DATE ISSUED: 12/23/ of 5 LDU CI1(REGULATION)-X

Transcription

1 DISPOSAL OF DISTRICT PROPERTY GENERAL INFORMATION TRANSFER OF ASSETS PURCHASED WITH FEDERAL FUNDS TEXAS EDUCATION AGENCY APPROVAL TO DISPOSE OF EQUIPMENT 1. The District Board of Education or designee may, by established District policies and procedures, dispose of real or personal property that is no longer necessary for District operation. Disposal may take the form of an on-site auction, Internet auction, recycling, or trash disposal. [See References (a), (b), (c), and (d)] 2. The District may schedule items for auction that are considered economically unusable. These include fixed assets such as surplus, obsolete, or nonrepairable properties and scrap material. A PC2 Form signed by the principal or department supervisor is used to facilitate the transfer of these items to Warehouse Operations, Furniture Services, for disposition. [See Reference (e)] Arrangements for transfer are made with the manager, Furniture Services, based on available storage space and truck schedules for pick up. No private vehicle may be used to transport District property for disposal purposes. Every effort should be made to determine if a need for the surplus property exists anywhere else in the District before a sale or trade-in occurs. The manager, Furniture Services, maintains a list of surplus property scheduled for disposal. Schools or departments may requisition any properties on the surplus list by sending a completed PC2 form to the manager, Furniture Services. Property cannot be sold by the school, given to or taken by any employee for personal use, or disposed of in any manner other than described in this administrative regulation. 3. When items purchased wholly, or in part, with federal funds are no longer serviceable or required by the District, the general manager, Materials Management, in association with the Fixed Asset Committee, or the applicable program, must adhere to any special guidelines of the program for disposition. To dispose of items, a prior written approval must be obtained from the Texas Education Agency (TEA). A list of items to be disposed of is submitted to TEA by the director, Property Management, and includes descriptions of the items, dates purchased, initial item procurement cost, and the percent of procurement cost paid with federal funds. The director, Property Management, ensures that all federal and state regulations are met before disposition of assets at public auction or through the competitive bid process conducted by Procurement Services. 4. TEA reviews the list of items to be disposed of and instructs the District to dispose of the items in accordance with established District policies and procedures. The retention of proceeds from the sale is as follows: DATE ISSUED: 12/23/ of 5

2 INITIAL ACQUISITION COST LESS THAN $1,000 INITIAL ACQUISITION COST GREATER THAN $1,000 PRELIMINARY AUCTION LISTS FIXED ASSET COMMITTEE FINAL AUCTION LIST ADVERTISING OF ON- SITE AUCTIONS a. Items with an initial acquisition cost of less than $1,000 may be disposed of and all proceeds retained by the District. b. When items with an initial acquisition cost of $1,000 or more are disposed of, the District may retain $100 or ten percent of the sale price, whichever is greater. The remainder of the proceeds is returned to TEA. 5. In order to dispose of surplus, obsolete, nonrepairable fixed assets or scrap metal, the manager, Furniture Services, creates a preliminary auction list, which he or she physically matches to the inventory. The manager, Furniture Services, sends a copy of the list to the director, Property Management, for review. Federally funded items are segregated on the list. 6. The Fixed Asset Committee was created by the Superintendent to develop rules and regulations for the efficient disposal of properties belonging to the District. [See Reference (e)] The Fixed Asset Committee is notified of the intent to dispose of surplus items. The manager, Furniture Services, schedules a date for the Fixed Asset Committee to inspect the proposed auction items. Properties, including equipment, vehicles, or furniture that have been recommended for disposal at auction will be reviewed by the Fixed Asset Committee, the general manager, Materials Management, and the manager, Furniture Services. They will determine through physical inspection and review of the records, which assets are to be sold at auction. After review, the Fixed Asset Committee may instruct the director, Property Management, to modify the auction list. 7. Furniture Services prepares the final auction lists and submits the documents to the Fixed Assets Committee for review. After review, the final auction lists are submitted to the chief financial officer. The chief financial officer submits the documents to the Superintendent for approval. No items may be added to the final auction lists after approval of the Superintendent. 8. Warehouse Operations, Furniture Services, advertises the auction in a local newspaper two weekends prior to the date of the auction. The advertisement will indicate the time, date, and location of the auction. All cost for advertising will be paid from the general fund. The advertisement guidelines are as follows: The advertisement must be a minimum of six column inches; DATE ISSUED: 12/23/ of 5

3 The advertisement must state that the District reserves the right to cancel or void any sale that has not been conducted in accordance with the terms of the auctioneer s contract; All sales will be as/where is ; Payment must be made at the time of sale, and all sales are final; All sales will be for cash, money order, cashier s check, or check with Bank Letter of Guarantee; and The District will not be responsible for any loss or damage to any article(s) sold at auction after the sale has been consummated. ON-SITE AUCTION AUCTIONEER VEHICLE AUCTION 9. All items proposed for auction will be stored in a central location the day of the auction. Federally funded items are to be segregated on the auction floor. Furniture Services, the sending department, and Finance will prepare the documents required by federal and state guidelines. The manager, Furniture Services or the director, Property Management, will retain the right to remove any items from sale at the auction if the item does not yield at least 80 percent of the predetermined sales price or if the final sale is not in the best interest of the District. An internal auditor must be present to serve as an independent observer to ensure compliance with auction procedures and must remain until all proceeds have been collected. The internal auditor will issue a written formal audit report to the chief financial officer. Auction guidelines are as follows: a. The auctioneer is obtained by the open bid process conducted by Procurement Services. The manager, Furniture Services, works with the auctioneer prior to the auction to verify that all items have been documented and have correct pallet and lot numbers on the auctioneer s coupon sales ledger. The manager, Furniture Services, provides the auctioneer with a copy of the auction lists, including a list of prices to establish a minimum bid price. b. All vehicles being sold at auction must have District emblems and license plates removed by the using department prior to the auction. The emblems are destroyed by the using department. The license plates are sent to Transportation Services, Resource Management. Transportation Services forwards the license plates and the necessary documentation to the director, Property DATE ISSUED: 12/23/ of 5

4 Management, for processing. All vehicles scheduled to be auctioned are held at one of the District s bus facilities until the day of the auction. After the sale, the director, Property Management or designee, releases the title to the new owner. SECURITY DURING AUCTION COLLECTION AND DISTRIBUTION OF FUNDS TIME LIMIT TO REMOVE AUCTIONED ITEMS REMOVAL OF AUCTIONED ITEMS ELECTRONIC AUCTION CONSULTATION c. A minimum of two District Police officers will be on duty on the day of the auction. One day before the auction, during the auction, and one day after the sale, Furniture Services and the District Police will take the necessary measures to secure auctioned property against damage, theft, or loss. However, pursuant to the auction sales agreement, the District will not be responsible for damage, theft, or loss of any item prior to the buyer picking up the item from the auction site. d. All expenses incurred for the auction will be paid out of the receipts of the auction. The District Treasury Office will collect a desegregation form and Tax Exempt Certificates from all buyers and will collect and distribute all funds obtained from the auction. A minimum of two people from the District Treasury Department will be required to process all payments. No personal or company checks will be accepted without a bank Letter of Guarantee. Monies from the auction will be collected, in full, on the day of the auction. e. A maximum time limit of five days or less will be set by the manager, Furniture Services, for the removal of all items after the auction. If items are not removed by this time, the items may be disposed of or re-auctioned. In such cases, no refund will be made to the buyer. f. The new owner assumes all risks associated with moving or loading the property from the auction location. Furniture Services personnel, if necessary, will assist in loading the auctioned items, but assumes no liability for damage. 10. An auction Web page will be secured by Materials Management to facilitate an online auction and the items for sale will be listed. A starting bid price and a reserve price, if applicable, will be assigned to each item on the lists created through a coordinated effort by Property Management, Furniture Services, and the sending department. Any items not sold on the online auction will be listed at the on-site auction. Procedures for the on-site auction will apply to the electronic auction. 11. This regulation does not require consultation. DATE ISSUED: 12/23/ of 5

5 MAINTENANCE RESPONSIBILITY 12. The chief financial officer, Finance, is responsible for maintenance of this regulation. REFERENCES: (a) (b) (c) (d) (e) Board Policy CDB(LEGAL) Board Policy CDB(LOCAL) Board Policy CI(LEGAL) Texas Education Code (c) Powers and Duties of Board of Trustees of Independent School District Form Houston Independent School District Equipment Transfer DATE ISSUED: 12/23/2010 REVIEWED: 5 of 5