McMASTER UNIVERSITY

Complete Policy Title: DISPOSAL OF UNIVERSITY SURPLUS ASSETS
Policy Number (if applicable): P-160
Approved by: COG
Date of Most Recent Approval: October, 1996
Revision Date(s):
Position Responsible for Developing
and Maintaining the Policy:		 Director, Purchasing Resources
Contact Department:PURCHASING RESOURCES
DISCLAIMER: If there is a discrepancy between this electronic policy and the written copy held by the Policy owner, the written copy prevails.
POLICY:

  1. POLICY

    McMaster University is committed to ensure that all of the University's physical assets are used in a most effective and efficient manner. When such resources become surplus, the University must endeavour to dispose of these assets using a method which is fair and which maximises any possible remaining value of the asset. Additionally, it is expected that the holders of assets will be held accountable for the use or disposal of these assets.

  2. PURPOSE

    The purpose of this policy is:

    1. to encourage identification of University assets that are no longer required by the present user or department;
    2. to ensure taxes (PST/GST) are collected as applicable at the time of disposal or transfer of title of the asset;
    3. to obtain maximum benefit from University assets which are considered to be of no further use to the present user or department, by optional use internally, trade-in on new purchases or sale to outside parties;
    4. to document the transfer or sale of University assets;
    5. to ensure that the University community is made aware of the availability of useable and marketable equipment and/or furnishings.

  3. SCOPE

    This policy applies to McMaster University physical assets.

  4. RESPONSIBILITY

    Except as otherwise delegated by the Board of Governors or the President, the disposal of University assets shall be the responsibility of Purchasing Resources. Current exclusions are the disposal of land and buildings.

    The Director, Purchasing Resources may delegate his/her decision making authority to other groups in specific instances, while retaining functional authority.

  5. GENERAL

    Surplus assets will be grouped into the following categories:

    1. furnishings and/or equipment originally purchased from operating funds, major capital funds, special capital funds, miscellaneous capital funds, research grant funds which have now lapsed and other unidentifiable funds;

    2. assets (including equipment) purchased from research funds (grants or contracts).

    NOTES:

    1. assets purchased from research accounts are the property of McMaster University, unless otherwise specified by the sponsor's terms for the grant or contract funding, and are subject, therefore, to this policy with the exception of item (c) below;
    2. prior written approval of the Faculty Dean and/or Vice-President, Research is required for the transfer of surplus research assets to:
      • other institutions, organisations and
      • the new University when a faculty member moves to another University.
    3. it is not a requirement to consult with the Purchasing Resources Department when the transfer of surplus University assets is made from one University department to another. Notwithstanding this, the assistance of the Purchasing Resources Department to advertise the sale and/or locate prospective buyers is always available. Such transfers are exempt from this policy.

  6. PROCEDURES

    1. the present user or department of University assets, with a current market values of $2000.00 or more excluding taxes, that are no longer required will process and forward an Asset Disposal Requisition, secured from the Purchasing Department, to Purchasing Resources for approval and action;
    2. the Director, Purchasing Resources shall review the terms of sale with respect to any external sales, including the determination of applicable taxes, duties, delivery and payment terms;
    3. the Director, Purchasing Resources will assist in locating prospective buyers of assets being disposed of;
    4. the Director, Purchasing Resources will forward all Asset Disposal Requisitions to the Supervisor, Customs & Traffic to ensure that duties are paid on goods diverted from the original use;
    5. typically, surplus assets will be made available for sale and/or utilisation in the following order: other University departments; University faculty and staff; external organisations;
    6. unmarketable assets will be disposed of within ninety (90) calendar days through a method selected by the Director, Purchasing Resources, e.g. disposal through a liquidation company or donation to a charitable organisation.