Purpose: To ensure that all payments are made in compliance with university policies and procedures, and to ensure that proper controls and safeguards are in place to protect the university’s assets.

Procedure:

Request for payment – In order for the Accounts Payable Department to process payment, the Accounts Payable Department must secure the proper authorization to process the payment. Accounts Payable cannot process a payment unless the purchase was made in accordance with university Purchasing Policy, and the goods or services have been satisfactorily received and this receipt has been communicated in writing to the Accounts Payable department.

All payment made to independent contractors or individuals must include a completed W9 (see W9/1099 policy ).

Payment requests may be made in two manners:

Purchase Orders:

Encumbered items –

1. Invoice sent by vendor directly to A/P – it is university policy that all invoices should be sent directly to Accounts Payable.

All purchases > $500.00 must be encumbered before the order is placed with the vendor (see Purchasing). Once an item has been received the “receiving” department must indicate on the pink copy of the purchase order that the goods or services have been satisfactorily received and payment is required. The department must send the pink copy to Accounts Payable in MB201.

Accounts Payable will then match the pink receiver, and the invoice from the vendor (orders that total less than $1,000.00 do not require a pink copy sent to A/P). If the invoice and the pink receiver match, Accounts Payable will process payment in accordance with the university payment terms . If the items do not match, Accounts Payable will notify the department of the discrepancy and the ordering department is responsible for resolving the discrepancy. If the ordering/receiving department requests a partial payment, Accounts Payable will make a partial payment.

2. Invoice sent to Accounts Payable and no receiver received from department:

In order to expedite the payment process, Accounts Payable will send a copy of the invoice along with a Release for Payment form to the ordering department. If payment is requested (items delivered in compliance with order) the department must complete the form, including a signature, and return it, along with the invoice, to Accounts Payable in MB201.

Unencumbered Items –

CDV (Cash Disbursement Voucher)-

Purchasing policies allow for payments under $500.00 to be processed on a Cash Disbursement Voucher (CDV). The CDV must be completed, and the proper support documentation (see Support Documentation) must be attached before Accounts Payable is authorized to process payment.

Process:

1. Complete a CDV (it is important that the CDV include the signature of the account’s authorized signer, and the signer’s “printed” name and telephone number.

2. Attached the original receipt (see Support Documentation).

3. Send the CDV with support documentation to the Controller’s Office; MB201.

PETTY CASH –

University policy allows for reimbursement to university personnel for the payment of incidental expenditures such as parking, postage, tolls, mileage, etc.

This is not a method or procedure to bypass the university’s Accounts Payable and Purchasing systems.

Restrictions: Petty Cash reimbursement cannot be used for:

1. items exceeding $150.00,

2. payment for personal services that would be considered wages,

3. travel reimbursements, except for local travel,

4. non-allowable expenses,

5. advances.

Process:

1. Complete a “Petty Cash Authorization” form (obtained from Controller’s Office MB201). A completed form must include:

a. Valid account number,

b. The account number must have sufficient budget available,

c. Signature of the authorized signer of the account,

d. The amount of the reimbursement,

e. The date,

f. ORIGINAL copy of the receipt (see policy on Support Documentation ). Any form without a receipt will not be accepted.

2. Main Campus:

a. Prior approval from the Controller’s Office must be secured before reimbursement will be made.

b. After approval by the Controller’s Office take the completed form to the Cashier’s Office in Main Building 104.

3. Downtown Campus:

a. Take completed form to the Cashier’s Office in Room 290.

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POLICY 1101.1 Accounts Payable; Processing Payments; Partial Payments

Responsible Office: Controller’s Office

Date Issued: 6/01/01

Date Revised:

Contact: Donna Taylor, Manager of Accounts Payable & Fixed Assets MB 201; 312.567.3339

Policy: Accounts Payable may issue partial payments for encumbered orders.

Purpose: To ensure that payment is made timely and made only for the goods/services received.

Process:

1. Partial Payment - When goods or services are partially received and payment is required for the partial delivery: IMPORTANT-FORMS NOT FILLED IN COMPLETELY WILL BE RETURNED

Complete the Partial Shipment Payment Form , a completed form must include:

i. Vendor name,

ii. Purchase Order number,

iii. Department,

iv. FRS account number,

v. Amount to be paid,

vi. Items paid,

vii. Date received,

viii. Signature,

ix. Department contact information such as telephone number, email address.

2. Send form along with any support documentation (invoice, contractor request, etc.) to Accounts Payable MB201.

3. Final Payment – when final payment is requested on a Purchase Order that has been partially paid, the following steps must be taken:

Complete the pink receiving copy of the Purchase Order, including a signature verifying receipt of the goods or services,
Forward the pink receiving copy to Accounts Payable MB201.

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POLICY 1101.2 Accounts Payable; Processing Payments; Terms of Payment

Responsible Office: Controller’s Office

Date Issued: 6/01/01

Date Revised:

Contact: Donna Taylor, Manager of Accounts Payable & Fixed Assets MB 201; 312.567.3339

Policy: The Accounts Payable Department will process payments in accordance with the invoice terms. In general the university will process all payments net 30 days after the date of invoice, unless negotiated terms supercede this policy.

Payment for amounts greater than $500.00 that have not been encumbered will be made 90 days after Accounts Payable is notified and authorized to process payment.

Purpose: To ensure payment in compliance with university policies and procedures, and that payments are timely and all allowable discounts are received.
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POLICY 1101.3 Accounts Payable; Processing Payments; Transmitting Payment

Responsible Office: Controller’s Office

Date Issued: 6/01/01

Date Revised:

Contact: Donna Taylor, Manager of Accounts Payable & Fixed Assets MB 201; 312.567.3339

Policy: All payment requests must include a valid mailing address. All Accounts Payable checks will be mailed to the payee. After payment is processed and checks are printed, all checks are delivered to the Bursar’s Office (MB 207) and mailed out of the Bursar’s Office.

Purpose: To ensure that payments are sent timely and that controls are in place to ensure proper delivery.

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POLICY 1101.3 Accounts Payable; Processing Payments; IDR’s

Responsible Office: Controller’s Office

Date Issued: 06/01/01

Date Revised: 06/01/01

Contact: Donna Taylor, Manager of Accounts Payable & Fixed Assets; MB201 312.567.3339

Policy: IDR’s (interdepartmental requisitions) will be processed by the Controller’s Office upon receipt.

Purpose: To transfer expenses between university departments/units.

Ordering Forms - IDR’s can be ordered from the Controller’s Office; 312.567.3331

When to use an IDR – When requesting goods/services from other university offices such as Office Services, Facilities, Food Services an IDR is used to transfer the cost of the goods/service from the department providing the goods/service to the department receiving the goods/service.

Process:

1. Complete the IDR. The following information is essential and must be included before an IDR will be entered.

To: (This is the name of the department that is being paid)

From: ( This is the name of the department making payment)

Charge Account: (This is the account to charge)

Description: (Describe what is being paid for)

Amount: (The amount to transfer)

Credit Account: (This is the account that is receiving payment)

Signature: (IMPORTANT – This can only be the person responsible for signature authority on the Charge account)

Extension: (This is the telephone extension of the Signature)

Date: (This is the date the IDR was authorized)

2. Forward completed IDR to the Controller’s Office, MB 201. In order to ensure that the IDR is recorded, it is suggested that the department providing the goods or services assume responsibility for completing and delivering the form.

3. If IDR complete - Controller’s Office will enter IDR into the FRS.

If IDR incomplete – Controller’s Office will return the IDR to requesting Department.

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POLICY 1102 Accounts Payable; Record Retention

Responsible Office: Controller’s Office

Date Issued: 06/01/01

Date Revised:

Contact: Donna Taylor, Manager of Accounts Payable & Fixed Assets MB 201; 312.567.3339

Policy: To provide an organized system of record retention and recovery for Controller’s Office documentation..

Purpose: To ensure that records are retained in compliance with government, banking, and IRS regulations, and university policy.

Records will be kept according to the following schedule:

Time Sheets	7 years
Payroll Authorizations	7 years
Payroll Labor Distributions	15 years
W-2’s	7 years
Benefit Documentation	7 years
Cigna Health Plan Reports	7 years
Cancelled Checks	10 years
Bank Reconciliations	7 years
Sales Tax Documentation	7 years
Contribution Documentation	7 years
Accounts Payable Backup	7 years
Student Records	Forever
FRS REPORTS:
AMO 19	1 year
Ledger Sheet (AMO 90/91)	7 years
Bursar Daily Work	7 years
IDR’s	1 year
Journal Entries	5 years
FBD 017	1 year
FBD 018	1 year
EBC 425	3 years
FBM 070	Forever (year end copy only)
FBM 094	Forever (year end copy only)
FBM 061	Forever (year end copy only)
BBD 100	5 years
Trial Balance	5 years
Aged Receivables	5 years
Sub Code Select	3 years
Daily Reports	Until audit complete
Project Accounting Files	7 years

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POLICY 1103 Accounts Payable; Stop Payments

Responsible Office: Controller’s Office

Date Issued: 04/28/00

Date Revised: 06/01/01

Contact: Donna Taylor, Manager of Accounts Payable & Fixed Assets MB 201; 312.567.3339

Policy: Accounts Payable will process a stop payment on an accounts payable check issued and transmitted upon request by a university department, or upon its own initiative, if the payment was made or transmitted in error, or payment is no longer justified. There is a 30 day wait period for stop payments (exceptions detailed below), therefore, delays in postal services is not a valid reason to request a stop payment.

Purpose: To ensure that improper or unjustified payments are not made after a check has been processed. A stop payment is not used to expedite the payment to a payee.

Process:

1. Only those individuals designated as an authorized signer may request a stop payment.

2. Obtain the following information (available on screen 23 in FRS):

Check payee,
Check amount,
Check date.

3. Call the Accounts Payable department at 312.567.3339 and communicate the above information.

4. Accounts Payable will wait 30 days after the original check is issued before placing a stop payment, except for the following situations:

Theft
Forgery
Error in amount, payee, address or other information on the check,
Payment was made but goods or services should not have been paid for due to non-conforming goods/services, or non-delivery.

5. Fees for processing a stop payment may be charged to department requesting stop payment, at the discretion of the Accounts Payable department.

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POLICY 1104 Accounts Payable; Canceled Checks

Responsible Office: Controller’s Office

Date Issued: 11/15/99

Date Revised: 06/01/01

Contact: Donna Taylor, Manager of Accounts Payable & Fixed Assets MB 201; 312.567.3339

Policy: Canceled checks will be archived by Accounts Payable in accordance with the Record Retention policy.

1. Beginning in FY98 the university no longer receives paper copies of canceled checks.

2. All checks are stored on Compact Disk (CD) and retrieved through software shared by the Controller’s Office and its bank.

3. Timing – canceled checks can be accessed beginning two weeks after the end of the month the check was written, or longer if CD is not received from the bank.

4. If there is an emergency situation, as determined by the Accounts Payable Manager, a request can be made to telephone the bank to determine the status of a check. However, bank fees will be charged to the requesting department.

Purpose: To ensure that records are maintained in compliance with university, and governmental policies and rules, in an organized and secure manner. And to verify that payments have been made to vendors and cleared through the bank.

Process:

1. Obtain the following information: (screens 23 and 118)

a. Check payee,

b. Check amount,

c. Check date,

d. Check number.

2. Call Accounts Payable at 312.567.3339, or email taylord@iit.edu

3. Communicate the request and reasons for the request,

4. Accounts Payable will retrieve the information and communicate the finding via email of telephone call.

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POLICY 1105 Accounts Payable; Support Documentation

Responsible Office: Controller’s Office

Date Issued: 06/01/01

Date Revised:

Contact: Donna Taylor, Manager of Accounts Payable & Fixed Assets MB 201; 312.567.3339

Policy: All disbursements must be supported by proper original documentation.

Purpose: In order to ensure that proper controls are in place to protect the university’s assets, ensure compliance with federal regulations, and to maintain an environment of sound business practices. To ensure that the university is aware of all expenditures that it is recording, and to possess documentation sufficient to ensure that proper controls have been implemented and followed.

Process:

1. For all payment requests original invoices/receipts/statements must be submitted to Accounts Payable.

2. Original – all requests for payments must be accompanied by an original receipt/invoice/statement. If you are seeking reimbursement for a purchase you must be prepared to submit the original receipt in order to receive the reimbursement. Tear-offs from restaurant tickets are not considered receipts.

3. Multiple items on receipt – if the original receipt combines personal expenses with reimbursable expenses and you wish to retain the receipt for your personal records, you must maintain the copy of the receipt for YOUR records. The Petty Cash Reimbursement policy has been established as an efficient and convenient method of reimbursement and will not be used to subvert the university’s policies regarding support documentation. If you choose to take advantage of the privilege of Petty Cash Reimbursements you should not expect the university to relax its policies, or violate federal regulations.

4. Total - The sum of the receipts must equal, at a minimum, the amount to be reimbursed.

5. Credit Card Purchases - If you are seeking reimbursement for a purchase made on your personal credit card a receipt is still required. If a receipt is not available you must provide a copy of your credit card statement reflecting the purchase (you may edit out the credit card number and other personal information) AND the payment request must be approved by an officer of the university. If the purchase was for over $500.00 and in violation of the university’s purchasing policy, the payment will be made in accordance with the payment terms policy.

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POLICY 1106 Accounts Payable; Foreign Currency Payments

Responsible Office: Controller’s Office

Date Issued: 06/01/01

Date Revised:

Contact: Donna Taylor, Manager of Accounts Payable & Fixed Assets MB 201; 312.567.3339

Policy: All payments are made in U.S. dollars by the Accounts Payable department, except exceptional instances where the vendor does not accept payment in U.S. dollars.

Purpose: To ensure that payment is made in accordance with university policies and procedures, and in the proper currency.

Process:

1. Follow the normal payment processes , EXCEPT…

Clearly indicate on the payment request document used that payment is in a foreign currency,
Clearly indicate the foreign currency requested.

2. A foreign draft will be requested by the Controller’s Office and mailed to the vendor.

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POLICY 1107 Accounts Payable; Wire Transfer

Responsible Office: Controller’s Office

Date Issued: 06/01/01

Date Revised:

Contact: Donna Taylor, Manager of Accounts Payable & Fixed Assets MB 201; 312.567.3339

Policy: All payments are processed through the Accounts Payable department and made via paper check, except those instances where the payee does not accept payment via a paper check. Whenever paper via paper check is acceptable a request for wire transfer should not be made.

Purpose: To ensure that payment for goods or services provided to the university are efficiently made in accordance with university and, where applicable, federal policies and regulations, and that proper controls are implemented and functioning to protect the assets of the university.

Process:

1. Follow normal payment process except:

2. Attach a copy of a completed wire request form. It is important that this form is completed exactly as requested and all information provided. If all information is not provided the form and all attachments will be returned to the originating department.

3. An additional $50 per wire transfer will be charged to your account to recover various bank fees.

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POLICY 1108 Accounts Payable; W9/1099’S

Responsible Office: Controller’s Office

Date Issued: 06/01/01

Date Revised:

Contact: Donna Taylor, Manager of Accounts Payable & Fixed Assets MB 201; 312.567.3339

Policy: All payments to individuals must be accompanied by a completed and valid form W9. A 1099 will be sent to all independent contractors or individuals who receive total payments in excess of $600.00 from the university within a calendar year. Per federal regulations an employee cannot be paid as an independent contractor.

Purpose: To ensure compliance with federal regulations.

Process:

W9-

When requesting payment to an independent contractor you must submit a completed W9.

1099-

1. In accordance with the IRS regulations, Accounts Payable will transmit to all independent contractors and individuals that received payment from the university in excess of $600.00 for the calendar year a 1099 by February 28 of the following year, or as required by the IRS.

2. In accordance with the IRS regulations, Accounts Payable will transmit to the IRS a list of all 1099’s issued as required by the IRS.

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POLICY 1109 Accounts Payable; Invoice Numbering

Responsible Office: Controller’s Office

Date Issued: 06/01/01

Date Revised:

Contact: Donna Taylor, Manager of Accounts Payable & Fixed Assets MB 201; 312.567.3339

Policy: All invoices must have unique and identifiable invoice numbers. If an invoice is received that is not pre-numbered Accounts Payable will create an invoice number in accordance with the steps defined below.

Purpose: To increase internal controls and utilize the electronic edits in FRS.

Process:

If the invoice is not numbered by the vendor the following numbering system will be used:

Dated Invoices:

The date of the invoice will be the invoice number. The format will always be MONTH (two digits) DATE (two digits) YEAR (four digits) as follows: June 5, 2001 will be invoice number 06062001.

For invoices that are not dated the date will be the last date of service. For example if the invoice does not have an invoice number, and does not have an invoice date, but the date of service of June 1, 2001 through June 11, 2001 is included on the invoice, June 11, 2001 will be the invoice date.

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POLICY 1200 Fixed Assets

Responsible Office: Controller’s Office

Date Issued: 06/01/01

Date Revised:

Contact: Darlean Smith MB 201; 312.567.3592

Purpose: To establish and implement controls necessary to protect the assets of the university, and record assets in compliance with federal rules and regulations and generally accepted accounting principals.

Policy: To safeguard and record all capital items in accordance with the university capitalization policy.

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POLICY 1201 Fixed Assets; Capitalization Policy

Responsible Office: Controller’s Office

Date Issued: 06/01/01

Date Revised:

Contact: Darlean Smith MB 201; 312.567.3592

Purpose: To provide guidelines and parameters necessary to allow the enforcement and implementation of the university’s capital policies, and to provide a sound basis for accurately valuing the university’s assets.

Policy: All purchases of equipment and buildings that exceed $1,000.00, any purchase of land, and building renovations and repairs that exceed $25,000.00 and extend the useful life of the asset will be capitalized and depreciated over the estimated useful life of the asset as defined by the Controller’s Office schedule of useful life.

1. Land – Costs to be capitalized includes all costs associated with the acquisition of the land as well as the costs incurred in preparing the land for its intended purpose. These costs include, but are not limited to, purchase costs, closing costs, razing existing structures.

2. Land Improvements – Costs to be capitalized include, but are not limited to, landscaping, lighting, and parking lots that exceed $25,000.00.

3. Buildings – Costs to be capitalized include all costs associated with the purchase or construction.

4. Building Improvements (repairs and renovations) – Costs to be capitalized are costs that improve the useful life of the building, or substantially changes the use of the original space, or the improvement expands the total space of the building, AND exceed $25,000.00.

5. Equipment – All equipment that costs > $1,000.00 and is a tangible piece of personal property that has a useful life of more than one year. Costs capitalized include all costs of purchase and those costs associated with delivery, transportation, insurance while in transit, installation costs, and other similar costs. For government owned equipment the cost will be the cost as recorded on the official transfer document.

a. All equipment owned by the university is subject to the university fixed asset policies.

b. The safeguarding and use of equipment assigned to a department is the responsibility of the department chairperson.

6. Constructed/Component Equipment – The capitalization policy is the same as equipment. The total value of the purchase is considered in determining if an expenditure is to be capitalized. If the total cost is $1,000.00 the total cost will be capitalized.

7. Furniture and Fixtures – Individual pieces must exceed $1,000.00, unless the purchase is an integral part of building construction.

If an order of 100 chairs at $69.65 per chair is made, this order is not capital because each individual unit is less than $1,000.00.

8. Software – Software will be capitalized if the value exceeds $15,000.00 and has a useful life of greater than one year.

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POLICY 1201.1 Fixed Assets; Capitalization Policy; Equipment Purchases

Responsible Office: Controller’s Office

Date Issued: 06/01/01

Date Revised:

Contact: Darlean Smith MB 201; 312.567.3592

Purpose: To provide guidelines for the purchase of equipment.

Policy:

1. All equipment owned by the university is subject to university fixed asset policies.

2. The safeguard and use of movable equipment assigned to a department is the responsibility of the department chairperson.

3. The purchase of equipment with university funds for personal or private use is strictly prohibited.

4. The use of university property in an off-campus location must be approved by the department chairperson and notification must be given to the Department of Accounts Payable & Fixed Assets, MB201; 312.567.3592.

5. The Controller’s Office is responsible for maintaining a permanent, detailed record of all fixed and movable equipment owned by the university, including sponsored program acquisitions and gifts of equipment.

6. Departments must notify the Office of Institutional Advancement, and the Controller’s Office of all gifts of equipment received.

7. The Controller’s Office must be notified of any changes in the status of equipment, such as relocations or disposals. All changes shall be recorded in the fixed asset system. (see policy 1203).

Purchase Process:

1. Complete a purchase requisition in accordance to Purchasing Policies.

2. Complete an Equipment Acquisition Request (EAR) form, this is mandatory for all equipment purchases and is important for university compliance with federal A-21 guidelines.

3. Send requisition and EAR form to Purchasing in MB201.

4. Purchasing will issue purchase order and submit to vendor.

5. When the equipment is received the department should following the policies for processing payment of received goods. (see policy 1101)

6. You will be contacted by the Accounts Payable & Fixed Asset office regarding inventory of the equipment.

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POLICY 1201.2 Fixed Assets; Capitalization Policy; Construction Projects

Responsible Office: Controller’s Office

Date Issued: 06/01/01

Date Revised:

Contact: Darlean Smith MB 201; 312.567.3592

Purpose: To provide guidelines for the proper accounting of construction projects.

Policy: Construction projects meeting the university’s capitalization threshold will be recorded within the fixed asset system, and capitalized upon completion of the project. Until the project is complete it will be recorded as construction in progress on the university’s records. All costs associated with the project will be capitalized, these costs include but are not limited to; architect fees, project management fees, utility usage exclusive to the project, engineering fees, surveys, permit fees, design fees, material and supplies, construction costs.

Process/Guidelines:

1. All construction projects must be recorded on a ledger “7” account.

2. All requests for a ledger “7” account must be approved by the Associate Vice President for Facilities (see creating accounts).

3. Construction Project Managers are responsible for processing all payments for construction projects.

a. All payments must be made in a timely fashion.

b. Contracts should be encumbered in total, and if contractually necessary, paid incrementally as work is completed and invoiced.

i. Partial payments should be made in accordance with the university policy on partial payments (see policy 1101.1 ).

c. Payment should only be made for goods or services received, and should only be requested in accordance with the university’s policy (see policy 1101 ).

i. Payment requests must be accompanied by original invoices, “estimates” or “proposals” should not be used as support documentation (see policy 1105).

4. Completion- upon completion of a project, the Facilities Office is responsible for contacting Accounts Payable & Fixed Assets (MB 201; 312.567.3592) and providing notice that the project is complete and should be closed.

a. The Project Manager should complete a Project Close-Out Form and return it to Inventory Control in MB201.

b. Upon receipt of the form the office of Accounts Payable & Fixed Assets will record the project in the fixed asset system.

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POLICY 1202 Fixed Assets; Depreciation Policy

Responsible Office: Controller’s Office

Date Issued: 06/01/01

Date Revised:

Contact: Darlean Smith MB 201; 312.567.3592

Purpose: To provide a systematic method that allows for the accurate recording the depletion/use of university assets which will ensure accurate recording and reporting of the university’s assets.

Policy: The university will depreciate its assets (as defined in the capitalization policy) in a straight-line method, according to a detailed schedule maintained by the Controller’s Office. Presented below is a listing of the depreciation schedule for more common items:

ITEM	USEFUL LIFE
Computer equipment	3 years
Scientific equipment	10 years
Office furniture	5 years
Land improvements	15 years
New buildings	50 years
Building improvements:
Roofs	20 years
Plumbing	20 years
Elevators	20 years
Renovations	20 years
HVAC	20 years

Equipment purchased during the fiscal year will be depreciated for one full year.

Constructed buildings will be depreciated beginning in the first year the building is put into use.

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POLICY 1203 Fixed Assets; Disposal/Transfer/Sale

Responsible Office: Controller’s Office

Date Issued: 06/01/01

Date Revised:

Contact: Darlean Smith MB 201; 312.567.3592

Purpose: To properly account for the disposal of university owned equipment.

Policy: The Controller’s Office is responsible for accounting for the disposal of all equipment at the time of disposal in accordance with federal regulations and generally accepted accounting principals.

Department administrators are responsible for the safeguarding, maintaining and utilizing all equipment it acquires.

Disposal Process:

1. If a piece of equipment is identified by the department administration responsible for the equipment as being obsolete, damaged beyond repair, completely depleted/used, or junk and the department wishes to dispose of the equipment the department must follow the below steps:

Obtain written authorization to dispose of the equipment from the department chair.

Complete the Disposal/Transfer/Sale of Inventory Equipment form.

Contact Inventory Control in MB201; 312.567.3592 notify Inventory Control of the pending disposal, and transmit the completed form to Inventory Control.

Inventory Control will review the request and if approved they will request the department to remove all equipment tags from the equipment and send the tags to Inventory Control.

i. Equipment purchased using federal funds(or other sponsored projects as applicable): The department of Inventory Control will contact the Office of Project Accounting to ensure compliance with all federal rules and regulations concerning equipment purchased with federal funds. If there is continued need for the equipment and its fair market value exceeds $1,000.00 it may be transferred to another sponsored project, and the original owner “project” shall be reimbursed for its share of the fair market value.

1. If there is no need for the equipment the office of Project Accounting will request disposition instructions from the awarding/sponsor agency, for HHS awarding agencies instructions must be issued to the university no later than 120 days after the request.

a. The department will follow the instructions as specified by the agency. Usually the agency will reimburse the university for any disposal costs.

b. If no instructions are received within the required time period the department will dispose of the equipment and if there are proceeds shall reimburse the agency, or applied to other projects but only if instructed by the agency.

ii. For equipment purchased with other sources:

a. Inventory Control will manage the disposition of equipment and will instruct the disposing department on how to proceed.

b. Computers – generally Inventory Control will contract the Office of Computing and Network Services to determine if the computer equipment is usable in whole or for parts. If it is determined that the computer offers no value in parts or service Inventory Control will list the equipment as available for sale on the OBSELETE EQUIPMENT web site. All equipment will be sold for a value as determined by the Controller’s Office, but at a minimum the carrying value.

c. Furniture – Inventory Control will contact the office of Facilities to determine if there is use for the furniture. If there is no use for the furniture Inventory Control will list the furniture on the OBSELETE EQUIPMENT web sit. All furniture will be sold for a value as determined by the Controller’s Office, but at a minimum the carrying value.

d. Other equipment – Inventory control will instruct the department on the disposal method. All disposals must be in compliance with federal and other governmental policies concerning disposition.

Transfer Process: The transfer of equipment involves transferring equipment from one department/unit to another, or from the university to another organization.

1. To request a transfer of equipment from one department to another, or the relocation of equipment the department requesting the transfer or relocation must complete a Disposal/Transfer/Sale of Inventory Equipment form, and forward the form to Inventory Control, MB 201.

2. Inventory Control will then record the transfer/relocation in the FAIS.

3. Transfer to another entity – Usually used when a researcher or faculty move to another university. The Disposal/Transfer/Sale of Inventory Equipment form should be completed and forwarded to Inventory Control, MB201.

Inventory Control will follow disposal polices,
If the transfer is approved Inventory Control will remove the asset from the FAIS and contact the receiving entity of the transfer.

4. Transfer from another university – The department receiving the equipment must notify Inventory Control in MB 201, 312.567.3592. They must provide a description, original receipts and an estimate of the fair market value of the equipment. Inventory Control will enter the asset into the FAIS if the value is greater than $1,000.00.

Sale Process: Equipment will only be sold once it is determined that the equipment has no value to any department within the university. Sale proceeds will be recorded to the university general funds, or to sponsored projects if applicable.

1. Inventory Control will coordinate all sales of equipment. Before any equipment is sold, the procedures for disposal of equipment must be followed.

2. The department requesting a sale must complete the Disposal/Transfer/Sale of Inventory Equipment form and forward to Inventory Control.

A. For the sale of inventory equipment purchased with sponsored funding see policy on disposal for equipment purchased with federal funds.

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POLICY 1204 Fixed Assets; Fixed Asset System

Responsible Office: Controller’s Office

Date Issued: 06/01/01

Date Revised:

Contact: Darlean Smith MB 201; 312.567.3592

Policy: All equipment purchased with university funds, sponsored funds, received as a gift/donation, or acquired in any other way for, or by, the university, and defined by the university as capital equipment will be included in the university’s fixed asset inventory system which is maintained by the Controller’s Office department of Inventory Control. All construction, repair and renovation projects will be included in the university’s fixed asset system.

Purpose: To provide an accurate and reliable system of recording, valuing, and placing in an inventory all equipment owned or under the control of the university. To provide rules and procedures to ensure that proper controls are in place to safeguard the university’s assets, and those assets under the university’s control, and ensure compliance with federal and university policies.

FAIS :

1. The fixed asset inventory system (FAIS) is the only system that should be used to track/control the university’s inventory.

2. This system will record each item and calculate its value over time.

3. In accordance with sound accounting principals and the Code of Federal regulations Title 45, Volume 1, parts 1 to 199; 45CFR74.34, the following information is required for each item included in the FAIS:

A. Description of the equipment,

B. Manufacturer’s serial number, model number, or other identifier,

C. Funding source of equipment,

D. Where title vests (Gov’t. Sponsor/Agency if applicable),

E. Acquisition date,

F. Funding source percentages,

G. Location of equipment,

H. “Owner” information such as…

a. Custodian name,

b. Department,

c. Executive level,

d. Campus.

I. Total cost,

4. The department of Inventory Control will maintain disposition information including sales proceeds if applicable.

5. Equipment where title is retained by the federal government – This equipment will be identified in the FAIS and recorded at the acquisition cost in accordance with university capitalization policies (see policy 1201 ), or for government furnished equipment the cost as recorded on the official transfer document..

Return to Index

POLICY 1205 Fixed Assets; Physical Inventory Policy

Responsible Office: Controller’s Office

Date Issued: 06/01/01

Date Revised:

Contact: Darlean Smith MB 201; 312.567.3592

Policy: All capital equipment will be “tagged” and recorded in the Fixed Asset Inventory System. Inventory Control will perform a physical inventory of all capital equipment recorded in the Fixed Asset Inventory system (FAIS) for at least two university departments annually. For equipment titled by the federal government Inventory Control will perform annual physical inventories and submit the report to the the Office of Project Accounting who will submit the report to the proper authorities.

Purpose: To ensure that the recorded equipment inventory is accurate, and to provide controls to ensure that assets are properly safeguarded and maintained.

Tagging Procedures:

1. Inventory Control will review capital purchases at the end of every month.

2. Based on this review Inventory Control will distribute to the department that purchased the equipment a “tag” and an Asset Control Sheet that lists pertinent information regarding the equipment.

3. The department must complete the identified fields on the sheet, such as location building and room number, serial/model number, and return to Inventory Control within 15 days.

Physical Inventory Procedures:

1. Inventory Control will identify the departments that will be inventoried and notify each department at least one week before the inventory will occur.

2. The department MUST accommodate the request of Inventory Control and provide any assistance needed, which includes access to all space, access to all equipment and access to all records and staff that use the equipment.

3. Upon completion of the physical inventory, Inventory Control will record the results of the inventory and will adjust the book values of the appropriate assets as required by the results of the inventory.

4. If there are unusual discrepancies between the physical inventory and the recorded assets inventory must notify the Controller or Deputy Controller of such discrepancies.

ILLINOIS INSTITUTE OF TECHNOLOGY

PARTIAL SHIPMENT PAYMENT FORM

To be used for partial payments only. For payment of goods/services actually received in conformity with order.

Complete form and attach any support documentation and send to Accounts Payable MB201.

VENDOR__________________________ P.O. No. ___________________

Req. No. ___________________

Dept. ___________________

FRS Acct No. _______________

QTY	UNITS	DESCRIPTION	COMMENTS	AMOUNT

I hereby certify that the goods or services listed above have been received in conformity with the ordering terms and payment should be made.

________________________________ _____________________________

Signed Date received

_________________________________ _____________ _____________

Printed name Extension email

ILLINOIS INSTITUTE OF TECHNOLOGY

PROJECT CLOSE-OUT FORM

Use this form when a capital project is complete. The Project Manager should complete this form and submit it to Inventory Control, MB201.

Account number:___________________

Project Description:____________________________________________________________

Completion Date: __________________

Project Location:

Building: ___________________

Room: _____________________

Contact Person: ________________ extension:______ email: ______

Printed name

APPROVAL: (all forms must be approved by the Associate Vice President for Facilities)

Project Manager: ___________________________

Assoc. Vice President for Facilities: _______________________________

To be completed by Inventory Control:

Date form rec’d:

Date entered into

Fixed Asset System:

Illinois Institute of Technology
Request for Wire Transfer
(forward to Controller's Office)

Date:

Total Amount:		Type of Currency:



Beneficiary (Payee) Information:
Beneficiary Name:
Address (City, Country):
Bank Account Number:

Beneficiary Bank Information:
Bank Name:
Address (City, Country):
Bank Code (Routing) No.:
Swift Account Number:

Contract or Invoice Number:
Contract or Invoice Date:

Purpose of Transfer or Expenditure:




Charge Account and Subaccount Number (FRS acct.):


Authorization:
Printed Name:	Department:	Phone:	Signature:



*IMPORTANT: Transaction will not be processed unless form is fully completed*

For Accounting use only:

ILLINOIS INSTITUTE OF TECHNOLOGY

*CHECK DISBURSEMENT VOUCHER*



*Date:*			*Amount:*

*Payee:*
*Address:*

*City, State & Zip:*

INVOICE DATE	INVOICE NUMBER	ACCOUNT NUMBER	*SUB ACCOUNT*	NET AMOUNT








*DESCRIPTION:*			*TOTAL*





Department Approval *				*Special Instructions*
*(must include printed name and email)*


Signature			Date


Printed Name			email
* Payments to employees must be approved by someone other than the requested payee

ILLINOIS INSTITUTE OF TECHNOLOGY

EQUIPMENT ACQUISITION REQUEST

New equipment: ____ Date: ______________

Replacement equipment: ____ Purchase req. # ___________

IIT equipment tag number of upgrade

Or addition to existing equipment: ______________________________

Description of equipment: ________________________________________________________________________

________________________________________________________________________

Reason for purchase:

________________________________________________________________________

Anticipated use of equipment: _______________________________________________

Disposition of any equipment replaced by purchase (if disposing of equipment use Disposal/Transfer/Sale of Inventory Equipment Form): ________________________________________________________________________________________________________________________________________________

Submitted by:_________________________ Extension:________email_________

Approved by:_________________________ ______________________________

Printed name Signed

________________________________________________________________________

To be completed by the Purchasing Department:

Date	Vendor	P.O. Number	Amount

Tag #	Description	Serial/Model #	Location	T/D/S*	Sale/Transfer to…**	Explanation