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Asset Management
7. Disposal of Assets
7.1.Approval To Dispose
7.2.Methods Of Disposal
7.3.Advertising
7.4.Sale Of Assets Valued less than $2,000
7.5.Sale Of Assets Valued $2,000 to $5,000
7.6.Sale Of Assets Valued More Than $5,000
7.7.Asset Written Off
7.8.Transfer Of Assets To Other Organisations
(i) Assets For Current Research Projects
(ii) Other Assets
(iii) Division/Office/Department Responsibilities
7.9.Transfer Of Assets Within The University
7.10.Disposal Of Motor Vehicles
(i) Vehicles To Be Auctioned
(ii) Vehicles To Be Traded In
7.11.Theft Of Assets
7.12.Reporting Of Disposal of Assets (Sale, Transfer and Written Off)
7.13.Processing Of Disposal
7.1 Approval to Dispose of Capital Assets
Any capital asset (as defined in section 1.1) to be disposed of by way of sale, auction or dumping requires prior approval in writing under the following delegations.
The value used in determining the level of approval needed is the written-down value of the item. Approval is required even when the written-down value has reached zero.
Authority |
Approval limit in any one case up to |
University Council |
Unlimited |
Finance Committee |
$1,000,000 |
Vice-Chancellor |
$500,000 |
Deputy Vice-Chancellor (Admin.) |
$200,000 |
Director, Financial Services |
$50,000 |
(Source: Council Resolution 92/134, 28 Aug 1993)
7.2 Methods Of Disposal
Assets may be disposed of by the following methods:
- Direct sale by the Division/Office either internally or externally
- Sale by auction.
- Disposal by scrapping or dumping where the asset has little or no resale value
- Transfer to another Division/Office/Department of the University
- Transfer to another external organisation.
NOTE : Motor vehicles may only be disposed of by way of auction or trade-in
7.3 Advertising
When an asset is to be disposed by a Division/Office/Department by sale, auction or transfer:
- The item should be advertised at a reasonable selling price recognising depreciation and market values. You may contact the Asset Management or Purchasing Sections to determine depreciated values and current market prices.
- If an item has been advertised for sale on three occasions and fails to attract a buyer, the Division/Office/Departmentmay dispose of it by dumping.
- Report the disposal as required.
7.4 Sale of Assets Valued Less Than $2,000
Assets (or groups of assets) valued at less than $2,000 can be disposed of by direct sale.
The Head of the Division/Office/Departmentis responsible for ensuring that there is an arm's length transaction between the seller and the buyer, and for approving the sale in writing.
- Advertise the items for sale in publications such as Staff News.
- If the Head of Division/Office/Department requires it, place advertisements in outside newspapers.
- The Division/Office/Department must record acceptance of the highest offer or advertised price.
- Issue an official University receipt to the purchaser upon receipt of payment for the asset. Sale of second hand equipment by the University is subject to GST. A tax invoice must be issued within 28 days, if requested by the purchaser.
- Report the sale by completing the Asset Data Form and return it to Asset Management Section. Use the Asset Data Form. (Excel 78kb)
7.5 Sale Of Assets Valued $2,000 to $5,000
- Asset valued $5,000 and above are capital assets. Written recommendation is required from the Head of the Division/Office for the disposal of a capital asset irrespective of the written down value.
- For sale of assets or groups of assets valued between $2,000 and $5,000, the Division/Office/Department must ensure that sale is by competitive process by seeking written quotes from prospective buyers. Generally this requires three tenders to be obtained.
- Report the sale of capital assets by completing the Asset Data Form and return it to Asset Management Section Use the Asset Data Form. (Excel 78kb)
7.6 Sale Of Assets Valued More Than $5,000
- Prior to any negotiations for sale, contact the Director or Deputy Director of Financial Services to agree on the appropriate disposal method. For high value assets, the calling of tenders for the sale of the asset is required.
- Report the sale by completing the Asset Data Form and return it to Asset Management Section. Use the Asset Data Form. (Excel 78kb)
7.7 Asset Written Off
- A written request is required from Head of Division/Office to write off assets. This applies to capital as well as attractive items.
- A bimonthly list of capital asset recommended for write off by Head Division/Office is submitted to the Director, Financial Services for approval. The approved list is submitted to the Finance Committee of the Council annually.
- Report the write off by completing the Asset Data Form and return it to Asset Management Section Use the Asset Data Form. (Excel 78kb)
7.8 Transfer Of Assets To Other Organisations
All assets purchased from funds administered by the University are formally the property of the University except where an agreement to the contrary is part of the conditions associated with a particular contract or grant.
(i) Assets For Current Research Projects
When a current research project is transferred to another external organisation, it is possible for the assets to be transferred to the external organisation.These conditions apply:
· The particular grant or contract must contain a condition that these assets are not the property of the University.
· The assets must have been purchased for the project using external research funds.
· Agreement must be reached between the University and the other institution. The Director, Financial Services and Bursar and the Deputy Vice-Chancellor (Research) are delegated to commit the University in such negotiations.
(ii) Other Assets
All assets purchased from funds administered by the University (except for current research project assets described above) are the property of the University and can only be transferred to another organisation when the following conditions are met:· The Head of the Division/Office certifies that the asset is not required for use within the University by other members of staff in their research or other professional duties.
· The Director, Financial Services and Bursar or the Deputy Vice-Chancellor (Research) approves the transfer.
· The Director, Financial Services and Bursar or the Deputy Vice-Chancellor (Research) has negotiated an agreed price for the transfer with a counterpart at the other organisation.
(iii) Division/Office/Department Responsibilities
It is the responsibility of the Head of the Division/Office to:
- Ensure that the relevant Deputy Vice-Chancellor's approval is given in writing before the transfer.
- Notify the Asset Management Section so the asset register can be updated by completing the Asset Data Form and return it to Asset Management Section. Use the Asset Data Form. (Excel 78kb)
- Ensure that any proceeds from the transfer are paid into the appropriate account.
7.9 Transferring Assets Within The University
- Advise Asset Management through the Asset Data Form and return it to Asset Management Section. Use the Asset Data Form. (Excel 78kb)
And emailed to the Division or Office, if the transfer involves a change in financial ownership
- When the transfer is only of physical location from one Division/Office to another, without change of financial ownership, the Division/Office advises the Asset Management Section through the Asset Data Form and return it to Asset Management Section. Use the Asset Data Form. (Excel 78kb)
7.10 Disposal Of Motor Vehicles
The Purchasing section disposes of University motor vehicles when they are no longer required. Disposals are arranged through t the University's selected auctioneer or, occasionally by trade-in. The disposal of a motor vehicle often follows on from the purchase of a new vehicle.
(i) Vehicles To Be Auctioned
To arrange the auction of your vehicle:· Contact the Purchasing section for information
· Send a memo to Purchasing requesting that they arrange disposal of the vehicle and indicating:
· Expected reserve price
· University account name and code into which proceeds should be credited
· Obtain a Vehicle Inspection Report (Pink Slip) which indicates whether or not the vehicle is roadworthy. The Manager, Financial Accounting, x7207, can supply you with a copy of the registration papers if you need it to obtain your Vehicle Inspection Report.
· Deliver the vehicle at the agreed time to the University Central Store.
If a vehicle is to be auctioned, it is recommended that:
· Any minor repairs be made prior to sale
· Any items that are required for the replacement vehicle be removed or transferred to the new vehicle.
· This includes radio wiring and leads, driving lights, bull bars and tow bars.
· Cracked or broken windscreens or windows be replaced. The University insurance policy covers these replacements; claims can be made through the Insurance section x7206.
· The vehicle be delivered in a neat and tidy condition.
(ii) Vehicles To Be Traded In
If a vehicle is to be traded in:
- Obtain two written quotes from prospective suppliers. These should be fixed price quotations for the period required to supply a replacement vehicle.
- Obtain a Vehicle Inspection Report (Pink Slip) which indicates whether or not the vehicle is roadworthy. The Manager, Financial Accounting, x7207, can supply you with a copy of the registration papers if you need it to obtain your Vehicle Inspection Report. Forward the documents to the Purchasing section for consideration.
7.11 Theft Of Assets
When you discover that a University asset has been stolen or destroyed, you should take immediate action.
- If the theft or destruction has occurred on campus, contact Security Services x7112. They will contact the police if necessary.
- If the theft or destruction has occurred off campus, notify the police and then inform the University Security Services (02) 9850-7112.
As soon as possible:
- Notify your immediate superior or the head of your Division/Office/Department.
- Fill in the Asset Disposal Form and forward it to the Asset Management Section of the Office of Financial Services.
- Contact the insurance officer x7206.If an insurance claim is possible, fill in a Preliminary Insurance Report form.
7.12 Reporting Of Disposal Of Assets ( Sale , Transfer And Asset Written Off)
- When your Division/Office/Department has disposed an asset (whether by sale, auction, transfer or dumping), complete the Asset Data Form and return it to Asset Management Section. Use the Asset Data Form (Excel 78kb) on disposal and return it to the Asset Management Section of the Office of Financial Services. The Asset Management Section prepares an annual report to the Finance Committee of Council on all capital assets disposed during the year
7.13 Processing Of Disposal
Based on the bimonthly advice from Divisions/Offices/Departments, the Asset Management Section processes the sale and assets written off bimonthly through the Disposal Processing and Write off Processing function in the fixed asset system. The financial transactions on disposal of capital assets are generated by the fixed asset system for posting to the general ledger.