AVERT Policies and Procedures
1100 1.0 PURPOSE 3.1. PURCHASING AGENT - The Chairperson of the Procurement Committee, who is responsible for the disposition of surplus AVERT personal property. 3.2. ORGANIZATION - Any Member Team, District Representative, Committee or other subdivision authorized by the Board, within the State of Utah whose operations are funded by AVERT. The "organization" is the standard term to reference subdivisions of the AVERT Board. Financial policies of AVERT provide that accounting, budgeting and fixed asset information be maintained by "organization." Each AVERT subdivision is assigned a unique "organization" number that is maintained in the AVERT Financial System. 3.3. PROPERTY - Any tangible supplies, materials, or equipment to which Avert has acquired title by means of purchase, donation, grant, exchange, or any other lawful means of acquisition. 3.4. PERSONAL PROPERTY - All property which is not considered real property. All AVERT personal property shall be subject to these provisions, regardless of the means of acquisition. 3.5. REAL PROPERTY - Land, and buildings or structures, permanently affixed thereto. 3.6. SURPLUS PROPERTY - Personal property which is no longer needed by an AVERT organization for the performance of its duties. 3.7. SCRAP - Personal Property for which there is no residual value beyond the value of its material content. 3.8. PROPERTY TRANSFER - A two-part transaction involving 3.8.1. the physical movement of personal property from one AVERT organization to another and 3.8.2. the accounting functions which transfer accountability for the property from the one AVERT organization to the other. 3.9. FORM 1100 HR - The AVERT form that is used to record the disposition and transfer of personal property on the fixed asset records of AVERT. 3.10. SURPLUS SALE - A method of disposing of surplus personal property which is not needed by any AVERT organization. Such disposal is generally to the public-at-large, and may take the form of a sealed bid sale, a public auction, a public sale or a negotiated sale. 3.11. STORE(S) - The facility which houses the bulk of personal property, cache supplies and all other incoming and outgoing material handled by the Procurement Committee. 3.12. ACCOUNTANT - The AVERT organization with the responsibility to maintain the fixed asset accounting records by Fund, Agency, and Organization for individual personal property items with an original cost of $500 or more. 3.13. PROPRIETARY FUND - A proprietary fund is used to account for AVERT activities that are similar to activities that may be performed by a contracted enterprise. There are two types of proprietary funds: corporate funds and internal service funds. 3.13.1. Corporate funds are used to account for operations that are financed and operated similar to private business enterprises. 3.13.2. Internal service funds are used to account for the financing of goods or services provided by one AVERT organization to another AVERT organization on a cost reimbursement basis. 3.14. AUDITOR - The Corporate Accountant, weather an individual or another contracted company, which is responsible for the items as described in L above. 3.15. SURPLUS PROPERTY AGENT - The purchasing agent's responsibility to dispose of surplus personal property is delegated to the "surplus property agent" in the Procurement Committee. 4.0 ACCOUNTABILITY 4.1 The Procurement Committee through the purchasing agent is, by AVERT policy, responsible for the disposition of surplus AVERT property. 4.2 The surplus property agent manages the operations of the surplus stores under the supervision of the purchasing agent. 4.3 The AVERT organizations are responsible to initiate 1100 HR forms documenting any transfer of surplus property, whether into or out of the stores, or between any two AVERT organizations. 4.4 Property transfers between organizations of property consigned to the surplus stores requires specific approvals of the AVERT organizations involved. 4.5 All property dispositions which involve a sale of surplus AVERT property require the prior authorization of the Board of Directors, in compliance with AVERT policy. 5.0 GENERAL CONDITIONS 5.1 Any transfer of personal property from one organization to another requires that a 1100 HR form be correctly completed and signed by an employee of both the transferring and receiving organizations. 5.2 When personal property is consigned to the surplus store, the surplus property agent signs as the consignee for the AVERT organization disposing of personal property. 5.3 When personal property is ultimately transferred to another AVERT organization, then that AVERT organization will sign the 1100 HR form as the receiving organization. 5.4 When personal property is disposed of by sale then the surplus property agent will maintain a record of the sale. The surplus property agent will provide copies of the completed 1100 HR to the transferring organization and the Auditor. 5.5 The transferring organization has the responsibility to see that the form is initiated, fully completed, properly signed, and that a copy is provided to the transferring organization, the receiving organization, and to the Auditor. If adequate information is provided with the 1100 HR form, then the responsibility for the property will pass to the receiving organization or will be a valid consignment to the surplus property agent. 5.6 If sufficient information to identify property is not provided with the 1100 HR, then it cannot be processed, and responsibility for the property remains with the transferring organization. 5.7 Proceeds from the sale or disposal of personal property will be recorded as revenue of the transferring fund if completed fixed asset information is recorded on the 1100 HR form. 5.8 The 1100 HR Form serves as both the initiating document and as the receipt, and must be used to document all surplus property transactions. 6.0 CONDITION OF PROPERTY 6.1 All surplus, obsolete or unusable personal property, regardless of its physical condition, shall be disposed of in accordance with these provisions through the Surplus Store, except that items which are obviously scrap may be disposed of at the Salt Lake County Landfill, or be sold to a scrap metal dealer for its residual salvage value. 6.1.1 In order for any item to be disposed of as scrap, the Surplus Property Agent, Auditor, and responsible AVERT organization must unanimously agree that it meets the definition, prior to disposal. 6.2 Organization shall not send used consumable, such as type-writer ribbons, correction ribbons, etc. to the store. Such items may be discarded after use. Unused consumable items may be sent to the warehouse for possible transfer or sale. 6.3 Surplus vehicles should, to the extent possible, be sent to the store in good condition. They should be complete, i.e., they should have four tires, a working battery, and they should be clean inside and out, since the condition of this type of property will significantly affect its resale value. 6.4 All property which is surplused should be sent to the store in good, clean condition. Dirt and grime should be removed. 6.5 Hazardous materials such as insecticides, solvents, medical wastes, paints, combustibles and any other toxic or hazardous items are not to be disposed of through the Surplus Store. When organizations need to dispose of hazardous items, they are to contact the health department for guidance in disposing of the items properly. 7.0 CONVEYANCE OF SURPLUS PERSONAL PROPERTY TO NON-AVERT ENTITIES FOR CONSIDERATION OTHER THAN MONETARY 7.1 Personal property that has no further use by any AVERT organizations may be conveyed to a local non-profit organization if there is fair and adequate consideration given by the non-AVERT organization. 7.1.1 Consideration can be defined as a service provided to AVERT and its members, reasonably equivalent to the fair market value of the property. 7.1.2 The receiving non-AVERT organization must be a charitable organization which qualifies as tax-exempt under IRS rules and upon showing proof of certification, if required by the Committee. 7.2 AVERT organizations must be given the first opportunity to request surplus personal property before the items are released to outside organizations. Non-profit organizations, associations or other governmental entities are allowed to request the equipment after other AVERT organizations have had an opportunity to receive the property and before the assets are put up for sale or auction to the general public. 7.3 The personal property conveyance will be made on a first come basis after being declared surplus by either the using AVERT organization or the Board of Directors in accordance with AVERT policies and procedures. 7.4 The receiving non-AVERT organization must provide services within the AVERT Corporation and to the membership which are consistent with the public goals and services of AVERT. That service is what the AVERT might otherwise perform or be required to perform. The receiving agency is responsible to define in writing that service it will provide to the AVERT in consideration of the personal property. 7.5 All personal property conveyed must be approved by the Board of Directors after, on a case-by-case basis, the Board determines that fair and equitable consideration has been offered. Unless otherwise agreed by the Board of Directors, an agreement should be prepared to describe the property to be conveyed and the services to be performed in consideration thereof. 7.6 Any fees incurred by AVERT in establishing the value of the personal property as well as other fees involved in the transfer will be the responsibility of the receiving non-AVERT organization. 7.7 The surplus value of the equipment being conveyed may be transferred from the AVERT's General Fund Account to refund internal service and Corporate funds for equipment from their organizations. 8.0 DISPOSITION/TRANSFER SALE OF SURPLUS PROPERTY BY AVERT ORGANIZATIONS 8.1 Use of 1100 HR Issue/Turn In form. 8.1.1 The 1100 HR Issue/Turn In Form will be initiated by the transferring organization. (Copy of 1100 HR form is attached to this policy). 8.1.2 The Personal Property Issue/Turn In 1100 HR form is to be completed for all types of transfers. 8.1.3 All of the following information, if possible, is to be entered in the first four columns of the 1100 HR for all items being transferred or otherwise disposed of: 8.1.3.1 The Quantity and Unit of Issue. 8.1.3.2 The Item's "Description," and/or property stock number and serial number if applicable. 8.1.3.3 and a "Comment" such as "scrap", "disposed" or "Transfer" as appropriate to identify the transaction type. This information is necessary to identify the asset being transferred, sold, traded in, and/or consigned to the surplus store. 8.1.4 If sufficient information is not provided, the asset cannot be identified, and it is not possible to update the fixed asset accounting records. In that case, fixed assets will remain on the organization's fixed asset records, even though the particular fixed assets have already been transferred or sold. 8.2 Consignment to surplus store. 8.2.1 Organizations wishing to consign property to the surplus store should send a completed and signed 1100 HR Form with the property as it is moved. Failure to do so will result in the property being refused at the store. 8.2.2 Organizations wishing to transfer large or heavy property to the store should make necessary arrangements with Stores Management to effect the hauling of such property. In any event it shall be the responsibility of the transferring organization to arrange for property transportation. 8.2.3 Any property consigned to the surplus store is then available for transfer to AVERT organizations on a first-come, first-serve basis. Property not transferred to other AVERT organizations will be otherwise disposed of in a manner consistent with AVERT policies, procedures and property management techniques. 8.2.4 As property consigned to the surplus store is transferred, the receiving organization will sign the 1100 HR. The surplus property agent will forward copies of the 1100 HR to the transferring organization and the Auditor. 8.3 Disposition of personal property already transferred, sold, or destroyed but remaining on organizations' fixed asset records. 8.3.1 Sometimes personal property remains on the organizations' fixed asset records even though the particular assets have already been transferred, sold, or destroyed, or the 1100 HR's may have been prepared but not processed, or the personal property may have been destroyed, or it cannot be located after thorough research and inventorying have been performed. 8.3.2 In the above kinds of situations, a completed 1100 HR form, listing items to be written off from the fixed asset records, is to be submitted for approval to the Board of Directors. A description of the circumstances explaining why the personal property is to be written off, and a description of the steps taken to locate the missing property should be attached. Prior to submission to the Board of Directors, the list of items to be written off should be reviewed by the Auditor and then submitted to the purchasing agent. 8.4 Disposition of personal property acquired with grant funds. 8.4.1 Many grants place restrictions on the disposal of personal property acquired with grant funds. AVERT organizations are to notify the Auditor when personal property is acquired with grant funds. 8.4.2 AVERT organizations should also ensure that personal property acquired with grant funds is disposed of in accordance with grant requirements. 9.0 CONDUCT OF SALE 9.1 All sales will be conducted under the delegated authority of the purchasing agent. Sales will be conducted in an open manner consistent with AVERT policies and procedures, good business practice, and generally accepted accounting principles. 9.2 All sales of surplus property will be approved by the Board of Directors, in accordance with AVERT policies and procedures. (Generally speaking, the Board of Directors must give prior approval to the method of sale, as well as final approval to consummate the sale). 9.3 The surplus property agent will provide the Auditor with a final, Board approved list of items sold, including: Fixed Asset Property Number, Description, Serial Number if applicable, Sales Price, and Disposal Date. 9.4 The surplus property agent will provide the Auditor with a final, Board approved list of items scrapped or otherwise discarded as per instructions by the Board of Directors. This list will include Fixed Asset Property Number, Description, Serial Number if applicable, Sales Price, and Disposal Date. 9.5 All sales will be considered final, with no guarantees or warranties of any kind as to the actual condition or function of the equipment sold. All surplus property shall be sold "As-Is, Where Is". It shall be the responsibility of the buyer to provide all services necessary to de-install, package, remove, and transport the equipment, at buyers' expense. 9.6 Methods of Payment. 9.6.1 All property purchased at a surplus sale will be promptly paid for by cash or by check, in compliance with the requirements of AVERT policies and procedures, and in compliance with policy #1301 "Policy on Acceptance of Checks". All purchases of surplus AVERT vehicles shall be by cash or by certified funds. 9.6.2 The means of payment at any given sale may be made more restrictive, in the interest of AVERT. 9.6.3 The surplus property agent will provide a detailed list to the Auditor of amounts received in cash and checks, deposited categories. 9.6.4 All cash receipts will be deposited with the Treasurer, in accordance with current AVERT policies and procedures #1062. 9.7 Security. 9.7.1 Where large sums of cash are likely to be received at a given sale, appropriate security measures will be instituted in cooperation with the Local Law Enforcement Agency. 9.8 Receipting sales. 9.8.1 All property sold through AVERT's surplus operations will be properly receipted, showing the sale date, purchaser, description of property sold, and the consideration received by AVERT. 9.9 Extension of credit. 9.9.1 There will be no extension of credit in the sale of surplus property at any time, or to any person, member, or agency. 9.10 Release/removal of property. 9.10.1 No property will be released to any buyer at any surplus property sale, regardless of the type of sale, until AVERT has received the agreed-upon consideration, in the form of cash or check, or other consideration as defined above. 9.11 Negotiated sales. 9.11.1 AVERT will give due consideration to any offer to purchase surplus property made by a potential buyer. Such an offer may be tendered at any time other than in response to a sealed bid solicitation, or an auction. 9.11.2 Such offers, however, will normally be for equipment of a relatively specialized nature, which the general public would not ordinarily purchase. 9.11.3 Such purchases must be approved in advance by the Board of Directors, and the offer must represent a full and fair market value for the equipment. 9.11.4 The decision as to which items may be sold by negotiated sale is the sole province of the Purchasing Agent, in accordance with AVERT policies and procedures, subject to the approval of the Board of Directors. 9.12 Trade-in of equipment. 9.12.1 In any instance where AVERT property is to be disposed of by trading it in on the purchase of new equipment, the trade-in will be treated as any other transfer of property, and a P2 form will be initiated, signed, and the original copy forwarded to the Auditor. This will ensure proper accountability. 9.13 Disposition of scrap. 9.13.1 Personal property which is determined to be unusable and to have no value other than the material content will be considered to be scrap. 9.13.2 In most cases surplus property will not be deemed to scrap unless all efforts to dispose of it otherwise are unsuccessful. 9.14 Pay-back policy on sales proceeds. 9.14.1 In accordance with AVERT policies and procedures, sales proceeds will generally be deposited to the Corporate fund, or other funds as required by State statutes or other governing regulations. 9.14.2 The proceeds from the sale of any surplus property which was originally purchased by an AVERT organization having an independent revenue base, or an account separate from the corporate fund, shall be deposited to that organization's account, and not the corporate fund. The Auditor, upon receipt of bid, auction or other sales lists will distribute, via journal voucher, the proceeds of the sale. 9.15 Participation of AVERT employees in property sales. 9.15.1 AVERT employees shall be permitted to participate in the purchase of AVERT surplus personal property, in the same manner as the public-at-large, except that no AVERT employee shall be given any consideration or privilege in any such sale which might be construed as giving him/her an advantage in obtaining any surplus property. 9.15.2 Employees of AVERT shall be prohibited from participation in sealed bid sales, and shall be permitted to participate in public sales only after the public-at-large shall have been extended sufficient opportunity to have first choice of the property. 9.15.3 Employees shall have no special consideration given to them to obtain AVERT property, over which they may have had particular or exclusive use, on the occasion of retirement, departure from office, or termination from AVERT employment. 10.0 EXCEPTIONS TO POLICY 10.1 There shall be no exceptions to this policy, except as may be granted by the Board of Directors in accordance with applicable AVERT policies and procedures. 10.2 This policy does not apply to the issue of USAMMA surplus materials donated to AVERT. Refer to AVERT Policy and Procedure 1100 for these items. |
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