Subject Area: Accounting
Responsible Office: Financial Services
Approval: Associate Vice President for Finance
Originally Issued: December 1984
Revised: February 2004, January 2010
Refer Questions To: Martha Bulin, 773-702-1958

PURPOSE:   To properly account for disposal of University-owned equipment. For purposes of this policy, disposals include equipment which is stolen, destroyed, discarded as junk, salvaged for parts and components, traded in, sold, or transferred to another institution

POLICY

1. Financial Services is responsible for accounting for the disposal of all equipment at the time of disposal in accordance with the applicable financial accounting pronouncements.
2. The departments are responsible for advising the Financial Services of all equipment disposals.
3. Any sale of University equipment to third parties outside the University, including University employees, requires the prior approval of Financial Services and Purchasing and Payment Services based upon written recommendation of the head of the department.
4. Financial Services' Capital Funds must be notified of any internal relocation or sale of University-owned equipment. See Financial Policy No. 1004.5.
5. The University Police Department must be notified when equipment is stolen.
6. Equipment salvaged for parts and components must be removed from the property records.
7. Purchase order requests and purchase orders must indicate if equipment is being traded in as part of the purchase.
8. The transfer of equipment to another institution requires approval of Financial Services based upon written recommendation of the head of the Department or the administrative Dean, Vice President, or Director.