Surplus Property

Policy
Fixed Assets become surplus property when the owning department no longer needs them. Surplus property cannot be sold directly to individuals. It can be sold to certain education institutions and non-profit organizations with the permission of the State Surplus Property Agency. Disposal or transfer of surplus property must be handled according to University and North Carolina State Surplus Property procedures.

Procedure

1. Departments having surplus property should notify the Fixed Assets (FAS) Coordinator that the equipment is surplus by memo or by the Movable Equipment - Notice of Disposal or Change in Location Form (Word). It is the responsibility of the owning department to remove any software from computer equipment before it is sent to surplus.
2. The FAS Coordinator forwards the Central Warehouse Manager a copy of the memo or form. The Manager then arranges to have the equipment picked up and stored in the warehouse until it is needed by another department or is sold as surplus.
3. All computer equipment must be evaluated by the Computer Center before it can be sold as surplus. The Computer Center can take the equipment for their use (for parts or extras), leave the equipment in the warehouse for other departments to take, or declare that the equipment should be sold as surplus.
4. If equipment is not usable, if no department has requested that type of equipment, or if the Central Warehouse Manager and FAS Coordinator cannot find a new user, then the equipment is sold as surplus.
5. Departments that have equipment that is to be used as a trade-in should first work out the arrangements with the help of a purchasing agent. After the tentative purchase has been arranged, the details along with the trade-in value are given to the FAS Coordinator who contacts the State Surplus Property Agency for permission to trade. Vehicles cannot be traded-in.
6. The FAS Coordinator groups the surplus equipment into lots at the warehouse or wherever it is located for sale. These lots are listed by item on a worksheet along with the WCU number and the department that turned the equipment in as surplus. The form or memo declaring the equipment as surplus is attached to the back of the worksheet. After all the equipment that is to be  advertised for sale is grouped into lots and listed, the Coordinator types a complete list on the Equipment Disposal Form. This form is sent to the State Surplus Property Agency in Raleigh along with a letter and any titles for vehicles being advertised for sale.
   NOTE: Equipment that has been listed for bid cannot be withdrawn without permission from the State Surplus Property Agency.
7. If it is feasible and practical, the State Surplus Property Agency will transfer surplus property between and among agencies at values it deems reasonable and appropriate and in the best interest of the State. If other agencies have no need for the asset, the State Surplus Property Agency attempts to sell the asset for the highest price possible. This is generally done by offering the asset (to the public through sealed competitive bids, or a way determined) to be preferable by the State Surplus Property Agency. Transfer may also be made directly to local government agencies, such as county or city agencies, or a qualified non-profit organization at a fair market price based on actual high bids awarded at public bid openings on like surplus property. Due to the time it takes to pick up the asset, prepare it for sale, and process bids for a large number of items, it can take anywhere from two to four months to sell the asset and have it removed from the premises.
8. The State Surplus Property Agency sends copies of the current bid list to the FAS Coordinator. The Coordinator then makes extra copies of the list to send to the WCU Surplus Mailing List. WCU employees who request bid lists receive them through campus mail from the Coordinator. All others receive the bid list through regular mail.
9. Bidders are urged to inspect all surplus property prior to submitting bids. Bids are subject to rejection unless submitted on the bid form and properly executed. Lump sum bids will not be accepted--bidders must bid on individual items. The bids are opened at 1:00 p.m. on the designated date at the State Surplus Property Agency warehouse in Raleigh with the award going to the highest responsible bidder. The State Surplus Property Agency reserves the right to reject any or all bids. No guaranty or warranty is offered as to number, condition or quality of the property offered for sale. All surplus is sold "As Is" and "Where Is", and any cost of weighing, packaging, loading, or hauling shall be assumed by the bidder. After the item is sold, State Surplus Property notifies the owning agency of the selling price and bidder. If the item was transferred, State Surplus Property will notify the owning agency as to which agency received the item and at what cost. All payments must be in the form of a cashier's or certified check or money order made out to State Surplus Property Agency. Payment in full for all property purchased must be made within fifteen (15) calendar days from date of award, and all property purchased must be removed within fifteen (15) calendar days from date of
   award.
10. If the purchaser does not remove the property purchased within fifteen (15) calendar days after date of award, the Auxiliary Services Department reserves the right to retain the purchase price and resell the property a second time, keeping any and all proceeds obtained. The WCU Central Warehouse Manager and the FAS Coordinator makes every effort to work with bidders in making arrangements to pick-up surplus property they have bought. Warehouse space is limited and it is in the best interest of the University to have this equipment sold and removed from the premises rather than tie up warehouse space even if it takes a little extra time.
11. The Central Warehouse Manager and /or FAS Coordinator can accept the proper and complete payment for surplus property from the bidder if that bidder wants to pick up the property right away or right after the bid has been awarded. The Manager or Coordinator will forward the payment to the State Surplus Property Agency in Raleigh by the next workday.
12. State Surplus Property sends a check at the end of the month for all surplus sold during the month minus five percent. The Coordinator determines how the funds are divided and deposits them into the correct account. The Coordinator deposits money received for surplus for the departments who have budgeted surplus sales into the departments' account that paid for the asset. If the correct account is not known, then the department's state account is used. There are two departments at the present time who have budgeted surplus sales--Highlands Biological Station and Physical Plant.
    
    The Coordinator deposits all other money for surplus that was purchased with state funds to the Purchasing Department Account: Accountant is contacted in reference to grants and contracts to see if a current account exists. If one exists, then the money is deposited into that account. If one doesn't exist, then the money is deposited into account: 2-25000-0740. Surplus sales for auxiliary Development Foundation are deposited into that current account. When a current account isn't available for known, the University Advancement Office is contacted for the account number. The revenue code for all surplus sales is 0740.
13. Equipment deemed by the FAS Coordinator and Warehouse Manager to be of no value and not sellable shall be referred to the Director of Purchasing for review and approval. Upon approval, the Director of Purchasing will note this on the Movable Equipment - Notice of Disposal or Change in Location Form (Word) or e-mail notification and sign. The equipment shall be disposed of at the Jackson Country Waste Disposal Center. Equipment designated to be discarded may not be acquired by any individual or organization, but must be delivered to the County Waste Disposal Center.