Equipment Disposal Methods
University equipment is State property regardless of cost or condition. Scrap and surplus equipment must go to a campus redistribution warehouse. It cannot be disposed of by any other method, such as throwing in the garbage/dumpster, selling or giving away.
If equipment is broken (scrap) or no longer needed (surplus), a FABweb Surplus/Disposal request should be submitted by the unit. The disposal process involves the following:
- Unit representative prepares the scrap/surplus request in FABweb.
- Unit approver reviews and submits the request to Property Accounting in FABweb
- Property Accounting will review and approve and send approval via email to the Unit Representative or will decline the request in FABweb if there are issues with the request.
- Each campus warehouse has a different equipment delivery procedure. See Section 12, Property Accounting, Dispose of Unneeded Equipment Policy and Procedure for each campus.
A unit requesting to dispose of unneeded or unwanted equipment must be aware of their responsibilities and must ensure that equipment is disposed in a timely manner according to policy and is not sold, used for private purposes or private gain. See FA103 FABweb Transfers & Disposals Lesson 2.1.
For more information on disposals, see the Business and Financial Policies and Procedures manual Section 12, Property Accounting or if you have questions, contact University Property Accounting Reporting (UPAR) at firstname.lastname@example.org.
Scrap & Surplus Equipment
Scrap - Broken, not usable
Surplus - Fair Condition, usable
Equipment Disposal Procedures
All Banner (Inventoried) and non-Banner (Non-inventoried) equipment, regardless of cost or condition must be recorded using the FABweb Surplus/Disposal request. See FA103 FABweb Transfers & Disposals.
In addition to the general scrap/surplus procedure, each University of Illinois campus has disposal processes and information that are specific to that campus. Check Campus-Specific Disposal procedures in FA103 FABweb Transfers & Disposals Lesson 2.3 by selecting the appropriate link.
Federally Titled equipment cannot be disposed without approval of the campus OBFS Grants and Contracts office prior to submission for disposal. See Section 16.1.4 Equipment, Equipment Leases, and Expendable Supplies.
Other Disposal Situations
Other disposal situations that must be reported using the FAbweb Surplus/Disposal request form include:
- Returned for Credit
- Casualty Loss (Fire/Flood Damage)
- Inventoried in Error
- Transfer Out
- State Surplus
- Transfer with Researcher
- Artwork and Antiques
- Disposed without UPAR approval
- Presume scrap without authorization (Biennial Inventory)
- Other Unique Cases
Special Exemption Requests
If a department believes that it has a justifiable reason to dispose of equipment in a way which does not conform to State and University guidelines (such as donating equipment or selling it and retaining the proceeds), approval must be obtained from Central Management Services (CMS) before disposal. The department should prepare a written justification explaining why they should receive an exemption from the State Property Control Act and submit that to UPAR. UPAR uses the department justification to draft and send a formal exemption request to CMS. CMS has 30 days to approve or deny the request. For information or to pursue a special exemption request from CMS, contact Marti Conrad at the following:
OBFS - University Property Accounting and Reporting, MC 597
111 E. Green St.
Champaign, IL 61820
Data Elimination from Computers
The Data Security on State Computers Act mandates the elimination of data from computer storage devices prior to disposal. Data elimination requirements may also apply when transferring equipment to another institution. See the following University policies and guidelines for compliance:
Individuals responsible for equipment management should complete FA103 FABweb Transfers and Disposals. See Accounting & Financial Reporting Training Materials section for information on other courses offered, find job aids, and other training materials.
Last Updated: June 30, 2015