Moveable Capital Equipment Management (2.29)

Moveable Capital Equipment Management (2.29) - Policies, Administrative, UWHC, UWHC-wide, Fiscal


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Administrative (Non-Clinical) Policy
As of July 1, 2017, this administrative policy applies to the operations and staff of legacy UWHC.
Effective July 1, 2015, the legacy operations and staff of UWHC and UWMF were integrated into the
University of Wisconsin Hospitals and Clinics Authority (UWHCA). All administrative policies are being
transitioned to apply UWHCA-wide, but until future revision to this policy #2.29, it applies only to the
operations and staff of legacy UWHC.

Policy Title: Moveable Capital Equipment Management
Policy Number: 2.29
Effective Date: July 3, 2017
Chapter: Fiscal Affairs
Version: Revision


To establish guidelines for a uniform and systematic method for management of moveable capital
equipment. See related Hospital Administrative policies 5.49-Returned Materials Authorization (RMA);
2.30-Capital Equipment Purchases; 5.47-Surplus Property and 5.51-Off-site Storage of UWHC Property.


A. Fiscal Affairs is responsible for review of equipment invoices paid against purchase orders issued
through the Strata system.

B. Fiscal Affairs is responsible for assigning a depreciation code and start date for the Capital Asset
Records to initiate depreciation for assets costing under $100,000; issuing Capital Equipment
decals, updating of Capital Asset Records for adjustments, transfers between Hospital
departments and disposal; and reconciling of departmental physical inventories of capital
equipment with the Capital Asset Records.

C. Department heads are responsible for the protection of capital assets, for conducting an annual
physical inventory of their capital assets and informing Fiscal Affairs of the start date of assets
costing over $100,000.

D. Plant Engineering is responsible for redistribution and disposal of surplus equipment.


Accessory Equipment - An add-on item of any cost, which becomes part of the original capital
equipment purchase (coded 162100).

Capital Asset Record - A detailed subsidiary ledger kept by Fiscal Affairs for each item of capital

Capital Equipment - Single item of equipment with a cost of $5,000 or more (as of July 1, 2014) and
useful life of 2 years or more (coded 162100). Group purchases of equipment under $5,000 (as defined
above) each but exceeding $100,000 in total may be classified as capital equipment upon review and
approval by Fiscal Affairs.

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Capital Equipment Decal - A white mylar decal with an identification number that is attached to
moveable capital equipment for accounting purposes.

Fixed Equipment/Building Improvements - Capital equipment items that are permanently affixed to the
building or have become an integral part of the building (coded 162000 and a Stratajazz project ID).
Furnishing and equipment acquisitions which are part of a facilities project may be classified as capital
equipment when the item meets the capital asset criteria established in policy 2.30 and upon review and
approval by Fiscal Affairs.

Minor Equipment - Single item of equipment with a cost less than $5,000 (as of July 1, 2014), or a
group purchase of same items with a total cost less than $100,000; useful life may or may not exceed 2

Moveable Equipment - Capital Equipment items not permanently affixed or an integral part of the

Surplus Equipment - Equipment that is no longer needed by the department.


UWHC Form #604-Equipment Transfer/Turn In Document


A. UWHC Fiscal Affairs is responsible for assigning capital equipment decals and initiating a
Capital Asset Record within the PeopleSoft Asset Module for each item of capital equipment
1. A capital equipment decal will be assigned to each item of equipment or system costing
$5,000 or more and coded 162100' and will assign (1) capital equipment decal for group
purchases of the same items costing $100,000 or more and coded 162100’, or upon receipt
of a Plant Engineering Service Request, that indicates an item had been manufactured at a
cost of $5,000 or more. Fiscal Affairs will print and send decals to departments along with
a form to complete for the equipment serial number, model number and location. This form
should be returned to Fiscal Affairs for entry into the Capital Asset record ledger. The
Capital Asset Record will contain the decal number (Asset ID number), a description of the
item, location and useful life. Serial/model number and manufacturer are entered if
available. Capital Asset Records are maintained by cost center.

B. Fiscal Affairs is responsible for documenting the receipt of capital equipment into the Capital
Asset Record and maintaining the detailed subsidiary ledger.
1. Fiscal Affairs will capitalize the equipment on the General Ledger when the invoice is
vouchered and placed into service, assign a depreciation code and start date on the Capital
Asset Record to initiate depreciation of the asset.
2. Fiscal Affairs will establish a schedule for conducting an annual physical inventory and
produce a listing of capital equipment for each department in accordance with that
3. Fiscal Affairs will be responsible for reconciliation of additional equipment found in
inventory and for deletion of equipment that cannot be located.
4. Fiscal Affairs will update the Capital Asset Records from the information submitted by the
departments from the physical inventory.
5. Fiscal Affairs will send information monthly of all capital equipment assets added to
Clinical Engineering and Plant Engineering so that assets can be entered into department
Asset Management databases.

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6. Clinical Engineering will send information monthly of all medical equipment assigned a
FMIS number so that additional tracking information can be entered into the Capital Asset

C. Department heads are responsible for the custody and protection of capital assets.
1. Departments are responsible for ensuring that decals are attached to the correct
equipment. If they are unable to attach the decal, the departments must keep the decal and
maintain a log of their capital equipment including equipment which cannot accommodate
a decal.
2. Requests for the return of material to vendors for repair, exchange, or credit will be
initiated through Central Services noting the UWHC Asset ID, decal and serial number of
equipment being removed from service. This process is initiated by completing and
submitting a Return Material Authorization Form found on the CS page of U-Connect.
3. Departments desiring in-house repair of equipment by either Clinical or Plant Engineering
will contact the applicable department. If transportation is needed, departments will arrange
equipment pick up/delivery to Plant Engineering.
a. Departments should maintain a log of equipment sent in repair. This log should
include the decal number, UWHC Asset ID, equipment description, and date
sent/date returned or other disposition.
b. If it is determined that the equipment cannot be repaired to its original intended use
the owning Department along with Fiscal Affairs will be notified that the equipment
has been retired and sent to surplus or salvaged for spare parts as appropriate..
4. Departments desiring to place equipment into storage should refer to Hospital
Administrative policy 5.51-Off-site Storage of UWHC Property.
5. Departments desiring to transfer equipment to another department should contact
Transportation. Transportation will coordinate notifying Clinical Engineering and Fiscal
Affairs with information on the equipment transfer. Departments desiring to turn in surplus
or non-operational equipment should refer to Hospital Administrative policy 5.47-Surplus
6. Departments are responsible for conducting an annual physical inventory of all capital
assets belonging to the department, updating the capital equipment listing as necessary, and
returning the listing to Fiscal Affairs for processing. The department should record the
disposition of any asset no longer assigned to the department and list any capital asset
found in inventory that should be added to the records, along with the purchase


Sr. Management Sponsor: VP, Facilities & Support Services
Author: Director, Clinical Engineering; General Accounting Manager
Reviewer: Plant Engineering

Approval Committee: UW Health Administrative Policy & Procedure Committee


Elizabeth Bolt
UW Health Chief Administrative Officer