The University of ArizonaThe University of Arizona
Financial Policies & ProceduresFinancial Policies & Procedures
 

18.10 Federal and other Sponsored Property

PURPOSE:

To provide direction to University departments regarding the trade-in of Federally titled, Federally funded and other sponsored equipment for new items.

AUTHORITY:   

Powers and duties of the University President, ABOR Policy 3-801 and 3-802

The authority below applies ONLY to Federal Property (acquisition dollars or title):

  • 48 Code of Federal Regulations (CFR) Part 45
  • 2 Code of Federal Regulations (CFR) Part 200 (“Uniform Guidance”)  

POLICY:

University departments may trade University property for new items, as long as the property being traded in is not for some unknown product or service to be acquired in the future. Trading University equipment in on an item that will be titled to another entity is prohibited. A trade that results in the department receiving funds in addition to a new item is considered a sale, not a trade-in and must be processed as outlined in Public Sale.

Equipment owned by the government or other sponsor can be traded-in on new items with the approval of the sponsor grant or contracting officer. University titled equipment with a trade-in value of $5,000 or more and purchased on government funds may also require sponsor grant or contracting officer approval.

PROCEDURE:

RESPONSIBILITY

ACTION

CUSTODIAL DEPARTMENT

  1. Determine the titleholder and source(s) of funding for the equipment item(s) proposed for trade-in.
    1. If the item is titled in a sponsor, either obtain a written approval from the sponsor to use as a trade-in, or ask the SPS Property Administrator to request the trade-in authorization from the sponsor.
    2. If the item is University titled, acquired on government funds, and has a trade-in value of $5,000 or more, contact the SPS Property Administrator for a determination of the applicable government trade-in rules. Request sponsor approval of the trade-in as directed by the SPS Property Administrator.
  2. Upon receipt of the sponsor authorization to trade in the item, follow the standard University purchasing procedure.
  3. Create a Requisition to order the new item or items.
  4. Identify the items being traded, the UA property tag number (or indicate that a tag does not exist) and the value being received for the trade. The transaction will not be processed without a value being indicated for the item being traded.
  5. Prepare a Request for Authorization to Dispose of Property (RADP) form, note the Requisition number at the top, attach a copy of sponsor approval letter, if applicable, and send to Purchasing as an attachment. 

PURCHASING

  1. Forward the Purchase Requisition and RADP to Surplus Property for review. 

SURPLUS PROPERTY

  1. Review the Purchase Requisition and the RADP and approve, or resolve any differences with the department, return form for completion, or request further justification.
  2. If the item is not titled in the University or if it has a trade-in value of $5,000 or more and was purchased on a sponsored account, review the RADP for a copy of the sponsor approval letter. If a copy of the sponsor’s approval is not attached to the RADP, verify the need for sponsor approval of the trade-in with the department and the SPS Property Administrator.
  3. If approved, sign and forward to Purchasing for processing.
  4. If denied:
    1. Arrange to pick up the property and dispose of it using other methods.
    2. Indicate on the Purchase Requisition that the new item or items will now be split funded between Surplus Property and the department.
    3. The department will be credited an amount equal to what they would have received from the trade-in. The department will not receive any further funds resulting from the disposal of the disapproved trade other than the trade-in price plus sales tax they has proposed.
    4. Surplus Property’s account will be charged an amount equal to what would have been received from the intended trade-in plus tax. 

PURCHASING

  1. Review the returned Purchase Requisition and RADP for the required approvals and process. A Purchase Order will not be issued without Surplus Property’s approval. 

CUSTODIAL DEPARTMENT

  1. When the traded-in equipment is shipped or picked up by the vendor, obtain a receipt and notify FSO-Property Management to delete the item(s) from the Capital Asset Module (CAM). If the traded-in item is sponsor titled or required sponsor approval for the trade-in, notify the SPS Property Administrator.

SPS PROPERTY ADMINISTRATOR

  1. Prepare a Property Record Change Form for the trade-in and forward to FSO-Property Management. 

FSO-PROPERTY MANAGEMENT

  1. Upon receipt of notification that the traded-in item has been delivered to the vendor, remove it from the Capital Asset Module (CAM).