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DHHS POLICIES AND PROCEDURES

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Section II:

Budget and Finance

Title:

State Surplus Property

Current Effective Date:

5/31/05

Revision History:

8/1/02

Original Effective Date:

2/1/96

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Purpose

The purpose of this policy is to establish state surplus property.

Policy

The responsibility for selling and disposing of all supplies, materials and equipment owned by the state and declared surplus belongs to the State Surplus Property Agency (SSPA).

Implementation

Property is disposed of in several ways: Sealed bid to the public, negotiated sales to qualified buyers, live auctions and transfers between and among state agencies at reasonable values.

Other eligible agencies include local government and qualified non-profit organizations. Those agencies may obtain surplus property at a fair market price based on actual high bids awarded at public openings on similar surplus property.

In order for a state or local agency or non-profit organization to acquire surplus property, a designated individual should visit, call or write SSPA identifying a need for certain items. If the items are not available at that particular time, SSPA will keep the request on files and notify the individual when the property is available.

Fixed assets become state surplus property when they are no longer needed in the agency. The agency can move the assets to SSPA for sale or transfer. When relocating the asset, the fixed asset system status code must be changed by completing the DSS-3613 Form.

After the item is sold, SSPA notifies the agency of the selling price. If the item was transferred, SSPA will notify the original agency as to which agency received the item. Entries must then be made to the fixed asset system to retire the asset.

*Note: SSPA has implemented an online state surplus system which will allow for on-line requests and notifications for surplus, transfers, and bids. Departments will better be able to track fixed assets as to whether they have been sold, junked, or transferred. This new online system will assist in having the fixed assets more accurately reflected on the books.

Reference

SSPA Agency, DHHS Office of the Controller


For questions or clarification on any of the information contained in this policy, please contact The Division of Budget and Analysis. For general questions about department-wide policies and procedures, contact the DHHS Policy Coordinator.


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