NEOnet Presented By: Fiscal Team Fixed Assets FYE19 Closing Procedures NEOnet Presented By: Fiscal Team

NEOnet Presented By: Fiscal Team EIS FYE Closing Procedure NEOnet Presented By: Fiscal Team

EIS FYE Closing Procedure Finish all current year processing. Items received on or prior to June 30th (2019) should be added to EIS for FY2019. Any items received after June 30th can be added to the EIS pending file for FY2020. If the depreciation data has been changed so that it is necessary to completely recalculate the life-to-date (LTD) depreciation for several items, you may need to run EISDEPR. Just note that running EISDEPR will affect items that have had improvements (additional ACQTRN’s) added to them causing them to lose their true depreciation history. Recommend running EISDEPR – projection mode and for those tags that need LTD depreciation changes, manually change them in ITMSCN.

EIS FYE Closing Procedure Districts with a $ and Life Limit specified for the capitalization criteria may choose to run an EIS304 Brief Asset Listing to verify all items meeting the dollar and life capitalization threshold are on file as capitalized assets. In EIS304, select non-capitalized items and choose to select only items with an original cost equal or higher than the capitalization threshold. This will produce a listing of items that currently are not capitalized but exceed the $ threshold. Then look up tags in question to verify that the life expectancy is under the life limit threshold and therefore should not be capitalized. If you find tags that meet or exceed the life limit, please make necessary modifications. Recommend running EISDEPR – projection mode and for those tags that need LTD depreciation changes, manually change them in ITMSCN.

EIS FYE Closing Procedure When all items have been entered, run the recommended list of reports (this includes all necessary GAAP schedules). All recommended FYE reports are explained in the upcoming slides.

EIS FYE Closing Procedure EIS101 – Schedule of Fixed Assets by Source…..provides a summary of the original cost of capitalized items by their source or the fund the items were originally charged to when purchased. Source means “the fund the items were originally charged to when purchased”. EIS101 uses the PO information from the acquisition record (ACQTRN) to identify the source fund used in purchasing the items. Output file: EIS101.TXT EIS102 – Schedule of Fixed Assets by Function and Class…. produces a schedule of fixed assets by function and class. Can be generated by function and class, class or a summary by function and class. Creates a summary and detail report The Book Value on the report is the Original Cost minus the Total Depreciation Output files: EIS102S.TXT and EIS102D.TXT Explain where the EIS flash videos are… under SSDT SAAS projections or documentation page. Called ‘EIS TRAINING VIDEOS and screencasts”. There is a subsection of FYE related videos that discusses each GAAP report in detail

EIS103 Contains “changes” in capital asset balances during the current fiscal year The EIS103 creates three reports as listed below: The EIS103S is a summary report listing the beginning balance, acquisitions, dispositions, transfers in, transfers out, adjustments, and the ending balance in separate columns horizontally across the report. EIS103D is a detailed schedule of changes. This report lists any individual tag numbers that may have incurred acquisitions, dispositions, transfers, or adjustments. EIS103E is an error report. The summary and detail reports will page break on each fund type: fiduciary, governmental, proprietary, and undefined. The GAAP flag must be set to “Y” to be able to generate this report. For FYE, it is recommend to generate the report 3 different ways (AC, FC & FD). Specific entities can be included or excluded (i.e. NOGAAP) Make sure they check the EIS103 and EIS104 reports since these are what the EMIS submission are based on. Videos for each one of the EIS errors on the SSDT homepage.

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EIS GAAP Reports Totals by Fund Type on the EIS101, EIS102, and EIS103 should match when balancing out for the fiscal year-end. Any errors reported on the EIS103E report should be resolved prior to closing the fiscal year. When running the reports at the end of a fiscal year, the totals on the GAAP schedules, EIS101, 102, and 103 should match by fund type from one report to the next. When generating the EIS103, Schedule of Changes, an error report may be generated. If you get an error report, EIS103e.txt, you should look at it and attempt to resolve the errors prior to closing out the fiscal year. We will take a look at these errors in some upcoming slides.

EIS104 Contains changes in depreciation of fixed assets during the fiscal year The EIS104 creates two reports as listed below: EIS104S is a summary report listing the beginning depreciation, continuing items, acquisitions, dispositions, transfers, adjustments and ending depreciation balance in separate columns horizontally across the report. The following equation is used in determining the ending depreciation EIS104D is a detailed schedule of changes. This report lists any individual tags numbers that may have incurred acquisitions, dispositions, transfers or adjustments Reports will page break on each fund type: fiduciary, governmental, proprietary and undefined The GAAP flag must be set to “Y” in order to generate a valid report. For FYE, it is recommended to generate the report 3 different ways (AC, FC & FD). May be used as a depreciation balancing tool with the EIS305.

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Suggested Non-GAAP Reports EIS303 – Inventory Master Listing…..includes all data on file for items; VERY LARGE report – it can produce a complete listing of all items or of specified subsets (i.e. generate a report of just depreciation information for all items); don’t recommend printing out a hard copy of the report. EIS304 – Brief Asset Listing….. a one line per item listing of all items on file or subsets; The following EIS304 reports are recommended…they include capitalized items only and Status Codes of “A, N, EH, and EN” (with the exception of the disposition report). Brief Asset Listing by fund Brief Asset Listing by function Brief Asset Listing by asset class Acquisitions for current fiscal year Dispositions for current fiscal year EIS303 allows you to select what information you want reported. For example, you could choose to generate a master listing of items choosing to report just the depreciation information. EIS304 can be used as a balancing report for GAAP schedules when run for capitalized items only. The listing includes the item's asset class, fund, function codes, and original cost. This could be useful to find items on the inventory file which are missing one or more of these values which are required for GAAP reporting Also useful when creating a new inventory (for appraisal company)… you can scan through the report to find missing fund, function, asset classes and original costs.

Suggested Non-GAAP Reports EIS305 – Book Value (Depreciation) Report…..shows depreciation information listing original cost, salvage value, book value, % of depreciation, and last year of useful life. The date 06/xxxx (where xxxx is FY being closed) is used for the reporting date. The following EIS305 reports are recommended…they include capitalized items only and Status Codes of “A, N, EH, and EN” (with the exception of the disposition report). Book Value Report by function Book Value Report by class Depreciation for current FY dispositions by function Depreciation for current FY dispositions by class EIS305 will include only those items that have depreciation information entered on the item record. Can be sorted by fund, function or asset class and contain LTD, FTD and TOTAL accumulated depreciation.

Suggested Non-GAAP Reports EIS401 – Insurance Values Report…..lists insurable values and replacement cost information for items; insurable values listed reflect the insurance classifications assigned to the item categories in EISMNT/CATSCN; Recommended if the district maintains current replacement cost and/or insurable values on the inventory item records. EIS801 – Audit Report…..tracks changes made to the EIS files For FYE, select the Official Option and keep on file for the auditors used for an official audit trail EIS401 could be used to produce information annually for a district’s insurance company. If fixed assets are being insured for replacement cost value, the insurance company will need an annual update reflecting inflation for various categories of assets and broken out by building. If the replacement cost values located on the item record are updated annually, this report will produce the information needed by the insurance company. Items must have a valid item category and that specified item category must have an insurance classification associated with it in EISMNT/CATSCN (B,C,E,IM,P,V). If either of these values is missing for items, those items will not be included on the report. EIS801 audit report will show changes made to the inventory files. Changes could include adding items, making modifications, dispositions, etc. The demand option can be run at any time and will go back as far as you want. The official option will only show changes made since the last official audit report was run. Could be run on a monthly, quarterly, semi-annually, or annually basis depending on the volume of activity on the inventory system.

Capital Asset Reporting Things to check prior to running EISEMS 01xx Asset Class Have subclasses designated for land and land improvements and have assets appropriately classified into each category “Land” items should have Deprec. Method = “N” will be reported under NDL “Capital Assets not being depreciated, Land” “Land Improvements” should have Deprec. Method = “S” reported under DLI “Depreciable Capital Assets, Land Improvements” 08xx class for Construction in Progress Should have Deprec. Method = “N” so they will be reported under NDC “Capital Assets not being depreciated, Construction in Progress”

Capital Asset Reporting Things to check prior to running EISEMS Capitalized items should all have accurate “Class” Item amounts may be excluded or error generated if no or invalid Asset Class Asset Class displayed on EISSCN/ITMSCN screen 1 To check asset class, run EIS304, sorting by AC,IC Governmental assets only are reported Fund type = “G” Check Fund types in EISMNT/FNDSCN

EIS FYE Closing Procedure After checking EIS103/EIS104, run the EISEMS program (if EIS GAAP flag is turned on) An output file will be generated called EISEMS.SEQ EISEMS.SEQ file must be uploaded/collected/ submitted via EMIS-R for Period H reporting Contact NEOnet so we can save a copy of your files prior to running EISCLS! EISEMS will ask for entity id’s to include or exclude, like eis103 and eis104 reports do, otherwise will likely not ask for anything else. Will create sequential file and report file, and maybe an error file.

EIS FYE Closing Procedure Run EISCLS Creates EISCLS.TXT which includes ending balances by Fund, Function and Asset Class. (These are the beginning balances for the next year) Creates an EISDEP.TXT which is a summary report of the current year’s depreciation posted by fund. Advances EIS last FY closed flag in EISMNT/DATSCN by one year Adds one year’s worth of depreciation to LTD depreciation field Updates beginning balance fields for new FY Once EISCLS is complete, they may start entering inventory for the new fiscal year.

EIS FYE Closing Procedure If GAAP flag is not turned on, ITC needs to assist in helping the district start up on GAAP by running EISGAAP. EISGAAP: run only once and at the beginning of the GAAP startup year. Sets GAAP flag in EISMNT/DATSCN to “Y” Creates beginning information fields for each asset (EISITM.IDX) Generates a beginning balance report for the GAAP startup year Once EISGAAP is complete, they may start entering inventory for the new fiscal year.

Reminder Deadlines Capital Assets Period Closes September 2019