Equipment Disposal Procedures
Statutory Basis
The State of Kansas Surplus Property Program was designed and implemented to provide a means for State agencies to dispose of or reallocate surplus property. The program enables and encourages reutilization of agencies' surplus property to reduce expenditures for capital outlay items. It provides an opportunity for state agencies, local government units and certain limited non-profit companies to acquire needed equipment that may otherwise be difficult to obtain.
K.S.A. 1986 Supp. 75-6601 through 75-6607, the State Surplus Property Act, requires each State agency to notify Kansas Correctional Industries/State Surplus Property Center of excess or surplus property. Unless otherwise directed by the Kansas Correctional Industries Surplus Property Center (KSSP) that notification is done with a Disposition of Property form (DA-110).
Restrictions
Departments or individuals do not have the authority to dispose of any property item (including software and books) purchased with funds monitored by the State of Kansas or donated to the University. This includes the disposal of equipment manufactured by the University or transferred from another agency. Sections 13.12 and 13.13 of the WSU Policies and Procedures Manual address the proper procedures for disposal of University property.
University equipment can only be disposed of after Property Control receives documented approval from KSSP. Upon receipt of such approval, Property Control will notify the appropriate department. Copies of the approved DA-110 are available to departments upon request.
KSSP approval of local disposition of equipment by WSU, limits the methods of equipment disposal to cannibalization, incineration, disposal as trash, sale, or donation.
Disposals by sale are limited to sale to a junkyard per K.S.A. 68-2202, or sale to the public by advertised sealed bid, public auction or highest phone bid. Sales to businesses or individuals other than these sales types are prohibited. Gifts to businesses or individuals are also prohibited.
KSSP approval of local disposition by WSU does allow donation of equipment to Federal Internal Revenue Code section 501(c)(3) not-for-profit organizations and participants in the Federal Surplus Property program.
Procedures
Departments should refer to WSU Equipment Transfer Procedures and Instructions for Completion of Transfer of Property Form for instructions about transferring property to the Physical Plant Warehouse for disposal.
The following types of equipment disposition require specific procedures:
Equipment Cannibalization. KSSP considers cannibalization of equipment and use of its parts on other equipment as disposal. Therefore, KSSP approval is required before equipment may be cannibalized. Departments wishing to cannibalize equipment must notify Property Control so that a DA-110 can be filed requesting KSSP approval.
Equipment Trade-In. KSSP approval is required before equipment can be traded in on new equipment. KSSP's concern is that the trade-in allowance exceeds what KSSP could receive from
the sale of the trade-in equipment. Departments wishing to trade in old equipment
for new equipment must notify Property Control of their intentions in writing at Campus Box 38. This notification must be accompanied by documentation on the new equipment vendor's letterhead of the amount allowed for trade-in
of the old equipment.
Equipment Replacement. KSSP approval is required when equipment is replaced under warranty so that the replaced
equipment may be removed from equipment inventory records. Departments must notify Property Control of equipment being replaced under warranty
so a DA-110 can be filed for that approval.
For each of the above types of disposition requests, Property Control will complete the DA-110 and forward it to the department for the department head's signature. The department should then forward the DA-110 to the Office of the Vice President for Administration and Finance for further approval. As soon as the DA-110, with the appropriate University signatures, is returned to Property Control, it will be mailed to KSSP in Topeka. If time is critical, Property Control will fax the DA-110 to KSSP. A return fax showing KSSP's approval is usually received within 24 hours.