Capital Asset Management November 14, 2006 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 Theresa Cain, CAMS Data Manager Capital Asset Management System Indiana University

Presentation Outline Introduction CAMS SME Members Kuali Roles & Responsibilities CAMS System Overview CAMS System Functions 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 Arizona - Alan Blumberg, Diane Dobbs, John Jennings, Mary Vega, Doug Hilyard, Ned Tomsheck, Danette Golis-Variano and Tracey Purcell Cornell University – Nancy Abbott, Steven Myer University of Hawaii – Gilbert Kuroda, Kevin Hanaoka, Neil Kumasaka, Suzanne Izumi, and Phyllis Nicol Michigan State – Boyd Shumaker, Beverley Garrison, Keven Lewis, Glenn DeYoung University of California, Davis – Delanda Buchanan University of California, Irvine – Helen Wessel, Bent Nielsen University of California, Santa Barbara – Vaughn Boyle

Kuali Roles & Responsibilities Training and Development of SME members Develop and review detailed specifications GASB/GAAP Compliance User Testing Implement Asset Management System based on the current system at Indiana University. Develop flexible system to manage data for all institutions regardless of size, scope Identify, develop, understand and communicate functionality of current system Communicate with group members, development team and Functional Council

CAMS System Overview Tracks and maintain capital and non-capital assets Supports depreciation, tagging and inventory tracking Provides Non-Moveable Asset Tracking Facilitates management of internal projects/processes: fabrications, location maintenance, asset security, component assets, retirements, asset transfers and equipment loan returns Maintenance & Security Maintains query based reporting tools Standard reconciliation reports are available Flexibility is “built-in” to the system (user access, searchable data elements, field length, notes, etc.) Data Flow-Procurement-Financial-Moveable-CAB-CAMS. System provides financial transaction feed from GL to CAB.

CAMS System Functions Automation of journal entries Ability to calculate depreciation Standard reporting and reconciliation tools Multiple user access Ability to handle specialized government reporting requirements Provide information for F&A calculations Inventory tracking and reporting GASB, State and Institutional policy reporting and compliance Fixed Asset system accounting system integration Allocate building costs Data Integrity Web Access by Department Note: Based on analysis of processes of participating institutions

Key Accomplishments to Date Completed review on “13” modules/CAMS system Developed detailed documentation related to current business rules, workflow and routing actions, permissions, and database objects Identified “gaps” between CAMS and institution requirements Ranked IU enhancements Developed “wish list” of enhancements for future consideration

Future Plans/Looking Ahead “Hands-on Training” using sample data Develop final versions of specification documents CAB (Capital Asset Builder) research and development User Testing Training and Development – remaining modules of CAMS

Capital Asset Management at Indiana University Structure for Capital Asset Management  University Capital Asset Office  Campus Capital Asset Offices  Departments Indiana University Terms  Fiscal Officers  Routing

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

Indiana University Roles and Responsibilities Compliance Services Consulting Services System Support and Training Services

CAMS System History The Capital Asset Builder was implemented in March of 1993 The Capital Asset Management system was deployed in October 1994

Major Components of CAMS Capital Asset Builder –Pre-Asset Tagging Non-Moveable Additions Documents and Maintenance Screens Inventory Process Depreciation 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

Payment Request (PREQ)

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

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:

EPIC CAMS Document

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

General Ledger Transactions

General Error Correction

Modify an Asset

Enter Pending Asset Information

Create View Asset Screen

Document Group Selection

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

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

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

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