4209 PR.03 Transfer, Sale, Disposal, or Release of Moveable Equipment

Contents

1.     Overview

2.     Allowable Transfer, Sale, or Release of Equipment Owned by the University

3.     Transfer of Equipment Not Owned by the University

4.     Process for the Transfer, Sale, or Release of Equipment

5.     Moveable Equipment Under Departing Principal Investigator (“PI”) Jurisdiction

6.     Proper Disposal of University Moveable Equipment

This procedure sets forth the processes for the transfer, sale, disposal, or release of Moveable Equipment  in support of University Policy 4209 Moveable Equipment. Transfer of Moveable Equipment comprises all methods of transfer, including but not limited to, sale, and release. Disposal of Moveable Equipment refers to the final disposition (e.g., dismantling, destruction) of Moveable Equipment.

Moveable Equipment the University owns and no longer has a use for may be sold, transferred, or released to another institution or third party with approval of the owning department’s dean or chair, and the University Provost, subject to the following: 

• Equipment purchased with federal funds may be transferred to a for-profit institution in limited circumstances subject to the guidance set forth in 2 CFR 200.313(e). Consultation with SPFA is necessary in order to ensure compliance;
• Equipment funded by an inactive award may be released only if the department’s chair certifies that the equipment is not needed by any other Yale Investigator. This may be accomplished by posting the piece of equipment to the Eli Surplus Exchange for a period of time; and
• If an active award is being transferred to another academic institution, any transfer of equipment purchased on that award during the active award segment must comply with all the terms and conditions of the award.

Departments considering transfer or disposal of Moveable Equipment must properly record the movement of equipment, as follows:

• For departments with access to the MEI System, the transfer/disposal must be recorded online.  Departments are responsible for selecting the proper code that reflects the reason for the transfer/disposal.
• For departments without access to the MEI System, the department must notify the Capital Asset Accounting team at mei.admin@yale.edu of the transfer/disposal and the reason.

Equipment to which the University does not have the legal title may not be sold, transferred, or released to another institution or third-party without the written approval of the owner.

In general, equipment purchased with funds from a sponsored project becomes the property of the University when it is delivered.  There are, however, some sponsored agreements under which the sponsor retains title to any equipment purchased with sponsor funds.

Departments should contact Sponsored Projects Financial Administration (“SPFA”) with any questions as to the legal title of Moveable Equipment.

Government Owned Moveable Equipment is subject to additional regulations.  In general, such Moveable Equipment may be subject to the following:

• Federal Acquisition Regulations (“FAR”), Part 45 and Part 52.245;
• Defense Federal Acquisition Regulation Supplement (“DFARS”); and
• Department of Energy Financial Management Handbook, Chapter 10.

Departments are responsible for ensuring compliance with the appropriate regulations for Government Owned Moveable Equipment in their possession.  Departments should contact SPFA which is responsible for determining the rights of any sponsor and confirming that there are no limitations upon the University’s right to dispose of the equipment.  SPFA is responsible for executing the instrument of transfer of title (not involving a sale) of equipment to other institutions.

Before any Moveable Equipment is sold, transferred, or released to an external party, departments must first execute the following steps:

• Departments must complete a detailed list of the Moveable Equipment (including individual tag numbers) to be sold, transferred, or released to an external party;
• The Department Chair must approve the release of the Moveable Equipment and certify that the Moveable Equipment is not needed by any other Yale investigator. The department may do this by posting the piece of equipment to the Eli Surplus Exchange for a period of time;
• The list of Moveable Equipment approved by the Department Chair for transfer outside the University must be submitted to the Capital Asset Accounting team. The Capital Asset Accounting team determines whether or not the University owns the Moveable Equipment and identifies the source of funds used to purchase the Moveable Equipment;
• Following confirmation of title by the Capital Asset Accounting team, the Department Chair, and the Provost’s Office provides final approval for the transfer of the Moveable Equipment by completing Form 4209 FR.04 Capital Equipment Transfer/Release Form;
• The Capital Asset Accounting team completes any documentation required for release or transfer of title, including any documentation required by an awarding agency if the Moveable Equipment was acquired with funds from a sponsored agreement; and 
• If any quit claim deeds and or other agreements or contracts are required for the transfer of Moveable Equipment to an external party, the department should consult with the Office of General Counsel (“OGC”) regarding authorized signatures.

Note: In all cases, the requirements of the awarding or contracting sponsor concerning the transfer of equipment, if more stringent, will supersede University policy.

Prior to the departure of any principal investigator (“PI”), the PI’s business office is responsible for conducting a review of all Moveable Equipment under the jurisdiction of the PI to ensure the MEI system accurately reflects the Moveable Equipment assigned to the PI, and that the release or transfer of equipment is properly recorded. Proper review includes the following:

• The departing PI’s home department must prepare a listing of all Moveable Equipment purchased under the jurisdiction of the departing PI;
• For sponsor-funded Moveable Equipment, review the award status (active/closed);
• Obtain required approvals in accordance with sponsor and University policies before the release of the Moveable Equipment from the University (see Form 4209 FR.04 Capital Equipment Transfer/Release Form);
• Assign a new jurisdiction once the PI is released for all Moveable Equipment listed under the jurisdiction of a departing PI that will remain at the University.  The Lead Administrator (or designee) determines the new jurisdiction; and
• Dispose of all Moveable Equipment approved for relinquishment to the new institution using the “PI Release” disposition code in the MEI system.

Disposal of Moveable Equipment refers to the final disposition (e.g., dismantling, destruction) of Moveable Equipment. 

Moveable Equipment that is no longer in use, obsolete, or unable to be repaired, must be properly disposed of in the MEI system using one of the disposal codes listed below to ensure accurate maintenance of the University’s Moveable Equipment inventory.  Departments are responsible for the disposal of Moveable Equipment under their jurisdiction.  Each business office has the authority to approve the disposal of Moveable Equipment in their department.

The department is responsible for directly entering the Moveable Equipment disposal in the MEI system.

Depending on the disposal type, additional documentation may be required. All Moveable Equipment disposals are reviewed by a Business Asset Accountant to confirm all conditions are met prior to disposing the asset.

The following list describes the available disposal codes within the MEI system and any additional documentation that may be required:

• Coding Error – This disposal code should only be selected after discussions with the MEI Business Asset Accounting team.
• Discarded – Moveable Equipment that is obsolete, unrepairable, no longer functioning, or otherwise unable to be used. For computer disposals, see: Procedure 1610 PR.02 Disposal of Obsolete Computers and Peripherals.
• Donation – Moveable Equipment that is donated for the purpose of goodwill.
• PI Release – Moveable Equipment that is owned by a PI leaving the University. The PI must receive proper approval from the Department Dean or Chair, and Provost (Provost Representative) to take the Moveable Equipment. Form 4209 FR.04 Capital Equipment Transfer/Release Form must be submitted to the MEI team for review and approval.
• Returned – Moveable Equipment is returned to the supplier and the purchase refunded. A credit memo is required for this code.
• Sold – Moveable Equipment that is sold externally or to another Yale department. Approval to sell the equipment is required by the Department Dean or Chair, and the Provost (Provost Representative) prior to selling the equipment. The dollar amount of the sale, the date of the sale, and the purchaser are all required.  For equipment purchased with a federal award or sponsored funds, the requirements of the awarding or contracting sponsor concerning the transfer or sale of Moveable Equipment, if more stringent, will supersede University policy.
• Stolen – Moveable Equipment that was stolen. Include date reported stolen, and the police report that was filed.
• Traded-in – Moveable Equipment that is accepted in partial payment in relation to the purchase of a new item of equipment. The dollar amount of the trade in and the relevant credit memo/invoice must be included to confirm the trade in value.

Upon proper disposition, the piece of Moveable Equipment will no longer be counted in the University’s Moveable Equipment Inventory.