800 Equipment Disposal

801: Lost, Damaged or Destroyed Equipment

Property Management Policy & Procedure Manual
Section 800: Equipment Disposal
Effective: 03/01/1979
Revised: 09/10/2007

Purpose

To ensure that university departments follow the necessary procedures when reporting lost, damaged or destroyed equipment.

Applicability

All equipment in the custody of OSU.

Policy

Departments must report all incidents resulting in equipment loss, damage or destruction to the OSU Risk Management Office (541-737-7252) for insurance purposes.  Departments must notify Property Management (737-7350) if the equipment is lost or damaged beyond repair and should be removed from inventory.  If the property is accountable to a grant or contract, the principal investigator must also follow instructions in the award document for reporting lost, missing, stolen or damaged property to the sponsoring organization.

Departments must report all equipment loss, damage or destruction resulting from suspected criminal activity to the Oregon State Police/Department of Public Safety (737-3010) or local law enforcement if the incident occurred away from the OSU main campus.

Procedure

Reporting Lost or Damaged Equipment

Responsible Party Action
Department
  1. Complete and submit a State Self-Insurance Claim Report form (pdf) to the OSU Risk Management Office.  (Record the police case number on the Preliminary Report (if applicable)).

Removing Lost, Damaged or Destroyed Equipment from Inventory

Responsible Party Action
Department
  1. Complete a Property Disposition Request Form along with copies of the State Self-Insurance Claim Report form.
  2. Record the police case number on the Property Disposition Request (if applicable).
  3. Submit to Property Management.
Property Management
  1. Remove equipment from inventory.

Cross Reference

See PRO 304: Insurance for filing a claim for lost, damaged or destroyed equipment.

See PRO 802: Stolen Equipment.

See PRO 903: Reporting & Inventories.

Additional Information

See the Department of Public Safety & Oregon State Police website for procedures on reporting crimes and incidents to law enforcement.

802: Stolen Equipment

Property Management Policy & Procedure Manual
Section 800: Equipment Disposal
Effective: 03/01/1979
Revised: 03/15/2013

 

This policy defines equipment as any tangible property with a life expectancy of more than one year, that is not consumed in the course of operation

Units must immediately notify the Department of Public Safety/Oregon State Police (541-737-7000) of all incidents resulting in stolen equipment or suspected theft of equipment.  Contact local law enforcement, if the incident occurred away from the OSU main campus. 

For insurance purposes, units must also notify the OSU Risk Management Office (541-737-7350 or risk@oregonstate.edu).

Units must complete a Property Disposition Request Form and contact Property Management (541-737-4084), if the equipment is a capital asset. 

If the stolen property is accountable to a grant or contract, the principal investigator must contact the Office of Post Award Administration (OPAA) and follow instructions in the award document for reporting stolen property to the sponsoring organization.

Additional Reference

PRO 304: Insurance for filing a claim for lost, damaged or destroyed equipment.

PRO 903: Reporting & Inventories.

803: Trade-In of Equipment

Property Management Policy & Procedure Manual
Section 800: Equipment Disposal
Effective: 07/01/1996
Revised: 09/10/2007

Purpose

To define a procedure for the trade-in of university capital equipment.

Policy

Departments are permitted to trade-in state owned property upon obtaining approval from Property Management.  

Trade-in values that are substantially less than the market value of the equipment are prohibited.

Procedure

Reporting Stolen Equipment

Responsible Party Action
Department
  1. Contact Property Management (541-737-7350) to obtain approval to trade-in state owned property.
Property Management
  1. Review asset records and determines if item is eligible for trade-in.
  2. If eligible, grant verbal authorization to department.
  3. If not eligible, department is not granted authorization for disposal of equipment via trade-in.
Department
  1. Complete a Property Disposition Request (PDR) form available at the Inventory Control website.
  2. Submit PDR with Purchasing Requisition (see PRO 209: Acquisition-Trade) and quote form the vendor.
Property Management
  1. Remove traded asset from inventory as new asset is being added to inventory.

Cross Reference

See PRO 209: Acquisition-Trade.

804: Surplus Property

Property Management Policy & Procedure Manual
Section 800: Equipment Disposal
Effective: 07/01/1971
Revised: 07/15/2014

 

All University owned property that is worn-out, obsolete or excess to the institution’s needs, or otherwise unsuitable for intended use must be disposed of through OSU Surplus Property.  Agriculture Experiment Stations, extension offices and other remote sites must arrange for surplus items to be disposed of by the Surplus Property department in Corvallis.  Surplus property is taken on a consignment basis.

All sales of University owned property to outside individuals or agencies are prohibited except for sales through the Surplus Property department.

University owned property that has been authorized for disposal by transfer or trade-in is exempt from disposal through OSU Surplus Property.

Disposal of University owned Property Procedure

Responsible Party Action
Department
  1. Complete a Surplus Property Pick-up Request that lists all items with their appropriate property tag number to be collected.  This request is available on the Surplus Property Website.
Surplus Property
  1. Review list and verify that all capital assets are eligible for collection and disposal.  (Surplus Property will not collect or dispose of federally or other owned property.)   
  2. Collect surplus property and relocate it to surplus warehouse. 
Department
  1. Compare items on list to the original pickup request and communicate any discrepancies to Surplus Property.
Surplus Property
  1. Make property available to OSU departments, state agencies or other authorized non-profit organizations.
  2. Property not purchased internally will be made available at public sales.
  3. Proceeds from the sale of surplus property (less consignment fee) are returned via a journal voucher in the month after the sale occurred.


Note: There are restrictions on the disposal of any asset included on the Historic Properties Register. These items may be transferred to another OSU department or another state agency. If a unit no longer wishes to keep an asset marked as Historic Property, it should be sent to Surplus Property. Surplus Property will contact the State Parks and Recreation Department (which now handles Historic Properties) and request that they claim the asset or release it for sale or other disposition. 

Any equipment on inventory will remain on inventory for record-keeping purposes until it is sold or otherwise disposed of.  Property Management within Business Affairs will then remove it from inventory.

Some equipment may be difficult or inconvenient to move to the surplus warehouse.  In these cases, Surplus Property will arrange the sale of the item at its current location and coordinate dismantling/moving the equipment when the item is sold. 

805 Transfer of Equipment

805-01: Transfer/Sale of Equipment Between OSU Departments

Property Management Policy & Procedure Manual
Section 805: Transfer of Equipment
Effective: 07/01/1971
Revised: 02/26/2008

Purpose

To facilitate the transfer of equipment.

Policy

OSU owned equipment (title code SI) may be transferred to other OSU departments with or without an accompanying financial transaction. The transferring department must notify Property Management of the proposed transfer and complete the necessary forms, either a Property Disposition Request (PDR) or a Fixed Asset Transfer form (FATF). 

Procedure

Transfer Between Departments without a Financial Transaction

Transfer Between Departments with a Financial Transaction

Sale of a Capital Asset by Proprietary Fund

Sale of an asset by Non-Proprietary Fund to a Proprietary Fund

Transfer Between Departments without a Financial Transaction

Responsible Party Action
Transferring Department
  1. Complete the "FROM" section on the Fixed Assets Transfer Form (FATF) and signs form as requestor.
  2. Send original FATF and equipment to Inventory Coordinator or departmental contact in receiving department. 
  3. Send a copy of the FATF to Property Management.
Receiving Department
  1. Verify that equipment has been received.   
  2. Complete the "TO" section of the FATF and signs as receiver.
  3. Submit original FATF to Property Management.
Property Management
  1. Update the asset record to reflect the new inventory ownership.

Transfer Between Departments with a Financial Transaction

Responsible Party Action
Transferring Department
  1. Complete the "FROM" section on the Fixed Assets Transfer Form (FATF) and signs form as requestor.
  2. Complete a Journal Voucher (JV) in Banner FIS to charge the “purchasing” department for the amount of sale using account code 20200 on both the debit and credit lines.  JV number should be noted on FATF.
  3. Send original FATF, copy of JV and equipment to Inventory Coordinator or departmental contact in receiving department.
  4. Send a copy of the FATF to Property Management.
Receiving Department
  1. Verify that equipment has been received.
  2. Complete the "TO" section of the FATF and signs as receiver.
  3. Submit original FATF to Property Management.
Property Management
  1. Update the asset record to reflect the new inventory ownership.

Sale of a Capital Asset by Proprietary Fund

Responsible Party Action
Transferring Department
  1. Propriety Fund provides Property Management with a PDR Form for the asset sold, including:
  • Index/Fund for department purchasing asset,
  • New location of asset,
  • Name of Responsible Person,
  • Amount of Sale.
Property Management 
  1. Record cash receipt from sale in "sale of asset" to undistributed income clearing fund:

    Debit: Index/Fund of purchasing department:

  • Index and acct 401XX if purchased by non-proprietary fund
  • Fund and acct A80xx if purchased by proprietary fund

Credit: 095880 B5801

  1. Uses Fixed Asset Adjustment - sale of fixed asset function in Banner FIS.  The fixed assets system removes the asset, accumulated depreciation, records gain or loss, and clears the clearing fund.
  2. Creates a new Asset record and capitalizes the "purchase" in the fixed asset module if required to be capitalized.

Sale of an Asset by Non-Proprietary Fund to a Proprietary Fund

Responsible Party Action
Transferring Department
  1. Non-Propriety Fund/Department provides Property Management with a PDR Form for the asset sold, including:
  • Index/Fund for department purchasing asset,
  • New location of asset,
  • Name of Responsible Person,
  • Amount of Sale.
Property Management 
  1. Records cash receipt from sale in "sale of asset" to undist income clearing fund:

    Debit: Fund and acct A80xx
    Credit: 095880 B5801

  1. Uses Fixed Asset Adjustment - sale of fixed asset function in Banner FIS.  The fixed assets system removes the asset, accumulated depreciation, records gain or loss, and clears the clearing fund.
  2. Creates a new Asset record and capitalizes the "purchase" in the fixed asset module if required.

Cross Reference

See PRO 900: Sponsored Research and Federal Property. 

805-02: Transfer of Equipment from OSU

Property Management Policy & Procedure Manual
Section 805: Transfer of Equipment
Effective: 07/01/1971
Revised: 02/25/2012

OSU owned equipment (title code SI) may be transferred to other state agencies with or without an accompanying financial transaction. 

State-owned equipment may be transferred to a non-state agency when:

  1. It is accountable to a current grant or contract that is transferred to another institution;
  2. When there will be a continuing collaborative research relationship between a departing faculty member and OSU that is expected to last at least two years.   Equipment acquired on federal grants and contracts may be transferred without restriction.  Equipment funded entirely or in part by state funds must be purchased by the new institution in an amount not less than the current depreciated value of the state-funded portion of the asset on OSU’s records. or
  3. The equipment/property has been identified as surplus property as defined in OAR 580-040-0300. Surplus Property will determine the most cost effective means for transfer/disposal. This may include transfer to a non-profit or public entity with or without an accompanying financial transaction.

Transfer to another State of Oregon Agency

Responsible Party

Action

Transferring Department

  1. Complete a Property Disposition Request (PDR) Form including information such as the receiving agency's name, address, telephone number, and the agency's contact person.
  2. Obtain department head signature and send PDR to Business Affairs, Fixed Assets.
  3. Ship equipment to receiving agency's contact person.
  4. Receive acknowledgement that equipment was received.

Business Affairs, Fixed Assets

  1. Remove asset record from inventory.
  2. Mail a copy of the PDR to the receiving agency.

Transfer of Current Grant or Contract

Responsible Party

Action

Principal Investigator (PI)

  1. Notify the Office of Post Award Administration (OPAA) that s/he has accepted employment at another institution and intends to transfer the current award to the new institution.

Office of Post Award Administration (OPAA)

  1. Upon PI's notification, coordinate transfer of grant or contract funds and equipment.
  2. If applicable, submit a copy of the sponsor's instructions to Business Affairs, Fixed Assets.

Transferring Department  

  1. Complete a Property Disposition Request (PDR) Form including information such as the receiver's name, address, telephone number, and the receiver's contact person.
  2. Obtain department head signature and send PDR to Business Affairs, Fixed Assets.
  3. Ship equipment to receiver's contact person.

Business Affairs, Fixed Assets

  1. Remove asset record from inventory.

Transfer of Equipment to Non-State Institution

Responsible Party

Action

Principal Investigator (PI)

  1. Notify Department that s/he has accepted employment at another institution and requests permission to transfer equipment to the new institution.  The request must include:
    1. a statement that collaboration will be continued while at the new institution and
    2. a complete list of equipment (both capital and minor) that will be needed to continue the activity.

Transferring Department

  1. Department Head approves or disapproves PI’s request.  If approved, prepares a letter to Business Affairs, Fixed Assets summarizing the continuing collaboration and requesting permission for the transfer.  Submits letter, list of all equipment to be transferred, and a Property Disposition Request (PDR) Form for the capital equipment to be transferred to Business Affairs, Fixed Assets for approval.
Business Affairs, Fixed Assets
  1. Review asset records for eligibility to transfer; Notify department of decision, and any requirements (i.e., required buy-out of state-funded assets).

Transferring Department

  1. If transfer approved, arranges shipment of equipment to new institution.

Business Affairs, Fixed Assets

  1. Remove asset record from inventory

Transfer of Equipment/Property to Non-Profit or Public Agency

Note: to be considered eligible to receive property, a non-profit organization must provide documentation confirming current non-profit status.

Responsible Party

Action

Transferring Department

  1. Create a list of items to be transferred and contact Surplus Property to review the list for approval.
  2. A PDR must be completed for all inventory/property with a current asset number and the appropriate responsible party signature and submitted to Business Affairs, Fixed Assets for review.
  3. Upon authorization, a transfer form will be provided by Surplus Property for completion by the transferring department.
  4. The transferring department may transfer the property to the receiving organization.
  5. The receiving organization will finish completing the transfer form and provide the non-profit documentation, prior to removing the property from OSU.
  6. The transferring department must return the completed form and non-profit documentation to Surplus Property within 3 days of the property being removed from OSU.

Surplus Property

  1. Surplus Property will review the items listed for transfer and approve the request if appropriate. Surplus will determine if this is a cost effective means for disposal of the property and does the receiving organization qualify.
  2. Surplus Property will retain the records of all transfers for the required record retention.
  3. Upon transfer, the property will be removed from inventory by Business Affairs, Fixed Assets. Surplus Property will notify Business Affairs, Fixed Assets of the completed transfer.
  4. Surplus Property will assure equitability and reduce the perception of favoritism.
  5. If a department appears to be directing supplies/equipment to any one organization on a regular basis, the management for Surplus Property may intervene and take corrective actions.

Additional Information

Oregon Revised Statute 351.210

Oregon Administrative Rule 580-040-0302

Cross Reference

See PRO 900: Sponsored Research and Federal Property.

806: Return of Equipment

Property Management Policy & Procedure Manual
Section 800: Equipment Disposal
Effective: 07/01/1971
Revised: 09/10/2007

Purpose

To facilitate the return of equipment to sponsoring agencies and owners.  

Policy

Agency or other owned equipment must be returned to the agency or owner; upon request, upon completion of project, or expiration of the loan agreement.  The returning department must notify Property Management of the return and complete a Property Disposition Request form (PDR).

Procedure

Return to Sponsoring Agency at Contract Close-out

Responsible Party Action
Office of Post Award Administration (OPAA)
  1. At contract or grant closeout, request sponsor's disposition instructions for sponsor owned equipment.
  2. Submit a copy of the sponsor's instructions to Property Management.
  3. If applicable, submit a copy of the sponsor's instructions to departmental Principal Investigator. 
Returning Department
  1. Complete a Property Disposition Request (PDR) Form including information such as the Sponsoring Agency's name, address, telephone number and contact person.
  2. Obtain department head signature and send PDR to Property Management.
  3. Ship equipment to Sponsoring Agency's contact person.
Property Management
  1. Remove asset record from inventory.

Return to Owner

Responsible Party Action
Returning Department 
  1. Complete a Property Disposition Request (PDR) Form including information such as the owner's name, address, telephone number and the owner's contact person.   
  2. Obtain department head signature and send PDR to Property Management.
  3. Ship equipment to owner or contact person.
Property Management
  1. Remove asset record from inventory.

Cross Reference

See PRO 701-03: Equipment Loaned to OSU.

See PRO 900: Sponsored Research and Federal Property.

807: Salvage or Cannibalization of Equipment for Parts

Property Management Policy & Procedure Manual
Section 800: Equipment Disposal
Effective: 07/01/1996
Revised: 09/10/2007

Purpose

To manage the disposal of salvaged or cannibalized capital equipment and to ensure compliance with federal and university requirements.

Background Information

Departments can use components from outdated or nonfunctional equipment to build or repair other equipment.

Policy

Departments may salvage or cannibalize obsolete or nonfunctional equipment upon obtaining approval from Property Management. 

Procedure

Responsible Party Action
Department 
  1. Prepare a list of potential equipment to be salvaged or cannibalized.
  2. Submit list to Property Management and requests approval to salvage or cannibalize equipment. 
Property Management
  1. Audit the asset record to see that the property is OSU-owned and not accountable to a current grant or contract, and that the Surplus Property Program could not get a better value by reselling the property for the department.  (Note:  This process is usually completed over the phone in just a few minutes.)
  2. Approve or disapprove request and notifies department of decision.
Department
  1. If approved, submit a Property Disposition Request (PDR) Form to Property Management. 
Property Management
  1. Remove equipment from inventory. 

808: Donations

Property Management Policy & Procedure Manual
Section 800: Equipment Disposal
Effective: 07/01/1996
Revised: 07/15/2014

 

The State of Oregon Department of Administrative Services policy on disposition of surplus property requires that equipment no longer needed by an agency must be made available to other agencies in the following order:

  1. OSU departments, then
  2. other state agencies and political subdivisions, then
  3. non-profit organizations with a current 501-C status.

Equipment not utilized by these agencies or organizations will be disposed of through public sales.

Units may donate excess, unused, or unneeded equipment to a qualified non-profit organization upon obtaining approval from Property Management.   OSU requires a copy of the 501-C status each time a non-profit organization receives a donation or purchases an item from the Surplus Office.  All donations MUST BE PROCESSED through Surplus Property, which is responsible for documenting the donations for audit purposes.

Departments will not show favoritism to any particular organization.  If a unit appears to be directing supplies/equipment to any one organization on a regular basis Property Management may intervene and take corrective actions.

Procedure

Responsible Party Action
Department 
  1. Create a list of items to be donated.
  2. Complete an online Surplus Pickup Request listing the items to be donated.
Surplus Property
  1. Post the availability of this equipment in the Warehouse for a reasonable period of time.  If requested by department, picks up property for disposition.
  2. If not needed by another department or state agency, Surplus will
  • collect the equipment when appropriate,
  • verify that the non-profit organization is properly authorized to receive donations before they are allowed to pick up the donation,
  • make sure the organization receives the donation, and
  • process the necessary paperwork.