Compliance Services Ensuring the compliance of organizations with Generally Accepted Accounting Principles, GASB and AICPA accounting and inventory standards and university policy. Upholding the integrity of capital asset inventory by following and complying with federal inventory standards, as outlined in OMB Circulars A-21 and A-110. Providing authoritative guidance on the interpretation of standards, policies and procedures by creating and maintaining Capital Asset and Inventory Management Standard Operating Procedures. Identifying and amending university policies related to capital asset and inventory management using the University Financial Policy Committee procedures. Upholding the integrity of the general ledger system and capital asset management system by ascertaining the validity and accuracy of balances between both systems and ensuring the timeliness of monthly reconciliation. Supporting the preparation of the university financial statements, by providing detailed audit work papers related to plant fund accounting, capital asset accounting, capital lease accounting and bond accounting. Supporting and facilitating Campus Capital Asset meetings for review of capital asset and inventory management. Consulting Services Aiding organizations in inventorying capital assets. Responding to and assisting organization with questions and concerns relating to plant fund accounting, capital asset accounting, and capital lease accounting. Responding to and assisting organizations with questions and concerns relating to capital asset documentation and data management. Responding to and assisting organizations with the use of the capital asset management system. System Support and Training Services Developing, supporting and maintaining the capital asset management system, reporting tools, and FIS attributes. Providing regular training to organizations related to the capital asset management system and capital asset documentation.
Non-Movable assets 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. Movable equipment transactions are processed in the Capital Asset Builder. Movable transactions are selected from a table that includes all of the object sub type codes that are loaded into CAB. Non-Capital assets can be created by organization using the Add Asset Document.
The Capital Asset Builder is the asset creation module for movable equipment. Pre-Asset tagging is used to tag equipment as it is delivered to the organization, before the asset is created. FIS documents, Retirement, Transfers, ELR, Fabrications, Maintenance Screens. We will describe the inventory, depreciation, and the reconciliation processes for IU.
Information from the General Ledger and the purchasing system is pulled together in the Capital Asset Builder to create assets or add payments. Three types of functions can be performed in CAB: Invoice Line Items, General Ledger Transactions, and Quick Assets.
The Invoice Line Item screen is used to process complicated purchase orders. The General Ledger Transaction Screen is where Financial Documents and other system (MMS) transactions are processed. An example is a General Error Correction moving an expense from one account to another. Quick Asset Creation is used for simple PO’s one line item with a unit cost GE $5,000.00.
A purchase order is retrieved and line items on the PO may need to be added or split to create an asset(s). CAB will insure the cost matches to the general ledger transaction amount. If there is more than one invoice for a given PO the pending invoice will appear at the bottom the screen. To add a line item take the scissors and drop it on the paste icon for the line item. To create the asset take the line item scissors and drop it on the asset book.
Transactions processed from the Invoice Line Item screen, GL Transactions, and Quick Assets will all take you to the Create View Asset Screen. At the create view asset screen the asset creator will select the asset type code. The asset type code is used to group assets for depreciation. If the manufacture and model number can be determined from the description this information will be entered in the appropriate fields. Once the location (building, room) are set you are ready to save the asset. If pre-asset tagging information exists this information (asset type, building, 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.
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. The Quick Asset Creation is very similar to General Ledger Transactions is will not be covered today.
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.
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.
Capital Asset Management Documents Route to the Fiscal Officer for approval. Some Documents like the ELR require additional routing. 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.
When 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. 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.
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.
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.
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.
The following screens will not be covered in this presentation: Tag an Asset, Merge an Asset, Separate an Asset, and the System Manager Maintenance screen. If Pre-Asset tagging is not used then the tagging information is entered on the Tag an Asset screen. The Merge an Asset function is used to combine assets. The Separate an Asset allows you to create additional assets. The System Manager screen is used to close fabrications.
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 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
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.
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.
Reconciliations are processed by asset category. Art Buildings Fabrications Infrastructure Land Leasehold Improvements Library Books Movable Equipment
Welcome to Capital Asset Management
CAMS Mission <ul><li>The mission of the University Capital Asset Management department is to provide the highest quality service and guidance in asset management to university organizations, while fulfilling the financial recording and reporting requirements of the university. </li></ul>
Roles and Responsibilities <ul><li>Compliance Services </li></ul><ul><li>Consulting Services </li></ul><ul><li>System Support and Training Services </li></ul>
Asset Category's <ul><li>Capital Non-movable </li></ul><ul><ul><li>Art and Museum </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>Lease Purchases </li></ul></ul><ul><ul><li>Library books </li></ul></ul><ul><li>Capital Movable </li></ul><ul><ul><li>Movable Equipment </li></ul></ul><ul><ul><li>Movable Fabrications </li></ul></ul><ul><li>Non Capital </li></ul>
Major Components of CAMS <ul><li>Capital Asset Builder </li></ul><ul><li>Pre-Asset Tagging </li></ul><ul><li>CAMS FIS Documents and Maintenance Screens </li></ul><ul><li>Inventory Process </li></ul><ul><li>Depreciation </li></ul><ul><li>Reconciliation Reports </li></ul>
Capital Asset Builder <ul><li>Invoice Line Items </li></ul><ul><li>General Ledger Transactions </li></ul><ul><li>Quick Asset Creation </li></ul>
CAMS Documents <ul><li>Security and Asset Security Document </li></ul><ul><li>Add Asset </li></ul><ul><li>Asset Retirement </li></ul><ul><li>Asset Transfer </li></ul><ul><li>Equipment Loan/Return </li></ul><ul><li>Fabrication Request </li></ul>
Security <ul><li>Security and the Capital Asset Management System. </li></ul><ul><li>Documents require no security ( route for approval). </li></ul><ul><li>Maintenance Screens do require security </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 5157 8904 8604 IF BA 2005 CO BA 2005 5115 8910 8610 CM BA 2005 5112 8905 8601 BD BA 2005 8615 AM BA 2005 Depr Accum Cptlztn SubTY Chart Year
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>
Movable Equipment Activity <ul><li>Current Fiscal Year </li></ul><ul><li>Count of Movable Active Assets 15,644 </li></ul><ul><li>Count of Additions 1,052 </li></ul><ul><li>Count of Retirements 787 </li></ul><ul><li>Count of Documents </li></ul><ul><ul><li>Count of Transfers 984 </li></ul></ul><ul><ul><li>Count of ELR’s 372 </li></ul></ul>