U of A Policies and Procedures On-Line (UAPPOL)
Approval Date: December 9, 2009
Parent Policy: Equipment and Furnishings Asset Management Policy
Equipment Asset Disposal Procedure – Surplus
Office of Administrative Responsibility: Supply Management Services (SMS)
Approver: Associate Vice-President (Finance and Supply Management
Services)
Scope: Compliance with this university policy/procedure extends to
all Academic Staff and Colleagues and Support Staff as
outlined and defined in Recruitment Policy (Appendix A and
Appendix B)..
Contact for questions about this procedure:
SMS Dispatcher
780-492-4122
[email protected]
Overview
The University has various procedures for appropriately disposing of equipment and furnishings assets (assets)
that are no longer needed or are no longer being used by a unit. This procedure addresses the disposal by SMS of
surplus assets.
Disposal of surplus assets may require accounting entries at the unit and institutional levels and adjustment to the
unit’s equipment asset register.
If a surplus asset has a value, it will be disposed through external sale.
Disposal of surplus assets is coordinated by SMS (Surplus Disposal). This ensures that all University procedures and
legislative and other applicable requirements related to disposal of assets are fulfilled as follows:
- Safety legislation requires that items that have been used to store radioactive or biological substances are cleaned
before disposal.
- Confidential information and site-licensed software must be removed from computer hard drives and other data
storage devices before disposal.
In light of these requirements, and in order to ensure that the University obtains maximum value when disposing of
assets, external parties (including staff members) must purchase assets through SMS tenders, auctions and public
cash and carry sales.
Purpose
The purpose of this procedure is to ensure:
- surplus assets are identified for disposal and are sold or disposed in accordance with applicable legislation and
other requirements;
- the disposal of surplus assets is appropriately authorized; and
U of A Policies and Procedures On-Line (UAPPOL)
- the disposal is recorded in the equipment asset register (if applicable) and the appropriate accounting entries are
recorded (if applicable).
PROCEDURE
1. OBTAIN ASSET INFORMATION
Information regarding the asset must be provided with the request to dispose. This information can be obtained from
the unit’s equipment asset register if the acquisition value of the asset was $5,000 or greater, or if less than $5,000
but has been tracked by the unit.
If the asset has not been tracked in the unit’s equipment asset register, only a general description of the asset or
group of assets being disposed is required.
2. REQUEST DISPOSAL OF UNUSED ASSETS
a. The unit must complete the appropriate disposal form. Refer to the Asset Disposal Form – Surplus.
b. If disposing of computer hard drives and other data storage devices, the unit must contact SMS (Surplus Disposal).
SMS will decide, in consultation with the unit, the disposal method, and will inform the unit whether it will need to
remove any confidential information and site-licensed software. For example, if IT equipment is to be disposed of by
e-Waste, the unit is not required to clear the information or site-licensed software as the hard drive will be destroyed
during the disposal process.
c. The completed Asset Disposal Form – Surplus must be approved by the Dean, Chair or Director of the unit.
3. DISPOSE OF ASSETS
a. SMS disposes of an asset as follows:
i. coordinates removal of asset (removal costs apply)
ii. determines method of disposal (i.e. tender, auction, public cash and carry sale, scrap, e-Waste)
iii. forwards a surplus assets disposal (SAD) number to the unit to identify the asset for pickup (if applicable)
iv. disposes of asset
b. Generally, proceeds (if any) from the sale of surplus assets are negligible and are retained by the institution to
offset the cost of disposal.
If the unit expects that proceeds from the sale of assets (such as specialized equipment) or scrap will be significant,
the unit may contact SMS (Surplus Disposal) to request that sale proceeds be credited to the unit. If a unit receives
proceeds, an accounting entry will appear in the unit’s COA, account 502681 (Gain/Loss on Disposal of Equipment),
with the journal mask SAD. If the equipment was purchased from restricted funds, any sale proceeds will be allocated
as specified by donor/sponsor terms and conditions.
4. UPDATE EQUIPMENT ASSET REGISTER
Following the approval of the disposal of the asset, the unit must update the unit’s equipment asset register, if
applicable.
5. DOCUMENT RETENTION
U of A Policies and Procedures On-Line (UAPPOL)
The unit must retain a copy of the approved Asset Disposal Form – Surplus, along with any attachments, until it
completes its next annual asset confirmation.
DEFINITIONS
Any definitions listed in the following table apply to this document only with no implied or intended
institution-wide use. [▲Top]
Equipment and Furnishings
Assets (Assets)
Items acquired by the University such as scientific lab, information
technology (IT) and other equipment, vehicles and furnishings.
Equipment and furnishings assets do not include museum and collections
assets.
Surplus Assets
Equipment assets that are no longer of use to a unit, due to
obsolescence, damage beyond economical repair, destruction (such as
during the course of conducting research) or dismantling.
Equipment Asset Register
A record of details of equipment assets, used to facilitate physical control
and security and to provide information for disposal, replacement and
insurance purposes. Units are not required to track furnishings.
External Sale
The disposal of an asset outside of the University by a method and at a
price determined by SMS (Surplus Disposal).
Acquisition Value
The purchase cost of an equipment asset or the value assigned to an
equipment asset when acquired through in-kind contribution, or transfer
from an external or internal source.
FORMS
Should a link fail, please contact [email protected]. [▲Top]
Surplus Disposal Form
RELATED LINKS
Should a link fail, please contact [email protected]. [▲Top]
There are no related links for this Procedure.