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Assets Disposal Policy
Name of Policy
Assets Disposal Policy
Policy Number
IV. A - 22
Owners
Financial Affairs
Original Policy Date
22/08/2020
Cosigners
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Last Revised Date
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Other Related Regulatory Rules Laws & Policies Next Scheduled review Date
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Associated Procedures & Forms (Attachments)
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Versioning
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Cycle of Reviews
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Purpose

This Policy directs activities to openly and transparently dispose of assets that are no longer required to be used by any Department in the University.


Statement

The disposal of any University asset must be approved by the Disposal Committee. Disposal can occur through the following methods:

1-    Transfer

A PMU asset can be transferred from one Department to another Department in PMU, or to educational institutions such as public schools, or to non-profit institutions.

2-    Cannibalization

Cannibalization is defined as the removal of parts or components from a property or equipment to be used in ways that serve the needs of the University.

3- Sale

Sale of a University asset is to be done through a competitive sale such as an auction, or by taking sealed bids.

4-    Surplus

Surplus is the asset which has been considered by the concerned Department as no longer needed. Disposal of a surplus asset is to be decided by the Disposal Committee.


Procedure
Procedure :

Step 1The concerned Department will fill up the disposal form.

Step 2–  Forward the disposal form requesting asset disposal, signed by the Department Head, to the Financial Affairs Department to add the book value for each item, and then the Financial Affairs Department forwards it to the Chair of the Disposal Committee.

Note:    If a Department wishes to salvage useful components from assets that are no longer needed then it should remove these components before the request for asset disposal is submitted to the Disposal Committee. All removed components should be reported and attached to the disposal form.

Step 3 – The Warehouse Department will receive the list of removed items, and arrange for   the transfer of any items which are useful to another Department.

Step 4 – The Chair of the Disposal Committee calls for a meeting of the Committee to decide which of the Four methods mentioned in this Policy is to be used.

Step 5 -   Based on the recommendations of the Disposal Committee and the approval of the PMU President, the Purchasing Department will take necessary actions.

Step 6 -   The Purchasing Department will submit all completed files to the Financial Affairs Department.