State Surplus Property Reference Manual



The intent of this manual is to identify to Surplus Property Management Office customers, the procedures to dispose of State-owned or acquired material within the State of Arizona. It should be utilized as the guideline to ensure the proper submission of all required paperwork and to identify the proper procedure that has been outlined for each category of disposal. It is recommended that all personnel that has been designated to be responsible for their agency's materials become familiar with these instructions. This will help facilitate the rapid disposal of their agency's excess and surplus materials as required by law.


Please identify any discrepancies or problems to the SPMO Operations Manager at 542-5701.




A. Excess Materials - means any materials which have a remaining useful life but which are no longer required by the using agency in possession of the materials.


B. Nonexpendable Materials - means all tangible materials which have an original acquisition cost over an amount set by law, regulation, rule, policy, or provision and a probable useful life of more than one year.


C. Surplus Materials - means any materials including those that no longer have any use to this state or materials acquired from the United States government. This includes obsolete materials, scrap materials, and nonexpendable materials that have completed their useful life cycle.


D. Expendable Property - for purposes of this manual, expendable property means supplies, materials, or an item of equipment which:


1. Has a useful life of one year or less.


2. Is totally consumed in use.


3. Loses its identity when used or attached to other units.


4. Is more economically replaced than repaired.


5. Has a nature that makes formal accountability impractical.


E. Fair Market Value - means the price at which sales have been consummated for assets of like type, quality, and quantity in a particular market at the time of acquisition.


F. Materials - means all property, including equipment, supplies, printing, insurance, and leased personal property but does not include land, a permanent interest in land or real property, or leased space.


G. Personal Property - means all property which, due to its nature or physical characteristics, cannot be included within the scope or definition of real property. Personal property is capable of being moved from one place to another and usually has a useful life of temporary duration as compared to real property. Personal property is further classified as expendable or nonexpendable.


H. Salvage - means property that is worn, damaged, deteriorated, in an incomplete condition, or of a specialized nature that has no reasonable prospect of sale or use but retains some value in excess of its basic material content. Repairs required to make such property useable are estimated to cost in excess of 65% of the original cost.


I. Real Property - means land, buildings, structures, right-of-ways, fences, sidewalks, water and sewage systems, irrigation and drainage systems, easements and other fixtures or appliances when permanently incorporated in or attached to buildings and structures.


Note: Surplus Property does not handle the disposition of Real Property.


J. Durable Property - means property that is able to withstand wear or decay and is not currently listed on the agency's capital inventory.




The Surplus Property Management Office is responsible for the disposition of all excess and surplus property for the State of Arizona as designated under Title 2, Chapter 15, Article 3 of the Arizona Administrative Code. Property may be inspected and made available for transfer or sale at the discretion of the Surplus Property Administrator as provided by A.R.S. 41-2601 to 41-2607. No using agency, except the Department of Public Safety pursuant to A.R.S. 41-1713(B)(7), The Arizona Coliseum and Exposition Center pursuant to A.R.S. 3-1007(1), Arizona Correctional Industries pursuant to A.R.S. 41-1623(E) and 41-1624(B), and the Department of Mines and Mineral Resources pursuant to A.R.S. 27-105(3), shall transfer, sell, trade-in, condemn or otherwise dispose of materials by the state without the written authorization of the Surplus Property Administrator.


1.0 Disposition of Personal Property Declared Surplus, Excess, or Unusable by a State Agency


This property or equipment will be reported to the Department of Administration Surplus Property Management Office for approval prior to transfer or disposal. A form SP101 "Request for Authorization to Dispose of State Property" (See instructions Appendix A) will be prepared by the State Agency and submitted to the Surplus Property Management Office to identify items that are excess, surplus, or unusable. Personal property approved for disposal by the Surplus Property Management Office must be removed from the agency's inventory by using Form SP101. These deletions may be a result of an approved transfer, trade-in, sale, or other disposition; such as loss, theft, cannibalization, or on-site destruction. Appropriate entries should be made in the agency's capital equipment inventory by providing a copy to the Department of Administration, General Accounting Office.


2.0 Categories of Property Disposition


It is very important to maintain accurate accountability of all categories of property and equipment whether it is identified as non-expendable, expendable, or durable. This is to identify assets that may be utilized by other State Agencies, Public Agencies, Political Subdivisions, and Non-Profit Health, or Educational Organizations throughout the State of Arizona. The property that you determine as outdated or unusable will be something that these organizations may need desperately and could not obtain due to a limited tax base or financial support. The following categories are a way that may assist you in determining how you should dispose of your agency's property.


2.1 Transfer to Surplus Property Warehouse


Any surplus personal property that is not transferred to another agency will be turned in to the Surplus Property Management Office (Hereafter referred to as SPMO). Prepare a Form SP101 in accordance with Appendix A of this manual. A control number will be assigned to the document by the State Property Inventory Clerk and forwarded to the SPMO warehouse for turn-in scheduling. All turn-ins to the SPMO warehouse must be scheduled prior to the physical arrival of the equipment or property. If you haven't scheduled an appointment to turn in your items within thirty (30) days, your Form SP101 will be canceled and returned to your agency for resubmission. It is the responsibility of each owning organization to pick up all property that is listed on Form SP101 and deliver it to the SPMO warehouse. The following criteria must be met prior to transportation of your turn-in items to the SPMO warehouse:


All vehicles are required to have their Certificate of Title properly annotated, signed, and notarized which should be attached to the Form SP101 requesting turn-in. If Form SP101 is canceled because the vehicle was not turned in within the thirty (30) day time frame, and if the agency does not intend to resubmit another Form SP101, a return of title must be requested from the SPMO. The request will be in writing explaining why the vehicle is not going to be turned in. 

All decals and license plates will be removed from the vehicles prior to transporting them to the SPMO warehouse. 

All hazardous materials will be removed from any containers that were utilized to store them. These containers will be triple-rinsed prior to receipt at the SPMO warehouse facility. Medical items will be certified for non-contamination. 

Each piece of property or equipment turned into the SPMO warehouse on a Form SP101 will have an item number physically marked on the property or equipment so it is easily identified. The number marked on the item will correspond with the number identified on Form SP101. 

It is the responsibility of each agency to ensure that their documentation is filled out properly. The SPMO warehouse will not accept property that does not fit the description listed on Form SP101. Please be as specific as possible and include the year, make, manufacturer, and Vehicle Identification Number (VIN) when turning in a vehicle or trailer that requires a Certificate of Title.


2.2 Transfer to Other Agencies


All transfers of Surplus Personal Property between state governmental units must be approved by the Surplus Property Administrator or his designated representative. The possessing agency will prepare a Form SP101 (see Appendix A), listing the property to be transferred, and forward it to the Surplus Property Management Office for approval. After determining that a transfer is in the best interests of the State of Arizona, the SPMO will approve the transfer. The property transfer will not be physically accomplished until after receipt of an approved Form SP101 by both organizations involved.




All direct transfers of state surplus between state governmental units must be approved by the Surplus Property Administrator. Service and handling charges will not be assessed by the Surplus Property Management Office if the direct transfer between state governmental units can be accomplished without the use of personnel, equipment handling, or facility support of the Surplus Property Management Office. 

All other direct transfers of state surplus materials will be assessed as a service and handling charge. The receiving entity shall pay a transfer fee of ten percent (10%) of the fair market value of the property with a minimum charge of $20.00 and a maximum fee of $300.00. 



2.4 Trade-In


Before surplus materials are disposed of by trade-in to a vendor towards a credit on a purchase, the SPMO must approve the request. The Surplus Property Administrator will base this determination on the urgency of need by other state governmental units or whether the trade-in value is expected to exceed the value realized through the sale of the materials.


A Form SP101 should be prepared by your agency with a cover letter attached to provide the specific details of the request. An example of this letter is provided in Appendix B. A copy of the quote or bid should be attached to the document showing the items to be traded and the value of the trade. Forward the Request to the SPMO for Approval. The Surplus Property Administrator will approve or deny the request and the SP101 will be returned to your agency.


2.5 Cannibalization


Your agency may have a requirement to repair a certain piece of property or equipment and repair parts are not available. Sometimes it is very difficult to find parts to repair these items because the equipment may be old, or it is unique in nature, or the cost may be too excessive to justify. This is when you may decide that the cannibalization of a like item for parts is in your agency's best interest.


A Form SP101 requesting cannibalization should be prepared and forwarded to the SPMO for approval. The request will provide complete information regarding the equipment to be cannibalized and a list of parts to be removed.


NOTE: Agencies are cautioned against cannibalizing property without authority from the SPMO because another agency may wish to utilize the property after it makes the needed repairs


2.6 On-Site Destruction and Scrap


Agencies sometimes have items that need to be disposed of through the SPMO that would not be cost-effective to transport, or are in such bad condition that redistribution or sale would not be in the best interest of the State. This is when a request for on-site destruction or scrap of the item(s) for material content is the best way of disposal.


A Form SP101 requesting on-site destruction or to scrap should be prepared and forwarded to the SPMO for approval. The request will provide complete information regarding the equipment to be destroyed. Pictures of these items are always a valuable tool to assist the SPMO. If the SPMO reviews the request and determines that further information is required, you will be contacted to coordinate a physical review of these items.


Note: A request for the on-site destruction of a vehicle must have a dismantle permit attached to Form SP101.


Once the SP101 has been approved, the SPMO will forward the requested package back to your agency for disposition. If the item is approved to be scrapped, contact the SPMO for information on the current scrap metal contractor for the state.


3.0 Lost, Stolen, or Destroyed Nonexpendable Material


The theft of any non-expendable material shall be immediately reported to the appropriate law enforcement agency. Items that have been lost, stolen or destroyed must be reported to the Department of Administration General Accounting Office within ten (10) days of discovery. Prepare a Form SP101 in accordance with Appendix A and indicate in the block marked "Other" whether the item(s) were lost, stolen, or destroyed. Forward to the SPMO with a copy of the required incident report detailing the circumstances and results of the investigation.


The SPMO will acknowledge and forward Form SP101 with the attached incident report immediately to the Department of Administration General Accounting Office. Your agency may be authorized in writing by the General Accounting Office to delete identified items from your inventory.


NOTE: Any such material deleted from the inventory that is subsequently located shall be added to the inventory.


3.1 Disposal of Damaged Material Residue


After damaged material has been released from the investigation, it has to be turned in to the SPMO for proper disposal. A Form SP101 should be prepared for any items not turned over to the Department of Administration Risk Management Division on a claim.


The items that are required to be turned in to the SPMO for disposal may be inspected prior to disposition instructions. Due to the general nature of damaged equipment residue, the most cost-effective method of disposal must be determined.


4.0 Disposal of Hazardous Materials


All materials that have a hazardous impact on the environment if not disposed of properly like oils, lubricants, solvents, cleaners, paint, antifreeze, copier toner, refrigerator coolant, freon, contaminated medical materials, will not be accepted at the SPMO warehouse for a turn-in. These types of items and anything of a similar nature will have to be turned in utilizing the state's hazardous materials contract. For more information, please contact the Department of Administration Enterprise Procurement Services (602) 542 - 5511 for details.


5.0 Disposal of Material for Agencies Other Than the State of Arizona


The SPMO will accept equipment and property for disposal from any organization that is currently eligible donee under the Federal Donation Program. The agency or organization would be required to fill out Form SP101 in accordance with Appendix A and follow the guidelines as outlined in paragraph II.A. for the turn-in of materials to the SPMO warehouse. Reimbursement to these organizations for the sale or transfer of their material will be outlined in paragraph VI. below.


6.0 Allocation of Proceeds from Sale or Disposal of Excess or Surplus Materials


Except as otherwise provided in subsection A, proceeds from the disposition of excess and surplus materials shall be retained by the Surplus Property Management Office.


State governmental units, except the Department of Public Safety pursuant to A.R.S. 41-1713(B)(6), that originally purchased material with general fund monies shall not be reimbursed for its transfer or sale. 

State Governmental units that originally purchased material with special fund monies, such as revolving, dedicated, or federal funds; or funds received from any material disposed of SPMO for eligible donees with the Federal Donation Program, shall be reimbursed, less SPMO's fee, for its transfer or sale according to the following schedule:

The SPMO shall collect a fee for the direct transfer of excess or surplus material as identified in Section 2.2. The balance of the sale price shall be reimbursed to the transferring agency. 

Reimbursements of non-direct transfer of state and eligible donee's excess or surplus materials shall be as follows: 

A. No reimbursement if sale proceeds for an item are less than $50.00.


B. Reimbursement at the rate of not less than 70% of the sale proceeds for an item selling for a price greater than $50.00.


C. Reimbursement shall not be made until the completion of the sale and payment by the donee is received by SPMO.


7.0 Instructions for preparation of an SPMO Form SP101, Property Disposal Request, and Authorization.


Agency Authority No.:


If your agency uses a document control numbering system, place your assigned number in this space block. The use of this block is optional.


SPMO Authority No.:


This block is to be utilized by the SPMO only.




The date that Form SP101 is submitted to SPMO.


Agency, Address, Telephone No.:


Enter Agency/Division title, complete address, and telephone number.


Signature of Authorized Donee:


This is the person authorized to dispose of property from the unit inventory.


Type Name Here:


The name of the person signing in Block (E).




The position title of the person signing in Block (E).


Check Appropriate Box:


In the Section marked "Check Appropriate Box," there are several actions available to your agency. Only one type of action is allowed per form. Please indicate which action is being requested.


Transfer to Surplus Property Warehouse:


This box should be marked if the property is to be turned in to our warehouse. Please call the warehouse and schedule an appointment prior to transporting your items. You may send Form SP101 before you schedule the turn-in.


Transfer To:


This block should be marked if the property is going to be transferred to another Agency or authorized Donee and the name of the Organization should be filled in the space provided.


Trade-in To: 


This block should be marked if requesting a trade-in to a vendor towards a credit on a purchase. Form SP101 will be accompanied by a cover letter explaining the details of the transaction. (Appendix B) 




This block should be marked if a property is to be cannibalized for parts to repair a like item of equipment.


On-site Destruction: 


This block should be marked for a property that is to be destroyed because it no longer has any resale value, is beyond economic repair, or is residue from damage.


Note: Any request for the on-site destruction of a vehicle must have a dismantle permit attached to Form SP101. 




This block should be marked to identify any lost, damaged, or destroyed material, items that are being purged from inventory, and any other circumstance that would require deletion from inventory. Form SP101 must be accompanied by one of the following supporting documentation.


1. Letter of explanation 

2. Police report 

3. Incident report


Funding Source:


For accounting purposes, use this block to identify the type of funds utilized when the material was purchased. For example, it could have been purchased with Federal, General, or Revolving funds. Note: The SPMO uses this block to determine if there will be reimbursement. If the block is left blank or is checked "General" no reimbursement will be made. 

Item No.:


This is a sequential number per line item listed on Form SP101. (1,2,3,4 etc.) The material that is identified to be turned in to the SPMO should have this number marked on it to help expedite receiving.


Condition Code:


The physical condition of the material will be reflected in this block utilizing the condition codes identified in the upper right-hand corner of Form SP101. 

Federal Stock No.:


This is a number utilized to identify the material category group of the item identified. The category numbers are identified in Appendix D of this manual. 



A description of the item will be entered in this block. Include the manufacturer's serial numbers if applicable. For Items with a Vehicle Identification Number (VIN) please include the VIN on the SP101.


State Equipment No.:


Enter the number assigned to the item on your agency's capital equipment inventory. This is required if requesting deletion from inventory. If the item is not in inventory and is maintained by an internal custodial record, leave this block blank. Reminder: Items that are not identified on your agency's capital inventory listing are also required to be disposed of through the SPMO.


Date Acquired Mo/Yr:


If known, the date the item was acquired or purchased should be annotated in this block. 


The quantity of the item identified for disposal action. When a multiple of like items of capital equipment are identified for disposal utilizing the same line item number, please indicate all state equipment numbers accordingly.


Original Cost:


If known, please annotate the original cost of the item when purchased or acquired by your agency.


Estimated Value:


If known, please annotate the estimated fair market value of the item at time of disposal request.


Fund No.:


Annotate the accounting fund number for the item identified if applicable.


SP Use Only:


Leave Blank. This block is for SPMO use only.


Owning Agency Remarks:


This block may be utilized by the agency. Please identify a point of contact to provide further information if needed.




The shaded area of Form SP101 is for SPMO use only. Please leave this area blank. Form SP101 may be rejected if the required information provided is not legibly typed or printed.


8.0 Data Destruction Standards

Listed below are links to the Directive, Memo, and Certification



9.0  Refrigerants and CFC Bearing Devices Disposal Standards


Listed below are links to the Memo and Policy regarding the disposal of Refrigerant / CFC-bearing devices.