askus icon

Handbook of Business Procedures

Date published: 
Last revised: 
Issued by: 

February 17, 2005
February 17, 2012
Inventory Services

 

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


16.3.2. SALE OF EQUIPMENT

Monies received from the sale of property originally purchased by an auxiliary or service department will be credited to that department. Proceeds from the sale of equipment purchased with state funds will normally be returned to the State Treasury. Proceeds from the sale of equipment acquired from Government excess property sources will be deposited into an account administered by the executive vice president and provost.

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, as defined by Texas Government Code Chapter 2175, Surplus and Salvage Property Guidelines. For disposal exceptions for Institutions of Higher Education, see the Texas State Government Code Chapter 2175.304.

Some sources restrict the sale or transfer of equipment; therefore, it is essential to ensure that the University is not precluded from such disposal.

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

This policy applies to sales of equipment by University departments, including Surplus Property. Approval of the property manager or designee must be obtained prior to the sale of any university equipment to an outside agency or individual. A written explanation for the sale must accompany an Inventory Removal Request Form. The explanation and form must be submitted for special handling of property to Inventory Services. Approval must be granted prior to any removal of equipment, solicitation for sale, or receipt of offers of sale. The following information for each item offered for sale must be provided:

  • Complete description of the property to be disposed
  • Condition of the equipment
  • Cost of the equipment
  • Current location
  • Date acquired
  • Depreciated value
  • Funding source of the original acquisition
  • Inventory numbers
  • Reason for sale
  • If sale is outside of surplus, include a reason why outside of surplus option was elected
  • Source of the equipment (new, used, surplus, etc.)
  • Whether the equipment is carried on federal or University inventories

Upon approval, the department head will conduct negotiations for the sale. Approval will only be granted if the property manager or designee agrees that the price is reasonable.

If the equipment is sold, the university inventory plate shall be removed. The letter of notification and the inventory number plate, if there is one, for each item sold shall be sent to Inventory Services along with the following information:

  • Inventory number
  • Date sold
  • Description of each item
  • Cash Proceeds Received documentation to support amount received for each item and deposited with the Office of Accounting

University of Texas at Austin Inventory Forms
Inventory Services
Surplus Property

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

In addition to the requirements detailed in section C.1 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 Purchasing Director to determine if there are potential advantages to advertising the equipment for sealed bids or advertising the equipment in online auctions. The decision will be 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.

Purchasing Office

 

 

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