Sponsored Program Equipment
Equipment purchased or built with sponsored program funds may be subject to several Federal regulations or sponsor terms and conditions. To properly manage sponsor funded or furnished equipment the unit, the institution’s Sponsored Program Office and University Property Accounting and Reporting (UPAR) work in collaboration to ensure compliance. Below is an overview of important topics to understand and consider:
Vesting of Title
It is important to identify the ultimate holder of the equipment/property. In most cases sponsors will vest title of acquired equipment to the University. Due to the University being identified as a component of the State of Illinois, the title will vest to the State of Illinois. Oftentimes, equipment purchased on Federal contracts, the government will retain title. When identified, the unit should contact your institution’s Sponsored Program Office to obtain a Federal Government tag. In instances where a private sponsor retains title, obtain a sponsor provided inventory tag from your Sponsored Program Office.
Banner Fixed Asset Record
When title does not vest to the State, the unit will need to notify UPAR of these situations so the inventory records can be appropriately updated to reflect correct title information.
Identity of equipment
Equipment that is titled to a sponsor or Federal Government may not become a fixture or lose its identity or personality by incorporation into or attachment to property not owned by the same sponsor or university titled equipment/property.
Periodic verification
Per Uniform Guidance, all Federal acquired equipment, whether government title or titled to the State of IL, is subject to physical inspection. Equipment that is held under agreements with sponsoring agencies or is on loan from outside agencies is included in the monthly and annual reports received by units and is verified under the same procedures as is State-owned equipment. Biennial Inventory serves as the University’s internal control for compliance with the above regulation.
Records of sponsor furnished or loaned equipment
Property records for movable equipment furnished or loaned to the system for use on a research project or for other purposes should be kept in Banner Fixed Asset. The records identify the equipment as non-State titled property. Work with UPAR to create a property record.
Transfer of equipment from the U of I System
Equipment purchased from sponsored project funds may be transferred to another institution of higher education under certain circumstances. See Business and Finance Policies and Procedures.
Loans of Sponsored Project Equipment
Under certain circumstances, equipment acquired with sponsored project funds may be loaned to other institutions of higher education for continuation of the sponsored research. Contact UPAR to initiate this process. See Business and Finance Policies for more information.
Transfer or Loans of equipment to the U of I System
All movable equipment held under agreements with sponsoring agencies remains the property of the sponsoring agency until the equipment is transferred to the system under one of the following conditions:
- As part of the sponsor's agreement.
- At the request of the system via a disposition request and the written approval of the sponsor.