Equipment Approval, Purchasing, and Expensing on Sponsored Projects
Description
Generally, external sponsors require prior approval before the equipment may be purchased on an award. In the majority of cases, request for approval is accomplished by submitting a budget and budget justification during the proposal stage of the award. Some sponsors require written prior approval before the actual acquisition of the equipment/property. Review your award specific and sponsor terms and conditions to determine your sponsor’s procedures.
Purchasing
In compliance with UG - Procurement by States, the State of Illinois procurement code governs the procurement policy and practices of the University. When making an equipment purchase through any mechanism, please refer to the Office of Procurement website for policy and procedures.
Purchasing Applicability and Authority
In addition to approval by the Office of Procurement, equipment and lease purchases through i-buy or other purchasing mechanisms will require SPA approval before posting to the sponsored fund. Below is the approval criteria:
| Funding Agency | Threshold for Approval | Fund Code Range | Account Code Range | SPA |
|---|---|---|---|---|
| State of Illinois Projects | >=$25,000 | 560000 - 599999 | 157* - 158* or 163* | SPA Approval Queue |
| Other Sponsored Projects | >=$25,000 | 400000 - 559999 | 157* - 158* or 163* | SPA Approval Queue |
| All Sponsored Projects | >=$100,000 | 400000 - 599999 | 157* - 158* or 163* | SPA Supervisor Approval |
Note: For additional information on the SPA Approval Queue please reference the SPA Expense Transaction Reviews resource .
Expensing
| Value Threshold and Useful Life of 1 year + | Description and Banner Account Code |
|---|---|
| $2,500 - $4,999 | Tracked non-capitalized equipment; account code 127xxx |
| >= $5,000 | Fabricated equipment; account code 128xxx |
| >= $5,000 | Capitalized equipment; account code 163xxx |
For additional guidance, please use the Equipment Title Tool
- If equipment costs are shared across multiple projects, document how the cost is divided and why each project benefits
- Equipment must directly benefit the project to be allowable
- Federally titled equipment must be completely funded by the sponsor and cannot be allocated between different awards or funding sources.
- Equipment titled to the University may be purchased on split funding (funding from non-sponsored funds and Federal sponsor funds)
- The cost allocated to the Federal project should be based on the relative benefit
- Documentation to support the methodology should be maintained by the department.