All property at the University of Illinois System, regardless of funding source, to which the U of I System acquires title, is subject to the regulations of the Illinois Department of Central Management Services as "state-owned property."
IGB Property Accounting and Reporting (IGB-PAR) works with University Property Accounting and Reporting (UPAR) to ensure compliance with U of I System procedures and the State Property Control Act. All employees are responsible for the prudent use, care, and safeguarding of system property, regardless of its value.
The University of Illinois System adds equipment to inventory that, in general, has a useful life of more than one year and a unit value equal to or greater than $2,500.
Equipment Overview
An item is considered equipment if it meets all the following criteria:
- It is tangible property that lasts more than one year.
- It costs more than $100.
- It keeps its own identity, meaning it is not absorbed into another piece of equipment.
- It is movable; it cannot be permanently fixed or attached to a building.
Inventory Equipment Account Codes
When purchasing equipment, it is critical that you use the correct equipment account code. Not only do account codes categorize equipment by cost and type, but equipment account codes generate a reference number used in Banner and FABWeb that is attached to the purchase until a Ptag can be assigned by the Unit Rep.
To correctly code equipment, include the installation costs, freight, transit insurance, initial inspection, and testing costs. These costs must be account-coded to an equipment account code 127* or 163* on the purchase.
Do not include finance charges or the maintenance contract in the cost valuation of the equipment, as these items should be individually expensed costs and account-coded separately from the equipment account code.
| Account Code | Range | |
| 127* | $2,500 - $4,999.99 | Inventoried but not capitalized equipment |
| 163* | $5,000 and greater | Inventoried capitalized equipment depreciated over its useful life |
When an incorrect account code is assigned to an item, it can affect the reconciling of your unit's monthly operating ledger, as well as your biennial inventory. Contact IGB- Property Accounting IGB-PAR@illinois.edu if you have questions about equipment account codes when placing the order.
Equipment Account Codes Quick Reference
P-Tag (Permanent Tag/Physical Label)
For identification and control purposes, all equipment under the jurisdiction of the University of Illinois System with a cost of $2500.00 or more must be assigned a property control (P-Tag) number that must be affixed to the equipment.
Be prepared to give the following information when asked by the unit rep to acquire a P-tag:
- Serial Number
- Model
- Manufacturer
- Location
- Custodian name and UIN
- Equipment Manager name and UIN
- Brief Description of item/what it is
- In Service Date
Red & White "State of Illinois, University of Illinois" Stickers
Equipment costing $100 to $2499.99 must have a red and white State of Illinois, University of Illinois sticker applied to it.
Fabricated Equipment
Fabricated equipment is generally defined as an item of equipment built or assembled from individual components by a researcher or research team, either internally or externally, for a specific research purpose, and that meets certain cost and useful life thresholds. Specifically, if the aggregate cost of the fabricated item is $5,000 or more and it has a useful life of at least one year, it is considered capital equipment.
Fabricated equipment is created by combining various components, rather than being a standard, off-the-shelf item.
It is typically designed and built to fulfill a particular research need or objective, rather than being a general-purpose piece of equipment.
Costs associated with fabrication can include materials, external services (like shipping and installation), and potentially some labor costs if directly related to the construction.
A fabricated equipment account code is assigned because there will be multiple purchases that typically span years as the apparatus is built. When the equipment is completed, the expenses will be rolled from the fabricated account to an equipment account code and processed to create a P-tag.
To receive a fabricated account code for your project, please complete the IGB-Notice of Fabricated Equipment Project.
IGB- Notice of Fabricated Equipment Project
Donated, Found, Gift, and Other Non-Cash Addition
All equipment $2,500 or more must be recorded in Banner, even if your unit did not purchase it. If the equipment is a gift, submit a Report of Gift Received Transmittal form to the University Foundation.
If the equipment has been permanently transferred from another institution, it will become the property of the University/State of Illinois unless the research sponsor has mandated otherwise. Even if the equipment title will not pass to the University of Illinois System, the equipment must still be added to Banner Fixed Assets.
Equipment Loan to Employees and Students
Units may loan equipment to faculty and staff or students to support the mission of the University of Illinois System. Faculty, staff, or students with loaned equipment, e.g., laptops/tablets, etc., are responsible for its safekeeping and must complete an Equipment Loan Form. The form will be kept on file with IGB facilities until the equipment is returned and you are cleared. Email form to IGB-PAR@illinois.edu.
Return/Replace of Loaned Equipment
Anytime the loaned equipment is returned or replaced, you will need to update the loan form submitted. Contact IGB-PAR@illinois.edu or Facilities@igb.illinois.edu before returning or replacing equipment for instructions.
Equipment Disposal
Scrap and surplus equipment cannot be disposed of by throwing it in the garbage/dumpster, selling, or giving it away. IGB must follow the disposal process.
If equipment is broken (scrap) or functioning but no longer needed (surplus), an IGB Surplus/Disposal request should be submitted. Trade-ins must be listed to be removed from your inventory; please note the trade-in equipment with pertinent information on the surplus/disposal form.
Equipment Surplus/Disposal – Lab Equipment
Decommissioning Scientific Equipment
All research laboratory equipment must be decontaminated if, at any point in its lifespan, it held a chemical, biological, or radioactive hazard before it can be moved to a new location or removed to Campus Scrap/Surplus. Once the equipment is decontaminated, please fill out the decommissioning form and attach it to the front of the equipment.
Scientific Equipment and Appliance Decommissioning Form
When the decontamination and documentation are completed, we can schedule to have the appropriate craft/trade relocate the equipment. Send the Decommissioning form and the Equipment Surplus/Disposal Form to IGB-PAR@illinois.edu.
Trade-In Equipment
12.1.3 Equipment Trade-ins and Limitations- update for ALL Fund Types
Equipment can be traded in if your unit is purchasing new, "like-kind" equipment. Document the trade-in on all purchasing documents. All equipment being traded must be reviewed and approved prior to any trade-in activity by the relevant university contract processing office and the University Property Accounting and Reporting Office (UPAR). Complete a surplus/disposal to remove the traded-in equipment from your 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.).
- Trade-ins are only allowed when the vendor you are purchasing the item from provides a trade-in allowance value on the new equipment being purchased, thereby reducing the cash spent to buy the new equipment. Make sure the trade-in allowance and values are explicitly listed and included on the purchase requisition and purchase order and stated by the vendor on the vendor invoice/quote.
- Include the following information about the trade-in equipment on the purchase documents (requisition, purchase order, invoice voucher, Chrome River).
- Property control (PTag) number
- Description
- Serial number of the equipment to be traded
- Estimated value of traded items
- Total trade-in allowance value in USD
NOTE: Submit the Equipment Surplus/Disposal spreadsheet to IGB-PAR@Illinois.edu and note that it is a trade-in to be removed from your inventory with the reference information.
Loan Equipment to Another Institution
12.3.6 Loan Equipment to Another Institution
Equipment acquired with restricted, sponsored project funds may be loaned to another institution for a limited period under the following circumstances:
- The research being performed at the recipient institution is under the direction of a principal investigator at the University of Illinois System.
- The equipment was purchased with sponsored project funds; and,
- The equipment is essential to the continuation of the sponsored project.
Equipment not purchased with grant or other sponsored project funds may also be loaned to another institution, regardless of whether a current Principal Investigator from the University of Illinois System is directing research.
BusFin Transfers and Loans
Do not loan or transfer any equipment until all the proper steps and approvals have been completed.
Equipment Changes of Location or Custodian
Equipment must be updated anytime a change is made to the equipment involving the location, custodian, or equipment manager. To change the equipment information, you must send an email to IGB-PAR@illinois.edu. Include the P-tag#, description, current location, custodian, equipment manager, and updated information. You will receive an acknowledgment email that the information has been updated.