Chapter 15-500: Disposition of Property

15-510 Sponsor Requirements

Sponsor requirements for the disposition of property acquired under extramural agreements are controlling. When title to the property vests in the sponsor, the University should normally receive specific disposition instructions from the sponsor. When title vests in the University, a general rule of thumb is that the property should continue to be used for the purpose for which it was acquired as long as it is needed or useful. When no longer needed or useful, and when there are no other obligations to the sponsor in connection with the award under which the property was acquired, the property may be disposed of in accordance with BUS-29 Section XI. Contract and Grant Officers should generally not accept award terms that impose unusual or administratively burdensome disposition requirements.

15-520 University Property

Any inventorial or non-inventorial University-owned equipment that is declared surplus or excess by a department may be disposed of as outlined in Business and Finance Bulletin BUS- 38, Disposition of Excess Property and Transfer of University-Owned Property. Such equipment may be sold, traded-in,or transferred to another department on campus or at another University campus. See Section 15-550 below when the transfer involves another institution. All transfers of equipment must have prior written approval of the local Equipment Manager.

With respect to selling surplus property, a federal funding source may not be charged for an item of equipment if that same item was originally purchased with federal funds.

15-530 Government Property

Requirements for disposition of federal government Property are found in BUS-29 Section XI. B.

There are basically two ways in which the question of disposition of government property under a federal contract may arise: when the property becomes excess to the contract for which it was provided and when the contract is completed. If the property becomes excess during the life of the contract, it is screened against needs of other contracts. If there is a need, the federal Contracting Officer is asked for authority to use or transfer the equipment; if there is no need, the property is reported as excess in the manner prescribed by the Property Administrator.

Upon completion of a contract, the University will submit to the Contracting Officer a list (property/equipment report) certified as to quality and quantity of any or all items of final inventory, exclusive of items disposition of which has already been directed or authorized by the Contracting Officer. The Contracting Officer will then issue disposition instructions.

Federal requirements for disposing of Government property furnished under Federal grants are outlined in 2 CFR Section 215.33 (formerly OMB Circular A-110). (See 15-F01). The University must submit an annual inventory to the sponsoring agency at the end of the project for which the equipment was furnished, or when the equipment is no longer needed. The agency will then issue disposition instructions.

15-540 Use of Proceeds upon Sale

When the terms of the award permit the University to retain the net proceeds from the sale ofUniversity-owned personal property no longer needed, the property may be disposed of and the proceeds distributed in accordance with Business and Finance Bulletins BUS-38, Disposal of Excess Property and Transfer of University-Owned Property, and BFB A-51, Application of Proceeds From the Sale, Trade-in or Transfer of University Property. In general, net proceeds may be retained by the department releasing the property. These proceeds are considered "program income" if the property was purchased under a federal grant, and, according to 2 CFR Section 215.24 (formerly OMB Circular A-110), are covered by the rules in 2 CFR Section 215.33. (See15-F01).

15-550 Transfer of Property to Another Institution

When a Principal Investigator transfers to another institution, University-owned property acquired under that Principal Investigator's extramural awards may also be transferred in accordance with BUS-38 Section VII. D. That Section of BUS-38 provides the following criteria that must be met in order to effect such transfers:

  • the property must be available for transfer;
  • a written request to transfer the property must be made by the departing faculty member;
  • required approvals must be obtained;
  • the recipient institution must agree, in writing, to accept title, with the understanding that the property is for the initial use of the new faculty member; and
  • unless specific provisions are made in the terms of a contract or grant, transfers of property to individuals or for-profit organizations are prohibited.