Are Proceeds from a Surplus Sale Returned to Departments?
When a department submits university property for surplus, we often get asked: Are proceeds from a surplus sale returned to the department? and “Who gets the money from the proceeds of the sale?” The answer to these questions is “It depends.” Two factors determine where funds go after assets are sold:
- Type of asset
- How it was originally acquired
Type of Assets
Non-Capitalized Asset (small equipment and supplies):
These are assets that generally cost less than $5,000. For these items, the rules are simple but strict:
- The majority of the proceeds go to the University’s General Fund.
- The remaining funds are used to cover Materials Support’s handling costs.
Capitalized Equipment (high-value assets):
For larger equipment, the distribution of funds is determined by the fund code used for the original purchase. The Asset Management Team processes these distributions monthly.
Proceeds Breakdown Table
| Original Funding Source | State Share | Materials Support Share | Dept./General Fund Share | Destination of Funds |
|---|---|---|---|---|
| State Budget (16030) | 8% | 0% | 92% | University General Fund (Project 321900) |
| State Budget (16031/16032) | 8% | 0% | 92% | Original Dept. Project (or CALS-specific projects) |
| Trust Funds (91000) | 8% | 10% | 82% | Original Dept. Project (includes Ledger-5 CNG) |
Please note: in the Office of Post Award Financial Services (OPAFS, formerly Contracts and Grants), ledger-5 projects, funds are first allocated to a central project (385752), so OPAFS can determine the proper final allocation under grant rules.
How to Verify Asset Funding Information
To find out which fund code was used to buy the asset, use the Print an Asset method in the Asset Management – Surplus module. This will identify the original funding source and indicate whether the item is capitalized.
Need Help?
If you have specific questions about a surplus sale, contact the appropriate team:
- Asset Management: For capitalized equipment (high-value).
- Surplus Property: For non-capitalized items (furniture, small electronics or supplies).
Additional Resources
- Categories:
