4.1.4 Disposal of University Property (Surplus and Salvage Property)

A. Purpose

The purpose of this policy is to establish the conditions under which The University of Texas at Tyler may dispose of surplus and salvage property. This policy has been created in accordance with Texas Government Code Sections 2175.128 and Section 2175.304 and The University of Texas System (UT System) Board of Regents Rules and Regulations, Rule 80201.

Section 2175.303 of the Texas Government Code states that the provisions of Chapter 2175 of the Texas Government Code do not apply to the disposition of (1) products of by-products of research, forestry, agriculture, livestock, or an industrial enterprise or (2) or certain recyclable materials, including paper, cardboard, aluminum cans, plastics, glass, one-use pallets, used tires, used oil, and scrap metal, when the disposition is not in the best interest of the state or economically feasible. Therefore, this Section does not apply to such products, by-products, or material.

B. Persons Affected

This policy applies to all Budget Authorities and their staff members.

C. Definitions

N/A

D. Policy and Procedures

  1. Determination of Obsolescence and Notification to Campus. Whenever any property item becomes obsolete or useless for the needs and purposes of the department concerned, the department shall follow the following process in accordance with this policy.  The department must notify the Financial Services Inventory office when disposing of inventoried property so that the property can be removed from University records.

    1. Data Processing (IT) Equipment:
      1. if unusable or broken, email IT (itsupport@uttyler.edu) for pick up.
      2. if usable, announce on campus bulletin board in case another University department can use the item.  If not claimed, contact IT for pick up.
      3. ensure documentation is completed and signed that removes the property from your department’s inventory.
      4. if not claimed for use by another University department, the procedures for external disposal as set forth in this Policy shall be followed.
    2. Serial numbered or tagged property (Inventoried Property):
      1. if unusable or broken, contact Physical Plant directly for pick up.
      2. if usable, announce on campus bulletin board in case another University department can use the item.  If not claimed, contact Physical Plant for pick up.
      3. ensure documentation is completed and signed that removes the property from your department’s inventory.
      4. if not claimed for use by another University department, the procedures for external disposal as set for the in this Policy shall be followed.
    3. Non-Serial numbered and/or non-tagged (Non-inventoried property):
      1. if unusable or broken, throw it away.
      2. if usable, announce on campus bulletin board in case another University department can use the item.  If not claimed, contact Physical Plant for pick up.
      3. if not claimed for use by another University department, the procedures for external disposal as set forth in this Policy shall be followed.
    4. However, if such an item is a work of art or a duplicate of valuable, rare, or significant volume (an “Artwork or Duplicate Volume”), then (a) the disposability and current fair market value of that Artwork or Duplicate Volume shall be certified by a three-member panel (including either an art historian or a bibliographer) and the director of the collection disposing of the property and (b) the President must also determine that the Artwork or Duplicate Volume is no longer of significant use for the purposes of teaching or research. The Vice President for Business Affairs shall then determine whether that property item is needed by any other department and, if so, shall transfer and assign such an item to that department.
  2. Transfer to Public School, School District, or Assistance Organization. If the Vice President for Business Affairs determines that a property item is not needed by any department, that it is not practical for the University to store that item for possible future use, and that the item can be used for instructional purposes, then in accordance with Section 2175.304 of the Texas Government Code, the Vice President for Business Affairs must make that item available to a public school, a school district, or an assistance organization (as defined in Section 2175.001 (1) of the Texas Government Code) that is designated by the school district in exchange for:

    a. a price or for other consideration agreeable to the University and the public school, school district, or the assistance organization, or

    b. no consideration, as the University determines to be appropriate.

    The Vice President for Business Affairs must first attempt to directly provide such surplus or salvage property to a public school, a school district, or an assistance organization in accordance with this Subsection D.2 before disposing of the property in another manner. If in doing so the Vice President for Business Affairs becomes aware that more than one public school, school district, or assistance organization seeks to acquire the same surplus or salvage property from the University on substantially the same terms, then, in accordance with Section 2175.304(c) of the Texas Government Code, the Vice President for Business Affairs will give preference to:

    a. a public school that is considered low-performing by the commissioner of education, or

    b. a school district that has a taxable wealth per student that entitles the district to an allotment of state funds under Subchapter F, Chapter 42, Texas Education Code, or to the assistance organization that is designated by such a school district.

  3.  Disposal of Data Processing Equipment. If any surplus or salvage data processing equipment, as defined by Texas Government Code Section 2175.001 (5) referencing Texas Government Code Section 2054.003(3) (A), that is not

    1. transferred to a public school, a school district, or an assistance organization designated by the school district as provided in Subsection D.2 of this Section or

    2. disposed of under other law must under Section 2175.128 of the Texas Government Code, next be offered no fee or other reimbursement to

      1. a school district, or open enrollment charter school in this state under Subchapter C, Chapter 32 of the Texas Education Code;

      2. an assistance organization specified by the school district; or

      3. the Texas Department of Criminal Justice.

  4. Residual Disposal Provisions. Surplus or salvage property that is not disposed of as provided above in Subsections D.2, or D.3 of this Section shall be disposed of in accordance with the following provisions:

    1. Any such surplus or salvage property that has no resale value may, under Section 2175.304 (d) of the Texas Government Code, be donated by the Vice President for Business Affairs to an assistance organization defined in Section 2175.001 (1) of the Texas Government Code.

    2. The Vice President for Business Affairs may offer the surplus or salvage property to another Texas state agency. If another Texas state agency wishes to obtain such property, the transfer of that property from the University to the other Texas state agency must be approved in advance by the Vice President for Business Affairs and shall be reported to the President. The Vice President for Business Affairs shall advise all departments and administrative offices as to the procedure to be followed in disposing of or acquiring property by this means.

    3. Any surplus or salvage property item that is not disposed of under Subsections D.4.a or D.4.b of this Section and that has resale value will be handled as follows:

      1. Sale of Artwork or Duplicate Volumes. If the President or his or her delegate has determined that the property item is an “Artwork or Duplicate Volume,” then all other University of Texas System institutions shall be given first choice in acquiring the Artwork or Duplicate Volume   before it is offered for sale. Proceeds from the sale of the Artwork or Duplicate Volume   shall be used by the University for purchases to improve the collection from which the Artwork or Duplicate Volume   was drawn or to select items more appropriate to the University’s collection areas. Provided, however, the sale of an Artwork or Duplicate Volume is subject to the approval of the President and must be for the fair market value of that Artwork or Duplicate Volume. A permanent record shall be made of the disposition and future location of the Artwork or Duplicate Volume.

      2. Other Items. The following procedure applies to each surplus or salvage property item with resale value that is not an Artwork or Duplicate Volume:

        1. The Vice for Business Affairs will determine if the item (i) has little value or limited use and (ii) that the use of competitive bids to sell such an item is not practicable. If so, the Vice President for Business Affairs has the authority to dispose of that item on the basis of negotiated bids or a surplus auction, so long as the amount the Vice President estimates that the University will obtain for such an item is under $50,000.

        2. If the item is not addressed by Subsection D.4.c. (ii) (a) above, the Vice President for Business Affairs must use competitive bids to sell that item.

      3. Any sale of a surplus or salvage property item that is in the amount of $100,000 or more shall be approved in advance by the Chancellor and approved by The University of Texas System Board of Regents through the institutional docket.

      4. All sales of surplus or salvage property items shall be for cash, or its bankable equivalent. The proceeds from such sales shall be allocated in accordance with the provisions of the current operating budget and subject to applicable laws, rules, and regulations.

      5. The Vice President for Business Affairs must ensure that an itemized listing, by account, of all such sales is submitted to the Director of Financial Services to ensure that the value of such deleted property items is removed from the General Ledger during the Annual Financial Reporting period.

      6. Sales to any officer or employee of the UT System Administration, the University, or any other institution of the UT System of any supplies, materials, services, equipment, or property must have the prior approval of the President. Provided, however, this Subsection D.4.c.vi of this Section does not apply to sales made at public auction. (UT System policy UTS159.)

    4. Donations to Charitable Organizations. If the Vice President for Business Affairs does not dispose of a surplus or salvage property item under Subsections D.4.a), b), or c) of this Section as set forth above, then he or she may direct that the property item be (i) donated to a civic or charitable organization or (ii) destroyed. If the Vice President for Business Affairs directs the donation of the item to a civic or charitable organization, he or she shall assure that the donation serves a proper public purpose appropriate to the function of the UT System and the University, that adequate consideration from such a donation flows to the public, and that sufficient controls are in place to ensure the public purpose for such a donation is achieved.

E. Responsibilities

See Policies and Procedures Section.

F. Review

This policy shall be reviewed by Financial Services every five years or as legislation changes.

ORIGINALLY APPROVED:  12/01/2001

LAST AMENDED:  04/15/2016