Welcome to the Kuali Days presentation of Capital Asset Management
Today’s discussion will be presented in
Summary of CAMS at a glance-Theresa will detail this for us.
CAMS currently already provides much of this functionality
Note: Identify examples of a few of the modules completed. Functional Specification documents provide overview of module processes. Business Rules list the “Key” requirements of the module. Ex: You must enter a purchase order, asset type, etc. They also provide assumptions of current functionality. Workflow and Routing provides a list of events based on actions/responses. If you key in a po number, the system will retrieve the line items for the PO. If you enter an asset type code-the system will verify the value and require data entry of the manufacturer. Routing rules are based on the structure that your institutions sets-up for where a transaction is routed based on the data entered. Permissions is giving the user an option to set-up various user-access levels. Database Objects are tables that contain values such as: Business Name, Technical Name, Type (Size) and Description Examples of Gaps identified to date relate to need for a flag to identify equipment used in service facility operations. (and to ensure depreciation is excluded) Business Rules:
The Capital Asset Builder is a module with-in the FIS. The CAB application houses the processes and business rules we use to create movable assets. Pre-Asset tagging is used to tag equipment as it is delivered to the organization, before the asset is created (before invoice comes through the procurement system. Today non-movable additions are added to the system using the Add Asset and Add Payment document. As part of the Kuali project these will be incorporated into the asset creation module. We will take a brief look at CAMS FIS documents: Retirement, Transfer, ELR, Fabrication and the Maintenance Screens. In addition we will describe the inventory, depreciation, and the reconciliation processes for IU.
Different types of assets are housed in Capital Asset Management System. We use the Asset Type code and object codes to distinguish between movable and non-movable asset categories. The asset type code is also used to assign the useful life to the asset. The inventory status code is used to distinguish between capital and non-capital. Movable equipment transactions are processed in the Capital Asset Builder. Non-Movable additions like Buildings and Infrastructure are created from a monthly summary report. These transactions are added manually using the Add Asset Document. Transactions are identified by the object sub type code which is generated from the object code. Non-Capital assets can be created by organization using the Add Asset Document.
There are several processes for creating assets at Indiana University. For moveable equipment most transactions are purchased in the procurement system. When the payment request is issued and approved these transactions are loaded into the Capital Asset Builder where the line items can be added, split, and invoices combined to create assets. Non-moveable additions (i.e. Buildings, Infrastructure) are added to the CAMS database using a monthly summary report. Transactions are summarized by account, object code. The account number identified the assets to be created or modifed. Non-capital assets are those assets with a unit cost less than $5,000.00
Information from the General Ledger and the purchasing system is pulled together in the Capital Asset Builder to create assets or add payments. In the CAB load process reconciliation is performed to insure that the records from purchasing system match the amounts extracted from the general ledger. The Invoice Line Item screen is used to process purchase orders. The General Ledger Transaction Screen is where a Financial Document was processed with a capital object code. Assets that have been created can be viewed from the Maintain Asset Screen. We have one person that creates assets for the seven campuses.
A purchase order is retrieved and line items on the PO may need to be added or split to create an asset (s). If there is more than one invoice for a given PO the other invoices will appear at the bottom the screen. Transactions can be retrieved by using the file open which opens all transactions organized by purchase order, and payment request number. In addition you can retrieve transactions by purchase order number. You can change the order of the pending payment requests by opening the transaction by the payment request number. The EPIC CAMS Document will provide details on how to combine the line items to create assets. The transaction at the top of the screen is the TARGET payment request to be processed. Line items can be added (inserted from PENDING) to create assets. Before creating an asset or inserting from pending business rules require the user to allocate the additional changes. !!!Point out the additional charges before leaving the screen. Click on the Allocate button on target invoice, and pending invoice.
Notice that the additional charge lines are gone and the unit cost has increased. Additional charges are allocated first by matching account/object codes, any remaining amounts are allocated to all line items. To insert from Pending Drag scissors to Paste icon on target invoice.
Point out combining line 8 to line 1 To add a line item take the scissors and drop it on the paste icon for the line item. Drag scissors on line 8 and drop on paste icon on line 1.
To create the asset take the line item scissors and drop it on the asset book.
Transactions processed from the Invoice Line Item screen, and the GL Transactions will take you to the Create View Asset Screen. At the create view asset screen the asset creator will copy the asset type, manufacture, model number, and location from the EPIC CAMS Document. The asset type code is used to group assets for depreciation. If pre-asset tagging information exists this information (asset type, manufacture, model, building, and room) would be provided by the organization. If pre-asset tagging information does exist the asset creator would only needed to click on the save button. Once the data is copied are set you are ready to save the asset.
CAMS Tran Type Notice the “NEW” this is the CAMS Trans Type that is selected on the requisition. When capital moveable equipment is purchased the Capital Asset Management System requires information regarding the capital asset category or the type of addition (new/modify existing.) This is accomplished by selecting a “ CAMS Tran Type. ” The addition of the “ CAMS Tran Type ” allows system edits that assist users when assigning object codes for moveable equipment. Asset Categories New Modify Existing * requires an asset number Fabrication * requires an asset number Capital Lease Services that can be capitalized Trade-ins TI is the trade-in indicator. A check in this box indicates the line the trade-in should be allocated to.
Clicking “Yes” will stop the allocation process and allow the processor to check EPIC before allocating the trade-in allowance. The processor should check EPIC for the following: Was all of the line item with the “Assigned to Trade In” with “yes” invoiced? Was the full trade-in allowance invoiced? These questions can be answered by comparing the PO to the PREQ. If the response to these questions is yes then you can click on the “No” button. Clicking on “No” will allocate the trade-in allowance.
The General Ledger Transaction screen is where we apply payments or create assets from Financial Documents. The following financial documents: Cash Receipt, Distribution of Income/expense. General Error Correction, Internal Billing, Service Billing, and Procurement Card documents have a dialog box appear when a capital movable object code is used. The user will be expected to enter an asset number if they are “modifying an asset” or if they are capitalizing the expense for the first time to enter “pending asset information.” When the transaction is approved and the General Leger updated the transaction will be loaded into CAB and processed from the General Leger Transaction screen. Asset creator can expand on the FIS document to view the document. Asset Creator can check the box at the left to select the documents for processing.
This is the screen the user would see when selecting the “modify an asset” option on a Financial Document. If the user does not know the IU tag number or asset number selecting the “asset” button will navigate them to the Capital Asset Lookup screen.
If the expense was capitalized for the first time the user would select “Create New Asset.”
By gathering the information up front the asset creator can select a check box and create the assets for all transitions with minimal intervention. For Financial Transactions all the asset creator needs to do is click on the save button at the Create View Asset Screen.
There are no restrictions for documents, because they route for approval. *Exception * Add asset documents for non-capital additions do not route for approval. Asset Security documents route to BLCAMS workgoup The retirement document has special conditions routing for sold, gift, and external transfer. In addition it routes to the University Capital Asset Office for approval. External Transfers route to account supervisor. The transfer document routes to the FO for the receiving and current owner. ELR routes to the Borrower and FO. Fabrications route to the FO and University Capital Asset Office.
The Capital Asset Management System uses system edits to insure data integrity. Each code (i.e., asset type code, condition, acquisition type) has a lookup table. Some fields have edits based on values selected from lookup tables. For example the Add Asset document will not allow you to enter a capital object code if you have selected a non-capital acquisition type. In addition reconciliation reports are also used to verify additions, retirements, and transfers. Location information is verified against tables populated by the Bureau of Facilities files.
Non-movable Additions Today non-movable assets (i.e. buildings, library books, art) are created on the Add Asset Document. The acquisition type of ‘N’ new identifies to the document that an asset is being created that does not require ledger entries. The use of acquisition type code ‘N’ is restricted by an edit to the University Capital Asset Office. Once an asset has been created for a building account additional payments are added using the Add Payment Document. For buildings, Infrastructure, and land improvements the asset type code identifies the project as CIP. When the project is completed the asset type code will be changed to identify the asset category, and assign the useful life. In addition the create date will be set, and depreciation expense will begin. The Add Asset Document is also used to create non-capital assets. Non-capital assets are added at the discretion of the department. Non-capital assets reside in the same tables as capital equipment; they are distinguished by the inventory status code. Non-capital assets do not have the same restrictions as capital assets. To create a non-capital asset the user must enter an account, campus, asset type code, inventory status, acquisition type and description, all other fields are optional. Non-capital assets are not routed for approval. Gifts, Transfers-in, and Found
The Asset Retirement Document is used for assets that have left the university premises permanently. Once the document is approved the inventory status is changed to identify the asset as retired. This document is initiated by the organization, approved by the fiscal officer and routed to the University Capital Asset Office for approval. Retirement reasons like Gift, Sold require additional routing. Normally equipment is transferred to Materials Management for disposition.
The Asset Transfer Document is used to change ownership and inventory responsibility of an asset. When an Asset Transfer is processed the account amounts on the payment records are reversed out of the current chart organization (balance sheet) and added to the chart organization (balance sheet) to which the asset is being transferred. The owner account on the asset record is changed to the receiving organization from the AT document. The Asset Transfer Document is approved by the fiscal officer of the owner account the and the receiving account. This document is not reviewed by the University Capital Asset Office. The asset transfer is processed against one asset.
When capital equipment leaves the IU campus for thirty-one days or more an Equipment Loan/Return Document is required. The borrower’s address is captured on the Equipment Loan/Return Document. If the borrower is not the initiator of the document it will route to the borrower for approval, as well as the fiscal officer. Signature on File This document is used only as a tracking feature there is no impact on the General Ledger.
Fabrications of movable equipment allow organizations to capitalize expenditures that are necessary to build a piece of equipment. The cost of individual components may be less than the capitalization limit; however, the finished, tangible asset must have a total cumulated cost that does meet the capitalization limit. Process Organizations submit a fabrication request, and supporting documentation. Once approved the asset number must be submitted on all procurement transactions. Currently we allow materials and direct labor to be capitalized as part of the fabrication. The labor is billed on an Internal Billing Document.
The following screens will not be covered in this presentation: Merge an Asset, Bar Code Inventory, Separate an Asset, System Manager Maintenance and the Tag an Asset Screen. The Merge an Asset function is used to combine assets. The Bar Code Inventory screen is selected when you are ready to upload the file from the inventory scanning devise. The Separate an Asset allows you to create additional assets. The System Manager screen is used to close fabrications. If Pre-Asset tagging is not used then the tagging information is entered on the Tag an Asset screen.
Capital Asset Management security is divided into three levels. The University Capital Asset Office, which can modify all assets. The Campus Capital Asset Offices which can modify those assets located on their campus, and departmental users. The campus security is maintained by a Maintenance Security Table. The departmental user security is restricted by the users chart and organization code entered on their FIs User document. We do recognize organization hierarchy so a user can modify all assets that report up to the chart-organization code entered on the FIS user Document. A CAMS Security Document can grant access by organization where necessary.
The Capital Asset Maintenance screen displays all of the asset, payment and depreciation information. Using the Capital Asset Maintenance Screen you can create: Components Warranties Repair Histories ============================================ This screen is where departments update location information. ============================================ The “document” button will display the document history for the asset.
When you open the Capital Asset Maintenance Screen the Capital Asset Lookup screen is displayed first. This normally saves the users a step by sending them directly to the lookup screen. When the Capital Asset Lookup screen is presented before the maintenance screen or document the search results remain on the lookup screen after an asset has been selected and updated or routed the document routed for approval. On CAMS documents if you double click in a blank asset number field you will be navigated to the Capital Asset Lookup Screen. If an asset number is present double clicking will take you to the Capital Asset Maintenance Screen.
The Location Maintenance screen is used to update the Campus, Building, and Room data. This screen allows updates to multiple assets. When location changes are made to assets the system updates the last inventory date. Indiana University Policy states that when equipment is moved the Capital Asset Management System should be updated within 30 days.
Pre-asset tagging allows organizations to tag equipment as it is delivered to their organization. Lookup by Purchase Order To create the Pre-asset Tagging record click on the Add New or Modify Purchase Order button.
We have an nightly extract from the Purchasing System to select PO’s with a unit cost of $5,000.00 or more, and a capital equipment object code. To save time I have navigated us past the first screen where the manufacture and asset type code are entered. On this screen they will enter the tagging information. When the asset is created in CAB this table will be checked for information.
Currently we use the Intermec Antares Trakkers (pc) to scan equipment. A file copy utility is used to extract the file from the trakker and copy the file to a designated computer. The updates are loaded into the asset system using the Bar-code Inventory Document in the FIS. Data that does not pass referential integrity checks will drop into an Error Document. Once the records on the error document have been processed the Inventory Reconciliation Report is run to identify assets missed during the physical inventory. When the items on the Inventory Reconciliation report have been addressed a Certification Letter is sent to the organization for signature.
Any assets that you do not want to receive depreciation would need an asset type code with a zero life. In addition the object sub type code is used to exclude payments with federally owned object codes. While the payments that are university funded are eligible for depreciation.
Noticed the AM – Art does not have an accum, or depr object code. We don’t depreciate Art which is why these fields are null. CO is federally owned.
Reconciliation reports are used to verify additions, retirements, and transfers. For additions reports confirm that CAB+CAMS = General Ledger. Retirements and Transfers confirm amounts in GL = Amounts in CAMS. Reconciliations are processed by asset category. Art Buildings Fabrications Infrastructure Land Leasehold Improvements Library Books Movable Equipment
Most reports allow you the option to include non-capital assets.
Capital Asset Management <ul><li>May 21, 2007 </li></ul><ul><li>Today’s Presenters: </li></ul><ul><li>Shelley Pierce, Senior Accountant </li></ul><ul><li>San Joaquin Delta College </li></ul><ul><li>Theresa Cain, CAMS Data Manager </li></ul><ul><li>Capital Asset Management System </li></ul><ul><li>Indiana University </li></ul>
Presentation Outline <ul><li>Introduction </li></ul><ul><li>CAMS SME Members </li></ul><ul><li>Kuali Roles & Responsibilities </li></ul><ul><li>CAMS System Overview </li></ul><ul><li>CAMS System Functions </li></ul><ul><li>Key Accomplishments </li></ul><ul><li>Future Plans </li></ul>
CAMS SME Members <ul><li>San Joaquin Delta College, Lead SME, Shelley Pierce </li></ul><ul><li>Indiana University, SME, Anna Jensen </li></ul><ul><li>Indiana University, Business Analyst, Theresa Cain </li></ul><ul><ul><li>University of Arizona - Alan Blumberg, </li></ul></ul><ul><ul><li>Cornell University – Nancy Abbott </li></ul></ul><ul><ul><li>University of Hawaii – Gilbert Kuroda </li></ul></ul><ul><ul><li>Michigan State – Boyd Shumaker </li></ul></ul><ul><ul><li>University of California, Davis – Delanda Buchanan </li></ul></ul><ul><ul><li>University of California, Irvine – Helen Wessel </li></ul></ul><ul><ul><li>University of California, Santa Barbara – Vaughn Boyle </li></ul></ul>
Kuali Roles & Responsibilities <ul><li>Training and Development of SME members </li></ul><ul><li>Develop and review functional specifications </li></ul><ul><li>GASB/GAAP Compliance </li></ul><ul><li>User Testing </li></ul><ul><li>Implement Asset Management System based on the current system at Indiana University. Develop flexible system to manage data for all institutions regardless of size, scope </li></ul><ul><li>Identify, develop, understand and communicate functionality of current system </li></ul><ul><li>Communicate with group members, development team and Functional Council </li></ul>
CAMS System Overview <ul><li>Tracks and maintain capital and non-capital assets </li></ul><ul><li>Supports depreciation, tagging and inventory tracking </li></ul><ul><li>Provides Non-Moveable Asset Tracking </li></ul><ul><li>Facilitates management of internal projects/processes: fabrications, location maintenance, asset security, component assets, retirements, asset transfers and equipment loan returns </li></ul><ul><li>Maintenance & Security </li></ul><ul><li>Maintains query based reporting tools </li></ul><ul><li>Standard reconciliation reports are available </li></ul><ul><li>Flexibility is “built-in” to the system (user access, searchable data elements, field length, notes, etc.) </li></ul><ul><li>Data Flow-Procurement-Financial-Moveable-CAB-CAMS. System provides financial transaction feed from GL to CAB. </li></ul>
CAMS System Functions <ul><li>Automation of journal entries </li></ul><ul><li>Ability to calculate depreciation </li></ul><ul><li>Standard reporting and reconciliation tools </li></ul><ul><li>Multiple user access </li></ul><ul><li>Ability to handle specialized government reporting requirements </li></ul><ul><li>Provide information for F&A calculations </li></ul><ul><li>Inventory tracking and reporting </li></ul><ul><li>GASB, State and Institutional policy reporting and compliance </li></ul><ul><li>Fixed Asset system accounting system integration </li></ul><ul><li>Allocate building costs </li></ul><ul><li>Data Integrity </li></ul><ul><li>Web Access by Department </li></ul><ul><li>Note: Based on analysis of processes of participating institutions </li></ul>
Key Accomplishments to Date <ul><li>Completed review/training on IU CAMS/CAB system. </li></ul><ul><li>Developed detailed documentation related to current business rules, workflow and routing actions, permissions, and database objects </li></ul><ul><li>Identified “gaps” between CAMS and institution requirements </li></ul><ul><li>Ranked IU enhancements </li></ul><ul><li>Developed “wish list” of enhancements for future consideration </li></ul>
Future Plans/Looking Ahead <ul><li>“ Hands-on Training” using sample data </li></ul><ul><li>Develop final versions of specification documents </li></ul><ul><li>CAB (Capital Asset Builder) research and development </li></ul><ul><li>User Testing </li></ul><ul><li>Training and Development – remaining modules of CAMS </li></ul>
<ul><li>Structure for Capital Asset Management </li></ul><ul><li>University Capital Asset Office </li></ul><ul><li>Campus Capital Asset Offices </li></ul><ul><li>Departments </li></ul>Capital Asset Management at Indiana University <ul><li>Indiana University Terms </li></ul><ul><li>Fiscal Officers </li></ul><ul><li>Routing </li></ul>
Asset Activity at Indiana University <ul><li>For Year Ending June 30, 2006 Capital Assets </li></ul><ul><li>Total net capital assets $1,839,661(in thousands of dollars) </li></ul><ul><li>Count of moveable additions 1,399 </li></ul><ul><li>Capital Asset Management Staff </li></ul><ul><li>Plant Fund Accountant </li></ul><ul><li>Asset Creator </li></ul><ul><li>Inventory/Tagging Manager </li></ul><ul><li>Data Manager </li></ul>
CAMS System History <ul><li>The Capital Asset Builder was implemented in March of 1993 </li></ul><ul><li>The Capital Asset Management system was deployed in October 1994 </li></ul>
Major Components of CAMS <ul><li>Capital Asset Builder </li></ul><ul><ul><li>Pre-Asset Tagging </li></ul></ul><ul><li>Non-Moveable Additions </li></ul><ul><li>Documents and Maintenance Screens </li></ul><ul><li>Inventory Process </li></ul><ul><li>Depreciation </li></ul><ul><li>Reconciliation Reports </li></ul>
IU Asset Categories <ul><li>Capital Moveable </li></ul><ul><ul><li>Equipment </li></ul></ul><ul><ul><li>Fabrications </li></ul></ul><ul><ul><li>Lease Purchases </li></ul></ul><ul><li>Capital Non-moveable </li></ul><ul><ul><li>Art and Museum </li></ul></ul><ul><ul><li>Bonds </li></ul></ul><ul><ul><li>Buildings & Building Improvements </li></ul></ul><ul><ul><li>Infrastructure </li></ul></ul><ul><ul><li>Land </li></ul></ul><ul><ul><li>Leasehold Improvements </li></ul></ul><ul><ul><li>Library books </li></ul></ul><ul><li>Non Capital </li></ul>
<ul><li>Capital Asset Builder (CAB) </li></ul><ul><ul><li>Equipment </li></ul></ul><ul><ul><li>Fabrications assets are created by the fabrication document. Invoices modify the existing asset. </li></ul></ul><ul><ul><li>Capital Lease assets are created on a Financial Document </li></ul></ul><ul><ul><li>Art and Museum </li></ul></ul><ul><li>Add Asset Document & Add Payment Document </li></ul><ul><ul><li>Bonds </li></ul></ul><ul><ul><li>Buildings & Building Improvements </li></ul></ul><ul><ul><li>Infrastructure </li></ul></ul><ul><ul><li>Land </li></ul></ul><ul><ul><li>Leasehold Improvements </li></ul></ul><ul><ul><li>Library books </li></ul></ul><ul><li>Add Asset Document </li></ul><ul><ul><li>Non-capital assets are created by departments </li></ul></ul><ul><ul><li>Capital Equipment Gifts </li></ul></ul>How the assets are created at IU
Additions Processed in CAB <ul><li>Moveable additions are Processed in the Capital Asset Builder. </li></ul><ul><li>Process: </li></ul><ul><ul><li>Requisition issued in the Electronic Processing and Invoicing Center (EPIC). Capital object code is assigned. </li></ul></ul><ul><ul><ul><li>Purchase Order is approved </li></ul></ul></ul><ul><ul><ul><ul><li>Payment Request is issued and approved </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Payment hits the General Ledger </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Batch process loads data into CAB </li></ul></ul></ul></ul></ul>
Capital Asset Builder (CAB) <ul><li>Invoice Line Items </li></ul><ul><li>Moveable Equipment purchased on PO </li></ul><ul><li>Art and Museum Items </li></ul><ul><li>Fabrications </li></ul>Additions are Created by the University Capital Asset Office
New Version Invoice Line Item <ul><li>Trade-ins are allocated in CAB by pressing the “allocate” button. </li></ul><ul><li>The allocate routine will first allocate any additional charges (freight); then allocate the trade-in allowance. </li></ul>Processing Trade-ins
Allocate Trade-in <ul><li>Once the Freight and Shipping and Handling are allocated a dialog box will be presented with the following message: </li></ul>
Maintenance Screens & Security <ul><li>Maintenance Screens do have restrictions </li></ul><ul><ul><li>University Capital Asset Office </li></ul></ul><ul><ul><li>Campus Capital Asset Offices </li></ul></ul><ul><ul><li>Organizations </li></ul></ul>
Physical Inventory <ul><li>Intermec Antares Trakkers scan equipment. </li></ul><ul><li>Filecopy utility is used to extract file and copy to PC. </li></ul><ul><li>File Uploaded to FIS </li></ul><ul><li>Bar-code Error Document </li></ul><ul><li>Inventory Reconciliation Report </li></ul>
Depreciation <ul><li>Depreciation expense is calculated from a stored procedure that updates the asset database on a monthly basis. The Straight Line method is the basis for the calculation, along with a method for Salvage Value. Federally owned payments are excluded from the depreciation calculation. In addition, no Deprecation will be taken on Art and Museum Objects, Land, or Leasehold Equities. Each asset is depreciated from the asset create date, and the assets useful life assigned to the asset type code. Non-Movable assets use a ½ year convention for assigning the create date. The Deprecation entries Debit Object Code 51XX, Depreciation Expense, and Credit the appropriate Accumulated Depreciation Object Code based on the Object Code Sub Types in the Asset Object Code Table. </li></ul>
Asset Object Code Table Year Chart SubTY Cptlztn Accum Depr 2005 BA AM 8615 2005 BA BD 8601 8905 5112 2005 BA CM 8610 8910 5115 2005 BA CO 2005 BA IF 8604 8904 5157
Pre-Defined Queries <ul><li>Capital Asset Management has made available the following reporting categories to assist organizations in asset management. </li></ul><ul><li>Inventory Control Reports Nbr of rpt 9 </li></ul><ul><li>Depreciation Reports Nbr of rpt 4 </li></ul><ul><li>Edit Reports Nbr of rpt 10 </li></ul><ul><li>Summary Reports Nbr of rpt 4 </li></ul><ul><li>Internal Reports Nbr of rpt 15 </li></ul><ul><li>Screening Reports Nbr of rpt 1 </li></ul><ul><li>Capital Lease Reports Nbr of rpt 2 </li></ul>