Banner Fixed Assets Policies and Procedures

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Banner Fixed Assets Policies and Procedures

• How they affect you.

Robette Edwards, Fixed Assets Supervisor
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What are we talking about?

• Fixed Assets policies and procedures that
  directly affect
• your work,
• your budget,
• and your responsibility for protection of UNCG
  assets as custodian department.

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Why are Fixed Assets important?

Assets
Budget Money
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We know that with State Budgets....
Money doesnt grow on trees !
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What does the Fixed Assets Section of Accounting
Services do?

• We are responsible for
• Determining new assets and bar-code tagging
  for identification
• performing annual inventory audits
• maintenance of the University Fixed Assets
  accounting records that document equipment and
  properties acquired by the school and are part of
  the annual University Financial Statements.
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• A summary of asset values are recorded in the
  General Ledger while supporting detail is
  maintained within Fixed Assets.
• Triggered by invoicing and receiving
  transactions, asset records are created
  automatically based on
• the expenditure account used by the purchasing
  organization and
• the 5000.00 threshold for capitalization.

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What does the Fixed Assets Section of Accounting
Services do?

• An accounting feed automatically capitalizes
  these assets to the Banner Finance general ledger
  based upon meeting the cost threshold and the
  expenditure account code used.
• Therefore, University organizations are required
  to use the appropriate Banner expenditure account
  codes when the acquisition cost is greater than
  or equal to 5,000.
• The capital account code you choose will create a
  capitalized asset record or several
  non-capitalized o-tag records to be joined by
  Fixed Assets for the complete asset over 5,000.
  This o-tag identifies assets to be added to the
  Fixed Assets Module of the Finance database.
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• The Fixed Assets Process is audited annually by
  the State Auditors, along with Financial
  Accounting.

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Five Areas of Importance

• New Assets
• Purchases
• Tagging
• Annual Inventory
• Forms
• Our Website
• Our Staff Location

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New Asset Purchases
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What are Fixed Assets?
DEFINITION Capitalized fixed assets (Property,
Plant and Equipment) include 3 types of assets
used in operations and that have a normal life
expectancy of more than two years

• Permanent land, improvements to land,
  easements, buildings, building improvements,
  infrastructure, and structures

• Moveable Equipment (Asset barcodes applied
  inventoried)
• Office equipment and furniture,
• Data processing equipment,
• Educational, research and
  scientific equipment,
• Motor vehicles- licensed,
• Other equipment -unlicensed
  vehicles, machinery,
• landscaping, dining hall,
  maintenance and other
• equipment

• Other tangible or intangible assets

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Fixed Asset Threshold
November 2004 - University policy threshold
changed to
5,000 ONLY
The recorded cost of each capitalized
fixed asset in the General Ledger includes
InstallationFees
Asset Cost (tax)
Legal Fees
Delivery Fees



300.00
500.00
1300.00
3995.00
IF the Total Cost 5,000 appropriate
purchasing expenditure codes are required
All/Any of these must be combined to equal the
NC State threshold of 5,000
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Fixed Assets Responsibility

• All moveable capitalized assets are physically
  inventoried by barcode scanning each fiscal year
  (July-June) by Fixed Assets staff after
  pre-inventory is completed by the departments.

• Each department head is
• responsible for safeguarding all
• assets purchased by his or her
• department

regardless of cost.

• Physical assets, their cost and depreciation are
  audited
• annually by the State Auditors
• These records are used by the University to
  report Fixed Assets on the Annual Financial
  Statements

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Banner Fixed Asset Account Codes
Fixed Asset account codes all begin with
203
WARNING!!-
Some EDP non-asset equipment
account codes for items under the 5,000
threshold are in the Property, Plant and
Equipment Pool with account titles and codes
similar to the capitalized account needed for
Fixed Assets over 5,000.
Title Changes have been made to add the word
Capital after all capitalized account titles for
equipment over 5000.00.
WARNING!!-
In Banner, journal entries
will be made by Fixed Assets staff to correct
assets purchased from the incorrect accounts for

• items purchased with capital accounts incorrectly
  or

• This crossover could be hazardous to your budget!!

• items that should have been purchased with
  capital accounts.

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Things to remember for purchases

1. Use EA for Each as the Unit of Measure when
   purchasing assets

11,734.00
5867.00 each
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Things to remember for purchases

• 2. When all line items purchased create 1 asset-
  Purchase with the same
  fixed asset capital expenditure account
• If
• The combined items total 5,000 or more
• Including shipping, handling,
  installation
• and tax
• NOT including extended warranties
• or maintenance agreements
• How Use same expenditure account code in
  accounting block.

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Fixed Asset Example
Microscope with Laser

• Requisition Line Items Cost Quantity Account
• Frame 8,396.97 1 EA 203430
• Eyepiece 207.00 2 EA 203430
• Stage 5,905.50 1 EA
  203430
• Observation Tube 1,408.95 1 EA 203430
• SIM Laser Scanner 4,926.00 1 EA 203430
• Transmitted Light Detector 5,609.76 1
  EA 203430
• Spectral Detection 6,302.50 1 EA 203430
• 4th Channel 2,681.59 1 EA 203430
• PMT Detection Unit 3,692.12 1 EA 203430
• Fiber Port 537.54 1 EA 203430
• Optional Software 4,499.00 1 EA 203730
• Shipping/Handling 100.00 1 EA
  203430
• Installation 800.00 1 EA 203430
• Extended Warranty 2000.00 1 EA 236010

TOTAL ASSET COST 40,774.93
REQUISITION TOTAL 47,273.93
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Things to remember when purchasing Fixed Assets

• 3. Any item purchased to be permanently added
  to, attached to, or installed into a previously
  purchased capital asset must be purchased using
  the same capital expenditure code used for that
  asset.
• This includes equipment items such as a Handicap
  Lift for a Bus, Digital camera for a Microscope,
  but does NOT include expendable supplies such as
  copier toner or intangible assets such as
  software. (Contact Fixed Assets Department, if
  unsure.)

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Fixed Assets ExampleBus with Handicap Lift

• Handicap Lift 6,000.00
• Installation 1,000.00
• Total Cost 7,000.00
• (To be installed into Asset N00067962-Bus)

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Things to remember when purchasing Fixed Assets
Extended Warranties
MaintenanceAgreements
Service Contracts

• Do not include in the asset cost
• Do not use asset capital expenditure account code

• Search by Main on FTVACCT Use accounts
  236010-237210 for Maintenance Contracts
• Search by Support on FTVACCT Use accounts
  221060-221110 for Support Services.

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Fixed Asset Example Copier
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New Asset Tagging
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Vera Tags a New Asset
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Policy for New Assets

• Barcode tags are required for these new assets
  with a total cost of 5000 or more
• Office Furniture Equipment
• Electronic Data Processing Equipment
• Educational, Scientific and Research Equipment
• Motor Vehicles (Licensed)
• Other Equipment (Non-licensed vehicles, grounds
  landscaping, etc.)

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Policy for New Assets

• PCard Purchases
• PCard purchases of capital assets are excluded
  by the new Fixed Asset threshold of 5000.00 and
  greater.
• PCard purchase thresholds are from 1,500.00 to
  2,500.00 and should therefore exclude the use of
  any capital asset account.

• New!

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Policy for New Assets

• Most Grant purchases that meet the cost threshold
  criteria are required to be barcode tagged as
  UNCG equipment and added to the Fixed Assets
  System.
• "Assets purchased with Contract and Grant funds
  become the property of the University and must be
  bar code tagged and recorded on the Fixed Assets
  System accordingly. --Policies and Procedures -
  Accounting Budgets, Policy 7.8 - Fixed Assets
• "Much of the property acquired on research or
  training awards becomes University (State)
  property upon acquisition or by subsequent
  vesting of title.--- Policies and Procedures -
  Contracts and Grants Policy 11 - Equipment
  Management
• http//www.uncg.edu/baf/CG_POL_11.html

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Policy for New Assets
NO new asset should leave campus before being
tagged!

• Only Fixed Assets staff are authorized to apply
  or remove barcode tags on equipment.

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Annual Inventory
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Barbara scans inventory
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Department Head Duties

• RESPONSIBILITIES
• Each department head is responsible for
  safeguarding all assets purchased for his or her
  department and assisting with the physical
  inventory process (see Annual Inventories)..
  -Policy 7.8 - Fixed Assets
• designate an individual in a permanent
  position on your staff (a student is not an
  acceptable designee) to physically locate each
  fixed asset on the attached printouts, which were
  prepared by our Fixed Assets staff. - University
  Controller
• All Fixed Assets Forms must be signed by the
  department head.

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Annual Inventory Designee Duties

• Immediately
• Call to confirm receipt of inventory email
  packet.
• During Next Two Weeks
• Physically locate each asset and update list,
  including additions, documentation for assets not
  located, and new locations of assets.
• Request FA-16 forms from employees.
• Send updates and all forms to Fixed Assets.
• Call for an appointment.

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Annual Inventory Designee Duties

• Any asset listed on the current department
  inventory must be inventoried. These are the
  designees responsibility. This includes
• those assets in the process of being properly
  transferred when the inventory packet is sent out
• any relocated assets transferred without a
  properly completed FA-14 Transfer form
• A properly completed FA-14 Transfer form is
  required to transfer such an asset to the new
  location. This form is also the designees
  responsibility of the current department.
• The designee must be responsible for arranging to
  accompany the inventory auditor for scanning the
  asset in its new location.

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Annual Inventory Designee Duties

• Before inventory appointment
• Request by urgent email that all department
  employees with Off-Campus laptops, portable
  equipment and instruments bring them in on the
  day of the appointment for scanning.
• Arrange for access to all assets listed on
  inventory get keys to labs, set up appointments,
  get combinations to lockers, have students return
  items, etc.

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Annual Inventory Designee Duties

• On the day of scheduled inventory appointment
• Escort your Inventory Auditor to each asset.
• If assets are missing, during next 10 days
• Locate each item or document the status upon
  receipt of the Missing Assets Report.
• Call your Inventory Auditor for an appointment to
  verify any located missing items at the close of
  the inventory in 10 days or after.
• Missing Verification Appointment
• Escort the Inventory Auditor to each located
  missing asset.

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Missing Equipment

• Missing equipment is defined as any asset which
  is not found during the physical inventory
  process and for which documents have not been
  forwarded to the Fixed Asset Section for transfer
  or disposal.
• If we have not been taken to the asset to scan
  it, we are required to code it as missing.
• All assets not scanned at the close of your
  inventory will be reported to the appropriate
  Vice-Chancellor or Provost on a monthly basis.

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Forms
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Completing Forms Properly

• All Fixed Asset forms must be signed by the dean
  or highest ranking department head of the
  custodian department.
• New versions with new policy format should be
  printed from our website. These should be used in
  place of older ones. (Adobe Reader 7.0 or
  higher).
• Copies of all FA forms should be kept by the
  custodian department.
• Equipment checkout list is available.

Forms should always be submitted to Fixed Assets
as soon as changes in the assets inventory
status occur!
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Completing Proper Forms

• FA-13 Disposal Forms for surplus now require that
  the department send
• The original to Fixed Assets for removal of
  assets from your inventory records.
• A copy to Warehouse Surplus Services for
  pick-up of surplus equipment.

We are two separate departments.
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Completing Proper Forms

• FA-13 Disposal Forms must also be submitted to
  Fixed Assets for assets that are
• Traded-In with authorization from Purchasing
• Exchanged for different assets or returned to
  the vendor after tagging
• Junked ( i.e. Used for parts)
• Destroyed by fire, water damage or accident.

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Completing Proper Forms

• FA-14 Transfer Forms
• Must be signed by both department heads
• Should be the responsibility of current
  department.
• Can be used to change location only
• FA-16 Agreement for Equipment Located Off-Campus
• Requires removal and expected return dates
• Department head and user signatures required

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Completing Proper Forms

• Stolen assets
• a copy of the UNCG or other police report with
  the asset tag and serial numbers should be sent
  to the Fixed Assets Office for removal of the
  asset from your inventory. No other form is
  required.

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What All This Means

• Custodian departments are responsible for their
  UNCG assets, including
• purchase,
• protection,
• location,
• and proper disposal.
• Following University policy and procedures during
  the year will save the department a tremendous
  amount of searching for missing assets and help
  maintain inventory accuracy.

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Our Website
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Using our Website
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Fixed Assets Website

• http//fsv.uncg.edu/fa.html
• NEW!!!
• New data enterable forms with Banner format for
  Off-Campus, Transfer and Disposal. (Save a copy
  to your desk top!)
• Staff info
• NEW ADDITIONS ADDED SOON!
• Lists of helpful data
• Training PowerPoint Presentation
• inventory instructions
• UPDATED INFORMATION ON FINANCE WEBSITE
• Policies Procedures for Fixed Assets

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Our Location
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Our Staff Location

• Fixed Assets Staff
• Robette J. Edwards
• Financial Accountant/Fixed Assets Supervisor
• [phone]
• rjedward_at_uncg.edu
• Barbara Lathrop
• Fixed Assets Technician/Inventory Auditor
• [phone]
• bblathro_at_uncg.edu
• Vera Ledbetter
• Fixed Assets Clerk/Inventory Auditor (336)
  334-5905
• vdledbet_at_uncg.edu

• Fixed Assets Office Location
• 120 121 Campus Supply Store Building
• (On Forest Ave., Behind McNutt)
• UNCG Campus
• Greensboro, NC 27402-6170
• FAX Number [phone]

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Let Us Help You!
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Ways We Can Help You!

• Please call us! Fixed Assets can
• Supply asset cost information for reorder and
  insurance purposes or comparison.
• Provide asset reports by building or location in
  preparation of departmental moves.
• Supply info on stolen assets for police
  identification.
• Check info on similar assets on campus.
• Supply more detailed information on missing or
  other assets by providing invoice copies.
• Provide identification of custodian for an asset.
• Provide blank tags for assets under the cost
  thresholds.

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Next Steps

• Please read and follow the Inventory Instructions
  and Fixed Assets Policy/Procedures.

• Check our website for answers to your questions.

• Call us. The Fixed Assets staff will be glad to
  answer any questions about how to follow
  University policy and procedures.

Get ready for your next inventory!