3031.B Open and Manage a Merchant Account using an EMV Chip or Swipe Machine Procedure

Open a Merchant Account using an EMV Chip or Swipe Machine

Procedure #3031.B; Rev.: 2.12.20 (Effective January 1, 2020)
Related Policy: UW-3031 Credit Card Merchant Services and PCI Compliance Policy
Functional Owner: Cash Management, Business Services
Contact: PCI Mailbox: pci-help@bussvc.wisc.edu


Contents

  1. Procedure statement
  2. Who is affected by this procedure
  3. Procedure
  4. Definitions
  5. Related references
  6. Revisions

I. Procedure statement

The University of Wisconsin–Madison can accept payment card payments from customers to pay for goods and services in person. A payment card terminal is used for processing payments in-person or over-the-phone by a merchant at the point-of-interaction. In some cases, payments can be made via fax communication if proper security is in place and is properly documented.

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II. Who is affected by this procedure

This procedure applies to all UW–Madison departments that accept payment cards via payment card terminals. This procedure should be understood by all Divisional Business Representatives (DBRs), Site Managers, and Operators of the merchant accounts.

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III. Procedure

Below are the steps for opening a merchant account that uses an approved PCI P2PE or an approved EMV payment card terminal with no electronic cardholder data storage:

  1. Complete and submit the Card Merchant ID Request Form.
    1. The Divisional Business Representative (DBR) must approve the new merchant account.
      1. The DBR will receive an email upon completion of the Card Merchant ID Request Form. The DBR should then sign into the portal to approve the request.
    2. The DBR should determine which card brands the new merchant will accept.
      1. The standard set up for a new merchant account includes MasterCard, Visa, and Discover. Should the department decide to choose to accept American Express cards, an additional reconciliation and an additional connection is required.
  2. Cash Management will review and approve the submitted Card Merchant ID Request Form and contact the Site Manager to facilitate setting up Payments Insider access.
    1. Cash Management will provide information on payment card machines, including pricing information. Standalone payment card machines will ship directly from Elavon to the campus department. The cost of the new payment card machine will be charged directly to the merchant account.
    2. Each person who logs into Payments Insider for settlements and monthly statements is required to have a unique operator ID.
    3. Complex Point of Sale Systems will require additional PCI review and approval, signed contracts, and annual AoC documentation. Please contact pci-help@bussvc.wisc.edu for additional information.
  3. The PCI Site Manager is required to establish card handling procedures and a contingency plan for processing transactions should the primary system be unavailable. Once complete, these policies and procedures shall be submitted to Cash Management via email (pci-help@bussvc.wisc.edu).
  4. Cash Management will schedule a PCI site visit with the Site Manager once a Merchant ID (MID) is assigned by Elavon. During the PCI site visit, Cash Management will review the department business policies and procedures and assist with completing the Self-Assessment Questionnaire (SAQ).
  5. When the equipment is received, verify the machine has the correct address, merchant name, and MID on the machine.
  6. The PCI Site Manager is responsible to document:
    1. Make and model of the device(s)
    2. Physical location of the device(s)
    3. Device Serial number(s) or other methods of unique identification
    4. Physical inspection of each device periodically to detect tempering, skimming devices, and unauthorized substitution; Record your device information and inspection dates (charge.wisc.edu/users)
  7. Call Elavon Training at (866) 451-4007 to schedule a training on how to use the payment card terminal; training includes daily transactions and settlements. Note: the payment card terminal will not auto settle unless the terminal is turned on.
  8. Elavon terminals are factory shipped and contain incorrect information on each terminal. The merchant is required to add the correct information directly on the terminal containing this information:
    1. Equipment problems – Relationship Premier Services: (800) 725-1245
    2. Supplies such as thermal paper – Customer Service Center: (800) 725-1243
    3. Elavon Training: (866) 451-4007

Merchant account fees

Any fees associated with the acceptance of payment cards in a campus department will be charged to the related merchant on a monthly basis. These fees will post to WISER on the first of the month for the prior month’s transactions. Expenses include a monthly account maintenance fee of $5.00, Elavon processing fees of approximately 2.5% of each transaction, and in some cases $7.50 for chargeback fees (rare). American Express charges a fee of 2.1% of each transaction.

Requirements to manage a Merchant Account

  1. Annual completion of a Self-Assessment Questionnaire every calendar year.
  2. Participation in assessments of your environment by the designated PCI Compliance Analyst and/or Internal Security Assessor.
  3. Completion of mandatory annual payment card industry (PCI) merchant training.
  4. Maintaining documentation of employees who have participated in the annual training, with the ability to produce to the PCI Compliance Analyst upon request.
  5. In some instances, maintaining relationships with third party vendors for departmental specific payment applications, to receive compliance documentation from the vendors (AOCs, ASV Scans, etc.).
  6. Review annually the University Policies and Procedures related to the PCI compliance environment. UW-3031 Credit Card Merchant Services and PCI Compliance Policy
  7. Maintain accurate lists of individuals within your organization directly involved in the credit card processing environment.
  8. Reconcile the transactions from the merchant account to WISER, at a minimum, monthly.

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IV. Definitions

  • Campus Merchant Department – Manage the daily operations of the merchant account(s) and maintain PCI compliance.
  • Divisional Business Representative (DBR) – An individual within the divisional or dean’s office. This individual has the highest level of PCI responsibility, including approving the initial merchant account request and annually reviewing the SAQ as the executive officer.
  • Payments Insider – An online tool from Elavon, the credit card processor, which displays transaction activity and monthly statements.
  • Site Manager – This individual is the point of contact for the campus department merchant account(s) and should have influence to establish procedures for the day-to-day handling of payment cards to ensure compliance.

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V. Related references

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VI. Revisions

Procedure Number 3031.B
Date Approved January 1, 2020
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3031.B from 404.B
Sept. 14, 2023 – Small tweaks related to language change (terminal vs. machine) and added a section with what is needed to manage a merchant account.

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3031.A Open and Manage an Internet Storefront Merchant Account Procedure

Open an Internet Storefront Merchant Account Procedure

Procedure # 3031.A; Rev.: 2.12.20 (Effective January 1, 2020)
Related Policy: UW-3031 Payment Card Merchant Services and PCI Compliance Policy 
Functional Owner: Cash Management, Business Services
Contact: PCI Mailbox: pci-help@bussvc.wisc.edu


Contents

  1. Procedure statement
  2. Who is affected by this procedure
  3. Procedure
  4. Definitions
  5. Related references
  6. Revisions

I. Procedure statement

The University of Wisconsin–Madison can accept payment cards from customers to pay for goods and services. An Internet storefront is a method of accepting e-commerce payment transactions via a website.

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II. Who is affected by this procedure

This procedure applies to all UW–Madison departments that accept payment cards online. This procedure should be understood by all Divisional Business Representatives (DBRs), Site Managers, and Operators of the merchant accounts.

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III. Procedure

Below are the steps for opening an internet storefront merchant account:

  1. Complete and submit the Card Merchant ID Request Form.
    1. The DBR must approve the new merchant account.
      1. The DBR will receive an email upon completion of the Card Merchant ID Request Form. The DBR should then sign into the portal to approve the request.
    2. The DBR should determine which card brands the new merchant will accept.
      1. The standard set up for a new merchant account includes MasterCard, Visa, and Discover. Should the department decide to choose to accept American Express cards, an additional reconciliation and an additional connection is required.
  2. Cash Management will review the submitted Card Merchant ID Request Form and contact the Site Manager to facilitate setting up CASHNet and Merchant Connect.
    1. Each person that will log into CASHNet and Merchant Connect must have a unique operator ID.
    2. The department should provide a logo for the checkout page.
  3. The PCI Site Manager must establish card handling procedures and a contingency plan for processing transactions should the primary system be unavailable. Once complete, these policies and procedures shall be emailed to Cash Management (pci-help@bussvc.wisc.edu).
  4. The PCI Compliance Assistance Team and Elavon will review the website that is being used and ensure that it directs customers to CASHNet for payment. The hosting location must be determined and approved before the Merchant ID (MID) goes into production.
  5. Cash Management will schedule a PCI site visit with the Site Manager once a MID is assigned by Elavon. During the PCI site visit, Cash Management will review the department business policies and procedures and assist with completing the Self-Assessment Questionnaire (SAQ).
  6. Cash Management, or a specific DoIT staff, will activate the MID within CASHNet after the PCI site visit. Once the MID is in production in CASHNet, the storefront website may be used by customers.
  7. The PCI Site Manager must track all live websites in use that redirect to the payment page. Contact pci-help@bussvc.wisc.edu to close the websites that are no longer used for payment.

Merchant account fees

Any fees associated with the acceptance of payment cards in a campus department will be charged to the related merchant on a monthly basis. These fees can be seen in WISER/WISDM once they have been posted. Expenses may include a monthly account maintenance fee of $5.00, Elavon processing fees of approximately 2% of each transaction, and $7.50 for chargeback fees. American Express charges a fee of 2.1% of each transaction.

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IV. Definitions

  • Campus Merchant Department – Manage the daily operations of the merchant account(s) and maintain PCI compliance.
  • CASHNet – A third-party, e-commerce service provider contracted by the University of Wisconsin that is used to process credit card payments.
  • Divisional Business Representative (DBR) – An individual within the dean or divisional office. This individual has the highest level of PCI responsibility including approving the initial merchant account request and annually reviewing the SAQ as the executive officer.
  • Merchant Connect (MCP) – An online tool from Elavon, the credit card processor, which displays transaction activity and monthly statements.
  • Site Manager – This individual is the point of contact for the campus department merchant account(s) and should have influence to establish procedures for the day-to-day handling of payment cards to ensure compliance.

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V. Related references

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VI. Revisions

Procedure Number 3031.A
Date Approved January 1, 2020
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3031.A from 404.A

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3008.12 Delegation of Department Property Administrator (DPA) Procedure

Delegation of Department Property Administrator (DPA) Procedure

Procedure # 3008.12; Rev.: 0 (Effective January 1, 2017)
Related Policy: UW-3008 – Capital Equipment Policy
Functional Owner: Property Control, Business Services
Contact: Property Control Mailbox, property@bussvc.wisc.edu


Contents

  1. Procedure statement
  2. Who is affected by this procedure
  3. Procedure
  4. Contact roles and responsibilities
  5. Definitions
  6. 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.

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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.

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III. Procedure

The following steps represent the overall process for establishing a Department Property Administrator:

  1. 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.
  2. Property Control Office fills out the DPA Acceptance Agreement and emails a PDF to the designated DPA.
  3. Designated DPA signs the Acceptance Agreement and sends to the Division’s Chief Financial Officer for signature.
  4. Once CFO signs, they send the signed document to Property Control Office.
  5. Property Control Office signs the DPA Acceptance Agreement and emails a PDF of the fully signed agreement to the DPA and CFO.
  6. 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.
  7. The DPA completes the required capital equipment training sessions and achieves a passing score on the session evaluation.
  8. 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 A.

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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. X X

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V. Definitions

Capital Equipment Definitions (PDF)

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VI. Revisions

Procedure Number 3008.12
Date Approved January 1, 2018
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3008.12 from 110.12

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3008.11 Departing Employee Request to Take Capital Equipment to a New Institution Procedure

Departing Employee Request to take Capital Equipment to a New Institution Procedure

Procedure # 3008.11; Rev.: 0 (Effective January 1, 2017
Related Policy: UW-3008 – Capital Equipment Policy
Functional Owner: Property Control, Business Services
Contact: Property Control Mailbox, property@bussvc.wisc.edu


Contents

  1. Procedure statement
  2. Who is affected by this procedure
  3. Procedure
  4. Contact roles and responsibilities
  5. Definitions
  6. Related references
  7. 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.

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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.

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III. Procedure

The following steps represent the overall process:

  1. 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.
  2. The DPA contacts Property Control to request a list of capital equipment items associated with the departing employee.
  3. 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.
  4. The DPA provides the equipment list to the Departing Employee, Department Chair, Dean/Director/Designee for review.
  5. The Department Chair, and/or Dean/Director/Designee determines that all eligibility criteria are met:
    1. The departure of equipment does not adversely affect instruction needs, graduate students or other research remaining at UW-Madison.
    2. Formal resignation has been submitted by the departing employee and received by the Department Chair/Supervisor.
    3. 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.
    4. 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.
    5. The capital equipment will be used for the same purpose at the new institution
    6. 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.
    7. Equipment does not contain any UW-Licenses, UW-Proprietary Software, nor any sensitive data (UW-504 – Data Classification Policy).
  6. 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.
    1. 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.
  7. 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.
    1. 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.)
  8. 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.
    1. 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.
  9. 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.
  10. 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.
    1. If equipment is being sold to the new institution, the sale price will be included in the agreement.
  11. 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.
    1. Note that the new institution accepts responsibility for all packing, shipping, and insurance costs for the equipment.
  12. 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.
  13. The DPA or designee must remove and discard the asset barcode tag(s) prior to shipping the equipment.
  14. 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.

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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. X (provides input) X

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V. Definitions

Capital Equipment Definitions (PDF)

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VI. Related references

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VII. Revisions

Procedure Number 3008.11
Date Approved January, 1, 2017
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3008-11 from 110.11

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3008.10 Asset Loan Agreement Procedure

Asset Loan Agreement Procedure

Procedure # 3008.10; Rev.: 0 (Effective January 1, 2017)
Related Policy: UW-3008 Capital Equipment
Functional Owner: Property Control, Business Services
Contact: Property Control Mailbox, property@bussvc.wisc.edu


Contents

  1. Procedure statement
  2. Who is affected by this procedure
  3. Procedure
  4. Contact roles and responsibilities
  5. Definitions
  6. Related references
  7. 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.

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II. Who is affected by this procedure

  • Departmental staff members, Responsible Employee
  • Department Property Administrator (DPA)
  • Property Control
  • Borrowing institution or entity
  • Risk Management

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III. Procedure

The following steps represent the overall process:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. Property Control authorizes the equipment loan and notifies the DPA, the Responsible Employee, and Department Chair/Dean/Director.
  6. 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.
  7. 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.
  8. 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.
  9. Property Control updates the asset management system to indicate that the equipment has been loaned to another institution or entity.
  10. The DPA, Building Manager and/or Responsible Employee coordinate shipment of capital equipment to the borrowing institution or entity.
  11. 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.

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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. X

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V. Definitions

Capital Equipment Definitions (PDF)

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VI. Related references

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VII. Revisions

Procedure Number 3008.10
Date Approved January 1, 2017
Revision Dates Sept. 12, 2018 – Updated Form 110.10F
Jan. 19, 2021 – Changed Procedure Number to 3009.10 from 110.10

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3010.2 Use of Gift Funds Procedure

Use of Gift Funds Procedure

Use of Gift Funds Procedure
Procedure # 131.2
Rev.: 0
Effective Date: December 12, 2017

Download 3010.2 Use of Gift Funds Procedure (PDF)

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:

  1. 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.
    1. 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.
  1. 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.
    1. Both forms are submitted to WFAA for review and approval.
  1. It is recognized that there are events held with the sole purpose of fundraisings, such as an alumni dinner or golf outing.
    1. 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. )
    2. 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.
    3. 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.
    4. 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.
  1. 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.)
    1. 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.
    2. Requests require appropriate Dean or Director’s office approval prior to submitting the request for payment to the WFAA.
    3. If payment is for the School/College Dean or Auxiliary Director, request for payment requires Chancellor or VCFA office approval, respectively.
    4. 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.
  1. If the University can process the items being requested for payment under State procurement and travel rules, they must be processed through the University.
    1. 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.
    2. Requests for employee travel expense reimbursement will be rejected if the expenses are reimbursable under University travel policies.
  1. 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.
  1. Some direct payments made by the WFAA will result in taxable income to the recipient.
    1. 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.
  1. 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.
  1. 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).
    1. Any resubmission must include supporting documentation justifying why the submission requires reconsideration.
    2. 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).

VI. Related references


VII. Revisions

Procedure Number 3010.2
Date Approved December 12, 2017
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3010.2 from 131.2

3010.1 Acceptance of Gift Funds Procedure

Acceptance of Gift Funds Procedure

Acceptance of Gift Funds Procedure
Procedure # 3010.1
Rev.: 0
Effective Date: December 12, 2017

Download 3010 .1 Acceptance of Gift Funds Procedure (PDF)

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
    1. 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.
  1. 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):
    1. 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).
    2. For ACHs or wires, complete a Wire-Incoming Department Wire/ACH Form and a 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 Accounting Services, Cash Management Policy 402 – Revenue Accounting).
    3. Questions regarding deposit of gift funds directly to University accounts should be directed to Accounting Services, Gift Management at giftmgt@bussvc.wisc.edu.
    4. 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.
  1. Whether checks are payable to the University or the WFAA, good internal control procedures must be followed. These include:
    1. Restrictively endorsing checks “for deposit only” immediately upon receipt.
    2. Depositing checks within five days of receipt.
    3. Logging and tracking receipts and verifying posting following processing.
    4. Storing un-deposited funds in a locked desk or safe overnight.
    5. Segregating duties of handling and depositing physical checks with separately assigned review and monitoring duties.
  1. 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.
    1. 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.
    2. 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.
      1. 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).

VI. Related references


VII. Revisions

Procedure Number 3010.1
Date Approved December 12, 2017
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3010.1 from 131.1

3008.9 Change in Custody to Another Department Procedure

Change in Custody Procedure

Procedure # 3008.9; Rev.: 0 (Effective January 1, 2017)
Related Policy: UW-3008 Capital Equipment Policy
Functional Owner: Property Control, Business Services
Contact: Property Control Mailbox, property@bussvc.wisc.edu


Contents

  1. Procedure statement
  2. Who is affected by this procedure
  3. Procedure
  4. Contact roles and responsibilities
  5. Definitions
  6. 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.

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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)

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III. Procedure

The following steps represent the overall process:

  1. 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.
  2. The DPA forwards the request, via email, to the Department/Division Chair and Property Control for review and authorization of the change in custody.
  3. 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.
  4. Property Control will notify both the current and new departments and DPAs of approval.
  5. 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.

  6. Property Control will update the records in the asset management system.

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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. X

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V. Definitions

Capital Equipment Definitions (PDF)

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VI. Revisions

Procedure Number 3008.9
Date Approved January 1, 2017
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3008.9 from 110.9

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3008.8 Location/Room Changes Procedure

Location/Room Change Procedure

Procedure # 3008.8; Rev.: 0 (Effective January 1, 2017)
Related Policy: UW-3008 Capital Equipment Policy
Functional Owner: Property Control, Business Services
Contact: Property Control Mailbox, property@bussvc.wisc.edu


Contents

  1. Procedure statement
  2. Who is affected by this procedure
  3. Procedure
  4. Contact roles and responsibilities
  5. Definitions
  6. Related references
  7. 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 in Custody to Another Department if the location change is due to a permanent change in department custody.

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II. Who is affected by this procedure

  • Department Property Administrators (DPAs)
  • Department employees
  • Business Services – Property Control

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III. Procedure

The following steps represent the overall process:

  1. 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.
  2. The DPA completes the Property Transaction Form with the information related to the change in room and/or building location of the capital equipment.
  3. The Property Control Office updates the records in the asset management system.

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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. X

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V. Definitions

Capital Equipment Definitions (PDF)

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VI. Related references

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VII. Revisions

Procedure Number 3008.8
Date Approved January 1, 2017
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3008.8 from 110.8

3008.7 Equipment Disposition Procedure

Equipment Disposition Procedure

Procedure #3008.7; Rev.: 0 (Effective January 1, 2017)
Related Policy: UW-3008 Capital Equipment Policy
Functional Owner: Property Control, Division of Business Services
Contact: Property Control, property@bussvc.wisc.edu


Contents

  1. Procedure statement
  2. Who is affected by this procedure
  3. Procedure
  4. Contact roles and responsibilities
  5. Definitions
  6. Related references
  7. 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).

This procedure covers all retirement reasons except two: items transferred to a departing employee’s new institution and items that are declared lost. These two types of disposition occur as part of broader, separate procedures (refer to Procedure 3008.11 – Departing Employees Request to take Capital Equipment to a New Institution and Procedure 3008.6 – Physical Inventory).

Accountable disposition reasons

Reasoning Category
Items have become surplus to the department’s needs, obsolete, or unrepairable Formal category is Scrapped Assets
Items will be traded in for credit on purchase of a like item Formal category is Traded In for another Asset
Items will be cannibalized for parts Formal category is Cannibalize for Other Assets
Items will be returned to a vendor Equipment returned and replaced: Formal category is Like Kind Exchange

Equipment returned but not replaced: Formal category is Scrapped Assets

Items will be delivered to a sponsor per contract terms Formal category is Returned to Inventory

Unaccountable disposition reasons

Reasoning Category
Items have been lost Formal category is Disappeared Assets
Items have been stolen Formal category is Disposal Due to Theft
Items have been destroyed Formal category is Casualty Loss

Record keeping reasons

Reasoning Category
Remove items from records because Property Control should not have entered Formal category is Expensed

** Refer to Procedure 3008.11 – Departing Employees Request to take Capital Equipment to a New Institution:

Reasoning Category
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

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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.

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III. Procedure

The following steps represent the overall process:

  1. 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).
  2. The DPA must complete Capital Equipment Disposition Request Form and select one of the retirement reasons described below:
    1. Accountable disposition reasons (decision by department to retire equipment)
      1. 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.
      2. 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:
        1. UW-titled property cannot be traded on the purchase of sponsor-titled property.
        2. Sponsor-titled property cannot be traded in without prior authorization from the sponsor, RSP and Property Control.
        3. Departmental vehicles cannot be traded in.
      3. 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.
      4. 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.
      5. Items will be delivered to a sponsor per contract terms: Departments may deliver assets constructed in-house to a sponsor per contractual terms.
    2. Unaccountable disposition reasons (no decision made)
      1. 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).
      2. 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.
      3. 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.
    3. Recordkeeping reasons
      1. 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.).
  3. The DPA and the Dean, Director or designee sign the Capital Equipment Disposition Request.
  4. The DPA sends the completed request form to Property Control.
  5. Property Control will review the request for:
    1. Completeness.
    2. Appropriate signatures. NOTE: Signatures do not guarantee Property Control will authorize disposition, but indicates the department supports the disposition request.
    3. 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.
  6. If no restrictions exist, Property Control will authorize disposal and notify DPA in writing
  7. DPA notifies the person requesting the asset’s disposition that the request is approved and if the asset barcode tag can be removed.
  8. Property Control will document the retirement reason in the asset management system. Depending on the retirement reason, Property Control may forward the completed request:
    1. to SWAP, when items have become surplus to the department.
    2. to Purchasing Services, if the item will be traded in for credit on purchase of a like item or returned to vendor.
    3. to Risk Management, if the item has been destroyed.
    4. to Environment, Health and Safety (EHS), if the item was hazardous.
  9. For surplus dispositions, the DPA contacts SWAP by submitting a Surplus Request Form, which will assess the item’s suitability for resale.
  10. 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.
    1. 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.
  11. Property Control reviews all losses (refer to Procedure 3008.6 – Physical Inventory).
  12. Property Control notifies the divisional Chief Financial Officer of all unaccountable dispositions.

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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 X

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V. Definitions

Capital Equipment Definitions (PDF)

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VI. Related references

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VII. Revisions

Procedure 3008.7
Date Approved January 1, 2017
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3008.7 from 110.7

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