When I was at university and broke, I sold my record collection… don’t see why it’s any different for them… 
Well it’s for any seized property. Those flip flops are Armani and look unworn and still have tags on. According to http://www.armaniexchange.com/product/mens/accessories/flip+flop.do, they’re worth $20-$25. Definitely worth a place in the auction IMO.
Page not found has the full list of auctionable items. They’re even selling some Hennessy in a (hopefully/apparently) unopened bottle.