C101: Disposal of College Assets

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Policy Details

Corporate Operations Policies C1: Finance and Purchasing

Effective Date

May 27, 2015

Next Review/Revised Date

May 27, 2020

Reference Committee

Policy Purpose

The purpose of this policy is to provide a fair and consistent process for disposal of College assets that maximizes proceeds to the College. This policy does not apply to real property, which is acquired or disposed only on approval from the Board of Governors.

2. THE POLICY

The Policy Sponsor develops, maintains and implements standards and guidelines as are necessary to operationalize this policy and achieve its purpose.

3. REFERENCES

Board of Governors policy D-15: Asset Policy
P207: Employee Code of Conduct

4. ADDENDA

Procedure A: ASSET DISPOSAL PROCEDURE
Form 1: FIXED ASSETS - REQUEST FOR DISPOSAL OR RE-DEPLOYMENT

Addendum: Procedure A: ASSET DISPOSAL

Issued by: Manager, Purchasing and Payment Services

Effective: 2015-05-27

1. PURPOSE

The purpose of this document is to elaborate the process for proper disposal of College assets.

2. DEFINITIONS

Asset: An item that meets the following criteria: it is recorded on the College asset ledger, its purchase price is $5,000 or greater, and its useful life is greater than one year.

Real Property: Land or building(s)

Disposal: The sale, exchange, trade-in or any other form of surrender whether for compensation or not.

3. PROCEDURE

3.1. The Manager, Purchasing and Payment Services is responsible for ensuring there is a fair process for the disposal of college assets.

3.2. A proposal to dispose of an asset arises either from a declaration of the item as surplus to the needs of the area in which it is normally in use, or the need to replace the item because of factors such as obsolescence or high cost of maintenance. The administrator responsible for the asset is normally the decision-maker to declare an item as surplus or to replace it. Such a proposal is initiated by submission of a completed REQUEST FOR DISPOSAL OR RE-DEPLOYMENT (See Form 1 attached).

3.3. Purchasing and Payment Services determines the method of disposal of surplus assets. When it is determined that surplus assets may have a useful role elsewhere in the College, the decision to reassign the use of such assets is based on an assessment of College priorities. Such internal reassignment is considered as a re-allocation of resources. Before reassigning assets, consideration is given to issues of functional obsolescence and/or high maintenance costs.

3.4. The proceeds from disposal outside the College are normally returned to general College funds. However, if an item is marked as disposal due to its replacement, the proceeds of that disposal may be used as a contribution towards the cost of replacement with the approval of the Manager, Purchasing and Payment Services.

3.5. Purchasing and Payment Services has the authority to donate certain items marked for disposal in order to build community linkages and promote college values.

Addendum: Form 1: FIXED ASSETS - REQUEST FOR DISPOSAL OR REDEPLOYMENT