Please review the related policy and procedure: Business and Financial Policies and Procedures Manual – 12.3.2 Process an "Internal Sale" of Equipment to Another Unit.

If equipment held by one department can be used by another department, and there is a mutual agreement for the receiving department to pay for the equipment, a transfer "sale" transaction can be made between the two departments. The "sale" is usually accomplished via a budget transfer from the receiving department to the originating department for the agreed-upon amount.

For example, a piece of lab equipment was going to be traded in for new lab equipment by the School of Chemical Sciences at UIUC. However, the Department of Biochemistry at UIUC can use that equipment, so an internal "sale" is done between the School of Chemical Sciences and the Department of Biochemistry. The Department of Biochemistry compensates the School of Chemical Sciences with a budget transfer.

Allowable Funding Transfers

Only certain types of budget or funding transfers are allowed to compensate for the equipment. Check with your business office if you have any questions about allowable funding transfers. Permissible funding transfers include:

• Budget transfers between state appropriation or institutional funds
• Expenditures from state appropriation funds to other state appropriation funds
• Expenditures between institutional and gift/endowment income funds
• Expenditures from self-supporting funds to other self-supporting funds
• Expenditures from non-federal grant funds to institutional or gift/endowment income funds
• Expenditures from institutional, self-supporting, or gift/endowment income funds to grant funds, with specific written approval of the sponsor

Grant or contract fund sources may be used for the "purchase" of sponsored project equipment, with permission from the sponsor. Contact the appropriate Sponsored Research office for assistance in obtaining permission from the sponsor in these cases: Sponsored Programs Administration (UIUC), Sponsored Programs (UIC), and Office of Research and Sponsored Programs – Post-Award (UIS). 

The following funding transfers are prohibited because of their potential impact on indirect cost rate:

• Transfers between institutional and self-supporting funds
• Transfers from federal grant funds to institutional, self-supporting, or gift/endowment income funds

Journal Vouchers

After initiating an interdepartmental transfer via FABweb, the Unit Rep of the originating department must create a journal voucher using the Journal Voucher Entry Page (FGAJVCD) in Banner to process the fund transfer. A separate journal voucher must be completed for each item being sold.

Each journal voucher to transfer funds must include the following information in document text:

• Amount of "payment"
• Original account charged for the equipment.
• Reference to original purchase document
• Description
• Permanent number (PTag) of the equipment
• Name of the originating department
• Name of the receiving department
• Chart and Organization code of the originating department
• Chart and Organization code of the receiving department

For more information about processing journal vouchers for equipment, please refer to: Journal Voucher Processing Participant Guide - Appendix L.

For step-by-step instructions on how to create a journal voucher, please refer to the job aid: Creating a Journal Voucher with FGAJVCD or FGAJVCQ.

For questions about or exceptions to transfer restrictions, please contact the appropriate Sponsored Research office: Sponsored Programs Administration (UIUC), Sponsored Programs (UIC), and Office of Research and Sponsored Programs – Post-Award (UIS).

Funding Source Information