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Capital Asset Purchase and Authorization Policy (105.005)

Capital Asset Purchase and Authorization Policy (105.005) - Policies, Administrative, UWMF, UWMF-wide, Finance

105.005


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Capital Asset Purchase and Authorization Policy
(Effective July 2016)

Capital Assets Requests and the Budgeting Process
• ALL capital budget requests for the next fiscal year must be submitted to the Finance
Committee’s Capital Budget Workgroup into the budget software during the budget process.
These requests must be entered by the operating expense budget deadline. Approval must be
granted by this workgroup as a part of the annual budget process before inclusion in the budget.
• Items or projects to be paid for out of Academic Department Reserves must also be requested
through the Finance Committee’s Capital Budget Workgroup.
• The Budget team will provide a list of approved capital items or projects following submission.

Non-budgeted Item or Project Requirements
• Purchasing of any item or project that was not approved as part of the budget process or with a
cost greater than the approved budget amount must be approved by a member of Senior
Management
• Items or projects not approved in the annual budget process exceeding $50,000 require approval
from the Chief Administrative Officer or Director within Finance prior to purchasing to confirm
verification that there are sufficient funds available. The item or project will be presented for
approval by the Financial Reporting team during the CADAF processing and is not necessary prior
to submitting the CADAF to Finance

Purchase Approvals and the Purchasing Process
1. Complete and submit a Capital Asset Documentation & Authorization Form (CADAF) according to
CADAF instructions.
2. The Financial Reporting team will process the CADAF within three business days of receipt.
Processing includes verification of proper form completion and authorizations. Notification of the
Purchase Authorization Control number will be sent to the requesting parties and (if required) the
appropriate Purchasing department. Orders may not be submitted prior to receiving the Purchase
Authorization Control number. Ordering should be compliant with the established Requisitioning
Policy.
3. The Purchasing department will research pricing information and inform Finance of any material
changes to the approved amount within three business days and prior to ordering. A material
change for capital is an increase of more than $1,000 or 5% (whichever is greater) of the current
authorized amount. For all material changes authorization will need to be updated for Finance
prior to ordering.
• All requisitions, purchase orders and vouchers related to the purchase of the item or project
require the Purchase Authorization Control number provided by Finance. All open Purchase
Authorization Control numbers will be closed June 30th of the current fiscal year. Any invoices
received after this date will be counted against the next fiscal year capital budget, and depending
on the status of the purchase or project, may require re-authorization. This determination will be
made and notified by the Finance department


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Placed-in-Service Notification
• Notify Finance when the item is received and placed-in-service or when the project has been
completed if the depreciation start date was not provided or known during the CADAF process.
Email the Financial Reporting team (contact information provided below) with the information and
include the Purchase Authorization Control number for reference; also indicate if any additional
invoicing should be expected. This key information is used in determination of personal property
tax liability and depreciation

Finance Department Final Coding and Depreciation
• Invoices received in the Accounts Payable department for item or project purchases made that
meet the Capital Asset Definitions but without prior authorization will be held and not paid. The
Financial Reporting team will notify the appropriate clinics or departments and initiate the process
for approval and a Purchase Authorization Control number. This may result in late payments or
loss of early pay discounts
• The Financial Reporting team will enter all new items or projects into the Asset Management
System for calculation of monthly depreciation and creation of entries to the financials
• The Financial Reporting team will forward a list of new assets added each month to the Director of
Risk Management to ensure the assets are covered in UWMF’s insurance policies

Points of contact for Capital Asset budgeting and purchasing process questions:

General Budget
Financial Reporting, Finance Ken Klein
I/D: 414-FIN Financial Reporting Manager Financial Analysis, Finance
Ph: 608-821-4895 Ph: 608-821-4238
Fax: 608-821-4221 Fax: 608-821-4221
financialaccounting@uwmf.wisc.edu ken.klein@uwmf.wisc.edu

Materials Management IS/ Telecom
Shelly Anderberg Brenda Austin
Senior Purchasing Agent, MM End User Device Technician, IS
Ph: 608-826-6853 Ph: 608-829-5207
Fax: 608-836-3434 Fax: 608-833-1413
shelly.anderberg@uwmf.wisc.edu brenda.austin@uwmf.wisc.edu