Policy

Original Issuance Date: January 3, 1975
Last Revision Date
: September 2, 2022

1. Policy Purpose

This policy, along with the related procedure, establishes the principles for accounting for interinstitutional transactions and/or when making payments for personal services involving an individual who holds a concurrent appointment at another UW institution.

2. Responsible UW System Officer

Vice President for Finance

3. Scope and Institutional Responsibilities

Institutions shall adhere to this UW System policy and the related procedure. They may elect to develop their own procedures and/or guidance to support compliance with this System and the related policy.

4. Background

5. Definitions

Interinstitutional Transaction: A transaction between two or more UW institutions that requires financial transfers and/or payments between them. These are divided into six broad categories:

  • Category A: Payments for personal services involving an individual with a concurrent appointment at another UW institution.
  • Category B: Transfers of extramural funds from one UW System institution to another.
  • Category C: Budget reallocations between UW institutions.
  • Category D: Payments for specialized or technical services and/or materials received from another UW institution.
  • Category E: Payment for travel expenses of a staff member of another UW institution.
  • Category F: Continuing education workshops, etc., provided by UW departments which are targeted for the general public.

6. Policy Statement

Budget authority should be transferred from one institution to another when the major responsibility for program delivery has moved either permanently or on a one-time basis. The various contractual responsibilities should also transfer with the budget authority. Examples of transfers of budget authority include, but are not limited to: the annual extension allocation to support integrated outreach programs, the American Ethnic Studies Grants, and Urban Corridor Consortium allocations.

When a budget transfer is not appropriate, interinstitutional transactions should be accounted for in a manner that ensures revenues and expenditures are not double counted on a systemwide basis. The accounting treatment and processing procedures for each of the categories of transactions are defined in SYS 324.A, Procedures for Interinstitutional Financial Transactions.

7. Related Documents

Wis. Stat. § 16.417(2)

SYS 237, Utilization of Borrowed Employees/Employee Interchange Agreements

SYS 308, Budget Transfers

SYS 320, Internal Services Chargebacks

SYS 324.A, Procedures for Interinstitutional Financial Transactions

8. Policy History

Revision 4:                   September 2, 2022
Revision 3:                   December 9, 2019
Revision 2:                   May 2014
Revision 1:                   September 1, 1998
First approved:           January 3, 1975

9. Scheduled Review

August 2027