CHARLES STURT UNIVERSITY
MINOR EQUIPMENT - PROCEDURES FOR DISPOSAL / RELOCATION / LENDING
Minor equipment is the property of the University and it is therefore essential that its disposal is in accordance with audit
requirements through uniform procedures University-wide.
Minor equipment are items costing less than $5,000 as set out in the University Chart of Accounts and purchased through
the following Banner account codes:
430 Minor Computer Software or 431 Minor Equipment
Proceeds from the sale of minor equipment must be credited to sales income, Banner account code 566 - Sale of Minor
Equipment. Minor equipment records are maintained by the owner organisation and is the responsibility of the Budget Centre
Manager. The disposal of assets (items which cost $5,000 or over) are subject to separate procedures.
Minor Equipment Disposal Authority (Form FD16 - copy attached)
This form is the main document and must be fully completed prior to the disposal of minor equipment. Authorisation as set out
in steps ‘A, B and C’ on Form FD16 is also required prior to any disposal. For audit purposes all relevant documentation in
relation to a disposal should be kept on a separate file per disposal (one or more items). This information should include:
receipt numbers; purchaser; equipment description and ID number; disposal date, value and tender number (if appropriate). The
minor equipment register should also record the disposal.
Approved Methods of Disposal
Other organisations within the University should be given the first opportunity to purchase minor equipment which is in
working order and subject to disposal. Minor equipment can either be sold or written off according to the following methods:
(1)
Sold by:
Best Offer
Tender
Trade-in
Fixed price
Auction
(2)
Written off:
Approved gift
Dumping
Used as parts
Stolen
Deletion - of little value but retained for continued use
Notes
(A)
A trade-in value can be a guide to sale value.
(B)
The appropriate method for disposal by sale will be how to obtain the best net price.
(C)
It is understood that the trade-in of ‘special’ items of equipment is the most appropriate method for disposal.
Steps to Initiate Minor Equipment Disposal
(A)
Identify the equipment and complete a ‘Minor Equipment Authority’ (Form FD16).
(B)
Once disposal is approved and if the equipment is to be sold:
1. By Best Offer (Form FD19)
Advertise on the web in "What's New and News" (University-wide only) and/or direct to relevant organisations.
2. By Tender (Form FD20)
If external media is considered appropriate as a second step or initial step.
(C)
Disposal of equipment according to authorisation.
General Disposal Information
The Assets Officer is available to provide disposal information. The disposal of equipment generally which does not allow for
University and/or community wide participation, is not acceptable. Budget Centre Managers should ensure that all disposals are
conducted at ‘arm’s length’ arrangements and according to procedures. It is recommended that the sale of equipment be by
“best offer” (University-wide) or by “tender” (community-wide) in preference to sale by “fixed price”. The fixed price
method can create problems in setting adequate values and seeing that all potential participants are treated equally.
If minor equipment is sold by trade-in the Owner Organisation is to prepare an 'Invoice Request Authority' and send it to the
Income Section of the Division of Financial Services to invoice the purchaser with the sale price. Minor equipment when sold
for cash should not be released to the purchaser until a receipt is produced.
Stolen or Missing Minor Equipment
Subject to a separate procedure (refer Form FD18).
Relocation and Loaning of Minor Equipment (Form FD17 - copy attached)
This form:
(a)
Records the relocation of minor equipment within the owner organisation - between buildings and campuses.
(b)
Records the transfer of equipment (not subject to sale) to other University organisations.
(c)
Records formal approval to loan equipment for official purposes to individuals and organisations “outside’ the
University and also records return of the equipment.
The information on this form (which is retained by the owner organisation) will provide records for audit requirements,
stocktake purposes and maintain the minor equipment register. Equipment transferred on a permanent basis to a new owner
organisation within the University should be given a new ID number which should also be recorded in the relocation section on
Form FD17.
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3 July 2001