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SPA Process User’s Guide – Chapter 2 – General Policies

Cannibalization or Disposal of Salvage Property

Salvage: property which through use, time or accident becomes depleted, worn out, damaged or obsolete and can no longer serve the purpose for which is was originally intended. Salvage property can be cannibalized or disposed of using the guidelines in the “Policy” section below.

Cannibalization: the authorized removal of components from one item of property for installation on another item of property to meet a specific requirement and/or to return an item to service.

Policy

Any salvage property can be sold (at a local sale for scrap) or destroyed by the agency. However, if the salvage property is a capitalized or controlled property item on SPA, the agency must first request a Delegation of Authority form and sale number from the State Surplus division of the TFC before it can be sold. Authorization granted to cannibalize or dispose of salvage property should be documented. See the Property Destruction form, which can be modified or used by agencies.

The decision to allow cannibalization is determined by the agency and can be delegated to the property manager, custodian, user, technical experts or other management levels. There should be a formal agency cannibalization policy that requires the custodian/management authority to submit a written request to cannibalize a property item and to send the remains of the property to a holding area for scrap or destruction. Agencies/property managers should not allow cannibalized items to be reported as surplus to the TFC.

Suggested form to use at time of cannibalization/disposal of salvage property — not a required form.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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