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Reviewed 12/98
TABLE OF CONTENTS
University Policy Statement
Exhibit I Sales Agreement
University Policy Statement
It is the intention of the University to dispose and transfer excess and surplus property in a manner that is efficient, cost-effective and safe for the University and to ensure the proper recording of capital equipment in order to meet the requirements of the Federal regulations and to protect the University assets.
The only means by which the University's personal property of any kind can be transferred between departments, sold to the general public, cannibalized, salvaged or scrapped is via the program's procedures. This includes all equipment or materials which were purchased or donated with gift, grant, or contract
funds or unrestricted general fund money, and title is vested in the University.
Unauthorized removal, disposal or expropriation of any CWRU owned property, regardless of estimated value, constitutes a breach of the University policy and could be construed as misappropriation.
Excess property paid for using government funds shall not be sold to a department that uses government funds to acquire the property.
I. General Procedures
The responsibility for declaring items surplus rests with the originating department. The following types of surplus equipment and related procedures are listed below.
- Property to be Sold
- The originating department should complete a "Disposal Requisition Form" and note as "surplus". This form is available by contacting the Purchasing Department at 368-2560 or the Equipment Accounting Office at 368-5937. Before any item can be sold and removed from the University inventory, the transaction must have the written approval of the appropriate University officials as noted on the form. Instructions are printed on the back of the form.
- The selling price and buyer should be indicated on the form if the originating department has identified one (Exception: University Vehicles; refer to Section V. Vehicles). If no buyer has been identified refer to Section III. Advertising.
- NOTE: THE UNIVERSITY PROPERTY NUMBER MUST BE RECORDED FOR EACH PIECE OF CAPITAL EQUIPMENT. Capital equipment is defined as all major equipment, furniture or fixtures with an acquisition cost of $5000.00 or more per unit and a useful life of two or more years. Each piece of capital equipment is tagged with a blue property tag with a unique six position numeric University Property Number. The tag reads "Property of CASE WESTERN RESERVE UNIVERSITY x x x x x x I.D. Number". This number should be recorded on the Disposal Requisition Form.
- The completed form should be forwarded to Equipment Accounting.
- Upon review by Equipment Accounting and the Safety Manager (Plant Services), Equipment Accounting will return a copy of the Disposal Requisition Form indicating if approval is granted to sell the items(s).
- A "Sales Agreement" form is included as Exhibit I and should be completed for any sale worth more than $500. A certified check or money order made payable to Case Western Reserve University is required.
- Items declared surplus will remain in the department until final disposition.
- Property for Trade-In
- The following guidelines have been established for the trade-in of property per the Equipment Accounting Policy and Procedures Manual, revised July 1997. Section IV.D.9 reads:
"It is the responsibility of the Project Director, or an Administrator in a nonacademic unit, to secure approval from the Equipment Accounting Office before any equipment can be used as a trade-in. This is done to ensure that the original funds used to purchase the equipment being used as a trade-in do not prohibit such disposition. Upon approval from the Equipment Accounting Office a purchase requisition should be forwarded to the Purchasing Department noting the trade-in.
- Upon completion of their review of the requisition, the Purchasing Department should forward to the Equipment Accounting Office the requisition for approval.
- The Equipment Accounting Office will make the appropriate adjustments to the inventory.."
- Equipment Accounting will forward the purchase requisition to the Safety Manager (Plant Services)
for approval. Upon approval, the Safety Manager will forward the purchase requisition to the Purchasing Department for processing.
- Items to be traded in will remain in the department until return arrangements are finalized.
- Property for Transfer to Another Institution
- When a faculty member leaves the University for another academic position, it is anticipated that equipment which has been purchased will usually continue to be needed in the ongoing research and/or educational activities of the specific department concerned, and will therefore remain at the University.
- When a faculty member requests that certain specialized items of equipment be made available for transfer to the new institution, exceptions will be considered by the Department Chairman and Dean. If in their judgment the equipment in question is of such a nature that it will not be put to good use following the departure of the faculty member, it may be recommended for transfer to the new institution.
- An "Equipment Transfer Requisition form" must be submitted to the Equipment Accounting Office before any transfer is authorized. Equipment Accounting will forward the form to the Safety Manager (Plant Services) for approval. Equipment Accounting will notify you of transfer approval. Contact the Equipment Accounting Office at 368-5937 for forms.
- Items approved for transfer will remain in the department until shipping arrangements are finalized.
- Scrap
- It is the practice of the University to dispose of items declared scrap in an environmentally safe and cost efficient manner. This responsibility rests with the University's Recycling Program.
- The originating department should complete a "Disposal Requisition Form" and note as "scrap". This form is available by contacting the Purchasing Department at 368-2560 or the Equipment Accounting Office at 368-5937. Before any item can be scrapped and removed from the University inventory, the transaction must have the written approval of the appropriate University officials as noted on the form. Instructions are printed on the back of the form.
- NOTE: THE UNIVERSITY PROPERTY NUMBER MUST BE RECORDED FOR EACH PIECE OF CAPITAL EQUIPMENT. Capital equipment is defined as all major equipment, furniture or fixtures with an acquisition cost of $5000.00 or more per unit and a useful life of two or more years. Each piece of capital equipment is tagged with a blue property tag with a unique six position numeric University Property Number. The tag reads "Property of CASE WESTERN RESERVE UNIVERSITY x x x x x x I.D. Number". This number should be recorded on the Disposal Requisition Form.
- The completed form should be forwarded to Equipment Accounting.
- Equipment Accounting and the Safety Manager (Plant Services) must approve the form.
- The Safety Manager (Plant Services) will notify the department and arrange for the proper disposal of the item(s).
- Items declared scraped will remain in the department until final disposition.
II. Establishing a Selling Price
- The department declaring an item surplus has the responsibility for establishing a fair selling price (Exception: University Vehicles, refer to Section V. Vehicles). The price should be based on a number of factors including the original purchase price, the condition of the item, and the age of the item. A primary objective of the program is to obtain the maximum proceeds from the sale of surplus property.
- If you need assistance in establishing a fair selling price you can contact the Purchasing Department at 368-2560.
III. Advertising
- If the originating department has identified no potential buyers, advertising is available on the Procurement and Distribution Services home page under "Surplus Property".
- The Disposal Requisition Form should be marked with an asking price and will be included as part of the advertising. Following approval to sell the item(s), Equipment Accounting will enter the item into the "Surplus Items" section.
- Equipment Accounting is required by Federal regulations to make all research equipment purchased with Federal funds which still has value available for use to other Federally sponsored research projects. The "Surplus Items" section will also be used for this purpose.
- Potential buyers will be directed through the "Surplus Items" section to contact the originating department directly. If a sale is finalized the department should notify Equipment Accounting.
- If no sale has occurred after 30 days, the advertisement will be removed from the "Surplus Items" section and a copy of the Disposal Request Form will be forwarded to the Safety Manager (Plant Services) for disposal as scrap.
IV. Furniture
- If the originating department does not have a buyer for usable furniture they should contact the Director of Procurement and Distribution Services at 368-2560.
- Furniture that is released by the originating department becomes the property of the Procurement and Distribution Services. Furniture that is of an acceptable quality will be retained in storage and made available to requesting departments at no cost, except for moving fees. The Procurement and Distribution Services reserves the right to sell to furniture brokers and individuals or dispose of furniture if no users are identified within a reasonable time period.
V. Vehicles
- When disposing of a University vehicle the originating department should refer to the Motor Vehicle Policy and Procedures, section I.I for the proper procedures.
- The originating department should notify the Vehicle Maintenance Supervisor in the Plant Services Department at 368-6538 who will assist in establishing a fair selling price and in the disposal process.
VI. Sales Proceeds
When a sale is completed, 100% of the proceeds will go back to the originating department's account. It is the originating department's responsibility to generate the appropriate journal for an internal sale or collect the money and properly credit the amount to their University account. Checks are to be made payable to Case Western Reserve University.
VII. Moving and Disposal Fees
- The Campus Movers can pick up and deliver items that are purchased internally by another department. The moving charge is assessed on an hourly basis and would be charged to the department purchasing the item(s).
- The Campus Movers can also be used to move items that need to be disposed. The originating department is responsible for the cost.
- Additional disposal charges are contingent on the volume and size of the released property and would be assessed by the Safety Manager (Plant Services).
EXHIBIT I
CASE WESTERN RESERVE UNIVERSITY
SALES AGREEMENT
Case Western Reserve University (CWRU) hereby sells and __________________________ (Buyer) hereby purchases and agrees to accept the following used equipment:
______________________________________________________________________________________
______________________________________________________________________________________
Buyer agrees to pay CWRU $___________ for said equipment by certified check or money order made payable to Case Western Reserve University. Buyer agrees to make payment in full upon receipt of the equipment.
THE EQUIPMENT PURCHASED BY BUYER IS USED EQUIPMENT AND SOLD 'AS IS', WITHOUT WARRANTIES OF ANY KIND, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
This agreement may not be amended except in writing duly executed by both parties. Each party acknowledges receipt of a copy of this agreement.
SELLER BUYER
Case Western Reserve University Name: _____________________
By: _______________________ Signature: __________________
Title: _____________________
Date: _________________________
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