Ohio Admin. Code 3337-55-71 - Disposition of surplus property

The version of this rule that includes live links to associated resources is online at https://www.ohio.edu/policy/55-071.html

(A) Overview

This policy provides a standard procedure establishes the requirements for the disposition of university surplus or excess property that incomplies compliance with other applicable university policies and state and federal laws and insures maximum use of property prior to sale and then maximum income from property at the time of sale. Surplus disbursement/disposal procedures ensure that university property provides value to the full extent of its worth and that disbursement/disposal is conducted equitably, efficiently, and cost-effective.

Any department that declares as surplus or excess state or university property will contact the moving and surplus office (also called the surplus property office) at 593-0463. The property will be removed from the department for disposition either through transfer to another university department or public sale. No one is permitted to donate, give away, sell, or otherwise dispose of any surplus or excess property, except by the procedure outlined in this policy. Equipment used as a trade-in as part of the purchase of new equipment is not considered surplus.

When it is determined that a university-owned asset has no further productive use or value within the unit this item will be considered for designation with the surplus disbursement/disposal program. Departments declaring assets as surplus or excess state will contact moving and surplus to initiate the disposition process. The property will be removed from the department for disposition by moving and surplus and evaluated for resale potential. No one is permitted to donate, give away, sell, or otherwise dispose of any surplus or excess property, except by the procedure outlined in this policy. Equipment used as trade-in as part of the purchase of new equipment is not considered surplus.

This policy does not affect the procedures of policy 44.104.

(B) Departmental responsibilities and procedures

(1) All equipment

In the disposal of all surplus items, departments must proceed as follows:

(a) Every department or planning unit should have an individual who is authorized to determine when property (equipment, supplies, or other material assets) is no longer useful to the department.

(b) When the authorized individual determines that property is no longer useful, he or she will call the moving and surplus will be contactedoffice to arrange for disposition.

(c) The department must report inventory changes and deletions directly to inventory control, in accordance with policy 19.054 and policy 19.055.

(2) Red tag equipment

Red tag equipment is equipment marked with a red, rather than the usual green, Ohio university inventory tag. A red tag designates that the equipment was purchased using external funds via a grant or contract or equipment furnished or loaned to the university where the title remains with the sponsorwith grant funds and is titled to the granting agency, not the university. Never send red Red tag equipment should not be designated asto university surplus without approval from the equipment inventory office. Always check with equipment inventory for disposal of red tag equipment.

(C) Moving and surplus office responsibilities and procedures Upon receiving a departmental surplus request, moving and surplus will:

(1) Schedule to move the surplus property to the surplus warehouse;

(2) Record the item description and general condition;

(3) Add the item to surplus property inventory if it has economic value and direct it to the recycling program if it does not; and

(4) Locate inventory control numbers and report changes to inventory control for removal from the department's inventory records. This provision does not relieve the department from its responsibility to contact inventory control directly, as stated in part (B)(1)(c) of this policy.

Assets will be made available for departmental purchase or external sale via the surplus store or auction as deemed appropriate by moving and surplus.

At the discretion of the moving services manager, it may be decided that a goodwill offering will be made as a donation to another state educational or non-profit (501c3) if public sale or auction disposal is not deemed appropriate. Organizations will be required to provide tax identification and awards will be made on a first-interested, first-claimed basis. First preference will be given to other nonprofit education institutions in our local geographic region. These goodwill offerings enhance and further the university's commitment to organizational stewardship through education, research, community service, and sustainability. Donations will not be allowed for political purposes or for-profit organizations.

(5) Specialized items (e.g., aircraft) that are not suitable for the tyipcal public will be referred to university procurement to determine the most appropriate method of sale.

(1) Standard sale procedures Upon receiving a request from the department, the moving and surplus office will:

(a) Move the surplus property to the designated sale location as soon as possible.

(b) Record the item description and general condition.

(c) Add the item to surplus property inventory if it has economic value, and direct it to the recycling program if it does not.

(d) Locate inventory control numbers and report change to inventory control for removal from the department's inventory records. This provision does not relieve the department from its responsibility to contact inventory control directly, as stated in part (B)(1)(c) of this policy.

(e) Prior to public sale, make the item available to university departments for the cost of handling the item.

(2) Sealed bid procedures The moving and surplus office will administer the surplus program and will, at its discretion, refer items which are not suited for typical public sale (for example, airplanes and buses) to the purchasing and contracts office.

The purchasing and contracts office will make the final determination as to the method of sale for all surplus (e.g., by sealed bid or by web auction, such as e-bay).

(a) Bids will be awarded to the highest bidder when the bid is determined to be reasonable (i.e., commensurate with fair market value of the property).

(b) Bids may be rejected if they are below fair market value, improperly filled out, or lacking in required details. Ohio university may, upon rejecting all bids, re-bid at a later date, or offer the item for open sale.

(c) Equal or tie bids will be awarded based on the stamped submission date and time. The first bidder will be the successful bidder.

(d) Successful bidders must pick up their purchases within five work days following bid opening, unless otherwise arranged with the moving and surplus office or the purchasing and contracts office, as appropriate. Failure to meet the pick-up schedule may result in forfeit of the property.

(e) The moving and surplus office or the purchasing and contracts office may withdraw items from sale prior to bid opening, if it is determined that an item is of further use at Ohio university, or by another state institution.

(D) Disbursement of income generated

(1) Sales conducted through the moving and surplus office

The division of the income generated by sale of surplus items through the moving and surplus office depends on the value of the item:

(a) In cases where If the income generated from the sale of the item's sale is five hundred one thousand dollars or less, all of the proceeds will be retained by the moving and surplus office will retain all the proceeds..

(b) In cases where If the income generated from the sale of a surplus item is greater than five hundred one thousand dollars, fifty per cent of the proceeds will be returned to the contributing department.

When the proceeds are critical to provide funding for the replacement of the item with a similar item, departments may request up to eighty seventy-five per cent of the proceeds from the sale by submitting a written request and justification to the director of property management moving services manager.

(2) Sales conducted through the purchasing and contracts office All income generated (one hundred per cent) is returned to the contributing department. Sales are referred to the purchasing and contracts office by the moving and surplus office only. All departments must contact the moving and surplus office for sale of surplus items.

(E) Regional campuses

Disposition of surplus or excess property on regional campuses will be managed by the regional campus dean. Each regional campus dean will manage the disposition of surplus or excess property on their regional campus,ensure ensuring that procedures outlined in this policy are followed.

The version of this rule that includes live links to associated resources is online at

https://www.ohio.edu/policy/55-071.html

Notes

Ohio Admin. Code 3337-55-71

Effective: 4/1/2025
Promulgated Under: 111.15
Statutory Authority: 3337.01
Rule Amplifies: 3337.01
Prior Effective Dates: 08/07/2016