Fixed Assets Policies and Procedures for Fixed Asset Purchases Good morning/ Good Afternoon! I’d like to welcome everyone today and thank you all for your interest in learning more about Fixed Assets Policies and Procedures. Click for title Today‘s workshop is to give you information on the most current policies and procedures in the Fixed Assets Section. I hope to answer any questions that you may have. Click for subtitle Let me introduce myself and the Fixed Assets staff. Click for name Introductions-Names and Positions Ask questions about any part of the presentation. I will stop at the end of each section for questions about that area before moving on to a new subject, so please feel free to ask. If I move too fast for you that take notes, signal me and I’ll slow down. Will be an open question and answer period at the end of the presentation. Robette Edwards, Fixed Assets Supervisor 9/22/2018 Fixed Assets Section of Accounting Services

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 Determining correct cost of assets recorded Maintaining the University Fixed Assets accounting records that document equipment and property acquisitions and which are part of the annual University Financial Statements. Click for title Automated until stars are up. Click for first paragraph and ledger graphic. Click for second paragraph. Click for Auditing statement. Basically, our responsibility is to maintain records that reflects the actual physical equipment on campus as accurately as possible at the current time. This requires the cooperation of the custodian departments to provide this information. We are part of Accounting Services under the Financial Services Dept. 9/22/2018 Fixed Assets Section of Accounting Services

New Fixed Asset Purchases The first area we will look at is New Assets. These are newly purchased assets that meet the criteria for being added to the Fixed Assets system. 9/22/2018 Fixed Assets Section of Accounting Services

Fixed Assets Section of Accounting Services What are Fixed Assets? DEFINITION Capitalized fixed assets are land, buildings machinery, tools or furniture (Property, Plant and Equipment) that: Are used in course of business operations Have a normal life expectancy of two years or more 9/22/2018 Fixed Assets Section of Accounting Services

Fixed Assets Section of Accounting Services What are Fixed Assets? Includes 3 types of assets- 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 Software, copyrights, etc 9/22/2018 Fixed Assets Section of Accounting Services

Fixed Asset Cost Threshold $5,000 or more Per Asset ONLY The recorded cost of each capitalized fixed asset in the General Ledger includes: Asset Cost + (tax) Installation Fees Delivery Fees Legal Fees + + + $3995.00 $300.00 $500.00 $1300.00 *All/Any of these must be combined to equal the NC State threshold of $5,000 IF the Total Cost ≥ $5,000 appropriate purchasing expenditure codes are required 9/22/2018 Fixed Assets Section of Accounting Services

Fixed Assets Section of Accounting Services 9/22/2018 Fixed Assets Section of Accounting Services

Fixed Assets Section of Accounting Services 9/22/2018 Fixed Assets Section of Accounting Services

Banner Fixed Asset Account Codes Fixed Asset account codes all begin with 203### WARNING!! Some EDP non-capital 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. 9/22/2018 Fixed Assets Section of Accounting Services

How does the fixed asset become an asset? WHERE DOES IT HAPPEN? A cost summary of asset values are recorded in the General Ledger (capitalized) while supporting detail is maintained within Fixed Assets. HOW DOES IT HAPPEN? Triggered by invoicing and receiving transactions, CAPITALIZED asset records are created in the GL & Fixed Assets modules automatically based on YOUR entry of: the capital expenditure account code used by the purchasing organization and the $5000.00 threshold for capitalization. 9/22/2018 Fixed Assets Section of Accounting Services

How does the fixed asset become an asset? Therefore, a required list of appropriate expenditure account codes is used when the acquisition cost is greater than or equal to $5,000. The capital account code you choose will create a capitalized and/or several non-capitalized Otag records that: are to be joined by Fixed Assets staff for the complete asset over $5,000. can only be removed by a Journal Voucher by Fixed Assets Accounting. are assets to be permanently added to the Fixed Assets Module of the Finance database. Click for title Automated until stars are up. Click for first paragraph and ledger graphic. Click for second paragraph. Click for Auditing statement. Basically, our responsibility is to maintain records that reflects the actual physical equipment on campus as accurately as possible at the current time. This requires the cooperation of the custodian departments to provide this information. We are part of Accounting Services under the Financial Services Dept. 9/22/2018 Fixed Assets Section of Accounting Services

Things to remember for purchases Use EA for ‘Each’ as the Unit of Measure when purchasing assets with Quantity Unit Price. 2 @ $5867.00 EA $11,734.00 9/22/2018 Fixed Assets Section of Accounting Services

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. 9/22/2018 Fixed Assets Section of Accounting Services

Fixed Assets Section of Accounting Services 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 9/22/2018 Fixed Assets Section of Accounting Services

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.) 9/22/2018 Fixed Assets Section of Accounting Services

Fixed Assets Example: Bus with Handicap Lift Installation 1,000.00 Total Cost $7,000.00 (To be installed into Asset N00067962-Bus) 9/22/2018 Fixed Assets Section of Accounting Services

Things to remember when purchasing Fixed Assets: Extended Warranties Maintenance Agreements 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. 9/22/2018 Fixed Assets Section of Accounting Services

Fixed Asset Example: Copier 9/22/2018 Fixed Assets Section of Accounting Services

Fixed Assets Section of Accounting Services How we can help you! Fax or scan quotes to us for help with correct account codes for fixed asset purchases before your requisition is entered incorrectly Attend our workshop for all updated information, instructions, and policy changes. On UNCG Website, go to: Financial Services, Information, Workshop Registration, Banner Finance, A/P and Fixed Assets Workshop. 9/22/2018 Fixed Assets Section of Accounting Services