Personal Property Training Webinar Capitalized Assets and Supporting Documentation Missing Documents and Incorrect Notification Joint Inventory Procedures 4/29/20151

Financial Assets Objective 4/29/20152 To ensure that Financial Assets are capitalized, adjusted, and retired in a timely and accurate manner in Sunflower with the appropriate support documentation. NOAA Personal Property Financial Assets make up over 85% of the Department of Commerce Personal Property Financial Assets that are reported on the Annual Financial Statements.

Financial Assets 4/29/20153 Financial Assets:  Assets that meet the capitalization threshold and are purchased “off the shelf” will be capitalized upon delivery  Assets that require time to deliver/complete or include costs associated with design, site preparation, planning, installation, etc. will be capitalized after it has been constructed/developed (CWIP)  Applications and operating system programs purchased from commercial vendors “off-the-shelf”, internally developed, or contractor-developed solely to meet the entity's internal or operational needs (Internal use software) will be capitalized upon delivery or after it has been developed  Assets purchased in bulk that individually cost $25,000 or more and less than $200,000 and the total one-time acquisition cost is $1 million or more

Financial Assets Timeline 4/29/20154 Capitalized Assets (non-CWIP) – 30 business days of receipt, inspection, and acceptance Title passes to the acquiring entity or when the asset is delivered to the entity or an agent of the entity Capitalized Assets (CWIP) – Completing the NF 37-6 form BOD/Acceptance Date between October 1 through July 12: 40 calendar days for LO to forward completed NF 37-6 to Finance. 10 calendar days for Finance to review and approve NF calendar days for Property Office to review and approve NF calendar days for Finance to process upon receipt of final NF Entire process should not exceed 90 calendar days after BOD/acceptance date. BOD/Acceptance Date between July 13 through August 31: LO forward completed NF 37-6 to Finance by September 10. Submission after September 10 will require review by Finance and Property Office, accordingly. BOD/Acceptance Date between September 1 through September 30: Estimated NF 37-6 is required

Documentation Required 4/29/20155 Capitalizing a Financial Asset requires the same support as an accountable asset as shown in the Acquiring Personal Property policy on the PPMB websiteAcquiring Personal Property In addition to the above support, a NF form is also required for all activity pertaining to a Financial AssetNF form If the asset is CWIP, then a CWIP Determination LetterCWIP Determination Letter and a NF 37-6 form is requiredNF 37-6 form

Capitalizing an Asset 4/29/20156

Capitalizing an Asset 4/29/20157

Capitalizing an Asset 4/29/20158

Capitalizing an Asset 4/29/20159

Depreciation Accounting 4/29/201510

Retiring a Financial Asset 4/29/ The following is necessary to process a retirement for a Financial Asset: All Financial Assets require a signed Congressional notification memo and a NF form with Section 4 of the NF containing the “Asset barcode” and the “Type” of the deletion including parent/child assets as applicable. ** Note: The submission of NF should occur before the property custodian initiates the disposal request. The following appropriate supporting documentation is required depending on the type of disposal method utilized for the Financial Asset retirement. Final NF 37-6 for CWIP Assets NF for required electronic devices CD-52 form “Report of Review of Property” with PAO and PC signature and Board of Review approval for Lost, Stolen, or Damaged Assets A memorandum signed by PAO and PC, CD-50 form, and witness’ documentation for Abandoned or Destroyed Assets

Retiring a Financial Asset 4/29/ Documentation/Confirmation from the seller if the Asset has been returned to the Seller Memorandum or documentation from the receiving entity of the Donated Asset Signed Purchase Receipt showing evidence that buyer has taken custody of purchased asset if the Asset was sold by GSA, GSA Bill of Sale that identifies the sold asset and the NF form “NOAA Excess and Disposal” Signed Purchase Receipt showing evidence that buyer has taken custody of purchased asset for an exchange, sold, or traded-in Asset, CD-52 form “Report of Review of Property”, and the Bill of Sale SF-122 form “Transfer Order Excess Personal Property” if the Asset is transferred to another Government Agency NF form “NOAA Excess and Disposal” with appropriate approval signatures from the line office and the receiving official PMO approval and CD-52 form “Report of Review of Property” with PAO and PC signature for assets to be cannibalized

Questions & Answers 4/29/201513

Questions & Answers Q. What if the object code, etc. was wrong on the UPR? A. UPR represents payments that were made in the finance system. In most cases, a DLA or SLT will be required to correct the financial record. Q. On fund code is it 4 digest or 5. Like is on the UPR and on other docs it is 1019? A. Fund codes normally will be four digits. However the Fund code does not impact the UPR. Q. Why don't you use dashes for all entries or no dashes for all entries? Why complicate things? A. The format of the document is based on the acquisition source document which does not fall under the control of Personal Property.

Questions & Answers Q. What happens if you ordered several items and you copy the entry but the received dates are different? Can you change dates when you copy an entry? A. Yes, the receipt is the date the asset is received, inspected and accepted by a NOAA representative. The date can be corrected in Sunflower if it is entered wrong or after you receive the QC notification. Q. What document number do we use for a cell phone, especially an upgrade, paid for on the normal AT&T monthly utility bill? A. PC will use the document number on the contract, purchase order, BPA assigned to purchase the cell phone. Q. What about "Found property" that is so old that it can no longer be found using a web search, yet the "model" is not in Sunflower and you need to request to have it entered into Sunflower - what do you do? A. Take a picture of the asset and asset id plate and fine an asset similar to the item.

Missing Document and Incorrect Notifications 1. Document Number

Objective 4/29/ To provide knowledge of processes and tools to use in making corrections to the following commonly found errors in Sunflower catalog entries: Document Number Missing Signature/Receive Date Activity Type

Document Number 4/29/ Importance: Sunflower utilizes this field to match personal property records against CBS payment records Entering the correct document number into Sunflower ensures that the payment affiliated will reconcile on the Un- reconciled Payments Report(UPR)

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Document Number Correction When the document number is entered incorrectly in Sunflower during the initial entry this information will display in the initial event field. The document number field is where the correction should be made on the “Maintain an Asset” screen In this instance, the document number will remain on the UPR and can only be removed by manual suppression. Manual suppressions can only be completed by a Line Office Representative (LOR) 4/29/201522

Document Number 4/29/ Important Reminders 1)Do not include dashes when entering an asset record containing a Purchase Order/Contract 2)The proper format to use for Purchase Card transactions is:

Missing Signature/Receive Date Objective is to provide information on the importance of having all supporting documentation Signed and Dated before the property is entered into Sunflower. For all accountable assets, one of the following documents must be used to support the acquisition date: A clearly identified receipt date contains a stamped or handwritten date and signature/initials of the receiving party. Invoice or packing slip – date written or stamped on the invoice or packing slip with the signature or initials of the receiving employee upon receipt of the property In-store purchase – date of receipt of purchase from the retail store with signature or initials 4/29/201524

Example of Correct Signature and Receive Date 4/29/201510

Example of Correct Signature and Receive Date 4/29/201526

Example of Incorrect Signature and Receive Date 4/29/201527

Example of Incorrect Signature and Receive Date 4/29/201528

Example of Acceptable Copy of In-Store Receipt 4/29/201529

Example of Unacceptable Copy of In-Store Receipt 4/29/201530

Signature/Receive Date 4/29/ Things to remember : We require Both the signature and the receive date on documentation used to support the acquisition date.

Activity Type 4/29/ Is the field that describes the status or ownership for the property

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Activity Type 4/29/ Agency Leased – Capital: A capital lease is any lease other than a lease-purchase that does not meet the criteria of an operating lease. Agency Leased – Operating: Meets all below criteria: Ownership of the asset remains with the lessor during the term of the lease and is not transferred to the Government at or shortly after the end of the lease term. The lease does not contain a bargain-price purchase option. The lease term does not exceed 75 percent of the estimated economic life of the asset. The present value of the minimum lease payments over the life of the lease does not exceed 90 percent of the fair market value of the asset at the beginning of the lease term. The asset is a general purpose asset rather than being for a special purpose of the Government and is not built to the unique specification of the Government as lessee. There is a private market for the lease. Contractor Owned: Property that does not belong to NOAA, but is owned by Contractor. Other- Depreciation Stopped: Used by Financial team for Capitalized assets.

Accounting Information 4/29/ To provide knowledge of processes and tools to use in making corrections to the following commonly found errors in Sunflower Initial Entries: Fund Code Organization Code Program Code Project Code Task Code Object Class Code

Accounting Information 4/29/ Importance: Sunflower utilizes the accounting information to reconcile the asset record against CBS payment records Entering the correct accounting information ensures that the payment will reconcile with the Un-reconciled Payments Report

CBS Web Portal Bureau Project Task Program Organization Object Class Code Fund 4/29/201537

Contract 4/29/201538

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Accounting Correction 4/29/2015 Accounting information is created during the initial entry by the PC, it will display in the Asset Value field. All accounting corrections must be made in the Asset Value field. Once all corrections are complete the entry on the UPR will automatically reconcile. Manual suppression, by Line Office Representative, is not needed. 40

Document Number 4/29/ Important Reminders 1)Dashes are required when entering Organization, Object Class Code, and Program. 2)The proper formats: (Organization) (Object Class Code) (Program)

References 4/29/ Document Number: ht p://w.p s.noaa.gov/forms_guides/guides_aids_tools/ Signatures and Receive Dates: NOAA Acquiring Personal Property policyNOAA Acquiring Personal Property policy

Personal Property Training Webinar Manufacturer Information Model Number Serial Number 4/29/201543

Manufacturer Information 4/29/ The manufacturer name can be found on the asset or on vendor’s supporting documentation. If you do not see the manufacturer name in Sunflower catalog contact Sunflower helpdesk / to have the manufacturer added to the SF catalog. PC will need to complete a SF Catalog Mgmt Form and forward it to SF Helpdesk. Found : Update%20Asset%20User%20Guide.pdfCD 50 User Guide page 9. ht p:// s.noaa.gov/CD%2050%20Create- Update%20Asset%20User%20Guide.pdf

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Manufactures Name

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Model Number 4/29/ The model number can sometimes be found on the asset or on the supporting documentation provided from the vendor, PC should attach supporting documents in Sunflower.If the model number is not in Sunflower catalog Property Custodian should stop entering the asset in SF and submit the SF Catalog Mgmt Form to the Sunflower (Help desk) or contact them by . Information Found : pps.noaa.gov/CD%2050_Create- Update_Asset_User_Guide.pdf CD 50 User Guide

Model Number 4/29/201550

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Questions & Answers 4/29/201554

Serial Number 4/29/ Serial number create in Sunflower should match the asset and your supporting documentation. If the asset does not have a serial number use the below format to identify the asset with SN_ followed by the barcode. example: SN_CD ht p:// s.noaa.gov/personal_property_policies_pro cedures/120910_property_serial_number_requirement_fo r_ac ountable_as ets_in_sunflower.pdfhttp:// cedures/120910_property_serial_number_requirement_fo r_accountable_assets_in_sunflower.pdf Property Bulletin #004, FY 2011

Serial/Service Tag Number

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Personal Property Training Webinar Acquisition Cost and Date 4/29/201558

Acquisition Cost 4/29/ Common error created in Sunflower by Property Officials. What is the Acquisition Cost and where can I find the information ?

Acquisition Cost 4/29/ Acquisition cost is a required field when entering accountable and capitalized assets in Sunflower.Property Officials should record the acquisition cost in Sunflower. The accuracy of the acquisition cost is critical to financial reporting of capitalized assets and essential in evaluating the timely processing of accountable and capitalized assets. Information found: Personal Property Policies Procedures for Acquiring Personal Property, CD50 User Guide Page 10www.pps.noaa.gov

Acquisition Cost 4/29/ The purpose of this training is to provide guidance to the Line, Staff and Corporate Offices for identifying and recording the correct acquisition cost when entering accountable and capitalized (including CWIP assets) in Sunflower. All accountable property, plant and equipment should be recorded at-cost to the acquiring organization (i.e. acquisition cost). The acquisition cost should include all costs incurred to bring the accountable or capitalized asset to a form and location suitable for its intended use. In determining the acquisition cost, the Line/Staff Office (L/SO) should identify how the accountable or capitalized asset was acquired.

Acquisition Cost 4/29/ Acquisition cost may include: Amounts paid to vendors for accountable property (i.e. purchase price). Transportation charges to the point of initial use (e.g. shipping and handling costs). Installation costs Storage costs Engineering, architectural and other outside services for designs, plans, specifications, and surveys Legal and recording fees and damage claims Fair value of equipment donated to the government or material amounts of interest costs paid

Acquisition Cost 4/29/ Acquisition cost should not include: Sales tax Pass Through Fees (e.g. credit card surcharges and transaction fees, NOAA Link surcharge fees) Maintenance costs Warranty costs Service contract costs Training costs Administration supplies

Acquisition Cost 4/29/ For accountable assets some of the documents that must be attached to the asset record to support the acquisition cost are: Contract/Purchase Order Purchase Card Statement report Other accountable documents Vendor itemized priced Invoice In-store purchase receipt

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Acquisition Cost 4/29/201570

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Acquisition Date 4/29/201572

Audit Issue 4/29/ “Use of incorrect Acquisition Date results in improper recording of obligations”

Acquisition Dates 4/29/ The acquisition date is a Sunflower field where common errors are made by Property Officials. Often the acquisition date is incorrect because it does not match the support documentation.

Things to Remember 4/29/ Acquisition Date is a required field when entering accountable and capitalized assets in Sunflower. The accuracy of the acquisition date is critical to financial reporting of capitalized assets and essential in evaluating the timely processing of accountable and capitalized assets. Information found: Personal Property Policies Procedures for Acquiring Personal Property, CD50 User Guide Page 10www.pps.noaa.gov

Acquisition Date 4/29/ The acquisition date is the date when the asset is received, inspected and accepted by a NOAA representative, unless the contract specifically states otherwise (i.e. title will pass to NOAA upon acceptance, regardless of when or where the Government takes physical ownership) in which the delivery and not based on physical possession.

Things to Remember 4/29/ Receiving Report - record the date asset was accepted next to the Signature of Authorized U.S. Government Representative. Invoice Receipt Certification - record the “Date Goods Accepted” with the receiving government employee signature.

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Acquisition Date 4/29/ For accountable assets, the following documentation may be used to support the acquisition date: Receiving Report date the asset was received or the date and signature on packing slip or invoice attach if the receiving report is incomplete. Found Assets acquisition date is the date the Found Certification Memorandum is signed and dated. Invoice or packing slip date written or stamped on the invoice or packing slip with the signature or initials of the receiving employee after receipt of the property In store receipt the acquisition date will be the purchase date of the receipt from the retail store

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Joint Inventories 4/29/ Joint Inventories are conducted to transfer responsibilities from the outgoing PC to the incoming PC. The PAO or Supervisor will conduct the joint inventory with the outgoing PC if the new PC have not been assigned. Once the oncoming PC is assigned another Joint Inventory will be conducted. The outgoing PC will need to sumbit a Board of Review within 10 days for all lost, missing or stolen assets discovered during the Joint Inventory. The PAO must sign the total asset page of the inventory to certify the Joint Inventory was completed.Once the inventory is certified the transfer of responsibility is complete. Joint Inventories must be complete within 30 days prior to the outgoing PC departure.

Joint Inventories Cont’d LO/SO PM will retain a copy of the new PC appointment package for future audits. PM will need to submit all BOR and SBOR package to PPMB. PMs will need to send updated information for new PCs to PPMB include full name and the assigned custodial area. The new PC will be responsible for issuing new hand receipts to the current users. The outgoing PC can use the signed joint inventory as proof of relief during the checkout process. Joint Inventories can be held in conjunction with the Annual Inventory but can not replace the Annual Inventory.

The purpose of this document is to outline the steps for creating a Joint Inventory Base report 1. In the Sunflower Property Reports Menu, select “Management Reports”.

2. Select the “Inventory Assets (Global Information)” Screen.

3. Navigate to the “Responsibility and Accountability” Screen

4. Enter “Cust Area” 5. Select “Display Options”

Select “Active” (default) Select “Asset Details (Unique Name, Cust. Area, Property Accountability Office, Bureau or Region, Property Contact, Current User, Location, Expected Return Date, Stock Number, Utilization Code, Acquisition Date, Responsibility Date, Fed. Supply Group, Model Name and Asset Condition)” 6. Click “Submit”

7. Select Report Method PDF or Text File Submit

8. Click Execute

9. The outgoing PC (old) and Incoming PC (new) initials each sighted asset and sign and date the Report Total Page.

The Final Step for Join Inventory 10. The outgoing Property Custodian will need to submit a Board of Review or Special Board of Review package to the PAO within 10 calendar days of the sign date for all unsighted assets. Personal Property Website Inventory: _Procedures. pdf

Questions & Answers 4/29/201593

Property Management Officer - Joy Taylor Branch Chief – Kenneth Morrow Finance Team – Katina Felts Line Office Representative (LOR) Lead – Larry Oates NESDIS – Chance Greene OAR – Melissa Nelson NWS East – Nicole Proctor NWS West – Michelle Ross NMFS East – Edwin Lewis NMFS West – Marvel Kenneybrew NOS – Barbara Carson OMAO – Lorenzo Brown OCAO – Sheila Hensley OCIO/USEC/WFM/PPI – Derrick Battle