Page 23 - HCSD SOPandIC Manual

HINDS COUNTY SCHOOL DISTRICT
Standard Operating Procedures and Controls Manual

Inventory/Disposal of Obsolete Equipment/ Equipment Identification and Accountability

Title: Inventory

Subtitle: Disposal of Obsolete Equipment

Purpose: To dispose of items no longer in use and have no definable future use and to maintain the
schools without clutter.

Reference: DM – Fixed Assets Policy
Property Control Policy and Procedure Manual

Procedure:

Requests to dispose of outdated, obsolete and/or surplus books will be made to the School Business
Administrator by an administrative staff member. Surplus Property Report Form

Board policy will be followed concerning disposal. Equipment may not be sold directly to individuals. If
the estimated fair value or the property to be sold exceeds the salvage amount determined by the School
Business Administrator in any one sale, it will be sold at public sale (auction or sealed bid) to the highest
bidder. If the value is less than the amount, public sale is not required, but may be desirable.

All proceeds from the disposition of equipment or supplies will be deposited in the general fund.

Equipment Purchased with Federal Funds

In accordance with 2 CFR Part 200 .313(e) (1), (2) - Equpment Disposition, items of equipment with a
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. However, 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 the
sale by the Federal awarding agency’s percentage of participation, i.e., 100%, 50%, 20%. 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.

23