E53.04 - Reutilization and Disposal

SIGNIFICANCE AND USE
5.1 Losses of property are indicators of the effectiveness of operations. Excessive losses can indicate poor internal management and controls, policy or procedural weaknesses, or lack of compliance, any one of which can have a negative impact on profitability, mission, performance, or reputation.  
5.2 Addressing and reporting losses provides indicators of needed potential action by decision makers.  
5.3 Though the term equipment is used consistently throughout this practice, this process may be used for the other classes of property, for example, raw material in inventory.  
5.4 This practice does not change any requirements that may be imposed through law, regulations, contract terms, and conditions.
Note 1: When this practice is submitted in response to a contract solicitation and evaluated as part of a contract award process, this practice may be deemed a representation.
SCOPE
1.1 This practice focuses on addressing and reporting losses of tangible property.  
1.2 Loss occurrences are key aspects of risk management. Projecting the possibility or probability of losses, discovering, disclosing, reporting, managing, and minimizing losses to a reasonable extent is a critical economic factor in the success of the owning or holding entity. This practice also establishes acceptable levels of losses.  
1.3 Losses are often discovered as a result of an occurrence, a physical inventory, property custodian or entity self-assessment, or external audit. An actual loss occurrence can be at any time during the property life cycle.  
1.4 Assessing and determining financial liability for losses is not addressed in this practice; such assessments are generally subject to individual contracts or other arrangements.  
1.5 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety, health, and environmental practices and determine the applicability of regulatory limitations prior to use.  
1.6 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.

SIGNIFICANCE AND USE
4.1 This practice establishes a standard control methodology to aid in fulfillment of shortages derived from production requirements or equipment failures.  
4.2 This practice encourages an inclusive understanding and communication of the control and tracking of assets, and enables meaningful discussion between parties with interest in the asset.  
4.3 This practice is intended to foster and enable additional standard practices related to or based on these terms and concepts.
SCOPE
1.1 This practice covers the process by which open production and failure related demand requirements are fulfilled using existing equipment components.
Note 1: Differing approval requirements are generally dictated by ownership issues. For example, approvals for cannibalization/reclamation of company-owned property assets may vary substantially from that required for customer-owned assets. In all cases, the specific approach to approvals and the levels of approval required are prescribed by the entity with title to/ownership of the asset. These requirements are internal to the owning entity. In general, company-owned assets are handled in accordance with established practice specific to each individual entity while customer-owned property is handled based upon established practices specific to each entity or as specified within a contractual document.  
1.2 This practice is intended to be applicable and appropriate for all asset-holding entities.  
1.3 This practice covers property assets categorized as equipment.  
1.4 This practice can be applied to an individual asset, groupings of assets, or to all, or a subset of an entity’s assets.  
1.5 This practice clarifies and enables effective and efficient support of assets in accordance with the provisions of Practice E2279.  
1.6 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety, health, and environmental practices and determine the applicability of regulatory limitations prior to use.  
1.7 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.

SIGNIFICANCE AND USE
5.1 This practice identifies cost-effective sales as a business process of the entity. The central objective is to ensure that assets are sold in a manner best suited to meet the goals of the entity.  
5.2 This practice provides options and considerations to take into account to effectively manage the entity’s assets when considering asset sales.
SCOPE
1.1 This practice encompasses how assets may be sold.  
1.2 Sales of assets may be done when assets used by the entity are no longer required, or to sell assets acquired for the purpose of sale or re-sale. The objectives of a sale will vary by entity; for instance, the goal may be to facilitate the replacement of assets, to obtain needed funds from sales proceeds, or simply to remove assets from the entity’s control and management.  
1.3 This practice does not include sales requirements or restrictions specific to any regulatory body or the various levels of government in which an entity operates. However, this practice provides the entity options for flexibility to best integrate those external requirements.  
1.4 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety, health, and environmental practices and determine the applicability of regulatory limitations prior to use.  
1.5 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.

SIGNIFICANCE AND USE
5.1 Continuing emphasis by interested stakeholders demands that an entity dispose of surplus personal property assets in the most economical and efficient manner possible.  
5.2 The selection of the disposal method may depend on regulatory, environmental, or safety concerns.  
5.3 A personal property assets disposal program should be conducted in a manner consistent with the entity’s requirements, goals, and objectives.
SCOPE
1.1 This guide describes various personal property asset disposal methods including donation, sales, recycling, destruction, and abandonment.  
1.2 This guide recognizes that while some entities distinguish between ‘excess’ and ‘surplus’ personal property assets, this guide will remain consistent with Terminology E2135 using those words as they are defined therein.  
1.3 Prior to disposing of any personal property assets, consideration should be given to reutilization/reuse within the owning entity.  
1.4 Disposal is the final step in the final phase of the life cycle management of personal property assets.  
1.5 As entities may incur unnecessary or additional costs associated with recordkeeping, taxes, storage, maintenance, etc,. of personal property assets until final disposal actions are complete, selecting the most efficient and economical method of disposal is critical to a successful disposal program.  
1.6 This guide does not include specific requirements for the classification or the disposal of scrap items or materials.  
1.7 This guide does not specifically address disposal requirements of governmental laws and regulations. However, this guide enables an entity to align or integrate applicable governmental laws and regulations with its own requirements.  
1.7.1 When disposing of assets owned by another entity, entities must adhere to contractual requirements of the owning entity as well as applicable statutory and regulatory guidelines, policies, and requirements specific to the owning entity.  
1.8 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety, health, and environmental practices and determine the applicability of regulatory limitations prior to use.  
1.9 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.

SIGNIFICANCE AND USE
5.1 Losses of property are indicators of the effectiveness of operations. Excessive losses can indicate poor internal management and controls, policy or procedural weaknesses, or lack of compliance, any one of which can have a negative impact on profitability, mission, performance, or reputation.  
5.2 Addressing and reporting losses provides indicators of needed potential action by decision makers.  
5.3 Though the term equipment is used consistently throughout this practice, this process may be used for the other classes of property, for example, raw material in inventory.  
5.4 This practice does not change any requirements that may be imposed through law, regulations, contract terms, and conditions.
Note 1: When this practice is submitted in response to a contract solicitation and evaluated as part of a contract award process, this practice may be deemed a representation.
SCOPE
1.1 This practice focuses on addressing and reporting losses of tangible property.  
1.2 Loss occurrences are key aspects of risk management. Projecting the possibility or probability of losses, discovering, disclosing, reporting, managing, and minimizing losses to a reasonable extent is a critical economic factor in the success of the owning or holding entity. This practice also establishes acceptable levels of losses.  
1.3 Losses are often discovered as a result of an occurrence, a physical inventory, property custodian or entity self-assessment, or external audit. An actual loss occurrence can be at any time during the property life cycle.  
1.4 Assessing and determining financial liability for losses is not addressed in this practice; such assessments are generally subject to individual contracts or other arrangements.  
1.5 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety and health practices and determine the applicability of regulatory limitations prior to use.

SIGNIFICANCE AND USE
4.1 This practice establishes a standard equipment control methodology to aid in fulfillment of shortages derived from production requirements or equipment failures.  
4.2 This practice encourages an inclusive understanding and communication of the control and tracking of equipment, and enables meaningful discussion between parties with interest in the equipment.  
4.3 This practice is intended to foster and enable additional standard practices related to or based on these terms and concepts.
SCOPE
1.1 This practice covers the process by which open production and failure related demand requirements are fulfilled using existing equipment components.Note 1—Differing approval requirements are generally dictated by ownership issues. For example, approvals for cannibalization/reclamation of company-owned property may vary substantially from that required for customer-owned property. In all cases, the specific approach to approvals and the levels of approval required are prescribed by the entity with title to/ownership of the property. These requirements are internal to the owning entity. In general, company-owned property is handled in accordance with established practice specific to each individual entity while customer-owned property is handled based upon established practices specific to each entity or as specified within a contractual document.  
1.2 This practice is intended to be applicable and appropriate for all equipment-holding entities.  
1.3 This practice covers property categorized as equipment.  
1.4 This practice can be applied on to an individual item of equipment, groupings of equipment, or to all, or a subset of an entity's equipment.  
1.5 This practice clarifies and enables effective and efficient support of equipment in accordance with the provisions of Practice E2279.  
1.6 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety and health practices and determine the applicability of regulatory limitations prior to use.

SIGNIFICANCE AND USE
5.1 Continuing emphasis by interested stakeholders demands that an entity dispose of surplus personal property in the most economical and efficient manner possible.  
5.2 The selection of the disposal method may depend on regulatory, environmental, or safety concerns.  
5.3 A personal property disposal program should be conducted in a manner consistent with the entity’s requirements, goals, and objectives.
SCOPE
1.1 This practice describes various personal property disposal methods including donation, sales, recycling, destruction, and abandonment.  
1.2 This practice recognizes that while some entities distinguish between ‘excess’ and ‘surplus’ personal property, this practice will remain consistent with Terminology E2135 using those words as they are defined therein.  
1.3 Prior to disposing of any personal property, consideration should be given to reutilization/reuse within the owning entity.  
1.4 Disposal is the final step in the final phase of the management of personal property.  
1.5 As entities may incur unnecessary or additional costs associated with recordkeeping, taxes, storage, maintenance, etc,. of personal property until final disposal actions are complete, selecting the most efficient and economical method of disposal is critical to a successful disposal program.  
1.6 This practice does not include specific requirements for the classification or the disposal of scrap items or materials.  
1.7 This practice does not specifically address disposal requirements of governmental laws and regulations. However, this practice enables an entity to align or integrate applicable governmental laws and regulations with its own requirements.  
1.7.1 When disposing of property owned by another entity, entities must adhere to contractual requirements of the owning entity as well as applicable statutory and regulatory guidelines, policies, and requirements specific to the owning entity.  
1.8 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety and health practices and determine the applicability of regulatory limitations prior to use.

SIGNIFICANCE AND USE
5.1 This standard identifies cost-effective sales as a business process of the entity. The central objective is to ensure that assets are sold in a manner best suited to meet the goals of the entity.  
5.2 This standard provides options and considerations to take into account to effectively manage the entity’s assets when considering asset sales.
SCOPE
1.1 This practice encompasses how assets may be sold.  
1.2 Sales of assets may be done when assets used by the entity are no longer required, or to sell assets acquired for the purpose of sale or re-sale. The objectives of a sale will vary by entity; for instance, the goal may be to facilitate the replacement of assets, to obtain needed funds from sales proceeds, or simply to remove assets from the entity’s control and management.  
1.3 This practice does not include sales requirements or restrictions specific to any regulatory body or the various levels of government in which an entity operates. However, this practice provides the entity options for flexibility to best integrate those external requirements.  
1.4 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety and health practices and determine the applicability of regulatory limitations prior to use.

SIGNIFICANCE AND USE
Continuing emphasis by interested stakeholders demands that an entity dispose of surplus assets in the most economical and efficient manner possible.
An efficient personal property reutilization and disposal program should be done in a manner consistent with the entity’s goals and objectives.
SCOPE
1.1 This practice encompasses the disposal of surplus personal property and how surplus property is donated, sold, recycled, abandoned, or destroyed.
1.2 Disposal is the final step in the final phase of the Personal Property Management Cycle. Until the disposal action occurs and is properly documented, the property remains on an entity’s property and financial records and therefore subject to costly cyclic inventories.
1.3 This standard does not include specific requirements for the classification of or the disposal of scrap items or materials.
1.4 This standard does not include specific governmental disposal requirements, or environmental, or security regulations. However, this standard enables an entity to align or integrate those requirements into its own procedures.

SIGNIFICANCE AND USE
LDD is an indicator of the effectiveness of operations. Excessive LDD can indicate poor internal management and controls, policy or procedural weaknesses, or lack of compliance, any one of which can impact entity profitability, mission performance, or reputation.
Addressing and reporting LDD provides a guideline for action for decision makers.
Though the term equipment is used consistently throughout this practice, this process may be used for the other classes of property, for example, material.
SCOPE
1.1 This practice focuses on addressing and reporting loss, damage, or destruction (LDD) of tangible property.
1.2 LDD events are key aspects of risk management. Projecting the possibility or probability of LDD, discovering, disclosing, reporting, managing, and minimizing LDD is a critical and economic factor in the success of the owning or holding entity. This practice also establishes acceptable levels of LDD.
1.3 LDD events are often discovered as a result of a physical inventory or other audit. An actual LDD event can occur at any time during the property life cycle.
1.4 LDD events resulting from natural disasters or other incidents beyond the control of an entity are not subject to the criteria in 1.7. Reporting LDD events is required.
1.5 Natural degradation or normal wear and tear are not considered LDD events and are not addressed in this practice (they may, however, be considered in establishing residual value).
1.6 Loss, damage, and destruction, while three completely different events, are addressed as one for the purposes of this practice.
1.7 This practice does not address situations where LDD is an expected outcome, for example, destructive testing.
1.8 Assessing pecuniary liability for loss, damage, or destruction is not addressed in this practice; such assessments are subject to law.
1.9 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety and health practices and determine the applicability of regulatory limitations prior to use.

SIGNIFICANCE AND USE
This practice establishes a standard equipment control methodology to aid in fulfillment of shortages derived from production requirements or equipment failures.
This practice encourages an inclusive understanding and communication of the control and tracking of equipment, and enables meaningful discussion between parties with interest in the equipment.
This practice is intended to foster and enable additional standard practices related to or based on these terms and concepts.
SCOPE
1.1 This practice describes the process by which open production and failure related demand requirements are fulfilled using existing equipment components.
Note 1—Differing approval requirements are generally dictated by ownership issues. For example, approvals for cannibalization/reclamation of company-owned property may vary substantially from that required for customer-owned property. In all cases, the specific approach to approvals and the levels of approval required are prescribed by the entity with title to/ownership of the property. These requirements are internal to the owning entity. In general, company-owned property is handled in accordance with established practice specific to each individual entity while customer-owned property is handled based upon established practices specific to each entity or as specified within a contractual document.
1.2 This practice is intended to be applicable and appropriate for all equipment-holding entities.
1.3 This practice covers property categorized as equipment.
1.4 This practice can be applied on to an individual item of equipment, groupings of equipment, or to all, or a subset of an entity's equipment.
1.5 This practice clarifies and enables effective and efficient support of equipment in accordance with the provisions of Practice E 2279.
1.6 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety and health practices and determine the applicability of regulatory limitations prior to use.

SIGNIFICANCE AND USE
Continuing emphasis by interested stakeholders demands that an organization dispose of excess assets in the most economical and efficient manner possible.
An efficient personal property utilization and disposal program will result in economies of operation that are essential in today’budget environment.
Each of the property life cycle phases are interdependent of each other and when properly managed can minimize property accountability problems for an organization. However, many organizations only recognize the property process as being important as long as the property is useful. When property reaches the disposal stage, organizations often fail to control excess and surplus property.
SCOPE
1.1 This standard encompasses how excess and surplus personal property is utilized, donated, sold, abandoned or destroyed.
1.2 Disposal is the final step in the final phase of the Personal Property Management Life Cycle. Disposal is a cost effective means to transfer property from accountability records of an organization. Until disposal action occurs and is properly documented, the property remains on organizational property and financial records and therefore subject to costly cyclic inventories.
1.3 This standard does not include disposal requirements specific to state or federal environmental or security regulations. However, this standard enables an organizational to align or integrate state, federal, or its own requirements.

SIGNIFICANCE AND USE
LDD analysis can be an indicator of the adequacy of the control and security exercised over the assets in the possession of or under the cognizance of a company, agency or institution. Excessive LDD can indicate weaknesses in awareness of control processes, physical security, procedures, and the like.
LDD creates concerns regarding effectiveness and efficiency indicating a negative impact on profitability or mission. Excessive LDD increases risk, and indicates at least a potential, if not real, weakness in procedures processes, and control.
SCOPE
1.1 This practice covers the assessment of loss, damage, and destruction (LDD) of property, assets, or material. LDD occurs when such property is found to be missing, damaged, or destroyed. Such discoveries often are made as a result of a physical inventory, an analysis of material used, or routine audits.
1.2 Some occurrences of damage and destruction are the result of natural disasters or other incidents beyond the control of the company, agency, or institution, and are not subject to the standards in paragraph 7. However, the reporting of such instances in accordance with paragraph 8 is still required.
1.3 Some occurrences of LDD are a result of natural degradation or other incidents of fair wear and tear and are not addressed as a part of this practice.
1.4 Loss, damage and destruction, while three completely different occurrences, are addressed as one in this standard. For the purpose of this standard, reporting and evaluating loss, damage and destruction are the same.
1.5 Loss, damage and destruction are key aspects of risk management. Projecting the possibility or probability of LDD, reporting and managing, and minimizing LDD is a critical and economic factor in the success of any endeavor.