Surplus Property Policy

Surplus Property Policies and Procedures

Updated June 2015

 

7. Donations and Sales to Other Parties 

 

a. Donations of items owned by the University that have value (even if ascribed no value in the accounting system) may be made to individuals or public or non-for-profit organizations (but not to for-profit corporations), at the discretion of the president, provided the estimated value (determined by the Property Inventory Control Office) does not exceed LE 50,000.

b. No University property can be sold to a private or for-profit organization except through organized auction or solicitation of bids.

8. Surplus Property

8.1 Designating surplus property

When a department determines University property (such as movable equipment, furniture, or supplies) to be obsolete, outmoded, or unusable, that department may declare the property surplus and dispose of it by filling a transfer form and sending it to the University warehouses. The Property Inventory Control Office, in coordination with the University warehouses, will manage the disposal and selling procedures.

The following departments are responsible for the allocation and management of property:

a. Housing and Transportation Services: All residential (faculty and student) furniture and appliances; all cars, motorcycles, and other vehicles.

b. Construction Services: All office, classroom, and public area furnishings, athletic equipment, building materials, and scrap.  

c. Information Technology:  All electronic equipment, personal communication devices, etc.

d. Office of the Provost:  All non-electronic equipment and furnishings utilized for academic research and teaching (such as specialized lab or studio equipment). 

 

8.2 Selling surplus property

Any item that has been declared surplus may be sold according to the follow conditions:

a. The director of construction services, the director of housing and transportation, and the director of information technology will establish a minimum inventory for their respective departments, which must remain available at the warehouse at all times. The Office of the Provost, in consultation with the schools' deans, will similarly establish what kinds and levels of surplus equipment should be kept available. Any items in excess of this “lower bound” of stock are eligible to be sold through one of the methods explained in section 8.3, after notifying the concerned department.

b. Any other property on campus that is sent to the warehouse will be managed by the director of property inventory and warehouses control. Before selling any such property, he or she will contact the relevant department on a case-by-case basis.

c. No property with a value in excess of LE 14,500 [1] may be sold to a University employee (or group of employees). This will include all University vehicles and high-value laboratory equipment. Exceptions may only be made by the president.

8.3 Methods of sale

The Property Inventory Control Office must establish whether the surplus property can be used by departments or units at the University other than the originating unit. If it certifies that it cannot be, it will use the most advantageous disposal method among those listed here below:
a. Sale to University employees through silent auction.

b. Sale under sealed bids, publicly advertised and held. (University employees may not participate in such sales.)
c. Negotiated contract for sale at arm’s length. (University employees are excluded from such transactions.)

 

Note: Departments within AUC can acquire surplus assets no later than 15 days prior to the day of the sale.

8.4 Sale to University Employees

University employees with a valid AUC ID card who wish to purchase surplus goods will be permitted to visit the Warehouse Exhibition Room (or other display areas) for major sales events to be held approximately semi-annually, or when 200 m2 of the warehouse is full. 

Sales to employees will take place through a three-day silent auction, with each item to be awarded to the highest bidder at the designated closing hour on the final day of the auction. For computing and communications equipment, such as desktops, laptops, electronic tablets and mobile phones, which have a recorded book value of 0 after one year of depreciation, a minimum price will be determined by the director of property inventory and warehouses control in collaboration with the Office of the Controller, based on a five-year depreciation for computers and three-year for electronic tablets. Sales to employees will take place through a three-day silent auction, with each item to be awarded to the highest bidder at the designated closing hour on the final day of the auction. For computing and communications equipment, such as desktops, laptops, electronic tablets and mobile phones, which have a recorded book value of 0, a benchmark is determined by the director of property inventory and warehouses control in collaboration with the Office of the Controller, based on a five-year depreciation for computers, three-year for electronic tablets and two-year for mobile phones. The value for the computing and communication equipment after the determined useful life, will be 20 percent from the aquisition cost. For other items, there will be no predetermined minimum price, except at the discretion of the director of property inventory and warehouses control.

Highest bidders for each particular item at the end of the auction will be notified accordingly via email or phone call to pick up a collection advice at the office of the director of property inventory and warehouses control.  They will have two working days to pay for the item at the CIB bank on-campus and retrieve it. They must then bring the proof of purchase from the bank to either:

  1. The director of property inventory and warehouses control (to retrieve smaller items)
  2. The warehouse (to retrieve large items)

If no receipt is provided and the item remains at the warehouse after two working days, the sale will be canceled and the item will be awarded to the next-highest bidder.
 

8.5 Sale to External Parties

Any items that are not acquired by departments, and not sold in the sales to the University employees as described in section 8.4, will be eligible to be sold to external buyers through sealed bids (closed envelope). These sales must be publicly advertised and publicly held. The Property Inventory Control Office must advertise the sale in at least one newspaper of general circulation describing the date and conditions of the sale. Exceptions to this policy may be made at the discretion of the director of property inventory and warehouses control (for example, see section 8.6 on scrap items).

Items offered may include computers, electronics, furniture, office equipment, scientific equipment and vehicles.  Items are located and sold on University premises – either at AUC Tahrir Square, the Zamalek Building, or at the Warehouse at AUC New Cairo. Individuals may view items any working day from Sunday to Thursday from 8:30 am to 3:00 pm during the sales period announced. 

High bidders can checkout and pay at any time not later than two business days after the envelope-opening session to the CIB bank branch on the University premises, with pick-up due by 2:00 pm on the day following the payment. The pick-up of purchased items can be delayed for no more than three business days by making arrangements with the warehouse staff, but payment must still be made on the assigned days as soon as the envelopes are be opened. 

Items are offered as is, with no guarantees implied or made.  All sales are final. When assets are removed from AUC premises and handed to the buyer, the sale is final.  Buyers should verify their receipt against the property received before leaving the sale area. 

External buyers must use one of the following payment methods when purchasing surplus property:

a. Cash

b. Certified check

c. Bank draft

 

8.6 Sale of Scrap Items

  1. Minor scrap items (value less than or equal to LE 2,000 and not located at AUC New Cairo) may be sold directly to one of the registered vendors of the Property Inventory and Warehouses Control Office database.
  2. If scrap is put up for sale twice and remains unsold, then the Property Inventory and Warehouses Control Office will contact a garbage collector to remove it.
  3. The assistant vice president for facilities and operations and the director of environmental health and safety will be granted the joint authority to remove any scrap that poses a potential threat to the safety of site where it is located.
     

 

8.7 Employees Leaving the University

AUC employees who retire or resign are permitted to purchase select personal devices under the following conditions:

a. Employees who wish to purchase their personal devices must confirm with their respective department head that the device is eligible for purchase. The department head must send his or her approval to the director of property inventory and warehouses control.

b. Only the devices listed below are eligible for purchase by employees, according to the following timeframe:

1. Mobile phone: after two years of service

2. Tablets: after three years of use

3. Laptop Computers: after five years of use

4. Desktop Computers: after five years of use

c. The employee should bring the device to the director of property inventory and warehouses control.  Its value will be determined according to the method described in section 8.4. 

d. The director of property inventory and warehouses control will issue a collection advice to the employee, which the employee must take to the CIB bank on campus in order to pay. 

e. Immediately after issuing the collection advice, the director of property inventory and warehouses control will take the device to UACT for cleaning of any sensitive business information.

f. The employee must bring a receipt (proof of payment) from CIB to the director of property inventory and warehouses control.  He or she will then return the device to the employee and this will be communicated to the controlle's office to erase its SAP fixed asset number from the system.  

Note: No other items other than those listed above (i.e. personal devices) will be eligible for purchase by AUC employees upon their departure from the University. Items such as printers, scanners, landline phones, furniture or other supplies belonging to the office are ineligible for purchase. 

8.8 Faculty Leaving the University

AUC faculty members who are moving from an AUC-owned or leased faculty housing apartment may be permitted to purchase AUC furniture and equipment he or she has used during their stay in such apartments. The faculty housing director has the authority to approve such sales and will make a determination of price based on fair market value.

To view the policy in Arabic, click here.

 


[1] LE 14,500 is the current amount (as of Feb 2014) beyond which an item is considered “high-value” in AUC’s depreciation model, but this number is subject to change as a result of fluctuation in the currency exchange rates.