Equipment Disposition Procedure
An Equipment Disposition Form (EDF) should be completed by departments and forwarded to Equipment Accounting for approval before any action is taken regarding equipment.
All equipment disposals are reviewed with respect to original funding sources that may affect the disposition of the equipment. Equipment items purchased with grant funds must be approved by Grants & Contracts Accounting prior to final disposition. The Equipment Accounting Department secures this approval upon submission by the department of an Equipment Disposition Form.
Below is an explanation of the types of actions that should be reported on the EDF. The back of the form contains instructions on how to complete the form.
Move/Transfer - (Transaction Code 1)
Select this code if equipment is being moved to a different location and/or if it is being transferred or sold to another UAB department. Note that if the equipment is being transferred or sold to another UAB department, an authorized signor for the receiving and relinquishing department must sign the form before routing it to Equipment Accounting.
Storage - (Transaction Code 2)
Some departments have reserved storage space in UAB warehouses. Select this code if equipment is being moved to this assigned space.
Surplus - (Transaction Code 3)
Select this code if equipment is no longer needed by the department and it should be sent to the Surplus Warehouse or if it is going to be sold through the sealed bid process. There are no "giveaways" of UAB property to any organizations no matter how noble their purpose. If items sent to the warehouse are not transferred to another UAB department or state institution, they will be sold at auction. Any sale of UAB property must be through a competitive bid process per State law. Whether this is through a public auction conducted at the surplus warehouse or through sealed bids depends largely upon the nature of the equipment and the department's preference. Transfers to other state institutions are permissible. See transaction code 7 below.
Surplus Warehouse - Complete the EDF by indicating the description of the equipment, property number, serial number, working condition code (if known), and current location. Indicate, by checking the appropriate box on the form, if the UAB Movers will move the equipment to the Surplus Warehouse. The Movers will not transfer surplus to the warehouse without an EDF that is approved by Equipment Accounting.
On occasion, a department may transport surplus directly to the warehouse without utilizing the UAB Movers. This is permissible with the understanding that it will be the department's responsibility to unload and transport the surplus into the warehouse. In these instances, the department must be sure that the EDF is signed by an authorized signor for their organization before taking the surplus to the warehouse. Otherwise, the Surplus Warehouse will not accept the items.
Note: All surplus items should be sent to the warehouse for disposal. When sending items to surplus, please send any associated parts and operating manuals. Remove any papers or supplies from cabinets that should not go to surplus. Public auctions are held on a regular basis to dispose of UAB surplus that cannot be utilized on campus. Anyone wishing to attend the auctions should call (205) 934-3344 for additional information.
For the protection of UAB staff and the public, any biohazardous or radioactive equipment must be cleared through the Occupational Health and Safety Department (934-2487) before being sent to the Surplus Warehouse. Surplus not cleared by Occupational Health and Safety will not be picked up by the movers or accepted into the warehouse. Sensitive information should be wiped from the PCs' hard drives prior to sending them to the warehouse. Hard drives should remain in the PCs because the surplus warehouse is the legal disposal point for scrap and surplus items if they are not sold by sealed bid.
Sealed Bid - To sell equipment items by sealed bid, an EDF must be completed declaring the items surplus for sealed bids. The EDF should include the description, property number, serial number, working condition code, and current location of the items. It should be signed by an authorized signor. The Equipment Accounting Department will process the form to ensure the equipment is eligible for sale. Donor or grant restrictions may prohibit the sale of the items. After the equipment is approved for sale, Equipment Accounting will return a signed copy of the EDF to the department. The items for sale will remain in the department's possession and must be available for inspection by potential buyers. Vehicles to be sold by sealed bid are handled by Automotive Services as noted below. However, a fully approved EDF is required prior to contacting Automotive Services.
To process a payment to advertise the equipment in the newspaper, the department should complete a Purchase Order Requisition in Oracle using object code 8604580; SURPLUS PROPERTY ADV. Procurement recommends an amount of $250.00 for the requisition. A letter of intent to place equipment out to bid addressed to Procurement, including the name and address of any potential bidders that should be notified, and the signed EDF should be faxed to Central Scanning as documentation for the requisition. Please note that the PO requisition will not be approved unless this documentation has been faxed. Procurement will contact the selling department with the bid information. Procurement will place the newspaper ads, mail notices to prospective buyers, accept bids, and set a time and date for bid opening. After the sealed bids are received, they will be opened and reviewed at the appointed time and the information will be presented for departmental approval. At this point, the department may award the bid to the highest bidder or reject any and all bids. If awarded, Procurement will notify the bidder to send payment. After payment is received, the equipment item will be released to the purchaser. Proceeds from the sale are deposited back to an appropriate account in the selling department. Equipment Accounting will delete the equipment from the department's inventory.
NOTE: According to the UAB Vehicle Management Program Manual, Section 4.3 Acquisition and Disposition of Vehicles:
6. Disposition of Vehicles.
Trade-In (Transaction Code 4)
- Departments/units desiring to turn in a vehicle as surplus must contact Automotive Services at 934-2174.
- Surplus vehicles are sold by sealed bid auction through UAB Procurement. Automotive Services receives a processing fee for each vehicle with the remaining sale proceeds going to the department/unit to which the vehicle was most recently assigned. Employees of Automotive Services and the department/unit to which the vehicle was assigned are prohibited from bidding.
To trade-in UAB equipment for other UAB equipment, departments must complete an EDF and indicate "Trade-In". The Equipment Disposition Form should be completed indicating the description, property number, serial number, and current location of the equipment. The form should be sent to the Equipment Accounting Department in room 525 of the Administration Building (AB). After Equipment Accounting approves it, the department's copy will be mailed back to them. The approved EDF and a completed Equipment Purchase Information Form (EPI) for the new equipment must be faxed in with other supporting documentation for the new purchase. All requisitions referencing a trade-in of equipment will not be approved unless the approved EDF and EPI form are included in the back-up documentation.
Certain factors such as donor or grant restrictions may prohibit the trade-in of equipment. If grant purchased items are being traded-in, the process will take longer because Grants and Contracts Accounting's approval is required.
Lost /Stolen - (Transaction Code 5)
When equipment is lost or stolen, it should be reported to the Equipment Accounting Department. The EDF should include the description, property number, serial number, and location at the time of loss or theft. If the item is believed to be stolen, the UAB Police Department should be informed and a police report filed. Please list the police report case number on the disposition form or attach a copy of the police report to the disposition form.
If Equipment Accounting receives a police report, the equipment will be noted as stolen in Sunflower and removed from the department's inventory. All other equipment will be coded "Temporarily Misplaced".
Scrapped/Cannibalized - (Transaction Code 6)
Any equipment that will be cannibalized for parts should be reported to Equipment Accounting on an Equipment Disposition Form including the description, property number, serial number, and current location. Complete the form indicating "scrapped/cannibalized" for the item and return it to Equipment Accounting. After the piece of equipment is cannibalized, send it or any unneeded parts to the Surplus Warehouse. Please call Equipment Accounting at 934-5144 for more instructions.
Release of Ownership - (Transaction Code 7)
All UAB property is considered by the State of Alabama to be State property. UAB is therefore limited in terms of transferring ownership of UAB property to other institutions. UAB property includes: 1) capital and noncapital items purchased, in total or in part, from UAB funds, 2) items donated to UAB, 3) items transferred to UAB on active grants/contracts, and 4) any property for which ownership is otherwise transferred to UAB. This includes purchases from federal or nonfederal grant/contract accounts. This applies to all UAB property, both University and Hospital.
The State of Alabama only permits UAB to transfer title to State property when we are legally required to do so. Such a transfer is usually associated with a UAB faculty member resigning from UAB to take a job with another university. In other cases though, the principles and procedures are fundamentally the same.
No UAB property may be physically removed from UAB for transfer of ownership without an official UAB authorization letter from Beverly Matlock, Director of Audits and Reporting. Initiate the request for release of ownership early enough to obtain all approvals well before the equipment is scheduled to be moved. This transfer process maybe quite lengthy, particularly if a large number of items are involved or if purchase information is not readily available. Experience suggests that you should initiate the process at least one month before the actual physical move is scheduled.
Transferring Equipment Affiliated With an Active Grant
If a transfer involves a UAB faculty member resigning from UAB to take a job at another institution, UAB is only permitted to transfer ownership of property to the new employer when it is established that:
(1) the property was purchased exclusively by a grant;
(2) that particular grant is still active;
(3) that grant agreement legally requires us to relinquish title to the property; and
(4) the sponsor is legally transferring that particular grant to the other institution.
Click here for a detailed explanation of the procedures applicable to transferring ownership of UAB property.
Transferring Surplus UAB Property to Other State Institutions
UAB surplus property can be transferred to other state institutions such as local public schools and other state agencies. However, certain procedures must be followed. The items must first be declared surplus and moved to the Surplus Warehouse. The items are then available to the UAB campus and other state institutions. The institution must request, in writing to the UAB Equipment Accounting Department, the specific items they want to transfer from UAB surplus. The written request should be on the institution's letterhead. The requesting institution will be required to pay a transfer fee for the items they are to receive. Address specific questions about transferring surplus property to UAB departments or state institutions to the Surplus Warehouse at (205) 934-3344.
Donation to UAB - (Transaction Code 8)
When equipment items are donated to the University, including HSF or Health System donations, you must notify the department's Accountable Equipment Officer. Then the department's Accountable Equipment Officer is responsible for sending an email to notify both the Equipment Accounting Department (firstname.lastname@example.org) and the Gift Records Office (Brian Hagan email@example.com). Include in the email:
the donor's legal name, description of the equipment donated, the planned location of the equipment, the UAB organizational unit to which the gift was made, and a contact person name, phone number, and e-mail address.
A letter from the donor listing the equipment items donated with a dollar value (either estimated or appraised by the donor) should be attached to the Equipment Disposition Form. Attach copies of any other information that would be helpful in recording the equipment.
Transfer to UAB - (Transaction Code 9)
Capital equipment that will be transferred to UAB via a grant, contract, or some other means should be added to UAB's equipment inventory. It is the responsibility of the recipient department to notify Equipment Accounting of any equipment received. Include any pertinent correspondence from the granting or contract agency. We will need a full description of the equipment, the serial number, location, and an estimated current value. If there are any questions, please call the Equipment Accounting Department at 934-5144.
Other - (Transaction Code 10)
For all other equipment transactions that are not covered by codes 1 - 9, use transaction code 10.