12.3.2 Process an "Internal Sale" of Equipment to Another Unit

Policy Statement

When equipment is transferred between University of Illinois System units, and a unit has used departmental funds they wish to recuperate, an agreement can be made for the receiving unit to provide a cost recovery to the originating unit for their departmental funds used to procure the equipment. This cost recovery, or "Internal sale", transaction is usually accomplished by a budget transfer or journal voucher from the receiving unit to the originating unit. Only certain types of budget or funding transfers are allowed. For questions about allowable funding transfers, see Process a Transfer with Compensation.

Reason for the Policy

To maximize utilization of University of Illinois System asset resources, units are allowed to transfer equipment between units with mutual agreement. Oftentimes, equipment is provided with no cost. But, when units wish to recuperate departmental funds expended on transferring equipment, units may require a budget or fund transfer from the receiving unit to recuperate their prior departmental fund expenditures.

Applicability of the Policy

All University of Illinois System equipment is subject to the limitations and requirements of this policy. Transfers from sponsored program funds to other system or university funds is prohibited

Procedure

To process an "internal sale" of equipment to another unit:

1. Complete an interdepartmental transfer transaction in FABweb.
2. Eliminate data from electronic storage media unless required for sponsored research.
3. Determine the source of the money (funding source) that was used to purchase the equipment.
4. Process a budget transfer or journal voucher, depending on the funding source.