University of Washington
Administrative Policy Statements		 Rev/Dec 1999 61.7*

Table of Contents

1. Overview of Surplus and Disposal

2. Other Equipment Transactions

3. Additional Information
      

Surplus and Disposal of Equipment

(Approved by the Executive Vice President by authority of Executive Order No. 5)


1.   Overview of Surplus and Disposal

The University must dispose of all property (equipment, material, and supplies) through its established disposal procedures. Federal or agency-owned property cannot be disposed, cannibalized, transferred, or removed without prior written approval from the funding agency or private entity. As described by WAC 236–48–198, University-titled equipment may not be sold to employees, principal investigators, or to the public unless all disposal requirements have been met and the sale is processed by the Surplus Property Office, a division of Property and Transport Services. Property should not sit idle for lengthy periods of time. Where appropriate, items no longer required should be disposed of in a timely and appropriate manner.

a.   Completing the Property Activity Request Form

The Property Activity Request form is available from University Stores and is used to initiate disposal procedures of any kind. For University-owned property, the form must be signed by the department chair or a designated representative. For federally owned equipment or equipment federally funded on a current grant or contract, the signature of the responsible principal investigator, written agency approval (contact the Equipment Inventory Office's Federal Program Coordinator for assistance), and Equipment Inventory Office approval is required. Surplus Property Office staff will not pick up, receive, or move materials, supplies, or equipment without an authorized Property Activity Request.

Send the Property Activity Request original (white) sheet to the Equipment Inventory Office, Box 354615; forward the first copy (canary) to the Surplus Property Office, Box 355210; and keep the second copy (pink) on file within the originating department. The Surplus Property Office will schedule movement of the property and the Equipment Inventory Office will update the Web OASIS system.

b.   Resale of Equipment

If the equipment retains substantial value, the disposing department may state a "minimum amount acceptable" for resale. Another department, state institution, or bidder must pay at least the "acceptable amount" to acquire the property. Proceeds from the sale of surplused equipment in excess of the handling costs are credited to the budget from which the property was purchased by means of a JV which is initiated by the Surplus Property Office.

c.   Federally Owned or Funded on Current Awards

Send the entire Property Activity Request to the Equipment Inventory Office when the equipment is:

  • Federally or agency-owned, with written agency disposal approval.

  • University-owned and federally funded (written agency disposal approval is required if the grant or contract is still current).

The Equipment Inventory Office must have written disposal instructions from the appropriate federal agency prior to any disposal action. The disposal instructions will relieve the University of further accountability, request that equipment be returned to the agency, or request that it be sold and that the proceeds be returned to the original agency less $500 or ten percent of the proceeds, whichever is less, for selling and handling expenses. The Equipment Inventory Office will review, process, and forward these forms to the Surplus Property Office (or assist in identifying the nearest federal Property Redistribution Office) that will handle selling and proper distribution of the proceeds.

d.  Buildings

When buildings are demolished or alterations made, there are usually some materials which are salvageable. Normally, under the terms of the contract, salvageable material becomes the property of the contractor. The contractor is responsible for removing this material physically from the University campus and may then dispose of it as he or she sees fit. This removal requirement ensures that University employees will not remove such materials from the campus and thus appear to be taking University materials for their own personal use.

2.   Other Equipment Transactions

If equipment has been stolen, lost, traded in, or is to be cannibalized, the Property Activity Request form should be completed, signed by the department head or authorized departmental designee, and sent to the Equipment Inventory Office for deletion. Federal property cannot be deleted from Web OASIS without prior approval from the funding agency (see Administrative Policy Statement 61.6, Section 2).

a.   Lost or Stolen Equipment

Any theft should immediately be reported to the University Police or, if off campus, the nearest police station. In addition, Section C of the Property Activity Request must be completed. Documentation includes proper departmental authorization, police case number (for stolen equipment), date, and circumstance of loss or theft. Where pertinent, federal agencies are also to be informed with a statement concerning when the item was last seen. Lost equipment which is later found can be easily reactivated in the online system by the Equipment Inventory Office.

b.   Dismantled/Cannibalized Equipment

Complete Section C of the Property Activity Request to report dismantled or cannibalized equipment. Relief of accountability for federally owned property must be received prior to cannibalization. Unused parts must be disposed of through the Surplus Property Office.

c.   Trade-Ins

To delete equipment from the University's inventory that is being traded in on new equipment, complete a Property Activity Request form and include the equipment tag number(s) on the purchase requisition. Send all copies of the Property Activity Request to the Purchasing Department as an attachment to the new purchase requisition. If required, the Purchasing Department will confirm clear title of the property with the Equipment Inventory Office.

If negotiations are successful, the Purchasing Department will forward all copies of the Property Activity Request to the Equipment Inventory Office for removal of these assets from the University's inventory system (Web OASIS).

The Purchasing Department will request an invoice from the vendor as follows: "The University of Washington requires a 'net amount invoice,' whether one line (including trade-in credit amount notation) or one invoice detailing the purchase price and trade-in credit as separate items. Do not send a separate invoice and credit memo."

d.   Defective Equipment (Returned to Vendor)

To delete tagged and inventoried equipment that is being returned to the vendor due to defect, complete a Property Activity Request form. If the equipment is being replaced, retag the new item with a new tag and indicate both old and new tag numbers, as well as the new serial number of each asset, on the Property Activity Request. The replacement of a defective item may also be communicated to the Equipment Inventory Office by attaching a message, including the new tag number for the replacement equipment, in the Notes Maintenance section (category EIO) of Web OASIS.

3.   Additional Information

For further information contact the Equipment Inventory Office:

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 *Formerly numbered Operations Manual D 61.0.