M2 – Disposal of Surplus Furnishings and Equipment

Originator: Materials Management
Approver: CMC
Effective: May 6, 1997
Replaces: New

Introduction

The policy and the procedures outlined below apply to the disposal of all surplus furnishings and equipment owned by the College. In order to ensure both the integrity of the process and to protect the interests of the College, the process for asset disposal will be coordinated through the joint effort of Materials Management, the Controller’s Office and the department disposing of an item. The Manager, Materials Management, shall be responsible for the administration of this policy.

Purpose

• to gain the maximum benefit from College assets by providing a system that encourages departments to identify furnishings, equipment and other items which are obsolete or surplus to their requirements;
• to provide a means for the sale or transfer of these assets, and the proper documentation of the transactions in a manner which is acceptable to the College; and,
• to encourage departments not to store furnishings and equipment that are old, obsolete or unused.

Procedures

Procedures for Declaration

1. When a department determines that an item is surplus, obsolete or scrap, the item shall be identified by means of an asset disposal form which will be signed by the Chair, Manager, Dean or Director, as appropriate. This form is available from the Asset Inventory Clerk. The completed form shall be sent to the Manager, Materials Management.
2. Disposal of donated equipment must be done in accordance with any terms and conditions of the donation.

Procedures for Disposal

1. Disposal of surplus furnishing and equipment shall be handled through the Materials Management department.
2. Periodically, a list of surplus assets shall be circulated to all College departments. Departments have two weeks to respond, in writing, if they are interested in any available assets. These assets could be made available for viewing.
3. Once listed as surplus assets, furnishings and equipment may be transferred from one College department to another where needs can be met. When such a transfer occurs, the Asset Inventory Clerk shall be notified in order to update the College’s asset inventory.
4. Disposals shall be handled by one of the following methods:
   • Trade
   • Tender
   • Sale
   • Auction
   • Donation
   • Other methods reviewed and approved by the Materials Management department such as scrap, recycle for parts, etc.
5. If items are to be sold, they should be sold in the following manner:
   1. The item(s) may be advertised publicly and/or notices may be sent to other educational institutions and other appropriate organizations.
   2. Prospective bidders may view the item(s) for sale on a specified date and may make a sealed, written bid on an item. All bids shall include the bidder’s name, address, and telephone number, as well as a deposit of 10% of the bid. All bids shall be placed in a sealed box until the closing date of the bidding period. All bids are confidential.
   3. The bids shall be reviewed by the assets disposal committee. The Manager, Materials Management, shall notify the successful bidders for each item and make the necessary arrangements to collect the balance of payment owing before the item is picked up. If the successful bidder withdraws their bid, the deposit will be forfeited. The Manager, Materials Management, shall also notify the unsuccessful bidders for each item and return their deposits.
   4. If the procedures described above are not practical for any reason, items may be sold at a fixed price in a fair and equitable manner, traded, auctioned or donated to a charitable organization at the discretion of the assets disposal committee. Before items can be donated to a charitable organization, College Management Committee must approve the donation based on a recommendation from the department and the review by the assets disposal committee.
6. The sale of surplus items shall be receipted by the Controller’s Office.
7. All sales shall be “as is, where is.” There will be no warranties and the purchaser shall be responsible for removal at their own expense within a determined period of time.
8. All sales shall be final, with payment due at the time of sale, by certified cheque, money order, credit card (VISA/Mastercard) or INTERAC.
9. In all cases where bids for surplus assets are tendered, the highest or any other bid need not be accepted, at the discretion of the assets disposal committee.
10. Successful purchasers shall not be permitted to remove any surplus asset from the College without having a paid receipt issued to them by the Controller’s Office.
11. An employee who would normally be directly involved in the disposal process for a particular asset and who intends to tender a bid on that asset shall declare such intent at the outset and shall not be involved in the process.

Disposition of Proceeds

The disposition of proceeds from the sale of surplus furnishings and equipment shall be in accordance with the following:

• All direct costs related to the disposal of surplus furnishings and equipment originally purchased from College operating or capital funds shall be recovered through the sale. All net proceeds shall go to capital funds of the College.

Any exception to the above policy and procedures shall be referred to the assets disposal committee for recommendation to the Executive Director of Administrative Services.