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Disposing of University Equipment

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  1. The department should download the UM1393: Capital Equipment Asset Disposal form and complete the request that the equipment be donated. The Dean, department head, or administrator's signature is required on the form. Equipment to be donated must have no remaining net book value, or that amount will be a loss that will negatively impact a department's carry forward balance reports. The department can query the PeopleSoft Asset Management module to review the remaining depreciable value.
  2. Requestor must ensure that the University has title to the equipment wishing to donate to prevent penalty or charge for loss, or the donation is not allowed. If unsure, call Sponsored Projects Administration (SPA) at 612-624-5599, for clarification.
  3. Recipient (donee) should be a non-profit or government-recognized charitable organization. Churches and schools would be good examples of this. The University does not donate to individuals. For individuals to acquire University-owned equipment, they must buy it from the department with custodial responsibility. (See "Sell Equipment Outside the University or to Employees")
  4. If authorized by Inventory Services, an approved copy will be sent back to the department that submitted it. If the form is not approved, the donation is not allowed.
  5. When approved copy is received by the department, the property may be given to the donee. The University identification barcode sticker should be removed before the item leaves the University premises.
  6. The donee must sign a receipt for the property, and that receipt should be kept in the department's records, along with the approved Property Disposal form copy.
  7. Inventory Services will make the appropriate adjustment in the PeopleSoft Asset Manage-ment module.

Requesting to Scrap, Cannibalize, or Recyle Capital Equipment Assets

  1. The department should download the UM1393: Capital Equipment Asset Disposal form and lists the equipment that is to be scrapped, cannibalized, or recycled. Dean, department head, or administrator's signature is required on the form and the department disposing of the equipment is responsible for putting through the paperwork on the disposal. This includes any capital equipment items that go to the University's Reuse Center, Como Recycling Facility, or Asset Recovery, Inc.
  2. Requestor must ensure that the University has title to the equipment assets wishing to be scrapped, cannibalized, or recycled, or the retirement is not allowed. If unsure about equipment assets bought on sponsored funds, review them in the PeopleSoft Asset Management module, or call Sponsored Projects Administration (SPA) at 612-624-5599.
  3. If authorized by Inventory Services, an approved copy will be sent back to the department that submitted it. If the form is not approved, the disposal is not allowed.
  4. Inventory Services will make the appropriate adjustments to the physical record of all pertinent capital equipment assets in the PeopleSoft Asset Management module.
  5. The department should remove the item's UM asset tag identification barcode sticker before the item leaves University premises.
  6. Upon receipt of the approved form copy, items to be scrapped or recycled can be sent to the Como Recycling Facility.
  7. You may contact Alexander's Mobility Services contract carrier at 952-881-4128, Copeland Truc-King Inc. at 763-572-0505, or Roadrunner at 1-800-325-6522 to arrange transportation to Como Recycling Facility or the Reuse Center if your department cannot do so from internal resources.
  8. Unwanted computer equipment may be picked up free of charge by Asset Recovery, Inc. at 651-602-0789.
  9. The same procedure should be followed for non-capital equipment, but those forms don't need to be routed through or approved by Inventory Services. Instead, form copies should be completed and maintained in departmental records.

Selling Capital Equipment Outside the University or to Employees

  1. The department should download and complete the UM1393: Capital Equipment Asset Disposal form and list the equipment to be sold.
  2. If department wishes to sell any vehicle for which Fleet Services holds title, they must also contact Bill Stahlman (612-625-8020) to assist with the title transfer. If selling a vehicle (any car, truck, trailer, or licensed vehicle, except boats), an auction sale may be coordinated through Fleet Services, or a department may negotiate a sale. Departments will likely want to sell at remaining net book value, because selling at a loss will negatively impact a department's carry forward balance report.
  3. Department needs to determine if the item was bought on sponsored funds. If unsure, the item could be reviewed in the PeopleSoft Asset Management system.
  4. If the item was purchased on sponsored funds, the department needs to determine if the grant or contract that purchased the item is still active. In departments, the PI (Principal Investigator) and/or department accountant should know that information. If still unsure, contact SPA (Sponsored Projects Administration) at 612-624-5599) to verify if the University has title to the equipment. If the University does not have title, the item may yet have to be returned to the granting agency, and cannot be sold.
  5. If the item was a gift donation to the University, it must be held for three years before being disposed. The department should have its own documentation for the gift, otherwise Inventory Services may help you at 612-626-8222.
  6. Departments will likely want to sell at remaining net book value, because selling at a loss will negatively impact a department's carry forward balance report. If an item has no remaining net book value (like a computer, for example), it should be sold at Fair Market Value.
  7. Department should work with Inventory Services to determine FMV or NBV. Fair Market Value will be determined by researching the selling price of similar assets from various resource materials. Net book value will be determined from the asset record in the PeopleSoft Asset Management module.
  8. Based on the information provided on the disposal form UM1393, Inventory Services will decide whether to approve the sale. If approved, Inventory Services will forward the department an approved copy of disposal form. If the sale is not approved, the sale of equipment is not allowed.
  9. Department can sell the asset at the price agreed upon with Inventory Services (FMV or NBV). Appropriate sales tax should be added to the sale price. Sales tax rate should be from the county that the item is sold from.
  10. Buyer should pay the department with a check made out to "University of Minnesota." That check should be deposited into department's account using the Accounts Receivable process called "Processing Regular Deposits."
  11. Inventory Services will need to verify that the asset was sold and the selling price prior to disposing of the asset. Then, Inventory Services will run the "Asset Sold" report. The report will be accessing AR/Billing information to provide asset tag number, sale amount, and DeptID of the department selling the asset.
  12. Inventory Services must ascertain if the retirement is a full or partial retirement and will need to update either the amount or the quantity fields of the item(s) sold.
  13. Inventory Services will complete the retirement by updating the "Retire Assets" page in the PeopleSoft Asset Management module. The Transaction Date and Accounting Date must be entered into system to compute how much depreciation will be recovered and when the transaction will be posted.

Trading in Capital Equipment Assets

  • The department downloads the UM1393: Capital Equipment Asset Disposal form and lists the equipment that is to be traded in. Dean, department head, RRC manager, or administrator's signature is required on the form.
  • Requestor must ensure that the University has title to the equipment assets wishing to be traded in, or the trade in is not allowed. If unsure about equipment assets bought on sponsored funds, review them in the Asset Management module, or call Sponsored Projects Administration (SPA) at 612/624-5599.
  • On the disposal form, indicate how much trade in allowance or value you are getting from the vendor.
  • On the disposal form, reference the voucher number of the new item(s) to be obtained in the trade, if that item(s) is to be a capitalized asset.
  • If authorized by Inventory Services, an approved copy will be sent back to the department that submitted it. If the form is not approved, the disposal is not allowed.
  • Inventory Services will make the appropriate adjustments to the physical record of all pertinent capital equipment assets in the PeopleSoft Asset Management module.
  • The department should remove the item's UM asset tag identification before the item leaves University premises.
  • The same procedure should be followed for non-capital equipment, but those forms do not need to be routed through or approved by Inventory Services. Instead, form copies should be completed and maintained in departmental records.

Transferring Capital Equipment to Another Institution

  1. Department must obtain and complete the UM1393: Capital Equipment Asset Disposal form to transfer (dispose) capital equipment assets and route that to Inventory Services.
  2. Items purchased on discontinued sponsored awards may transfer at the discretion of the department head or dean.
  3. Items purchased on active sponsored awards may transfer with the approval of the granting agency.
  4. Items purchased on non-sponsored funds must be purchased by the departing faculty or their new institution if need is continued. Fair market value or net book value should be obtained for the items. Inventory Services can assist with the values on most equipment assets.
  5. To continue on with the sale of capital equipment assets, see "Selling Capital Equipment Outside the University or to Employees".

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Last modified on August 11, 2010