Surplus Property Disposal

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Surplus Property Disposal

• Rick Gentry
• North Kansas City Schools

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Surplus Property Disposal

• Authorization
• What do I have?
• Real Property
• Personal Property
• Methods of Disposal
• Questions

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Authorization

• Missouri Revised Statutes
• Chapter 177
• Section 177.073/177.091
• This section of Missouri law gives school
  districts the authorization to sell real or
  personal property that is no longer needed for
  educational purposes.
• Requirements for advertising are also included
  in this section of the law.

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Authorization

• Board of Education Policy
• Policy DN addresses the disposal and/or sale of
  District surplus property. (MSBA Policy
  designation)

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Authorization

• Grant Agency
• Check the guidelines and procedures of the grant
  that provide the funds for the purchase of
  equipment and/or materials.

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What do I have?

• Real Property
• Personal Property
• Junk!!!!!

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Real Property

• Seek and get authorization from the Board of
  Education to sell/lease real property.
• List property with one or more real estate
  brokers licensed by the state of Missouri.
• OR
• Advertise in local paper once a week for two
  consecutive weeks with the last one at lease
  seven days prior to the sale.
• 3) Property sold to the highest bidder.

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Real Property

• Proceeds from the sale of real property is placed
  in the capital projects fund.
• Have building/property appraised by a licensed
  appraiser.
• The same steps above are followed if selling a
  home constructed by students and owned by the
  district.

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Personal Property

• 1) Seek and get authorization from the Board of
  Education to sell/lease the personal property.
• 2) Advertise personal property for sale in local
  paper.
• 3) Personal Property sold to the highest bidder.

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Personal Property

• Proceeds from the sale of personal property is
  placed in the capital projects fund.

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JUNK!!!!

• Items that do not have any resale value or can
  not be sold because of no interest are disposed
  of in an environmentally friendly manner.
• Recycle steel, aluminum, glass, plastic
• Monitors and televisions demanufactured
• Donate to organizations that will use for
  disadvantaged families

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Methods of Disposal

• Transfer within District (administrative
  approval)
• Online Auction
• Onsite auction
• Sealed bid
• Local Government
• Community warm/shelter house

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Transfer

• Transfer items to another building that has a
  need. Typically furniture no longer needed by a
  program or department.
• Communicate availability through email or
  district hosted website.
• Communication with administrators and key
  personnel, administrative assistants and
  custodians.

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Online Auctions

• GovDeals.com
• Sell items on an online auction that functions
  similar to eBay.
• District pays a commission on all successful
  sales.
• Buyer is responsible for pickup and shipment of
  items.

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Onsite Auction

• Auction using a local auctioneer.
• Advertising, commissions for sale, clean up and
  disposal of items that do not sell or pieces that
  are left behind.
• Additional labor costs since these auctions are
  held on a weekend.
• Limited to local buyers, store items until
  auction.

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Sealed Bid

• Saved for large ticket items such as property,
  vehicles or large pieces of equipment.
• Advertising expenses, Open BOE meeting to open
  the bids and award to the highest bidder.

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Local Government

• Items can be given to local government within the
  boundaries of the school district without having
  to advertise.
• Approval of Board of Education still needed.

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Donation to Community Program

• Some Community programs can use student
  furniture, instructional materials or supplies to
  support the children of battered spouses,
  homeless, or displaced families.

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Other Items

• Fixed Assets
• Remove the cost and cumulated depreciation from
  your records
• Remove from Inventory
• Grants Federal/State
• Check grant guidelines for disposal.
• Who has to be notified?
• Method of disposal.
• Removal from Inventory

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Questions?

• Contact Information
• Rick Gentry
• rgentry1_at_nkcsd.k12.mo.us
• 816-413-5180