POLICY MANUAL - Disposition of Assets Policy No. 1600-023

POLICY MANUAL

PURPOSE:

1.1. Some Town assets become obsolete, damaged or surplus to needs.

1.2. This policy is a guideline to ensure the Town receives the greatest return for surplus assets or utilizes the most cost-effective method of disposal.

1.3. This policy applies to all tangible assets owned by the Town, except real property.

1.4. Assets with an estimated value of less than $400 are exempted from this policy unless pooled with other assets.

POLICY:

2.1. Each Director will advise the Director of Finance when an asset becomes obsolete, damaged or surplus to their department’s needs.

2.2. Obsolete, damaged or surplus assets shall be disposed in the following order of priority:

• 2.2.1. offered to other Town departments;
• 2.2.2. offered as a trade-in on a replacement asset;
• 2.2.3. offered by public auction or advertised for public tender and sold to the highest bidder.

2.3. Approval of the Chief Administrative Office is required for any other method not identified by this policy.

DISPOSAL:

3.1. If assets that are declared obsolete, damaged or surplus are determined to have a value which is less than the cost of disposition, including consideration of any environmental implications, such assets shall be disposed of by the least-cost method available.

3.2. Technology assets will be disposed of in accordance with this policy only after any medium containing stored data has been removed and destroyed by appropriate means to ensure the data is non-recoverable. If the storage medium cannot be removed cost-effectively, the device will be destroyed in its entirety.

3.3. Employees may participate in a public auction or tender process, unless they have a decision-making role in the disposal of the assets offered or in the conduct of the auction or tender opportunity.

RESPONSIBILITY:

4.1. Directors are responsible for administering this policy and obtaining the approval of the Chief Administrative Officer for disposal of assets under circumstances not foreseen by this policy.

4.2. The Director of Finance is responsible for the recording and reporting of tangible capital assets, including the disposal of obsolete, damaged or surplus assets and any proceeds from the sale of assets.

4.3. The Director of Corporate Administration is responsible for reviewing and updating this policy as needed and at least once every five years.

ATTACHMENTS: This space intentionally left blank.

DISTRIBUTION: Electronic file Y:\Administration\0340 Circulars, Directives, Orders, Manuals, Policies\50 Policies and procedures\Policies - Final\1600 - Finance