APPROVED AS SP 16-60a: April 29, 2014
EFFECTIVE AS SP 16-60a: April 29, 2014
RENUMBERED TO SP 3-70c: August 25, 2016
RENUMBERED TO SP 8-81: November 29, 2016
REFERENCES: C.R.S. 24-18-101, et. seq. (Code of Ethics); State of Colorado Fiscal Rules, Rule 1-10; Board Policy 3-70, Colorado Community College System Code of Ethics; Board Policy 8-60, Delegation of Signature Authority
/ Nancy J. McCallin /
Nancy J. McCallin, Ph.D.
This procedure applies to the Colorado Community College System (CCCS or System) Departments.
This procedure defines the process for transferring or disposing of equipment. It applies to equipment that is movable and not permanently attached to a building. It excludes land, land improvements, leasehold improvements, buildings and fixtures. See System Accounting Procedure 17, Property, Plant and Equipment, for definitions of asset and non-asset classes. This procedure applies to CCCS property regardless of the asset classification.
Any item that is determined to be of no value or obsolete, must be approved for disposal through the Surplus Property Manager, as defined below.
If questions arise as to the classification of an item that should be disposed of, please contact the System Controller’s office for assistance.
For disposal of all equipment, the attached form should be completed and forwarded to the Surplus Property Manager responsible for the type of item being disposed of.
The value of equipment should be determined by the current market value of like items of like age, unless the item meets one of the specific exceptions noted in each category of equipment, below. Viable valuation tools could be eBay or similar forums if the items are sold through more focused venues. If the valuation is highly subjective, more than one source may be required to determine residual value.The appropriate Surplus Property Manager should determine the residual value of the item and the appropriate disposal method. If the item contains hazardous materials or contains data, appropriate steps should be taken by the area surplus property manager to ensure the items are disposed of properly and that any data is removed in such a way that it cannot be restored.
The appropriate surplus property manager should access the Fixed Asset Listing by contacting the CCCS Fiscal Office to determine the historical cost and funding source of the item to be disposed of.
Surplus Property Managers
Area of Responsibility
|System Controller: Fiscal Surplus Property Manager||General equipment and Final Approval|
|Director of Facilities: Facilities Surplus Property Manager||Facilities: Furniture, Vehicles, Equipment Exposed to Hazardous Materials|
As long as the item was not purchased with federal funds, it can be disposed of as soon as the Surplus Property Form (Attachment A or B) is completed, including approval by the area vice president. If the item was purchased with federal funds, follow the additional steps detailed below.
The completed form should then be routed to the System Controller’s office.
The System Controller must also ensure that each item is removed from the fixed assets records of CCCS.
All equipment items being disposed of, regardless of historical cost or residual value, require the completion of a form and approvals.
Acceptable means of disposal of equipment no longer used by a department within CCCS include:
Items that can be used by another department within CCCS should be transferred at the existing net book value, such that no gain or loss is recognized. Fiscal records will need to be updated, so the Surplus Property Form must still be completed.
When facilitating a sale, Surplus Property Managers must consult with the System Controller to address cash handling procedures and collection of sales tax. All payments must be made directly to the Fiscal Office.
CCCS considers all items not specifically addressed below with a historical cost of $10,000 or less to have zero residual value after 10 years.
Equipment cannot be purchased by CCCS employees or their families, unless a public auction or public silent auction is held. CCCS employees who facilitate such events cannot participate in bidding, nor can their families.
Under no circumstances will items be sold to individuals or institutions unless the item is made available through a public bidding process and advertised accordingly. In addition, transferring items to private entities or individuals without consideration (i.e., donations) are specifically prohibited.
All disposals of Information Technology equipment shall be coordinated through the CCCS IT department. The attached form shall be completed and forwarded to the Surplus IT Property Manager.
The Surplus IT Property Manager shall determine, based on the historical cost of the item, the original date of purchase, and the current market value of similar items, the current value of the item and the best means of disposal in accordance with the guidelines. The information used in determining residual value shall be attached to the Surplus Property Disposal form and forwarded to the Fiscal Surplus Property Manager.
CCCS considers all personal computers and laptops with a historical cost of $5,000 or less to have zero residual value after 7 years of service due to obsolescence in the information technology field.
CCCS considers all peripherals with a historical cost of $10,000 or less to have zero residual value after 10 years of service due to obsolescence in the information technology field.
All furniture items with a historical cost of $5k or more for disposal should be first routed through the Facilities Surplus Property Manager. CCCS considers all furniture with a historical cost of $10,000 or less to have zero residual value after 15 years of service.
All vehicles for disposal should be first routed through the Facilities Surplus Property Manager.
Vehicles will be disposed of through:
Small utility vehicles: If inoperable, small utility vehicles will be sold for scrap; if operable, they will be used as a trade-in, sold through an auction, or sold through eBay.
Passenger vehicles and Trucks: If inoperable, small utility vehicles will be sold for scrap; if operable, they will be used as a trade-in, sold through an auction, or sold through eBay.
State Fleet vehicles: These will be returned to State Fleet.
Any donated vehicles will be disposed of in accordance with the donor agreements in accordance within the categories noted above. CCCS considers all vehicles with a historical cost of $20,000 or less to have zero residual value after 10 years of service.
Specialized maintenance equipment includes items such as tractors, mowers, generators, sweepers and other equipment used to maintain the facilities and grounds. All specialized maintenance equipment for disposal should be first routed through the Facilities Surplus Property Manager.
CCCS considers all specialized maintenance equipment with a historical cost of $10,000 or less to have zero residual value after 10 years of service.
All equipment purchased through certificates of participation or other debt instruments shall be disposed of by completing the attached form and forwarding to the appropriate Surplus Property Manager. Final approval resides with the System Controller who is responsible for ensuring any debt covenants are considered prior to the disposal.
Any disposal of an item purchased with federal funds will be researched in cooperation with appropriate program and fiscal personnel to determine whether the awarding department placed restrictions on the disposal of the item. Any restrictions will be met.
Items donated to CCCS will be researched to ensure any donor requirements for disposal are met.
Final approval resides with the System Controller.
All items that have been exposed to or contain hazardous materials should be disposed of according to applicable regulations. If department personnel are uncertain as to whether an item has been exposed to or contains hazardous materials, they should contact the Facilities Surplus Property Manager prior to completing the form. All disposals of equipment exposed to or containing hazardous materials should be routed through the Facilities Surplus Property Manager.
All records related to disposal will be archived with Fiscal records for seven (7) years after the date of the disposal.
CCCS reserves the right to change any provision or requirement of any procedure at any time.
Please contact the CCCS Fiscal Department for the appropriate forms.