Capital Equipment Sales

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Sale of Non-Federally-Funded Capital Equipment to Faculty, Staff or Outside Companies

  • Capital equipment that is no longer in use and is considered surplus by the equipment owner, portfolio, Institute and the Controller's Office may be sold to Rensselaer faculty, staff, or outside companies.
  • The department head must ensure that no other individual in the portfolio or the Institute has need of the capital equipment at Rensselaer.
  • The department wishing to sell a capital equipment item must contact the Controller's Office to verify that the item is a piece of capital equipment, as well as to agree upon a price for the item.
  • If the item is fully depreciated, a mutually agreed-upon price is set by the property administrator, the buyer's supervisor and the buyer.
  • If the item is not fully depreciated, the faculty or staff member must pay the undepreciated value or the fair market value of that item.
  • A Bill of Sale must be completed by filling in the amount of sale, adding 8% sales tax, and obtaining a signature by a Rensselaer dean, director, or department head.
  • The department that has responsibility for the capital equipment being sold will collect the funds from the sale of the capital equipment. If the capital equipment was originally purchased with Institute start-up funding, the funds from the sale of the capital equipment will be returned to the Institute's Budget Office. If the capital equipment was purchased with department funding, the funds from the sale of the capital equipment can be retained by the department, although the department must deposit the sales tax collected into 135493-9935-857.
  • An Capital Asset Change Request Form must be completed so that the Controller's Office can properly maintain its records. Please refer to Section 9 of the Capital Equipment User Guide for directions on how to fill out this form.
  • Completed forms must be forwarded to the Controller's Office in the Proctor's Building. 
Accordion

Sale of Federally-Funded Capital Equipment to Faculty, Staff or Outside Companies

Prior to disposal, the department must obtain disposition instructions from the federal agency as detailed in:

2 CFR § 200.313 – Equipment Uniform Guidance

(e)Disposition. When original or replacement equipment acquired under a Federal award is no longer needed for the original project or program or for other activities currently or previously supported by a Federal awarding agency, except as otherwise provided in Federal statutes, regulations, or Federal awarding agency disposition instructions, the non-Federal entity must request disposition instructions from the Federal awarding agency if required by the terms and conditions of the Federal award. Disposition of the equipment will be made as follows, in accordance with Federal awarding agency disposition instructions:

(1) Items of equipment with a current per unit fair market value of $5,000 or less may be retained, sold or otherwise disposed of with no further obligation to the Federal awarding agency.

(2) Except as provided in § 200.312 Federally-owned and exempt property, paragraph (b), or if the Federal awarding agency fails to provide requested disposition instructions within 120 days, items of equipment with a current per-unit fair-market value in excess of $5,000 may be retained by the non-Federal entity or sold. The Federal awarding agency is entitled to an amount calculated by multiplying the current market value or proceeds from sale by the Federal awarding agency's percentage of participation in the cost of the original purchase. If the equipment is sold, the Federal awarding agency may permit the non-Federal entity to deduct and retain from the Federal share $500 or ten percent of the proceeds, whichever is less, for its selling and handling expenses.

(3) The non-Federal entity may transfer title to the property to the Federal Government or to an eligible third party provided that, in such cases, the non-Federal entity must be entitled to compensation for its attributable percentage of the current fair market value of the property.

(4) In cases where a non-Federal entity fails to take appropriate disposition actions, the Federal awarding agency may direct the non-Federal entity to take disposition actions.

  • Once the Institute has confirmed that it has satisfied disposition requirements from the governing federal agency as detailed in 2 CFR § 200.313 – Equipment Uniform Guidance it may then proceed to dispose of the capital equipment.
  • Federally funded capital equipment that is no longer in use and is considered surplus by the equipment owner, portfolio, Institute and the Controller's Office may be sold to Rensselaer faculty, staff, or outside companies.
  • The Dean, VP, Department Head and or Property Administrator must ensure that no other individual in the portfolio or the Institute has need of the capital equipment at Rensselaer.
  • The department wishing to sell a capital equipment item must contact the Controller's Office to verify that the item is a piece of capital equipment, as well as to agree upon a price for the item.
  • If the item is fully depreciated, a mutually agreed-upon price is set by the Property Administrator (who may contact an outside company for a valuation quote) the buyer's supervisor and the buyer.
  • If the item is not fully depreciated, the faculty or staff member must pay the undepreciated value or the fair market value of that item or the valuation cost, whichever is greater.
  • If the capital equipment is sold to someone or company outside of the Institute A Bill of Sale must be completed by filling in the amount of sale, adding 8% sales tax, and obtaining a signature by a Rensselaer Dean, VP, Director, or Department Head and the Property Administrator.
  • The department that has responsibility for the capital equipment being sold will collect the funds from the sale of the capital equipment. If the capital equipment was originally purchased with Institute start-up funding, the funds from the sale of the capital equipment will be returned to the Institute's Budget Office. If the capital equipment was purchased with department funding, the funds from the sale of the capital equipment can be retained by the department, although the department must deposit the sales tax collected into 135493-9935-857.
  • A Capital Asset Change Request Form must be completed so that the Controller's Office can properly maintain its records. Please refer to Section 9 of the Capital Equipment User Guide for directions on how to fill out this form.
  • Completed forms must be forwarded to the Controller's Office in the Proctor's Building, 3rd Floor.