POLICY TEMPLATE
Disposal of University Assets
–Capital and Non Capital
Category:
Leave this blank; a category will be assigned
Approval:
The University Secretary, on the advice of the Policy Advisory
Committee, will identify the appropriate approval body(ies), e.g. Board
of Governors, Senate, PVPs, PPG.
Responsibility:
Associate Vice President Finance
Date:
Date initially approved: July 1, 1988
Date of last revision: Draft November 10, 2016
Definitions:
Capital Asset – Non consumable, tangible items with a life expectancy of at least 2 years
required for conducting normal University operations and research. The purchase value or
established donated value must be least $3000.00 (including net HST) for equipment,
vehicles, books (purchased with research funds), $10,000 for furnishings (single or
multiple furnishings purchased for one installation) or $25,000 for computer software
(initial license fees).
Non Capital Assets - The following items are considered to be Non Capital Assets:
 Furniture, equipment, computers, books (purchased with research funds), vehicles
valued less than $3000 (including net HST)
 An operating lease where ownership of the equipment will never transfer to Trent
University e.g. vehicle leases;
 Software licenses / maintenance agreements subject to renewal usually on an
annual basis;
 Items purchased for resale;
 Items whose useful life is less than 2 years;
Obsolete Assets– Equipment in working order but no longer adequate to meet current
operating requirements. e.g. Computer equipment unable to support current software.
Research Assets – Equipment, software, books or furnishings purchased with research
funds. The University is responsible under the terms of granting agency agreements, for
custody, reallocation, transfer and disposal of Research Assets. Unless otherwise
specified by the granting agency, all Research Equipment is considered to be University
property. Research Assets remain in the control of the Researcher until the research is
completed, after which assets becomes available to the University for other Research
related projects.
Salvaged Materials - Re-claimed building materials from construction, renovation or
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demolition projects.
Scrap – Damaged or unusable equipment valued for its basic material content e.g. old lab
equipment valued for the metal content.
Surplus Assets - Equipment in good working order but no longer required by the
University.
Purpose/Reason for Policy
The University is committed to ensuring its assets are safeguarded, tracked and disposed
of effectively and efficiently. This policy has been established to:
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Provide oversight to the transfer, sale or disposal of assets;
Encourage reuse and recycling of assets;
Ensure that the environmental impact of disposal is considered;
Ensure that disposals are documented and proceeds are appropriately distributed;
Ensure disposals comply with the requirements of external funding agencies and
donors;
Achieve maximum benefit from University assets which are considered to be of no
further use to the University.
Scope of this Policy
This Policy applies to Capital and Non Capital Assets belonging to the University
regardless of funding source i.e. furniture and equipment supporting teaching, research,
student services, and administration, books (library acquisitions excluded), and any scrap
or salvaged materials.
This Policy does not apply to the disposition of lands or buildings.
This Policy does not apply to the University’s art work which is covered under the Art
Collection Policy.
Please refer to related Procedure – Disposal of University Equipment dated November
2016
Policy Statement
Except as specifically delegated by the Board of Governors or the President, the disposal
of surplus or obsolete assets regardless of the funding source, shall be the responsibility
of the Purchasing Manager.
To ensure maximum benefit is derived from University Assets the Purchasing Manager, in
consultation with the account holder, will estimate the disposal value of the equipment and
decide on an appropriate method of disposal.
Assets to be sold will be advertised in a publicly accessible manner appropriate to the
nature and value of the item e.g. department bulletin board, local newspaper, Gov Deals,
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Kijiji etc.
Purchasing will maintain equipment inventory records in the University’s Fixed Asset
database - documenting additions, transfers and removals of capital and non-capital
assets.
All sales, disposals, transfers, trade ins of University assets must be pre-approved by the
Purchasing Manager.
Transfer to other Public Sector or nonprofit organizations. On occasion the cost of
selling or disposing of equipment exceeds the benefit derived by the University. Greater
benefit may be achieved by making surplus equipment available to other publicly funded
or nonprofit organizations. In consultation with the Account Holder the Purchasing
Manager will solicit interest from other organizations in an attempt to repurpose/ reuse
surplus or obsolete equipment rather than sending it to land fill or selling for minimal
return.
Research Assets - Disposal, trade in**, transfer, or reassignment of all Research Assets
must also be pre-approved by the VP Research and Innovation. In doing so the Research
Office is responsible for insuring that the disposal/transfer does not violate the terms of
use contained in the original grant or funding contract.
** The return, trade in or resolution of a warranty issue that results in a credit held on
account with a supplier and used against future purchases must be reported to Research
Accounting to ensure that the credit is applied to the appropriate research account.
Approvals
The disposal of Capital and Non Capital equipment is subject to the following approvals
prior to disposal :
Estimated before tax disposal value
Up to $99,999
$100,000 +
Approver
Manager of Purchasing
Vice President of Finance and
Administration
Vice President of Research and
Innovation
All research assets regardless of value
Proceeds:
Net proceeds from the disposal of University assets under the direct control of a University
department will be credited to that department’s budget. In the case of Research
Equipment the Vice President or Research and Innovation will determine the disposition of
funds. In all other instances the net proceeds will be retained in the University’s central
funds at the discretion of the Associate Vice President Finance.
Responsibilities:
Account Holder – Identifies equipment for disposal or transfer. Completes the
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appropriate Authorization for Disposal or Transfer of asset form and forwards to
Purchasing or VP Research and Innovation in the case of research assets.
(Refer to http://trentu.ca/purchasing/forms.php)
Provides resources to cover costs associated with disposal i.e. Advertising, certification,
decommissioning, appraisal, packaging and removal, sales commissions etc.
Purchasing Manager – in consultation with the Account Holder reviews possibilities for
reallocating equipment, determines the method of disposal, seeks independent appraisal if
appropriate, places advertising as required, oversees the sale or disposal process,
receives offers to purchase and deposits proceeds of the sale.
Vice President Research and Innovation or Director of Research – approves the
disposal, trade in, or transfer of all Research Assets. Determines the appropriate
disposition of any proceeds from the sale of Research Assets.
AVP Facilities Management – in consultation with the Purchasing Manager determines
the best method to dispose of Scrap or Salvaged materials related to construction,
renovation or demolition of University facilities.
AVP Finance – Approves the disposal of University assets with a disposal value in excess
of $99,999 and determines the appropriate disposition of funds gained on the sale of
assets not under direct control of any department or researcher.
Contact Officer
Manager of Purchasing
Date for Next Review
Year/Month/Day
Related Policies, Procedures and
Guidelines
Procedure – Disposal of University
Assets
Policies Superseded by This Policy
Disposal of Surplus Equipment July 1,
1988
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APPENDIX ‘B’
PROCEDURE
Disposal of Surplus Equipment
Contact Officer
Purpose
Manager of Purchasing
The purpose of this procedure is to ensure that disposal of
University assets is conducted in a fair and orderly manner while
assuring funding source restrictions are met, environmental
impacts are considered and the best interest of the University and
its account holders is served. Purchasing maintains a record of
equipment acquisitions and disposals in the University’s equipment
inventory data base.
Disposal / Transfer of University Asset Forms are available at
http://trentu.ca/purchasing/forms.php)
PROCEDURE
Disposal options in order of priority:
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2)
3)
4)
5)
6)
Reuse within the University;
Sale or trade in against purchase of replacement;
Sale for scrap value;
Transfer to other Public Sector or nonprofit organization;
Recycle Centre;
Landfill.
Assets valued under $250.00**
With pre approval of the Purchasing Manager the account holder
may dispose of assets valued under $250.00. Account holders
must first complete the following steps:
1) Explore options to repurpose the asset within the University.
(Swap shop and interdepartmental communications)
2) Complete the Authorization for Disposal of University Assets
Form and forward to the Purchasing Manager for approval.
3) Ensure that memory on digital devices is wiped clean.
4) Remove Windows operating system and Office suite from
computers.
5) Notify Purchasing of the disposal when complete.
6) Ensure that proper taxes are collected and remitted and the
proceeds of sale are deposited and properly accounted for.
The sale of University assets is subject to HST.
Notes:
 The Purchasing Manager may require independent
proof of asset valuation.
 The disposal must be an arm’s length transaction.
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 If the effort and cost of disposal exceeds the
expected proceeds of sale the Purchasing Officer
may contact other Public Sector entities or local
nonprofits to arrange a no charge transfer of
equipment.
Research Assets
Regardless of value, disposal or transfer of assets purchased with
research funds must pre-approved by the Vice President of
Research and Innovation.
Faculty Computers
The Computer Renewal Program provides faculty with new
computers on a 4 year cycle and the option to purchase their
computer upon retirement. Please refer to
https://www.trentu.ca/it/services/computer-renewal-program
Procedure
The steps and/or actions that must be undertaken to implement a
particular policy.
Responsible
Officer or
Section
Step 1
Identifies equipment to be disposed of and determines if asset is
surplus, obsolete or scrap.
Attempts to repurpose the asset within the University using Swap
Account
Shop and interdepartmental communications.
Holder/
Arranges to have memory on digital devices wiped clear and
Researcher
Windows Operating System and Office Suite Software removed
from computers.
Completes Authorization for Disposal of Asset Form and forwards
same to Purchasing. Separate forms are available for disposal of
research assets.
http://trentu.ca/purchasing/forms.php
Step 2 Research Assets Only
Reviews the request for asset disposal/transfer. Identifies granting
Vice
agency restrictions which apply to disposal of the asset.
President
Seeks alternate uses of the surplus item within the University’s
Research
research and teaching community.
or Delegate
Forwards the approved Authorization for Disposal/Transfer of
Research Assets Form to Purchasing.
Purchasing
Manager
Purchasing
Manager
Step 3
Identifies the fixed asset record in the equipment inventory data
base.
Determines the age, original purchase value and residual value of
the asset.
Step 4
In consultation with the account holder completes one or more of
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the following actions:
1) Advertises articles for sale in the appropriate medium
i.e. local classifieds, Ontario University list servers,
Trent bulletin boards, etc**.;
2) Engages a professional disposal agency working on
commission e.g. Gov’t Deals**;
3) Oversees trade in of the item against purchase of new;
4) Arranges for scrap dealer appraisal and purchase**;
5) Arranges transfer to other Public Sector or nonprofit;
6) Arranges disposal through Trent waste process.
** Costs associated with disposal must be covered by the account
holder i.e. advertising, appraisal, packaging etc.
Purchasing
Manager
Purchasing
Manager
Step 6
Receives offers for purchase of equipment, receives deposits and
issues receipt to successful bidder, deposits proceeds less the cost
of disposal to the appropriate account.
(See Policy Disposal of University Equipment).
Removes asset from the Fixed Asset Inventory records.
Step 7 Transfer
The cost of disposal of certain assets may exceed any benefit
received by the University. Furniture and electronic equipment in
particular may be of greater value if made available to local Public
Sector entities or non-profits.
The Purchasing Manager will maintain a list of institutions and
agencies that would be interested in receiving notices of surplus
assets. Lists of items that could not be repurposed or sold
effectively will be distributed to local agencies. Agencies will
contact the department directly to arrange pick up of items. The list
will be updated on a regular basis. Items that aren’t claimed will be
removed from the list and the owner department will have to
arrange disposal through the University’s waste processes
Special Assets:
1) Vehicles – The University is not in the business of used car
resale with the related licensing, insurance and liability
issues. When possible used vehicles will be offered as a
trade in against the purchase of the new vehicle.
2) Computers and other digital devices - The Windows
operating system and Office Suite loaded on Trent
computers is licensed to the University and must be
removed before disposal. Memory on all digital devices
must be wiped clear before disposal.
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Date Approved
Month Day Year
Approval Authority
PVPs, VP, Dean, Director, etc.
Date of Commencement
Year Month Day
Amendment Dates
List the dates the policy has been amended (Year Month Day )
Date for Next Review
Year Month Day
Related Policies,
Procedures and Guidelines
Policy -Disposal of University Equipment
Form -Asset Disposal Form 06 2016
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