Procurement Services. Facilities Financial Services shall provide Procurement Services with a copy of the cash transmittal indicating proof of deposit by the Cashier's Office.

        Departments are required to fund disposal of scrap metal and bulk trash items that are placed in the Facilities Management scrap yard located on New London Road.

      6. Library Books

        Library books and museum collection specimens will be disposed of as specified in A. 3. b. above. A relocation form is not required.

      7. Disposition of Monies Received

        All monies, except as noted below, shall be deposited to the General University Scrap and Surplus Account, administered by the Director of Supporting Services and Director of Procurement.

        1. Auxiliary departments (i.e., Housing, University Dining Services and the Bookstore) may have funds credited to their respective accounts if goods sold were originally purchased from their respective accounts.

        2. Funds from material or equipment purged from an inventory account shall have funds credited to the respective inventory account.

        3. Recovered items (not University property) sold by the Security Department in accordance with State statutes shall have funds deposited to their appropriate departmental account.

        4. Sale of surplus books by the Library shall be credited to the Library Book and Periodical Account.

        5. Sale of specimens from University museum collections shall be credited to the University museum specimen replacement account.

           

        6. Funds received from sale or trade-in of motor vehicles shall be credited to the appropriate departmental amortization accounts, or accounts being used to purchase new vehicles. Costs incurred in the sale, such as cleaning, parts replacement and advertising costs will be charged to the same account.

      8. Fiscal and Record Controls

        To insure adequate accountability for disposed equipment and monies secured from such disposal, as well as protection of employees handling such funds, the following controls shall be exercised:

        1. Items disposed of through trade-in shall be noted on the appropriate "purchase order" indicating description location, serial number, and University of Delaware tag number (if available) so that such equipment may be deducted from inventory records.

        2. Any goods disposed of to outside vendors and not supported by a purchase order shall require documentation. The documentation will be maintained for audit purposes by the Supporting Services Department.

        3. All cash (or check) sales to members of the University Community shall be supported by an acceptable sales slip indicating the employee's name, item sold, amount of the sale, date, employee's signature, signature of the employee handling the transaction, the serial number, U of D tag number, if available, and method of payment (cash/check). Staff members of Procurement Services and Supporting Services, their family member and/or proxies are not eligible to purchase surplus property.

          1. Checks shall be made payable to the University of Delaware.

          2. A copy of the sales slip along with checks and cash will be submitted to the Office of the Director of Supporting Services or Procurement Services, where the materials sale will be recorded, sales and receipt slips can be balanced, and a Cash Transmittal form can be prepared.

          3. An appropriate three-part sales slip shall be dispersed in the following manner: one copy to the customer, one copy to the department responsible for the sale and one copy forwarded to the Office of the Director of Supporting Services or Procurement Services and retained for a two-year period.

Submitted by: Procurement Services