CAPITAL ASSET MANAGEMENT

1. When are you required to capitalize an asset? 1. Only when the item purchased is greater than $75, Anytime the item purchased is greater than or equal to $5, Anytime the item purchased will last longer than 1 year 4. A combination of the above

1. When are you required to capitalize an asset? ANSWER: 4. A combination of the above An asset is capitalized when its cost is greater than $5,000 AND it is expected to last longer than one year. Buildings, infrastructure and leasehold improvements with a cost greater than $75,000 are capitalized.

2. What object code do you use to capitalize a computer? 1. Object code Object code Object code Capital Asset Management will determine the right object code later

2. What object code do you use to capitalize a computer? ANSWER: 2. Object code 7015

3.When are you required to tag an asset? 1. The asset cost is greater than or equal to $5, The asset is on loan from the federal government for use in a research project 3. An employee is going to borrow the asset for greater than 31 days 4. Both 1 and 3 5. All of the above

3.When are you required to tag an asset? ANSWER: 5. All of the above All university owned capitalized assets; all assets on loan to employees; and all assets loaned to the university, which are employed in university business are required to be tagged and inventoried every other year.

4. At what point in time should an asset be tagged? 1. As soon as it is received 2. During the departments regular inventory cycle 3. Within 1 year of receipt 4. Any of the above is acceptable

4. At what point in time should an asset be tagged? ANSWER: 1. As soon as it is received All assets are required to be tagged within 30 days of receipt

5.Capital asset balances and depreciation expense can be found in which fund groups? 1. Auxiliary Funds 2. C&G Funds 3. Renewal and Replacement Funds 4. Plant Funds 5. All of the above

5. Capital asset balances and depreciation expense can be found in which fund groups? ANSWER: 4. Plant Funds All assets, accumulated depreciation and depreciation expense are found in the Plant Fund Accounts (95-XXX-XX).

6. What does the University require if someone is going to borrow a capital asset for longer than 31 days? 1. Complete an equipment loan document in the FIS 2. Perform a regular physical inventory of the equipment 3. Insure the equipment 4. All of the above

6. What does the University require if someone is going to borrow a capital asset for longer than 31 days? ANSWER: 1. Complete an equipment loan Policy I -140 requires the department to perform a physical inventory of the equipment, tag the equipment before it leaves the premises.

7.What information can I store within the Capital Asset Management System (CAMS)? 1. What accounts paid for the asset 2. Where the asset is located 3. Warranty, repair, and component information 4. All of the above

7.What information can I store within the Capital Asset Management System (CAMS)? ANSWER: 4. All of the above

8.What action is required when your department wants to transfer an asset to another department? 1. None 2. Asset transfer document in the FIS to the receiving account 3. Asset retirement document in the FIS 4. Remove the asset tag

8.What action is required when your department wants to transfer an asset to another department? ANSWER: 2. Asset transfer document in the FIS to the receiving account

9.What do you do when you have a computer that is no longer needed? 1. Retire the asset 2. Transfer the asset to surplus 3. Throw it away 4. Put it in the closet

9.What do you do when you have a computer that is no longer needed? ANSWER: 2. Transfer the asset to surplus

10.What action is required for a gift the University receives of equipment, art or museum piece? 1. An add asset document 2. None 3. Complete and send the gift in kind form to the IU Foundation 4. Both 1 and 3

10.What action is required for a gift the University receives of equipment, art or museum piece? ANSWER: 3. Complete the Gift in kind form from the IU Foundation

11.Who is responsible for knowing where your capital assets are located? 1. Campus capital asset office 2. The local department 3. Internal audit 4. Financial Management Services

11. Who is responsible for knowing where your capital assets are located? ANSWER: 2. The local department

12.How often is an organization required to inventory their capital assets? 1. Every five years 2. Every other year 3. Organizations are not required to inventory their assets 4. When the organization has more than 12 assets 5. 1 and 4 above

12. How often is an organization required to to inventory their capital assets? ANSWER: 2. Every other year as required by OMB(Office of Management and Budget) circular A-21

13.What kinds of Capital Asset Reports are available in the IUIE? 1. Detailed listings of all assets by organization 2. Listings of all assets on loan by an organization 3. Depreciation information by organization 4. All of the above

13.What kinds of Capital Asset Reports are available in the IUIE? ANSWER: 4. All of the above

14.What information is available on the Capital Asset webpage? 1. A listing of the University Capital Asset Policies 2. Standard Operating Procedures for managing your capital assets 3. A listing of all capital asset object codes to be used by organizations when purchasing capital items. 4. Procedures for inventorying assets 5. All of the above

14.What information is available on the Capital Asset webpage? ANSWER: 5. All of the above

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