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Equipment Disposals – Overview

Included on this page:

• Definition
• Departmental Benefits of Timely Disposal
• Legal Reasons for Timely Disposal
• Disposal Methods
• Appropriate
• Inappropriate
• Lost/Stolen Equipment
• Procedure
• Forms Required
• Frequently Asked Questions
• Regulations
• Contacts

Definition

Equipment Disposal - Equipment Disposal refers to both physically removing properties from a department and to the removing of the item from a department's active inventory, relieving the department of accountability for reporting and tracking.  The terms disposal and surplus are often used interchangeably.  

Departmental Benefits of Timely Disposal

Departments benefit from timely and proper disposal of excess property because:

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

Legal Reasons for Timely Disposal

• State:  State law requires State/University 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.  Equipment that is federally owned or funded on current awards, requires the following:

Disposal Methods

Appropriate

Follow the links below to see detailed instructions for any of the following appropriate disposal methods:

• Standard Disposal
• Trade-In
• Return to Vendor
• Cannibalize
• Internal Transfer
• External Transfer (Leaving the University)

Inappropriate

• 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.

Lost/Stolen Equipment

• Lost Equipment - 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 later found, Equipment Inventory can re-activate the item in the database.
• Stolen Equipment - Remove equipment from your department's records if it was taken from the University without permission.  It is also important that you file a police report.

Procedure

Department:

• Wants to get rid of equipment.
• Initiates request for disposal/surplus of all property (equipment and materials) by submitting a Property Activity Request - Form 1024 to Equipment Inventory using the proper disposal method.
• 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 Property Activity Request - Form 1024.  Call Equipment Inventory if you would like help obtaining written permission from the sponsor.
• Arranges for the physical disposition of the asset.
• Maintains copy of Property Activity Request - Form 1024 for 6 years.

Equipment Inventory:

• Verifies that the Property Activity Request - Form 1024 is complete.  If any information is missing, returns the form to the department for completion.  Common information missing includes:
• Illegible tag number(s)
• Unauthorized signature(s)
• Identical "Contact Person" and "Approved by" - these cannot be the same
• No reason for disposal indicated
• Processes the completed form and removes the equipment from the department's inventory.
• Maintains copy of Property Activity Request - Form 1024 for 6 years.
• Prepares annual deletion reports and sends to departmental Head for review.

Forms Required

• Property Activity Request - Form 1024

Frequently Asked Questions

For frequently asked questions related to this topic, please visit our FAQ page.

Regulations

State Administrative and Accounting Manual (SAAM), Chapter 30: Capital Assets

University of Washington Administrative Policy Statements:

• Section 50 – Services 
• Section 60 – Equipment Inventory 

Federal Regulations:

• OMB Circular A-110
• OMB Circular A-21
• Federal Acquisitions Register 

Contacts

State/University Titled Equipment:    206-543-4663 or eio@u.washington.edu
Federally Titled Equipment:              206-543-4640 or 206-616-4046