The University's capital assets policy specifies procedures to follow in disposing of capital equipment in order to: (1) accurately track the financial aspects of capital assets; and (2) assure that the process for the sale of used equipment doesn't give a greater benefit to one group of Cornell staff or departments over another.

CIT regularly disposes of large volumes of used/obsolete computer equipment. Some of the considerations for disposing of used computer equipment include:

1. The market value of used computer equipment is volatile. The value of this equipment can decrease by as much as 75% in the 30-day period after the decision to sell it is announced. CIT uses the funds obtained through such sales to reinvest in better technology for the campus benefit and would prefer to receive the highest market value possible, as soon as the decision to dispose of the equipment is made.
2. It is often the case that the technology products being disposed would provide no real value to Cornell, even at a very attractive price. It is true that a needy department could purchase used equipment from CIT at a low price, but often, the costs to Cornell as a whole to support and maintain outdated technology are much greater than the savings a department could realize. At the same time, disposing of old equipment to local not-for-profit organizations improves Cornell's image in the community if a fair process is in place by which the receiving organization is selected.
3. There are also costs to Cornell to move and store large volumes of equipment (e.g., when upgrading a lab) after the disposition decision has been made. Old equipment must be ready for disposition as soon as new equipment is ready for installation.
4. CIT believes that making used equipment for sale at attractive prices to its employees is important in assuring their professional development. An employee who has computer equipment at home can expand time available and technology skills, which ultimately benefits CIT and the campus.

To recognize the University's need to comply with federal and other regulations, and also to recognize the economic impact the disposal of used technology products can have on the University, CIT will follow the procedures itemized herein.

1. removing the bar code(s) and any official University seals or indicia;
2. ensuring that all data AND software are removed from the equipment with the exception of the operating system which may remain; and
3. including a plan for disposing of the equipment (e.g., sale to campus community, off-campus sale, scrapped, etc.) and the justification for the decision. All equipment targeted for disposition will go through this process including equipment that is broken or deemed of zero value.

Please note that equipment to be sold must be stored (potentially for up to two months) in a secure location and clearly labeled "awaiting disposal" since the bar code will have already been removed. With the exception of staff equipment——which will be stored by CIT Technical Support——the disposing division is responsible for coordinating storage.

The original purchase cost must be documented because disposal signatures are determined in the same manner as a purchase. Unless the value dictates that the signature of the Director of Administration and Finance (DAF) or the Vice President for Information Technologies is required, the relevant CIT division director* will be the minimum authorized signature authority for the disposal documentation. (*This is the director of the division where the equipment was last in use, regardless of what division purchased the equipment or where it was used during its lifecycle.)

When an asset is available for sale, the criteria by which equal bids will be ranked is as follows:

1. Cornell departments
2. CIT staff for personal use
3. Not for profit and charitable organizations
4. Other faculty, staff, students

Before an asset is disposed of, CIT's inventory coordinator (in DAF) must receive a copy of the Equipment Disposal Form. For items with an original cost of $5,000 or more, CIT's inventory coordinator must forward the form to the Inventory Control (IC) group in the University Controller's Office to verify that sponsored (government-owned) equipment is not being disposed as well as to inform CIT if the equipment was originally recorded as "gift" equipment. IC then notifies CIT's inventory coordinator that we may proceed with disposal. EQUIPMENT CANNOT BE DISPOSED OF BEFORE THIS PERMISSION IS RECEIVED.

Equipment to be scrapped: At his/her discretion, the CIT Inventory Coordinator may first offer the equipment to any not-for-profit organizations (as recommended by the University Office of Community Relations) that salvage parts for community use. The Technical Support staff person or CIT program manager handling the disposal will forward the complete list to the CIT inventory coordinator who will review items requiring higher-level approval and obtain that approval and then forward the signed copy of the Equipment Disposal Form to the relevant building services coordinator who will, in turn, contact university recycling for appropriate physical disposal. CIT's Inventory coordinator will ensure that the university capital asset records are updated as necessary, following DAF's internal processes for maintaining these records.

Equipment to be offered for sale: The person assigned to dispose of the equipment may set a minimum bid on any item or instruct the CIT inventory coordinator to reject bids that are significantly below current market value. One method of determining market value of used computer equipment is via the following URL: http://www.uceauctions.com. The full list should be sent to the CIT inventory coordinator who will post the information to the university's surplus equipment web site (Cornell Asset Transfer System — CATS) for a period of thirty (30) days. All bids will be collected——and final bid selected——by CIT's inventory coordinator CIT staff person handling the disposal. The CIT inventory coordinator will arrange for payment and pickup of equipment by the purchaser(s) as follows:

• If sold to anther campus department, obtain department account number to be billed and have DAF staff process billing via journal entries.
• Request individual purchasers to pay by check if possible.
• No sales tax will be collected from purchasers.
• Record actual purchase price, method of payment and date purchased ont eh list of equipment.

If all of the equipment is not sold through this process, the remaining equipment may be sold off campus (see below); however, selling to the Cornell community is the default process for all dispositions unless there is specific justification otherwise. All information on disposition of each item must be forwarded to the CIT inventory coordinator so that university capital asset records can be replaced.

Equipment to be sold off campus and not offered to Cornell: The person assigned to dispose of the equipment should forward a written justification for not selling to the Cornell community, including specific reasons why, to the CIT inventory coordinator who will, in turn, forward to the Inventory Control (IC) group in the University Controller's Office. In most cases, equipment is donated, not sold, to local not-for-profit agencies after being posted to the CATS web site and remaining unsold or upon specific request from a local not-for-profit agency.

When selling former computer lab equipment (or other large volume sales), the CIT program manager will work with CIT's inventory coordinator to notify local not-for-profit umbrella agencies, as recommended by the University Office of Community Relations, as early as possible with a list of equipment available for sale, the probable time frame and the terms of sale. The goal is to allow these umbrella agencies to contact their individual members with sufficient lead time to determine interest.

As soon as the Equipment Disposal Form is received the CIT inventory coordinator will:

• contact one or more used equipment brokers for a quote on the equipment to establish the current market value and
• notify the local not-for-profit umbrella agencies of the actual equipment available for sale, the market value and the terms of sale.

Not-for-profit agencies must express a firm commitment to purchase and take delivery of the equipment at or above the market value within thirty (30) days. The agencies may either bid against each other or work cooperatively at their discretion. The CIT inventory coordinator will take the high bid unless, in his or her judgment, the bidders appear unable to meet the terms of the sale. If the not-for-profit organizations continue to match each other's bids and the CIT inventory coordinator (with assistance from the Office of Community Relations) cannot determine a fair resolution, the CIT inventory coordinator can choose to sell the equipment to a broker. Equipment that is not purchased and picked up by a not-for-profit agency in thirty (30) days may either be sold to a used equipment broker or on the Web through the University's CATS Web page located at http://cats.dfa.cornell.edu/cats/main.do.

CIT's inventory coordinator will:

• arrange for payment and pickup of equipment by purchaser(s);
• ensure checks are made payable to Cornell University;
• ensure the proceeds are immediately forwarded to CIT's BSC (Business Service Center) for deposit;
• record the actual purchase price and date purchased on the list of equipment and
• assure that the university's capital asset records are updated as necessary, following DAF's internal processes for maintaining these records.

University Forms

[None.]

CIT Forms

Equipment Disposal Form

University Documents and Policies

[None]

CIT Documents and Policies

[None]