Chapter 2 – Fiscal Management

22030.13 Surplus and Obsolete Property

• Each departmental facility maintaining warehouse inventories shall develop a viable program for disposal of surplus material.

  • Each facility shall establish a property survey board which shall determine whether items are surplus or obsolete and the methods to be used to dispose of the items.

  • The property survey board shall be composed of several section chiefs and chaired by a Correctional Administrator.

  • The board shall meet at least quarterly to make management decisions concerning disposal of surplus and obsolete material.

  • The goal of all property survey boards shall be to reduce the inventory investment and storage costs and to make storage space available for other functions.

  • A property controller shall identify and dispose of material.

• Several methods shall be employed to determine surplus, obsolete, or discontinued material.

  • Frequent inventory appraisals shall identify potential surplus conditions before they become real, by acknowledging the trend toward a slow or no activity status or an increase in inventory.

  • Stock records shall be used to determine when items are no longer in demand and should be removed from inventory.

  • Staff shall try to be aware of changing technology that contributes greatly to the stockpiling of obsolete and surplus material.

• Staff shall promote common parts usage to limit the total number of probable inventory items or urge a limitation of the variety of items.

• In plant operations, warehouse staff shall be promptly informed when equipment is pulled out of service so that repair parts for this equipment can be disposed of and removed from the inventory.

• All items identified as surplus or obsolete by the property survey boards shall be listed and submitted to the Department’s materials manager for review and analysis. The listing shall include a full description, age, condition, value at the current replacement cost, and the approximate area where the item is located in order to determine the most effective method for disposal of the property and to provide data on inventory reductions to the DGSDepartment of General Services’ Statewide Materials Inventory Management Program.

• Under no circumstances shall material, tangible or intangible, be disposed without proper documentation. A Property Survey Report, (STDStandard Form (DGS) Form 152), shall be prepared for all transactions involving material disposal and shall be approved in advance by the Department’s Materials Manager and the Office of Procurement’s State Surplus Program. The Department’s Materials Manager and the State Surplus Section shall instruct the facility to:

  • Transfer the material to another facility within the Department; or

  • Transfer the material to another state agency; or

  • Make a diligent effort to secure at least three competitive bids and sell the material.

• When materials are transferred to other state facilities including those within the Department, a STDStandard Form (DGS) Form 158, Transfer of Location of Equipment shall be prepared and distributed according to the instructions on the form.