Office of Origin: Purchasing & Support Services
Date Adopted: 10-26-93
Date Reviewed: 08-16-12
Last Date Modified & Approved: 08-16-12

The sale or disposal of Lake Michigan College (the College) property will be handled as follows:

1. When an employee identifies an item of College property as no longer useful or as damaged beyond repair, the employee must complete a Sale/Disposal of College Property Form (the Form) and submit to the appropriate administrative supervisor.  
    
2. If the item is classified as vocational or technical in nature, the permission of the Dean of Technology, Health Sciences and Business is required in writing.
    
3. For items purchased using grant or contract funds, the sale or disposal must be handled in accordance with the specific requirements of the grant or contract.
    
4. Should a donated item valued at more than $500 be sold or disposed of within 2 years of the date it was received, Form 8282 “Donee Information Return” must be completed for submission to the Internal Revenue Service.
    
5. If the item is still usable, the Executive Director of Facilities Management (Facilities) may place a notice in the internal College newsletter to determine if there is interest by another College unit.
    
6. If another area of the College wants the item, Facilities will arrange to move the item to the new location. Once relocated, Facilities will complete and forward the Form to Financial Services, where the College fixed asset inventory records will be adjusted.
    
7. If no interest is shown, Facilities will forward the Form to Vice President of Financial Services with a disposition recommendation.
    
8. Form approval requirements are as follows:
   • items valued at less than $1,000 – area’s budget manager
   • items valued at $1,000 to $49,999 – Vice President of Financial Services
   • items valued at $50,000 and above – President
      
9. Upon approval of the Form, items deemed damaged beyond repair and upon inspection of the Facilities will be recycled or destroyed, and the Form forwarded Financial Services where the College fixed asset inventory records will be adjusted.
    
10. Items deemed usable and valued at less than $500 will be stored by Facilities until the next College surplus goods sale. Should there be no such sale planned in the near future, the follow step should be pursued.
     
11. Items deemed usable and valued at $500 to $49,999 should be advertised for sale using a variety of avenues, including but not limited to community/company/school contacts and electronic mediums. Bids should be solicited for any item valued at $5,000 or more. Should an item be too large to reasonably store, the College may sell the item in short order using only advertisements placed in publications within the College service area. Upon sale, the Form should be forwarded to Financial Services where the College fixed asset inventory records will be adjusted.
     
12. Upon expiration of a lease agreement for a College vehicle, the Vice President of Administrative Services will place a notice in the internal College newsletter. Interested parties may inquire at the dealership to which the vehicle was returned.
     
13. Proceeds from sale of College property less selling expenses, if any, will normally be distributed as 25% to the area disposing of the item and 75% to the General Fund.  Proceeds distributed in this manner must be spent within the current fiscal year by the area.  All exceptions must be approved by the President’s Cabinet.  

Responsibility: Vice President, Financial Services

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