Policy and Procedures for the Condemnation/Disposal of Assets

Subject: Date of implementation: Date of review: Person responsible for Policy implementation and review: Policy location: 1.0 Introduction
It is important we have in place a clear policy, procedures and records for the control of assets, which are to be disposed of by sale, donation, surplus/waste, or by transfer to another department. The Shared Services Agency Estates & Facilities Directorate have therefore developed this policy for implementation across all four Birmingham Primary Care Trusts. The policy is aimed at all staff, in particular Directorate Managers, Budget Holders and Senior Managers who have authority for asset(s), and has been written on the basis that the levels of authority are in line with the Trusts Financial Authority Card thresholds and is designed to compliment the Trusts Standing Financial Instructions and Standing Orders. It is divided into sections, each being related to specific departments, which identifies the responsibilities each have when disposing of assets. The sections are: Senior Departmental Managers, Budget Holders Responsibilities Estates & Facilities Department Responsibilities Operational Estates Department Procurement Department Responsibilities IT Department Finance Department Responsibilities

Condemnation/Disposal of Assets 12 February 2004 1 February 2006 Director of Estates (Shared Services Agency) Trust Intranet Site/S Drive

The policy also differentiates between Inventory Assets and Capital Assets together with the responsibilities that go along with each category of Asset. A list of useful names and contact numbers that might aid staff in implementing this policy is included at Appendix 14.

CONDEMNATION AND DISPOSAL OF ASSETS

2.0 Aim
To set in place clear processes and procedures which can be understood and followed by all Trust staff.

3.0 Objectives
3.1 To ensure asset holders maintain and update inventories of all assets within their Departments. 3.2 To identify equipment that is surplus to requirements. 3.3 To avoid retaining surplus equipment. 3.4 To maximise income to the Trust. 3.5 To discharge the Trusts duty to optimise the use of assets. 3.6 To make Senior Managers, Directorate Managers and Budget Holders aware of the financial impact on budgets if Assets with live net values are disposed of.

4.0 Definitions
ASSET Is a generic term which can mean any type of Fixed and Unfixed equipment such as desks, tables, chairs, filing cabinets, office type furniture, medical devices, vehicles, IT equipment etc. Any fixed or unfixed asset with a value of 5,000.00 inclusive of VAT and is recorded on Capital Asset Register. Any unfixed asset with a value of less than 5,000.00 inclusive of VAT and is not recorded on the Capital Asset Register but should be recorded on the Departmental Managers Inventory lists/register. The Capital Assets value, which is on the Capital Asset Database An asset that is not physically attached/secured to a building. Can be either land, buildings, engineering plant and equipment and fittings, which are fixed in place.

CAPITAL ASSET INVENTORY ASSET

NET BOOK VALUE UNFIXED ASSET FIXED ASSET

DEPARTMENTAL MANAGER Referred to in this Policy can be either a Senior Managers Line Manager or Head of Department/Section Team SENIOR MANAGER/ BUDGET HOLDER Can be a person within the department who is either a Budget Holder or Manager that has authority to purchase equipment in accordance with authorised Authority Card threshold.

DEPARTMENTAL DIRECTOR Overall Head of Department.

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5.0 General Principles

5.1 The disposal of surplus equipment and consumable stock is subject to the requirements of Trusts Standing Financial Instructions and Standing Orders. (This policy is to be read in conjunction with the Trusts Standing Orders and SFIs). 5.2 The details contained within this policy may also require references to: the Consumer Protection Act 1987 the Trade Description Actions 1968 and 1972, Section 3 and 6 of the Health and Safety at Work Act 1974, Medical Devices Guideline and the Electrical Equipment (Safety) Regulations 1994. Note, this list is not exhaustive but indicates the areas which Budget Holders, Managers will need to consider in some instances. 5.3 Accurate registers of all Capital Assets, including land, buildings, vehicles, furniture and equipment etc, must be kept for security reasons, and to ensure that the correct level of Capital Charges are calculated on each of the Assets. The Estates and Facilities Department have the responsibility of maintaining the up-to-date Capital Asset Register for all four Primary Care Trusts. (See 4.0 for description of a Capital Asset). The Estates and Facilities Department are also responsible for ensuring that the annual validation exercise is undertaken in order to ensure movements are captured. Copy of the current Capital Asset Register is available to each Budget Holder. 5.4 As stated in the Trusts SFIs, it is the responsibility of each Departmental Manager to keep a register/inventory of furniture and equipment within their department that is less than 5,000.00 (inc. VAT) i.e. all assets not included on the Capital Asset Register. Any changes should be undertaken in accordance with this policy. For example, if a piece of furniture is transferred from one service area to another, it should be taken off the list of the original department and added to the list of the new one. Any items disposed of should be similarly recorded. All items recorded on this Register will be known for the purposes of this document as Inventory Assets. 5.5 It is the responsibility of each Departmental Manager to keep a record of all consumable stock held in their department or associated managed areas. 5.6 This policy will cover most types of equipment. However, it must be accepted that for specialist equipment, such as medical equipment, IT hardware and refrigerators, where safety and data protection factors must be considered when disposing of such items, special arrangements will be made but the basic principals of the disposal process will be as detailed in this Policy. 5.7 These procedures are to be followed by all Senior Managers, Departmental Managers and Budget Holders with responsibility for the provision and disposal of assets in line with the Authority Card thresholds, and should also be brought to the attention of all subordinate staff for information. 5.8 To give full consideration to the nature and use, or potential use to which the item may be put and if it is in the best interest of the PCT, to make the item available for purchase. For example, all vehicle disposals need to be considered fully, ie. is the vehicle to be sold for further use or as scrap only. Where a vehicle is sold for scrap only it must be made clear to the purchaser, as should the fact that the vehicle registration papers will be forwarded to the National Vehicle Licensing Centre, for de-registration.

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5.9 The Policy outlines a procedure that can be clearly audited. It also allows a central record of all Capital Assets disposals, which is to be kept by the Estates and Facilities Department. And local records of transfers and disposals should also be kept for all non-capital Inventory Assets by Senior Managers, Departmental Managers this being in accordance with the S.F.Is. 5.10 This policy is designed to highlight to Departmental Managers/Budget Holders the importance of the procedure so as to avoid incurring any financial penalties within their respective budgets if Capital Assets that still have an associated Net Book Value, are disposed of.

6.0 Senior Managers/Departmental Managers/Budget Holders - Procedures for the Disposal of Surplus/Obsolete/Condemned Equipment Inventory Assets
A flow chart that will aid you with this procedure is included at Appendix 1. 6.1 Items for Disposal (or Storage) and Transfer 6.1.1 If the assets are Inventory Assets the Departmental Manager will need to estimate the value of the asset and include this on the Authorisation schedule. The total value of assets that are to be disposed of is then used to establish the level of authority required to approve the disposal. 6.1.2 Electrical equipment identified for possible sale must be inspected by the Estates Department before removal from the department (contact the Estates Help Desk). 6.1.3 Any article used for invasive, analytical or diagnostics procedures that come into contact with blood, body fluid or other pathological specimens will require decontamination prior to sale. (See Decontamination of Medical Devices Policy). Note: Estates and Facilities will only remove items that bear a decontamination certificate completed in full. 6.1.4 Once the Senior Manager is satisfied that the equipment is still surplus to requirements and any financial implications can be met, the Schedule of Equipment is to be sent to the Departmental Director, depending on the level of authorisation required, using the appropriate memorandum (See Appendix 7). 6.1.5 The memorandum will then be authorised and sent to the respective PCT Finance Director for approval then onto Procurement for disposal using the most appropriate method. 6.1.6 Where equipment is to be stored, the Departmental Manager will need to consider whether there is any storage space with the Primary Care Trust to house the surplus equipment. If not, the Estates and Facilities Department can arrange this but any associated costs will be the responsibility of the relinquishing Department. 6.1.7 Where equipment is to be transferred the Departmental Manager will need to ensure the surplus equipment is removed from their Inventory and put on the receiving owners. 6.1.8 Contact the Estates and Facilities Help Desk to request removal/transfer. Any costs associated with this will be notified to the respective Departmental Manager.

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6.2 Items for Repair 6.2.1 Please ring the Estates and Facilities Help Desk giving the assets number, description and its location, a job number will be give to the caller. 6.2.2 The item will be collected by Maintenance Staff or representative and returned to the Department after repair. 6.2.3 The Maintenance Department will inform the Departmental Manager if any item is condemned as being unsafe or beyond economical repair, and will arrange for its disposal (using the specified procedure). 6.2.4 The Departmental Manager is responsible for recording any changes in the Capital Asset Register or Department Inventory Register, as appropriate, or following this Policy by either using the Standard Proformas attached or using CC 600 form (see Appendix 9) if they are Capital Assets. 6.3 Initial Advertising (Internal) for Transfer/Disposal of Inventory Assets 6.3.1 A list of items for sale/transfer will be advertised internally in the PCT Newsletters and/or the Intranet each month or when necessary. This will be advertised by Procurement Department on HOT topics page. Initial expressions of interest are to be lodged with Head of Procurement, Dave Lewis. Priority will be given if it for PCT use. 6.3.2 Bids for purchase/transfer of items should be made by a PCT or individual on the Request For Quotation for Disposal/Sale of Surplus Equipment form (Appendix 8). Procurement Department will issue to all interested parties the appropriate form with items listed and specifying quotation return date. This will also have a unique Procurement Quote Reference Number. 6.3.3 When a Manager/Department/Individual has decided to make an offer, then is to be submitted by the expected highest bidder to be executed by deadline date/time by which any offers must be received. Also offers submitted by perspective purchasers/transferees must be in a sealed envelope and clearly marked Formal Bid quoting closing date. It is expected that he highest bid would be accepted. 6.3.4 The Procurement Department collects all bids and all quotations with outcome recorded on file, these will be retained and filed within the Procurement Department and a copy of the quotations received can be sent to the Relinquishing Department (if requested). 6.3.5 Procurement Department issues acceptance and rejection letters. Acceptance letter (example Appendix 10) is also Acknowledges the Order. A copy of the successful bid will be sent to Eileen Dempsey (Finance Department), Ron Meadows (Estates Information Officer) and the relevant Department Manager. Payment by successful bidder should be upfront. The Relinquishing Department to arrange for an Invoice Request to be sent to Eileen Dempsey in the Finance Department. 6.3.6 If there is no internal demand for transfer/purchase of items external advertising can be used. 6.4 Follow-up Advertising (External) for Disposal of Inventory Assets 6.4.1 If the above procedure is not successful the Procurement Department will consider advertising externally via local press etc or by auction options to be determined at the time of disposal. CONDEMNATION AND DISPOSAL OF ASSETS 5

6.4.2 Note: The Relinquishing Manager/Department will be responsible for covering the costs of the external advertising, Procurement Department will notify the Manager/Department of the costs. 6.5 After Sale Arranged 6.5.1 6.5.1.1 Purchaser contacts Relinquishing Department or Estates and Facilities Department to arrange collection, on production of official receipt for purchase. Note: Goods can only be collected after cheques have cleared (3 days) or cash has been paid. 6.5.1.2 Relinquishing Department / Estates and Facilities Department releases items and enters receipt numbers and sale proceeds in Disposal file. 6.5.2 Relinquishing Manager - Departmental Manager to ensure assets have been taken off the Inventory Register and updated. 6.5.3 Purchasing/Transferring Manager (if applicable) - The new owner of the asset is to ensure that the asset is included in their Inventory Asset Register.

7.0 Senior Managers/Departmental Managers/Budget Holders - Procedures for Disposal of Surplus (Obsolete) Condemned Equipment Capital Assets
A flow chart that will aid you with this procedure is included at Appendix 1. 7.1 It is the responsibility of each Senior Managers/Budget Holders to identify items that are surplus to requirements within their department. If assets are identified as being surplus and no longer required for use within the Department, a schedule of all items that are deemed to be surplus is to be sent to the Senior Managers Department Manager using the appropriate memorandum. (See Appendix 6) 7.2 It is Departmental Managers responsibility to establish whether the surplus equipment is either listed on their Capital Asset Register or on their own Departmental Inventory Register. 7.3 If the equipment is on the Capital Asset Register it is the Departmental Managers responsibility to contact the Estates Information Officer to find out whether there is a current Net Book Value attached to their surplus Asset or alternatively if the Asset is fully depreciated. 7.4 The Departmental Manager will then need to include the details relating to the Net Book Value on the Authorisation schedule. 7.5 Once the Departmental Manager (Relinquishing) has completed the Schedule of Surplus Equipment on Appendix 7. If one or more of the Assets are Capital (ie. over 5,000.00 inc. VAT) appropriate approvals are obtained from the Director and PCT Finance Director. The completed form is then sent to the Deputy Director of Estates (Operational) together with the completed CC600 (Appendix 9). 7.6 Departmental Managers to request a CC600 form from the Estates Information Officer and complete where appropriate sections 1-5. The Departmental Manager keeps the top copy and the remaining copies sent to the Estates Information Officer for actioning.

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8.0 Estates and Facilities - Procedures for Disposal of Surplus/Obsolete/ Condemned Equipment Capital Assets
A flow chart that will aid you with this procedure is included at Appendices 2 and 3. 8.1 There may be local arrangements implemented throughout the PCTs for disposal and storage of equipment rather than having one central storage facility, however the management of this process needs to be carefully considered so that assets are not stored in outlying storage facilities which are left to stock pile. The Estates & Facilities Department will keep a central register identifying stored assets. Assets stored will normally fall into three categories: Incoming - For items removed from a Department and awaiting relocation to another department or disposal. Outgoing - For items not required for use within the PCTs, awaiting disposal for sale or scrap. Storage - Items labelled for storage for a maximum of six months. The Estates and Facilities Department will review items in this area monthly. 8.2 Procedure for Disposal of Capital Assets 8.2.1 The Deputy Director of Estates (Operational) will act as the facilitator within the Estates and Facilities Department in dealing with requests for the disposal of Capital Assets. 8.2.2 The Deputy Director of Estates (Operational) receives requests from either the Chief Executive Directors or Departmental Managers (Appendix 7 and CC 600 form Appendix 9) to remove item(s) of equipment that have been declared surplus after they have checked with the Estates Information Department to consider if there is any Loss on Disposal (LOD) implications if the replacement value is reasonably expected to exceed 5,000.00 or the equipments Net Book Value which is currently on the Capital Asset Register. 8.2.3 PCTs Director of Finance notes and authorises any LOD/Capital Asset Register implications and returns the memorandum (Appendix 7) to the Procurement Department with a copy to the Deputy Director of Estates (Operational) for information. 8.2.4 If the PCT has no storage facilities for the surplus assets the Facilities Department can arrange for the removal of the item and transfer it to the designated storage area, if there is a cost implication for this the relinquishing Manager will be advised. 8.2.5 Facilities will then arrange to leave receipt with responsible (relinquishing) person confirming collection. 8.2.6 Facilities will periodically circulate a list of all items in the designated storage area to Heads of Departments; inviting requests for re-use within Hospitals/Health Centres etc via the Intranet. The contents of the designated storage area will be inspected periodically by Deputy Director of Estates (Operational) or his/her nominated representative and the appointed PCT Condemning Officer(s) who will decide whether to scarp or sell the remaining items. 8.2.7 The Estates Information Officer will then check the CC600 form (Appendix 9) to see if all necessary sections on the form have been completed. If not, relinquishing manager will be contacted direct. 8.2.8 Where assets are identified as scrap by the PCT Condemning Officer the Facilities Department will arrange for the assets to be disposed of in the appropriate way either by CONDEMNATION AND DISPOSAL OF ASSETS 7

skip or removal company , this will then be recorded on the disposal memorandum by the Deputy Director of Estates (Operational). (See Appendix 11 & 12) 8.3 Initial Advertising for Transfer/Disposal of Capital Assets 8.3.1 A list of items for sale/transfer will be advertised internally in the Trusts Newsletters and/or the Intranet each month or when necessary. This will be advertised by Procurement Department on HOT topics page. Initial expressions of interest are to be lodged with Head of Procurement, Dave Lewis. Priority will be given if it for PCT use. 8.3.2 Bids for purchase/transfer of items should be made by a PCT or individual on the Request For Quotation for Disposal/Sale of Surplus Equipment form (Appendix 8). Procurement Department will issue to all interested parties the appropriate form with items listed and specifying quotation return date. This will also have a unique Procurement Quote Reference Number. 8.3.3 When a Manager / Department / Individual has decided to make an offer, then is to be submitted by the expected highest bidder to be executed by deadline date/time by which any offers must be received. Also offers submitted by perspective purchasers/transferees must be in a sealed envelope and clearly marked Formal Bid quoting closing date. It is expected that he highest bid would be accepted. 8.3.4 The Procurement Department collects all bids and all quotations with outcome recorded on file, these will be retained and filed within the Procurement Department and a copy of the quotations received can be sent to the Relinquishing Department (if requested). 8.3.5 Procurement Department issues acceptance and rejection letters. Acceptance letter (example Appendix 10) is also Acknowledges the Order. A copy of the successful bid will be sent to Eileen Dempsey (Finance Department), Ron Meadows (Estates Information Officer) and the relevant Department Manager. Payment by successful bidder should be upfront. The Relinquishing Department to arrange for an Invoice Request to be sent to Eileen Dempsey in the Finance Department. 8.3.5 If there is no internal demand for transfer/purchase of items external advertising can be used. 8.4 Follow-up Advertising (External) of Capital Assets 8.4.1 If the above procedure is not successful the Procurement Department will consider advertising externally via local press etc or by auction options to be determined at the time of disposal. 8.4.2 Note: The Relinquishing Manager/Department will be responsible for covering the costs of the external advertising, Procurement Department will notify the Manager/Department of the costs. 8.5 After Sale Arranged 8.5.1 Purchaser contacts Estates and Facilities Department to arrange collection, on production of official receipt for purchase. Note: Goods can only be collected after cheques have cleared (3 days) or cash has been paid. 8.5.2 Estates and Facilities Department releases items and enters receipt numbers in Disposal file. CONDEMNATION AND DISPOSAL OF ASSETS 8

8.5.3 If the value of the item exceeds 5,000.00 or is on the Capital Asset Register, the Deputy Director of Estates (Operational) arranges for the Estates Information Officer to ensure that the CC 600 Asset Disposal form (Appendix 9) to be fully completed. The following details must be completed: description of item location/department inventory number/equipment register number reason for disposal/removal estimated value (for Capital items check with Estates Information Office for book value) date store until . (if appropriate) signature of Estates and Facilities Manager date label completed. 8.6 No Sale 8.6.1 Item(s) are reviewed at next inspection by the Deputy Director of Estates (Operational) or his/her nominated representative and PCT Condemning Officers, and a decision made to scrap. If the Deputy Director of Estates (Operational) feels that the goods have a scrap value then the Procurement Department will arrange of for the items to be scraped via a skip. 8.6.2 Alternatively, the Facilities Manager to arrange for the items to be scraped via skip if the items have little or no scrap value. 8.7 Action by Condemning Officers (PCT Asset Co-ordinators) (See 8.6 above) 8.7.1 Condemning Officer signs the memorandum that gives authority to scrap. (Appendix 11 or 12) 8.7.2 Appointed Officer follows 8.6.2. 8.8 Disposal of Surplus Land & Buildings The disposal of all surplus Land and Buildings identified by the Trust will be co-ordinated by the Land & Property Manager of the Estates & Facilities Department. Disposal will be in accordance with Estatecode documents. Such disposals will normally require Business Case approved by the Trusts SSDG group.

9.0 Operational Estates Department Procedures for Disposal of Surplus/Obsolete/Condemned Equipment

A flow chart that will aid you with this procedure is included at Appendix 4. 9.1 Surplus Assets 9.1.1 Estates Maintenance Department receives request for repair via the Estates Department Help Desk line and issues maintenance docket. 9.1.2 Estates Maintenance Department Staff inspect equipment to see if it requires disconnecting and access if working order. (Check if decontamination required prior to contact). CONDEMNATION AND DISPOSAL OF ASSETS 9

9.1.3 Estates Department Help Desk arranges for the asset to be transferred, if surplus to requirements and awaiting disposal/sale. 9.2 Repairable Items Estates Maintenance Department Staff carry out repairs and return items to Department/area, or 9.3 Irrepairable Items 9.3.1 Estates Maintenance Department Staff inform Head of Department that the item is beyond repair, complete form for the Responsible Officer and attach form to item. 9.3.2 Estates Maintenance Department Staff make item safe for disposal. 9.3.3 Estates Maintenance Department Staff liase with the Facilities Department Manager to arrange disposal of item. Note: It is the responsibility of the Departmental Manager to which the item belongs to arrange for the necessary adjustments whether the item is Inventory or Capital by nature. Estates & Facilities will pass on any costs arising from the disposal/storage of any equipment to the relinquishing Manager/Department

10.0 Procurement Department Procedure for Disposal of Surplus/Obsolete/ Condemned Equipment

10.1 Upon receipt of a duly authorised Request for Disposal Form, the Procurement Department will check to ensure all the information is needed has been provided and where appropriate, the necessary technical advice has been sought. 10.2 Consider and prepared recommendations in accordance with Standing Financial Instructions, Standing Orders and NHS Conditions of Contract, for discussion with the officer requesting disposal. 10.2.1 10.2.2 10.2.3 10.2.4 10.2.5 10.2.6 10.2.7 10.2.8 10.2.9 Is it economical to proceed with formal disposal action? What is the most appropriate level for disposal action? Sales to staff. Circulate details to other local NHS Trusts/PCTs. Circulate via NHS Procurement, electronic mail network to all NHS units. Advertise via Aspels* Gazette, to public bodies/Apsels subscribers. Advertise via local or national papers or magazines. Invite formal bids from known or potentially interested individuals or organisations. Sale by Auction.

10.3 Agree the action and a realistic time plan for activities with the Deputy Director of Estates (Operational) and Relinquishing Departmental Manager.
*

Aspels: A monthly publication published by Aspels Publishing, advertising items that are Obsolete, Surplus or Redundant , with the public sector. NHS Purchasing & Procurement Department (a major market influence, uses this publication widely to advertise goods for sale and purchase items for its customers). The publication also has a section covering private sector goods and services, as well as potential buyers of surplus items.

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10.4 Undertake the agreed action (see Sale Contract Documents), in accordance with the time plan agreed. 10.5 After closing date for receipt of offers: 10.5.1 The Procurement Department open and summarise offers for discussion with the Deputy Director of Estates (Operational) and Departmental Manager. 10.5.2 The Procurement Department and Relinquishing Department Manager meet with Deputy Director of Estates (Operational), where applicable, to discuss offers, aware business or if no offers received, agree next steps, consider the viability of further action. 10.6 Next Steps 10.6.1 The Procurement Department issue a letter to the successful contractor (See Appendix 10), copy of letter to Director of Finance, Departmental Manager and Deputy Director of Estates (Operational) 10.6.2 Commence further action as agreed with user 10.7 The Procurement Department make follow up contact with the Departmental Manager/Facilities Manager to ensure collection was made and confirm user was satisfied with the service provided, noting any learning points. 10.7.1 Procurement informs the Deputy Director of Estates (Operational) that a sale has been arranged** 10.7.2 purchasing inform the Deputy Director of Estates (Operational)
** Note: If no bids for sale are notified by the end of eight weeks, alternative methods of disposal will be arranged.

11.0 IT Department Procedure for Disposal of Surplus/Obsolete/Condemned Equipment

If a Relinquishing Senior/Departmental Manager has identified IT Hardware as being surplus to requirements, the Manager should first contact the Trusts Head of IM&T to seek their approval for the proposed disposal. Once approval has been given, they should then follow the procedure currently detailed on the Intranet under the IT Directorate page headed Procedure for Disposal of Decommissioned Equipment. A copy of the current version (Version 1 June 2003) of the Disposal Procedure is included at Appendix 5. Please check the Intranet to see if the Procedure has been updated.

12.0 Finance Department (Cashier) Procedure for Disposal of Surplus/ Obsolete/Condemned Equipment
12.1 Finance Department receives notification of successful bidders via a copy of Appendix 10 from Procurement, and to await payment.

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12.2 Cashier receives payment, records disposal number and issues official receipt to the purchaser, to be presented on collection of goods. Purchaser advised that, for payment by cheque, 3 days is required to ensured cheque clearance. Receipt to be annotated accordingly. 12.3 Finance Department to notify the Departmental Manager/Deputy Director of Estates (Operational) and Procurement Manager that payment has been received and notification of receipt numbers. This is to be done by using the standard Proforma as shown in Appendix 13.

13.0 Training
No specific training is required, but managers should be aware of the requirements of the Trusts Standing Orders and Standing Financial Instructions.

14.0 Audit
Compliance with this policy will be monitored by the Director of Estates for Shared Services.

15.0 Financial Implications

Financial costs could be incurred if this policy is not followed and equipment is disposed of unnecessarily or inappropriately.

16.0 References and Further Reading

Trust Standing Orders Trust Standing Financial Instructions The Consumer Protection Act 1987 The Trade Description Actions 1968 and 1972 Section 3 and 6 of the Health and Safety at Work Act 1974 Medical Devices Guideline and the Electrical Equipment (Safety) Regulations 1994. Capital Asset Register Guidance on the Sale, Transfer and ownership and Disposal of Used Medical Devices NHS Conditions of Contract for the Sale of Scrap NHS Conditions of Contract for the Sale of Goods.

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APPENDIX 1 PROCEDURE FOR DISPOSALS/STORAGE/REPAIRS - DEPARTMENTAL MANAGERS RESPONSIBILITY (1) Is the item broken?
Yes

Help Desk

Attach maintenance docket to item

Is item repairable ?

Yes

Repaired and returned to service

No

Note: Contaminated items must be decontaminated prior to collection see separate policy

No

Is the item surplus?

Yes

Maintenance Department to liase with Department Manager to confirm disposal

Check with Estates info officer if asset fully depreciated? Or if asset has Net Book Value
Yes

Is the item on Capital Asset Register or Department Inventory?

Capital Asset Register

Department Manager to liase with Estates & Facilities to arrange disposal

Inventory Register

Is the item electrical?

Yes No

Contact Estates Help Desk and arrange inspection

Send memo (Appendix i & 2) to Departmental Manager/Director to obtain approval to dispose of. Departmental Manager to arrange for Disposal/transfer

Is the surplus temporary?

Yes

No

Item Removed from Inventory Request Facilities to remove to appropriate storage awaiting reuse

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APPENDIX 2 PROCEDURE FOR DISPOSALS/STORAGE/REPAIRS ESTATES & FACILITIES MANAGEMENT DEPARTMENT CAPITAL ASSETS Is the item in designated storage Circulate details of equipment for potential re-use (Newsletter/ Intranet)
Estates & Facilities to check and transfer asset to new Dept. Capital Asset Register to be updated.

Yes

Transfer Request Agreed

No

No transfer / purchase offer

Item located for temporary storage

Is the value of the item more than 500.00

CC600 form completed and copies sent to respective manager

No

Yes

Review by Managers monthly and assess continual status of item

Supplies for disposal. Policy implemented.

Senior Managers agree disposal of item (using Appendix 3)

Asset Register Updated

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APPENDIX 3 PROCEDURE FOR DISPOSALS/STORAGE/REPAIRS FACILITIES STAFF Departmental Manager/PCT Asset co-ordinator for removal of item(s)

Check item has decontamination certificate, if necessary

Is the item for temporary storage?

Yes

Take to designated storage area for agreed time

No

Take to designated storage area for sale/disposal

NB:

All items placed in the designated storage area must have relevant paperwork completed, to enable officers to trace point of origin.

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APPENDIX 4 PROCEDURE FOR DISPOSALS/STORAGE/REPAIRS ESTATES MAINTENANCE DEPARTMENT Received Estates Help Desk Contact Item repaired Returned to service

Item for inspection prior to sale

Item Irrepairable

Passed as fit for sale Item failed inspection

Item made safe prior to proper disposal

Liase with Estates and Facilities Manager to arrange storage/sale/disposal. Costs to be borne by the relinquishing Department.

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APPENDIX 5

Procedure for the Disposal of Decommissioned Equipment

All IT Equipment must be disposed off in line with the IM&T Policies and Procedures, available on the intranet. The SSA ICT Directorate take responsibility to ensure that all equipment is disposed off in line with the Environmental Act. The Estates and Facilities Directorate will transport the equipment for disposal from the PCT Bases to St Chads Court. Process Phone the Central IT Helpdesk on 0121 695 2330 to confirm they have capacity to take the equipment at St Chads Court. Once the Central IT Helpdesk confirms they can receive the equipment then phone Estates and Facilities on 0121 255 7599 to arrange collection of the IT equipment. Estates and Facilities will ask for the call reference number from the Helpdesk. If you do not have this number they cannot arrange for the goods to be transported. They will arrange the collection at the next available time when the van is free. Equipment will be received and held at St Chads Court. If the ICT Directorate can re-utilise the equipment then it will be re-cycled. The disposed equipment will be documented and removed off the inventory and the Company will give the ICT Directorate disposal certification which will be held on file. Version 1 June 2003 Disposal Procedure

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APPENDIX 6

Estates and Facilities Carnegie Centre Hunters Road Hockley Birmingham B19 1DR Tel: 0121 255 7555 Fax: 0121 255 7539

MEMORANDUM
To: From: Date: DISPOSAL OF ITEMS OBSOLETE OR SURPLUS TO REQUIREMENTS Departmental /Line Manager

Senior Manager(Relinquishing)

The items listed below are obsolete/surplus to the requirements of Department, therefore I would be grateful if you could consider the items detailed below with the view to providing your formal Approval to proceed with the disposal. ITEM Quantity Description

Regards

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Appendix 7

Estates and Facilities

Carnegie Centre Hunters Road Hockley Birmingham B19 1DR Tel: 0121 255 7555 Fax: 0121 255 7539

MEMORANDUM

To:

Director

From:
DISPOSAL OF ITEMS OBSOLETE OR SURPLUS TO REQUIREMENTS

Departmental Manager

Part A

The items listed below are obsolete/surplus to requirements of

Department/Directorate.

If you are in agreement I would be grateful if you could sign the Approval Section below and forward it to the Director of Finance for Approval.

Quantity

Full Description, model no, serial no, make, condition etc

Asset No.

Present location

Method of disposal (b) Condemn Sale

Estimated value

Net Book Value

TD/ECF POL CONDEM 22

Page 19 of 28Draft 4

December 2003

Senior Manager/Departmental Manager

Date

Director/Chief Executive

Date

Part B

Checked with PCT Finance Director

Signed:

Date:

(Now please forward to Procurement Department) This section to be completed if Assets are to be disposed of externally Part C To Procurement Department Please arrange for the disposal of the items listed above. Estimated Value (if applicable) - . cc: Deputy Director of Estates (Operational)

TD/ECF POL CONDEM 22

Page 20 of 28Draft 4

December 2003

APPENDIX 8

Request for Quotation for Disposal/Sale of Surplus Equipment Quotation No: Date Department: THIS IS NOT AN ORDER

Purchasing West Heath Hospital, Rednal Road Birmingham, B38 8HR In the event of query regarding this quotation, please contact Dave Lewis, Head of Procurement on (0121) 627 8102

Birmingham Primary Care Shared Services Agency on behalf of ..Birmingham Primary Care Trust invite you to quote on this form for the purchase and disposal of the under mentioned goods. Instructions This quotation is subject to the NHS Conditions of Contract for the Sale Goods (2001), available on request. Please return this quotation in the envelope provided by .. Further information regarding the item(s) listed may be obtained by contacting Dave Lewis on (0121) 627 8102 Item Quantity Description Unit price offered Plus VAT at 17.5% Total Price Offered

For completion by the offerer. We hereby submit our quotation in accordance with your specifications/requirements and in accordance with the NHS Terms & Conditions for the Sale of Goods (2001)

Offer open for acceptance at prices quoted until Signed ...

(Min 60 days)

Status in Company Contact Number

Date FORMAT

APPENDIX 9 Asset Register Maintenance - Asset Transfer/Disposal No:.

ISSUED TO ISSUED BY 1

Certificate

FORM C.C 600

DEPARTMENTAL MGR. PCT Co-ordinator..

DEPT ISSUE DATE .././200

ASSET DETAILS (To be completed in all cases by current departmental manager) 1 2 3 4 5 Asset Identification No. 6. Block No./ Descpn. Asset Description.. 7. Ward/Dept.. Asset Serial No 8. MGT. Unit Descpn. Asset Model No./Type 9. MGT. Unit No... Hospital/Clinic etc. 10. Budget Centre.

ASSET TRANSFER NEW MANAGEMENT UNIT & LOCATION NEW LOCATION ONLY DEPARTMENTAL MANAGER

Tick to suit

"NEW" DEPARTMENTAL MANAGER"

1. Reason For Transfer Joint Agreed Reason 2. Signature of Agreement 2. Signature of Agreement..

"NEW" LOCATION/OWNERSHIP DETAILS" 3. Hospital 6. MGT. Unit Descpn.. 4. Block. 7. MGT. Unit No 5. Ward/Dept.. 8. Budget Centre..

ASSET DISPOSAL (Due to Condemnation/Scrap/Obsolescence/etc - No Disposal Proceeds) DEPARTMENTAL MANAGER 1 2 3 ESTATES MANAGER

Reason for Disposal. Joint Agreed Reason Signature of Agreement 2. Signature of Agreement. Outstanding Net Book Value 4 5 6 .. Estates Manager to tick as appropriate

Asset Disposal Details

Parts Salvaged Asset in Scrap Compound/Store Asset Removed from Site

22

ASSET DISPOSAL (By means of Re-Sale - Disposal proceeds forthcoming) DEPARTMENTAL MANAGER 1 2 3 4 5 6 7 DIRECTORATE MANAGER

Reason for Disposal Joint Agreed Reason Permission for Disposal by Re-Sale Given (GM Only) Health & Safety Aspects Attended (.Estates MGR) Outstanding Net Book Value Sales Proceeds . ..

Purchase Receipt No... Purchaser

AUTHORISATION - All Transfers Across Management Units & All Disposals to be Agreed By Signature .Director DATE .././200.

DATA-BASE CHANGES / CAPITAL CHARGE ADJUSTMENTS (To be completed by Estates Directorate Only) Financial Details communicated by Estates Directorate to Finance Dept Asset Data-base transaction - Transfer or Disposal completed by Estates on date ././200

On date /./200

GUIDANCE NOTE - See Flow Chart on Reverse DISTRIBUTION: 1st Copy (Yellow) - Divisional Asset Co-ordinator for forwarding to Estates Directorate for actioning. 2nd Copy (Pink) - Asset Co-orindator for retention 3rd Copy (Blue) - Relinquishing Manager 4th Copy (Green) - Estates Manager

23

APPENDIX 10

Your Ref: Our Ref: Date For the Attention of

Address

Estates and Facilities Carnegie Centre Hunters Road Hockley Birmingham B19 1DR Tel: 0121 255 7555 Fax: 0121 255 7539

LETTER TO SUCCESSFUL CONTRACTOR

Dear Sirs Re: DISPOSAL OF SURPLUS, RE DUNDANT OR OBSOLETE ITEMS Thank you for your letter dated . in respect of the items listed below at the prices shown, all in accordance with NHS Purchasing & Supplies Agency, Standard Conditions of Contract for the Sale of Goods. Location of Goods Description Quantity Price

Special Instructions:

VAT TOTAL

Please forward your cheque or deliver your payment to the Director of Finance, at the above location. An official receipt will be given to acknowledge your payment and the receipt will be your authority to remove the item(s) from site on application to the officer co -ordinating the disposal shown below. Where item(s) of scrap metal etc. are being sold by weight and category the total value has been based upon the estimated quantity. It will be your responsibility to obtain Public Weighbridge Certificate in respect of each category, for which varying prices have been tendered and the Director of Finance will then adjust any variation as a refund or a request made for additional payment. If you have any queries, please do not hesitate to contact me. Yours faithfully cc: Head of Procurement Deputy Director of Finance Deputy Director of Estates (Operational)
24

APPENDIX 11

Estates and Facilities Carnegie Centre Hunters Road Hockley Birmingham B19 1DR Tel: 0121 255 7555 Fax: 0121 255 7539

MEMORANDUM
To: From: Date: Deputy Director of Estates (Operational) PCT Asset Co-ordinators (Condemning Officer)

AUTHORITY TO SCRAP
NO SALE ACHIEVED

I confirm the item(s) on the attached schedule can now be scrapped. This is on the basis that they have been offered for sale for 8 weeks without receipt of any purchase offers. Regards

On behalf of

Primary Care Trust

Enc:

Schedule

25

APPENDIX 12

Estates and Facilities Carnegie Centre Hunters Road Hockley Birmingham B19 1DR Tel: 0121 255 7555 Fax: 0121 255 7539

MEMORANDUM
To: From: Date: Deputy Director of Estates (Operational) PCT Asset Co-ordinator

AUTHORITY TO SCRAP
CONDEMNED ITEMS

Having visited the designated storage area today, I confirm the items on the attached schedule can now be scrapped. This is on the basis that they have been condemned. Regards

On behalf of Enc: Schedule

Primary Care Trust.

26

APPENDIX 13

Estates and Facilities Carnegie Centre Hunters Road Hockley Birmingham B19 1DR Tel: 0121 255 7555 Fax: 0121 255 7539

MEMORANDUM
To: From: Date: CONFIRMATION OF RECEIPT OF PURCHASE MONIES & ISSUE OF FORMAL RECEIPT
I confirm that we have now received the purchase monies for the equipment as detailed on the Letter to the Successful Contractor (Appendix 6) dated . I confirm the following details: Company Name: Date Received: Receipt No: Monies cleared: Regards On behalf of Finance Director Y/N Purchase Monies Received:

Departmental Manager/Director Finance Department (Creditor Payments)

Any queries please do not hesitate to let me know.

27

APPENDIX 14 CONTACT NAMES AND NUMBERS

To assist Trusts in implementing the Policy, listed below are the current names and contact numbers of Departments mentioned within the Policy. However, kindly note that these names and contact numbers may be subject to change, please check on Intranet if you have any problems Department/Position Estates Helpdesk IT Helpdesk Land & Property Manager Estates Information Department Deputy Director of Estates (Operational) Head of Procurement Tim Dean Ron Meadows Clive Rex Dave Lewis Name Emma Frary Contact No. 0121 255-7553 0121 695 2330 0121 255-7531 0121 255-7532 0121 255--7540 0121 627-8102 ext 56303

Names and telephone numbers at as December 2003. 28