Surplus Property Procedure 1.43

Surplus Property Procedure

Effective Date: Feb. 27, 2026
Procedure Section: Capital Assets & Construction
Procedure Number: 1.43

1. Procedure Statement

This procedure outlines the conditions and guidelines by which Arkansas State University System (the “ System”) institutions (“Institution”) may transfer System or Institution property to another entity or person outside the System or Institution, including the sale and redistribution of surplus property, in accordance with applicable laws, rules, delegation orders, and memorandums of understanding.

2. Scope of Procedure

A. Property, as it is used in this procedure, is defined pursuant to the Arkansas Procurement Code, which shall include all personal property purchased with System or Institution funds, purchased with grant or research funds, or donated, including without limitation, goods, materials, furniture, supplies, books, equipment, wares and merchandise, non-Fleet vehicles, off road vehicles, vehicle parts, trailers, aircraft, boats, and drones, regardless of the cost and in accordance with applicable law rules, delegation orders, and memorandums of understanding..

B. Property that is not within the scope of this procedure includes:

1. Real property, including sales, purchases, leases, or easements;
2. Computer and consumer electronic items as defined in Arkansas Code Annotated § 25-34-103, including but not limited to computers, hand held computers and devices, monitors, printers, phones, tablets, copy machines and other IT-related equipment, which shall be disposed of in coordination with the Department of Shared Administrative Services – Marketing & Redistribution (“M&R”) and in compliance with the Arkansas Computer and Electronic Solid Waste Management Act;
3. Fleet vehicles, which are defined as motor vehicles registered with the Arkansas Department of Finance and Administration as part of the fleet of state-owned vehicles, which shall be disposed of in coordination with M&R;
4. Grant funded property of which the grant terms explicitly require the property to be returned to the federal government or the grantor entity;
5. Intellectual property;
6. Items prohibited from disposal or for which have prescribed disposal procedures and restrictions under applicable federal or state law.

3. Surplus Property Disposal Form

A. The requestor shall obtain from the Institution’s agency procurement official (“APO”) or other designated employee (the “Surplus Property Coordinator”) the Surplus Property Disposal Form for the proposed transfer or disposal of the property. The requestor shall provide the following information in the Surplus Property Disposal Form:

1. Reason for transfer;
2. Item descriptions sufficient for identification to the extent possible, for example, make, model, date of purchase, original cost, serial number, asset number, source of funding for original purchase;
3. Dollar amount offered or value of trade-in property received, as applicable
4. Market value or offered trade-in price, with a description of such determination
5. A description of the intended recipient of the property in the event of a proposed property transfer in which an intended recipient of the surplus property has been identified (i.e. a donation to an identified specific nonprofit or a trade-in with an identified vendor).
6. Description of any relationship between requestor and intended recipient, as applicable
7. Signature of the requestor

B. The Surplus Property Coordinator will designate in the Surplus Property Disposal Form the appropriate method of transfer:

1. Public auction or other resale, including onsite sales;
2. Online surplus sales platforms;
3. Resale or transfer to intrastate agencies, including higher education institutions or school districts;
4. Resale or transfer to nonprofit entities;
5. Cannibalization;
6. Designation and sale as scrap;
7. Disposal as having no scrap or resale value;
8. Trade-in;
9. Negotiated sale;
10. Lease or donation.

C. The Surplus Property Coordinator will submit the completed Surplus Property Disposal Form for signatures. The signature approval section must be completed prior to the proposed transfer from the following. The required signatures will be determined by each Institution, but minimally shall include an Institution’s equivalent position to the following:

1. Department Chair;
2. Dean/director or associate vice chancellor;
3. Surplus Property Coordinator;
4. Vice Chancellor for Finance and Administration or designee.

4. Surplus Property Disposal

A. Upon all signature approvals being obtained on the Surplus Property Disposal, the Surplus Property Coordinator will oversee the sale of the Surplus Property, including but not limited to setting of a sale price for the property, oversight of the method of transfer, oversight of any negotiated sale, final disposal or transfer of property and completion of applicable records or documents.

B. The Institution shall generate and issue an invoice to bill the intended recipient, as applicable.

5. Surplus Property Coordinators

A. Surplus Property Coordinators shall be an Institution’s APO, as defined in Arkansas Code Annotated § 19-61-301, or an identified employee the APO delegates as the Surplus Property Coordinator. In the event the APO delegates the Surplus Property Coordinator role to another employee, the APO will retain final authority on matters under this procedure.

B. Surplus Property Coordinators must:

1. Complete any training required by the Department of Shared Administrative Services (“SAS”) necessary to dispose of surplus property at their institutions, campuses, units, and divisions;
2. Faithfully discharge their delegated authority to dispose of surplus property at their campuses, units, and divisions in compliance with applicable law, rules, policies and conditions set forth in any relevant delegation orders on which they rely for authority;
3. Report to SAS the identities and contact information of the APOs who are exercising their delegated authority to dispose of surplus property;
4. Keep records of the surplus property disposed of at the campuses, units, and divisions in compliance with applicable law and the conditions set forth in any relevant delegation orders on which they rely for authority;
5. Make records of the surplus property disposed of at the campuses, units, and divisions of the Institution available to SAS upon request; and
6. Pay to SAS the proceeds from the sale of surplus Information Technology Electronics as required under Ark. Code Ann.§ 25-34-108 and forty percent (40%) of the proceeds from the sale of any Fleet Vehicles. All other proceeds from the sale of surplus property will remain with the campuses, units, and divisions of the University.

C. APOs, Institution administrators, and Surplus Property Coordinators, or immediate family members thereof, shall not be entitled to purchase surplus property.

6. Ethics

A. No System or an Institution employee shall use or attempt to use his or her official position to secure special privileges or exemption for himself or herself or his or her spouse, child, parents, or other persons standing in the first degree of relationship, or for those with whom he or she has a substantial financial relationship that is not available to others except as may be otherwise provided by law.  To that end, realizing personal gain or gain for a spouse, child, parents, or other persons standing in the first degree of relationship, or for those with whom the employee has a substantial financial relationship, through the disposition of surplus property, is strictly prohibited. Violations will be handled consistent with this procedure and policies, rules and laws.

[1] Adapted from Ark. Code Ann. § 19-61-602
[1] Adapted from the Code of Arkansas Rules – Rules on Conflicts, 21 CAR § 2-103