Disposal of surplus or obsolete property

30:10-01-11

(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., live public auction, online auctions, sealed bids, or other public sale methods (e.g., tag sale, garage sale, special sales through campus stores or other similar sales open to the general public) 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 Oklahoma and policies of the Board of Regents.

(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 Oklahoma and policies of the Board of Regents including the remission of sales taxes and sales tax reports, etc.

(6)       In the event properties are to be sold through live public auction, the firm or individual to conduct the auction shall be selected by sealed competitive bids. Use of online auction sites shall be determined between Asset Management office coordinating surplus sales and department with surplus, giving consideration to which online site best meets the needs of the said department and has the potential to obtain the best rate of return on its surplus sale. 

(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 Chief Executive Officer (CEO) 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 Oklahoma or policies of the Board of Regents may be discarded without Board approval under institutional written policies approved by the President and filed with the CEO of the Board of Regents.

(13)     Oklahoma State University and the A & M Institutions may make excess surplus property available to a public school district withoutcompensation, or to other Oklahoma governmental agencies in lieu of disposal by public auction or sealed bid. This would occur at the conclusion of the prescribed time that surplus equipment is available to University departments and other A & M institutions and will be accomplished according to state statute. Surplus property may also be reutilized to assist Oklahoma governmental agencies in acquisition of computer, educational, and office equipment. Educational agencies and programs will be given first preference. Records of such disposals shall be included in the Surplus Equipment Report maintained by the institution.

(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 CEO of the Board by each A&M institution.

Revised Date: 
February 24, 2012
January 20, 2012
Amended Date: 
December 4, 1998