• Section 1 - Purpose
• Section 2 - Authority
• Section 3 - Scope
• Section 4 - Guideline
• Reason for Disposal
• Authorisation

Section 1 - Purpose

(1) This document outlines the requirements for disposing of assets recorded in RMIT’s Fixed Asset Register. It ensures disposals are correctly accounted for and supported.

Section 2 - Authority

(2) Authority for this document is established by the Asset Management Procedure.

Section 3 - Scope

(3) This guideline applies to the management of all assets owned or controlled by the RMIT Group.

Section 4 - Guideline

Reason for Disposal

(4) Common reasons for asset disposal include, but are not limited to:

1. no longer required
2. replacement as part of an asset renewal program
3. unserviceable or beyond economical repair (i.e. obsolete)
4. technologically outdated and operationally inefficient
5. stolen or lost (must also be reported to Central Complaints and Investigations for insurance and investigation purposes)
6. transferred as part of research project
7. donated, as approved by the relevant financial delegate.

(5) Regardless of the reason for disposal, all disposals must be properly documented and accounted for with a clear audit trail.

Authorisation

(6) Asset disposal must be authorised in accordance with the Delegations of Authority Policy. Both the written-down value and original purchase price of the asset (or asset group) must be considered when determining the required approval level. Approval is still required even if the asset has a zero written-down value, as replacement costs may be significant.

(7) All asset disposal requests must be submitted by the ‘Dispose of RMIT Asset’ ticket in ServiceNow for review and processing by Central Finance Operations.

(8) The asset custodian department is responsible for coordinating the disposal process unless otherwise specified in this guideline.

(9) Where funds are exchanged as part of the asset disposal, a valid sales invoice must be raised. While invoice creation is normally a self-service function, in this context departments may submit a general ‘Finance Enquiry’ in ServiceNow for support in raising the invoice.

(10) Any gain or loss on the disposal of an asset is recorded again the asset custodian department in the month of disposal.

Specific Asset Classes

Land and buildings

(11) RMIT needs to safeguard its land and buildings, and disposal of such assets must conform to the Victorian Government Land Transactions Policy and Guidelines and only take place with the authorisation of the Governing Body:

1. The Victorian Government Land Monitor (VGLM)
2. Valuer-General Victoria (for valuation)
3. The Minister.

(12) The following endorsement must be sought when recommending disposal of land or buildings, supported by a detailed memo:

1. Director, Campus Planning and Services
2. Director, Facilities and Asset Management
3. Executive Director, Property Services Group
4. Chief Operating Officer
5. Vice-Chancellor.

(13) The appointment of a real estate agent to act on RMIT’s behalf must be approved by the Executive Director, Property Services Group.

(14) The disposal process is managed by the Property Services team, following the requirements of the Victorian Government Land Transactions Policy and Guidelines and Sales and Acquisition of Property Checklist. It must be completed and reviewed before information is submitted to the Valuer-General fo assessment.

(15) The contract of sale must be endorsed by the Executive Director, Property Services Group, and authorised in accordance with the Delegations of Authority Policy. The signed contract and conveyancing documentation must be forwarded to Central Finance Operations for appropriate financial recording.

(16) Where land or buildings are held by RMIT on behalf of the Minister, the application of sale proceeds is to be directed by the Minister.

Art collection

(17) The disposal of items from the RMIT art collection is managed by the Manager, Cultural Collections and overseen by the Cultural Collections Acquisitions Committee, in accordance with the Cultural Asset Management Procedure.

Motor vehicles

(18) Disposal timing should aim to maximise the value and minimise safety risks. Generally, vehicles should be replaced or disposed of after three years or 60,000 kilometres, whichever comes first, subject to budget availability.

(19) The Fleet Coordinator manages vehicle disposals, which may occur via auction (through RMIT’s nominated auctioneer) or trade-in. Disposal often follows the purchase of the replacement vehicle.