Fixed Assets Management of Capital Equipment at the University of Virginia

Introduction to Capital Equipment Management Equipment Additions Equipment Additions Equipment Disposals Equipment Disposals Equipment Tracking & Maintenance Equipment Tracking & Maintenance The Inventory Process The Inventory Process Financial Reporting Financial Reporting

Equipment Additions There are four ways that capital equipment gets added to the Fixed Assets module There are four ways that capital equipment gets added to the Fixed Assets module –Purchases of $5,000 or more made in the Purchasing Module “PO/AP” but ETF equipment has $500 threshold –Cost Transfers »Example: Cavalier Computer –Gifts-in-Kind (IX.A.11) –Releases From Sponsors or Other Universities (X.A.3) to UVA

Equipment Disposals There are a number of reasons for removing equipment from the Fixed Asset module There are a number of reasons for removing equipment from the Fixed Asset module –Surplus (V.II.A.6) – Use P-1 form and “Request to Surplus” E-form at –Release to Other Universities (X.A.2) - Use Form P-1, and attach explanation from PI (Principle Investigator) & “Request to Surplus “ form –Trade-In Use Form P-1 Request and Document PO (Purchase Order) Number –Cannibalization Use P-1 Request –Donate Use P-1 Request & “Request to Surplus” form –Abandoned or Missing – Use P-1 Request –Stolen Use P-1 Request & file police report

Equipment Tracking & Maintenance The orgs are primarily responsible for their capital equipment and its maintenance. The orgs are primarily responsible for their capital equipment and its maintenance. Fixed Assets Accounting is responsible for oversight of capital equipment policies for the University Fixed Assets Accounting is responsible for oversight of capital equipment policies for the University As the Equipment /Property Contact you are responsible for the tracking and management of equipment for your organization – so what do you need to do? As the Equipment /Property Contact you are responsible for the tracking and management of equipment for your organization – so what do you need to do? –Verify information in the system is accurate –Ensure that Off-Ground Forms are filed promptly –Contact the Fixed Assets Accounting Office when changes need to be recorded for location, assignment, etc. –Complete and submit P-1 forms as needed

The Inventory Audit Process The Fixed Assets Accounting Staff scans the equipment in an organization The Fixed Assets Accounting Staff scans the equipment in an organization The Organization’s Equipment/Property Contact is notified that the scan is complete and they must run a report for equipment that was not accounted for The Organization’s Equipment/Property Contact is notified that the scan is complete and they must run a report for equipment that was not accounted for The Fixed Assets Accounting Staff returns to scan equipment that was found and records equipment verified to be off-grounds The Fixed Assets Accounting Staff returns to scan equipment that was found and records equipment verified to be off-grounds Remaining equipment not accounted for is considered missing and a certification form needs to be completed Remaining equipment not accounted for is considered missing and a certification form needs to be completed

Financial Reporting Sponsor Annual Report in September of each year Sponsor Annual Report in September of each year Annual Report to SCHEV in October of each year Annual Report to SCHEV in October of each year Final Sponsor Property Reports Final Sponsor Property Reports Annual Report to Budget for ETF Allocation Analysis Annual Report to Budget for ETF Allocation Analysis Annual Financial Statements Annual Financial Statements

The Role of the Fixed Assets Accounting Office Responsible for management, oversight and reporting for all University equipment assets Responsible for management, oversight and reporting for all University equipment assets Administrators of Fixed Asset Module of Oracle and responsible for any data updates to the system Administrators of Fixed Asset Module of Oracle and responsible for any data updates to the system Responsible for tagging newly acquired equipment assets and collecting asset information with electronic scanners Responsible for tagging newly acquired equipment assets and collecting asset information with electronic scanners Responsible for UVA and Gov’t inventory Responsible for UVA and Gov’t inventory Responsible for control of asset retirements Responsible for control of asset retirements

The Role of Equipment/ Property Contacts Provide information to the Fixed Assets Accounting Staff for ALL equipment related activity Provide information to the Fixed Assets Accounting Staff for ALL equipment related activity Review equipment inventory reports to ensure that your organization’s equipment is properly accounted for Review equipment inventory reports to ensure that your organization’s equipment is properly accounted for Stay current on equipment policies and procedures Stay current on equipment policies and procedures –Visit Fixed Assets Accounting’s website –Call or Fixed Assets Accounting Staff with questions

How Oracle Changes the Way We Do Business Each person with FA Viewer or FA Self- Service access can query the Fixed Assets Module directly Each person with FA Viewer or FA Self- Service access can query the Fixed Assets Module directly Each person with Discoverer can run their own reports Each person with Discoverer can run their own reports Equipment in the Fixed Assets Module can be updated from the integrated Oracle Purchasing Module Equipment in the Fixed Assets Module can be updated from the integrated Oracle Purchasing Module

The Purchasing Module Accuracy Accuracy –It is very important that ALL users in your organization input data into this module correctly »Description: Must be completely filled out, using noun first and followed by adjective. “Lab equipment” is NOT sufficient if you have purchased a “laser, high intensity”. »Quantities: Must be on purchase order. On LPO show in description; remember that items with many accessories will be tagged as one item so you can put this on one line in the purchase order (ex. Microscopes) »Freight & Installations: Code as part of capital equipment. »Training is NOT part of the value of the capital equipment »Expenditure Type: It’s got to be right or a cost transfer has to be done. »Furniture is always non-capital equipment regardless of threshold cost or quantity

The Importance of Expenditure Types The core data element for Fixed Assets Accounting reporting The core data element for Fixed Assets Accounting reporting Understanding the signs…. Understanding the signs…. –Use these for UNIT cost not total cost >/= $5K: greater than or equal to $5,000 >/= $5K: greater than or equal to $5,000 <$5K: less than $5,000 <$5K: less than $5,000 Cost transfers Cost transfers –If the original expenditure category is wrong you need to do a cost transfer according to the instructions for the Grants Management module

Equipment/Property Contacts must: Fill Out the P-1 Form When… Fill Out the P-1 Form When… –Transferring Equipment internally –Disposing of Equipment –Releasing equipment to another institution –Receiving specific types of Acquisitions Review their Reports Monthly To… Review their Reports Monthly To… –Ensure each organization has accounted for all capitalized equipment as well as Government-Furnished or owned equipment Inform the Fixed Assets Accounting Staff if equipment has changed location or assignment Inform the Fixed Assets Accounting Staff if equipment has changed location or assignment Review missing inventory lists and work with the Fixed Assets Accounting Staff to reconcile any differences Review missing inventory lists and work with the Fixed Assets Accounting Staff to reconcile any differences Ensure Inventory Certification is completed & submitted Ensure Inventory Certification is completed & submitted Ensure Off-Grounds certifications are completed & submitted Ensure Off-Grounds certifications are completed & submitted

Items You Will Need Contact Information Contact Information List of Expenditure Types (Discoverer Report) List of Expenditure Types (Discoverer Report) The P-1 Form and Instructions The P-1 Form and Instructions Inventory Certification Form Inventory Certification Form Off-Grounds Equipment Certification Form Off-Grounds Equipment Certification Form

Fixed Assets Accounting Staff NamePosition Phone Gary Young Director - Fixed Assets Accounting Malika Ouenza Manager - Plant Accounting Donna Cox Manager - Equipment & ETF Accounting Larry Norem Equipment Specialist Mike Williams Equipment Inventory Specialist