Where an asset recorded on the fixed asset register is disposed of to a member of staff (either for a price or at nil cost), is sold to a third party or is scrapped, this must be authorised on an Equipment Disposal Form. This form must be used by all departments. This form provides the authority for and should be completed prior to a disposal.
Before an item is scrapped, consideration should be given to whether it has a resale value.
Once a disposal form has been authorised, the item can be disposed of and the asset register updated.
Stores, furniture and equipment deemed surplus to requirements may be disposed of subject to the following:
- <start_a>Where the resale value is less than £1,000: the Equipment Disposal Form should be authorised by the budget holder and the Head of Department, who shall inform the Director of Finance.
- Where the resale value is £1,000 or more and is less than £2,000: the Equipment Disposal Form should be authorised by the budget holder, the Head of Department and the Finance Director.
- Where the resale value is £2,000 or more: the Equipment Disposal Form should be authorised by the budget holder, the Head of Department and the Finance Director with final authorisation from the Finance Committee.
Disposal forms should be retained in the department for at least two years after the end date of the financial year of disposal.
Equipment purchased using funds from external organisations may remain the property of that organisation. The advice of the Finance Office should be sought prior to making any arrangement for disposal of such property.
For any sale of equipment, once the disposal form has been approved, a sales order should be raised by the department. Sales of equipment items should be coded to the relevant subproject and account code 4710 should be used.
VAT may be chargeable on sales and advice should be sought from the Finance Office before disposal.
The College cannot exclude or avoid liability for personal injury if it sells second hand equipment. A judgement will have to be made in relation to any sale as to whether there is any real risk of the item causing injury. If so, the likely benefit to be gained by selling will need to be set against the risk.