Welcome!
The Office of Business and Financial Services is hosting an open comment period, beginning August 1 and closing August 15 at 5 p.m. CT, related to changes to Section 12 Property Accounting of OBFS Policies and Procedures.
The following changes are being presented:
Policies are being revised based on improved forms and instructions for requests of outbound equipment transfers. Forms have been revised for clarity and completeness of information regarding the specifics of the outbound transfer and for improved data entry and electronic sharing. Instructions have been revised to better assist users with form contents and routing. The outbound equipment transfer process has been improved to include review of the outbound equipment by University Export Control when warranted. A new binding agreement between the University and the recipient institution is also being implemented and will be required prior to equipment leaving the University.
Updated Forms
We thank everyone that provided feedback during our open comment period for these proposed changes. If you have any additional questions about the new OBFS Policies and Procedures, contact OBFS Policies at obfspolicies@uillinois.edu.
Permanently Transfer Equipment with Researcher
Policy Statement
Units can permanently transfer equipment purchased from non-State appropriated funds to another university or non-profit institution with a Researcher. Approvals from the Researcher, Unit Head, College Dean, Property Accounting, and the Department of Central Management Services (CMS) at the State are required for all transfers. Approval from the Office of the Vice Chancellor for Research (OVCR) Compliance Officer is required for export controlled and/or international transfers and approval from the Sponsored Programs Administration (UIUC), Research and Sponsored Programs – Post-Award (UIS) or the Grants and Contracts (UIC) office are required for equipment purchased with sponsored project funds.
Do not move any equipment until all these steps and approvals have been completed.
Procedure
To transfer equipment to another university or non-profit institution:
- Consult Banner Fixed Assets to confirm that your unit is on record as the responsible organization for the equipment to be transferred and that it is titled to the State of Illinois.
- Determine that all these criteria are met:
- The equipment has been used by the University of Illinois Researcher for the purpose of facilitating research or for other sponsored activities including cost share commitments.
- The equipment was purchased without use of State-appropriated funds The Researcher is leaving the University of Illinois and needs the equipment to continue research or other sponsored activities at the Recipient Institution.
- Data and software have been eliminated from electronic storage media on the equipment OR data and/or software remains stored on the equipment and the unit either has executed all necessary agreements or has confirmed that there are no licensing, privacy, or other compliance issues associated with the proposed transfer.
- The Recipient Institution has expressed willingness to accept responsibility for the equipment.
- Complete a Request to Permanently Transfer Equipment with Researcher form by filling out Sections 1 and 2 and the Schedule of Equipment. Obtain the unit approvals in Section 3.
- Route the form to the appropriate University office as indicated in Section 4 of Research to Permanently Transfer Equipment with Researcher using the following guidelines:
- Export-controlled equipment - route through the OVCR Compliance Officer.
- Sponsored equipment- route through the Sponsored Programs Administration (UIUC), Research and Sponsored Programs – Post-Award (UIS) or the Grants and Contracts (UIC) office.
- Both export-controlled and sponsored equipment-route through the OVCR Compliance Officer.
- Non export-controlled and Non-Sponsored Equipment – route through Property Accounting.
- After the form is routed per the guidelines above, the remaining approvals will be obtained without unit involvement. Property Accounting obtains approval from CMS. CMS takes up to 30 days to approve or deny the request.
- Once all approvals are obtained, Property Accounting emails the completed form to the unit along with instructions to complete an Agreement for Permanent Transfer of Equipment.
- The unit completes the Property Accounting Contract Approval Routing Form along with the Agreement, obtains the Recipient Institution signature and forwards it to UPAR.
- UPAR will apply the Comptroller signature and then send the Agreement to the unit letting them know they can transfer the equipment. UPAR will process a disposal for the transferred equipment.
Forms Used in this Procedure
Request to Permanently Transfer Equipment with Researcher
Instructions to: Request to Permanently Transfer Equipment with Researcher
Related Policies and Procedures
Urbana Supplement - Section 16.1.4, Equipment, Equipment Leases, and Expendable Supplies
Loan Equipment to Another Institution
Remove Data from Electronic Devices
Other Permanent Equipment Transfer Situations
Additional Resources
Fixed Assets 104: Equipment Loans and Other Transfers
FABweb Transfers and Disposals Participant Guide
Other Permanent Equipment Transfer Situations
Policy Statement
Equipment may be eligible for permanent transfer to another institution even if a researcher is not accompanying it. This type of request must be approved by University Property Accounting and Reporting (UPAR) and the Department of Central Management Services (CMS) at the State. In addition, an Agreement for Permanent Transfer of Equipment must be completed and signed by the Recipient Institution and the Comptroller at the University of Illinois.
Do not move any equipment until all these steps and approvals have been completed.
Procedure
To transfer equipment to another institution:
- Consult Banner Fixed Assets to confirm that your unit is on record as the responsible organization for the equipment to be transferred and that it is titled to the state of Illinois.
- Contact UPAR to discuss the permanent transfer. UPAR will assess and determine if the transfer situation and equipment are eligible and appropriate to warrant a CMS exemption request letter. Once determined to be a viable state exemption request, UPAR will work with the unit to write an exemption request letter to CMS. CMS takes up to 30 days to approve or deny the request.
- If CMS approves, UPAR will inform the unit and instruct them to complete an Agreement for Permanent Transfer of Equipment.
- The unit completes the Property Accounting Contract Approval Routing Form along with the Agreement, obtains the Recipient Institution signature and forwards it to UPAR.
- UPAR will apply the Comptroller signature and then send the Agreement to the unit letting them know they can transfer the equipment.
- UPAR will process a disposal for the transferred equipment.
Forms Used in this Procedure
Agreement for Permanent Transfer of Equipment
Related Policies and Procedures
Permanently Transfer Equipment with Researcher
Remove Data from Electronic Devices
Additional Resources
FABweb Transfers and Disposals Participant Guide
Dispose of Unneeded Equipment
Policy Statement
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 in a timely manner, in compliance with Sec 5010.400 of the IL Administrative Code. Units are responsible for paying any costs associated with the disposal of equipment.
Procedure
To dispose of unneeded equipment:
- If the equipment is owned by a project sponsor, obtain approval for disposal from the Sponsored Programs Administration (UIUC), Research and Sponsored Programs – Post-Award (UIS) or the Grants and Contracts (UIC) 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 university procedures for their removal.
- Examine the item to assess its condition. Decide whether it should be classified as scrap or surplus.
- Urbana and Chicago - Complete a surplus/disposal transaction in FABweb, then follow steps 8-11.
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). When you receive email from UPAR approving the disposal, forward the approval to your university facilities office so they can remove the equipment from your unit.
- 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 university 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 arrange for its shipment directly to the warehouse.
- Chicago - Submit a service request to the Facilities Management Service Desk to transfer the equipment to your university surplus warehouse.
- Springfield - Building Services receives the approved disposal request form from UPAR and will initiate transportation of your equipment.
- Off-university locations - Take the equipment to the closest university 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 may be eligible for exemption from State property disposal rules. Contact UPAR for more information. Also refer to the Permanently Transfer Equipment with Researcher policy and the Other Permanent Equipment Transfer Situations policy.
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
Remove Data from Electronic Devices
Permanently Transfer Equipment with Researcher
Other Permanent Equipment Transfer Situations
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 5010.610 - Disposal of Transferrable Equipment
Section 5010.260 - Cannibalization
University 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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