The first step in planning an auction is deciding if the auction will be held in-house by the property staff or out-of-house by another department or private company. There are benefits to both selections.

An in-house auction directly involves the public. It provides the perfect opportunity to increasing the departments image in a positive way. Since an in-house auction involves many city or county departments beyond the actual law enforcement agency (accounting, etc.) it can create a sense of unity and connection. It can also cause a drain on department finances. In most agencies, the agency budget pays expenses incurred and overtime needed by personnel while holding the auction; in contrast, the proceeds are deposited to the general fund.

An out-of-house auction trades public relations for cost savings. Another department or private auction company holds the auction off-site. The property is signed over to be sold. If the property is sold at auction for $2000, the $2000 is deposited in the general fund. The agency saves overtime costs but trades away public relations benefits. Sometimes small agencies with limited facilities find this helpful because items can be sent out as needed, no longer being stored for the one or two big yearly auctions.

Each agency must decide what serves best the needs of the community and the budget. Once a decision has been made there are important aspects that must be planned for. In-house or outside auction requires key things to be considered.

In planning any auction strict inventory control must be a primary focus. A complete auction list should be prepared including items number, make, model, serial number and description of any items to be sold. Item numbers should be related to the auction list.

If appropriate, check with other departments to determine if other items are to be auctioned. At least 60 days before the auction request a list from other departments of items they want to send to auction. Make it clear you will accept the items at a later date, otherwise you will be inundated with items to store for auction. Give a specific due date for the return of the list. This will allow you to distribute a combined list of all items to be auctioned to all department heads.

Provide auction item list to other departments heads in advance of auction. About 30 days before the auction, send out the list and set a specific due date for conversion of items. Some local and state laws provide for the conversion of items for departmental use. Converting items for city, county, or agency use saves the taxpayers from having to purchase the items at market value. One example might be a Video Camera that can be used for training films or recording suspects. If your agency provides for the conversion of property, a few guidelines will save a lot of headaches. Require a department head or a specifically designated manager to sign for any equipment to be converted prior to releasing the item. Require only designated management persons come look at the items available (not every employee).

Set a specific deadline date for conversion. Send a copy of the final conversion list to all managers who approved or converted property and a copy to inventory accounting. Keep a copy for the property files and a copy for the chief or sheriff. Provide ample time to remove converted items from the final auction list prior to printing.

Determine what policy your city or county has for adding items to the city/county inventory. If a converted item falls into the policy be certain that the item is added to the inventory list prior to release within the city/county. Prepare a complete listing of all items that were converted over to city/county use. Make sure all paperwork reflects the items were transferred to other city departments - not auctioned. Provide a copy of the list (including approximate value) to the property commander, the Chief or Sheriff, and city manager or county administrator. It helps keep everyone informed of what has been converted and how much the city/county saved. It may not show up in a general fund account, but it does provide some leverage at budget time for negotiated department funding.

Receipts of each sale should be maintained. Request receipts from the outside auction company for sales, or maintain receipts when holding your own auction. If questions arise due to an error, (the wrong item was sold), a receipt will have the market value on the day of sale. It will reduce potential Inability for any error. Occasionally courts order items sold and the proceed paid to the victim or placed toward a court fine. Sales receipts avoid confusion.

The Sheriff or Chief should receive a copy of receipts and a summary statement. Since the agency head is ultimately responsible, it helps keep them in the "know" about what is going on. It also provides ammunition for those annual budget negotiations. Unlike other departments, law enforcement does not always show a positive budget impact. Having "hidden" income from the auction helps bolster and clarify contributions the department has made to the general fund. In one county the annual firearms auction brought in $250,000 yearly. Even if a small agency auction brings in $1,000 per year, it goes a long way toward justifying the expense of purchasing evidence bags, tape, seals, heat sealed pouches, etc.

Auction tags to track the sale of items (labels) should be attached. When possible avoid using property item numbers or case numbers from arrests or seizures. Case numbers are often long and confusing to the public. Property item numbers that use letters (N 1876) can be difficult to arrange in numerical order. The importance of an auction list is to transition the property from evidence to disposable property. The numbers for each item should be easy to read, easy to follow and, easy to track during sales. (1,2,3,105,106, etc.) Add a category for case number on the master list to track items back to the property files, however, case numbers should normally be excluded from public listings.

It is always a good idea to have a policy that prohibits or limits sales to persons employed by the agency or others that may have a conflict of interest. It looks strange to have employees bid on items. If they get the item others think they had inside information. If they are out bid, the agency is accused of having someone bidding to run up the prices for a bigger profit. It is a no win situation.

If the auction is handled on site, it is recommended that the city auditor be invited. This makes a clear statement that everything is being done properly. If the items are sent to a private company or to another department for sale, one of the property staff should attend the auction. Compare the list of what was sent to what was sold, both lists should match!

When preparing items to go to auction avoid "grab bags" involving jewelry. It is worth the time and effort of an agency to have jewelry appraised. Grab bags are best used to sell a collection of low value items as one unit.

Double check all items for legal and safe status. Purses and back packs should be carefully screened for hidden syringes or razor blades. Be certain all items that should have a serial number does have a serial number prior to sale. Discard any opened personal use items such as make up, perfume, shampoo, etc.

These are the basic procedures necessary to prepare for an auction either by property staff, through a private auction company, or sending items through another department for disposal. If the agency decides to hold the auction onsite additional planning is required.

Publicize the auction. Most local or state ordinances require advance notice be published. At least ten days before the auction a public notice should be published in local papers. Some local papers provide free event listings in sections like "What's Happening this Week in..." Cable television can reach a large portion of many communities at little or no cost. Local Groups such as chamber of commerce, business leagues or other organizations can help by passing on information to members. Direct mailings, banners (in high visibility places) or flyers work well in smaller communities. A strange or unusual item for sale can result in a good angle for local news coverage.

Have a written procedure to remove property from the sale. Normally all purchases should be paid for and removed the same day.

Asset tags to track sales. Have a policy that the item number attached to the merchandise is removed at time of payment. The property should be given to the purchaser at time of payment.

Consider the need for bid numbers. Some auctioneers like to use bid numbers. Bid numbers are given to persons who intend to bid on items during the auction. The bidder completes a card with name, address and phone number. The bidder holds up the number to bid on any item. If the bidder purchases several items during the day, each item is set aside for the purchaser to pickup at the end of the day. Some agencies ask a $5 refundable good faith deposit. The $5 is placed toward any purchase, or if no purchases are made, refunded when the bid number is returned.

Utilize employees that work with cash on regular basis. If possible use someone from the accounting division. Experienced money handlers can count, sort, tally cash and complete accounting forms more quickly than inexperienced personnel. Errors are less likely to happen.

Develop a credit card policy. If credit cards will be accepted, will there be a terminal to obtain approval numbers? What state laws apply regarding identification or phone numbers when using credit cards?

Develop a check policy. What type of identification will be required? What about a different address than on the identification? Is a phone number required? (Note: In some states it is illegal to require a phone number.) Will the check be run through an approval terminal? What if the check is returned for insufficient funds? Do not assume that no one will right a "bad" check just because it is a law enforcement auction - - - it happens more often than you might think.

Include a written disclaimer in the auction program/list. At the beginning of the auction have the disclaimer read to those in attendance. Items should be sold as is. Clearly state any refund policy (no refunds is the normal standard). Disclaimers can be simple or complicated. "The City of International and the International Police Department are not responsible for the operation of any items sold at this auction. All items are sold as is with no guarantee of the working condition of any item. All items must be paid for by the close of auction. No items will be stored. We reserve the right to resell any items not paid for by the close of auction..." It may be wise to have the city, county or local attorney review the disclaimer to verify the wording is correct. The disclaimer page is also a good place to print any policies related to accepting cash, credit cards and checks.

It is good public relations to test items before the auction. Even though the disclaimer says no warranty is offered, it is important to test electronic items to be certain they work. Items that don't work are usually junk, not property and should not be offered for sale. When people feel they were cheated it hurts public relations and attendance at the next auction. Disclaimers are not intended to permit the sale of junk, they are intended to protect the agency if the television breaks after three days of use.

A jewelry display case protects small items from theft. Display cases let bidders see the items without risking loss. Separating junk from valuable items is important. A ring worth $3000 will sell at auction for $20 or $30 dollars because it will be assumed the gold or diamond is not real. When considerable jewelry is in involved, it is usually better to sell the jewelry though a separate, but open bid system, to interested jewelers. Coin sets and baseball card collections may have no value or be worth hundreds of dollars. One baseball card may be worth several thousand dollars. A few phone calls to an appraiser can provide a general idea of the value. It can make the difference between a $20 auction bid and a $2000 return.

Consider setting a minimum bid on some items. If you know that a particular item is worth $1000 dollars it may be wise to decide a minimum bid ($100, $500) prior to offering the item for sale. A minimum bid policy must be weighed against possible storage of an item if the minimum bid is not offered.

Setting up property for viewing. Determine where the auction wi II actually be held. If the actual auction will be held away from the property storage facility, will you have people and equipment available to move the property to the auction location? Will there be sufficient space to set the property out before the auction for viewing? Will security (explorers, reserve officers, patrol officers, volunteers) be available to watch out for theft? (Some people will try anything!) If a citizen recognizes that their stolen property is about to be auctioned, do you have a policy to withhold the item until the true owner can be determined?

Bike sales are usually a big hit at auctions. Everyone likes to buy that good looking bike for pennies on the dollar. Bikes are often auctioned because the owner failed to license the bike. No bike license - there is no way to return it to the owner. If bikes will be auctioned, do you have a policy that requires bike licenses be purchased at time of sale? Is there someone available to handle the bike license sale and place the license on the bike?

Auctions are great places to educate the public on crime prevention. Many agencies find auctions a good place for the crime prevention unit to answer questions and display flyers on how to avoid theft and burglary. Linking theft with how property ended up at the auction can be impressive. Part of the auction program can include information on marking or engraving items. If your agency has a crime prevention mascot (McGruff, talking police car, etc.) it becomes a true family event and positive law enforcement day at the auction.

Proper facilities can lead to the financial success or failure of an auction. Anticipate children will be accompanying their parents. Having easy access to parking lets the entire family enjoy the auction. If parking congestion will be a problem have staff available to assist. Will the location create a potential risk to children who may "get loose" from parental control? If it will be held in the agency parking lot, will prisoner transports be involved? Will agency vehicles need to be rerouted or parked elsewhere?

If the auction is held at a park or in the police/sheriff parking lot comfort of buyers must be considered. Are restrooms nearby and easily accessible? Will the restrooms be stocked with plenty of paper and checked throughout the day? Will seating be adequate? Will it be in a covered or shaded area (especially during the summer)? Will the stage be visible from the seating area and any overflow areas?

Food is an important consideration. If a parent has to leave the auction to get a soda or snack for a child, odds are they won't come back. Some agencies have reserve officers, scouting troops or volunteers that need to raise money for other projects. A food table is always a bonus. If no groups are available, consider contacting a catering truck. A catering truck can help keep important buyers at the auction. Providing water or having a water fountain available is another necessity.

Reserve officers, explorer scouts and volunteers are perfect, cost effective, additions to any property auction. Everyone working the event should be in clothing that identifies them as part of the agency. Attire should be appropriate for each job assignments (uniform, jumpsuit, imprinted t-shirt). Easily identifiable staff equals easy to locate help. Be certain departmental policy prohibits any uniformed/agency clothing person from bidding regardless if they are working the auction or not. It is preferable that no members of the agency be permitted to place a bid. It always leads to suspicion and bad feelings.

Keep in mind that while everyone at the agency is trustworthy, the same care toward property room security should be employed. Have designated property staff members either move the evidence out of the property room, or immediately supervise the move. Place auction items, if possible, into a separate storage area in preparation for the auction. Avoid having anyone going in and out of the property room that would normally not be given access.

Finding an auctioneer can create new friends. Many communities find that local government officials such as the Mayor, Council Members, or members of the Board of Supervisors eagerly jump at the chance to get in front of voters. Having several city officials who can trade-off during the auction makes it fun for everyone. Some communities find that a professional auctioneer working at the event suits the needs they have. A professional auctioneer usually gets a percentage of the profits from the sales. In either case, be sure to have an adequate public address system available so everyone can hear the bids and other announcements. Always have water available for the auctioneer. Lots of fast talking can dry out a persons throat.

No Auction is complete until the paperwork is done! Paperwork includes updating property files and case files on the disposition of each auctioned item. Make sure all paperwork has been completed and filed properly within 10 working days of the auction. Failing to set a deadline leads to stacks of unfiled forms that drag on seemingly forever.

Let the auction report make you and your agency look good! Create a report that includes: 

• your project deadlines 
• list of converted items 
• auction program 
• total bike license sales 
• income from the sale of non-owned agency held (no longer evidence) property that was sold 
• government property sold (items from other departments) 
• agency owned property (items from your agency) that was sold 
• income that was raised by food sales (indicate what group made the money) 
• some pictures of the actual event 
• any local news stories 
• any other pertinent information

Prepare at least two copies. Keep one in the property files, and send one to the division command for the Chief or Sheriff. Place the financial summary on the top. Follow with a written summary of the auction (who were the auctioneers, how many people showed up, who volunteered, etc). Finish the report with pictures, news reports and other documentation. An auction report provides important data for use within the agency and during department budget planning.

The auction report provides a yearly opportunity to create a very positive portrayal of the demanding job necessary to create and run a successful auction. An ingenious report writer can find a way to provide a glimpse of the great job the property and evidence section does all year round!

One last thing... now that your auction has been a big hit, take time to review what did and did not work. Include in the auction file changes to the time line, auction procedure, worker coordination or other areas that will make next years event even better.