Spread the Wealth

Using Departmental Reimbursements to Improve Surplus Throughput and Results

At many colleges and universities, it can be a challenge to convince the departments on campus to contact the surplus property department when disposing of end of life assets. Giving them a stake in the game can encourage participation.

Institutions of higher education across the country leverage various forms of a departmental reimbursement strategy to generate greater throughput and revenues. Here are a few things to consider when revising or implementing your strategy.

Is your department fully-funded by the institution or are you self-funded?
A fully funded department can consider giving 100% of revenues from asset sales back to the department who disposed of the asset and/or the department providing their funding while a self-funded surplus operation needs to consider their own operating expenses when establishing their reimbursement strategy.

What is your operating budget? What are your growth goals?
Not only do we suggest considering your operating budget but we also recommend you consider your growth goals. Are you looking to purchase a hard drive crusher, a cardbaord baler, a software solution or add a new employee? Make sure to consider how to secure the budget to execute these plans when determining how to structure your departmental reimbursement plan.

Do you want to take a flat fee, use a tiered structure, or combine both?
Based on your goals, budget, and past results, put together a solution that is going to give you the resources you need. Maybe you simply keep the first $100 of every sale. Maybe it’s the first $50 and 20% of everything that sells for over $50.

How will you track this information and communicate the results?
From spreadsheets to software packages with an auditable history and dynamic reporting functionality, it’s about deciding what will work best for you. Either way, we advise you to not jump in until the proper processes and procedures are in place. Being able to prove your accountability and justify your results is critical.

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