3008.4 Fabricated Capital Equipment Procedure

Fabricated Capital Equipment Procedure

Fabricated Capital Equipment Procedure
Procedure # 3008.4
Rev.: 0
Effective Date: January 1, 2017

Download 3008.4 Fabricated Capital Equipment Procedure (pdf)

Related Policy: Capital Equipment Policy
Functional Owner: Property Control, Business Services
Contact: Property Control Manager: (608) 890-3131, Property Control Mailbox: property@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

Some departments internally fabricate custom pieces of equipment. When fabricating an equipment item with aggregate costs of $5,000 or more and that meets the definition of capital equipment, UW-Madison departments must code component parts and direct labor purchases to the 4670 (Fabrication in Progress) account in the UW System Chart of Accounts. In order to correctly assign purchases to an in progress fabrication, an Asset ID number must be created by completing Capital Equipment Fabrication Request Form and using the assigned Asset ID number for all qualifying purchases. Property Control routinely reviews purchases and will contact departments to gather more information before establishing inventory records.


II. Who is affected by this Procedure

This procedure applies to all UW-Madison departments that fabricate equipment, which may require the completion of the fabrication and ability to initiate the use of the capital equipment over a period of time. The period of time can range from weeks to years, depending on the complexity of the capital equipment being fabricated. It should be understood by Procurement Specialists, DPAs, Department Chairs, Department Managers, Directors, Deans, CFOs, department financial staff and employees responsible for fabricating equipment.


III. Procedure

The following steps represent the overall process:

  1. The employee responsible for fabricating a new piece of equipment expected to cost $5,000 or more should contact their DPA to confirm the anticipated equipment will meet the definition of capital equipment, and obtain an Asset ID number by working with the DPA to complete Form 110.4F Capital Equipment Fabrication Request.
  2. The DPA sends the form to Property Control for review. Property Control reviews the submission and confirms title requirements.
    1. If title is vested with a sponsor, Property Control will notify the Department and DPA.
    2. If the fabrication is to be paid for with a sponsored award, Property Control will route the request to Research and Sponsored Programs (RSP) for additional review.
  3. After the completed Form 110.4F Capital Equipment Fabrication Request is received, Property Control will establish an inventory record, assign an Asset ID number, and notify the responsible employee, DPA, department financial personnel, and RSP. Although an Asset ID number will be established for fabricated equipment, Property Control will not assign or mail a physical tag at this time.
  4. During fabrication, department financial staff must code components and direct labor to the 4670 account in the UW System Chart of Accounts and always reference the Asset ID number. All qualified components or direct labor should be coded to 4670, regardless of cost. 4670 is the only capital purchase account for which it is permissible to code single item purchases less than $5,000. The cost of replacement/spare parts for the equipment should not be coded to 4670 as these items are considered repair or maintenance expenses.
  5. Property Control reviews 4670 purchases at the end of each month. Property Control attempts to find the referenced Asset ID number and accumulate costs on the inventory record. The following is where Property Control will look to find the Asset ID number:
    1. Purchase Order: In the requisition comments field in the External Requisition Generator, which feeds into BusPO.
    2. P-Card: The current Purchasing Card Capital Equipment Documentation Form. This form generates an email to the Property Control inbox (property@bussvc.wisc.edu).
    3. Cost Transfer Tool: The comments field in the Cost Transfer Tool.
  6. If Property Control cannot find the Asset ID number, they will ask department financial personnel to provide this.
  7. Property Control examines 4670 purchases to ensure they meet four criteria:
    1. Items are fabricated over a period of time, which can range from weeks to years.
    2. Component parts must be attached to, or internal to the completed fabrication and essential for the equipment’s operation (i.e. if the component is removed, the equipment will not operate correctly). Replacement/spare parts cannot be capitalized, they must be expensed. Generally, software is not capitalized, but software can be considered a capital component if it serves as the operating system for the fabricated equipment.
    3. Direct labor must be hands-on assembly labor and traceable to the equipment (e.g. Physical Sciences Lab). Direct labor would not include expenses such as design, salaries, or personnel expense, as these would normally be considered part of indirect costs.
    4. For electronic systems, component parts must be attached in a manner of dependency integral to the functional operation of the fabrication. Interchangeable component parts purchased during the fabrication period will not be disconnected from the electronic system and/or used in a similar manner with another system. The component parts will be used in the same electronic system for the entire duration of the system’s life.

    These criteria are in place to ensure that fabricated items are properly accounted for, can subsequently be located, and valuations can be adequately supported. Please contact the Property Control Office if you have any questions or may have an exception to the criteria listed above. Otherwise, if Property Control thinks a purchase does not meet criteria, they will contact the DPA and department financial personnel to investigate. If it is determined that it isn’t a qualifying purchase, Property Control will complete a journal entry to reassign the purchase to an appropriate account.

  8. Because fabrications do not begin to depreciate until completion, they can be at risk for impairment if they are not completed on schedule. To mitigate this risk, Property Control will request, once per year, that DPAs with fabrications open past their estimated completion date contact the responsible employee for the fabrication to confirm in writing that the equipment is still not in use and no impairment has occurred. The responsible employee should also provide a revised estimate of the date the fabricated equipment will be ready to put into initial use.
  9. When the fabricated asset is ready to be placed into initial service, the employee responsible for the fabricated equipment must notify their DPA, who will inform Property Control in writing.
  10. Property Control will aggregate all costs during the fabrication period to establish the value of the capital equipment, and change its status to “in-service”, which will start depreciation. Property Control will also assign and mail an appropriate asset barcode tag (red or blue) to the DPA.
  11. Follow Procedure 3008.1 Recording and Tagging Capital Equipment Purchases after corresponding step #4.
  12. After the fabricated asset is placed into initial service, further purchases cannot be coded for capitalization unless the purchases meet the criteria for a qualified upgrade to an existing equipment item. Qualified upgrades may be fabricated or an item costing $5,000 or more. A fabricated upgrade requires a new Asset ID number to correctly capture upgrade costs (refer to Procedure 3008.5 Upgrades to Existing Capital Equipment).

IV. Contact Roles and Responsibilities

wdt_ID Fabricated Capital Equipment Dept Fin Staff Responsible Employee DPA RSP Property Control
1 1) Complete and sign Fabrication Request Form and send it to Property Control, who will review submission and confirm title requirements. X X
2 2) Fabrication Request Form is reviewed to confirm title requirements. X X
3 3) Inventory record established, Asset ID number assigned, responsible employee, DPA, department financial personnel, and RSP are informed. X
4 4) Code components and direct labor to 4670, referencing the Asset ID number X
5 5) Review 4670 account activity and accumulate cost on the inventory record. X
6 6) If necessary, ask department financial personnel for the Asset ID number. X
7 7) If 4670 purchases do not appear to meet criteria, investigate with department financial personnel. If confirmed invalid, complete journal entry to reassign to another account. X
8 8) Annually, follow up with DPA if a fabrication is open past its estimated completion date. X
9 9) When fabricated asset is ready to be placed into service, notification sent to DPA, who will notify Property Control X X
10 10) Aggregate all fabrication costs, capitalize equipment and start depreciation by changing system status to “in-service”. Assign and mail asset barcode tag to the DPA. X

V. Definitions


VI. Related References


VII. Revisions

Procedure Number

3008.4

Date Approved

January 1, 2017

Revision Dates

01/19/21 – Changed Procedure Number to 3008.4 from 110.4

 

3008.3 Transfer-in with New Hire Procedure

Transfer-in with New Hire Procedure

Transfer-in with New Hire Procedure
Procedure # 3008.3
Rev.: 0
Effective Date: January 1, 2017

Download 3008.3 Transfer-in with New Hire Procedure (pdf)

Related Policy: Capital Equipment Policy
Functional Owner: Property Control, Business Services
Contact: Property Control Manager: (608) 890-3131, Property Control Mailbox: property@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

With prior approval from their respective Dean’s Office, departments may transfer-in equipment from another institution as part of a new hire’s recruitment package. The term “transfer-in” refers to capital equipment received from another institution (usually another university) either at no cost to UW-Madison, or at an agreed upon purchase of existing (used) equipment from a new hire’s prior institution. Purchase is only allowed if the equipment already exists at the new hire’s prior institution. UW-Madison departments that receive transfers-in are responsible for notifying Property Control in writing.

Property Control will create a new inventory record for individual transferred items valued at $5,000 or more that meet the definition of capital equipment. For $0 transfers, Property Control will record items at the book value provided by the transferring organization. For purchases, Property Control will record items at the item level sale price. If this is not possible, Property Control will record items at market value estimated by the receiving department.


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, Division CFOs and employees responsible for equipment.


III. Procedure

The following steps represent the overall process of recording and tagging capital equipment items that transfer-in with a new hire from their prior institution:

  1. Employees (Department Chairs, Department Administrators or new hires) who anticipate transfer-in of equipment from another institution should notify their Department Property Administrator (DPA) and provide information on the transaction (e.g. sale or $0 transfer, description of capital equipment items, new hire’s name, former department’s name, and point of contact for approving the transfer at the other institution, etc.).
  2. DPA notifies Property Control of the transfer-in via email. For capital equipment transfers under a purchase scenario, notify Division of Business Services, Purchasing Services to assist with negotiation of the purchase price of the equipment. When the UW-Madison department codes the purchase to a capital equipment account code, payment to the new hire’s prior institution will trigger Property Control to follow-up under the normal capital equipment purchase process. Together, Property Control and the DPA will establish the completed records (refer to Procedure 3008.1 Recording and Tagging Capital Equipment Purchases).
  3. For $0 transfers, Property Control will attempt to contact the transferring organization’s property control function to obtain book value of transferring equipment.
  4. If Property Control cannot contact the transferring organization, Property Control will request the new hire’s department provide an estimated market value of the transferring equipment.
  5. Department financial staff should estimate market value and gather supporting documentation for the estimate. This may include but is not limited to:
    1. Independent appraisal
    2. Invoice or receipt associated with similar purchase
    3. Market pricing for similar equipment
  6. After determining value, Property Control establishes inventory records for items valued at $5,000 or more. Property Control obtains information from the transferring organization and the new hire’s department.
  7. Property Control will issue a unique asset barcode tag and generate a Capital Equipment Confirmation Form for each transferred capital equipment item. Property Control will mail asset barcode tags and Capital Equipment Confirmation Forms to DPAs, in batches, monthly.
  8. Follow Procedure 110.1 Recording and Tagging Capital Equipment Purchases after corresponding step #4.

IV. Contact Roles and Responsibilities

wdt_ID Transfer In (via No Purchase or Purchase) Responsible Employee (new hire) DPA Dept Chair/ Dept Admin Dept Fin Staff Property Control
1 1) Notify DPA of pending transferred capital equipment and associated equipment description and contact information for person at the new hire’s prior institution authorizing the transfer. X X
2 2) Notify Property Control in writing. Notify Purchasing Services to negotiate the purchase price of the equipment. X
3 3) If a $0 transfer, attempt to contact transferring organization to obtain book value. X
4 4) If cannot contact transferring organization, request estimated market value. X
5 5) Estimate market value, support estimate. X
6 6) Establish inventory records for transferred items valued at $5,000 or more. X
7 7) Create Capital Equipment Confirmation Form and send it, along with appropriate asset barcode tag (red or blue), to the DPA for each transferred asset entered into the system. X
8 8) Pick up and follow balance of Procedure 110.1 after the point that Property Control sends the Capital Equipment Confirmation Form (step #4). X (if needed) X X

V. Definitions


VI. Related References


VII. Revisions

Procedure Number

3008.3

Date Approved

January 1, 2017

Revision Dates

01/19/21 – Changed Procedure Number to 3008-3 from 110.3

 

3008.1 Recording and Tagging Capital Equipment Procedure

Recording and Tagging Capital Equipment Procedure

Recording and Tagging Capital Equipment Procedure
Procedure # 3008.1
Rev.: 0
Effective Date: January 1, 2017

Download 3008.1 Recording and Tagging Capital Equipment Procedure (pdf)

Related Policy: Capital Equipment Policy
Functional Owner: Property Control, Business Services
Contact: Property Control Manager: (608) 890-3131, Property Control Mailbox: property@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

UW-Madison departments must code capital purchases to 46XX accounts in the UW System Chart of Accounts. All capital purchases are routinely reviewed by Property Control upon payment as the trigger to identify new capital equipment items that have been acquired by campus. To later aid in physically identifying capital equipment, Property Control will assign a unique asset barcode tag to be affixed to each item. Asset barcode tags are color-coded based on whether the University owns the asset (blue – “Property of University of Wisconsin”) or a sponsor owns the asset (red – Property of Federal Government”). Assets that belong in whole or in part to a sponsor must be tagged with the red Federal ownership tag. Property Control will mail asset barcode tags along with a Capital Equipment Confirmation Form to the Department Property Administrator (DPA) with instructions for completing the recording of new capital equipment items in the University’s asset management system. Fabricated capital equipment assets (refer to Procedure 3008.4 Fabricated Capital Equipment) are tagged once the item is placed into initial service. Qualified capital equipment upgrades are generally not issued an additional asset barcode tag (refer to Procedure 3008.5 Upgrades to Existing Capital Equipment). If Property Control has not mailed an asset barcode tag for a newly acquired item within a reasonable amount of time, the DPA should contact Property Control with the purchase order number or other referenced information. Property Control will verify if payment has been made or that the correct account code was assigned to the purchase.


II. Who is affected by this Procedure

This procedure applies to all UW-Madison departments. It should be understood by department managers, DPAs, Principal Investigators (PI’s), lab managers, department chairs, directors, deans, and all employees responsible for capital equipment.


III. Procedure

The following steps represent the overall process of inventorying new asset purchases:

  1. Department financial staff must code capital purchases to the 46XX accounts in the UW System Chart of Accounts. No additional reporting of purchases is necessary.
  2. Property Control reviews capital purchases at the end of each month in WISDM and establishes partial inventory records for each item purchased, obtaining information from:
    1. Purchase Orders: Purchasing System, Image Now
    2. P-Card: Purchasing Card Capital Equipment Documentation Form
    3. Direct payments/payments to individual: Image Now
    4. MDS Orders: Shop@UW Shopper Lookup Website
    5. Inter-departmental billings: Journal Entry Tool comments
    6. Cost transfers: Cost Transfer Tool Research and Sponsored Programs Cost Transfer Policy.
  3. If an item does not meet the capital purchase definition, Property Control will not establish an inventory record. Instead, Property Control will contact department financial staff to gather additional information. If confirmed as a non-qualified capital equipment purchase, Property Control will complete a journal entry to reassign the purchase to an appropriate account. If confirmed as a capital equipment purchase, the capital equipment processes will continue.
  4. Property Control will issue a unique asset barcode tag and generate a Capital Equipment Confirmation Form for each item. Property Control will mail asset barcode tags and Capital Equipment Confirmation Forms to DPAs, in batches, weekly.
  5. DPA affixes asset barcode tag. For best adherence, DPAs should affix asset barcode tags onto a clean, dry surface when temperatures are above freezing. Asset barcode tags should be placed onto the equipment in a location that will be readily visible on an on-going basis. This will also make scanning the asset barcode tag during subsequent physical inventories much easier. If an asset barcode tag cannot be affixed to the item, then it should be affixed in an alternate location/method within the department that the DPA maintains. Qualifiers for assets that asset barcode tags cannot be affixed to include:
    1. Item is too delicate to tag (e.g. laser optics)
    2. Tag would de-face or de-value the asset (e.g. antique piano)
    3. Tag would make the asset un-usable (e.g. centrifuge rotor would be unbalanced by tag)
    4. Asset is not accessible (e.g. satellite dish on tower, roof-mounted asset without stair access)
    5. Asset shape or size prohibits tagging (e.g. asset smaller than the tag)
    6. Asset does not have compatible surface/environmental conditions (e.g. environment too hot/cold/wet)
    7. Asset is subsequently impractical to scan (e.g. asset will be in space, buried underground)
  6. DPAs are responsible for affixing asset barcode tags or explaining on the Capital Equipment Confirmation Form if tag cannot be affixed, changing/confirming the accuracy of the information prelisted on the form (e.g. building and room location,equipment’s responsible employee) and recording balance of the asset information unavailable to Property Control (e.g. serial #). DPA should return the Capital Equipment Confirmation Form to Property Control via mail or email within two (2) weeks. DPAs are responsible for completing these tasks, but may engage the assistance of others (including the responsible employee).
  7. Upon return of the Capital Equipment Confirmation Form, Property Control will update the equipment record in the asset management system. If Property Control does not get confirmation that the asset barcode tag has been affixed after two (2) weeks, a follow up email will be sent to the DPA.
  8. If the DPA has not received an asset barcode tag from Property Control for a newly acquired item within a reasonable time period, the DPA should contact Property Control with the purchase order number or other referenced information. Property Control will verify if payment has been made or that the correct account code was assigned to the purchase.

IV. Contact Roles and Responsibilities

wdt_ID Inventorying Asset Purchases Dept Fin Staff Responsible Employee DPA Property Control
1 1) Code all capital purchases to 46XX accounts. X
2 2) Review 46XX account activity and establish inventory records for each item. X
3 3) If necessary, investigate with Dept. Financial Staff and complete journal entry to reassign non-capital purchases to appropriate account. X
4 4) Create Capital Equipment Confirmation Form and send it, along with appropriate asset barcode tag (red or blue), to the DPA for each new asset entered into the system. X
5 5) Affix asset barcode tag to capital equipment item. If tag cannot be affixed to the item, affix tag to the alternate method/location that the DPA manages. (if DPA engages help) X
6 6) Complete capital equipment information fields and change/confirm pre-printed asset information on the Capital Equipment Confirmation Form. Return Form to Property Control within two (2) weeks. (if DPA engages help) X
7 7) Complete/update the asset record in the asset management system. X
8 8) Contact Property Control if an asset tag was expected but has not been received. X

V. Definitions


VI. Related References


VII. Revisions

Procedure Number

110.1

Date Approved

January 1, 2017

Revision Dates

1/19/21 – Procedure Number changed to 3008-1 from 110.1

3009.1 Acceptance of Gift in Kind Procedure

Gift in Kind (GIK) refers to a non-monetary donation received by the University, including tangible items, goods, and/or services. Examples of a GIK include, but are not limited to the following: vehicles, equipment, gift cards, supplies, artwork, books, etc.
It is the responsibility of UW-Madison Colleges, Schools, and Divisions/Departments to complete the Gift in Kind Routing Form, obtain approval from the Dean/Director/Divisional Business office, and send the form along with supporting documentation to the Division of Business Services, Accounting Services, Gift Management department prior to taking custody of the donation. After the form has been received, reviewed and approved by Gift Management, the Gift in Kind is reported to the University of Wisconsin System Board of Regents.
If the donor is interested in establishing the estimated value of the gift for tax donation reporting purposes, support for an estimated value of the item must be included with the Gift in Kind Routing Form. If valuation has not been sufficiently established, Gift Management may advise the recipient of further procedures to be followed when accepting the donated gift. For Gift in Kind donations that are valued at $5,000 or more, acceptable source documentation includes an appraisal of the item(s), inventory list, invoice, or a print out of a catalog or website page of the item.

Acceptance of Gift in Kind Procedure
Procedure # 3009.1
Rev.: 0
Effective Date: December 12, 2017

Download 3009 .1 Acceptance of Gift in Kind Procedure (pdf)

Related Policy: Gift In Kind 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

Gift in Kind (GIK) refers to a non-monetary donation received by the University, including tangible items, goods, and/or services. Examples of a GIK include, but are not limited to the following: vehicles, equipment, gift cards, supplies, artwork, books, etc.

It is the responsibility of UW-Madison Colleges, Schools, and Divisions/Departments to complete the Gift in Kind Routing Form, obtain approval from the Dean/Director/Divisional Business office, and send the form along with supporting documentation to the Division of Business Services, Accounting Services, Gift Management department prior to taking custody of the donation. After the form has been received, reviewed and approved by Gift Management, the Gift in Kind is reported to the University of Wisconsin System Board of Regents.

If the donor is interested in establishing the estimated value of the gift for tax donation reporting purposes, support for an estimated value of the item must be included with the Gift in Kind Routing Form. If valuation has not been sufficiently established, Gift Management may advise the recipient of further procedures to be followed when accepting the donated gift. For Gift in Kind donations that are valued at $5,000 or more, acceptable source documentation includes an appraisal of the item(s), inventory list, invoice, or a print out of a catalog or website page of the item.


II. Who is Affected by this Procedure

All UW-Madison employees accepting and/or receiving a Gift in Kind.


III. Procedure

The following steps represent the overall process of accepting a Gift in Kind. If the Gift in Kind is real property, please contact WFAA development personnel prior to beginning with step 1.

  1. A Gift in Kind Routing Form is to be completed by the department receiving the Gift in Kind prior to taking custody of the donation. Follow these steps when filling out the form:
    1. Enter Contact Information: This is the information for the employee completing the Gift in Kind Routing Form.
      1. Use the “Search/Change Contact” button to find and select your name. This information will auto-fill the Contact Information boxes.
    2. Enter Donor Information: This is the information about the Donor.
      1. Enter the Donor’s Name, City and State.
    3. Enter Gift Information: Provide details regarding the Gift in Kind.
      1. Description of Gift in Kind: Please provide a detailed description of the Gift in Kind item. This is the information that will be provided to the University of Wisconsin System Board of Regents.
      2. If the Gift in Kind is a vehicle or equipment and its estimated value is $5,000 or more, select the “yes” button and provide the following information, which will be shared with Property Control. If more than one piece of equipment is being included on the form, attach a list that includes all of the following for each piece:
        1. Name of Manufacturer
        2. Serial number
        3. Model number
        4. Building number (or location if NA) where the equipment will be located/stored
        5. Room where the equipment will be located/stored
        6. Estimated Value: This is the measurable and determinable fair market value at the anticipated receipt date of the Gift in Kind.
        7. Source of estimated value: Provide a copy of supporting documentation explaining how the value was derived. An acceptable form of supporting documentation is one of the following:
          • Third Party Appraisal
          • Itemized Inventory List
          • Invoice
          • Published Value of Gift (i.e. catalog or website print out)
    4. Enter Recipient Information: Identify who is responsible for receiving the Gift in Kind.
      1. Select the type of individual receiving the Gift in Kind (e.g. Faculty, Director, Chair or Dean) and permanent versus limited employment status.
      2. Enter the Name, Employee ID, email, phone number, and Department ID (the unit name will automatically populate based on the Department ID)
      3. Select the program code
      4. Enter the anticipated receipt date
    5. Answer questions related to informational clearances. Informational clearances consider the following:
      1. Action involving space, remodel, or construction.
        1. If answer is “yes,” Gift Management will provide the information to the Director of Financial Information Management. The information will be used for financial reporting requirements.
      2. Potential environmental impacts, which require review under the Wisconsin Environmental Policy Act.
        1. Visit the Wisconsin Environmental Policy website and consider the environmental impacts of the Gift in Kind.
      3. Funding primarily dedicated to building, renovations, or equipment.
        1. If answer is “yes,” Gift Management will provide the information to the Director of Financial Information Management. The information will be used for Financial Reporting requirements.
      4. Protocols for biosafety, use of human subject, use of vertebrate animals, or pluripotent stem cell.
        1. If the answer is “yes,” attach the applicable protocol approval documentation.
    6. Select “Print” and the Gift in Kind Routing Form will be created as a PDF.
  2. Obtain the required signatures on the Gift in Kind Routing Form.
    1. Recipient, Department, and Dean/Director/Divisional Business Office acknowledge that the gift has been reviewed for the considerations listed in the Gift in Kind policy.
  3. The department routes all supporting documentation with the Gift in Kind Routing Form to Gift Management. Supporting documentation should include the following:
    1. A completed Gift in Kind Routing Form with required signatures.
    2. A copy of the Donor Intent Letter or similar document.
    3. Documentation supporting the valuation of the Gift in Kind if the estimated value of the item is $5,000 or more. (e.g. Third party appraisal, invoice, inventory list, catalog or website print out)
    4. A copy of Tax Form 8283 if the Donor wishes to report the donation for tax purposes.
  4. Gift Management reviews all Gift in Kind Routing Forms and supporting documentation for compliance. Gift Management will contact the department and recipient if valuation has not been sufficiently established or documented. Additionally, Gift Management will advise if further procedures are necessary in accepting the Gift in Kind.
    1. If a Tax Form 8283 is provided with the Gift in Kind documentation, Gift Management will provide a copy of the form to the Tax Compliance Manager for review.
  5. Gift Management obtains remaining approvals as necessary:
    1. For a Gift in Kind under $5,000:
      1. Accounting Services, Director of Financial Information Management confirms the donation is compliant with the Gift in Kind policy.
    2. For a Gift in Kind $5,000 or greater (see the related Capital Equipment procedure 3008.2 Gift in Kind):
      1. When necessary, Gift Management will request the Director of Risk Management to review the Gift in Kind to determine proper insurance protection and inventory control.
      2. When necessary, Gift Management will request assistance from the Office of Legal Affairs to review any terms and conditions of a Gift in Kind agreement required in accepting the donation.
      3. Accounting Services, Director of Financial Information Management confirms that the donation is compliant with the Gift in Kind policy.
  6. Gift Management notifies the department contact, recipient and Dean’s office via email that the Gift in Kind and supporting documentation complies with the policy and that the donation can be accepted. This applies to all Gift in Kind donations, no matter what the estimated value.
  7. The department takes physical custody of the Gift in Kind and sends a Gift in Kind Acknowledgement letter.
  8. The Department notifies Gift Management after the Gift in Kind is received and sends a copy of the Donor Acknowledgement letter to Gift Management.
  9. Gift Management records the Gift in Kind and generates a UW System Board of Regents Notice.
  10. Gift Management sends the Gift in Kind supporting documentation to the Wisconsin Foundation and Alumni Association (WFAA) for informational purposes and Donor tracking.

V. Definitions


VI. Related References


VII. Revisions

Procedure Number

3009.1

Date Approved

December 12, 2017

Revision Dates

01/19/21 – Changed Procedure Number to 3009.1 from 130.1