blog posts UAFR Weekly Tips May 5, 2021 9:30 amAccounting and BudgetingHave you ever wondered if you can use University of Illinois System funds to purchase a piece of equipment (such as an iPad or laptop computer) to give away to an individual (such as a student, faculty, or staff member) as a prize or award? Per Section 12.2.2 of the Business and Financial Policies and Procedures, it is not allowable to give away equipment which was purchased with U of I System funding to an individual as a prize or award. Also, under the Illinois State Property Control Act (30 ILCS 605), all University of Illinois System property (regardless of funding source) is considered state-owned and is subject to the regulations of the Department of Central Management Services.Instead of giving away equipment purchased with U of I System funding, units can instead issue a taxable prize or award to the individual in the dollar amount that they wish to award. Issuing prizes and awards does not violate property control rules and regulations, and it ensures proper tax reporting to the recipient and IRS. Recipients can then use their taxable prize or award money to purchase their own equipment!ContactFor questions regarding proper equipment management, refer to UAFR’s Equipment Management webpage or contact Magdalena Jach at 312-585-9171 or firstname.lastname@example.org.For questions regarding proper accounting and C-FOAP guidelines to follow when issuing prizes or awards, refer to the Account Codes and Program Codes section of UAFR’s Who to Ask list.