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The setting for our Open Comments may look a bit different but its purpose hasn't changed -- to present new or revised policies that may soon be published in the OBFS policy manual and allow you to preview and comment on them. We've moved to a blog environment, but have kept the comment process as easy for you as possible.
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In this Open Comment: Section 12 - Dispose of Unneeded Equipment
We have revised this Property Accounting policy to clearly identify OBFS and unit responsibilities for proper treatment of unneeded University-owned equipment. The revised policy will help units understand and comply with the requirements of the IL Administrative Code when deeming equipment (and certain types of collections) "unneeded."
Key revisions include:
- IL Administrative Code requirements regarding retaining or hoarding equipment, and timeframe for physical removal of unneeded equipment from your unit and transfer of equipment oversight in Banner.
- A more complete description of disposal procedures, with specifics for each campus and type of equipment -- for example, "desktop, laptop, or tablet," and, "all other equipment," (printers, etc.).
- A clearer description of types of "Other Disposals," including trade-ins, permanent transfers, equipment sale/donation, component parts (canibalization), and collections of art/historical treasures.
- Links to specific references in the IL Administrative Code, listed under "Additional Resources."
Please take a few moments to review this policy and submit your feedback. Thank you!
Read the policy, below...
Dispose of Unneeded Equipment
Before You Begin
No one is permitted to remove from the buildings and grounds any property belonging to the University, even though the equipment may appear to be of no value, unless all relevant policies and procedures are followed. This includes removal of property designated as scrap or recycling and applies to all unneeded equipment regardless of historical cost, tagging status, or inclusion in Banner Fixed Assets.
Retaining or hoarding unneeded equipment limits its potential re-use by other University units or state agencies, and is a violation of Sec 5010.610 of the IL Administrative Code.
Units must dispose of unneeded equipment within 30 days, in compliance with Sec 5010.400 of the IL Administrative Code. Units are responsible for paying any costs associated with the disposal of equipment.
Begin
To dispose of unneeded equipment:
- If the equipment is owned by a project sponsor, obtain approval for disposal from your campus Grants and Contracts office.
- Consult Banner Fixed Assets to confirm that your unit is on record as the responsible organization for the equipment and that it is titled to the State of Illinois.
- Follow the remaining steps in this process even if the equipment is not in Banner Fixed Assets.
- Secure the equipment until this procedure is complete as you are responsible for it until custody has been transferred.
- Identify all hazardous materials and follow your campus procedures for their removal.
- Examine the item to assess its condition. Decide whether it should be classified as scrap or surplus.
- At Urbana and Chicago - Complete a surplus/disposal transaction in FABweb, then follow steps 8-11.
At Springfield - If the equipment is a desktop, laptop, or tablet computing device, complete a transfer transaction in FABweb, transferring the computer to UIS Information Technology Services (ITS), then follow steps 9-11. ITS will complete step 8. For all other equipment, complete a surplus/disposal transaction in FABweb, then follow steps 8-11.
- If you are disposing of a desktop, laptop, or tablet computing device:
- Remove the data from the equipment (scrub).
- Affix a Scrub Label to the front of the item to certify that you have removed the data.
- On the label, check:
- "Degaussed" if the data was degaussed (leaves the data in random patterns and therefore unrecoverable according to federal requirements).
- "Overwritten" if the data was overwritten.
- "Inoperable Device" if the device is inoperable and cannot run data elimination software.
- Do not remove the hard drive or other components. If the Scrub Label is missing, you may be charged for the cost of eliminating the data or the equipment may be returned to you for scrubbing, at your expense.
- Use FABweb to forward the surplus/disposal transaction to your unit approver, who will approve and forward it to University Property Accounting and Reporting (UPAR).
- Cancel or modify any maintenance contracts related to the equipment. If the item was insured, contact the University Office of Risk Management for assistance.
- Four weeks after submitting the request, verify that the chart and organization for the asset has been changed to the surplus warehouse in Banner Fixed Assets.
Equipment Removals
Each campus has a different process for removing equipment from units after UPAR approves disposal:
- Urbana - Warehouse staff will contact you and either schedule a visit to inspect the equipment, or confirm that your unit will arrange shipment directly to the warehouse.
- Chicago - Submit a service request to the Facilities Management Service Desk to transfer the equipment to your campus surplus warehouse.
- Springfield - Building Services receives the approved disposal request form from UPAR and will initiate transportation of your equipment.
- Off-campus locations - Take the equipment to the closest campus surplus warehouse.
Other Disposals
Trade-ins
Equipment can be traded in if your unit is purchasing new, "like-kind" equipment. Document the trade-in on all purchasing documents. Complete a surplus/disposal transaction in FABweb to remove the traded-in equipment from your inventory. Equipment cannot be traded in for store credit to be used later, or for items that are "unlike" (equipment for supplies, equipment for reduced rental rates, equipment for inventory for resale, etc.).
Permanent Transfers to Other Institutions
With appropriate University approvals and in compliance with the IL Department of Central Management Services (CMS), equipment purchased with restricted, sponsored research funds may be eligible for exemption from State property disposal rules. Contact your campus Grants and Contracts office for more information.
Sale, Donation, or Transfer to Other State Agency
On rare occasions it may be possible to dispose of equipment by sale or donation, or transfer to another state agency, provided your unit receives prior approval to do so from UPAR and the state. The equipment must first be reported through a surplus/disposal transaction in FABweb, and approved as surplus to the University. Consult with UPAR before taking any other steps to sell or donate unneeded equipment. The following process must be followed before a sale or donation exception will be granted:
- UPAR will confirm no other University units are in need of the item(s).
- CMS will contact other state agencies to determine whether other agencies want the item(s).
- If no other University units or state agencies want the item(s), a formal request to the State for exemption to sell or donate will be processed through UPAR.
Component Parts
Before equipment is used only for its component parts (cannibalization), you must complete a surplus/disposal transaction in FABweb. If UPAR approves the transaction, you may remove the usable parts and scrap the remainder. If any surviving part(s) must be inventoried as an asset, report it through FABweb as a non-cash addition.
Collections or Art or Historical Treasures
Items that are part of a collection may not be disposed of without approval from UPAR. Proceeds from the sale, exchange, or other disposal of any item belonging to a collection of works of art or historical treasures must be applied to the acquisition of additional items for the same collection. Proceeds may not be used to support operating costs, whether directly related to the collection or otherwise.
Related Policies and Procedures
Section 12 -- Remove Data from Electronic Devices
Additional Resources
FABweb Transfers and Disposals Participant Guide
IL Administrative Code Section 5010
Section 5010.400 – Equipment Inventory Reporting
Section 5010.680 – Trade-Ins
Section 5010.61 -- Disposal of Transferrable Equipment
Section 5010.260 – Cannibalization
Campus Facilities Units
Urbana
Facilities and Services
Chicago
Facilities Management Service Desk
Springfield
Facilities Scheduling and Services
Disposal of Electronic Equipment at UIS
UIS Equipment Transfers and Disposals Procedures
Scrap and Surplus in Definitions
Scrub Labels:
Chicago
Springfield and Urbana-Champaign:
Avery 5160 (30 labels/sheet, 1" x 2 5/8")
Avery 5163 (10 labels/sheet, 2" x 4")
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