No property shall be removed from University custody without first obtaining the necessary approvals outlined in the procedures below.
Only equipment for which the University holds clear title can be disposed of without the written permission of the title holder. Departments are responsible for verifying title on all sponsored funded equipment.
Disposals of Gifted/Donated equipment must first be cleared by Capital Accounting. This event may cause a financial impact to donors if the equipment is disposed within three years of receipt. Failure to follow this rule may result in loss of tax deduction for the donor. Please check with Capital Accounting prior to determine if UCSF needs to issue an IRS Form 8282.
UCSF Surplus offers equipment for sale to the UCSF campus and any equipment valued in excess of $50,000 must be offered to all other University of California locations, prior to being available for public sale. When it has been determined that the excess material is of no immediate use within the University system, it may be disposed of in one of the following ways, whichever is considered to bring the highest net benefit to the University:
Methods of Disposal
Disposal through Logistics-DSM
Capital Accounting reviews and approves requests for disposal of capital assets through Surplus. UCSF Logistics-DSM Services coordinates the physical removal and disposal, in accordance with best business practices and environmental safety and sustainability standards. Contracting a third party vendor to handle University equipment is strictly prohibited.
Inventorial equipment should not be sent to Surplus without EIMR approval by Capital Accounting. To request the disposal of a capital asset, the Department Asset Custodian should complete the following:
- Departments must receive agency approval for the equipment purchased with extramural funds prior to transferring or loaning equipment off of UCSF premises, or prior to selling, discarding, or dismantling the equipment. Attach agency approval to the EIMR form.
- Complete an Equipment Inventory Modification Request (EIMR) form itemizing the equipment to be removed. Capital Accounting will approve the request and an EIMR identification number will be issued to the Department Equipment Custodian.
- After you receive the EIMR approval and reference number, submit a Capital Asset Surplus Form online to Logistics-DSM. Make sure to include the assigned EIMR reference number in the field EIMR confirmation number and all property tags scheduled for pickup, and ensure that tags are affixed to the equipment.
- Logistic-DSM Services will manage confirmation of pickup for requests with an EIMR number. Once Capital Accounting receives the confirmation, only then can the equipment be removed from the department’s inventory.
An "in-place sale" occurs when a campus department assumes the task of arranging for the sale of excess equipment under its custody in lieu of having UCSF Logistics-DSM remove and dispose equipment.
Submit an EIMR as soon as you identify equipment for a possible sale. Approval by Capital Accounting is required before an in-place sale can be conducted. Once approval has been received, the department must contact UCSF Logistics to approve and administer the sale. Upon completion, UCSF Logistics will notify Capital Accounting, and the equipment will be removed from inventory.
This is conducted through a purchase order for acquisition of new equipment. The department must include the existing asset’s tag number on the requisition. It is also helpful to have the quote or invoice reference the serial number and tag number of the asset involved with the trade-in.
In order to be considered a trade-in, the vendor must negotiate a trade-in credit. If there is no credit the equipment must be disposed through UCSF Surplus.
Submit an EIMR at the time of creating the requisition and prior to issuing the Purchase Order. The vendor may not remove equipment without an approved EIMR.
Donations are only allowable if the market value of the materiel is below the costs required for handling, record keeping, storage and other expenses associated with trade or sale; and the transfer to a non-profit institution or group would be in the best interests of the University and serve the public good. Contact UCSF Logistics-DSM at [email protected] to review all requests.
All donations require a written request from the receiving organization and prior review and approval in writing by the Department Head, Dean, and final approval by the Associate Vice Chancellor of Supply Chain Management.
Custodians will submit the form EIMR-Other to Capital Accounting with all the documented approvals above, as well a written letterhead by the receiving institution confirming the arrival of the donated property. Capital Accounting will approve the EIMR and dispose of the equipment from the department’s inventory.
Sale/Transfer in Conjunction with Faculty Transfer to an Outside Institution
Applies to equipment during a move by a faculty member or Principal Investigator (PI) to another institution, including between different University locations, and applies to all University-owned property, regardless of funding source. No equipment may be removed before the completion of the following policy and procedures defined in BFB-BUS-38.
University-owned equipment shall always be sold to the recipient institution at fair value and requires all necessary approvals prior to removal. Departments must coordinate with UCSF Logistics-DSM. Refer to the following procedures:
- In the case of sponsored funded equipment, the department must confirm that the University has clear title to the equipment.
- The departing PI or faculty member must request in writing and obtain approvals, that must include:
- List of assets to be sold (property tags, acquisition date, description, funding source, and original cost),
- The reason for the sale,
- Name of the institution to which the property shall be sold,
- Signed approval each of the Department Head and the Dean.
- Submit an EIMR to Capital Accounting.
- Coordinate with UCSF Logistics to obtain the Fair Market Value used for the sale price and obtain a purchase order or equivalent document issued by the recipient institution. As appropriate, a standard University waiver of liability and hold harmless agreement, signed by an appropriate officer of the recipient institution, may be required as part of the purchase process.
- Sale of property to individuals or for-profit organizations is prohibited.
- Logistics accepts and records payment.
- Obtain confirmation on written letterhead by the receiving institution, confirming the arrival of the transferred property in order for Capital Accounting to remove the equipment from the department’s inventory.
Except where prohibited under the terms of an award (open or closed), or in cases where an open award is relinquished to the recipient institution, the University reserves the right to disallow no-cost transfer requests and sell all property to the recipient institution at fair value.
Under exceptional cases, a no-cost transfer may be completed with proper approvals. A no-cost transfer only applies to sponsor funded equipment acquired under a government, state, or agency award. The following procedures apply (in addition the steps outlined above):
- Unless specific provisions are made in the terms of an award, transfer of property to individuals or for-profit organizations is prohibited.
- If purchased under extramural funds, ensure that the title vests with the University and the terms of the award do not prohibit transfers to another institution.
- Obtain additional, exceptional approval from:
- Office of Sponsored Research (in the case of open awards),
- Chief Procurement Officer.
- The recipient institution must agree, in writing, to accept title, with the understanding that the property is for the initial use of the new faculty member. This agreement may be obtained via a standard acceptance form signed by an appropriate officer of the recipient institution.
- Submit an EIMR. Capital Accounting must verify all the approvals have been obtained before removing equipment from the department’s inventory.
Proceeds from the Sale of Equipment
UCSF Logistics-DSM ascertains the most financially advantageous means of disposing of the asset. If equipment is sold, proceeds realized from sale are distributed as follows:
- The first $500 is retained by Logistics-DSM to defray administrative, transportation and warehousing costs
- For an amount in excess of $500, Logistics-DSM will deduct associated expenses (e.g., used vehicle advertisements). The remaining amount, net of the associated expenses, is credited to a Fund-Dept ID selected by originating department. Refer to Supply Chain Management (SCM) Logistics for details.
Upon notification of agreement completion or termination involving Government inventorial equipment or other assets, whether furnished or acquired, the following actions will be promptly performed by, or under the direction of, Capital Asset Management:
- Physically inventory asset for disposal purposes, if requested by the Contracting Officer or other authorized representative
- Investigate, report, and resolve LDDT (Lost Damage Destruction and Theft) cases
- Report excess/residual Government inventorial equipment or other assets where disposition instructions do not exist in the agreement
- Comply with disposal instructions and adjust asset record accordingly
- Submit final report, as needed
- Issue asset closeout certification