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  5. Disposing of Capital Assets

Disposing of Capital Assets

Directive Statement

This directive establishes the proper methods of disposing of capital assets.  Departments will need to request the disposal of the property from Asset Management for all capital assets or attractive property not sent to UF Surplus.  In accordance with Section 273.05, Florida Statutes, the University has appointed a “Property Management Committee” to review all dispositions information for UF owned capital assets.   It is the committee’s role to recommend the final disposition of capital assets.

Reason for Directive

To adhere to Section 273.05, Florida Statutes, and other regulations.

Who must comply?

All UF departments.  Property Custodians are responsible for approving all Disposal Requests.

Procedures

No property, including capital assets, may be given to an individual or thrown away without prior approval from Asset Management.

Review the Capital and Attractive Livestock Directive for information on dispositions of livestock.

Below are different methods and procedures for disposing of capital assets.

Request a Surplus Pick-up or Recycle

In support of UF Strategic Plan and UF’s sustainability initiative, when attractive property is no longer needed, all property should be sent to UF Surplus to be reused, refurbished, or recycled.

  1. The Departmental Contact will follow the Sending Items to UF Surplus Directive
  2. Departments will need to record the disposal of federal property in myAssets
  3. Special allowances are made for property located outside of Alachua County. Equipment located in an area not serviced by UF Surplus may work with their local recycler to dispose of equipment

Utilize the UF Property Swap Listserv

Note: Computers cannot be listed on Listserv. Sign up for the UF Property Swap Listserv.

To create a posting:

  1. Log-In
  2. Select Email Lists Tab
  3. Select Appropriate Listserv Group (UF-PROPERTY-SWAP-L)
  4. Select Post New Message under Options

Post and provide additional information:

  1. Add Photos by browsing for file & attaching any photos
  2. Fill out body of email with information about your item, including number of items, size/dimensions, color, condition, etc.
  3. Hit Send
  4. You will get a confirmation from Asset Management that your posting has been approved & released

Remember to post that “Items have been claimed!”

Complete a Disposal Request

Departments will need to request approval from Asset Management using a disposal request for all of the disposal methods below.

Departments should complete the disposal request, including signatures if required, then upload the request in myAssets.  If the department is unable to upload the request, the report of survey can be e-mailed to property@admin.ufl.edu.

Abandonment

To request disposition due to abandonment, the department will use the Disposal Request.  Please note, abandoned property is not property that is just difficult to retrieve.

Cannibalization

Departments need to document on the Disposal Request:

  1. What parts were used to repair other property
  2. What property was repaired
  3. What was done with the parts that were remaining

By submitting this disposal request, the department is certifying that the asset will be dismantled and no longer used.

Casualty Loss

When property is damaged due to a sudden, unexpected or unusual occurrence the department will use the Disposal Request.

Please note:  If the item is covered by the Equipment Maintenance Program, please contact Specialty Underwriters so that your department’s premium can be adjusted.

Donating to Another University

When a faculty member transfers from UF to another University, the property purchased on grants or contracts that are transferring with the faculty member will transfer to the new University.  Additionally, property purchased on federal grants that have closed, but are continuing to support the PI’s research, can transfer with the faculty member if the property is not needed at UF.

The department will use the Disposal Request and include:

  1. Signatures from the College Dean, Division of Sponsored Programs, and the Property Custodian
  2. Verification of acceptance of the equipment by signature or email from the receiving institution

Lost

When the location of the property is no longer known, and all reasonable actions have been taken by the department to locate the property, the University Police Department must be notified immediately to obtain an incident report.  The UPD incident number will be required to complete the Disposal Request. The Privacy Office will also be notified, and they may require a Privacy Incident Report if the property is a UF electronic device.

Return to Funding Agency

When Contracts and Grants funded property is required to be returned to the funding agency at the completion of the contract or grant, the department must complete the Disposal Request.

Return to Vendor

Usually used for warranty issues, when property is returned to the original vendor the department must complete a Disposal Request.

Sold

Property can be:

  1. Sold by public auction by UF Surplus
  2. Sold with authorization from the Board of Governors
  3. Sold to another non-profit higher education institution

When a faculty member leaves UF for another not-for-profit higher education institution, non-federal equipment owned by UF can be sold directly to the new institution at Fair Market Value (FMV), if the Dean determines the equipment is not needed by the department and the faculty member needs the equipment to continue his research.

To sell capital assets to another non-profit higher education institution:

  1. The department chair and the faculty member usually handle the negotiations with the new institution to arrive at a fair price
  2. Asset Management (AM) can help determine a fair market value (FMV) if needed
  3. Once there is an agreement on price, the department will complete a Report of Survey in myAssets to designate the capital asset as “Sold”
  4. The department should complete an invoice for the asset, and contact Asset Management for assistance if needed
  5. All payments for capital asset sales must be sent directly to Asset Management at PO Box 115300, 116 Elmore Hall, Gainesville, FL 32611 for processing

Departments retain funds from all direct equipment sales when the sold equipment was purchased with Foundation and research funds.

Stolen

When the department discovers that property was unlawfully taken by another party the University Police Department (or local authority), must be notified immediately to file a police report.  The police report will be required to complete the Disposal Request. The Privacy Office will also be notified, and they may require a Privacy Incident Report if the property is a UF electronic device.

In the case of loss of non-state-owned property that is covered by insurance, the department must notify the Environmental Health and Safety Insurance Coordinator at (352) 392-1591.

Trade-in

Attractive property can be traded-in by the department for the purchase of goods or services using the Disposal Request.

Transfer to State / Federal Agency

When the property is transferred to a State or Federal agency, departments should use the Disposal Request.

Definitions

Capital Assets

Capital assets, sometimes referred to as fixed assets, are resources of the university and are included on the University’s financial statements.  A capital asset is long-term property that UF owns and uses in fulfilling its mission and is not expected to be consumed within one year of acquisition.  The Asset Management module of myUfl contains the official property record of Capital Assets and is the data source for financial reporting for capitalized property.  The Asset Management Department is responsible for managing and maintaining these property records.

Casualty Loss

When property is damaged due to a sudden, unexpected, or unusual occurrence such as a vehicle accident, hurricane, flood, fire, shipwreck, or earthquake.  This would not include gradual damage from water seepage or erosion.

Departmental Contact

The Departmental Contact handles the day-to-day operations related to property.

Property Custodian

The University President has final responsibility for all capital assets that are in possession of the University.  Based on specific departments, this responsibility is delegated to the Vice Presidents, Deans, Directors or Chairpersons, or a Designee.  The person to whom this responsibility is assigned becomes the “Custodian” of the assets.  All Custodians must be a full-time EXEMPT employee with direct knowledge of the operations of the department.

Trade-in

When the department exchanges property to reduce the purchase price of new property.  The University of Florida does not permit the trade-in of UF owned assets for expendable materials, operating leased equipment, or equipment being purchased by Direct Support Organizations where ownership of the new asset does not reside with the University of Florida.

Last Reviewed

05/01/2020: reviewed content

Resources

Environmental Health and Safety Insurance Coordinator

Equipment Maintenance Program

University Police Department

Toolkits

UF HR Toolkits – Asset Management

Contacts

Asset Management: (352) 392-2556

Environmental Health & Safety: (352) 392-1591

University Police Department: (352) 392-1111

UF Surplus: (352) 392-0370

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