FINAL – February, 2014
Standard Operating Procedure
Subject: Disposal of OISE Capital Assets and Internal Sales of Capital Assets
Issued by: CAO’s Office
Date: February, 2014
Purpose:
The purpose of this Standard Operating Procedure (SOP) is to:
a. Establish an OISE protocol for the proper disposal of capital equipment that is consistent across all OISE departments.
b. Ensure that equipment that may be of use to other areas of OISE or UofT would not be disposed of prematurely.
c. Ensure OISE receives a fair market value for its disposed assets
d. Ensure that any disposed property be done in a responsible manner (i.e. proper hazardous materials disposal, ensure hard drive data wipe/destruction, etc.).
e. Ensure any proceeds received would be allocated appropriately.
Resources:
a. UofT Capital Asset Disposal and Internal Sale Form:
http://www.procurement.utoronto.ca/Form/capital-asset-disposal.pdf
b. UofT Swap Shop Disposal Form:
http://www.procurement.utoronto.ca/form/swap_shop_disposal.pdf
c. UofT Guidelines for Capital Assets: http://www.finance.utoronto.ca/Page42.aspx
d. Procurement Step by Step Guide for Capital Asset Disposal: http://www.procurement.utoronto.ca/how_to/capital_assets.cfm
Roles and Responsibilities:
UofT Director of Procurement: UofT’s Director of Procurement is responsible for reviewing and approving the fair market value assessment for any capital asset disposal or internal sale. The Director may also provide assistance to the selling department in determining the fair market value.
Unit Head of the selling department: The Unit Head is at all times responsible for ensuring the unit’s adherence to all UofT and OISE policies and protocols which includes this SOP. The Unit Head is responsible for ensuring optimal use of all assets assigned to that unit. It is the unit head’s duty to identify any surplus assets and to seek out potential university buyers prior to disposing the asset externally.
Business Officer (BO): The business officer is the primary administrative coordinator between the Unit, Education Commons and/or OISE Facilities and Services for the proper disposition of capital assets as laid out in this SOP. The BO is responsible for completing the capital asset – disposal & internal sale form, generate invoices or debit memo to record the sale of the non-computer capital assets.
Education Commons (EC): Education Commons is the primary department responsible for the assessment and disposal of any computer or technology related equipment. As such, EC is responsible for carrying out the following tasks: a) assist in determining the fair market value of the asset, b) assess if equipment can be re-deployed elsewhere in OISE, c) wipe/destroy any sensitive data contained in old computers, d) coordinate the asset disposal with either internal or external vendor, e) update the computer inventory system accordingly, and f) complete capital asset - disposal & internal sale form for computer/technology related items.
OISE Facilities & Services: OISE Facilities and Services (OISE F&S) will coordinate the assessment and disposal of any non-computer or non-technology related equipment. As such, OISE F&S shall carry out the following tasks: a) coordinating with the department in determining the fair market value of the asset, b) assessing if the asset can be re-deployed within OISE or UofT and, c) coordinate the asset disposal with either internal (i.e. Swap Shop) or an external vendor.
Definition:
Capital Asset: A capital asset is defined as tangible property such as land, building, and equipment and intangible property that meet all of the following criteria:
1. Have a useful life of over 1 year and a pre-tax, pre-shipment value of more than:
a. $250 for any computer or technology related equipment which includes, but not limited to cellphones, tablets, laptops, desktops, etc.
b. $5,000 for any non-computer or technology related equipment such as: desk, filing cabinets, bookshelves, furniture, etc.
2. Are held for use in the provision of services, for administrative purposes, for production of goods or for maintenance, repair, development, or construction of other capital asset.
3. Have been acquired, constructed, or developed with the intention of being used on a continuing basis.
4. Are not intended to sale in the ordinary course of operation
5. Are not held as part of the collection
Process (See Process Map):
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FINAL – February, 2014
Appendix A: Approval thresholds for the Disposal of Capital Assets:
Disposal Category / ApprovalsDisposal to a staff member or a relative of a staff member
or
Proceeds are less than fair market value / One of a Vice-President, Assistant Vice-President, Vice-Provost
and
Chief Financial Officer
Original cost less than $70,000
and
Fair market value less than $7,000 / Principal, Dean, Director, Chair or Head of Administrative Department
and
Controller and Director of Financial Services
(Fair market value is $270,000 or less
and
Original cost is $70,000 or greater)
OR
Fair market value is $7,000 to $270,000 / One of a Vice President, Assistant Vice-President, Vice-Provost
and
Chief Financial Officer
Fair market value in excess of $270,000 and not greater than $5.0 million / President (reported to the Business Board for information)
Fair market value greater than $5.0 million / Business Board
Appendix B: Approvals for Internal Sales:
Sale within a department and sale between two departments within the same faculty / Chair of the selling department
Sale between two departments in different faculties / Chair of the selling department and Dean of the selling faculty
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