SOP-PURCH-35: Equipment Transfers or Sales to Other Research Universities

Number: SOP-PURCH-35

Subject: Equipment Transfers or Sales to Other Research Universities

Summary: Transferring or selling computers and other equipment to other research universities.

Source: University Procurement Services

Date of Issue: 06/22/2022

Date of Revision: 07/14/2023

Procedure

It is not uncommon for researchers to transfer to another university and take with them equipment and/or S&E items purchased with their grants.

Some grants may allow equipment to be transferred without payment to IU (No Funds Exchanged). Others do not, and the equipment must be sold to the new university (Funds Exchanged).

The below outlines required steps for completing both types of equipment transfers:

Important: All documentation must be retained by the department for audit purposes.

1) Transferring Equipment To Another Research University – No Funds Exchanged:

A) Obtain Required Approvals from:

• Department Chair or Dean. Documentation of the items to be transferred can be as simple as an email exchange between the researcher and the department listing the items.
  • UITS protocol must be followed for wiping hard drives and returning them to their original operating systems. See link: https://datamanagement.iu.edu/data-classifications/index.html.
• Office Of Research Administration. If equipment was purchased with grant funds, contact the Grant Administrator to determine what ORA requirements and/or approvals may be needed.
• Purchasing. After obtaining the above approvals, request Purchasing approval via the Support Form.
  • Select ‘Redistribution & Surplus’ under “I need help with…”, and ‘Resale of IU Property’ under “Choose a topic”.

B) Retire Capital Equipment, if applicable:

In addition to the process above, Capital items also require retirement through Capital Assets. The department will need to follow the retirement procedure listed here: https://training.iu.edu/documentation/capital-assets/manage/index.html.

C) Create Required Documentation:

Capital assets that are transferred should be formally documented. The following linked sample is an example of acceptable documentation.

• Sample Equipment Transfer doc - satisfies the need for equipment transfer to another institution and CAMS notation
  • The department provides information for areas highlighted. (Lists can be attached if necessary.)
  • Always make sure that the institution where the researcher is transferring is the recipient on record and not the individual researcher.
  • Send completed form to the Purchasing Category Manager you have been working with for signature.
  • Signed form should kept on file in your department.

2) Transferring Equipment To Another Research University – Funds Exchanged:

A) Obtain Required Approvals from:

• Department Chair or Dean. Documentation of the items to be transferred can be as simple as an email exchange between the researcher and the department listing the items.
  • UITS protocol must be followed for wiping hard drives and returning them to their original operating systems. See link: https://datamanagement.iu.edu/data-classifications/index.html.
• Office Of Research Administration. If equipment was purchased with grant funds, contact the Grant Administrator to determine what ORA requirements and/or approvals may be needed.
• Purchasing. After obtaining the above approvals, request Purchasing approval via the Support Form.
  • Select ‘Redistribution & Surplus’ under “I need help with…”, and ‘Resale of IU Property’ under “Choose a topic”.

B) Retire Capital Equipment, if applicable:

In addition to the process above, Capital items also require retirement through Capital Assets. The department will need to follow the retirement procedure listed here: https://training.iu.edu/documentation/capital-assets/manage/index.html.

C) Invoice Customer/Buyer Of Equipment:

• Selling department creates invoice in KFS Accounts Receivable module to bill the customer (new university) who is purchasing the equipment.
• Refer to Invoice Guide for billing details.
• If you are unsure who in your department has access to generate a KFS AR invoice, please contact Accounts Receivable using the Controller’s Support Form for assistance.

D) Create Required Documentation:

Capital assets that are sold should be formally documented. The following linked sample is an example of acceptable documentation.

• Sample Bill Of Sale doc – this is not an invoice, it is documentation of the sale.
  • The department completes the document
  • The document officially transfers ownership of equipment
  • Once payment is received, the document should be signed by Purchasing and kept on file in your department.
  • On a sale it is best to not let the equipment leave IU until payment is received.

All other (non-grant) external sales or internal transfers/sales must follow the Disposal and Redistribution of Property policy.

For Purchasing Personnel Only

• POP-PURCH-44 Equipment Transfers.pdf
• POP-PURCH-44 Sample Bill of Sale.pdf
• POP-PURCH-44 Sample Equipment Transfer.pdf