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7400 Cannibalization or Disposal of Salvage Property

DFPS Asset Management Handbook February 2011

Salvage property means state property that, through use, time, or accident, is so damaged, used, or consumed that it can no longer serve the purpose for which it was originally intended. Examples of salvage property are unrepairable printers and projectors, and TVs with broken tubes.

Cannibalization is the authorized removal of components from one item of property for installation on another item of property to meet a specific requirement, or to return an item to service.

Salvage property can be sold (at a local sale for scrap) or destroyed. If the salvage property is a capitalized or controlled item on SPA, DFPS must first request written Delegation of Authority and a sale number from the State Surplus division of the TFC.

The decision to allow cannibalization is delegated to Asset Process Support in consult with the technical experts or other management levels.

7410 Processing Salvage Property

DFPS Asset Management Handbook February 2011

DFPS programs and business units may not destroy or dispose of state-owned property without prior notification of, and approval from, the statewide property coordinator.

Staff must promptly notify the DFPS statewide property coordinator if property is:

  •  used for parts; or

  •  otherwise rendered permanently unusable.

DFPS programs and business units may not declare any leased property as salvage property. Staff immediately notifies the DFPS Asset Management unit if any leased property is damaged.

Regional Inventory Coordinator

The regional inventory coordinator completes and forwards the top portion of the HHS-AM05, Request to Salvage Property, to Asset Process Support.

DFPS Asset Process Support

DFPS Asset Process Support signs and returns the partially completed HHS-AM05 to the Regional Inventory Coordinator within three business days, who assists the requester in the completion of the salvage process.

Regional Inventory Coordinators

Regional Inventory Coordinators assist the requester and RD in ensuring that:

  •  all labels identifying the salvage property as belonging to DFPS are removed, including any barcode label, asset identification number, state seal, or DFPS name or logo; and that any barcode labels are returned to the asset records coordinator; and

  •  each item is completely destroyed such that it cannot serve the purpose for which it was originally intended.

Requester and RD

After disposal, the requester and RD:

  •  complete the bottom portion of HHS-AM05; and

  •  forward the HHS-AM05 to DFPS asset records coordinators to certify completion of disposal.

7420 Cannibalization Procedures

DFPS Asset Management Handbook February 2011

Property no longer operable or cost-effective to repair can be cannibalized for parts with approval from DFPS Asset Process Support. Cannibalized items are not to be reported as surplus to the TFC.

1.   The requester completes and sends HHS-AM05 to DFPS Asset Process Support via the DFPS INVENTORY mailbox.

2.   DFPS Asset Process Support approves or disapproves request to cannibalize property.

3.   The requester, if approved, cannibalizes the property with guidance from Asset Process Support. When cannibalization is complete, the requester removes and sends to DFPS asset records coordinators the barcoded tag from the item and signed HHS-AM05 stating that the property has been properly cannibalized. The requester then sends the remains of the property to a designated holding area for scrap or destruction. 

4.   Upon receipt of signed HHS-AM05 and the tag, the Asset records coordinators retire the item from the property accounting system.

Excess parts from the cannibalized property must be disposed of through the standard surplus or salvage process.

7500 Disposing of Real Property

DFPS Asset Management Handbook February 2011

The Texas Health and Safety Code, Sections 533.084 and 533.087, authorizes DFPS to lease, transfer, or otherwise dispose of real property under its management and control, including improvements. The DFPS commissioner, or designee, approves all such transactions. DFPS does not typically own real property. Questions should be directed to the Asset Management unit.

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