Subject: Surplus Assets
Approved by: Vice-President Finance & Administration
Approval date: December 2017
Effective date: January 1, 2018
Administered by: Manager, Procurement Services
The purpose of this policy is to
- define surplus assets,
- ensure that the transfer within the University or the disposal of such assets is transparent,
- maximize economic value when such assets are transferred or disposed of,
- minimize environmental impact when such assets are disposed of, and
- provide a process for the transfer or disposal of such assets.
This Policy applies to all University Assets regardless of the source of funds used to acquire such assets.
“University Asset” means a tangible or non-tangible University property.
“Surplus Asset” means a University asset that a department has determined it cannot use.
“Scrap Asset means a surplus asset that has no fair market value (ie would normally be considered waste) as determined by the Manager, Procurement Services in consultation with Deans, Directors or Department Heads, the Facilities Requirements Manager and/or others as appropriate.
4.1 The Manager, Procurement Services must be notified before the disposal of University Assets.
4.2 The Manager, Procurement Services is responsible for the transfer and disposal of all University Assets except for the following:
- Land and Buildings– disposal shall be authorized by the Property and Facilities Committee of the Board of Regents and administered by the Director of Administrative Services.
- Library Holdings – disposal shall be authorized and administered by the University librarian.
- Permanent and Non-Permanent Art Collection Holdings – disposal shall be authorized and administered by the Director of the Owens Art Gallery.
- Scrap (Other than computers) – disposal shall be authorized and administered by the Director of Facilities Management.
- Scrap Computers – disposal shall be authorized and administered by the Director of Computer Services.
- Gifts in Kind – disposal shall be authorized as per the University’s Acquisitions Policy.
- Named Assets (assets bearing a donor’s name) – disposal shall be authorized after consulting the Vice President, University Advancement to ensure appropriate consultation and stewardship with the donor where applicable.
4.3Except for the assets listed in 4.2, Surplus Assets shall be transferred within the University, or disposed of by a method approved by the Manager, Procurement Services who will determine whether Surplus Assets should be offered to other University departments, sold, stored, or disposed of as scrap. The Manager, Procurement Services will consult with Deans, Directors or Department Heads, the Facilities Requirements Manager and others, as appropriate, in making these determinations.
4.4 Minor electronic equipment, including computers and related hardware, acquired by an employee using funds from a professional expense reimbursement account or research, travel and entertainment account or other University funds, may be purchased by the employee at fair market value upon retiring from the University, once a Dean, the University Librarian or the Director of the department has determined it to be surplus. When not purchased under this provision, such equipment will be allocated in accordance with Section 4.3.
4.5 The sale of Surplus Assets with an estimated value greater than $5,000 shall be approved by the Controller and with an estimated value greater than $25,000 by the Vice –President Finance and Administration.
5.0 Proceeds From Sale
5.1 Proceeds from the sale of assets will be credited to the general University revenue or to another account as authorized by the Controller, net of the disposal costs.
5.2 In determining fair market value, the interests of the University shall take precedence. The selling price shall be determined by quotation, auction or other method as approved by the Manager, Procurement Services.
6.0 Terms of Sale
6.1 Surplus Assets should be sold “as is” without other warranty by the University.
6.2 The University is not normally required to charge/collect HST on the sale of used goods.
7.0 Update of Accounting and Insurance Records
Information regarding Surplus Assets disposed of should be forwarded to the Assistant Controller for proper recording in the financial records of the University.
The Financial Services department shall ensure insurance coverage is discontinued on the disposed asset, where applicable, or an insurance claim made in cases of loss or damage.
8.0 Procedures for Disposal
The procedures for the disposal of Surplus Assets can be found on the Procurement Department website.(Add hyperlink) Contact the Procurement Department for more information.