Policy on Disposal of Fixed Assets and Allocation of
Proceeds of Disposition (including Regulations)
"Fixed Assets" are defined to include all of the
University's assets, funded from any source, including land, buildings,
furniture, equipment, books, artwork and other assets.
"Disposal" is defined as the transferring of title
to another party by way of sale or gift and the removal of assets from service
due to obsolescence.
Disposals of all land and
buildings (real estate), and of all other fixed assets with a fair market value
in excess of $5 million*, and the allocation of the proceeds, require the
approval of Business Board.
The Business Board delegates
to the Administration the authority to approve disposals of all other fixed
assets and the allocation of any proceeds thereof.
Disposals where the fair
market value is in excess of $270,000* and not greater than $5 million* shall
be reported by the Administration to the Business Board for information.
* In real terms - these
amounts shall be adjusted periodically to reflect inflation.
Approved by the Business Board
June 25, 1991
(signed)
R. G. White
Assistant Vice-President,
Finance
Regulations on Disposal of Fixed Assets and
Allocation of Proceeds of Disposition
These regulations are issued pursuant to the policy approved
by the Business Board on June 25, 1991. All approval references in the
following clauses refer only to those fixed assets for which disposal authority
has been delegated by the Business Board to the administration.
All disposals must be reported to the Office of the
Controller.
1. Any one of a Chair, Director of an institute or centre,
Dean, Principal or Head of an administrative department, or a Director of an
administrative division, together with the Controller, may approve the disposal
and allocation of net proceeds of disposition where:
1. the original cost is less than $70,000 in real terms;
and
2. the fair market value at the date of disposal is less
than $7,000 in real terms; and
3. the disposal is not to a staff member or to a relative
of a staff member.
2. Any one of a Vice-President, an Assistant
Vice-President, or a Vice-Provost, together with the Vice-President -- Business
Affairs, may approve the disposal and allocation of the net proceeds of
disposition where:
1. the fair market value is $270,000 or less; or
2. the disposal proceeds are less than the fair market
value; or
3. the disposal is to a staff member or to a relative of
a staff member.
4. any other condition required in clause # 1 is not met.
3. The President may approve the disposal and allocation
of the net proceeds of disposition where the fair market value is in excess of
$270,000 and not greater than $5 million. Such disposals shall be reported to
the Business Board for information. All disposals where the fair market value
exceeds $5 million shall be recommended to the Business Board for approval.
4. Notwithstanding the approval authorities specified
above, all disposals require the approval of at least one level of authority
higher than that requesting the disposal.
The fair market value must be determined for all disposals
as a prior condition of approval. The Director of Procurement Services shall
have the authority to determine the fair market value for all disposals. The
Director of Procurement Services will consult with University experts in
establishing the fair market value, where appropriate (e.g. computers).
(signed)
R. G. White
Assistant Vice-President,
Finance