30:10-1-11. Disposal of surplus or obsolete property
(a) It is the policy of the OSU/A&M
Board of Regents that previous to the sale or transfer of any item of property,
each university/college shall notify all of its departments of any items to be
declared surplus or obsolete and such departments shall be given preference for
the utilization of same. The president of each university/college shall ensure
that appropriate written administrative procedures are established to control
any relocation of properties within the institution. Such procedures shall
ensure that inventory records are properly maintained and any necessary
accounting adjustments are established useful for the prudent fiscal and
business management of the institution. It is not necessary for the Board of
Regents to be notified of internal transfers or relocations of properties
within a single institution within the provisions of this policy statement.
(b) A Surplus Equipment Report will be
maintained in the appropriate institutional proponent office and available for
audit review. The report will contain such information as follows:
(1) List of all
items which have been disposed of, sold, or transferred.
(2) Description
of condition of each item.
(3) Estimated
value of each item.
(4) Reasons why
such items were no longer useful to the institution and were disposed.
(5) Methods of
disposal used: i.e., public auction, sealed bids, or means as approved by the
Board in section (c) (13).
(6) Examples
of sale notices, a list of the publications and publication dates, and current
mailing lists used to attract attention of potential buyers.
(7) All
institutions under the governance of the OSU/A&M Board of Regents will be
supplied adequate notice of any items of property for disposal and the
consideration for same may be negotiated between institutional representatives
so authorized by the president (advance approval of the Board of Regents not
required). Provided, however, notice of such a sale or transfer between such
institutions must be presented to the Board of Regents at a regular meeting of
the Board. Information presented should include the provisions stated above in
(1), (2), (3), and (4) of this subsection, the amount of any consideration
realized and the name of the receiving institution. In such instances the
president of both institutions shall cause adequate internal procedures to be
established to maintain the integrity of institutional accounting and inventory
records pertaining to such items of property sold, transferred, or received.
(c) The president of each university/college
shall cause written procedures to be developed to include the following
additional provisions:
(1) Designation
of responsible institutional personnel to supervise any approved disposal of
property.
(2) Awarding of
receipts to buyers or receivers of disposed property (successful bidders or
buyers must have an official university/college receipt representing full
payment for any item of property before possession of same can be realized).
(3) Maintenance
of adequate records to properly account for cash receipts in accord with
applicable laws and regulations of
(4) Maintenance
of appropriate institutional records reflecting items of property disposed,
date of disposal, and the method of disposal.
(5) Compliance
with other requirements of applicable laws and regulations of
(6) In the event
properties are to be sold through public auction, the firm or individual to
conduct the auction shall be selected by sealed competitive bids.
(7) In the event
properties are to be sold through sealed bids, such bids shall be opened
publicly and the date, time, and place of such opening shall be publicly stated
at the time bids are solicited.
(8) Adequate
publicity shall be accomplished through newspaper advertising and use of
appropriate mailing lists when announcing public auctions or soliciting
competitive bids.
(9) Small items
or small quantity of items should be held in storage until sufficient
accumulation is realized to enable a public auction or solicitation of
competitive bids.
(10) Each
institutional administration is authorized and directed to implement such
written procedures as necessary to make this policy effective and to accomplish
any other necessary institutional objectives not contrary to the provisions of
this policy. Such written procedures shall be filed with the Secretary of the
Board of Regents.
(11) If any part
of this policy is considered not feasible or practical for any particular
situation, this shall be brought to the attention of the Board of Regents for
special consideration well in advance of any action to waive any requirement of
this policy.
(12) Worthless
items of property exempt from being listed on official inventory records under
the laws of
(13)
(d) A copy of the complete list of
information utilized in making any advertisement or notice of a sealed bid or
auction will be maintained in the appropriate institutional proponent office.
The list will include all sources where advertisements were published. Copies
of notices sent to other universities/colleges under the jurisdiction of the
Board of Regents pertaining to surplus or obsolete property will also be
maintained for audit review. A monthly report of reutilized items and the
public schools and state agencies benefiting from such will be provided to the
Secretary of the Board by each A&M institution.
(Amended
12—04—98)