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7000 Disposals of Property

DFPS Asset Management Handbook February 2011

Some of the most common ways to dispose of an asset are:

  •  sending the asset to surplus;

  •  auctioning the asset;

  •  selling the asset; or

  •  cannibalizing the asset.

DFPS should offer excess property to other divisions and departments within DFPS and the HHS enterprise before offering it outside the HHS enterprise. This ensures that the HHS enterprise is getting the best benefit possible for all state property.

Avoiding Conflict of Interest

A DFPS employee must avoid conflict of interest, as well as the appearance of conflict of interest, related to the management of or handling of state property matters.

7100 Leased Equipment

DFPS Asset Management Handbook February 2011

Leased computers, laptops, or servers cannot be designated as surplus or salvage property. Excess leased equipment must be maintained in its assigned location code until it has been either placed back into service or returned to the contract vendor.

7200 Sanitizing DFPS Computers, Hard Drives, and Data Storage Devices Before Surplus or Salvage

DFPS Asset Management Handbook February 2011

Ensuring compliance with federal and state statutes associated with confidential information, such as the Health Information Portability and Accountability Act of 1996 (HIPPAA) and the Family Educational Rights and Privacy Act (FERPA), requires purging all data in computers and electronic storage devices before sending the equipment to surplus.

Before sending to surplus, all computers and electronic storage devices, including hard drives, laptop computers, servers, main frame computers, and handheld computers must be purged of all software and data utilizing at least a three-pass binary overwrite method. Any software or data files within their retention period must be moved to current systems or another suitable storage format.

After purging software and data files, IT technicians provide written verification that the assets have been sanitized.

DFPS Asset Process Support must ensure that all computer equipment be surplused or salvaged has been verified by an IT technician as sanitized. The DFPS Asset Management unit cannot process surplus computers, laptops, or servers without verification that the equipment has been sanitized. 

7300 Surplus State Property

DFPS Asset Management Handbook February 2011

The SPA Process User’s Guide defines surplus property as “any personal property which is in excess of the needs of any state agency and which is not required for its foreseeable need. Surplus property may be new or used but must have additional useful life.”

7310 Acquisition of Surplus State Property

DFPS Asset Management Handbook February 2011

DFPS employees may not bid or otherwise acquire property designated as surplus unless it is made available to the general public through the TFC storefront.

7320 Notifying DFPS Asset Management Unit of Surplus Property

DFPS Asset Management Handbook February 2011

If property is ready to be surplused, staff sends an e-mail to the regional inventory mailbox with the following information:

  •  Asset Number

  •  Property Description (including condition)

  •  Serial Number

  •  Contact Name

  •  Property Location

  •  Contact Phone Number

  •  Contact Fax Number

  •  Verification of Sanitation (if applicable)

7330 Advertising Surplus Property Internally

DFPS Asset Management Handbook February 2011

DFPS makes every attempt to relocate property for continued use before taking the final step of disposal. Toward that end, DFPS Asset Management unit maintains a list of available DFPS property and forwards it monthly to regional and divisional directors.

Staff may request items from the available property list by e-mailing Inventory mailbox with:

  •  division name;

  •  item description;

  •  business need;

  •  the requested delivery location; and

  •  contact information, including name and phone number.

If the requested property is a tracked asset, the DFPS Asset Management unit or regional property coordinator prepares HHS-AM01, Individual Inventory and Equipment Transfer, to transfer the requested item.

Items remaining on the available property list over two months will be moved to the surplus or salvage process.

7340 Advertising Surplus Property Externally

DFPS Asset Management Handbook February 2011

Per SPA procedures, the DFPS Asset Management unit advertises surplus items on the comptroller’s site for 10 business days, providing other state agencies, political subdivisions, and public assistance organizations the opportunity to view and request DFPS surplus property.

Requests are processed on a first-come, first-served basis, within the following prioritization: state agencies have priority over political subdivisions and eligible public assistance organizations.

Once sold, the transfer is coordinated by the DFPS Asset Management unit in accordance with policy.

  •  If an item is requested by another state agency, the surpluser (either RIC or IT staff) completes a HHS-AM06 (Interagency Equipment Transfer Record) and forwards to the DFPS INVENTORY mailbox for update to SPA.

  •  When an entity other than a state agency requests surplus property, Asset Process Support reviews the request and determines whether the organization is eligible to receive the surplus property before the request is processed. When the political subdivision or public assistance organization picks up surplus property, the organization’s representative must sign a TFC Certificate of Acquisition.

7350 If Property Remains Unacquired

DFPS Asset Management Handbook February 2011

If the property is not acquired, the asset records coordinator must indicate in SPA the next course of action to be taken by TFC (bid, auction, storefront, or TDCJ). This should be done immediately after the 10-day advertisement period. Or, the agency may choose to advertise the property again.

DFPS’s default election for non-data processing equipment is the TFC storefront. Data processing equipment must be transferred to a school district, open enrollment charter school or the Texas Department of Criminal Justice. DFPS may not collect a fee or other reimbursement for the transfer. Data processing equipment cannot be sold to the general public.

Items placed in storage for the surplus process must be removed from storage within 90 days of the date surplusing begins.

Once a property is advertised for surplus, it cannot be re-deployed for use until it is formally removed from the surplus process by the asset records coordinators.

Staff may not move property designated for surplus or salvage until authorized to do so by the asset records coordinators.

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