Capital Assets - Retirements
REG 07.30.16
Financial Reporting and Accounts Receivables
Print-friendly version 
Authority: Vice Chancellor for Finance and Business
History: First Issued: November 1, 2001.
Related Policies:
NCSU REG07.30.18 -
Capital Assets - Transfers
Additional References: University Controllers Website
Contact Info: University Controller (919-515-3824)
1. Purpose
This statement explains the procedures for the retirement of assets from
the Capital Assets Management System (CAMS).
2. General Guidelines
All faculty/staff employees should be aware that equipment purchased through
the University is property of the state, federal government, or private grantor
agency. As such, it cannot be sold, surplused, or transferred from NCSU without
the prior written approval of the appropriate federal sponsoring agency and/or
the State of North Carolina Surplus Property Officer. This includes equipment
purchased through grants or contracts obtained by Principal Investigators.
3. Procedures
The following procedures are used to request the sale or transfer of capital
assets from NCSU to another University or agency:
NOTE: State-titled equipment (including assets purchased
from expired federal contracts and grants in which title vests with the state)
cannot be transferred to individuals, other state agencies or other institutions
without NCSU receiving fair compensation for the assets.
Transfer of equipment with title vested in grantor agency (including ongoing
federal contracts and grants)
3.1. Obtain written approval for the transfer from the grantor agency.
3.2. Obtain written approval for the transfer from the department head, dean,
and the Vice Chancellor for Research and Extension.
3.3. Send copies of the above approvals to the CAMS Office, Box 7205 and the
Contracts and Grants Office, Box 7214. Please include a list of equipment
to be transferred and provide the following information for each item:
3.3a. CAMS asset tag number
3.3b. Description
3.3c. PO/PA number
3.3d. Acquisition date
3.3e. Original cost
3.3f. FAS account number
3.4. For equipment defined as Government Property according to FAR 45.5, title
and disposition of equipment in this classification is specified in FAR
52.245-5 Alternate I. The Office of Contracts and Grants will provide disposition
instructions during the close-out process.
Sale of state-titled equipment (including assets purchased from expired federal
contracts and grants in which title vests with the state)
3.4.1.
Obtain written approval for the sale from the department head and the
dean.
3.4.2. Complete a Surplus Disposition Form (SDF01) for all items to be sold and
send the form to the Campus Surplus Office, Box 7225. Include a statement
on the form that the items are to be surplused for the purpose of sale to
another institution (specify). Attach a separate sheet listing equipment
to be sold and include the following information for each item:
3.4.2a. CAMS asset tag number
3.4.2b. Description
3.4.2c.PO/SP number
3.4.2d. Acquisition date
3.4.2e. Original cost
3.4.2f. FAS account number
3.4.2g. Fair market value to be paid by other institution
Please send copies of the above approval, surplus form, and list of equipment
to CAMS, Box 7205. A copy of the completed surplus form and list of equipment
will be sent by campus surplus to the State of North Carolina Surplus Property
Officer. Campus surplus will notify CAMS and the department of the approval
or disapproval of the request.
Other Retirements of Assets from CAMS
University colleges/departments are required to initiate action to retire
assets from the CAMS system. The Equipment Transfer Disposition Request (CA
- 4) is used to report assets that have been lost, stolen, destroyed, altered,
or traded-in. The first time an asset is reported lost or stolen it is not
retired from CAMS. Instead, the condition code is changed to an "L"
(lost) or "S" (stolen). If lost/stolen items are recovered, CAMS
should be notified as soon as possible. If missing items are located during
the annual inventory process, departments should annotate the changed status
beside each item and enter the correct condition code on the inventory report.
See Statement No. 7.8 of this section for instructions concerning lost equipment
which is not located during the annual physical inventory.
The
Surplus Disposition Form (SDF01) is used to report surplus or scrap items
to Central Stores. All equipment dispositions, including scrap assets, must
go through Surplus Property before they can be removed from the inventory.
Scrap assets should not be thrown away by departments.
A disposal is considered to be the removal of an asset from the custody and
accountability of NCSU. Therefore, if a college/department "disposes" of an asset by providing it for the use of another University college/department,
this activity is considered to be a transfer, rather than disposal, of the
asset. Please refer to Capital Assets - Transfers
for information regarding transfers of assets.
Record Retention
Departments should retain copies of surplus property forms, asset transfer
forms (CA - 4's), stolen property reports, and any other documentation regarding
equipment dispositions. This information must be retained by the department
for verification purposes until the CAMS office removes the item from the
department's inventory.
4. Retirement
Forms
Form CA - 4, Equipment Transfer Disposition Request is used for retirements
and transfers. The following form is located on the web and may be printed
and copied for use by colleges/departments. It will be provided with the annual
departmental inventory forms and instructions or they may be obtained by calling
the Capital Assets Office at extension 5- 2148.
Form SDF01, Surplus Disposition Form, and surplus tags may be purchased from
Central Stores. Note: Copies of the original form will not be accepted by
the Campus Surplus Office.
5. Instructions for Completion of Forms
5.1. Equipment Transfer and Disposition Request- (CA - 4)
5.1.1. Enter CAMS tag number. A separate form should be used for each retirement.
5.1.2. Enter a short description of the asset.
5.1.3. Indicate the college/division/department initiating the action.
5.1.4. Section 1 is used only for transfers of assets. See
Capital Assets - Transfers
5.1.5. Enter date the event occurred. If unknown, estimate date as accurately
as possible.
5.1.6. Under Section II, Disposition Section, check the appropriate block:
Lost - Item cannot be located following scheduled or routine inventory
procedures. Upon notification, the CAMS Office will change the asset's
condition code to an "L" (Lost) and retain the item on the
department's inventory until further action is authorized (see
Annual Inventory).
5.1.6a. Destroyed - Item is known to have been destroyed by fire, accident,
etc. to the extent that it is no longer identifiable or has no value
for salvage or scrap.
5.1.6b. Altered - Item has been altered or modified to such an extent that
it is no longer recognizable or identifiable as the asset originally
acquired. An altered item requires re-tagging by the CAMS Office.
5.1.6c. Hazardous - Item no longer deemed safe to use in it's current condition.
5.1.6d. Other - Check this block if the asset is to be retired for a reason
other than indicated above (except for surplus property, which requires
completion of Form SDF01). Please provide complete details regarding
the requested disposition.
5.1.7. Section II, Stolen Assets: An item is considered stolen when it has
been illegally removed from its designated location. Enter the Stolen
Report Number and attach a copy of the Stolen Property Report to the CA
- 4.
5.1.8. Section IV, Traded In: Complete this section when an item is traded-in
on another piece of equipment by the college/department. The asset traded-in
will be retired from the system and the new item will be tagged and coded
into the inventory. Enter the CAMS tag # and Purchase Order or Small Purchase
number for the new asset.
5.1.9. Form must be signed and dated by supervisor and department head.
5.2. Surplus Disposition Form - (SDF01)
5.2.1. Enter date form is prepared.
5.2.2. Enter department and college/division, as applicable.
5.2.3. Provide name and extension of departmental contact person.
5.2.4. Signature of individual who authorizes the request for disposition (department
head, supervisor, etc.).
5.2.5. If applicable, enter account to which proceeds from sale are to be deposited.
Note: Departments are not eligible to receive funds from the sale
of assets purchased with state appropriations.
5.2.6. Enter equipment location.
5.2.7. Provide requested information for each asset. "CAMS No." refers
to the CAMS tag number. "Tag No." refers to the surplus number
on the white tag which is affixed to each item to be surplused. These
white tags must be purchased from Central Stores.
5.2.8. Enter type of action, as follows:
5.2.8a. As Is Where Is - Items which are sold at the department's location.
The location of the asset and contact person's name must be given
on the form. The Campus Surplus Office will sign the Surplus Disposition
Form and send the original to State Surplus with copies to appropriate
University offices.
5.2.8b. Scrali - Item is considered unusable by department. Campus Surplus
will determine whether the item should be scrapped or surplused at
time of pickup.
5.2.8c. General Surplus - Item is no longer needed by department but is
in usable condition. Surplus equipment will be placed in campus storage
on a temporary basis until it is sent to State Surplus or claimed
by another University department.
5.2.8d. Vehicle - Upon receipt of the disposition form, Campus Surplus will
call the Insurance and Risk Manager for the appropriate vehicle title.
Campus Surplus will then process the title and call the department
to pick up the title and the disposition form for delivery of the
vehicle to State Surplus. Please note that the department is responsible
for delivering the vehicle to State Surplus, removing the license
tag and taking the tag to the Campus Surplus Office. Campus Surplus
will return the license tag to the Department of Motor Vehicles.
5.2.9. Note: This section is not to be completed by departments.
