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Asset Disposal Contract document sample
Document Sample
Surplus
Asset/Redeployment
Disposal Policy
Category: Finance & Administration
Number: 4.07
Responsibility: Vice-President Finance & Administration
Approval: Board of Trustees
Approval Date: February 26, 2004
Revision Date: Issued May 1988, Revised October 1994, January 2004
Next Review: January 31, 2007
INTRODUCTION
Brock University is committed to effective and efficient asset management. When assets become surplus, the
University will redeploy/dispose of them in an equitable manner that maximizes the useful life of the asset without
incurring operating costs exceeding the benefits derived. The following policy is intended to facilitate and
encourage the timely reallocation of surplus assets, the University has adopted the following redeployment/disposal
policy.
PURPOSE
The purpose of this policy is:
• To clarify the assets to which this policy applies.
• To provide a method to identify, track, and redeploy/dispose of assets that have no further use to the
department currently using the asset or to the University.
• To promote redeployment and reuse of assets within the University on an equal opportunity basis.
• To minimize costs relating to storage and to provide sufficient lead time for inter-departmental transfers.
• To maximize the resale value of all assets that are of no further use to the University.
• To ensure that Brock operates in accordance with Canada Customs and Revenue Agency (CCRA)
requirements in respect to all applicable sales taxes, duties, and employee taxable benefits relating to asset
dispositions.
• To identify conditions under which assets will be considered scrap or available for donation.
• To provide a basis for insurance coverage and the reporting of capital expenditures to external governing
bodies.
SCOPE
This policy includes, but is not limited to, the following asset categories integral to the University's operation or
administration: all equipment (scientific, office, audio visual, fitness, maintenance, communication, administrative),
furniture, computers, software, vehicles, etc.
The disposal of all land, parking lots, and buildings and building improvements owned or leased by the University
must have Board of Trustees approval and are excluded from this policy.
Library materials (e.g. books, periodicals, etc.) are excluded from this policy and are administered by the University
Librarian or the Instructional Resource Center Manager.
All assets purchased through professional allowances, including computers and software, are the property of
Brock, even when located off campus, and are included in this policy, unless otherwise specified in the individual
employment contract or the funding agreement, as noted above. While the equipment is located off-campus, the
person using it assumes full responsibility for any loss or damage due to negligence.
POLICY
Surplus Asset Redeployment/Disposal Policy 1
1. The existing user department should complete the Asset Redeployment/Disposal Form when an asset is first
considered for redeployment/disposition and forward it to the Manager, Purchasing. Circumstances which may
give rise to the completion of this form include:
• An asset cannot be redeployed within the same unit.
• Decisions regarding space reallocation/reconfiguration/reuse that necessitate removal of
furniture/equipment.
• An asset uses outdated technology and requires replacement.
• An asset has been damaged beyond economical repair.
• It is not economically viable to dismantle the asset for parts.
• An asset has become an environmental, safety or health hazard.
Note: Before considering any asset for redeployment, the user department should ensure the asset is not used
periodically by any other unit whose operations may be detrimentally impacted by the removal of the asset.
Furthermore, the asset should remain in its current location until a final destination is determined.
2. An Asset Redeployment/Disposal Form must be completed for all assets that are stolen. This form together
with the Campus Security Incident Report must be forwarded to Executive Director of Finance/Controller.
3. Information Technology Services (ITS) should complete the “Recommended for” and “Condition” section of the
Asset Redeployment/Disposal Form for the redeployment/disposal of all computer equipment and peripherals.
4. The Manager, Purchasing will co-ordinate with Central Stores, Physical Plant or any other unit necessary for
the redeployment/disposition of the asset. In specific instances (as noted on the form), Purchasing may
delegate its operational responsibilities to other groups within the University while retaining it's functional
authority.
5. The Manager, Purchasing will publicize the availability of all assets designated for redeployment to all Brock
units. In keeping with the common goals and objectives of the University community, need will always be the
overriding factor when assessing surplus equipment for redeployment. If no requests are received to redeploy
the asset after a sufficient length of time (no less than 10 business days and no greater than 1 calendar month
but will be published on web site), the asset may be stored or sold or scrapped. Opportunity for budget
transfers equivalent to the fair market value of the assets transferred would be subject to 8 below. Where
disputes arise regarding inter-departmental transfers, the unit heads involved will resolve it or the VP Finance
& Administration or designate will arbitrate.
6. The user department or researcher has an obligation to recommend to Purchasing either the continued storage
or the redeployment/disposal of a specialized asset that carries a significant fair market value.
7. Where the proceeds of disposition are less than the fair market value and the assets are transferred to a
departing/retiring faculty member, Human Resources must be notified immediately. This will ensure that all
benefits of employment are reported on the employee's T4 as a taxable benefit for the year in which the assets
are transferred.
8. The sale of any asset which cannot be redeployed will be handled by one of the following methods:
• Trade-in against replacement equipment required.
• Public auctions/display on website for those articles which are marketable to others.
• Special negotiations with others for scientific, technical or research equipment.
9. To account for the sale of all fixed assets, the proceeds of disposal of all assets will be credited to a general
revenue account. However, an amount equal to the proceeds will be made available for subsequent budget
adjustments to user departments. The Finance Department will review all proceeds of disposal, make all
appropriate budget adjustments and accounting entries and will review for tax implications. Some budget
adjustments may require the approval of the Finance, Human Resources and Planning Committee.
10. An asset will be considered scrap or eligible for donation to charitable or government-funded organizations if
• The asset has been damaged beyond economical repair. (Scrap)
• It is not economically viable to dismantle the asset for parts. (Donation)
• The asset has become an environmental, safety or health hazard. (Scrap)
Surplus Asset Redeployment/Disposal Policy 2
and all attempts to redeploy or sell the asset have been unsuccessful and/or if the costs of storage exceed the
benefits. In these cases, the Manager, Purchasing will dispose of the asset in the most economical and
environmentally safe manner possible.
11. No asset may be sold to any employee of Brock without the written permission of the VP Finance &
Administration or designate. Employees are welcome to bid on any asset via the public website.
12. No asset may be sold privately or be disposed of by any employee of Brock.
Research
13. All assets purchased from research agreements are the property of Brock and are included in this policy,
unless otherwise specified by the funding agreement and/or policies of the funding agency.
14. Faculty members and librarians continuing their research programs after retirement may retain computers and
related peripherals if needed for their research program. Ownership of assets remains with Brock. Continued
maintenance costs of this equipment may be allowed by the Dean or Associate VP Research under some
circumstances.
15. The transfer or sale of research equipment up to a value of $100,000, to another institution/organization or to a
departing/retiring faculty member requires the approval of the Associate VP, Research, and the appropriate
Faculty Dean. All such transfers > $100,000 must be approved by the VP Academic & Provost. In cases as
noted in 7 above, Human Resources approval is required. In cases where a donation is provided or the initial
equipment was donated, the Executive Director, External Relations should be notified of the intention to
dispose of the asset.
16. This policy shall be reviewed at least every 3 years unless an earlier review is indicated. Finance will report to
the Senior Administrators Committee and the VP Finance & Administration on any recommended changes.
RELATED POLICIES
Budgeting
Fixed Asset
Purchasing
Library Materials
Bookstore Materials
Capital Expenditures – Tendering
Procurement Cards
In-Kind Contributions
Research
Surplus Asset Redeployment/Disposal Policy 3
Asset Redeployment/Disposal Form Date: _____________________
Department: ___________________ Location:_______________________
Contact:_______________________ Telephone/Ext:__________________
Item Description: (include quantity, manufacturer, model #, serial #, and brief description of each item)
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
Recommended for:
Redeployment Trade-in Sale Used for Parts
Scrap Donation Storage Unknown
Condition:
Excellent/good Fair Poor/Beyond repair Stolen Potentially hazardous*
Suggested trade-in/buyer/donor recipient:___________________________________________
* Define potential hazard:_________________________________________________________
NOTE: All buyers must be informed of Standard Conditions of Sale at time of offer.
Offer Amt
Contact Name Organization Address Phone # (excl. taxes)
Research or Specialized Technical Equipment:
Transferred to another institution Transfer to:____________________________________
Retiring faculty continues research
Research grant following departing faculty member to another institution
Comments:_____________________________________________________________________________
Unit Head/Dean Approval:_________________________________ Date:_____________________
Exec Director, Human Resources Approval :_________________ Date:_____________________
(For T4 impact)
Associate VP Research Approval:_________________________ Date:_____________________
(For research equipment)
VP Finance & Administration Approval: _____________________ Date:_____________________
(For disposals to employees)
ITS/CENTRAL STORES USE ONLY (to be completed within 5 business days)
Computer operating system: ______________________ Stripped of all confidential data and licensed software
Item(s) stored/redeployed at (dept/location): ____________________________________
Item(s) forwarded to Manager, Purchasing for external disposal process.
Item(s) potentially hazardous. Disposal instructions provided by Environment, Health & Safety (attach memo)
Item(s) declared scrap. Cost of disposal (Amount & Disposal Firm): ________________________
Assessment done by:__________________________________ _______________________ (attach assessment)
Date
Approved by: ________________________________________ _______________________
Director, ITS/Central Stores Date
Surplus Asset Redeployment/Disposal Policy 4
FINANCE DEPARTMENT ONLY
Taxes charged or Exemption Certificates/Numbers obtained.
GST Amount _______________
PST Amount _______________
Invoice created #______________
Total Invoice Amount (incl taxes) ______________
Fixed asset records adjusted.
Method of payment received: Request Budget Transfer:
Cash From account:________________
Credit Card To account:__________________
Cheque Amount:_____________________
Debit card
Other – specify ________________________________________________________
Credit Account # ____________________$ _________________
Requested by: ____________________________________ _____________________________
Purchasing Date
Approved by: _____________________________________ ________________________________
Finance Date
Surplus Asset Redeployment/Disposal Policy 5
Asset Redeployment/Disposal Form -
Standard Terms & Conditions - Asset Disposal Bids
1. ACCEPTANCE - If accepted, Brock University shall notify the purchaser of such acceptance within five (5)
days after the closing date.
2. TERMS - Cash or business cheque (no personal cheques accepted) within five (5) days after notification
for total amount including Provincial Sales Tax.
3. WITHDRAWAL - Brock University reserves the right to withdraw from the sale any property which has not
been delivered to the Purchaser, without incurring any liability except to refund to the Purchaser any
amount paid.
4. CONDITION - The property listed is offered "as is - where is". Brock University makes no warranty,
express or implied, as to the condition of the property or its fitness for any use or purpose.
5. REMOVAL - the Purchaser, upon acceptance of this offer by Brock University, shall at their expense, pack,
load and remove the property under the supervision of a representative of Brock University within ten (10)
days after notification referred to in paragraph 1 above. At the time of removal, Purchaser will provide proof
of payment for the goods.
6. FAILURE TO REMOVE - Should the purchaser fail to remove the property in accordance with paragraph 5,
Brock University, without prejudice to other remedies, may cancel the contract without notice to the
Purchaser and retain as liquidation damages any deposit or amount paid on account of the property. The
Purchaser shall lose all claim to and interest in the property and may be held responsible for all loss, cost
and expense incurred by Brock University due to the Purchaser's fault.
7. TAX - The Purchaser shall pay any applicable customs duties and taxes that may be liable as a result of
the sale of these assets.
8. DAMAGE TO PROPERTY - The Purchaser shall be responsible for any damage to property resulting from
the removal of the property sold.
9. UNDISCLOSED PRINCIPAL, BRIBES, ETC. - Brock University reserves the right to cancel the sale and
limits its liability to a refund of the purchase price if the property is purchased on behalf of an undisclosed
principal; the same shall apply if the sale is brought about by a bribe, gift, or gratuity, or other inducement,
to any official or employee of Brock University.
10. Brock University does not assume any liability for injury or loss incurred in the inspection, removal, use or
handling of the property listed on an Asset Disposal Bid Form.
11. Brock University reserves the right to accept or reject any bid.
Surplus Asset Redeployment/Disposal Policy 6
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