State practices and procedures prevail on disposal of excess equipment.

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  To ensure privacy standards are met prior to disposal of excess equipment, Federal procedures must be followed in handling and cleanup of any electronic records and software.

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  The DDS must cease all transactions to dispose of equipment upon notification that SSA is to assume the disability function from the State.

Obtain RO approval when the acquisition cost, trade-in value, resale value or salvage value is $5,000 or more.

Credit the value of the equipment to the SSA DDS account in the current year. Include the description of the item and cost on Form SSA-871 (State Agency Schedule of Equipment Purchased for SSA Disability Programs) and the status of the obligation on Form SSA-4513 (State Agency Report of Obligations for SSA Disability Programs).

Where previously purchased equipment is traded-in on new equipment, apply the trade-in value to the gross cost of the new item to reduce the Federal obligation.