Are they an item or just friends? Asset Accounting and Asset Management - Are They An Item or Just Friends Bob Mahaney, CPPS Manager of Program Accounting and Finance University of Texas - MD Anderson Cancer Center

Who is in the room? New member this year? First NES?

Who else is in the room? Type of business? University Contract Property/Federal State/Local Government Private

I heard they were just friends. Well, that’s not what I heard! Asset Accounting & Asset Management

Let’s find out. Do they have common ground?

Terminology Break We need some abbreviations. AA = Asset Accounting AM = Asset Management

AM Duties Tagging assets. Annual physical inventory. Manage surplus/reutilization warehouse. No debits or credits so far.

More AM Duties Tracking the movement of assets. –Capital assets. –Computers. –Other sensitive assets. No beans to count yet.

More AM Duties Missing property report. –Department –Number of assets missing –Net book value Starting to see some $ signs.

More AM Duties Asset disposals from surplus/reutilization warehouse. –Each capital asset generates a gain/loss. –Gains/losses hit the Income Statement. Seeing bigger $ signs now.

AA Also Has Duties Reports the results of financial transactions. Analyzes the results for management. Provides gain/loss explanations.

I hear they have nicknames now. Well, that’s not what I heard! AA & AM

Sharing the Asset Life Cycle AA and AM

Receiving AM –Monitors process for consistency. –Enforces the tagging upon receipt policies. –Proper asset descriptions.

Receiving AA –Identifies assets to be received during acquisition prior to PO being issued. –Relies on receiving process to provide supporting documents for matching.

Physical Inventory AM –Performs an accurate physical inventory. –Reports inventory results to management. –Shares new asset data with AA.

Physical Inventory AA –Relies on the physical inventory process as a financial control. –Works with AM to resolve discrepancies.

Disposals AM –Coordinates asset reutilization to determine which assets are ready for disposal. –Provides accurate supporting documentation for each disposal.

Disposals AA –Records disposals in the asset system. –Posts financial transactions to ledger. –Analyzes gains/losses for management.

Chicken or the Egg First barcode. –Patented on October 7, Abacus –Used for centuries.

Egg or the Chicken Critical institution level functions. –AA has some. –AM has some.

Does it matter? No!!! –Assets exist! –Assets are tracked! –Management want reports with $ signs!

Integrated Asset Systems Brings functional areas together. –None closer than AA and AM. Brings dysfunctional areas to the table. AA and AM have a great interest in dysfunctional areas.

Shared Opportunities Managing the in-laws. –Convince management AA and AM are a team with solutions. –It’s okay to discuss the in-laws.

Shared Opportunities Presenting a united front. –Openly support each areas policies and procedures. –Don’t hesitate to ask “How would you suggest we handle this issue?”

Shared Opportunities Collaborate on policies and procedures. –Each group has a different source of institutional information. –Apply each groups expertise to deliver institutional solutions.

I hear they are an item. I heard that too! Well, what do you think now?

Questions? One last thought for the day.

Laissez les bons temps rouler!