This policy has been established to protect Lynn University assets and to provide guidelines for the community when considering how to handle surplus property and/or to dispose of owned property. Note that some assets may be leased or on loan by vendors, thus due diligence must be exercised to determine that the asset is the property of Lynn University. All property and equipment (known as fixed assets) purchased with University funds (including unrestricted funds, grants, endowments or gifts), donated, or acquired for University use through other means are the property of Lynn University, and title remains with the University until asset disposal. The following describes the procedures individuals will follow to dispose of any owned property.
Procedures and guidelines
I. Disposal Generally
Surplus property is property either that is no longer used or for which no further use is planned. It includes all tangible assets, such as equipment, furniture, and other movable fixed assets. University surplus property may not be sold, traded, salvaged, scrapped, donated, or otherwise disposed of without prior approval from the appropriate department head and the Vice President of Business and Finance.
II. Property Acquired Through Donation or External Funding
Special rules may apply for any assets purchased or acquired with special donated funds or specific grant or contract funds. For equipment or material that was purchased with special donated funds or specific grant or contract funds, the Finance and Business Office will work with the appropriate department to determine if title to the items to be disposed of has passed to the University or if the grant/gift language contains specific disposition requirements.
III. Methods of Disposal
Effective asset management encourages recycling within the University community to control costs. When a department head seeks to declare property as surplus, the department head should first contact the Vice President of Business and Finance for advice and a determination of proper disposal procedures. Disposal of the property should be at the lowest possible cost to the University. The following methods may be considered for the disposal of surplus property:
A. Internal Transfer
Reasonable efforts should be made to re-purpose surplus items. This will be done first by consulting with the various campus offices on anticipated campus needs. Thereafter, and before initiating an alternative disposal method, the department head seeking to dispose of the property will send a brief description to the Procurement department so that communication to all departments can be made to determine if other departments may have a use for the property. For any property tagged as inventory, the Business Office should be given notice of the property transfer to another department.
B. Trade or Exchange
If the item appears to have value in the market, an effort should be made to see if the property can be traded or exchanged with University vendors or suppliers for either other property or a credit against future purchases. All such arrangements will be initiated by the department head in consultation with and documented by the Procurement department. Exceptions include trades or exchanges conducted in the ordinary course of business, e.g., excess Bookstore inventory and library books that may be routinely traded, exchanged, or returned by the respective department head without the involvement of the Procurement or Finance Office. If other opportunities exist to trade in surplus items to offset the purchase cost of replacements, these should be discussed with the Vice President of Business and Finance and properly documented for audit purposes.
If the item is deemed to have some value, it can be listed for sale and sold internally or externally. Items will typically be sold on a first-come, first-served basis at a price set by Procurement and approved by the Vice President of Finance, open for best offer at a price, sold by competitive bid, sold on consignment, or sold through other methods deemed appropriate. This may include internal sales limited to the Lynn University community, advertised to all simultaneously, and sold as indicated above. The host department in conjunction with the Procurement department will advertise for any sales and handle offers. The Business and Finance Office will manage the proceeds.
Items will be sold “as is” for pickup. If the item is sold, all sales will be on an "as is" and "where is" basis, with no warranties of any kind, express or implied, attached to the item. Lynn University will not offer written or verbal assurances regarding asset market value, condition, utility, age, expected life, or defects. All sales are final with no returns or refunds allowed. All proceeds from sales of any item will be deposited in a general institutional income account as determined by the Vice President of Business and Finance. Funds will not revert to the department from which the items were declared excess.
Items that cannot be reused internally or sold may be donated to not-for-profit organizations approved by the Vice President of Business and Finance. Donations require a written recommendation from the appropriate department head to the Vice President of Business and Finance for approval. Donations to for-profit entities are not permitted.