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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


16.3.4. METHODS OF DISCARDING EQUIPMENT

Extraordinary care must be taken when discarding The University of Texas at Austin equipment that is no longer needed. If unnecessary equipment cannot be sold, traded in, or transferred, it must be sent to Surplus Property or considered for cannibalization or scrap metal sale. Removals of equipment are processed using the Inventory Removal Request (IRR) upload template. If the property manager or designee authorizes the removal of the equipment from the departmental inventory, the department is notified via email by Inventory Services that their inventory disposal upload has been approved and processed.

Worn, obsolete, unserviceable, and otherwise useless equipment must not be disposed of by any other procedure. If it is not practical or economically feasible to transfer unserviceable or obsolete property to Surplus Property, departments must not arbitrarily discard such items. The Property Manager or designee must be advised of the circumstances and the department's recommendation for disposal.

A. Surplus of Equipment

The unit administrator must have a Capitalized and Controlled Asset Removal and Transfer (CCART) document prepared for department-to -department transfer of unneeded equipment to Surplus Property for the following reasons:

  • obsolete
  • damaged
  • broken beyond reasonable repair
  • useless or inoperable

B.Cannibalization of Equipment

If the best interests of university can be served by removing parts from an item of equipment before a transfer to Surplus Property for scrap sales, transfer, or auction, the unit administrator may approve an item to be cannibalized with the understanding that the item is being dismantled for parts to be used to construct or repair other equipment. The actual cannibalization of equipment purchased on federal or private funds must not occur until approved by the property manager or designee has been obtained for items.  The residual pieces of equipment must be transferred to Surplus Property if the department has no further use for them.

The unit administrator must have a Capitalized and Controlled Asset Removal and Transfer (CCART) document prepared for transfer of unneeded equipment to Surplus Property.  

C.Salvaged or Scrapped Equipment:

If a department has determined excess equipment can be sold for scrap metal or to a salvage dealer, the item can be sold through Surplus Property or directly to the scrap metal or salvage dealer if the following requirements are met:

  • Equipment is university-owned, not federally- or privately-owned.
  • Unit administrator has approved the disposal.
  • Direct sales from a department is an arms-length transaction.
  • For equipment funded from non-auxiliary or non-service accounts, Provost approval is granted.

D.Abandoned Equipment:

If it is in the best interests of the university to abandon a piece of equipment, the following requirements must be met:

  • The recovery of the item must be cost prohibitive to the university.
  • The item may be unrecoverable (e.g., Monitor used for testing on ocean floor).
  • The item must not pose a hazard to the environment or directly to people.
    • If the item(s) contains hazardous materials, the item cannot be abandoned. Contact Environmental Health & Safety for guidance.
    • If the item(s) are innately dangerous (e.g., guns, refrigerators).

If these requirements are met, the department may request to remove the item(s) from inventory using the Inventory Removal Request upload template. If items are abandoned due to inability to recover the items and they were insured by the university, report the loss to Risk Management for insurance

 

 

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