12.4.7 Dispose of Equipment with a Nominal Value

Policy Statement

The University of Illinois System has the right to request removal of equipment from inventory with a nominal value per Sec 5010.311 of the IL Administrative Code and the Illinois State Property Control Act (30 ILCS 605).

Reason for the Policy

Non-capitalized equipment added to the University of Illinois System tracked inventory maybe requested to be removed when the item’s nominal value clearly falls below $2,500 and is four or more years old. University Property Accounting and Reporting will serve as the system centralized administrator for all requests to CMS.

Applicability of the Policy

All non-capitalized tracked University of Illinois System equipment is subject to review and request for removal. Capitalized equipment on active inventory must remain on active Banner records for support of the annual university financial statements and for compliance to federal grantor requirements.

Procedure

Nominal value means the depreciated value of the equipment is less than $2,500. The system must first obtain approval from the Department of Central Management Services (CMS) to remove items from inventory. University Accounting and Financial Reporting (UAFR) and University Property Accounting and Reporting (UPAR) will assist in determining the depreciated value of non-capitalized equipment records and will obtain CMS pre-approval.

At the direction of the University Controller, an initial disposal of equipment records was completed in February 2021 with the need for subsequent disposal requests to be evaluated on a biannual basis in order to coordinate record disposal with future Biennial Inventory for retagging.

1. UPAR will review all non-capitalized equipment records to determine which items have depreciated below $2,500.
2. UPAR will obtain CMS pre-approval.
3. UPAR will send the lists of the items to be removed to each unit for review and feedback.
4. UPAR and AITS will process the disposals for all equipment determined to have a depreciated value of below $2,500.