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Thread: Disposal of Used Assets

  1. #1
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    Disposal of Used Assets

    I am looking to find out how sister organization dispose of their used assets. The assets could include IT equipments, furniture’s, etc. If sister organizations can share their procedure whether via brief email or procedure document, that would be wonderful.

    Thanks.

    Best Regards,
    Saron


    Saron Tegegne, MS
    Director of Finance
    Chicago Teachers' Pension Fund
    203 N. Lasalle, Suite 2600
    Chicago, IL 60601-1231
    tegegnes@ctpf.org
    T 312 604 -1216
    F 312 332-3346

  2. #2
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    Hi Saron –
    MOSERS uses a company called Govdeals.com to sell all of our physical assets. We have used them for several years now and seems to work fine. We’ve tried having a ‘homegrown’ auction site and advertised the auction in the newspaper, as well as using a local ebay merchant to basically “consign” our items. Govdeals has its pros and cons but overall, its been our best option. If your city or state government utilizes them, you can most likely tag on to their agreement to pay less in fees as well as get a larger refund (yes, you can get $$ above and beyond the sale of your items depending on the overall volume!) Feel free to email me if you’d like more info.

    Tena Sapp
    Accountant
    Missouri State Employees Retirement System
    573-632-6123

  3. #3
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    Saron,
    We are required to dispose of all of our used assets through state surplus property. We generally get nothing for it so we tend to keep things for a long time. 

    __________________________________________________ __________________________________________________ __________
    Connie L. Flanagan | Fiscal & Investment Operations Manager | ND Retirement and Investment Office | ND State Investment Board
    3442 East Century Avenue | PO Box 7100 | Bismarck, ND 58507-7100 | phone 701-328-9892

  4. #4
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    Hi Sharon,

    We have a form that needs to be filled out and approved by a the department head for asset disposals. Asset tag(s) must be removed from the item and attached to the form. It is then routed to Finance to remove from asset listing.

    For the following:
    IT equipment is either traded in or sold to a recycling organization,
    Furniture if in usable shape is sold to staff via lottery otherwise it goes in the garbage,
    Automobiles are traded in

    Jim

    Jim Splitt
    Financial Analyst
    Illinois Municipal Retirement Fund
    2211 York Rd, Suite 500
    Oak Brook, IL 60523-2337
    (630) 706-4260

  5. #5
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    Below is an excerpt from our Capital (Fixed) Asset Policy that speaks to the disposal of our capital assets. I have also attached the form that is associated with the disposition of our assets.

    H. Retirement
    1. When retiring assets, a Fixed Asset Retirement/Transfer Form should be completed.
    2. The Executive Director (or their designee) should approve the form, granting approval to retire the asset. When an asset is sold, as opposed to a trade-in, the amount of the funds received must be shown on the retirement record as net proceeds.
    3. When a capital asset is sold, it must be sold for market or book value, whichever is greater. If both the market and book value equal zero, the asset is to be sold for a minimum of $25. If an asset sells for greater than its book value, a gain is to be recorded.
    4. All information technology equipment will be scrubbed or cleansed of all information/data prior to being donated or sold.
    5. The CFO or his/her designee is responsible for tracking the proceeds relating to the sale of assets and making the corresponding entry within the Fund’s fixed asset records, including recording the appropriate transaction to the General Ledger.
    6. The capitalized cost of an asset acquired through a trade-in consists of the cash outlay plus the net book value of the trade-in.
    7. The asset being traded-in is retired, and the amount of trade-in value appears as net proceeds on the retirement record.

    I. Surplus Property
    1. Surplus Property is useable personal property (other than Capital Equipment) having remaining useful life and functionality.
    2. A memorandum listing items to be declared as surplus property should be forwarded to the Fund’s Executive Director for approval and communication. Such approved surplus property should then be aggregated periodically (at least once every five years) and then donated to a selected and approved local charity.
    3. All information technology equipment will be scrubbed or cleansed of all information/data prior to being donated or sold.

    J. Impairment
    1. In order to determine the impairment of an asset, test the asset for the following:
    a. Evidence of physical damage (building damaged by fire or flood, restoration efforts are needed to restore service utility);
    b. Technological development or expected duration of use of a capital asset;
    c. A change in the manner or expected duration of use of a capital asset;
    d. Construction stoppage (stoppage of construction of a building due to lack of funding).
    2. If the asset is not impaired, Fund fiscal staff will reevaluate the remaining useful life and salvage value. All impairment decisions must be reviewed and approved by the Chief Financial Officer.

    Thanks.

    Lena H. Ellis CPA, MBA, CGMA
    Chief Financial Officer
    El Paso Firemen and Policemen’s Pension Fund
    909 E. San Antonio Avenue
    El Paso, Texas 79901-2523
    Phone: 915-771-8111
    FAX: 915-779-6693
    L.Ellis@EPFPPF.org
    Attached Files Attached Files

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