Departmental Asset Management Introducing the Stimulating and Thought-Provoking World of Asset Management ABS Property Accounting www.colorado.edu/property

DPM’s Role in Property Mgmt Property Life Cycle Purchasing Who controls? Tagging Inventory Disposal Campus Controller’s Office CU Boulder

Capital Equipment Requirements A piece of equipment that is over $5,000 Has a Useful Life > 1 year Item must be a tangible piece of equipment which is not permanently fastened to a building and does not lose its identity Software purchased that is >=$5,000 with a useful life >1year. Items not considered capital equipment are Repairs, services and consumables. Campus Controller’s Office CU Boulder ABS Property Accounting www.colorado.edu/property

Getting Started Purchasing a Capital Asset Equipment purchases shall be initiated in accordance with procedures outlined by the Procurement Service Center. 810100 is the account code to use for capital equipment purchases (Fabrications use 810700 to be discussed later). The PAO monitors 810100 and issues a tag for items purchased. The new purchased equipment is usually recorded at the amount shown on the vouchers or invoices, including shipping and installation costs. For purchases involving trade-ins, the new item is recorded on property records at the actual cost of the new item plus the value of the equipment traded-in. Campus Controller’s Office CU Boulder

Purchasing a Capital Asset Cont. Go to http://www.colorado.edu/property Property Central Website is a one stop shop for all your property needs. Gifts and Donations Contact Stefanie Furman, CCO 2-2396 or Stefanie.Furman@Colorado.edu Lease Purchases Contact Jeanne at 2-2424 Connely@Colorado.edu Campus Controller’s Office CU Boulder

Which account codes does Melissa look at? 810100 EQUIPMENT FIXED ASSETS EQUIPMENT >=$5,000 810200 EQUIPMENT >=$5,000 GOV’T TITLE 0Fxxxx Tags 810300 Prvt Titled to be Delivered to the Sponsor when done EQUIPMENT >=$5,000 Deliverables 0Wxxxx Tags 810350 Software over $5,000 810700 EQUIPMENT COMPONENTS 810800 FEDERAL EQUIPMENT COMPONENTS 810402 Art & Non-depreciable Collections Art Campus Controller’s Office CU Boulder

Tagging Tag the piece within 21 days, taking note of the serial number of the item and its exact location Determine the correct departmental custodian for the item Enter serial number & location (if it is a vehicle; license plate #) on the New Equipment Tag form and send to Property@Colorado.edu You may change the description if desired (limit to 30 characters) Campus Controller’s Office CU Boulder

Best practices for Tagging Try to place the tag in a very prominent location ideally in the front of the item, so that the tag is easily seen If the serial # isn’t easily accessible, note it somehow by the tag When tagging an item (and during inventory) we like to take a few pictures One up close - to be able to read the tag easily One further back – so as to be helpful in the future to find and identify the item & where in the room it might be Campus Controller’s Office CU Boulder

Up close Campus Controller’s Office CU Boulder

Picture of where tag is placed Campus Controller’s Office CU Boulder

Picture of where in the room Campus Controller’s Office CU Boulder

Offsite – off campus deployment The employee agrees and signs that the item will only be used for University business; that they are responsible for the condition of the item, and that they will make sure the Item is returned to campus after use/deployment. The Department head signs and therefore agrees and supports the conditions of the deployment. Send the off-campus form to Jeanne, and keep a copy If it is non-capital it needs to be tagged & tracked as well. Contact Jeanne Campus Controller’s Office CU Boulder

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The Basics Fabricating a Capital Asset Fabrications or Constructions Must meet the same criteria as capital equipment. Useful life begins once the item is placed into service. Fabricated assets are defined as components that work together to perform one function. Each component is necessary for the system to function as a whole. Removal of any one component would result in the system not operating at the required capacity or for its intended purpose. Fabrication Tag Request Form and process can be found at Property Central Website. www.Colorado.edu/Property Before fabrications begin, contact Melissa Keller in the PAO (mkeller@Colorado.edu, 579 UCB). Send her the fabrication request form and a Chartfield request form. Campus Controller’s Office CU Boulder

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The Basics Fabricating a Capital Asset Chartfield Request Form: The new chartfield is needed to create a subclass speedtype to capture all fabrication costs – there will be no budget associated with the new speedtype, it will be only be used to have a location to store all fabrication costs. Campus Controller’s Office CU Boulder

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The Basics Fabricating a Capital Asset Melissa will then issue a tag number and subclass speedtype. All purchases for this fabrication must be coded to the subclass speedtype and include this tag number on all purchase forms, such as POs and Expense System purchases using account code 810700 (Equipment Components). The actual tag will be sent to you once you notify Melissa that the item has been placed into service. Remember: Fabrication Tag Request Form and process can be found at www.Colorado.edu/property . Campus Controller’s Office CU Boulder

The Finer Points Fabricating a Capital Asset Fabrications or Constructions “Put Into Service” is the term used for the transition from fabrication to its state of permanent use for which it was created. This state can get confusing with research projects, please contact the PAO when in doubt. In special cases, a fabrication may have stages of service due to testing or research phasing. In these cases, capitalization criteria will be placed into service and a new speedtype with the same tag # will be issued and the process begins over again with the new tag (which is also required to meet cap criteria). Please note: Fabrications are complex accounting processes and have far reaching auditing impacts across departments, so if a dept. cannot meet the accounting challenges of fabrications DAM & OCG will not allow them any additional fabrications. Campus Controller’s Office CU Boulder

Inventory Every Two Years Each department has to conduct an inventory every two years. The inventory should begin and end within 6 weeks. The goal is for the inventory to be a snapshot of the inventory, not a video or rolling average. A good practice for the DPM is to evaluate the condition, its use, and place of storage for the asset. Some departments develop their own equipment graveyards rather than relinquishing the equipment to property services for auction or disposal. Your laptop doorstop might be just what another department needs for a survey project. Remember our newest tool BuffSurplus Campus Controller’s Office CU Boulder

Inventory Problem & Solution A common problem with the inventory is the difficulty in knowing what the asset looks like. In 2009, $12 million dollars of equipment, 5% of total 090400- capital equipment, was listed as not found on the inventory sheets. In 2012, due to back to back inventories and the retagging of 60+% of assets this amount was less than $100,000 The most common reason for listing an asset as not found was not enough time to find it. Take a picture of the asset when purchased, print it out and place in a folder with its tag #. This will save lots of time and keep that $12 million figure down to <1%. Campus Controller’s Office CU Boulder

How to pull your own inventory list From PeopleSoft Main Menu go to Reporting tools Query Query Manager Search By Begins with UCB UCB_INVENTORY Excel Please enter dept code in ALL CAPS % then click on view results You would need to use the code for your department. If you do not know your property code please contact Jeanne @ 2-2424 The % is a wild card character if your main code is less than 4 characters When your excel document opens you may wish to delete the first row to help with sorting. Accounting & Business Support — CU Boulder

Removing Equipment from your Dept’s Inventory How is a piece removed from the Inventory Transfer Donation Trade in Sale Surplus Loss Theft Each of these situations have specific definitions, restrictions, approvals, and record keeping that must be followed Campus Controller’s Office CU Boulder

Transfers A transfer to a different CU department? Determine that there is no sponsor controls that could prevent moving to a different department If there is get OCG’s approval Fill out transfer form and submit to PAO property@Colorarado.edu This needs to be done even for non-capital items but PAO doesn’t need the form. Keep for your own records Campus Controller’s Office CU Boulder

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Transfer to another Organization Determine if there is any possible Sponsor controls (check your inventory list for an award # or controlled speed type) Can only be transferred to a non-profit agency Fill out the Sponsored Project Equipment Disposition Request Form Send form to Rebecca at OCG with enough information as to allow her to be able to check for the correct restrictions Once you have her approval to move forward, send Jeanne an email for approval and acceptance approval from the transferring institution Campus Controller’s Office CU Boulder

Sponsored Project Equipment Disposition Request Form Accounting & Business Support — CU Boulder

Donations As with a Transfer, may only be made to non- profit organizations Before your chosen non-profit can receive any piece, Jeanne of the PAO must first check if there is any needy CU department in need of the item. If there is, the equipment goes to them. Also like any transfer, all sponsor controls must be checked for and complied with. Once approvals are complete send to Jack Brubaker Campus Controller’s Office CU Boulder

Trade in, Sale, Surplus The basic process is that you will check with OCG if necessary and gain their approval Send an email to Jeanne of what you wish to do with the item(s) For Trade-Ins Follow above then contact Jack @ jack.Brubaker@Colorado.edu or @ 2-2707 For Sales follow above and then contact Steve @ Steve.Marvel@Colorado.EDU or @2-1120 Surplus is different in that you will not need approval first from PAO. After OCG’s approval to proceed you can create a DR in the Web surplus system For quicker removal from your inventory send the DR# to Jeanne and a list of items Campus Controller’s Office CU Boulder

Asset Disposal Highlights What it takes to dispose of University property Chair Approval OCG Approval if contract, grant, or agreement purchase. Fill out the Sponsored Project Equipment Disposition Request Form and send to Rebbeca Send email to Jeanne @ PAO. connely@Colorado.edu PAO will write a letter for transfers to the receiving institution transferring the equipment. www.colorado.edu/property For any questions and for forms All Gift-In-Kinds must be kept for 3 years of date received Buff Surplus, Buff Surplus, Buff Surplus……… Campus Controller’s Office CU Boulder

For a Loss or Theft For a Loss, fill out the Request to Remove Missing Equipment from Departmental Inventory form, get appropriate approvals and send to Jeanne For a Theft, Call the CU police Department and start a Police Report. Send the Police Report # to Jeanne and Risk Management Campus Controller’s Office CU Boulder

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Property Management Team The Property Management Team consists of Property Users “Custodians” Departmental Property Managers “Responsible Persons” OCG Property Manager (if funding has ties) UCB Property Accounting Property Services (when items are disposed) Campus Controller’s Office CU Boulder

Property Services Property Services manages equipment disposal. This includes equipment acquired through Contracts and Grants. Property Services maintains property disposal data, including the disposal authorization number, the date of disposal, and the method of disposal. Campus Controller’s Office CU Boulder

Just a Piece of Cake (non-capital <5,000 calories) Q and A Thanks for coming! Campus Controller’s Office CU Boulder ABS Property Accounting www.colorado.edu/property