Equipment Inventory Subsystem EIS Equipment Inventory Subsystem

What is EIS used for? Inventory and repots of fixed assets Capital asset information and Depreciation for GAAP reporting Insurance purposes Control and accountability Complete fixed asset identification and valuation may prevent a district from being over or under insured. In the event of a loss, property valuations, descriptions and locations are necessary to insure full recovery under the insurance policy Depreciation for capitalized assets must be recorded. The amount of accumulated depreciation plus the amount of depreciation expense must be maintained for reporting purposes With the new EMIS-R redesign, they are currently working on a new schedule for capital asset information.

What is a Fixed Asset? Property, building, and equipment Has an extended useful life Tangible Not a repair or supply part Becomes a Capital Asset if item meets the Dollar and/or Life Limit set by the district Items meeting the fixed asset criteria are classified by major categories such as land, buildings, improvements other than buildings, furniture and fixtures, machinery and equipment and construction-in-progress. Other categories may be identified and reported by district if considered significant.

Foundations –A certain percent of the original cost of buildings can be assigned to the foundation in order to exclude building foundations on the Insurable Values Reports. You should consult your insurance provider to determine if they want a reduction for the foundations and if so, what percentage to use. GAAP Flag---set to 'Y' by NWOCA at the beginning of the first year the district goes on GAAP; set to 'N' for the pre-GAAP period. This flag has significant effect on the EIS software. Once the flag is set to 'Y', there are restrictions on the user. The GAAP flag and fiscal year closed fields can not be updated through DATSCN. Highest Tag No---the highest tag number currently in use on the EIS system. This field may be initially set by the user. Thereafter, it is automatically updated when adding new items through EISSCN. Using USAS Function Codes? – It is not mandatory to use the standard USAS function codes in EIS although most districts do. Using Received Date---determines what date will be used as the acquisition date when adding items from the pending file. By default “N”, the invoice date will be pulled. If answer “Y”, the received date will be used instead.

Getting Started in EIS Establish Board Policy: Capitalization Limits Dollar Limit Life Limit How to handle controlled items necessary for tracking? CAPITALIZATION LIMITS - HIGHER THE $ LIMIT, FEWER ITEMS CAPITALIZED DETERMINE $ LIMIT BY LOOKING AT PAST HISTORY OF ITEMS PURCHED USING 600/700 OBJECT CODES **a certain percent of the original cost of buildings can be assigned to the foundation in order to exclude building foundation on insurable values reports**

As items are invoiced, the system will keep them together in the pending file….. based on the system flags. Let’s look at the system flags….

Posts directly to the EIS Pending File EIS flags in USACON USASDAT/USACON Posts directly to the EIS Pending File Can set a dollar limit threshold for Pending File Y = will post 5xx/6xx object coded items N A = Automatically will post only 6xx object coded items 500 = supplies & materials 600 = capital outlay 700 = capital outlay replacement If you prefer not to have items entered on the pending file unless their dollar value meets a certain threshold you can also enter a dollar amount as a threshold in USACON. When specified, only items with an “extended cost” equal to or greater than the threshold will be added to the pending file. The extended cost being the total cost of the p.o. item. For example, a p.o. item consisting of 2 desks for $75.00 each would be added to the pending file because the extended cost is $150.00.

An override of the USACON system flag - if these items should be added into EIS. Select “Y” and the items will appear on the Pending Report or the opposite is true.

Menu> EIS #3 - EISMNT Some of these codes are predetermined by ODE Some codes are GAAP required Some codes are not GAAP required but are crucial in using EIS software efficiently as well as in running many reports Let’s cover each one of these code maintenance programs in detail…

CLSSCN - Asset Class Codes Asset classes define broad classes of fixed assets. GAAP reporting requires that each item be assigned an asset class. ODE defines the first 2 digits (listed below) and the last 2 digits can be defined by the district. 01 LAND & IMPROVEMENTS 02 BUILDINGS & BUILDING IMPROVEMENTS 03 FURNITURE, FIXTURES AND EQUIPMENT 04 VEHICLES 05 INFRASTRUCTURE 06 BOOKS 08 CONSTRUCTION IN PROGRESS

CATSCN - Item Category Codes Codes can be numeric or alphanumeric (AUDV or COMP) The insurance class and inflation rate fields are optional. In order for an item to be included on the EIS401 report, it must be associated with an item category and the item category must have some insurance classification associated with it. If either of these are not assigned, the item will be excluded from the insurance value report The inflation rate makes it possible to run a mass change program to update the replacement costs of all items in a category. Insurance classes can be: B = Buildings C = Contents E = Excluded IM = Inland Marine – items that move/float from building to building P = Property in the Open V = Vehicles The asset class is a GAAP required field and the life limit is necessary for meeting capitalization criteria as well as for calculating life-to-date depreciation. The life limit values specified here are also used by EISCHG option for updating depreciation information. Item Categories are used to further subdivide asset Insurance Values: B = Buildings C = Contents E = Excluded IM = Inland Marine P = Property in the Open V = Vehicles When adding a new item in ITMSCN, the asset class and useful life will automatically populate

DATSCN - EIS Configuration Data Specifies the criteria items have to meet to be capitalized assets and included on GAAP schedules. If Dollar Limit and Life Limit are used, an item must meet both Rarely used - To exclude a % of the foundation (of the buildings) from the insurable value Foundations –A certain percent of the original cost of buildings can be assigned to the foundation in order to exclude building foundations on the Insurable Values Reports. You should consult your insurance provider to determine if they want a reduction for the foundations and if so, what percentage to use. GAAP Flag---set to 'Y' by NWOCA at the beginning of the first year the district goes on GAAP; set to 'N' for the pre-GAAP period. This flag has significant effect on the EIS software. Once the flag is set to 'Y', there are restrictions on the user. The GAAP flag and fiscal year closed fields can not be updated through DATSCN. Highest Tag No---the highest tag number currently in use on the EIS system. This field may be initially set by the user. Thereafter, it is automatically updated when adding new items through EISSCN. Using USAS Function Codes? – It is not mandatory to use the standard USAS function codes in EIS although most districts do. Using Received Date---determines what date will be used as the acquisition date when adding items from the pending file. By default “N”, the invoice date will be pulled. If answer “Y”, the received date will be used instead. Do you intend to use the standard USAS codes for the EIS function/ activity codes (stored in FNCSCN) The acquisition date can either be the invoice date or the received date when pulling items into the pending file

DSPSCN - Disposition Codes Disposition codes are required for posting disposition transactions and are defined at the district level.

FNCSCN - Function Codes The Function Codes are used to define the current function or activity for which the asset is being used. This could be different from the function used in purchasing the item. Function codes are required for GAAP reporting.

FNDSCN - Fund Codes Types include: Governmental (G) – how most governmental functions typically are financed. Proprietary (P) - "commercial type" funds which are used for business type activities. Fiduciary (F) - funds which are held in a trustee capacity for other governmental funds. To figure out what fund should be used, you should look at the location of the item for a clue as to its use. For example, any item located in the cafeteria would be fund 006. Then look for any exceptions. It is recommended that USAS codes be used for these EIS codes, but possibly not to the same degree of detail. The Fund Codes are used to define the current fund for which the asset is being used. This could be different from the fund used in purchasing the item.

LOCSCN - Location Codes Either can be alpha or numeric. The Location Codes define where the item is located and is required when adding an item Number = Room number/location Category = Building

ORGSCN - Organizational Units Describes who is responsible for an item (could be a building, department, office). Usually the same OPUs from the budget accounts in USAS

EIS001 Report Report that lists the codes created in the EISMNT After the local codes for a district have been entered through the program EISMNT you should run this program to give you a hard copy of these codes to keep on hand for reference and to include in a board policy manual. You would only need to re-run this report if any of the locally defined codes were changed, or new codes were added

EISSCN EISSCN…..used for adding new items and maintaining data on file for existing items

EISSCN Overview ITMSCN…..used in adding new items, viewing and modifying existing items ACQTRN…..used to post acquisition transactions for items and record payments on items DSPTRN…..used in disposing items - posts disposition transactions and sets the status of the item to “D” TRNTRN…..used in transferring an item’s fund, function, or class

ITMSCN You are limited to manual modifications that can be made to item records. Specifically, the fund, function, class, and original cost of items are non-modifiable. Changes to these fields must be done by posting transactions via the other modules found under EISSCN. It also becomes necessary to post an acquisition transaction when adding a new item to the inventory.

Shows if an item is capitalized or non-capitalized ITMSCN Screen 1 of 3 Shows if an item is capitalized or non-capitalized The Asset Class, Function, and Fund and Original Cost are not modifiable when the GAAP flag is set to “Y”. Replacement Costs: the cost of replacing a fixed asset Insurance Value: fixed asset value for insurable purposes Displays Tag #, Item Category, Status, Location, Function, Fund, and Asset Class Required fields

Required: Acquisition Date, Method and Original Cost ITMSCN Screen 2 of 3 Required: Acquisition Date, Method and Original Cost The second screen displays the acquisition information and depreciation information. An item needs to have a valid acquisition date and original cost in order to be reported properly for GAAP. A depreciation method, beginning date, and life expectancy are also required for tracking depreciation. Salvage Value: no salvage values need to be included per GASB34 Depreciation is necessary for capitalized items. Beginning Date is required if Method is set to “S” Life Expectancy is used for depreciation and necessary for capitalized items

ACQTRN Acquisition record - primarily the purchase order information Acquisition transactions - posted automatically through the ADD option of ITMSCN It may also be necessary to post acquisition transactions for existing items for items that has been improved, adding to the value of the original cost

ACQTRN – Acquisition Transactions The acquisition amount and update original cost flag can not be modified on acquisition transactions unless the acquisition was entered in the current fiscal year. All PO information will be pulled from the Pending File if adding items directly from the Pending file. The USAS account code displayed in ACQTRN is the source account or the budget account the item was purchased from. The Function and Fund to the bottom right of the screen are the fund and function the item is used for and come from ITMSCN.

PENDING Review Pending File This option of EISSCN allows you to view or delete items that are being held on the EIS pending file Pending File = a holding place for fixed assets as they are acquired by a district. Stores purchase order information necessary for adding the items to EIS. Items are placed on the pending file in 2 ways: Running the EIS program EISPND – transfers all items on the USAS invoice file with an object code of 6XX – 7XX in the associated charge account to the pending file. EIS Flags in USASDAT/USACON and USASWEB/Invoice EISRPT/EIS501 – Pending File Report EIS501 is used to print out a pending file report. If tag numbers were being assigned by different organizational units, this report might be used to obtain the tag numbers for items which were waiting to be entered on the inventory file. The report could also be used to see if any of the items on the pending file should be deleted.

EISPND EISPND will prompt for an invoice date range, placing all items on the USAS invoice file invoiced during the specified range onto the pending file. This method is normally used when first starting up on EIS and creating a new pending file. In this instance, EISPND would be run prior to setting the EIS flags on the USASDAT/USACON file. EISPND will check to see if items are already on the pending file to avoid duplications. However, it is unable to check for items that may have previously been on the pending file and already added to the inventory.

Review PENDING

DSPTRN Posting a disposition transaction keeps the Item record on file changing the status to "D“ (Disposed of) on the ITMSCN record.

TRNTRN Transfer transactions are posted to record a change in an item's: asset class Fund function codes

TRNTRN Transfer Transactions 3 Types of Transfers: FD = Fund Transfer FC = Function Transfer CL = Asset Class Transfer Error Adjustment should be set to “Y” if transfer was done by mistake or was supposed to be made in prior year; it will put the amount in the "adjustments" column of the Change Schedule (EIS103) instead of the “transfers" column