12.4.3 Dispose of Unneeded Equipment
Policy Statement
Units must dispose of unneeded equipment in a timely manner, in compliance with the Illinois Administrative Code (Ill. Admin. Code tit. 44, § 5010.400 (2019)). Units are responsible for paying any costs associated with the disposal of equipment.
Retaining or hoarding unneeded equipment limits its potential re-use by other the system units or state agencies and is a violation of Illinois Administrative Code (Ill. Admin. Code tit. 44, § 5010.610 (2019)).
Reason for the Policy
Unneeded equipment must be disposed of in compliance with law and system policy.
No one is permitted to remove from the buildings and grounds any property belonging to the University of Illinois System, 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.
Computerized items containing digital storage media require ensuring all data is unrecoverable. Please be aware of specific university requirements per 12.4.5 Render Data Unrecoverable on Electronic Devices Prior to Transfer or Disposal.
Applicability of the Policy
All unneeded equipment belonging to the University of Illinois System, regardless of value.
Procedure
To dispose of unneeded equipment:
- If the equipment is owned by a project sponsor, obtain approval for disposal from the relevant university sponsored programs office.
- Consult Banner Fixed Assets to confirm that the 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. The unit is responsible for all equipment until custody has been transferred.
- Identify all hazardous materials and follow 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). UIS units do not need to complete a surplus/disposal request in FABweb. ITS will complete the remaining steps for these electronic items. For all other equipment, complete a surplus/disposal transaction in FABweb, then follow steps 9–11. - If the unit is disposing of a digital media device:
- Do not remove the hard drive or other components. If the scrub label is missing, the unit may be charged for the cost of eliminating the data or the equipment may be returned to the unit for scrubbing, at the unit’s expense. For detailed procedures on data elimination, see 12.4.5 Render Data Unrecoverable on Electronic Devices Prior to Transfer or Disposal.
- Important: Unit representatives submitting a disposal are attesting that the proper data elimination policies and procedures were followed and a scrub label is attached to all required digital media equipment.
- All data on digital media must be rendered unrecoverable before such device is transferred to Surplus Warehouse Operations.
- Ensure the unit IT support has rendered the data unrecoverable and completed and affixed the scrub label to the equipment or hard drive.
- Use FABweb to forward the surplus/disposal transaction to the unit approver, who will approve and forward it to University Property Accounting and Reporting (UPAR). Once UPAR has emailed the unit approving the disposal, the unit then must forward the approval to its university facilities office so that office can remove the equipment from the 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.
- After all items are shipped to the warehouse and units receive the final report on disposal details through FABweb email notification, 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 through FABweb email notification. Be aware that all deliveries to the surplus warehouses are by appointment only. Equipment items cannot be left outside the surplus warehouse and Units must retain physical custody of equipment until receipt at the warehouse or pickup by movers. (System units should follow the rules of the university where their physical offices are located):
- Chicago—Submit a service request to the Facilities Management Service Desk to transfer the equipment to UIC’s surplus warehouse.
- Springfield—Units must forward their approved FABweb disposal request notification to UIS Facilities and Services by emailing Surplus@uis.edu to initiate transportation of the equipment.
- Urbana—Units must contact the Urbana Surplus Warehouse at 217-333-6011 or email uiucsurplus@uillinois.edu to schedule an appointment for delivery or arrange for shipment directly to the warehouse by movers.
- Off-university locations—Follow the procedures for scheduling and delivery to the closest university surplus warehouse.
Other Disposals
Trade-ins
Equipment can be traded in if the 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 the unit’s 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.). See 12.1.3 Equipment Trade-Ins and Limitations
Permanent Transfers to Other Institutions
With appropriate system approvals and in compliance with the Illinois Department of Central Management Services (CMS), equipment may be eligible for exemption from state property disposal rules. Contact UPAR for more information. See also 12.3.4 Permanently Transfer Equipment with Researcher and 12.3.5 Other Permanent Equipment Transfer Situations.
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 the 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 system. 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 system 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 system 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), units must complete a surplus/disposal transaction in FABweb. If UPAR approves the transaction, units may remove the usable parts and scrap the remainder. If any surviving part(s) must be inventoried as an asset, units must report it through FABweb as a non-cash addition.
Art Collections and Historical Treasures
Items that are part of a collection (not individually inventoried with a PTAG) may not be disposed of without prior email approval from Property Accounting. (Search “Treasures” on BusFin “Who To Ask” Page for contact info)
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.
Policy Information
First Published
June 2011
Last Updated
March 2025
Last Reviewed
March 2025