Original Issuance Date: September 29, 1977
Last Revision Date: February 16, 2023
1. Policy Purpose
The purpose of this policy is to establish guidelines and reporting procedures for reimbursement from the Fund 999 in the event of damage to University of Wisconsin (UW) System property.
2. Responsible UW System Officer
Director of Risk Management
3. Scope and Institutional Responsibilities
This policy applies to UW System institutions and property owned by the UW System.
4. Background
When damage to UW System property occurs, institutions may receive reimbursement for their losses from the State Self-Funded Property Program (SSPP). In case of subrogation, reimbursement may also come from responsible parties and/or their insurers. Fund 999 was established to account for the receipt and disbursement of proceeds from losses without the need to encumber regular departmental operating budgets. This policy establishes guidelines for the operation of fund 999, use of the revenue and associated accounting and reporting procedures.
5. Definitions
None listed.
6. Policy Statement
Reimbursements from SSPP and other sources and all disbursements of such receipts, shall be accounted for through fund 999.
An individual at each institution, generally the Institution Risk Manager (IRM) or the IRM’s designee, shall maintain a record of the proceeds and expenditures for each claim and periodically reconcile fund balances.
After an evaluation of the loss, the IRM or the IRM’s designee must report an estimate of the total loss and scope of work for recovery to the UW System Risk Management and SSPP. A claim number is assigned to the loss. The recovery process should proceed as expeditiously as possible.
The department that incurred the loss may then begin making replacement expenditures from fund 999 up to the amount of the predetermined scope of work expenditure limit or follow other prescribed campus steps. Expenditures, which must be approved by the IRM or the IRM’s designee, must be for items that are identical or similar in nature to the lost property and/or services needed to restore it to its original use.
All insurable institutional losses are reimbursed by SSPP. It is the responsibility of the IRM or the IRM’s designee to monitor the activity of each loss account on a regular basis. All invoices for scope of work charged to the 999 fund are collected and reviewed by the IRM or the IRM’s designee.
When all work is done, all invoices related to the claim are itemized on a Proof of Loss (DOA-6413) form and submitted to SSPP for evaluation and reimbursement for the loss. Upon approval, a check from SSPP will be sent to the campus.
The IRM or the IRM’s designee will be responsible for the consistent accounting of all deposits and proceeds relating to the restoration of losses. This account should be summarized monthly to reconcile all Fund 999 activity. Preparation of interim reports on Fund 999 activity will be at the discretion of the campus.
Appropriate deductibles will be applied and is charged back to the Institution’s department incurring the loss. Each claim must be reconciled to a balance of zero.
UW institutions must reconcile the receipts and disbursements associated with each loss on at least an annual basis.
7. Related Documents
State-Self Funded Property Program
2. Policy History
Revision 4: February 16, 2023
Revision 3: February 12, 2013
Revision 2: June 16, 1998
Revision 1: October 8, 1991
First approved: September 29, 1977
3. Scheduled Review
February 2028