Equipment Disposal

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 functioning but no longer needed (surplus), a FABweb Surplus/Disposal request should be submitted by the unit. The disposal process involves the following:

• The Unit Representative prepares the scrap/surplus request in FABweb.
• The Unit Approver reviews and submits the request to Property Accounting in FABweb.
• Property Accounting will review and approve the request and send their 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 the Business and Finance Policies and Procedures Manual, 12.4.3 Dispose of Unneeded Equipment.

For more information on disposals, see the OBFS Policies and Procedures Manual, 12 Property Accounting or if you have questions, contact University Property Accounting Reporting (UPAR) at obfsuafrproperty@uillinois.edu.

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.

In addition to the general scrap/surplus procedure, each university within the U of I System has their own disposal process and information. Check university-specific procedures before initiating a disposal.

Federally Titled and Other Titled equipment cannot be disposed of without approval from the appropriate Sponsored Programs office before submission. Check for university-specific disposal procedures before proceeding.

Other Disposal Situations

Other disposal situations that must be reported using the FABweb Surplus/Disposal request form include:

• Artwork and Antiques
  Special rules apply to the disposal of antiques and art, please reach out to UPAR for details.
• Casualty Loss (Fire/Flood Damage)
  If equipment is destroyed or irreparably damaged through fire, flood, or accident, it is considered a casualty loss.
• Disposed without UPAR Approval
  Item has already been scrapped by the department, without going through the proper disposal process with UPAR approval, and a responsible individual within the department has personal knowledge of its unauthorized disposal and can attest to the nature of the disposition.
• Firearms
  A department should trade in firearms that are no longer needed for other firearms, given that the vendor provides adequate documentation of old weapon(s).
• Hazardous Materials
  Disposal of hazardous materials is university specific. Please follow all applicable procedures for your university.
• Inventoried in Error
  Any item that was added to inventory, but does not qualify as equipment, for which a Journal Voucher (JV) has been prepared to correct the Account code. Please provide the JV # in the Comments/Notes field.
• Returned for Credit
  Item has been returned to vendor.
• State Surplus
  Equipment that is shipped directly to CMS. Prior UPAR approval is required.
• Stolen
  Units must immediately report stolen equipment to the police and provide them with a complete description of the equipment, including the property control (PTag) number and the manufacturer's serial number. The sponsoring agency may require restitution for unlocatable or damaged equipment acquired with grant and contract funds.
• Trade-In
  Any item that was traded-in on the acquisition of equipment. The Purchase Order number and the Permanent Tag (PTag) of the newly acquired equipment must be provided in the comments section. In addition, you must add the old equipment’s PTag number to the new equipment’s asset record, in the External Cross Ref field.
• Transfer Out
  Equipment that is sent to other agencies. Prior UPAR approval and documentation are required, see “Special Exemption Requests” below.
• Transfer with Researcher
  Prior UPAR approval and documentation are required, see “Special Exemption Requests” below.

Stolen Equipment

Department heads are responsible for determining if restitution is appropriate from an individual stolen equipment. Equipment Loan forms are required when individuals borrow or take custody of equipment outside of U of I System premises.

Individuals may also be asked to reimburse the System if:

• Equipment was misplaced or damaged because of neglect while in their care, or
• U of I System property was used without being granted explicit or implicit departmental knowledge or authorization.

Presumed Disposal Situations

Presumed disposal situations must be reported using the FAbweb Surplus/Disposal request for inventory equipment items that cannot be located after a thorough search during biennial inventory. These include the following:

• Presume scrap without authorization (Biennial Inventory)
  If an item of equipment cannot be found after a thorough search, such as during biennial inventory, it is considered unlocatable. Unlocatable equipment must be resolved.
• Presumed other disposal
  To be used after a thorough search when the likely disposition was a casualty loss, inventoried in error, returned for credit, state surplus, stolen, trade-in, transferred out, transferred w/researcher, or unique case.

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:

• UIUC: Security Compliance, Electronic Data, Disk, SSD, or Other Storage Device Disposal
• UIC: Hard Drive Policy
• UIS: UIS IT Policies, Procedures & Guidelines

For additional information on data elimination, see the Business and Financial Policies and Procedures Manual, 12.4.5 Remove Data from Electronic Devices.