Capital Asset Management November 14, 2007 Today’s Presenters: Shelley Pierce, Senior Accountant San Joaquin Delta College Anna Jensen, Director of Auxiliary Accounting, Capital Asset Management, Accounts Receivable, and Student Loan Administration Indiana University

Presentation Outline Introduction CAMS SME Members Kuali Roles & Responsibilities System Overview/Benefits Key Accomplishments Future Plans

CAMS SME Members San Joaquin Delta College, Lead SME, Shelley Pierce Indiana University, SME, Anna Jensen Indiana University, Business Analyst, Theresa Cain University of Southern California, Developer, Mark Morris University of Arizona - Alan Blumberg, Cornell University – Nancy Abbott University of Hawaii – Gilbert Kuroda Michigan State – Boyd Shumaker University of California, Davis – Delanda Buchanan University of California, Irvine – Helen Wessel University of California, Santa Barbara – Vaughn Boyle

Kuali CAMS Group Roles & Responsibilities Develop and enhance the IU Asset Management System to meet the baseline needs of member institutions. Provide a system that allows member institutions to manage data regardless of size, scope. Develop functional specifications and training documents that meet the needs of member institutions. Develop a system that meets GASB/FASB standards.

System/Module Overview Flexibility is “built-in” to the system (user access, searchable data elements, field length, notes, etc.) Standard reconciliation reports are available Maintains query based reporting tools. Functional Specification documents are “key” to module development as they provide an overview of module processes. Business Rules are established for each module of the CAMS/CAB system and are used by the user/developer as a guideline of how the module works. Business Requirements and Assumptions provide a list of the top level requirements of the module. Flow of Events Section provides an overview of available user scenario descriptions and/or use cases. Workflow and Routing Defines how documents are routed to the appropriate fiscal officer or delegate. Database Objects/Permissions

System Benefits Automation of journal entries Standard reporting and reconciliation tools Multiple user access Ability to handle specialized government reporting requirements Inventory tracking and reporting System Integration consistent with Kuali FIS system. Automated process for creation of capital assets Automation of manual processes, data entry Ability to accept batch feeds from other systems Web Access by Department Note: Based on analysis of processes of participating institutions

Key Accomplishments to Date Completed review/training on IU CAMS/CAB system. Developed detailed documentation related to current business rules, workflow and routing actions, permissions, and database objects. Identified baseline system requirements. Completed detailed “wish list” of enhancements for consideration in future phases.

Future Plans/Looking Ahead “Hands-on Training” using sample data Develop final versions of functional specification documents Develop a state of the art non-moveable additions process Testing

Asset Activity at Indiana University For Year Ending June 30, 2006 Capital Assets  Total net capital assets $1,839,661(in thousands of dollars)  Count of moveable additions 1,399 Capital Asset Management Staff Plant Fund Accountant Asset Creator Inventory/Tagging Manager Data Manager

Structure for Capital Asset Management  University Capital Asset Office  Campus Capital Asset Offices  Departments Capital Asset Management at Indiana University CAMS System History  The Capital Asset Builder was implemented in March of 1993  The Capital Asset Management system was deployed in October 1994

Accuracy of Data Valid Values –Asset Type Code –Condition –Inventory status System Edits –Active Account Business Rules –Non-capital asset inventory status = “N”. Reconciliation Reports

IU Asset Categories Capital Moveable –Equipment –Fabrications –Lease Purchases Capital Non-moveable –Art and Museum –Bonds –Buildings & Building Improvements –Infrastructure –Land –Leasehold Improvements –Library books Non Capital

How the assets are created at IU Capital Asset Builder (CAB)  Equipment  Fabrications assets are created by the fabrication document. Invoices modify the existing asset.  Capital Lease assets are created on a Financial Document  Art and Museum Add Asset Document & Add Payment Document  Bonds  Buildings & Building Improvements  Infrastructure  Land  Leasehold Improvements  Library books Add Asset Document  Non-capital assets are created by departments  Capital Equipment Gifts

Additions Processed in CAB Moveable additions are processed in the Capital Asset Builder. Process: –Requisition issued in the Electronic Processing and Invoicing Center (EPIC). Capital object code is assigned. Purchase Order is approved –Payment Request is issued and approved »Payment hits the General Ledger »Batch process loads data into CAB

Requisitions and PO’s – where it all begins PO is approved and sent to the vendor EPIC CAMS document is created Requisition is Approved, creating a PO Departmental user creates the requisition in EPIC

Equipment is Delivered Vendor invoice is Created and sent To IU Vendor Ships Product

PREQ ->General Ledger -> CAB Invoice arrives at IU Invoice is processed in EPIC creating a PREQ Invoice is scanned and indexed in OnBase PREQ w/ invoice image routed for approval through workflow PREQ is approved PREQ is extracted to general ledger Data is loaded into CAB

Payment Request (PREQ) Items

EPIC CAMS Document

One System Task

EPIC CAMS Document

Capital Asset Builder (CAB) Invoice Line Items  Moveable Equipment purchased on PO  Art and Museum Items  Fabrications Additions are Created by the University Capital Asset Office

Data Flow for Capital Asset Builder General Ledger FIS Financial Document with Capital Object Code PREQ is extracted to general ledger

Processing Transactions CAB GL Transaction Screen CAB Invoice Line Item Screen Purchasing Invoices (PREQ) Pre-asset tagging

Creating the Asset Process PREQ, Line item is ready to create asset Pre-Asset Tagging table is checked to see if data exists CAB Create View Asset Screen Asset is saved to CAMS Database

Invoice Line Item Screen

Additional Charges Allocated Next insert line 2 from pending

Inserted from Pending Next add line 8 to line 1

line 8 has been added to line 1 Next Create Asset

Create View Asset Screen

New Version Invoice Line Item  Trade-ins are allocated in CAB by pressing the “allocate” button.  The allocate routine will first allocate any additional charges (freight); then allocate the trade-in allowance. Processing Trade-ins

Allocate Trade-in Once the Freight and Shipping and Handling are allocated a dialog box will be presented with the following message:

Capital Asset Builder (CAB) GL Transactions Capital Leases Account Changes Object Code Corrections Refunds (cash receipt) Procurement Card Purchases

Example: General Error Correction

Modify an Asset

Enter Pending Asset Information

General Ledger Transactions

Create View Asset Screen

Document Group Selection

Add Asset Document Non-moveable Additions Gifts, Found, and Transfers- in Non-capital Assets

Asset Retirement

Asset Transfer Capital and Non-capital assets can be transferred

Equipment Loan/Return Capital and Non-capital assets can be loaned on the Equipment Loan Return Document

Fabrication Moveable Equipment Construction In Progress Control assets

CAMS Maintenance

Maintenance Screens & Security  Maintenance Screens do have restrictions –University Capital Asset Office –Campus Capital Asset Offices –Organizations

Capital Asset Maintenance

Capital Asset Lookup

Location Maintenance

Pre-asset Tagging

Pre-asset Tagging (tagging) screen

Tag an Asset

Merge an Asset

Separate an Asset

System Manager Maintenance

Physical Inventory Intermec Antares Trakkers scan equipment. Filecopy utility is used to extract file and copy to PC. File Uploaded to FIS Bar-code Error Document Inventory Reconciliation Report

File Upload

Bar-Code Error Document

Depreciation Depreciation expense is calculated from a stored procedure that updates the asset database on a monthly basis. The Straight Line method is the basis for the calculation, along with a method for Salvage Value. Federally owned payments are excluded from the depreciation calculation. In addition, no Deprecation will be taken on Art and Museum Objects, Land, or Leasehold Equities. Each asset is depreciated from the asset create date, and the assets useful life assigned to the asset type code. Non-Movable assets use a ½ year convention for assigning the create date. The Deprecation entries Debit Object Code 51XX, Depreciation Expense, and Credit the appropriate Accumulated Depreciation Object Code based on the Object Code Sub Types in the Asset Object Code Table.

Asset Object Code Table YearChartSubTYCptlztnAccumDepr 2005BAAM BABD BACM BACO 2005BAIF

Reconciliation Additions Retirements Transfers Depreciation Expense Ending Balances

Pre-Defined Queries Capital Asset Management has made available the following reporting categories to assist organizations in asset management. Inventory Control ReportsNbr of rpt9 Depreciation ReportsNbr of rpt4 Edit ReportsNbr of rpt 10 Summary ReportsNbr of rpt 4 Internal ReportsNbr of rpt 15 Screening ReportsNbr of rpt 1 Capital Lease ReportsNbr of rpt 2

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