The University of Iowa is a broad-based public university of international stature, recognized for its academic achievement and leadership in research. University of Iowa Health Care serves as the teaching hospital and comprehensive medical center for the State of Iowa. As part of its mission, University of Iowa Health Care, in conjunction with UI Carver College of Medicine and other health science colleges at the University of Iowa, provides world-class family-centered health care, extensive medical research, and comprehensive teaching programs for many health care professions.
THE OBJECTIVE
UI Capital Assets Management Department was looking for a partner to assist in a turnkey solution for the following objectives:
- Annual Building Componentization & Equipment Inventories
- Increasing equipment tracking efficiency with less disruption to staff
- New Hospital Acquisition FMV of facility and equipment costs
- Certification of engagement results-verified, auditable, to use for financial reporting and optimizing federal cost reimbursement
THE CHALLENGE
With facilities and equipment spread out over 2,100 acres, and continued growth within its vision, University of Iowa is home to 31,000+ students and employs approximately 19,000 full-time faculty and staff. University of Iowa Health Care employs 13,600+ doctors, dentists, and additional staff members, to support all aspects of patient care services. UI Capital Assets Management was looking for a qualified partner that would meet the goals and objectives and mitigate risk in managing the extensive asset listings. HCA, who has worked on numerous related projects, utilizes extensive expertise, current technologies, and best practice solutions.
HCA Asset Management possesses strengths in those areas and has experience with dozens of similar programs throughout the United States.
HCA, who has been providing building componentization services annually for the University of Iowa since FY2000, was awarded a competitive bid of a comprehensive capital equipment inventory and reconciliation for all University of Iowa & University of Iowa Health Care assets in FY2010. HCA continued providing annual services and was awarded an additional 5-year contract through competitive bid in 2018 and again 2023 to continue physical asset management services. In 2023 HCA completed a comprehensive “wall to wall” RFID tagging and technology deployment project to enhance property management efficiencies and optimize federal indirect cost recoveries.
In conjunction with the componentization of capital costs, HCA provides inventory and financial reconciliation services for the entire University of Iowa Health Care population of assets and approximately ½ population of the University of Iowa assets annually, to meet 2-year inventory tracking and reporting requirements.
We value our relationship with the University and have the pleasure of a continued partnership with them through 2029.
“HCA is always available for my questions, always informative, and answers questions with a smile. They are all professional and have become a partner with our physical inventories and our capitalized componentizations. Love working with HCA.”
LeAnn Smith MBA
Director: Capital Assets Management & Capital Project Accounting
THE RESULTS
The building & equipment depreciation components represent a significant portion of the F&A indirect cost rate agreement, with no cap. Because of the timeframe that the University of Iowa has utilized HCA for componentization services the impact has been seen on both new research building construction as well as upgrades and renovations to older facilities research space. The RFID tag and technology deployment has provided increased efficiencies, less staff involvement, and with greater accuracy. Typical results range between 98%-99% of assets accounted for and reconciled.
These services have provided the UI Capital Assets Management with audit compliance, increased stewardship, and a positive measurable impact on the building and equipment depreciation components of the F&A indirect cost rate calculations/submissions and recoveries.