Transfer of Project Equipment

Responsible Office:    Project Accounting Date Issued:    10/11/05 Date Revised:      Contact:    project.accounting@iit.edu Policy: Criteria for Transfer of Sponsored Research Grant or Contract Purchased Equipment Purpose: To establish and implement guidelines for transfers of sponsored research grant or contract project-related equipment in compliance with applicable Federal, state or other sponsor (external agency) requirements. [NOTE: This Project Accounting policy incorporates by reference the following policy: Policy 1203 – Fixed Assets; Disposal/Transfer/Sale from the IIT Accounting Policy Manual, which is part of the IIT Controller’s Office policies. Further information on fixed assets is contained within the main policy, Policy 1200 – Fixed Assets.] Process: The transfer of equipment may involve transferring equipment from one department/unit to another at IIT, or between IIT and another university or organization. The steps listed below apply to all equipment purchased with contract or grant funds from Federal, State of Illinois, or other external sponsors (external agencies). Within IIT – transfer or relocation of equipment from one department/unit to another: IIT Department requesting the transfer or relocation: Obtain written authorization from the Department chair. Request and obtain any necessary external agency approval and parameters for the transfer of equipment, its use, and its ultimate disposition, and include with all IIT documentation including Departmental, Project Accounting, and Inventory Control files. Complete a Disposal/Transfer/Sale of Inventory Equipment form, and forward the form to Inventory Control, MB201. Inventory Control: Record the transfer/relocation in the fixed asset inventory system (FAIS) at IIT. From IIT to another university or organization: IIT Department requesting the transfer or relocation: Obtain written authorization from the Department chair and Dean of the College. Request and obtain any necessary external agency approval and parameters for the transfer of equipment, its use, and ultimate disposition, and include with all IIT documentation including Departmental, Project Accounting, and Inventory Control files. Complete a Disposal/Transfer/Sale of Inventory Equipment form, and forward the form to Inventory Control, MB201. If transfer approved, coordinate with Inventory Control to facilitate transfer. Inventory Control: Upon receipt of completed Disposal/Transfer/Sale of Inventory Equipment form, review transfer request. Contact Project Accounting to review transfer request and ensure compliance with all applicable sponsor requirements and verify that a copy of external agency applicable approval and/or policy is attached to form. If transfer approved per Project Accounting, follow any applicable Federal, State, or other external agency guidelines, policies, or requirements supplied by the external agency or by Project Accounting. Remove asset from FAIS and contact receiving entity to advise of the transfer. Coordinate with receiving entity and IIT donating Department to facilitate transfer. Project Accounting: Upon request from Inventory Control, review sponsor requirements (including Federal, State or other external agency rules and regulations, if relevant) for applicability. Obtain from IIT donating Department any applicable external agency documentation regarding the sale or transfer. Convey any external agency instructions to Inventory Control. (Note: Federal agencies have 120 days after request date to respond with instructions. If no instructions received by that time, IIT may transfer and/or dispose of equipment based on IIT’s fixed asset/equipment guidelines.) To IIT from another university or organization: IIT Department receiving the equipment: Notify Inventory Control, MB201 of the incoming equipment and provide the following information: Description of the equipment Original receipts for the equipment Estimate of the fair market value of the equipment Obtain from the transferring entity any applicable policies or other documents for receipt of donated equipment, its use, and its ultimate disposition or disposal. Inventory Control: Review information provided by Department receiving transferred equipment. Log equipment information into FAIS, if value is greater than $1,000.00. Other: Information on other aspects of equipment management is found in Policy 1200 – Fixed Assets from the IIT Accounting Policy Manual, which is listed within the IIT Controller’s Office policies on the IIT website.