UCLA

I. REFERENCES

1. Letter from President David S. Saxon: Allocation of Income from Sale of Surplus University Property, to Chancellors, 12/5/1975;

2. UC Business & Finance Bulletin BUS-29, Management and Control of University Equipment;

3. UC Business & Finance Bulletin BUS-38, Disposal of Excess Material and Transfer of Federally-Funded University-Owned Material.

II. GENERAL POLICY

It is the policy of the University that each campus is responsible for the administration and implementation of a property inventory control system which includes use, care, maintenance, safekeeping of the property under the control of campus departments or units, provisions for maximum use of all property, and handling of surplus property.

A. Acquisition of Surplus or Salvage University Property :

Departments may preferentially acquire surplus University property before it is put on public sale or otherwise disposed of outside the campus (as per Section II.C.2.). Requests for surplus University property are screened against available items on file with the Equipment Management Department.

B. Declaration of Property as Surplus and Establishing Fair Market Value:

1. Department heads have the authority to declare University property assigned to their custody as excess to departmental needs.

2. The campus Property Administrator is delegated the authority to declare all property as surplus to the University.

3. The campus Property Administrator is delegated the authority to establish fair market value for surplus property, or to advise department heads of the appropriate procedures or methods for establishing fair market value.

C. Disposal Methods and Authorities :

When it has been determined that the surplus property is of no immediate use within the University system, it may be disposed of in whichever one of the following methods is considered to bring the highest net return or benefit to the University:

1. Trade-in on new equipment: Property to be traded in on new equipment shall be listed on the Purchase Requisition forwarded to the campus Purchasing Department.
    
2. Public sale to the highest bidder: Property, except for vehicles, having an individual or lot value currently estimated at $10,000 or more, must be offered for sale to other University locations before it is placed on public sale.
    
3. Sale on a first come first served basis: This can be done only if a fair market value has been established by the Property Administrator (as per Section II.B.3.) and the availability and price of the item(s) are made known to the general public through appropriate means.
    
4. Private sale to an individual or surplus property dealer: This can be done when sale by the methods in C. 1., 2., or 3. above is either not feasible or the cost and effort involved by those methods would be disproportionate to the return expected, and the Property Administrator has determined that the sale price is reasonable (as per Section II.B.3.).
    
5. Donations of surplus property to an organization outside the University: This can be done if the market value of the surplus property is below the costs required for handling, record keeping, storage, and other costs associated with trade-in or sale, and either the specific prior review and approval of the Campus Counsel has been secured, or the Campus Counsel has given blanket approval for donation of specific categories of surplus property to educational institutions, other governmental bodies, or non-profit organizations. In all cases in which donation is proposed, department heads must submit a written request to the Property Administrator for review and approval prior to initiating a donation.

D. Disposal by Sale or Trade-In :

1. Sales of University property require the prior approval of the campus Property Administrator.

2. Sales or trade-in of property originally purchased with extramural funds must also comply with the specific terms of the relevant contract or grant. Selling departments are responsible for contacting the Equipment Management Department to ensure that the University has title to property originally purchased with extramural funds prior to initiating a sale. Often, prior approval for sale or trade-in of such property must be obtained, in writing, from the funding agency. Such approval is obtained through the Office of Sponsored Research or the Equipment Management Department.

3. The limitation of sales to certain employees and their near relatives is as follows:

1. No one employed in a Materiel Management Department, or a near relative of such employee, may buy surplus property being sold by Materiel Management either directly or through a public sale.

2. No one employed in a department originating surplus property or a near relative of such employee, may buy any surplus property originating in that department either directly or through a public sale.

3. The principal driver of a University-owned motor vehicle, or a near relative of such employee, may not buy such motor vehicle either directly or through a public sale.

4. Near relative is defined as husband, wife, mother, father, daughter, son, sister, brother, and step-relatives and in-laws in the same relationship.

5. Requests for any exceptions to this policy should be directed, in writing, to the Property Administrator for administrative approval prior to initiating a sale.

4. Allocation of the sale proceeds to departmental accounts when surplus property is traded-in or sold is as follows:

1. When University property is traded-in, the department releasing the property will be credited with the trade-in allowance.

2. Funds from the sale of University property selling for less than $1,000, shall be deposited directly to the departmental account of the custodial department releasing the property to Sub 03, 05, 07, or 08 and object code 9270. (Exception: Auxiliary and Service Enterprises, UCLA Medical Center, and University Extension will deposit the sale proceeds to their income account.)

3. Funds from the sale of University property selling for $1,000 or more, shall be recorded as income to the Excess and Surplus Property (ESP) Program income account. (Exception: Auxiliary and Service Enterprises, UCLA Medical Center, and University Extension will deposit the sale proceeds to their income account.) The proceeds, less the ESP Program administrative fee, will then be credited to the custodial department releasing the property.

4. Proceeds from sales, but not transfers or trade-ins, credited to a specific account by the ESP Program may be carried forward into the fiscal year subsequent to the fiscal year of the sale. Departments wanting to use this authority must notify Corporate Accounting, in writing, of any balance (not otherwise encumbered) they wish to carry forward.

III. ACQUISITION PROCEDURES

Department Purchasing Surplus Property from Another Department

IV. DISPOSAL PROCEDURES

A. Department Disposing of Surplus Property

Note: The UCLA Preferred Surplus Dealers List is available from the Equipment Management Department and online at (www.equipment.ucla.edu)