EFFECTIVE DATE: April 10, 2020
ISSUE #: 5
PRESIDENT: Juan Sánchez Muñoz
PURPOSE
This PS states the policy and procedures relating to the cannibalization of capital property
and the proper transfer/storage/salvage of capital controlled and non-capital property of the
University of Houston-Downtown (UHD).
DEFINITIONS
2.1 Cannibalization: The process of taking working parts from one piece of capital property
and installing it into another piece of property thereby rendering item as salvage.
2.2 Capital Property: Any property costing at least $5,000.00 and having a useful life of at
least one year.
2.3 Controlled Items: State designated property that must be secured and tracked due to the
high risk nature of the item. The property is valued between $500 and $4,999 and has a
useful life of at least one year. The specific assets include: desktop and laptop
computers, all firearms regardless of amount, stereo systems, cameras, video cameras,
video recorder/laserdisc players, camcorders, television/VCR combinations, television
sets, video cassette recorders, and data projectors.
2.4 Non-Capital Property: Items which do not meet the dollar value specifications of
capital property but do have a useful life of one year or more.
2.5 Salvaged Items: Property that is well beyond the condition of its intended usage.
2.6 Storage: Property items that are of no use to the department. Once placed in storage, the
items become part of the Property Management inventory and subject to auction or
transfer to another department. This is not a temporary storage place for departments to
place their property.
2.7 Surplus Items: Any university property that no longer fulfills the purpose for which it
was acquired.
POLICY
3.1 Cannibalization of property
3.1.1 Individual departments are not authorized to cannibalize UHD capital property.
Only Information Technology (IT) may cannibalize computer property, and
only Facilities Management (Facilities) may cannibalize some items of capital
property. Cannibalization will be used as a last resort to make an item
operational.
3.1.2 If Information Technology or Facilities Management cannibalize an item of
capital property, they must immediately notify Property Management by
forwarding a UHD Cannibalization Form, available on the Property Management forms site.
3.1.3 Upon receipt of the UHD Cannibalization form, Property Management will
change the property classification of the item ‘J’ for unserviceable/junk/
cannibalize/salvage and enter in the comment that the item has been
cannibalized. Property Management will also note if the item is expected to be
returned to working condition and when (based on the information provided). If
an item that had been cannibalized is put back in working order, the receiving
Department must notify Property Management by forwarding the UHD
Cannibalization form.
3.2 Transfer of property items to storage/surplus
3.2.1 Property that is not computer or computer related
3.2.1.1 Property that is determined to be unusable or unwanted within a
department should request the property to be removed by Facilities by
submitting a Work Request.
3.2.1.2 Facilities will review the work request checking that proper
authorization was given. Items are picked up from the departments by
Facilities and taken to the storage area.
3.2.1.3 Facilities will put the capital and controlled property in a designated
section in the storage area, and the non-capital items will be stored in
other areas.
a. The Property Manager is to occasionally report to the storage
warehouse to conduct an inventory of all capital items in the
warehouse.
3.2.1.4 Items in storage no longer belong to a particular department. Items
sent to storage are available to all departments. Capital property is then
designated as surplus to the university.
3.2.1.5 Once the items are removed from the campus, they are then removed
from the inventory and designated as “Disposed” on the Property
Management System. The organization receiving the donated assets
will also be recorded.
3.2.2 Property that is a computer or a computer-related item
3.2.2.1 A department should request that computer property determined to be
unusable or unwanted be removed by calling the Help Desk at x3000.
3.2.2.2 Information Technology picks up the items and stores them in the IT
storage areas. Items are marked as belonging to Information
Technology.
3.2.2.3 Property Management will list items no longer needed by Information
Technology as surplus. The items may remain in the IT storage room
but should be separated from other property and marked “surplus.”
3.2.2.4 Computers that are in acceptable condition, that are not of any possible
use to the university, are made available to the following in order of
priority as per government code Sec.2175.304 section (c):
b. Local school districts
c. Assistance organizations
d. UHD students
e. Computer recycling company on contract
3.2.2.5 If items are accepted by another Texas agency, it is the responsibility
of the accepting agency to pick up the items from the UHD campus.
When the accepting agency comes to pick up items, UHD property
tags are removed from items. All hard drives will be completely
cleared of software.
3.2.2.6 Once the items are removed from the campus, they are then removed
from the inventory and designated as “Disposed” items on the Property
Management System. The organization receiving the donated assets
will also be recorded.
3.2.2.7 Guidelines for local school districts, assistance organizations, or
computer recycling company.
a. Computers that are to be sent to the above referenced institutions
are to be itemized by serial number and description. Each piece
will be listed individually and re-examined for positive removal of
all tags and UHD logos and to ensure that all hard drives have been
cleared.
b. The local school district or assistance organization will be
contacted and provided a list of all property to be donated. They
will pick up the property after it has been palletized and shrinkwrapped.
c. A computer recycling company will be contacted to pick up the
property after it has been palletized and shrink-wrapped. They will
later provide a detailed inventory of the equipment received and
recycled.
d. Property donated or sold will be coded to the following property
classification codes and a reference entered for the organization:
1. Local school district code “08”
2. Assistance organization code “09”
3. Computer recycling company code “03”
3.2.2.8 Guidelines for computers sold to UHD students only.
a. Computers for this program will be surplus computers in good
working condition and selected by IT. They will be reported to
Property Management by tag and serial number.
b. UHD tags must be removed and hard drives cleaned.
c. IT will have written procedures for this program covering
everything from the selection of computers to the deposit of funds
into scholarship cost centers.
d. Computers sold by IT will be classified with property code “14.”
3.3 Transfer of property items to salvage
3.3.1 Property that is not a computer or a computer-related item
3.3.1.1 Items that are well beyond the condition of proper usage may be sent
to salvage with proper authorization. The department requesting the
move must submit a Work Request to Facilities.
3.3.1.2 Salvaged items are then taken down to the first floor and put in the
designated area set aside by Facilities. All salvaged property must be
identified as salvaged items so that Facilities will place these items in
the proper area in the warehouse.
3.3.1.3 Once the items are taken to salvage, Facilities will send a copy of the
completed email to Property Management. Included must be the name
of the person (printed) who moved the items, date of removal, and
signature of person who moved the items.
3.3.1.4 Property Management will mark the items as “Salvage” on the
Property Management System. Salvaged items will be available for
transfer to other agencies or sold at public auctions.
3.3.1.5 Once the items are sold or transferred, they are then removed from the
inventory and designated as “Disposed” on the Property Management
System. The organization receiving the donated assets will also be
recorded.
3.3.2 Property that is a computer or computer related
3.3.2.1 All problems with computers or computer-related property are to be
reported to Information Technology.
3.3.2.2 Information Technology then examines the item to determine if it can
be repaired. If this is not possible, the item may be cannibalized.
3.3.2.3 Those items that are no longer capable of being used properly are then
classified as salvaged items. Information Technology will erase any
memory or software existing on the computer.
3.3.2.4 Once the items are taken to salvage, Information Technology will send
a copy of the completed Capital Property Transfer/Move Request form
to Property Management. Included must be the name of the person
(printed) who moved the items, date of removal, and signature of
person who moved the items.
3.3.2.5 Salvage computer-related property is offered to the Texas Department
of Criminal Justice (TDCJ). If refused, it becomes available for public
auction as scrap. Salvage computer-related property can also be sold to
a computer recycling company.
3.3.2.6 When items are picked up by TDCJ or sold to a computer recycling
company, they are dropped from the inventory.
3.2.2.7 Guidelines for TDCJ or a computer recycling company:
a. Computers that are to be sent to TDCJ or a computer recycling
company are to be itemized by serial number and description. Each
piece individually will be listed and be re-examined for positive
removal of all tags and UHD logos and to ensure that all hard
drives have been cleared.
b. TDCJ or the computer recycling company will be contacted and
provided a list of all property to be transferred.
c. If acceptable, TDCJ or the computer recycling company will pick
up the property after it has been palletized and shrink-wrapped.
d. Property transferred will be coded to the following property
classification codes and a reference entered if a computer recycling
company is used:
1. TDCJ code “15”
2. Computer recycling company code “03”
PROCEDURES
4.1 Disposal of property should be done by submitting a Work Request to Facilities
requesting that they pick up salvage/surplus items. Facilities will email Property
Management for approval.
4.2 For computer-related items, call Information Technology at x3000 and request they
pick up the property.
4.3 Documentation for transfer of property to Information Technology or property from
Information Technology will be brought by the IT technician who picks up the
property. Signatures from the property custodian, or in their absence the alternate
custodian or department head, are required. The form is then forwarded to Property
Management by Information Technology. A copy must be kept by the Property
Custodian of the disposing department.
4.4 Surplus items taken to Facilities are made available to other departments before being
taken to auction. Surplus computer property can be donated to local school districts and other 501(c)3 organizations, sent to the Texas Department of Criminal Justice for
rebuild, sold to a computer recycling company, or sold to UHD students.
4.5 See Property Management Accounting site for forms.
REVIEW PROCESS
Responsible Party: (Reviewer): Property Manager
Review: Every three years on or before November 1st
.
Signed original on file in Employment Services and Operations
POLICY HISTORY
Issue #1: 03/31/00
Issue #2: 11/05/10
Issue #3: 09/16/14
Issue #4: 02/01/19
REFERENCES
Texas Government Code Chapter 2175
