3008.6 Physical Inventory Procedure

Physical Inventory Procedure

Procedure # 3008.6; Rev.: 1 (Effective June 18, 2018)
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. Definitions
  5. Revisions

I. Procedure statement

Periodically, Department Property Administrators (DPAs) must inventory capital equipment in their department’s custody. Property Control coordinates inventories, including scheduling, training, and providing capital equipment lists to facilitate the process. DPAs must oversee or supervise the work of employees who conduct inventories within their department. Employees who conduct inventories must verify items by direct sighting unless the items are off-campus, in which case an email from the responsible person is sufficient.

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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 of conducting a physical inventory and reconciliation:

  1. Property Control schedules departmental inventories each fiscal year. Departmental inventories are spread out over the entire year skipping June and July due to fiscal year end. The selection criteria for annual inventories will follow UW System Administrative Policy 334.C.
  2. Property Control will notify DPAs of upcoming inventories and propose an inventory timeline with a start and completion date at least one month in advance, with a copy to the divisional Chief Financial Officer.
  3. If a proposed schedule or timeline is not feasible, DPAs can request to reschedule. Property Control will be as flexible as possible, recognizing the needs of all campus departments currently scheduled.
  4. DPAs may delegate work to other employees (including student employees) so long as the DPA supervises the work. To inventory a department’s items, employees must:
    1. Observe the item by direct sighting.
    2. Document their observation of the item. Property Control will facilitate this documentation by providing a barcode scanner and/or capital equipment list.
    3. If items are off-campus, employees must obtain written confirmation from the items’ responsible person indicating that the item is still intact, are in his or her custody, and identify/confirm present location.
    4. If items are on loan to another institution as part of an active UW loan agreement, employees should indicate this. Loaned items are not subject to inventory.
  5. Property Control coordinates inventories including training and providing equipment lists. Property Control uses a two-phase approach:
    1. Initial search.
    2. Final search for unaccounted items and subsequent reconciliation.
  6. Property Control will first request that the DPA conducts an initial search. At the start of the initial search, Property Control provides a capital equipment list, barcode scanner, instruction sheet, and due date by which to return the scanner to Property Control.
  7. During the initial search, DPAs or others supervised by the DPA use the scanner to verify items by scanning the tags affixed to equipment.
  8. Upon the due date, Property Control collects the barcode scanner and loads results to update the capital equipment inventory records.
  9. When items are not accounted for during the initial search (this outcome is expected at most departments due to volume and sharing equipment amongst researchers), Property Control will request the DPA conduct a final search for the unaccounted items. Property Control provides a printed unaccounted items listing. The DPA has 15 business days to complete the final search and return documentation to Property Control.
  10. During the final search, DPAs or others supervised by the DPA should check items off the printed list by hand as they verify them.
  11. If unaccounted items are determined to have been disposed of, DPAs should attempt to determine what happened to the item, completed a Disposition Request Form indicating the reasons for disposal, and attach supporting documentation to the disposition. (e.g. a pick-up request form if items disposed through SWAP).
  12. If unaccounted items cannot be found and DPAs cannot determine what happened to them, DPAs should indicate the items as lost on the Disposition Request Form.  A concerted effort should be made to find items before simply declaring the items “lost”. The Department will attest to these efforts on the Disposition Request Form by marking the attestation boxes under the lost section of the Disposition Form.
  13. For all disposed items, DPAs must sign and obtain the signature of the Department Chair, Director, or designee on the Disposition Request Form. Two signatures are required to ensure adequate segregation of duties in authorizing removal of unaccounted items that were determined to have been disposed or lost during the final search.
  14. Upon the due date, Property Control collects the completed unaccounted items listing.
  15. Property Control reviews all losses to determine eligibility for removal from records as “lost”. Property Control may allow items to be removed as lost if:
    1. they do not belong to a sponsor, and
    2. they are more than three years old, based on the date of acquisition.
  16. If Property Control determines that an item is ineligible to be removed from records as “lost”, Property Control will ask the department to notify the UW Police Department. Property Control will require a copy of an official police report before deactivating the item from records
  17. Property Control will enter all results into records and provide a summary of department’s inventory results to the DPA, with a copy to the Department Chair/Administrator and divisional Chief Financial Officer.

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IV. Definitions

Capital Equipment Definitions (PDF)

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V. Revisions

Procedure Number 3008.6
Date Approved January 1, 2017
Revision Dates June 18, 2018 – Reference UW System Administrative Policy 334.C for physical inventory selection criteria.
Jan. 19, 2021 – Changed Procedure Number to 3008.6 from 110.6

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3008.5 Upgrades to Existing Capital Equipment Procedure

Upgrades to Existing Capital Equipment Procedure

Procedure # 3008.5; 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

UW–Madison departments must code upgrade purchases to 46XX accounts if all of the following criteria are met:

  • Upgrades must be made on existing capital equipment.
  • Upgrades must have aggregate costs of $5,000 or more, by themselves, regardless of the cost of the existing equipment being upgraded.
  • Upgrade must result in either:
    • A substantial increase in the functionality of equipment, which allows it to function or perform tasks that it was previously incapable of performing and extends the useful life of the asset.
    • A substantial increase in the efficiency of the equipment, that is, an increase in the level of service provided by the equipment without the ability to perform additional tasks, and extends the useful life of the asset.

If equipment vendor’s software upgrades cost $5,000 or more and result in in either of the above described gains, they can be a qualified capital equipment upgrade. For UW–Madison implementation simplicity and clarity under White House OMB Uniform Grant Guidance § 200.313 (d) – Equipment, repairs or maintenance costing $5,000 or more do not qualify as a capital equipment upgrade.

UW–Madison departments may obtain upgrades as either purchased complete or fabricated upgrades. If purchased complete, the qualified upgrade must reference the asset tag number of the existing capital equipment item. For fabricated upgrades, if the existing capital equipment was fabricated, departments cannot use the prior Asset ID number, they must obtain a new Asset ID number. As with other fabrications, departments must code parts and labor to the 4670 account and submit Capital Equipment Fabrication Request Form to obtain a new Asset ID number associated with the fabricated upgrade. The request form needs to reference the asset barcode tag number of the existing capital equipment item that is being upgraded. Property Control routinely reviews 46XX purchases. For upgrades, Property Control establishes a new inventory record associated with the existing inventory record. Property Control does not assign or mail a new asset barcode tag for upgrades if the existing capital equipment is already tagged.

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II. Who is affected by this procedure

This procedure applies to all UW–Madison departments that upgrade existing capital equipment. It should be understood by department managers, DPAs, department purchasing and financial personnel, Department Chairs, Directors, Deans, CFOs and employees responsible for equipment in these departments.

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III. Procedure

The following steps represent the overall process:

  1. Department financial staff code upgrades to the 46XX accounts in the UW System Chart of Accounts and reference the asset barcode tag number on the existing equipment being upgraded.
    1. Upgrades must be made on existing capital equipment.
    2. Upgrades must have aggregate costs of $5,000 or more, by themselves, regardless of the cost of the existing equipment being upgraded.
    3. Upgrade must result in either:
      1. A substantial increase in the functionality of equipment which allows it to function or perform tasks that it was previously incapable of performing and extends the useful life of the asset.
      2. A substantial increase in the efficiency of the equipment, that is, an increase in the level of service provided by the equipment without the ability to perform additional tasks and extends the useful life of the asset.
  2. If an upgrade is to be fabricated over time, the department financial staff must code parts and labor to the 4670 account and the employee responsible for the fabricated upgrade must work with their DPA to submit Form 110.4F Capital Equipment Fabrication Request.
  3. Property Control reviews capital purchases at the end of each month. For upgrades, Property Control attempts to find the asset barcode tag number of the existing equipment being upgraded. Property Control establishes a new inventory record associated with the existing inventory record.
  4. If Property Control cannot obtain needed information, they will ask for more information from the DPA.
  5. If Property Control believes an item does not meet the required criteria, they will not establish an inventory record. Instead, they will contact the DPA and department financial personnel to investigate. If it is confirmed as not meeting the criteria, Property Control will complete a journal entry to reassign the purchase to an appropriate general ledger account. Property Control will not establish inventory records for repair and maintenance costs (e.g. replacement parts) because these do not increase equipment value under Generally Accepted Accounting Principles.
  6. If needed, Property Control will assign or mail a new asset barcode tag. Usually a new asset barcode tag is not needed for upgrades because the existing capital equipment being upgraded is already tagged.
  7. If Property Control sends an asset barcode tag, follow Procedure 3008.1 – Recording and Tagging Capital Equipment Purchases after corresponding step #4.

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IV. Contact roles and responsibilities

wdt_ID Upgrades to Existing Capital Equipment Dept Fin Staff Responsible Employee DPA Property Control
1 1) Code qualified capital equipment upgrades to 46XX accounts, reference asset barcode tag number of existing equipment being upgraded. X
2 2) If needed, complete Form 110.4F Capital Equipment Fabrication Request and send to Property Control. X X
3 3) Review 46XX activity and establish upgrade inventory record associated with existing inventory record. X
4 4) If necessary, ask DPA for more information. X
5 5) If necessary, ask department financial personnel for clarification of purchases coded to capital equipment. Complete journal entry to reassign purchases that do not meet upgrade criteria to appropriate account. X
6 6) Assign and mail asset barcode tag to the DPA (only if existing equipment is not already tagged). X
7 7) If Property Control issues an asset barcode tag, affix per Procedure 110.1. 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 3008.5
Date Approved January 1, 2017
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3008.5 from 110.5

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3008.4 Fabricated Capital Equipment Procedure

Fabricated Capital Equipment Procedure

Procedure # 3008.4; 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

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.

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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.

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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 Department Property Administrator (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 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).

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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
11 11) Affix asset barcode tag per Procedure 110.1. X
12 12) After equipment placed into initial use, disallow future code 4670 purchases (except qualified upgrades that cost more than $5,000). X 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 3008.4
Date Approved January 1, 2017
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3008.4 from 110.4

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3008.3 Transfer-in with New Hire Procedure

Transfer-in with New Hire Procedure

Procedure # 3008.3; Rev.: 0 (Effective January 1, 2017)
Related Policy: 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

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.

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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, Division CFOs and employees responsible for equipment.

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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).
  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.

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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

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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 3008.3
Date Approved January 1, 2017
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3008-3 from 110.3

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3008.2 Gift in Kind Procedure

Gift in Kind Procedure

Procedure # 3008.2; 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

Gift in Kind (GIK) refers to a non-monetary gift received by the University. Prior to taking custody, UW–Madison departments complete a GIK Routing Form, obtain approval from their Dean’s or Director’s Office, and send to the Division of Business Services, Accounting Services, Gift Management. Support for the gift’s value must be included with the GIK Routing Form. If valuation has not been sufficiently established, Gift Management may advise the recipient of further procedures to be followed in accepting the gift. No additional reporting is necessary for the purposes of creating inventory records. Property Control routinely reviews Gifts in Kind and creates new inventory records for gifted items valued at $5,000 or more that meet the definition of capital equipment.

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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 Property Administrators (DPAs), Principal Investigators (PIs), Department Managers, Department Chairs, Directors, Deans, and employees responsible for equipment.

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III. Procedure

The following steps represent the overall process for receiving Gifts in Kind:

  1. Prior to taking custody of the equipment, department financial staff must complete the GIK Routing Form, obtain approval from the Dean’s or Director’s Office, and send to the Division of Business Services, Accounting Services, Gift Management to giftmgt@bussvc.wisc.edu. The department must attach support for the gift’s valuation. This may include, but is not limited to:
    1. Independent appraisal by the donor.
    2. Invoice or receipt associated with purchase by the donor.
  2. Gift Management reviews all GIK Routing Forms and supporting documentation. If Gift Management decides that valuation has not been sufficiently established, they may advise the recipient of further procedures to be followed in accepting the gift.
  3. Property Control reviews new GIKs at the end of each month and establishes inventory records for gifted items valued at $5,000 or more that meet the definition of capital equipment. Property Control obtains information from the GIK Routing Form and supporting documentation.
  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, monthly.
  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 tag or explaining on the Capital Equipment Confirmation Form if tag cannot be affixed, changing/confirming the accuracy of the information pre- listed 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 gifted capital equipment item within a reasonable time period, the DPA should contact Property Control with all information available regarding the gift source and department personnel involved with accepting the gift. Property Control will investigate with Gift Management.

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IV. Contact roles and responsibilities

wdt_ID Gift In Kind Dept Fin Staff Responsible Employee DPA Gift Mgmt Property Control
1 1) Complete GIK Routing Form, obtain approval from dean or director, and send to Gift Management prior to taking custody. X
2 2) Review documents supporting GIK valuation, advise if further procedures necessary. X
3 3) Review GIK and establish inventory records for gifted items valued at $5,000 or more. 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 gifted 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. X
7 7) Complete/update the asset record in the asset management system. X
8 8) Follow up with DPA if full information not returned or, DPA contacts Property Control if they haven’t been contacted within two (2) weeks regarding a recently arrived gifted asset. X 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 3008.2
Date Approved January 1, 2017
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3008.2 from 110.2

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3008.1 Recording and Tagging Capital Equipment Procedure

Recording and Tagging Capital Equipment Procedure

Procedure # 3008.1; 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

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 Department Property Administrator (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.

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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, Principal Investigators (PI’s), lab managers, department chairs, directors, deans, and all employees responsible for capital equipment.

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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: ShopUW+ Shopper Lookup Website
    5. Inter-departmental billings: Journal Entry Tool comments
    6. Cost transfers: Cost Transfer Tool Cost Transfer Policy (UW-4013).
  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.

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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

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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 3008.1
Date Approved January 1, 2017
Revision Dates Jan. 19, 2021 – Procedure Number changed to 3008-1 from 110.1

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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: UW-3009 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. Related references
VI. 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. Related references


VI. Revisions

Procedure Number 3009.1
Date Approved December 12, 2017
Revision Dates Jan. 19, 2021 – Changed Procedure Number to 3009.1 from 130.1

Cash Only Deposit Form

This form is used for cash deposits only. These deposits are hand delivered to the Bursars Office in a sealed envelope at 333 East Campus Mall # 10501. Cash deposits cannot be mailed or delivered through campus mail. These cash deposits relate to customer payments for the sale of goods/services, vendor payments for rebates, duplicated payments, reimbursement of travel, over payments, and/or returned merchandise.

This form is used for cash deposits only.


Download Cash Only Deposit Form (Excel)

Per Wisconsin State Statutes, (Chap. 20.906 Wis. Statutes), all payments/receipts collected or received are to be deposited within 5 business days.

The Bursar’s Office is cashless and does not accept cash deposits. Departments are responsible for depositing all cash collected or received with US Bank directly within the time frame established by Wisconsin State Statute 20.906.

All moneys collected or received from customers or vendors of the University of Wisconsin–Madison (the University) belong to the University. These moneys may not be deposited with the University of Wisconsin Foundation or to an individual’s private bank account. Moneys collected or received may not be deposited into the University’s replenishable/contingent bank accounts, including petty cash accounts and custodian fund checking accounts, or be used to purchase supplies or services.

To avoid theft or loss, it is recommended departments deposit cash at a US Bank branch multiple times a week; however, collected or received cash must be deposited weekly at a minimum. Cash deposits must be hand delivered to a US Bank branch; they cannot be mailed to US Bank. Departments are expected to ensure appropriate cash handling procedures, management oversight and internal controls (for example separation of duties) are in place over cash deposits. 

Deposit procedures

Follow the deposit procedures below to ensure funds are deposited appropriately and are timely posted to your department’s funding string:

Recurring cash deposits

Order US Bank deposit tickets and plastic bank bags from UW Cash Management to make these deposits directly at a US Bank branch. These deposits will be coded to your department clearing account. 

One-off cash deposit

  • Deposit cash at a US Bank branch with a generic deposit ticket containing UW–Madison banking details. (Please request banking details from UW Cash Management at cashmgt@bussvc.wisc.edu, as these are not published.) Email a completed Cash Only Deposit Form to cashmgt@bussvc.wisc.edu, which will ensure cash is coded to the appropriate accounting string.

Completing the Cash Only Deposit Form

Reminders:

  • If the receipt relates to a refund of an expenditure, use the same funding string used for the original expenditure.
  • For deposits relating to prior year Fund 101 expenditures, use the following funding string: Fund 131, Project 131A006, account code 9209.
  • Any revenue deposits related to Funds 233 must be submitted with a gift routing form and donor intent documentation.
  • Any revenue deposits related to Fund 161 must be submitted to UW System for deposit at 780 Regent St, Suite 305, Attn: Trust Fund Office
  • All deposits using account code 9050 and 9051 require a program code to be 0, 1, 2, 3, 4, 5, 6, 7, 8, 9 or F.
  • The Tax Code field is used to calculate sales tax and can only be selected for account codes beginning with 9XXX.

Note: After filling in each field, use the tab key to move to the next field.

Contact Information (person completing form)
Prepared By: Enter full name of person preparing form.
Department Name: Enter full name of the department making deposit.
Dept ID: Enter 6-digit department identification code.
Date: Enter date the form is completed.
Phone No.: Enter the preparer’s telephone number (xxx) xxx-xxxx.
Email: Enter the preparer’s e-mail address.
Receipt Box: Check the box if the deposits relate to customer payments for the sale of goods/services
Refund of Expense Box: Check the box if the deposit relates to vendor payments for rebates, duplicated payments, reimbursement of travel, over payments, and/or returned merchandise.
Reason for Deposit: Enter reason for the deposit.
Funding, Amount, and Description Fields: Funding Fields: Codes
Dept: Enter 6-digit Division/Department ID.
Fund: Enter 3-digit Fund ID.
Prog: Enter 1-digit Activity Code either 0, 1, 2, 3, 4, 5, 6, 7, 8, 9, F, R.
Project: Enter 7-digit Project ID which will start with “PRJ” followed by a sequence of 4 alphanumeric characters or start with the 3-digit Fund Code.
Act ID: Leave blank
Account: Enter 4-digit SFS account code (numeric numbers).
County Tax Code Name: The Tax Code field is used to calculate sales tax and can only be selected for account codes beginning with 9XXX. If sales tax applies to sale, pick the county name which relates to the sale from drop down list.
Amount: Enter gross amount of deposit relating to the funding line as a negative amount (credit).  Remember to enter the amount as a number, no commas, followed by a decimal point for the cents.
Description: Enter the customer/vendor name followed by brief describe which will help you identify this deposit (max 30 alpha numeric characters).
PO No. or Journal No.: When applicable, enter the PO or Journal ID related to this deposit (max 10 alpha numeric characters). For vendor refunds, enter PO number.
Voucher No.: For vendor refunds, enter the Voucher ID in WISER which relates to this refund (max 10 alpha numeric characters).
Invoice No.: When applicable, enter the Invoice No. related to this deposit (max 12 alpha numeric characters).
Total Deposit: Leave as is; will auto fill based on amounts entered above.
Currency section: Enter the number of coins/dollars per each currency type. Total currency must equal total deposit.
Preparer’s Signature: All forms must be signed by the preparer.
Department Approvals: All forms must have the department’s supervisor signature, date, printed name and phone number.
Received by Cash Management: Leave as is; Cash Management will put initials and date when received.

Email questions about this form to cashmgt@bussvc.wisc.edu.