Policies & Procedures Manual - Elizabeth City State University

400.1.42Adopted: 06/14/05ELIZABETH CITY STATE UNIVERSITYTrade-In AllowancesGeneralTrading-in used property for credit against the purchase of a new item often times provides a greaterfinancial return to the state than selling such items through Surplus Property. While state regulationsaddress trade-ins as “replacements” for like items, dissimilar items—e.g. a piano for a harp—may beused as trade-ins if the requisitioning department can document that such a transaction would providemore value to the state than selling the item(s) through surplus.AuthorizationThe NC State Surplus Property Officer or State Auxiliary Services Director must approve each tradeinof used property.Required DocumentationIn order to support the approval request, the department must submit a purchase requisition along witha description of the item to be traded-in. This description should include the make, model, originalacquisition date, original costs, ECSU decal number, serial number, and original purchase ordernumber (if available). If the item to be traded-in is not a “replacement” or like item, the departmentmust attach a signed justification letter stating the reasons why the department believes that a trade-inwould result in greater financial return to the state than a sale through surplus.Acquisition ProcessThe appropriate purchasing procedure for a trade-in is based upon the acquisition value of the newequipment (without the trade-in credit). Because the transaction requires the State Property Officer’sapproval, no trade-ins can be done under the small order procedure. If the acquisition value requiresobtaining competitive quotes/bids, the Purchasing Department will see quotes/bids both with, andwithout, the application of the trade-in allowance. This will give you the flexibility to purchasewithout a trade-in, should you or the State Surplus Property Officer determine that the trade-inallowance offered is insufficient for the item(s) involved.Please See: Policy 400.1.31: University Surplus Property