Loans

Whether it's a computer being loaned to a staff member for a week, or lab equipment being loaned to another institution for two years, there are certain steps to follow in order to document the terms of the loan and the location of the borrowed equipment.

Loans to Other University Units

Departments are encouraged to share special usage equipment with other University departments whenever possible. When one department lends equipment to another department, they must document the terms of the loan arrangement.

One way to document the loan is to use the Shared Usage Agreement form (MS Word). Using this form is not required, but the loan must be documented by the two departments in some other way if it is not used.

If equipment is loaned to another University department for more than one academic term, the property contact of the loaning department must notify University Property Accounting and Reporting (UPAR) by sending e-mail to obfsuafrproperty@uillinois.edu. The following information should be included in the e-mail:

  • the name of the department borrowing the equipment
  • a description of the equipment
  • the property control (PTag) number of the equipment
  • the equipment's serial number
  • the date it was borrowed

If the borrowed equipment was also paid for with sponsored project funds (grants, contracts, gifts, or federal appropriations), the property contact of the loaning department should notify the OBFS grants office on their campus with the information above.

The property contact of the loaning department must update the associated Banner fixed asset record through FABweb to indicate the appropriate Location Code.

For more information on loaning equipment to another University department, see Section 12 Property Accounting of the Business and Financial Policies and Procedures manual in the Shared Usage of Equipment section.

Back to top

Loans to Other Institutions

Conditions for Loaning Equipment to Other Institutions

Equipment can be loaned to other institutions of higher education, such as another university, in order to facilitate research there. Equipment may be loaned to another institution for a limited period under the following circumstances:

  • A former Principal Investigator of the University is employed by the other institution and a sponsored project is transferred, continued, or renewed at the other institution
  • The equipment was purchased with sponsored project funds available to that Principal Investigator.
  • The equipment is essential to the continuation of the sponsored project
  • A written request, approved by the department head and college dean, is forwarded to UPAR

Procedures to Loan Equipment to Other Institutions

Two loan agreement forms are available for equipment loaned to another institution depending on which type of funds purchased the equipment:

Equipment Paid With Sponsored Project Funds

Sometimes equipment acquired with sponsored project funds (grants, contracts, gifts, or federal appropriations) may be loaned to other colleges or universities for continuation of the sponsored project research. The equipment usually accompanies a researcher on the sponsored project. When equipment is accompanying a researcher to another institution and has been paid at least partly with sponsored project funds, the loan must be documented using the Sponsored Equipment Loan Agreement (MS Word). Please see the process of documenting a loan of sponsored equipment to another institution (FA104 Web-based Training).

Agreement Renewal: Equipment can be loaned to another institution for a period of up to two years. The loan can be extended, however, at the end of two years, by following the same process to execute a new Sponsored Equipment Loan Agreement (MS Word).

For UIUC-specific information on specific loan requirements, see the Section 16.1.4, Equipment, Equipment Leases, and Expendable Supplies (UIUC Supplement) of the Business and Financial Policies and Procedures manual.

Equipment Paid With Non-Restricted Funds

Equipment that was purchased from funding sources other than sponsored projects may also be loaned to other colleges or universities.   When equipment is being loaned to another institution and was not purchased with sponsored project funds or gift funds, the loan must be documented using the Equipment Loan to Institutions of Higher Education form (MS Word). Please see process of documenting a loan of sponsored equipment to another institution (FA104 Web-based Training).

Agreement Renewal: Equipment can be loaned to another institution for a period of up to two years. The loan can be extended, however, at the end of two years, by following the same process to execute a new Equipment Loan to Institutions of Higher Education form (MS Word).

Back to top

Loans to Employees and Students

A piece of equipment may be loaned to a faculty member, staff member, or student for up to one year. To document this type of loan, the Equipment Loan to Employees and Students Agreement form (MS Word) must be filled out and signed by the appropriate personnel. Please see process outline (FA104 Web-based Training).

Temporary Sign-Out Sheets: In cases where units routinely lend equipment for very short periods (less than one week) to employees or students, they may substitute a locally devised sign-out sheet for the loan form. This sign-out sheet must clearly identify the borrower, the borrower's signature, the equipment description, the property control (PTag) number (or serial number if not recorded in Banner Fixed Asset), the date borrowed, and the date returned. Please see Temporary Sign-Out Sheets section (FA104 Web-based Training).

If the items are scheduled to be off campus for more than one academic term, the associated Banner Fixed Asset record must be updated, using FABweb, to reflect an off-campus location code, a condition code of "E" (Loaned to Faculty/Staff/Student), the custodian field must be updated with the UIN of the individual who holds custody of the item, and the actual location must be recorded using Banner Fixed Asset document text capabilities.

Back to top

Return of Loaned Equipment

When the loan period is over, the property contact of the loaning department is responsible for verifying that the equipment is returned to University premises in a punctual manner. The property contact should also notify UPAR that the equipment has been returned by sending a message to obfsuafrproperty@uillinois.edu. The e-mail should contain the following information:

  • a description of the equipment
  • the property control (PTag) number of the equipment
  • the equipment's serial number
  • the date it was returned
  • the name of the borrowing institution

In addition, the property contact should also update the Banner fixed asset record with the item's current status and location through FABweb, using steps outlined in FA104 Training (FA104 Web-based Training).

Back to top

Training

It is recommended that individuals working on equipment management complete the Web-Based Course FA104: Disposal and Redistribution Processes. See Accounting & Financial Reporting Training Materials section for information on other courses offered, find job aids, and other training materials.

Back to top

Last Updated: June 16, 2008