Chapter 12: Disposal Authorization

Destruction of property is frequently the most appropriate method of disposal.

Destruction should be considered when property is damaged and repair is either not feasible, inappropriate, or the cost exceeds the fair market value (FMV).

Guidelines:

Any property with an FMV less than $20 that cannot be redistributed within the custodian entity should be considered for disposal.
1. Exception: Highly pilfered items and electronic equipment capable of storing data.
When contemplating disposal, consider the intrinsic value of equipment. Frequently an item may not be useful for its intended purpose (such as a desk with a broken leg), but it might still have scrap or recycling value. In this case, it is in the state’s best interest to destroy through scrap or recycling rather than paying disposal costs.
It is in the state’s best interest that disposals are conducted in the most environmentally-friendly manner. Redistribution is preferred to recycling, and recycling is preferred to trash. The goal is to minimize the state’s waste as much as possible.
The disposal of trash, scrap, or recycling (other than electronics) is an entity responsibility and as such, the entity bears any cost and collects any proceeds.
1. DOAS has contracted with a vendor to dispose of electronics (see 14.5 Electronics Disposal Vendor).
It is the entity’s responsibility to complete the destruction/disposal as soon as practical after approval is given. For audit purposes, the completed affidavit must be retained according to records retention regulations.

An affidavit of disposal (AD) permits disposal options other than destruction. Issuing the AD is required before any property disposal.

Note: All requests for disposal authorization must be received prior to destruction and disposal. Requests after-the-fact will not be authorized.

12.1 Completing an Authorized Disposal

Authorized Disposal includes these steps:

The custodian entity enters the transaction request in Asset Works, selecting AD as the method.
The entity manager approves the transaction.
Surplus receives the request.
If approved, Surplus issues an affidavit of disposal and notifies the custodian by email.
The custodian entity disposes of the property by one of the following methods:
1. Witnessed on-site destruction
2. Removal by approved vendor
The custodian entity completes the affidavit of disposal for its property inventory records.
7. The custodian entity removes the asset from its property inventory records.

12.2 Affidavit of Disposal

The affidavit of disposal (AD) provides two options for disposal -- destruction or donation:

When property is designated for destruction, it must be rendered unserviceable and disposed of in an environmentally-friendly manner). The property coordinator or custodian should check the appropriate box on the affidavit and execute the remainder of the form.
For items that are unsold, but are still serviceable, the custodian entity may elect to contact a local nonprofit (IRS 501(c)) organization and donate the property in lieu of disposal.
1. This option may also be used for equipment that has scrap value but is not physically destroyed on site. Agencies are encouraged to develop a network of nonprofits for donation and are cautioned when exercising this option to not show favoritism to any specific entity.

Prior approval from Surplus is required before destruction/disposal. See instructions for completing the form in Appendix A.