I. Procedure statement
II. Who is affected by this procedure
III. Procedure
IV. Contact roles and responsibilities
V. Definitions
VI. Revisions
I. Procedure statement
This procedure outlines the steps and individuals responsible for identification of Department Property Administrators (DPAs) and establishment of the DPA Acceptance Agreement between the designated DPA, the Division’s Chief Financial Officer and Property Control Office.
II. Who is affected by this procedure
This procedure applies to all UW–Madison departments. It should be understood by department managers, DPAs, department chairs, directors, deans, and employees responsible for equipment.
III. Procedure
The following steps represent the overall process for establishing a Department Property Administrator:
The Division’s Chief Financial Officer (CFO) works with administrative leadership within their departments to identify an individual who will be assigned the capital equipment property administration responsibilities for one or more departments within the Division. Discussion with and approval by the individual’s supervisor and the designated DPA is expected before submitting the name of the designated DPA and assigned departments to Property Control Office.
Property Control Office fills out the DPA Acceptance Agreement and emails a PDF to the designated DPA.
Designated DPA signs the Acceptance Agreement and sends to the Division’s Chief Financial Officer for signature.
Once CFO signs, they send the signed document to Property Control Office.
Property Control Office signs the DPA Acceptance Agreement and emails a PDF of the fully signed agreement to the DPA and CFO.
The CFO provides a copy of the fully signed document to the administrative leader for each department that the DPA is assigned to support, and confirms the DPA’s position description has been updated to reflect the DPA responsibilities.
The DPA completes the required capital equipment training sessions and achieves a passing score on the session evaluation.
If the DPA leaves the University or changes positions such that they will no longer serve as the DPA, the DPA or CFO must notify the Property Control Office immediately, and the CFO begins the procedure again at step #1.
IV. Contact roles and responsibilities
wdt_ID
DPA Delegation
Division CFO
Dept Leader
DPA Supv
DPA
Property Control
1
1) Submit designated DPA name to Property Control.
X
2
2) Fill out the DPA Acceptance Agreement and email a PDF to the designated DPA.
X
3
3) Sign the DPA Acceptance Agreement and route to Division’s CFO.
X
4
4) Sign DPA Agreement and send copy to Property Control.
X
5
5) Sign DPA Agreement and send copy of fully executed DPA Agreement to DPA and CFO.
X
6
6) Provide copies of DPA Agreement to the administrative leaders and confirm the DPA’s position description has been updated by their supervisor to reflect DPA responsibilities.
X
X
X
7
7) Complete the required capital equipment training sessions and achieve a passing score on the session evaluation.
X
8
8) Notify Property Control if DPA will no longer serve the DPA role.
I. Procedure statement
II. Who is affected by this procedure
III. Procedure
IV. Contact roles and responsibilities
V. Definitions
VI. Related references
VII. Revisions
I. Procedure statement
This document covers procedures to be followed when a departing employee requests to take capital equipment with them to a new institution. In all cases, Request for Authorization to Transfer/Sell University Property to a Departing Employee’s New Institution and an Agreement for Transfer/Sale of University Property must be completed and signed prior to equipment being shipped to the new institution. Please note, Departments and Divisions may require additional review, approval, and discussion with the Deans Office when a departing employee requests to take capital equipment with them to a new institution.
Criteria for determining authorization of transfer/sale of capital equipment
Department Chair/Deans Office/Director/Designee and Property Control may authorize departing employees to take University equipment if all of the criteria are met:
The departure of equipment does not adversely affect instructional needs, graduate students or other research remaining at UW-Madison.
Formal resignation has been submitted by the departing employee and received by the Department Chair/Supervisor.
The departing employee was a permanent, University employee, including Faculty and Academic Staff roles. Student employees and zero-dollar appointees are excluded from this definition.
The departing employee’s role was directly related to at least one element of the University’s core mission (instruction, research, or public service). This excludes administrative roles.
The capital equipment will be used for the same purpose at the new institution.
The new institution is another institution of higher education or academic research. Equipment cannot be transferred to a for profit or start-up business.
Equipment does not contain any UW Licenses, UW Proprietary Software, nor any sensitive data.
If all of the above criteria are met and the Department Chair, Dean/Director/Designee approves the transfer/sale of equipment, departments must complete Form 110.11F Request for Authorization to Transfer/Sell University Property to a Departing Employee’s New Institution.
Criteria for determining if a transfer of equipment is acceptable
Equipment may be transferred to the departing employee’s new institution under the following circumstances. The transfer of equipment is also referred to as a zero-dollar, cost transaction.
The capital equipment item was solely funded by an active/on-going, sponsored research project AND the research project is moving with the departing employee to their new institution. Expenses for all packing, shipping and insurance costs are covered by the new institution.
Note: An active or on-going project is defined as a contract/grant/agreement having the same sponsor, that is currently in progress having not ended, and is being continued at the new institution.
Criteria for determining if a sale of equipment is acceptable
Equipment may be sold to the departing employee’s new institution under the following circumstances.
The sale is a negotiated exchange as part of the departing employee’s recruitment between the UW department and the departing employee’s new institution.
Departments may be allowed to sell equipment in situations involving departing employees and their new institutions. Sales involving departing employees may be granted, because such sales are customary exchanges in academia and are commonly negotiated as part of a larger recruitment/employment package offered to the departing employee. This circumstance does not meet the state’s definition of surplus and therefore is an allowable sale. In situations where this is not the case, departments must coordinate sale through Surplus with a Purpose (SWAP). Please refer to Procedure 3008.7 Equipment Dispositions.
Equipment was funded by a sponsored project, but the project is closed AND there are no sponsor restrictions on the award.
Criteria for determining a sale price of equipment
Property Control provides a listing of the capital equipment and information including initial acquisition cost of equipment, acquisition date, and net book value (NBV) for which equipment is recorded in the University’s financial sub ledger.
Property Control does not require departments to sell at the NBV, but does ask for a brief explanation if there is a difference between NBV and sale price.
An employee’s Department Chair and/or Dean/Director/Designee has the final authority to set the sale price of the equipment, as they are most closely involved in situations when prices must be negotiated with a new institution.
At their option, Department Chairs and Deans/Director/Designee may seek the advice of the Division of Business Services, Purchasing Services for a suggested sales price.
II. Who is affected by this procedure
This procedure applies to all UW–Madison departments. It should be understood by Department Managers, Department Property Administrators (DPAs), Department Chairs, Directors, Deans, Chief Financial Officers, Principal Investigators, and other employees responsible for equipment.
III. Procedure
The following steps represent the overall process:
Departing employee notifies their Department Chair and DPA of their pending departure, and that they are requesting permission to take capital equipment to a new institution.
The DPA contacts Property Control to request a list of capital equipment items associated with the departing employee.
Property Control provides a list of equipment to the DPA. The equipment list will include the asset tag number, description, acquisition date, acquisition cost, funding sources and percentages, net book value (NBV), etc.
The DPA provides the equipment list to the Departing Employee, Department Chair, Dean/Director/Designee for review.
The Department Chair, and/or Dean/Director/Designee determines that all eligibility criteria are met:
The departure of equipment does not adversely affect instruction needs, graduate students or other research remaining at UW-Madison.
Formal resignation has been submitted by the departing employee and received by the Department Chair/Supervisor.
The departing employee was a permanent University employee, including faculty and academic staff roles. Student employees and zero-dollar appointees are excluded from this definition.
The departing employee’s role was related to at least one element of the University’s mission (instruction, research, or public service). This excludes administrative roles.
The capital equipment will be used for the same purpose at the new institution
The new institution is another institution of higher education or academic research. Equipment cannot be transferred to a for-profit businesses or start-up business.
The Department Chair and/or Dean/Director/Designee approves one or more items on the equipment list to be either transferred and/or sold to the new institution. The criteria listed for a transfer and a sale of equipment must be used to determine the treatment of each piece of equipment.
If the equipment meets the criteria to sell equipment, the departing employee’s Department Chair and/or Dean/Director/Designee has the final authority to negotiate and determine the sale price of the equipment with new institution.
Along with the DPA, the Department Chair, and Dean/Director/Designee, completes Form 110.11F Request for Authorization to Transfer/Sell University Property to a Departing Employee’s New Institution.
Signatures from the Departing Employee, Department Chair, and Dean/Director/Designee represent an agreement to release the equipment to the departing employee’s new institution and attests that the equipment does not contain sensitive data, UW Licenses, or UW Proprietary Software. (Examples of sensitive data: UW-504 – Data Classification Policy.)
After Form 110.11F Request for Authorization to Transfer/Sell University Property to a Departing Employee’s New Institution is completed, the DPA sends the form to Property Control along with the approved list of equipment to be transferred and/or sold to the new institution.
Note: In cases when equipment is to be sold and the selling price exceeds the NBV, please include a justification along with the request form.
Property Control and Research and Sponsored Programs (RSP) reviews the terms and conditions of the grant or contract for restrictions that would prevent the departing employee from taking the equipment.
If restrictions do not exist, Property Control will prepare an Agreement for Transfer/Sale of University Property and will send it, along with a copy of the approved equipment list, to the authorized official at the new institution for signature. Property Control will notify the Departing Employee, Department Chair, DPA and/or Dean/Division/Designee of the action.
If equipment is being sold to the new institution, the sale price will be included in the agreement.
The authorized official of the new institution accepts the terms of the agreement, signs the Agreement for Transfer/Sale of University Property and returns it to Property Control.
Note that the new institution accepts responsibility for all packing, shipping, and insurance costs for the equipment.
Upon receiving the signed Agreement for Transfer/Sale of University Property, Property Control will authorize the departing employee to take or ship the equipment. Property Control will update the asset management system to show retirement of the asset. Property Control will also provide the Departing Employee, DPA, Department Chair and Dean/Director/Designee a copy of the fully-signed agreement.
The DPA or designee must remove and discard the asset barcode tag(s) prior to shipping the equipment.
If equipment was sold to the new institution, the Departing Employee’s UW department financial staff should prepare and send an invoice, along with a copy of the Agreement for Transfer/Sale of University Property, to collect on the sale price of the equipment. The invoice should reference the capital equipment description, amount billed, UW department financial contact, along with an appropriate funding string to which the sales amount should be credited. If necessary, check with your Deans Office for guidance on the appropriate funding string to use. The UW System Chart of Accounts revenue code specifically approved for this type of transaction is account code 9939.
IV. Contact roles and responsibilities
wdt_ID
Departing Employee Request
Departing Employee
DPA
Dept Chair/ Dept Admin
RSP
Property Control
New Institution
Dept Fin Staff
1
1) Notifies Department Chair and DPA of departure and request to take capital equipment to a new institution.
X
2
2) Request equipment list from Property Control.
X
3
3) Provide list of equipment with NBV to DPA.
X
4
4) Provide list of equipment to Department Chair, Dean/Director/Designee and Departing Employee.
X
5
5) Confirm all eligibility criteria are met
X
6
6) Determine and approve equipment based on criteria related to transferring and/or selling equipment. Sale price determined when applicable.
X (provides input)
X
7
7) Complete Form 110.11F Request for Authorization to Transfer/Sell University Property to a Departing Employee’s New Institution.
X (provides input)
X
X (provides input)
8
8) Form 110.11F Request for Authorization to Transfer/Sell University Property to a Departing Employee’s New Institution sent to Property Control with list of capital equipment approved for transfer/sale.
X
X (provides input)
9
9) Funding sources and terms reviewed.
X
X
10
10) Prepare Agreement for Transfer/Sale of University Property and send to departing employee’s new institution.
X
11
11) Return signed Agreement for Transfer/Sale of University Property to Property Control.
X
12
12) Send notice to authorize shipment of equipment and update asset management system.
X
13
13) Prior to shipment, remove asset barcode tag(s) from equipment.
X
14
14) If equipment was sold, prepare invoice and send to Departing Employee’s new institution.
I. Procedure statement
II. Who is affected by this procedure
III. Procedure
IV. Contact roles and responsibilities
V. Definitions
VI. Related references
VII. Revisions
I. Procedure statement
To maintain control and assign responsibility for capital equipment removed from University premises, Property Control must authorize the loan of, and track assets. Completion of Asset Loan Request Form is required when equipment is to be borrowed for more than 30 days and will reside at a location not directly associated with the University. Property Control must authorize loans before equipment is removed from campus. Risk Management should also be notified for executing appropriate insurance and risk management activities.
Equipment may be loaned for a specified period (maximum five years), and the borrower must sign an Agreement for Loan of University Property within 30 days prior to the loan.
Property Control will monitor loaned equipment aging and will work with the Department Property Administrator (DPA) 30 days prior to the end of the agreement term to determine and formalize if the loan will be renewed or ended. Property Control will require a new agreement to extend beyond one year.
II. Who is affected by this procedure
Departmental staff members, Responsible Employee
Department Property Administrator (DPA)
Property Control
Borrowing institution or entity
Risk Management
III. Procedure
The following steps represent the overall process:
The employee responsible for the equipment notifies the DPA for guidance on the capital equipment loan procedures, as well as contacts Risk Management to inquire about insurance guidelines.
The DPA works with the Responsible Employee to gather the terms of the loan (i.e. the duration of the loan) and contact information for the borrowing institution or entity to which the capital equipment will be loaned.
The DPA completes the Form 110.10F Asset Loan Request Form and obtains signatures of approval from Department Chair/Dean/Director. The form is submitted to Property Control.
Property Control reviews the request and the funding sources of the equipment. If funding sources include sponsored funding, Property Control will verify with RSP to confirm if equipment can be loaned to another institution or entity. Equipment that is owned by a sponsor (e.g. title vests with Federal agency) cannot be loaned to another institution or entity without written consent from the sponsor.
Property Control authorizes the equipment loan and notifies the DPA, the Responsible Employee, and Department Chair/Dean/Director.
Property Control prepares an Agreement for Loan of University Property, which is to be signed by the borrowing institution. The agreement should be signed by the borrowing institution or entity at least 30 days prior to the loan.
Property Control will work with the DPA, Responsible Employee and Department Administrators to coordinate and obtain sign-off from the borrowing institution. The responsible party for obtaining approval is the individual negotiating the loan of equipment to the borrowing institution. This is most often the Principal Investigator, but may be other parties. Property Control intends to team with the DPA to ensure appropriate personnel approve the loan prior to allowing the equipment to be borrowed.
Upon receipt of signed Agreement for Loan of University Property, Property Control provides a signature and sends a copy of the fully executed loan agreement to the DPA and borrowing institution or entity.
Property Control notifies the DPA and Responsible Employee that loan agreement is signed and the equipment can be shipped to the borrowing institution or entity.
Property Control updates the asset management system to indicate that the equipment has been loaned to another institution or entity.
The DPA, Building Manager and/or Responsible Employee coordinate shipment of capital equipment to the borrowing institution or entity.
When the loan agreement approaches its end date, Property Control will contact the DPA to initiate conversations to determine whether an extension of the loan agreement is necessary.
IV. Contact roles and responsibilities
wdt_ID
Asset Loan Agreement
Responsible Employee
DPA
Dept Chair/ Dept Admin
Property Control
Bldg Mgr
1
1) Notify DPA and Risk Management of loan request.
X
2
2) Gather terms of loan and contact information for borrowing institution.
X
X
3
3) Complete Form 110.10F Asset Loan Request Form, obtain signatures and submit to Property Control.
X
X (signs request form)
4
4) Loan request is reviewed for approval.
X
5
5) Once approved, notification is sent to DPA, Responsible Employee and Department Chair/Dean/Director/Designee.
X (Prop Cont may need assistance)
X (Prop Cont may need assistance)
X
6
6) Agreement for Loan of University Property is prepared and sent to borrowing institution or entity.
X
7
7) A copy of the fully executed loan agreement is sent to DPA and the borrowing institution.
X
8
8) Notice to proceed with shipment of equipment is sent to DPA and Responsible Employee.
X
9
9) Update asset management system.
X
10
10) Coordinate shipment of the equipment to the borrowing institution or entity.
X
X
X
X
11
11) When loan agreement approaches end date, contact DPA to determine next step.
Related Policy:UW-3010 Gift Funds Policy Functional Owner: Financial Information Management, Business Services Contact: Gift Management Accountant, Gift Management Mailbox: giftmgt@bussvc.wisc.edu
Contents
I. Procedure statement
II. Who is affected by this procedure
III. Procedure
IV. Contact roles and responsibilities
V. Definitions
VI. Related references
VII. Revisions
I. Procedure statement
This procedure describes the processes for accessing and expending funds deposited in Wisconsin Foundation and Alumni Association (WFAA) funds, and provides examples of typically appropriate and typically inappropriate payments from gift funds.
II. Who is affected by this procedure
All UW–Madison employees using gift funds. Campus and Divisional Leadership have a formal responsibility to ensure individuals within their Division(s) using gift funds are fully informed and understand gift use procedures.
III. Procedure
The following steps represent the overall process for receiving and processing gifts from the WFAA:
Requests to draw funds from WFAA accounts to the University in payment of expenditures must be made on a WFAA Check Request Form available on the WFAA Advancement Resources web site for those with authorized access.
A Gift Deposit Routing Form must be completed when requesting funds from the WFAA to be deposited into a Fund 233 project. See Section VII of this procedure for further details related to the forms and routing process.
Each form must be printed and routed for signature through the appropriate school/college/auxiliary Dean’s/Director’s Office before it goes to the WFAA.
Both forms are submitted to WFAA for review and approval.
It is recognized that there are events held with the sole purpose of fundraisings, such as an alumni dinner or golf outing.
For fundraising events held, University Divisions are to develop a budget of event proceeds and expenses in advance of the event, and share that information with their financial leadership personnel and the applicable development personnel at the WFAA. (Event proceeds in this context refers to any fees charged for participation in the event. It does not include the estimated donation revenue to be generated by the event. )
The Division will set up a registration merchant account with the WFAA. The event registration will be coordinated and arranged by the WFAA recognizing the registration portal can include the option for the participant to provide additional donor gift funds when paying for the registration fee.
Event expenses that are incurred and allowed to be paid using University funds will be charged to University gift funding projects (e.g. a specific 233 or 533 (Athletics) project) by the Division. Event expenses incurred that are not allowed to be paid using University funds will be submitted to the WFAA for payment to the extent allowable under WFAA policies.
Following the event, the Division will complete and submit a WFAA Check Request Form and a University Gift Deposit Routing Form, and post funds received to the University 233/533 project to cover the expenses charged.
Only in accordance with UW-Madison and WFAA policies and procedures may the WFAA be requested to pay funds directly to a vendor for a University program or purpose. (See table below for examples of appropriate and inappropriate expenditures.)
In such cases, the WFAA will make payment based on a request from the University custodian of the related WFAA fund from which disbursement is requested. This would generally be a School or College Principal Investigator, Department Chair, or Administrative Director.
Requests require appropriate Dean or Director’s office approval prior to submitting the request for payment to the WFAA.
If payment is for the School/College Dean or Auxiliary Director, request for payment requires Chancellor or VCFA office approval, respectively.
The University Division requesting the payment is responsible for maintaining adequate justification of why University funds could not be used to pay for the expenditure. Such justification as well as supporting documentation are considered open University records, subject to public inspection as provided in the Wisconsin Public Records Law. The level of documentation held by the initiator of the payment should be similar to that required for payment through regular University channels.
This listing is illustrative; it is not intended to be an exhaustive list of all potential University operational situations.
Appropriate Expenditures Made by the Foundation These expenses require pre-approval prior to incurring the expense.
Travel reimbursements exceeding University rates, to the extent they cannot be processed by the University with appropriate explanations. (See Hosted meal in excess of University limits visit UW-3039 Business Meals.)
Faculty and graduate student candidate hosting cost when not allowable using University funds.
Moving expenses for new employees allowable under IRS rules and regulations that are not allowable using University funds.
Costs related to school or college board of visitors meetings that are not allowable using University funds.
Cost of alcohol served at events at which other costs of the event are allowable using University funds.
Inappropriate Expenditures the Foundation Will Not Pay
Payment for goods or services to avoid the state bidding process.
Reimbursing travel expenses of employees not in compliance with University policies and procedures (i.e. University employee travel was not booked using the University travel vendor, Fox World Travel or Concur.)
Paying for University events, which are merely social, such as parties, unless the Foundation fund to be used to pay for the event has explicit donor documentation that the funds are intended for such a purpose.
If there is a University business purpose related to the instruction, research and/or service mission of the University, the expenses can generally be paid by the University.
Paying for retirement dinners or flowers for funerals of former department employees, unless the Foundation fund or donor documentation is explicit that the donor intended the funds to be used for such purposes.
Paying for retirement gifts.
Paying for parking tickets of visitors and employees.
Making donations or memorial gifts to non-profit organizations.
Paying for upgrades to first class travel where such upgrades are not allowable under University travel regulations.
Payment for significant others/guests’ attendance at events lacking a legitimate business purpose. See Policy 202 for more information.
Payments to University employees for services, including awards or honoraria. These must be made through the University’s payroll system.
If the University can process the items being requested for payment under State procurement and travel rules, they must be processed through the University.
Requests by the University for the WFAA to purchase goods and services for University use will be rejected if the goods and services can be obtained through the State purchasing process.
Requests for employee travel expense reimbursement will be rejected if the expenses are reimbursable under University travel policies.
The WFAA will not make payments directly to UW employees for services or honoraria, or make payment directly to recipients for scholarships, fellowships, prizes and similar awards. Such payments must be made through the University.
Some direct payments made by the WFAA will result in taxable income to the recipient.
As required by the Internal Revenue Code, the WFAA will report certain payments to recipients on forms 1099-MISC. In certain cases, the IRS rules deem the University the payer of amounts disbursed by the WFAA. In these cases, payments made by the WFAA will be combined with the payments made by the University for tax reporting purposes.
The parties requesting and approving reimbursement or direct payment must be comfortable that the reimbursement or payment was necessary to support University programs and in compliance with applicable policies and procedures such that they would be comfortable talking to the donor or the press about the reimbursement or payment.
Any requests for payments from the WFAA, whether for transfer to a University account or a direct payment request, which are not clearly appropriate under Section IV of this Procedure will be referred back to the requesting Dean or Director’s Office, and may not be resubmitted for payment without authorization from the Vice Chancellor for Finance and Administration (VCFA) (or designee).
Any resubmission must include supporting documentation justifying why the submission requires reconsideration.
In addition to approval of the Divisional Dean or Director (or his/her financial designee) and the VCFA (or designee), the VCFA (or designee) may require that a resubmission request undergo University legal review and/or review and approval by the Foundation President (or designee)
V. Definitions
Donor: An individual or organization who donates either money or a tangible item to UW-Madison.
Donation: Money or a tangible item given to support the University’s mission of academics, research or outreach.
Quid pro quo: A transaction that is partly a gift and partly a purchase of goods and/or services.
UW-Madison Gift Deposit Routing Form: A required form used in routing payments to be deposited into a Gift Fund appropriation (Fund 233/533).
Related Policy:Gift Funds Policy Functional Owner: Financial Information Management, Business Services Contact: Gift Management Accountant, Gift Management Mailbox: giftmgt@bussvc.wisc.edu
Contents
I. Procedure statement
II. Who is Affected by this Procedure
III. Procedure
IV. Contact Roles and Responsibilities
V. Definitions
VI. Related References
VII. Revisions
I. Procedure statement
The Wisconsin Foundation and Alumni Association (WFAA) accepts only those gifts that meet all the criteria detailed in the Gift Funds Policy.
II. Who is affected by this procedure
All UW- Madison employees accepting and receiving gift funds. Campus and Divisional Leadership have a formal responsibility to ensure individuals within their Division(s) accepting gift funds are fully informed and understand gift acceptance procedures.
III. Procedure
The following steps represent the overall process for receiving and processing gifts:
Donors who wish to make gifts to the WFAA should be advised to make the check payable to “UW Foundation” or to make payment to the WFAA through the WFAA website. This is done by visiting The Support UW website and clicking on “Give Now” or by contacting the WFAA at uwf@supportuw.org. If the donor would like to make a donation to WFAA via ACH or wire, contact the WFAA gift processing team at help@uwadvancement.org for assistance.
It is acceptable to deposit checks payable to other names with the WFAA if there is clear documentation that the donor intended the check to be a gift to the WFAA or deposited into a fund at the WFAA. That documentation must be forwarded to the WFAA with the check.
A University of Wisconsin Foundation Gift Deposit Form must be forwarded with the checks when they are sent to the WFAA. This form is available on the WFAA’s Advancement Resources web site for those with authorized access.
This form must be printed and routed for signature through the appropriate school/college/auxiliary Dean’s/Director’s Office before it goes to the WFAA.
Where correspondence with the donor will be useful in documenting the intent to give the gift, the correspondence should be attached to the form. Questions regarding the deposit of WFAA checks should be directed to the WFAA’s gift processing team at help@uwadvancement.org.
All gifts made directly to the University and other receipts that will not be routed to WFAA for deposit must be deposited to University accounts. (Example: check received from another University for collaboration on a project):
For checks, complete a UW-Madison Gift Deposit Routing Form, and route to your Dean’s office for processing. Appropriate University deposit procedures should be followed to deposit such funds (Refer to UW-3029 Revenue Accounting Policy).
Questions regarding deposit of gift funds directly to University accounts should be directed to Accounting Services, Gift Management at giftmgt@bussvc.wisc.edu.
Donors may also provide the University with goods/services as in-kind donations. All tangible property gifts received by the University from a donor are to be reported on a Gift in Kind Routing Form. See the Gift in Kind Policy 130 and Procedure 130.1 for more information.
Whether checks are payable to the University or the WFAA, good internal control procedures must be followed. These include:
Restrictively endorsing checks “for deposit only” immediately upon receipt.
Depositing checks within five days of receipt.
Logging and tracking receipts and verifying posting following processing.
Storing un-deposited funds in a locked desk or safe overnight.
Segregating duties of handling and depositing physical checks with separately assigned review and monitoring duties.
In accordance with the IRS regulations and good donor relationships, all gifts must be acknowledged in writing. The organization that is the recipient of the gift is responsible for providing the donor with the gift acknowledgment (i.e., gifts made to the WFAA must be acknowledged by the WFAA, and gifts made directly to the University must be acknowledged by the University). A sample gift acknowledgment letter can be found on the Gift Management website.
In situations where the donor makes a gift and receives any goods or services in exchange for the gift, such as an alumni dinner or golf outing, the gift is classified by the IRS as a quid pro quo transaction that is partly a gift and partly the purchase of goods and/or services. All solicitation materials produced by the University or the WFAA for donations involving quid pro quo are required to contain information about the tax effect of the contribution as well as a reasonable estimate of the value of the goods and services being delivered to the donor in exchange for the gift.
For joint University-WFAA fundraising activities, work with WFAA personnel in any situation where gifts involve an element of quid pro quo before solicitation materials are distributed.
University Divisions are to develop a budget of fee for service revenues and expenses in advance of the event and to share that information with their financial leadership personnel and the applicable development personnel at the WFAA.
V. Definitions
Donor: An individual or organization who donates either money or a tangible item to UW-Madison.
Donation: Money or a tangible item given to support the University’s mission of academics, research or outreach.
Gift acknowledgment: Letter provided to the donor that acts as the donor’s tax receipt.
Quid pro quo: A transaction that is partly a gift and partly a purchase of goods and/or services.
UW-Madison Gift Deposit Routing Form: A required form used in routing payments to be deposited into a Gift Fund appropriation (Fund 233/533).
I. Procedure statement
II. Who is affected by this procedure
III. Procedure
IV. Contact roles and responsibilities
V. Definitions
VI. Revisions
I. Procedure statement
When capital equipment is transferred to another UW–Madison department it is a change in custody. This type of occurrence is not reported as a disposal because the equipment is still in use by another department. Revenue is not generated in the transfer of equipment to another department. If the current custody department has expenses related to the transfer (e.g. packing/unpacking, setting up, re-calibrating, training, etc.) to the new department, the reasonable costs for these expenses may be transferred to the new department.
To record a change of custody between UW–Madison departments, departments must notify Property Control in writing via email. The department initiating the change must indicate the new department, responsible employee, and location for the piece of equipment. Property Control will update the records in the asset management system.
II. Who is affected by this procedure
Department personnel – both current and future custody departments
Department Property Administrator (DPA) – both current and future custody departments
Property Control
Research and Sponsored Programs (depending on original funding source)
III. Procedure
The following steps represent the overall process:
The responsible employee sends written notice to the DPA requesting the change in custody of equipment. The email should indicate the intended recipients name and department.
The DPA forwards the request, via email, to the Department/Division Chair and Property Control for review and authorization of the change in custody.
If the equipment is funded by 133/144 funds, Property Control will contact the Office of Research and Sponsored Programs to verify change of custody is acceptable.
Property Control will notify both the current and new departments and DPAs of approval.
For costs related to packing/unpacking, setting up, re-calibrating, training, etc., the department may initiate cost transfer journal entries or internal billing to recover costs of the change in custody. Capital account codes in the 46xx series are not authorized for these cost transfers. Example of accounting for the capital equipment department transfer: EXAMPLE: Cost transfer (ALLOWABLE)
Debit: Transfer Cost to the New Custodial Department $XXXX
Credit: Transfer Cost from the Prior Custodial Department $XXXX
Capital account code, series 46xx, is not permitted for the allowable cost transfers. Departments may recover direct costs incurred to move equipment to a new custodial department (such as decommissioning, transportation, set-up, or recalibration). Direct costs may include, for example, an average hourly rate for a staff member multiplied by the number of hours it took to transport an item. Direct costs should not include administrative overhead. Direct costs should be supported by reasonable estimate and coded to an expense account.EXAMPLE: Internal sale (NOT ALLOWABLE)
Debit: Internal Bill to the New Custodial Department $XXXX
Credit: Internal Sale for the Prior Custodial Department $XXXX
It is NOT ALLOWABLE for departments to “sell” equipment in their custody to other departments by processing an internal billing. Such transactions lack economic substance because they do not represent arm’s length transactions between independent parties. UNDER NO CIRCUMSTANCES may a change in custody be recorded as a revenue transaction in the ledger.
Property Control will update the records in the asset management system.
IV. Contact roles and responsibilities
wdt_ID
Change of Custody to another Department
Responsible Employee
DPA
Dept Chair/ Dept Admin
Property Control
RSP
1
1) Notify DPA, in writing, of the request to transfer custody. The email should include the intended recipients name and department.
X
2
2) Forward the notice to the Property Control Office and Department/Division for review and authorization of the change in custody.
X
3
3) Contact RSP to verify change is custody is acceptable.
X
X
4
4) Notify the current and new departments and DPA of approval.
X
5
5) If necessary, initiate cost transfers journal entries or internal billing to recover costs of the change in custody.
X
6
6) Update the records in the asset management system.
I. Procedure statement
II. Who is affected by this procedure
III. Procedure
IV. Contact roles and responsibilities
V. Definitions
VI. Related references
VII. Revisions
I. Procedure statement
The Department Property Administrator (DPA) is responsible for notifying Property Control of capital asset location changes. A move to a different room or building, but staying in the custody of the same department, is considered a location change. See Procedure 3008.9 – Change of Custody to another Department if the location change is due to a permanent change in department custody.
II. Who is affected by this procedure
DPA
Department employees
Property Control
III. Procedure
The following steps represent the overall process:
The responsible employee or user of the capital equipment is responsible for notifying the DPA of a location change (e.g. room and/or building) of capital equipment through written notice via email.
The DPA completes the top-half of the Property Transaction Form with the information related to the change in room and/or building location of the capital equipment. After the information is entered, the DPA clicks on the “Submit” button located on the bottom of the form. The form is electronically routed to the Property Control email box.
The Property Control Office updates the records in the asset management system.
IV. Contact roles and responsibilities
wdt_ID
Location/Room Changes
Responsible Employee
DPA
Property Control
1
1) Notify DPA of a change in room and/or building location of a capital equipment asset.
X
2
2) Complete the Property Transaction Form and submit.
X
3
3) Update the building/room location in the asset management system.
I. Procedure statement
II. Who is affected by this procedure
III. Procedure
IV. Contact roles and responsibilities
V. Definitions
VI. Related references
VII. Revisions
I. Procedure statement
To maintain a controlled environment, accurate records, and fulfill contractual obligations, departments must receive written approval from Property Control prior to disposing of capital equipment. Property Control must record how equipment is disposed/retired. Property Control cannot delete item records, but must assign a code to indicate a retirement reason. Property Control has defined 10 retirement reasons, each of which has a corresponding code.
The retirement reasons fall into two general categories: accountable (pro-active decision made by department to retire equipment) and unaccountable (no decision made by department to retire equipment), in addition to potential recordkeeping reasons (correcting a record error).
Items will be transferred to a departing employee’s new institution:
Transfer with ongoing sponsored project.
Formal category is Donated to External Group
Sell or move at no cost to new institution.
Formal category is Retirement by Sale
II. Who is affected by this procedure
This procedure applies to all UW–Madison departments. It should be understood by all users of, or employees responsible for capital equipment, Department Administrators, DPAs, Department Chairs, Directors, Deans, Chief Financial Officers, and other employees responsible for capital equipment.
III. Procedure
The following steps represent the overall process:
Prior to disposing of capital equipment, the responsible employee or any other department employee in custody of the equipment must notify the Department Property Administrator (DPA).
Accountable disposition reasons (decision by department to retire equipment)
Items are defined as surplus when it a) does not function any more, b) is obsolete, c) is not useful any more, or d) is not needed by the Department in the foreseeable future.
Items will be traded for credit on purchase of a like item: Departments may trade in equipment for the purchase, not leasing, of like items (e.g. lab equipment for lab equipment). Departments should notify Division of Business Services Purchasing Services of their intent to trade equipment during the requisition process, as well as should work with Purchasing prior to negotiating any new purchase or trade-in allowance. In addition, Form 110.7F Capital Equipment Disposition Request must be submitted to address the records of the current asset and confirm there are no contractual restrictions on the equipment that must be addressed before committing to trade-in. Please note the following list of exceptions for trade-ins:
UW-titled property cannot be traded on the purchase of sponsor-titled property.
Sponsor-titled property cannot be traded in without prior authorization from the sponsor, RSP and Property Control.
Departmental vehicles cannot be traded in.
Items will be cannibalized for parts: Department would like to dismantle an asset and reuse parts for another asset. If equipment is sponsor-titled, approval must be obtained from the sponsor prior to being dismantled. The department must follow standard University surplus procedures for any unused parts not kept by the department.
Items will be returned to a vendor: Departments may return equipment to a vendor for replacement or solely returned (e.g. defective, replaced under warranty or returned because equipment does not perform as vendor claimed). When an item is being replaced with the same model, a new asset barcode tag will be issued for the same inventory record, and the DPA will need to update the serial number information upon arrival of the replacement equipment. If the item is not being replaced but returned for credit, the DPA should notify Property Control, who will retire the asset and make the appropriate financial record adjustments.
Items will be delivered to a sponsor per contract terms: Departments may deliver assets constructed in-house to a sponsor per contractual terms.
Unaccountable disposition reasons (no decision made)
Items have been lost: Departments may learn that an asset is missing but there is no evidence of theft. Most commonly, this occurs after a DPA inventories equipment. Assets should only be reported as lost after an exhaustive effort has been made to find them (refer to Procedure 110.6 Physical Inventory).
Items have been stolen: Departments may learn that an asset is stolen or presumed stolen. If so, the department must report the theft/presumed theft to the local Police Department (most often UWPD) and have their DPA submit the disposition request to Property Control. Property Control will provide the information to Risk Management.
Items have been destroyed: Departments may learn that an asset has been destroyed due to fire, flood, vandalism, etc. If so, the department should notify both Property Control and UW-Madison Risk Management, which is responsible for insurance claims.
Recordkeeping reasons
Items should be removed from records because Property Control should not have entered them: Departments may learn of an asset that should not have been entered into records by Property Control. (e.g. non-capital item such as lab supplies, or permanent fixture should that have been capitalized as part of a building.).
The DPA and the Dean, Director or designee sign the Capital Equipment Disposition Request.
The DPA sends the completed request form to Property Control.
Property Control will review the request for:
Completeness.
Appropriate signatures. NOTE: Signatures do not guarantee Property Control will authorize disposition, but indicates the department supports the disposition request.
Potential restrictions on disposition. If equipment is grant-funded, Property Control will request UW-Madison Research and Sponsored Programs to confirm whether contractual restrictions exist. If equipment is reported as hazardous, Property Control will request UW-Madison Environment, Health and Safety confirm whether safety restrictions exist.
If no restrictions exist, Property Control will authorize disposal and notify DPA in writing
DPA notifies the person requesting the asset’s disposition that the request is approved and that the asset barcode tag can be removed.
Property Control will document the retirement reason in the asset management system. Depending on the retirement reason, Property Control may forward the completed request:
to SWAP, when items have become surplus to the department.
to Purchasing Services, if the item will be traded in for credit on purchase of a like item or returned to vendor.
to Risk Management, if the item has been destroyed.
For surplus dispositions, the DPA contacts SWAP by submitting a Surplus Request Form, which will assess the item’s suitability for resale.
If SWAP deems item suitable for re-sale, they will arrange pick-up and advise next steps with the DPA. If surplus items are not suitable for resale, SWAP advises DPA of alternative and acceptable options.
DPA’s are responsible for working with appropriate facilities personnel at their location to establish secure, clearly distinguishable capital equipment pickup areas so that SWAP/FP&M personnel can easily determine what capital equipment items are to be picked up.
Property Control notifies the divisional Chief Financial Officer of all unaccountable dispositions.
IV. Contact roles and responsibilities
wdt_ID
Equipment Disposition
Responsible Employee
DPA
Dept Chair/ Dept Admin
Property Control
RSP
SWAP
1
1) Prior to disposal, notify DPA of intent to dispose of capital equipment.
X
2
2) Complete Form 110.7F Capital Equipment Disposition Request.
X
3
3) Sign the form.
X
X
4
4) Send the completed form to Property Control.
X
5
5) Review the request. Confirm no restrictions exist on disposal.
X
X
6
6) If no restrictions exist, authorize disposal and notify DPA in writing.
X
7
7) Notify requestor that the accountable disposition may proceed, and remove the asset barcode tag
X
8
8) Indicate the retirement reason in the asset management system. Dispositions that included trade-ins, casualty lossesor identified as hazardous will beforwarded to Purchasing Services, Risk Management or EHS respectively.
X
9
9) If the item’s disposition was approved as “surplus”, contact SWAP for their assessment of suitability for re-sale.
X
10
10) If surplus items are suitable for SWAP resale, arrange pick-up and advise DPA. If surplus items are NOT suitable for resale, inform DPA of alternative and acceptable options.
X
11
11) Reviews losses. Use judgement to allow or disallow loss removal.
X (may be consulted)
X
12
12) Notify the divisional Chief Financial Officer of all unaccountable dispositions
I. Procedure statement
II. Who is affected by this procedure
III. Procedure
IV. Definitions
V. Revisions
I. Procedure statement
Periodically, Department Property Administrators (DPAs) must inventory capital equipment in their department’s custody. Property Control coordinates inventories, including scheduling, training, and providing capital equipment lists to facilitate the process. DPAs must oversee or supervise the work of employees who conduct inventories within their department. Employees who conduct inventories must verify items by direct sighting unless the items are off-campus, in which case an email from the responsible person is sufficient.
II. Who is affected by this procedure
This procedure applies to all UW–Madison departments. It should be understood by Department Managers, DPAs, Department Chairs, Directors, Deans, and employees responsible for equipment.
III. Procedure
The following steps represent the overall process of conducting a physical inventory and reconciliation:
Property Control schedules departmental inventories each fiscal year. Departmental inventories are spread out over the entire year skipping June and July due to fiscal year end. The selection criteria for annual inventories will follow UW System Administrative Policy 334.C.
Property Control will notify DPAs of upcoming inventories and propose an inventory timeline with a start and completion date at least one month in advance, with a copy to the divisional Chief Financial Officer.
If a proposed schedule or timeline is not feasible, DPAs can request to reschedule. Property Control will be as flexible as possible, recognizing the needs of all campus departments currently scheduled.
DPAs may delegate work to other employees (including student employees) so long as the DPA supervises the work. To inventory a department’s items, employees must:
Observe the item by direct sighting.
Document their observation of the item. Property Control will facilitate this documentation by providing a barcode scanner and/or capital equipment list.
If items are off-campus, employees must obtain written confirmation from the items’ responsible person indicating that the item is still intact, are in his or her custody, and identify/confirm present location.
If items are on loan to another institution as part of an active UW loan agreement, employees should indicate this. Loaned items are not subject to inventory.
Property Control coordinates inventories including training and providing equipment lists. Property Control uses a two-phase approach:
Initial search.
Final search for unaccounted items and subsequent reconciliation.
Property Control will first request that the DPA conducts an initial search. At the start of the initial search, Property Control provides a capital equipment list, barcode scanner, instruction sheet, and due date by which to return the scanner to Property Control.
During the initial search, DPAs or others supervised by the DPA use the scanner to verify items by scanning the tags affixed to equipment.
Upon the due date, Property Control collects the barcode scanner and loads results to update the capital equipment inventory records.
When items are not accounted for during the initial search (this outcome is expected at most departments due to volume and sharing equipment amongst researchers), Property Control will request the DPA conduct a final search for the unaccounted items. Property Control provides a printed unaccounted items listing. The DPA has 15 business days to complete the final search and return documentation to Property Control.
During the final search, DPAs or others supervised by the DPA should check items off the printed list by hand as they verify them.
If unaccounted items are determined to have been disposed of, DPAs should attempt to determine what happened to the item, completed a Disposition Request Form indicating the reasons for disposal, and attach supporting documentation to the disposition. (e.g. a pick-up request form if items disposed through SWAP).
If unaccounted items cannot be found and DPAs cannot determine what happened to them, DPAs should indicate the items as lost on the Disposition Request Form. A concerted effort should be made to find items before simply declaring the items “lost”. The Department will attest to these efforts on the Disposition Request Form by marking the attestation boxes under the lost section of the Disposition Form.
For all disposed items, DPAs must sign and obtain the signature of the Department Chair, Director, or designee on the Disposition Request Form. Two signatures are required to ensure adequate segregation of duties in authorizing removal of unaccounted items that were determined to have been disposed or lost during the final search.
Upon the due date, Property Control collects the completed unaccounted items listing.
Property Control reviews all losses to determine eligibility for removal from records as “lost”. Property Control may allow items to be removed as lost if:
they do not belong to a sponsor, and
they are more than three years old, based on the date of acquisition.
If Property Control determines that an item is ineligible to be removed from records as “lost”, Property Control will ask the department to notify the UW Police Department. Property Control will require a copy of an official police report before deactivating the item from records
Property Control will enter all results into records and provide a summary of department’s inventory results to the DPA, with a copy to the Department Chair/Administrator and divisional Chief Financial Officer.
June 18, 2018 – Reference UW System Administrative Policy 334.C for physical inventory selection criteria.
Jan. 19, 2021 – Changed Procedure Number to 3008.6 from 110.6
I. Procedure statement
II. Who is affected by this procedure
III. Procedure
IV. Contact roles and responsibilities
V. Definitions
VI. Related references
VII. Revisions
I. Procedure statement
UW–Madison departments must code upgrade purchases to 46XX accounts if all of the following criteria are met:
Upgrades must be made on existing capital equipment.
Upgrades must have aggregate costs of $5,000 or more, by themselves, regardless of the cost of the existing equipment being upgraded.
Upgrade must result in either:
A substantial increase in the functionality of equipment, which allows it to function or perform tasks that it was previously incapable of performing and extends the useful life of the asset.
A substantial increase in the efficiency of the equipment, that is, an increase in the level of service provided by the equipment without the ability to perform additional tasks, and extends the useful life of the asset.
If equipment vendor’s software upgrades cost $5,000 or more and result in in either of the above described gains, they can be a qualified capital equipment upgrade. For UW–Madison implementation simplicity and clarity under White House OMB Uniform Grant Guidance § 200.313 (d) – Equipment, repairs or maintenance costing $5,000 or more do not qualify as a capital equipment upgrade.
UW–Madison departments may obtain upgrades as either purchased complete or fabricated upgrades. If purchased complete, the qualified upgrade must reference the asset tag number of the existing capital equipment item. For fabricated upgrades, if the existing capital equipment was fabricated, departments cannot use the prior Asset ID number, they must obtain a new Asset ID number. As with other fabrications, departments must code parts and labor to the 4670 account and submit Capital Equipment Fabrication Request Form to obtain a new Asset ID number associated with the fabricated upgrade. The request form needs to reference the asset barcode tag number of the existing capital equipment item that is being upgraded. Property Control routinely reviews 46XX purchases. For upgrades, Property Control establishes a new inventory record associated with the existing inventory record. Property Control does not assign or mail a new asset barcode tag for upgrades if the existing capital equipment is already tagged.
II. Who is affected by this procedure
This procedure applies to all UW–Madison departments that upgrade existing capital equipment. It should be understood by department managers, DPAs, department purchasing and financial personnel, Department Chairs, Directors, Deans, CFOs and employees responsible for equipment in these departments.
III. Procedure
The following steps represent the overall process:
Department financial staff code upgrades to the 46XX accounts in the UW System Chart of Accounts and reference the asset barcode tag number on the existing equipment being upgraded.
Upgrades must be made on existing capital equipment.
Upgrades must have aggregate costs of $5,000 or more, by themselves, regardless of the cost of the existing equipment being upgraded.
Upgrade must result in either:
A substantial increase in the functionality of equipment which allows it to function or perform tasks that it was previously incapable of performing and extends the useful life of the asset.
A substantial increase in the efficiency of the equipment, that is, an increase in the level of service provided by the equipment without the ability to perform additional tasks and extends the useful life of the asset.
If an upgrade is to be fabricated over time, the department financial staff must code parts and labor to the 4670 account and the employee responsible for the fabricated upgrade must work with their DPA to submit Form 110.4F Capital Equipment Fabrication Request.
Property Control reviews capital purchases at the end of each month. For upgrades, Property Control attempts to find the asset barcode tag number of the existing equipment being upgraded. Property Control establishes a new inventory record associated with the existing inventory record.
If Property Control cannot obtain needed information, they will ask for more information from the DPA.
If Property Control believes an item does not meet the required criteria, they will not establish an inventory record. Instead, they will contact the DPA and department financial personnel to investigate. If it is confirmed as not meeting the criteria, Property Control will complete a journal entry to reassign the purchase to an appropriate general ledger account. Property Control will not establish inventory records for repair and maintenance costs (e.g. replacement parts) because these do not increase equipment value under Generally Accepted Accounting Principles.
If needed, Property Control will assign or mail a new asset barcode tag. Usually a new asset barcode tag is not needed for upgrades because the existing capital equipment being upgraded is already tagged.
1) Code qualified capital equipment upgrades to 46XX accounts, reference asset barcode tag number of existing equipment being upgraded.
X
2
2) If needed, complete Form 110.4F Capital Equipment Fabrication Request and send to Property Control.
X
X
3
3) Review 46XX activity and establish upgrade inventory record associated with existing inventory record.
X
4
4) If necessary, ask DPA for more information.
X
5
5) If necessary, ask department financial personnel for clarification of purchases coded to capital equipment. Complete journal entry to reassign purchases that do not meet upgrade criteria to appropriate account.
X
6
6) Assign and mail asset barcode tag to the DPA (only if existing equipment is not already tagged).
X
7
7) If Property Control issues an asset barcode tag, affix per Procedure 110.1.