HOME & COMMUNITY Policy No.: ADM-5-180*

SUPPORT SERVICES Reviewed: Jan. 2005

-©-OF GREY-BRUCE-©- Cross-referenced: BRD-4-90*

Page: 1 of 2

SECTION: ADMINISTRATION

TOPIC: FINANCIAL/LEGAL

POLICY TITLE: SALE/DONATION OF AGENCY PROPERTY

POLICY STATEMENT

The sale of used furniture, equipment and other chattel, or donation of it to local agencies and community groups is subject to the requirements of the Ministry of Health if revenue was received for the original purchase of the chattel. All sales and donations are subject to receipt of payment that is at least equal to the fair market value of the chattel.

PROCEDURE

  1. Approval for the sale of any chattel with a fair market value of greater than $50.00 must be sought from the Executive Director of Home and Community Support Services of Grey Bruce.
  1. Approval for the sale of any chattel with a fair market value of greater than $2,000 must by sought from the Board of Directors of Home and Community Support Services of Grey Bruce.
  1. Approval must be sought from the Ministry of Health for the sale of any chattel which:

i)  was purchased with revenues from the Ministry of Health

or

if the chattel was purchased from donated funds which were specifically raised for a Long Term Care service, in which case the chattel is then considered “owned” by the Ministry of Health

and

ii)  if that chattel has a fair market value of greater than $500 and whose useful life is longer than one year.

  1. In selling any chattel which was purchased with funds donated or chattel which was donated from an individual or another agency, approval may be sought from that individual or agency, depending upon the nature and value of the chattel.
  1. Fair market value may be determined by:

i)  contacting the source of purchase for an estimate of the worth of the object

ii)  contacting a business/agency which sells similar items for an estimate

iii)  taking the original cost of the object and depreciating according to the CCA schedule from Revenue Canada.

  1. Sale of the chattel may be done internally in the agency, provided that all staff have an opportunity to bid on the object, if sale is by “Best Offer” method and that the bids received are within the fair market price range or that the price set for the object is reflective of the fair market price.
  1. Receipt for payment for money received from the sale of chattel will be processed according to accounts receivable (see policy ADM-4-10 – Accounts Receivable).
  1. Money received from the sale of chattel will be credited to the program/area from which the chattel was taken.

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