This memo is to alert you to a potential problem with gifting items to the University from its various Foundations.
Gifts of property that have been received by a school from its related foundation must be documented, as outlined in the policy noted in the next paragraph. If there is no documentation of ownership by the University, then if a loss of that gifted property occurs the claim cannot be honored. It is the responsibility of the department suffering the loss to provide evidence that the property belongs to the University in order to receive insurance compensation for the loss. Not recording such assets can result in the property not being insured properly and also will result in understating the assets of the University.
The University has a policy and procedures for recording gifts of property received from donors outside of the University such as alumni, friends, and corporations. For more information on these policies, we refer you to University Policy EXT-006. - (http://uvapolicy.virginia.edu/policy/EXT-006). The procedure is structured such that the donor gets a gift receipt and the University obtains the information necessary to record the property in the accounting records.
We have learned that this property gift procedure is not being consistently followed when gifts of property are received by University schools/departments from University-related foundations. Property from University-related foundations should be handled in a similar manner to gifts of property received from outside donors. This will improve our ability to record and manage property received from related foundations.