Mr. Rush stated that we will review our current collection agencies and other opportunities and options available to the University. He stated that we have only been submitting collection amounts with the Department of Revenue for two months and have not had a chance to fully evaluate the efficacy of this approach.

Accounting Surplus Declaration Process

Acting Vice President Rush reported the University's process to dispose of assets that have reached the end of their useful life. He stated that this process takes two weeks from initiation until the item is moved to the holding area by Facilities and Maintenance Operations.

  1. Department completes Property Disposition Form and obtains supervisor approval.
  2. Department routes Property Disposition Form to Purchasing Department to log for tracking purposes.
  3. Purchasing Department will then send Property Disposition Form to Accounting Department to update Fixed Assets system.
  4. Accounting Department routes Property Disposition Form to Facilities and Maintenance Operations to pick-up surplus item.
  5. Facilities and Maintenance Operations picks up the item from the department and takes it to the holding area. The items will accumulate until there are enough to make it worthwhile for pick-up from E-Scrap. Typically the items are computers and electronics.
  6. Dependent on condition and the type of surplus, item is redistributed, recycled, sold, discarded, or disposed of according to State guidelines (KRS 45A.425). For instance, E-Scrap vendor is a State vendor used for electronic/computer equipment; additionally, a bid process is used for the disposal of larger items, i.e. vehicles.
  7. The University is initiating a process to dispose of all items in the holding area annually in March and October. Items in the holding area may also be disposed of on an ad-hoc basis, if necessary.

Inventory Update

Acting Vice President Rush stated that the physical inventory was difficult and took longer than expected. He stated that a lot of items were out of place and hard to locate; items were either not tagged or not tagged properly. More important was that there was no inventory list from which to begin. Outside help was enlisted to assist with the inventory.

Acting Vice President Rush stated that at a previous Board meeting several Regents had requested a notice of anything missing valued over $50,000. He informed the

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