Equipment Disposal Overview

Included on this page:

• Definition
• Types of Disposal (There are 50 ways to leave your laser....)
  • Appropriate Disposal Methods: Standard, Trade-in, Return to Vendor, Cannibilize, Internal Transfer, Transfers Leaving the University
  • Lost/Stolen Equipment
  • Inappropriate Disposal Methods
• Process Overview
• Forms Required
• Common Questions
• Regulations
• Contacts

Definition

Note: Assets with a blue bar code tag are Hospital property and maintained separately by Hospital Accounting at 206-598-7933.

Benefits to the Department

• timely disposal makes property available to the entire campus
• you may be able to reduce costs by using other department's idle equipment
• disposal of excess equipment reduces the time needed to locate unused equipment during required inventories
• you are properly prepared for any audit
• you may lose federal funding if your department is not in compliance

Legal Reasons

State: State law requires State/University owned property should not sit idle for lengthy periods of time. In a timely and appropriate manner, departments should dispose of items they no longer need.

Federal: It is a contractual commitment that federally owned equipment be in active use while in custody of a campus department, and that disposal action be taken in a timely manner if it is not.

Types of Disposal

Appropriate Disposal Methods:

• Standard Disposal — dispose of equipment, materials, and supplies, whether inventorial or not, through the established procedure facilitated by the Surplus Property Department. The Equipment Inventory Office (EIO) removes record of equipment from the department's inventory. (The terms disposal and surplus are often used interchangeably.)
• Trade-in — exchange equipment for credit towards a new purchase and remove it from your department's records.
• Return to Vendor — return tagged and inventoried equipment to the vendor and remove it from your department's records.
• Cannibalize — delete the record of the original equipment after you remove serviceable parts to repair or enhance the capabilities of other equipment.
• Internal Transfer — transfer equipment from your department to another within the University of Washington and remove it from your department's records. (You may give or sell it to the other department.)
• Transfers Leaving the University — transfer equipment ownership to another non-profit (according to IRS standard, tax code 501) institution within the United States and remove it from your department's records. You must get prior approval. (Only property acquired from federal grants and contracts may be transferred out of the University, regardless of who approves it.)

Lost/Stolen Equipment

• Lost — Remove equipment from your department's records if you are unable to locate it after applying a good faith effort. (This usually occurs during a physical inventory.) If the item is found, Equipment Inventory can re-activate the item in the database.
• Stolen — Remove property from your department's records if it was taken from the University without permission. You must file a police report.

Inappropriate Disposal Methods:

• Throwing equipment and materials in the trash.
• Putting equipment in the hall under a sign saying "Free".
• Taking home equipment, materials, supplies or unusable parts for personal use.
• Donating equipment without appropriate approval.
• Using equipment to ignite the Homecoming bonfire.
• Sinking equipment in Puget Sound.
• Etc.

Process Overview

1. The custodial department ("the department" that wants to get rid of the equipment) initiates request for disposals/surplus of all property (equipment and materials) by submitting a Property Activity Form, UoW 1024, to the Equipment Inventory Office (EIO) using the established University of Washington disposal methods for type of disposal they have chosen.
   Note: If the property is federally owned or funded by current awards, the department must request written permission from the sponsor prior to any surplus, movement, transfer or disposition and then submit the permission along with the 1024 form. (Call the Equipment Inventory Office if you would like help obtaining written permission from the sponsor.)

2. The department arranges for the physical disposition of the asset.

3. EIO verifies that the Property Activity Request form, UoW 1024, is complete and returns forms that are missing the necessary infomation and signatures to the department for completion. For example, they return forms with
   • illegible tag number/s
   • unauthorized signature/s
   • identical 'Contact Person' and 'Approved by' (The person completing the form should not be the same person approving the disposal.)
   • no reason for disposal indicated

4. EIO processes the completed form, removing the equipment from the department's inventory.

5. The department and EIO each maintain their copy of the 1024 form for six (6) years.

6. EIO prepares annual deletion reports and submits a copy for review to the departmental Head.

Forms Required:

Common Questions:

1. When will my items for surplus be picked-up?
   You schedule your transportation and pick-ups through the Surplus Property Office, 685-1573. (The Equipment Inventory Office is responsible only for processing the forms and removing the items from your inventory.)
   
   
2. Where do I send the Property Activity Forms, UoW 1024?
   White — Equipment Inventory, Box 351121
   Canary — Surplus Property, Box 355210
   Pink — maintain for departmental records
   
   
3. How long am I required to keep our department copy of the the Property Activity Forms, UoW 1024?
   Six years
   
   
4. Can I toss damaged or broken items in the trash?
   No, all items are to be forwarded to the Surplus Property Office for disposal.
   
   
5. I have a box of old computer "mice" and a keyboard. Do I have to list each one on the 1024 form?
   No. If you have a box of parts, each item does not have to be listed on the Property Activity Form, UoW 1024. For example, you may list the items as "a box of computer parts."
   
   
6. Can an employee buy equipment directly from the department?
   No, as described by WAC 236-48-198, surplus property available for disposal under the provisions of RCW 43.19.1919 shall not be sold to state elected officials, officers or employees, except at public sale. Public sales are held through Surplus Property.
   
   
7. A piece of our equipment has been stolen. What should the department do?
   See the procedure Equipment Lost/Stolen
   
   
8. We received a damaged piece of equipment. What do we need to do to return the item to the vendor?
   See the procedure Defective Equipment--Return to Vendor

Regulations

State Regulations:

RCW 43.19.1919 Surplus personal property Sale, exchange Exceptions and limitations.

Federal Regulations:

Disposition is accomplished in compliance with the Federal Acquisition Regulation, 45.6, and other specific contract provision.

For example: If the equipment is federally owned or funded on current awards you must

1. Get written approval from the sponsor before you can surplus, move, transfer, or dispose of it. This disposition documentation must be complete and contain
   • the agency's written authorization,
   • appropriate disposal action, which could:
     • relieve the University of further federal accountability by giving the title to the University at which point it falls under state policies and procedures
     • request the University to return the equipment to the agency
     • request that the University sell the equipment and return the proceeds to the agency less $500 or 10% of the proceeds, whichever is less, for selling and handling expenses
     • transfer the equipment usage to another award by the same sponsoring agency (e.g., NIH to NIH, NASA to NASA) and leave the title with the federal government
   • date of disposal
2. Send the written approval to the Equipment Inventory Office (EIO) who records the transaction (posts to record.)

Contacts

Equipment Inventory Office
eio@u.washington.edu
Modified: June 1, 2007