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Business and Financial Policies and Procedures

Identify a Non-Monetary Exchange

Policy Statement

A non-monetary exchange occurs when the University of Illinois System receives something of value from an external entity in exchange for providing something else, rather than paying for it with cash or a cash equivalent, such as a check or credit card. These exchanges can involve goods, services, equipment, real property, etc.

Units must ensure that all their financial transactions are recorded in Banner, including those where no cash is exchanged. These non-monetary exchange transactions must be reported on a Report of Non-Monetary Exchange Transactions form so they can be included in the system's financial statements. Do not report the trade-in of equipment as a non-monetary exchange. Consult "Document Trade-ins on Purchasing Documents" in Avoiding Property Accounting Problems

The values of the items being exchanged are not required to be equal. Non-monetary exchanges may occur independently, or as a part of other types of transactions, including those involving cash, such as:

  • Sponsorship agreements
  • Gifts-in-kind (tangible items such as computers, equipment, artwork, land, etc.)
  • Reduction in revenue or cost transactions, including:
  • Reduced fees charged by the system for goods/services it provides 
  • Reduced revenue in a revenue-generating contract
  • Reduced cost of goods/services purchased


To identify a non-monetary exchange:

  1. Follow the flowchart below:

Non-monetary Exchange Flowchart

Forms Used in this Procedure

Non-Monetary Exchange Transactions

Related Policies and Procedures

11.3 Campus Processing of Gifts
11.13 Sponsorship Gifts
Report a Non-Monetary Exchange

Additional Resources

Avoiding Property Accounting Problems
Non-Monetary Exchange FAQs
Methods of Valuing of Non-Monetary Exchanges

Last Updated: June 2, 2014 | Approved: Senior Associate Vice President for Business and Finance | Effective: November 2009

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