Capital Asset Management Training


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  • Good morning, thank you all for coming today and thank you for the opportunity to present to you some information relative to Plant Funds that I hope gives you a better understanding of the topic.
  • Capital Asset Management Training

    1. 1. The Office of the Comptroller Capital Asset Management November, 2008 Updated July 2009
    2. 2. Capital Asset Management <ul><li>Agenda </li></ul><ul><ul><li>Policies – 9 slides, wordy </li></ul></ul><ul><ul><li>Phases and Players 12 slides </li></ul></ul><ul><ul><ul><li>Circular A110 </li></ul></ul></ul><ul><ul><li>Who to call – 1 slide </li></ul></ul><ul><ul><li>Where to find this presentation </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>What are we talking about? </li></ul></ul><ul><ul><li>Equipment / Furniture and Fixtures </li></ul></ul>
    3. 3. Capital Asset Management GWU Policies <ul><li>Where can they be found? </li></ul><ul><li> </li></ul><ul><li>Under the Policies tab, Finance, Accounting and Budgeting, Fixed Assets Management </li></ul><ul><li>What are the policies </li></ul><ul><li>Fixed Asset Management </li></ul><ul><ul><li>Capital Asset Management Policy </li></ul></ul><ul><ul><li>Furniture and Equipment Capitalization Threshold </li></ul></ul><ul><ul><li>Surplus University Property </li></ul></ul><ul><ul><li>Electronic Equipment Recycling Policy (Public Safety and Risk Management)   </li></ul></ul>
    4. 4. Capital Asset Management GWU Policies <ul><li>The Capital Asset Management Policy </li></ul><ul><ul><li>Consistent with the University’s Procurement Card (P-Card) Policy </li></ul></ul><ul><ul><li>Purchase of any item with a unit cost of $2,500 or greater must be ordered through the Procurement Department on a Purchase Order and recorded through the Enterprise Accounting System (EAS). </li></ul></ul><ul><ul><li>Since Capital Assets are defined as items having a value of $2,500 or greater, all Capital Assets must be purchased through the Procurement Department. </li></ul></ul>
    5. 5. Capital Asset Management GWU Policies <ul><li>FURNITURE AND EQUIPMENT CAPITALIZATION THRESHOLD </li></ul><ul><ul><li>A capital asset is defined as an article or a system of </li></ul></ul><ul><ul><ul><li>Non-expendable, tangible property </li></ul></ul></ul><ul><ul><ul><li>Having a useful life of more than one year </li></ul></ul></ul><ul><ul><ul><li>A per-unit value of $2,500 </li></ul></ul></ul><ul><ul><ul><li>Is used in the operations of the University (i.e., the item is not purchased as an investment or held for resale). </li></ul></ul></ul>
    6. 6. Capital Asset Management GWU Policies <ul><li>FURNITURE AND EQUIPMENT CAPITALIZATION THRESHOLD (Continued) </li></ul><ul><ul><li>The cost of an asset includes: </li></ul></ul><ul><ul><ul><li>the cost of the item and </li></ul></ul></ul><ul><ul><ul><li>all costs necessary to make the asset available for use. </li></ul></ul></ul><ul><ul><li>The subsequent purchase of additional components that provide new functionality to a capital asset should be added to the cost of the asset. </li></ul></ul>
    7. 7. Capital Asset Management GWU Policies <ul><li>FURNITURE AND EQUIPMENT CAPITALIZATION THRESHOLD (Continued) </li></ul><ul><ul><li>Replacement of worn out parts, such as light bulbs or filters, are </li></ul></ul><ul><ul><ul><li>considered to be expendable supplies (are expected to be replaced periodically) </li></ul></ul></ul><ul><ul><ul><li>not added to the cost of the capital asset </li></ul></ul></ul>
    8. 8. Capital Asset Management GWU Policies <ul><li>Surplus University Property </li></ul><ul><ul><li>What is it </li></ul></ul><ul><ul><ul><li>property that wears out, </li></ul></ul></ul><ul><ul><ul><li>becomes obsolete or </li></ul></ul></ul><ul><ul><ul><li>is no longer needed in operations, </li></ul></ul></ul>
    9. 9. Capital Asset Management GWU Policies <ul><li>Surplus Property Policy (Continued) </li></ul><ul><li>What do we do (continued) </li></ul><ul><ul><li>The following types of dispositions of surplus property must be handled by Materials Management. </li></ul></ul><ul><ul><ul><li>Sales of surplus property with a unit value greater than $500 </li></ul></ul></ul><ul><ul><ul><li>Sale of surplus property that has a registered title (e.g. automobiles) </li></ul></ul></ul><ul><ul><ul><li>Donations of surplus property </li></ul></ul></ul>
    10. 10. Capital Asset Management GWU Policies <ul><li>Surplus Property Policy (Continued) </li></ul><ul><li>CONVERSELY </li></ul><ul><ul><li>Department Heads may dispose directly of surplus property that does not meet the requirements set forth above provided that the following requirements are met: </li></ul></ul><ul><ul><ul><li>Transfers to other GW departments are reported to the Office of the Comptroller (Change in Fixed Asset Status Form) </li></ul></ul></ul><ul><ul><ul><li>Property may be sold to third parties, including employees for personal use provided the fair market value of the property does not exceed $500.00. Sales must be made at fair market value. </li></ul></ul></ul><ul><ul><ul><li>Release and Waiver Form , Bill of Sale Form , and Change in Fixed Asset Status Form approved by the appropriate department manager. Completed forms must be sent to Materials Management with a copy to Capital and Investing Reporting. </li></ul></ul></ul>
    11. 11. Capital Asset Management GWU Policies <ul><li>Surplus property Policy (Continued) </li></ul><ul><li>Property Acquired through Sponsored Projects </li></ul><ul><ul><li>Prior to disposing of surplus property purchased with sponsored project funds the department head first must secure approval for the proposed disposition by completing the Change in Fixed Asset Status Form and submitting it to the Office of Vice President for Research (OVPR). </li></ul></ul><ul><ul><li>Find our form </li></ul></ul><ul><ul><li> </li></ul></ul>
    12. 12. Capital Asset Management x x x x Office of the Comptroller x x Facilities x x Procurement x x x x Schools and Departments Disposition Inventory Movement Acquisition The Four Phases of Capital Asset Mgt
    13. 13. Acquisitions Department identifies need for asset Department prepares purchase requisition Department selects vendor? No Department sends supporting document to purchasing Yes Procurement prepares purchase order Asset is received Department receives goods (in Oracle/EAS) Invoice is received AP performs 3-way match of invoice, purchase order, and receipt information AP pays invoice
    14. 14. Acquisitions – Gifts or Loans Gift or Loan received Department notifies Office of the Comptroller Department notifies Office of the Comptroller Grant related? Department notifies OVPR No Yes
    15. 15. Acquisitions – The CIR Team’s Responsibilities <ul><li>Provide direct administrative support to the operating department regarding the control and maintenance of Capital Assets. </li></ul><ul><ul><li>Tagging assets </li></ul></ul><ul><ul><li>Record keeping - FAS </li></ul></ul><ul><ul><li>Ledger reconciliations – GL and GM vs. FAS </li></ul></ul><ul><li>All Capital Asset records are maintained in accordance with OMB Circular A-110 and GAAP. </li></ul>
    16. 16. OMB Circular A-110 <ul><li>Description of the asset </li></ul><ul><li>Manufacturer’s Serial No. </li></ul><ul><li>Model Number </li></ul><ul><li>Award Number- PTA </li></ul><ul><li>Title Vesting Information </li></ul><ul><li>Acquisition Date </li></ul><ul><li>% of Federal Participation </li></ul><ul><li>Location of the asset </li></ul><ul><li>Condition of the asset </li></ul><ul><li>Unit cost </li></ul><ul><li>Disposition information </li></ul><ul><li>Federally owned equipment shall be identified as such </li></ul><ul><li>Physical inventory must take place every 2 years. </li></ul><ul><li>Controls to adequately safeguard asset from loss, damage or theft. </li></ul><ul><li>Adequate maintenance procedures should be in place to keep equipment in good condition </li></ul><ul><li>Highest possible sale procedures </li></ul>
    17. 17. Movement Department identifies asset to be moved to a new location Department head authorizes form Department authorizes form Grant related asset? OVPR authorizes form No Yes Department completes a Change in Fixed Asset Status Form Office of the Comptroller updates database for new location Office of the Comptroller verifies asset in new location Office of the Comptroller verifies asset to be moved Department sends form to Office of the Comptroller Facilities moves asset Department completes facilities FIXit request
    18. 18. Movement of Assets <ul><li>The inventory process can only be successful if the database used to track assets is accurate. </li></ul><ul><li>The responsibility of maintaining the database’s accuracy falls on the CIR team </li></ul><ul><li>The CIR team relies on the individual schools, departments and asset custodians to communicate any changes to the asset’s location or usefulness. </li></ul>
    19. 19. Inventories <ul><li>Operating Departments </li></ul><ul><ul><li>Responsible for maintaining the asset’s working condition </li></ul></ul><ul><ul><li>Responsible for maintaining an accurate location listing for all their assets </li></ul></ul><ul><li>Capital and Investing Reporting </li></ul><ul><ul><li>Responsible for validating the existence, location and condition of each Capital Asset </li></ul></ul><ul><ul><li>Sponsored project assets are inventoried pursuant to OMB Circular A-110 guidelines (every 2 years) </li></ul></ul><ul><ul><li>The ledgers are reconciled to the inventory observed. </li></ul></ul>
    20. 20. Disposals Department decides asset available for disposal, sale, donation, or transfer Department completes Change in Fixed Assets Form Is the asset grant related? Department head authorizes form No OVPR also authorizes form Yes Department contacts ISS ISS ensures confidential programs / files are erased Department forwards form to Office of the Comptroller and Procurement Facilities removes asset Department completes facilities FIXit Request Is the asset a computer or electronic? Yes No
    21. 21. Disposal Special Rules Reminder <ul><li>Special rules apply to assets under sponsored project funding. Please check the provisions of your award and with OCRO </li></ul><ul><li>If an Asset is Sold </li></ul><ul><ul><li>Material Management and CIR should be contacted to provide estimated market value and the current Net Book Value. </li></ul></ul><ul><ul><li>If the value is under $500, the department can handle the sale directly. </li></ul></ul><ul><ul><li>If the value is over $500, the Materials Management department is required to handle the sale. </li></ul></ul><ul><ul><li>Required Paperwork: Change in Fixed Asset Status form, Release of Waiver form and Bill of Sale </li></ul></ul><ul><li>If Donated </li></ul><ul><ul><li>The same steps as a sale should be followed </li></ul></ul><ul><ul><li>Find our form at </li></ul></ul><ul><ul><li> </li></ul></ul>
    22. 22. Disposal- Internal Transfers <ul><li>Internal Transfers </li></ul><ul><ul><li>The operating department completes a Change in Fixed Asset Status Form ( </li></ul></ul><ul><ul><ul><li>The form is approved by the department head </li></ul></ul></ul><ul><ul><li>The form is forwarded to the Capital and Investing Reporting Team in the Office of the Comptroller </li></ul></ul><ul><ul><li>The asset is transferred to the receiving department </li></ul></ul><ul><ul><li>Capital and Investing Reporting will contact receiving department to confirm receipt and may ask to schedule time to visually inspect the asset in its new location. </li></ul></ul><ul><ul><li>The department should keep a copy of all documents </li></ul></ul>
    23. 23. Who to call in Fixed Assets <ul><li>For asset recognition and </li></ul><ul><li>For asset tagging </li></ul><ul><ul><li>Ellen Thompson 703-726-4216 [email_address] </li></ul></ul><ul><li>For inventory scheduling and </li></ul><ul><li>For asset movement, transfer or disposal </li></ul><ul><ul><li>Patrick Gerhold 703-726-4195 [email_address] </li></ul></ul><ul><li>For capital lease information </li></ul><ul><ul><li>Jeff Jones 703-726-4212 [email_address] </li></ul></ul><ul><li>For all other questions </li></ul><ul><ul><li>Cassandra West 703-726-4054 [email_address] </li></ul></ul><ul><ul><li>Dan MacGregor 703-726-4115 [email_address] </li></ul></ul>