askus icon

Handbook of Business Procedures

Date published: 
Last revised: 
Issued by: 

February 17, 2005
July 7, 2014
Inventory Services

 

Part 16. Inventory Control and Property Management - Table of Contents


16.3.2. SALE OF EQUIPMENT

A. Departmental Sale of Equipment with Estimated Value of Less Than $25,000

Approval of the property manager or designee must be obtained prior to the sale of any university equipment (including Surplus Property) to an outside agency or individual. The Inventory Removal Request (IRR) upload template must be submitted to Inventory Services. Approval must be granted prior to removal of equipment, solicitation for sale, or receipt of offers of sale. The following information for each item offered for sale must be provided on the template

  • departmental unit code – first four digits only of seven digit unit code
  • inventory number
  • element number
  • disposal reason (use IRR upload template dropdown values only)
  • responsible person EID– contact name of person most knowledgeable of equipment (do not list inventory contact)

Upon approval, the unit administrator conducts negotiations for the sale. Approval is only granted if the property manager or designee agrees that the price is reasonable. If the equipment is donated or sold, the university inventory plate must be removed.  Additionally, documentation of proceeds received must be forwarded to Inventory Services at oa.inventory.utexas.edu once received.  External entities payments received include a copy of the check, *DEFINE VC1, and ACH wires, etc.  Proceeds may or may not be retained by the department depending on items funding source and planned use of funds. 

B. Departmental Sale of Equipment with Estimated Value of $25,000 or More

In addition to the requirements detailed in section C of this policy, sale of equipment with an estimated value of $25,000 or more requires that the property manager evaluate the request in conjunction with the associate vice president and director of procurement and payment services.. The decision is based on the condition of the equipment, the market value of similar or like equipment, and the potential to reap a higher dollar return than placing the property in a scheduled quarterly live auction through Surplus.

In accordance with Board of Regents rule 80201, Section 4, sales expected to exceed $50,000 require chief financial officer approval and sales expected to exceed $100,000 require advance approval by the Chancellor and approval by the Board of Regents through the Consent Agenda. 

The Inventory Services finance manager must be contacted to coordinate any of the sales and approvals noted above.

C. International Sales - Exports Controls

For international sales of equipment, the equipment disposal must first be approved by the Office of Sponsored Projects export controls officer. This approval is coordinated on the department’s behalf by the Inventory Service’s finance manager.  Contact Inventory Services at oa.inventory@austin.utexas.edu to notify of any planned international sales or donations prior to execution or submission of an IRR upload template.  Sales requiring export controls prior approval include:

  • sales to individuals, companies, or universities in foreign counties 
  • sales of tangible or intangible property that has been developed under a project subject to a technology control plan
  • sales of any devices developed as a prototype at the university by a researcher that is not being sold to a research sponsor under a sponsored research agreement

Upon approval from the property manager or designee, the unit administrator conducts negotiations for any equipment for which the out-of-state agency is charged (equipment not paid for with a 26-account). Approval is only granted if the property manager or designee agrees that the price is reasonable.

D.  Prohibition of Sale/Transfer of Data Processing Equipment to Employees

The sale or transfer of data processing equipment to employees of the university is prohibited as per Board of Regents Rules Regulation Part II Chapter VII Sec.7.3 Disposal of Surplus or Salvage Data Processing Equipment. University of Texas System Board of Regents' Rules and Regulations, Series 80201. Surplus or salvage data processing equipment is defined by Texas Government Code Chapter 2175, Surplus and Salvage Property Guidelines. For disposal exceptions for Institutions of Higher Education, refer to Texas State Government Code Chapter 2175.304.

E.  Sales to Retired Peace Officers

The local sale of guns or rifles to honorably retired peace officers is allowed per Texas Government Code, Title 6, Subtitle A, Chapter 614,  Subchapter A., Sec. 614.051 – 614.054 An honorably retired peace officer may purchase a firearm from the university  if:

  • the individual was a peace officer commissioned by the university;
  • the individual was honorably retired from the individual's commission by the university;
  • the firearm had been previously issued to the individual by the university;  and
  • the firearm is not a prohibited weapon under Section 46.05, Penal Code.

The university will establish the amount, which may not exceed fair market value, for which the firearm may be purchased.

An honorably retired peace officer must purchase a firearm under Section 614.051 before the second anniversary of the date of the person's retirement or under Section 614.052 before the second anniversary of the date of the officer's death.

Individuals who may also purchase the firearm under this state law) are, in order of precedence:
(1)  the surviving spouse of the deceased peace officer;
(2)  a child of the deceased peace officer;  and
(3)  a parent of the deceased peace officer
If the university  cannot immediately replace the firearm, it may delay the sale of the firearm until the university can replace the firearm.

F.  Proceeds from Sale of Equipment

Monies received from the sale of property originally purchased by an auxiliary or service department are credited to that department. Proceeds from the sale of equipment purchased with state funds are normally returned to the State Treasury. Proceeds from the sale of equipment acquired from government excess property sources, federal or private sources, and university funds are deposited into an account administered by the executive vice president and provost or returned to sponsors as required by the grant or contract.

 

 

Part 16. Inventory Control and Property Management - Table of Contents