GOVERNING DOCUMENTS: OPERATIONS
POLICY:
DISPOSAL OF SURPLUS FURNISHINGS AND EQUIPMENT
Effective Date:
March 29, 1978
Revised Date:
October 13, 1993
Review Date:
 
Approving Body:
Vice-President (Administration)
Authority:
 
Implementation:
 
Contact:
Comptroller's Office
Applies to:
All Staff


General

In order to facilitate more effective use of the University's resources and promote improved accountability for those resources, this policy on the disposal of surplus furnishings and equipment has been developed. As well as being responsible for furnishings and equipment purchased from operating funds, major capital funds, special capital funds, and miscellaneous capital funds, the University is responsible for similar purchases using research funds either as a result of a transfer of title under the provisions of a research grant or as a result of a responsibility assumed by University staff using the equipment during the term of the grant. Most granting agencies include in their regulations a statement similar to the following from the N.R.C. regulations.

"128. All equipment purchased under a N.R.C. grant automatically becomes the property of the grantee's university unless otherwise specified."

Surplus furnishings and equipment may be considered to fall into one of the following categories:

  1. Furnishings and equipment originally purchased from operating funds, major capital funds, special capital funds, miscellaneous capital funds, research grant funds which have now lapsed, and other unidentifiable sources.

  2. Furnishings and equipment purchased from research grants which are still continuing.

Overall Policies

Proposed disposals of furnishings and equipment may be initiated by the Grantee(s), if the Grantee(s) is still a member of the University, and also by Department Heads, Deans and Directors. Disposals required as a result of emergency or hazardous situations may be initiated by the Vice-President (Administration). Disposition of proceeds will vary depending upon the category which the furnishings or equipment being sold is classified; however, the following provisions must apply to all sales:

  1. The appropriate Dean, Director or Administrative Unit Head must approve all disposals. Where the revenue is likely to be greater than $5000.00, approval of the appropriate Vice-President must be obtained.

  2. Any contemplated disposal of University owned furnishings and equipment, regardless of value, must be processed through the Purchasing Department of the Comptroller's Office in order to:

    a) Assist in determining the probable sale value of the equipment with the Dean, Director or Administrative Unit Head.

    b) Ensure that the University community is made aware of the availability of the equipment through advertising in the University Bulletin in the event that a transfer might be possible.

    c) Determine the necessity of outside advertising and obtaining competitive bids for the proposed sale.

    d) Determine the applicability of Provincial sales tax.

    e) Determine the applicability of Federal duty and sales tax on exempt purchased equipment.

    f) Ensure that the University has received or will receive monetary value for any proposed sale.

    g) Record any sales in the University equipment records.

  3. The proceeds from the sale of surplus furnishings and equipment must be used to offset the cost of any replacement furnishings and equipment.

  4. Unit heads are encouraged to make surplus furnishings and equipment available to other University departments on a "no charge" basis.

External Sales

The proceeds from the external sale of furnishings and equipment in the first category will be credited to the consolidated revenues of the University. Faculties, Schools, and Other Administrative Units will receive credit from the sale in the form of an additional budget allocation to the appropriate operating account for the total amount of the proceeds. The proceeds from the external sale of furnishings and equipment in the second category shall be returned in their entirety to the particular research grant in question.

Transfer Between University Departments

Furnishings and equipment may be transferred between one University Department and another when the value of the transfer has been agreed upon between the departments in question. The financial arrangements surrounding the transfer can be handled through the allocation of funds in the following ways:

  1. Operating Budget Funds - For the transfer of furnishings and equipment in the first category an inter-departmental charge form will be processed to charge the buying department and to credit the consolidated revenues of the University. Faculties, Schools, and Other Administrative Units will receive credit for the sale in the form of an additional budget entry for the total amount of the proceeds. For the transfer of furnishings and equipment in the second category an inter-departmental charge form will be processed to charge the buying department and credit the particular research grant account.

  2. Miscellaneous Capital Funds - Miscellaneous capital funds can be used only for transfers of furnishings and equipment in the first category. Compensation for such transfers will be arranged by the transfer of miscellaneous capital allocations between accounts, i.e., one faculty could request a transfer of a portion of its miscellaneous capital allocation to another faculty to compensate for the transfer of an item of equipment.