University of Nebraska Kearney

 Property and Equipment:  Asset Transfer/Disposal

Abandoned Property.

Abandoned by students.  Any personal property with an estimated value of $250 or more that is abandoned by a student on the premises of the University of Nebraska at Kearney (UNK) will be subject to the following:

• A notice will be mailed to the student at the student's latest address of record.
• The notice will be sent within six months of the end of the contract between UNK and the student.
• The notice will describe the abandoned property, the location where it can be claimed, a UNK contact person, and the date by which the property must be claimed.  This date will be no later than 14 days from the postmark date of the notice.
• If the property has not been claimed by the specified date, the property will become the property of UNK, and will be subject to UNK's policy on transfer/disposal of surplus property.

Notice is not required to be mailed to the student for abandoned property with an estimated value of less than $250.  Upon determination that the estimated value is less than $250, a 14-day waiting period will ensue at the end of which ownership shall immediately transfer to UNK and the property will become subject to UNK's policy on the transfer/disposal of surplus property.

Inquiries regarding the abandonment of student property should be directed to the Office of Residence Life (8519).

Abandoned by Employees.  Any personal property with an estimated value of $250 or more that is abandoned by an employee on the premises of the University of Nebraska at Kearney (UNK) will be subject to the following:

• A notice will be mailed to the employee at the employee's latest address of record.
• The notice will be sent within six months of the termination date of the employment relationship between UNK and the employee.
• The notice will describe the abandoned property, the location where it can be claimed, a UNK contact person, and the date by which the property must be claimed. This date will be no later than 14 days from the postmark date of the notice.
• If the property has not been claimed by the specified date, the property will become the property of UNK, and will be subject to UNK's policy on transfer/disposal of surplus property.

Notice is not required to be mailed to the employee for abandoned property with an estimated value of less than $250.  Upon determination that the estimated value is less than $250, a 14-day waiting period will ensue at the end of which ownership shall immediately transfer to UNK and the property will become subject to UNK's policy on the transfer/disposal of surplus property.

Inquiries regarding the abandonment of employee property should be directed to the Asset Records Manager (8865).

Board Approval*. Not withstanding any of the foregoing provisions of this policy to the contrary, no single item or identical items of personal property having an estimated market value in excess of $400,000 shall be sold without prior approval by the Board of Regents. All sales shall be made in the name of the Board of Regents.

* Nebraska Board of Regents Policy RP 6.2.2

Classification and Disposition of Property. When a University department determines that property in its custody is excess or surplus, the Department Head shall contact the Asset Disposal Manager who will make a number of determinations.

Those determinations are: 

• Before the University may dispose of property on its premises, a determination must be made of whether the property is owned by the University.
• If it is determined that the property is not owned by the University (for example, the property is leased), the individual or entity that holds title to the property must be contacted for further instructions regarding the removal of the property.

• The University owns any property to which a University capital equipment tag has been affixed. The tag will bear a number that identifies the property in the official inventory and accounting records of the University.
• When property is transferred or disposed of, the capital equipment inventory record must be adjusted to reflect the change in location, sale or other disposition of the property. The department head requesting the transfer or disposal of any property to which a University capital equipment tag has been affixed must notify the Asset Records Manager of the request by completing a UNK Asset Transfer / Disposal Form.
• For property disposals and transfers to an outside entity, the capital equipment tag must be removed from the property and secured to the completed form before forwarding to the Asset Records Manager.
• In no circumstances should a capital equipment tag remain affixed to an asset that has been sold or transferred to an outside entity.

• The Asset Disposal Manager will determine whether the property contains hazardous materials subject to special disposal guidelines.
• If the property contains hazardous materials, the Asset Disposal Manager will contact Environmental Health and Safety for guidance on the appropriate disposal procedures.

• Some Federal grants or contracts may require that funds from the sale of equipment originally purchased in support of the grant or contract be returned to the Federal Government.
• Items in this category will be handled on an individual basis in cooperation with the applicable campus grants office.

• University vehicles or farm equipment may be disposed of by auction or sealed bids after appropriate advertisement.
• Vehicles and farm equipment also may be disposed of through the Materiel Division of the State Department of Administrative Services.

• Livestock and farm products excess to the needs of the University may be disposed of by auction, livestock or farm product sales, or in whatever manner would best serve the interest of the University.

• The Asset Disposal Manager will evaluate the property to determine if it meets the value test ($5,000 or greater current value) to be classified as personal property subject to the transfer/disposal procedures in Section RP 6.2.2 of the University of Nebraska Board of Regents Policy. 

* Nebraska Board of Regents Policy RP 6.2.2

Definitions* 

Excess or Surplus Personal Property. Excess or surplus personal property shall mean usable or non-usable property which has been declared excess to the needs of an administrative unit of the University.
Administrative Unit. Administrative unit shall mean the Central Administration, the University of Nebraska-Lincoln, the University of Nebraska Medical Center, the University of Nebraska at Omaha, and the University of Nebraska at Kearney.

Principal Business Officer. Principal business officer shall mean the Vice Chancellor for Business and Finance of [the University of Nebraska at Kearney].

* Nebraska Board of Regents Policy RP 6.2.2

Determination of Best Manner for Transfer/Disposal. The Asset Disposal Manager may exercise judgment to determine the best manner in which to transfer or dispose of property that has not been claimed after appropriate notifications have been given and response times allowed. In making such judgment, some of the factors to be considered are: 

• Any residual value of the property.
• Any personal knowledge that the Asset Disposal Manager has of a potential use for the property by another entity.
• Any marketability of the property for outside sale.
• Any cost involved in the administration and staff time required to accomplish a particular disposition.
• The most reasonable option, given the circumstances, that creates the most benefit to the University at the least cost.

Expense of Disposing of Personal Property*. The expense of selling surplus property shall be deducted from the proceeds of the property being sold.

* Nebraska Board of Regents Policy RP 6.2.2

General Sale or Disposal of Surplus Property After Making Required Notifications. When notification to other entities is made, if the Asset Disposal Manager receives no response after ten business days, the Asset Disposal Manager may sell or dispose of the property by such method as is to the best advantage of the University.

Options for Disposal of Property. Regardless of the disposition, care must be taken to ensure that the property is disposed of in a discreet and reasonable manner in compliance with policy. In addition to these considerations, when it has been determined that the property has residual value, some options the Asset Disposal Manager may consider are: 

• Transfer to the UNK surplus property inventory.
• Sale via public auction.
• Donation of property to a charitable organization.
• Transfer to the State of Nebraska surplus property inventory.

*Normally sale or disposal of any item of surplus property having an estimated value in excess of $25,000 will be by auction, sealed bid public sale, or exchange for other property.

* Nebraska Board of Regents Policy RP 6.2.2

Personal Property Proceeds Account(s)*. There shall be established for each administrative unit appropriate University account(s) for the deposit of proceeds from the disposal of personal property.

* Nebraska Board of Regents Policy RP 6.2.2

At UNK, proceeds from the sale of personal property originally purchased with 

1. state-aided funds will be deposited into the General Institutional Revolving Account unless other arrangements have been approved, in writing, by the Vice Chancellor for Business and Finance;
2. revenue bond funds will be remitted to the Bond Trustee; and
3. federal grant funds will be handled according to the disposal provisions of the grant, if any.

Pricing Practices*. The sale price of surplus property shall be the highest bid price if sold by public auction or sealed bid public sale, or the reasonable market value if no bid is involved.

* Nebraska Board of Regents Policy RP 6.2.2

Procedure for Transfer/Disposal of University Property.  Except in special circumstances, University property will be transferred or disposed of in the following manner:

Property Damaged by an Act of Nature or in an Accident. 

• Before transfer or disposal, please refer to the Risk Management section.

Property with a current value of $5,000 or more. 

• UNK Asset Transfer / Disposal Form. The department head requesting the transfer or disposal of any personal property valued at $5,000 or more must notify the Asset Records Manager of the request by completing a UNK Asset Transfer/Disposal Form and forwarding it to the Asset Records Manager.

• Notification and transfer. Upon receipt of a request for transfer or disposal, the Asset Disposal Manager will give concurrent notification to all UNK departments and University of Nebraska campuses of the availability of the property. Ten-business-days response time will be allowed. The property will be transferred to a responding unit with priority given first to all UNK departments on a first-come-first served basis, and then to other University units on a first-come-first-serves basis. Note:  If an offer to purchase the personal property is made, the best offer will be accepted after the above notifications and response period are complete.

Property with a current value of less than $5,000. 

• Notification and transfer. Upon receipt of a request for transfer or disposal, the Asset Disposal Manager will give concurrent notification, when deemed appropriate, to all UNK departments and to local civic agencies and non-profit organizations of the availability of the property. When such notification is deemed appropriate, ten-business-days response time will be allowed. The property will be transferred to a responding unit with priority given first to all UNK departments on a first-come-first serve basis, and then to local civic agencies and non-profit organizations on a first-come-first serve basis. (Note:  If an offer to purchase the personal property is made, the best offer will be accepted after the above notifications and response period are complete.) In situations where an asset has little or no value, the Asset Disposal Manager may waive notifications and may dispose of the asset in the manner determined to be of the most benefit to the University.

Sale or Transfer of Computer Equipment. If excess or surplus computer equipment is to be sold or transferred, proceed as follows: 

Sale or transfer to an outside campus or agency, or transfer to an outside disposal agency. The Asset Disposal Manager or the Department must contact Information Technology Services (ITS) who arranges for periodic transfers of computer equipment to an outside agency.  ITS must make arrangements to inspect the equipment slated for transfer or disposal and to prepare it for transfer, reuse, or disposal. Due to the lack of storage availability, when the equipment is determined by ITS to be of no value to the University, ITS notes the equipment on a current list of items for disposal, and the department requesting the transfer or disposal will be asked to clearly mark and retain the equipment until ITS schedules a pick-up date. The outside disposal agency will facilitate the removal of the property from the Department.  Questions regarding the scheduled pick-up dates should be directed to ITS.

Sale to University Personnel*. In accomplishing any sale or disposal of surplus property under the provisions of this policy, no preference will be given to University personnel.

* Nebraska Board of Regents Policy RP 6.2.2

Transfer Within Same University Department There is no need to notify the Asset Disposal Manager of an impending property transfer within the same University department unless assistance from the facilities department is required to accomplish the move.