3.10 Cannibalization

PURPOSE:

To provided University departments with proper instructions for the disposal of University property through cannibalization.

SOURCE:

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

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

• Government Property, 48 C.F.R. § 45
• Government Property, 48 C.F.R. § 52.245-1
• Government Property, 48 C.F.R. § 245
• Government Property, 48 C.F.R. § 1852.245
• Uniform Guidance, 2 C.F.R. § 200

POLICY:

The department head is charged with the responsibility of monitoring the cannibalization of University equipment. It is against University policy to disassemble usable equipment when other cost effective options are available.

PROCEDURE:  Custodial department determines the titleholder of the property being considered for disposal and follows the steps below:

RESPONSIBILITY

ACTION

CUSTODIAL DEPARTMENT

1. Notify the SPS Property Administrator that an item with government or other sponsor title is to be cannibalized, its condition and request approval and disposition instructions be obtained from the sponsor.

SPS PROPERTY ADMINISTRATOR

2. Notify the grant or contracting officer of the government and other sponsor as to the condition of the item and request approval or disposition instructions for the cannibalization.
3. Advise the department as to the determination of the sponsor on disposition instructions for the cannibalization of the equipment.
4. If the sponsor abandons the property to the University, prepare a Property Record Change form to change the title to the University and send to Property Management to change the titleholder to University in the Capital Asset Module (CAM).

CUSTODIAL DEPARTMENT

5. If requested by the sponsor’s disposition instructions, return the property to the sponsor.
6. If title is abandoned or transferred to the University, follow the cannibalization instruction for University Titled Property.

CUSTODIAL DEPARTMENT

1. Prepare a Request for Authorization to Dispose of Movable Assets form and indicate Other with the notation of cannibalization.
2. Upon approval by the department head to cannibalize, send a copy of the form referencing the A-tag (s) number to Property Management.
3. Maintain Cannibalization Records in a central location. 
    

PROPERTY MANAGEMENT

4. Upon receipt of the signed form delete the asset from the University Capital Asset Module (CAM).

CUSTODIAL DEPARTMENT

5. Request from Property Management a new A-tag for any new asset(s) created from the assembly of cannibalized parts, if the capitalization criteria is met.
6. Advise Property Management of the value of cannibalized parts incorporated into other equipment items if the capitalization criteria is met.
7. When the residual of the cannibalized property is turned into Surplus Property for final disposition, attach the Request for Authorization to Dispose of Movable Assets.
8. It is the department head's responsibility to monitor the cannibalization process to protect the University's property from unnecessary disassembly or destruction. 

SURPLUS PROPERTY

9. If the appropriate authorized signatures on the correct documentation are received, process as normal turned-in equipment, and the item enters the disposal cycle.
10. The equipment will not be removed from that department's inventory until authorization has been received.