TRUST WIDE DOCUMENT. Procedure For Disposal/Sale Of Surplus Assets DOCUMENT TITLE: DOCUMENT NUMBER: ELHT/F03 v2

Transcription

1 TRUST WIDE DOCUMENT DOCUMENT TITLE: Procedure For Disposal/Sale Of Surplus Assets DOCUMENT NUMBER: ELHT/F03 v2 DOCUMENT PURPOSE: To ensure that controls are in place for the disposal and condemnation of assets. SUPPORTING REFERENCES Trust Standing Financial Instructions TARGET AUDIENCE: All Trust Personnel DISTRIBUTION: All Trust policy manuals and intranet AUTHOR(S): EXECUTIVE DIRECTOR RESPONSIBLE: Finance Department Director of Finance

2 CONSULTATION VIA DOCUMENT REPLACES POLICY COUNCIL: DATE ACCEPTED: AUTHORISED BY: Finance department Version one V1 February 2004 V2 December 2007 V1 February 2004 V2 January 2008 Audit and Governance Committee NEXT REVIEW DATE: January 2010 AMENDMENTS: Technical update to reflect organisational changes Page 2 of 8

3 Table of contents 1. Introduction Disposals Billing Procedures...5 Appendix 1 - REQUEST TO DISPOSE OF EQUIPMENT...7 Page 3 of 8

4 PROCEDURE FOR DISPOSAL/SALE OF SURPLUS ASSETS 1. Introduction 1.1 This procedure relates Sales; Part Exchanges and Condemned Items. 1.2 Responsibility for the notification of proposed disposals is with each Departmental Manager who will liaise with the Director of Operations or the Head of Facilities regarding any temporary storage or security requirements. 2. Disposals 2.1 The Departmental Manager must in all instances of disposal complete the form at Appendix I.He/She must be an authorised officer on the Trusts Delegation List which is maintained by the Financial Accountant. 2.2 The form requests the following information to be completed:- a description of the item, including its size, weight, age etc. date of purchase the serial number the name of the manufacturer the asset tag number/bar code (EBME) the condition of the item, whether it has been checked for safety, details of its maintenance history, hazard notices, or whether it is being condemned * the net book value of the item (obtained from ELFS)& estimated proceeds at disposal financial coding of the Capital /Revenue or Charitable Fund Item the location of the item details of potential buyers the name of the contact name& requesting the disposal authorisation by a delegated officer action by the Procurement Manager (PM)(for PM use only on the reverse of the form) *Liaison with the EBME Electronics Manager is essential and must be followed at all times. (Electronic Items only). The EBME Manager will report relevant condemned items to the Capital Officer ELFS. 2.3 On completion of the Form (accompanied with complete inventory of items of applicable) the form will be forwarded to the Deputy Director of Finance (not the PM) 2.4 The Deputy Director of Finance/Financial Accountant will ensure that the Form is Date Stamped on receipt; checked for authorised signatory and request confirmation of the item from ELFS regarding its Asset Status. 2.5 Upon satisfactory completion of the checks the Director of Finance will Authorise the recording of the Disposal. A copy will be sent to ELFS the original will be passed to the PM for formal disposal proceeding to commence. 2.6 The PM must ensure that the process of disposal is in accordance with the Trusts Standing Financial Instructions.Section 13 Para 3.1. Page 4 of 8

5 2.7 Wherever the PM should inspect the goods and determine the most appropriate means of disposal in consultation with specialised officers e.g. Health & Safety Officer, EBME Officer. The PM will ensure that any Part Exchange deals with suppliers provide the best value for money. 2.8 When an item is declared surplus to requirements the PM must in the first instance notify relevant Heads of Departments within the Trust for its possible re-use. (Private Offers from the members of the public cannot be considered at this stage) 2.9 If no offers are received after details have been circulated within the Trust then the PM will either:- invite competitive offers for the item(s) from commercial organisations(far enough in advance for potential buyers to view in operation washing machines) arrange for the item(s)to be offered at public auction(possibly on site) use a broker or contractor for scrap etc sell the item(s) back to the original supplier on mutually acceptable terms donate the item(s) to a hospital league of friends or other voluntary or charitable organisation invite private offers from individual members of staff 2.10 Only items with little or no commercial value may be offered for sale to staff. This will be at the discretion of the Director of Finance Under no circumstances should items of even negligible value be given way to staff, and no item should be sold without ascertaining if there is an alternative use for it Items that are offered to staff for sale should be made available for inspection. Offers should be invited in sealed envelopes by a specific closing date. It should be made clear that the best offer will be accepted and that it is the responsibility of the successful bidder to remove the item from the premises In the event of any sale of equipment or any other items, the PM will notify the Director of Finance the Capital Officer (ELFS) and the EBME Manager by copying the form at App I to all officers The Capital Officer(ELFS) will ensure that any Profit and Loss or Exchange is promptly and correctly accounted for through the General Ledger and Fixed Asset System In any event a part exchange of equipment requires the completion of the form at App I and must make reference to the purchase of the new goods, the requisition number, date of exchange etc. The form should be sent to the Deputy Director of Finance as normal, with a copy being attached to the Purchase Requisition for processing in the Procurement Department The Director of Operation or Head of Facilities will ensure that goods for disposal are kept secure at all times pending physical sale. 3. Billing Procedures Page 5 of 8

6 3.1 In accordance with the Trusts Standing Financial Instructions the Director of Finance is responsible for designing, maintaining and ensuring compliance with systems for the proper recording, invoicing, collection and coding of all monies due, and for taking appropriate recovery action on all outstanding debts. 3.2 On disposal of assets where a sale has been agreed, the PM will be responsible for raising a standard Request for Invoice Form. The detail on the form must include the Fixed Asset Number when appropriate. Only auctioned items will be excluded from this process. 3.3 The price will be the agreed Market Price between both parties and acknowledged by signature of the buyer and seller on the inventory/contract of sale drawn up by the PM, a copy of which will be given to the buyer. 3.4 Under no circumstances must the goods leave the premises until the buyer remittance has been credited and cleared the Trusts Bank Account. The PM will verify this with the Credit Controller ELFS. Notification will then be given to the purchaser where an organisation handover of goods will take place. 3.5 The application of VAT to the sale of goods will be clarified by the Financial Accountant on a regular basis. 3.6 Debt Recovery procedures will be applied in accordance with the Finance Directorates Policy. Page 6 of 8

7 East Lancashire NHS Trusts Procurement Department Appendix 1 - REQUEST TO DISPOSE OF EQUIPMENT This form must be forwarded to the Deputy Director of Finance, Park View Offices QPH on completion TRUST: Directorate Description of Equipment Speciality/Ward/Dept. Date of Purchase Manufacturer Serial Number Current Location Condition (Please 4) Very Good Good Fair Poor Part Exchanged for the purchase of Requisition No. Value of P.Ex. Nature of Disposal if not Part Ex? RESALE SCRAP CONDEMNED If resale, any potential buyers suggested? Date when Disposal required: made. Please allow at least 4 weeks for arrangements to be Arrangements to view Name Please print Tel. No. / E mail Address Are Service Records/Instruction Manuals available? Capital Asset YES NO Donated Asset YES NO YES Capital Asset Number: Net Book Value Estimated Proceeds on Disposal Income Codes for Proceeds: * To be completed by the Budget/Fund Holder CAPITAL ASSET * REVENUE ITEMS * DONATED ASSET COST CENTRE / FUND NO ACCOUNT Disposal requested by: Authorised by Departmental Manager Authorised by Director of Finance SIGN SIGN SIGN PRINT NAME & DATE PRINT NAME & DATE PRINT NAME & DATE Page 7 of 8

8 For East Lancs Procurement Department Use Only Date Request Received Signed Procurement Manager Finance Book Value Month to advertise in Aspel s Gazette Circulate within Division YES NO Deadline for Offers Disposal Arrangements: Invoice Request Actioned to Finance By:- Payment Confirmed Date Date arranged for the Collection of Goods Date:- Page 8 of 8