1. Fixed Assets Policies and Procedures
How they affect you
2/17/2019
Fixed Assets Section of Accounting Services

2. Fixed Assets Policies and Procedures
DIRECTLY AFFECT:
your work
your budget
your responsibilities pertaining to UNCG assets
University’s financial reporting
2/17/2019
Fixed Assets Section of Accounting Services

3. Fixed Assets Section of Accounting Services
Areas of Importance
Purchases
Determine new assets & their costs
Selecting the correct Fixed Asset Account
Apply bar-code tags for identification
Perform annual inventory audits
Process Transfer Forms & Off Campus Agreements
Submit eDisposal forms
Maintain the University Fixed Assets accounting records
Basically, our responsibility is to maintain records that reflects the actual physical equipment on campus as accurately as possible at the current time. This requires the cooperation of the custodian departments to provide this information.
We are part of Accounting Services under the Financial Services Dept.
2/17/2019
Fixed Assets Section of Accounting Services

4. Fixed Assets Section of Accounting Services
3 Types of Fixed Assets
Property and Plant – land, improvements to land, easements, buildings, building improvements, infrastructure, and structures
Moveable Equipment –
Used in the course of business operations,
Expected normal life of two or more years,
Acquisition costs of $5,000+
(Barcodes applied & inventoried annually)
Examples: Office equipment/furniture, Data processing equipment, Educational equipment, Motor vehicles- licensed or unlicensed
Other Tangible or Intangible assets
(In-house designed) Software
Purchased software is not a Fixed Asset
Copyrights
2/17/2019
Fixed Assets Section of Accounting Services

5. Fixed Assets Fabrication
Fabricated Equipment
Defined as scientific or other complex equipment comprised of two or more individual components that are fabricated/built into a single functional unit.  However, fabrication does not apply to components that are simply wired together and can be dismantled to operate separately (for example, IT components such as computers and network equipment).
All components in the fabrication must function as a singular unit and be collectively disposed of at the end of the fabricated asset’s useful life.  Individual components of a fabrication cannot (1) be used independently of the other components or (2) function separately apart from the fabricated unit to which it is attached. Fabricated equipment is capitalized as a single asset when its combined total cost equals or exceeds $5,000 and has a useful life of two or more years.
2/17/2019
Fixed Assets Section of Accounting Services

6. Fixed Assets Section of Accounting Services
Cost Threshold
COSTS INCLUDE
Shipping & Handling
Delivery Fees
Installation Fees
Asset Cost + + +
$3,995.00
$300.00
$500.00
$1,300.00
WE are Tax exempt but Highway use tax on vehicles, foreign tax are added.
$6,095.00
IF the Total Cost ≥ $5,000 – It is a Fixed Asset Capital expenditure account codes required for Fixed Assets
2/17/2019
Fixed Assets Section of Accounting Services

7. Fixed Assets Section of Accounting Services
2/17/2019
Fixed Assets Section of Accounting Services

8. Fixed Asset Account Codes
All Fixed Asset Accounts Begin with 203xxx
Be Careful!! Some non-capital equipment account codes and account titles are similar
LOOK FOR COLUMN HEADINGS:
Fixed Asset Heading: Capital Fixed Assets Equipment $5,000+
Non-Fixed Asset Heading: Non-Capital Equipment Up to $4,999.99
Account Codes for requisitions entered in eMarketplace are checked
2/17/2019
Fixed Assets Section of Accounting Services

9. An Item Becomes a Fixed Asset
WHERE?
A cost summary of asset values are recorded in the General Ledger (capitalized) while supporting detail is maintained within Fixed Assets.
WHEN?
CAPITALIZED asset records are created automatically in the GL when:
A capital expenditure account code is used
AND the $ threshold IS MET
Triggered by A/P INVOICE and DEPT. receiving the item
2/17/2019
Fixed Assets Section of Accounting Services

10. Fixed Assets Section of Accounting Services
Results?
Capitalized Otag number(s) are created or
Non-capitalized Otag number(s) are created and costs combined by Fixed Assets staff for the total asset over $5,000
If errors these can only be removed by Fixed Assets entering a Journal Voucher
They are permanently added to the Fixed Assets Module of the Finance database. .
2/17/2019
Fixed Assets Section of Accounting Services

11. Fixed Assets Section of Accounting Services
Remember
Use EA for ‘Each’ as the Unit of Measure when purchasing assets with Quantity Unit Price.
Incorrect
Correct
@ $22, ea
@ $18, ea
@ $41,549.95
2/17/2019
Fixed Assets Section of Accounting Services

12. Fixed Assets Section of Accounting Services
If the combined costs total $5,000+
Including shipping, handling, installation
and tax
How: Use same expenditure account code in accounting block.
Combined Costs
2/17/2019
Fixed Assets Section of Accounting Services

13. Things to remember when purchasing Fixed Assets:
Extended Warranties
Maintenance Agreements
Service Contracts
Do not include in the asset cost: Maintenance Agreements Service Contracts Extended Warranties Do not use asset capital expenditure account code
Search by %Main% on FTVACCT: Use accounts for Maintenance Contracts
Search by %Support% on FTVACCT: Use accounts for Support Services.
2/17/2019
Fixed Assets Section of Accounting Services

14. Fixed Assets Section of Accounting Services
Fixed Asset Example
Microscope with Laser
Requisition Line Items Cost Quantity Account
Frame $8, EA
Eyepiece EA
Stage , EA
Observation Tube , EA
SIM Laser Scanner 4, EA
Transmitted Light Detector , EA
Spectral Detection , EA
Fiber Port EA
Optional Software 4, EA
Shipping/Handling EA
Installation EA
Extended Warranty EA
TOTAL ASSET COST $34,194.22
REQUISITION TOTAL $40,693.22
2/17/2019
Fixed Assets Section of Accounting Services

15. Fixed Assets Section of Accounting Services
Policy for Pcards
PCard purchases of capital assets are excluded by threshold of $4, and expenditure account
PCard purchase thresholds prevent purchasing fixed assets
Capital expenditure account codes are not allowed
If combined items equal $5,000 or more should not purchase with Pcard
Journal entries required for correction
2/17/2019
Fixed Assets Section of Accounting Services

16. Fixed Assets Section of Accounting Services
Barcode Tags
Barcode tags are required for new assets with a total cost of $5,000+
Office Furniture & Equipment
Electronic Data Processing Equipment
Educational, Scientific and Research Equipment
Motor Vehicles (Licensed)
Other Equipment (Non-licensed vehicles, grounds & athletic equipment, etc.)
There are new object codes for many items. New object codes ---available on the Financial Planning and Budgets website.
Additional object codes were in effect starting in January 2003.
Please note that PC computers, scanners or printers over $ (after adding tax, shipping and handling) must be purchased with If they are under this amount after tax, they may be purchased with If they are over $ , they must be purchased with a 5206 object code.
A Fixed Assets specific object code list is available as a hand-out today.
These trigger a Fixed Assets feed to create an asset record.
2/17/2019
Fixed Assets Section of Accounting Services

17. Policy for Tagging New Assets
New Assets should NOT leave campus BEFORE being tagged!
If the asset is leaving campus immediately upon receipt, call Fixed Assets for immediate tagging!!
Receiving Document must be entered on Banner or eMarketplace.
FA-16 Off-Campus Agreement must be completed.
Only Fixed Assets staff are authorized to apply or remove barcode tags on equipment.
Please call us if an asset is leaving campus! We will come immediately and put a tag on it! Also, an FA-16 Agreement for Equipment Located Off-Campus form should be done for any asset taken off-campus.
Please assist the Fixed Assets staff in locating the new equipment. Proper tagging initially can save many inventory problems in the future. Since you may have ordered it for your department, you will be more familiar with what has been received.
2/17/2019
Fixed Assets Section of Accounting Services

18. Fixed Assets Section of Accounting Services
Grant Purchases
Most Grant purchases meeting the cost threshold criteria are required to be barcode tagged as UNCG equipment and added to the Fixed Assets System.
"Assets purchased with Contract and Grant funds become the property of the University and must be bar code tagged and recorded on the Fixed Assets System accordingly” --Policies and Procedures - Accounting & Budgets, Policy Fixed Assets
"Much of the property acquired on research or training awards becomes University (State) property upon acquisition or by subsequent vesting of title.”--- Policies and Procedures - Contracts and Grants Policy 11 - Equipment Management
There is misconception that assets purchased with grant monies are the property of the grant holder.
2/17/2019
Fixed Assets Section of Accounting Services

19. Fixed Assets Section of Accounting Services
Annual Inventory
State Auditors annually audit: asset costs, depreciation, disposals, and physical items
Assets Over $5,000
All moveable capitalized assets are physically inventoried by barcode scanning each fiscal year
Audits performed (July-June) by Fixed Assets staff
Pre-inventory should be completed by the department designee
Equipment Under $5,000
Equipment Under the Capital Threshold of $5,000 that can be easily stolen should be kept on a spreadsheet by the department, including serial numbers, for an annual departmental inventory.
Form located on Fixed Assets webpage
2/17/2019
Fixed Assets Section of Accounting Services

20. Fixed Assets Section of Accounting Services
Annual Inventory
DEPARTMENT HEAD RESPONSIBILITIES 1. Safeguard Assets-“Each department head is responsible for safeguarding all assets purchased for his or her department and assisting with the physical inventory process (see Annual Inventories)..” -Policy Fixed Assets 2. Appoint Designee-“… designate an individual in a permanent position on your staff (a student is not an acceptable designee) to physically locate each fixed asset on the attached printouts, which were prepared by our Fixed Assets staff. “- University Controller 3. Sign or Approve Asset Forms- All Fixed Assets Forms must be signed by the department head.
Departments may maintain their own database or spreadsheet of assets to track their locations.
These database can be used by your department to do your updates at the annual inventory.
2/17/2019
Fixed Assets Section of Accounting Services

21. Fixed Assets Section of Accounting Services
Annual Inventory
DESIGNEE RESPONSIBILITIES
Immediately:
Call or to confirm receipt of inventory packet.
During Next Two Weeks:
Physically locate each asset and update list, including additions, documentation for assets not located, and new locations of assets.
Request FA-16 forms from employees.
Send updates and all forms to Fixed Assets.
Call for an appointment.
Request all employees or students with assets Off-Campus bring them in on the day of the appointment for scanning if possible.
Arrange for access to ALL labs, lockers, keys, or access to rooms, etc.
A new checklist has been added to the inventory packet of information that is sent out to the departments 2 weeks prior to the inventory in preparation for it.
It basically tells you this:
You should locate each asset physically so that you will be familiar with all assets located on the inventory listing and be able to take the Inventory Auditor to it on the day of the inventory quickly. If you don’t learn what and where the items are, you cannot complete your updates of the inventory properly or take us to the asset.
2/17/2019
Fixed Assets Section of Accounting Services

22. Fixed Assets Section of Accounting Services
Day of the Inventory
All assets on the current department inventory list must be scanned or forms submitted.
Designee’s responsibilities:
any relocated (transferred) assets still on the inventory list must be scanned
Complete and a properly completed FA-14 Transfer to move to a new location or to a another department
Accompany the inventory auditor to all assets on the list to be scanned
2/17/2019
Fixed Assets Section of Accounting Services

23. After Initial Inventory
MISSING ITEMS – over the next 10 days
An will be sent the next day with report of missing items….
Locate each item or document the status upon receipt of the Missing Assets Report.
Call your Inventory Auditor for an appointment to verify any located missing items at the close of the inventory in 10 days or after.
Escort the Inventory Auditor to each located missing asset.
On the day of the inventory, you should take the Inventory Auditor to each asset for scanning. You should be familiar with each piece of equipment from the physical location of it for the updates to the inventory listing.
At the end:
Any assets not scanned are listed as missing until scanned or documentation is provided in the form of a disposal, transfer, or Off-Campus Agreement form.
2/17/2019
Fixed Assets Section of Accounting Services

24. Fixed Assets Section of Accounting Services
Missing Equipment
Missing equipment is defined as “any asset which is not found during the physical inventory process and for which documents have not been forwarded to the Fixed Asset Section for transfer or disposal.”
All assets not scanned at the close of your inventory must be reported to the appropriate Vice-Chancellor or Provost on a monthly basis.
If a missing item is located, please call us to schedule an appointment for your Inventory Auditor to scan it!
Fixed Assets staff cannot take missing items off of your inventory when you verbally report them as missing to us or explain to us why they are missing.
We are not authorized to remove Missing Equipment until we have the approval of the Vice-Chancellor of Business Affair. These items are written-off as a loss.
The Fixed Assets Department is audited annually by the State Auditor and are required to have documentation for all transactions.
Large amounts or frequently missing university assets shown as losses can cause an audit finding with the State Auditors. Audit findings can create future budget decreases for the University and the custodian departments. Each department is also susceptible to internal and external audit verifications on a sample of fixed assets.
2/17/2019
Fixed Assets Section of Accounting Services

25. Fixed Assets Section of Accounting Services
Completing Forms
Regardless of cost or condition, all University property must be disposed through University Warehouse personnel. Under no circumstances should anyone remove University property tags and/or dispose of any fixed assets belonging to the University. Under no circumstances should anyone allow vendors to remove and/or dispose of any fixed assets belonging to the University. Forms should always be submitted to Fixed Assets as soon as changes in the asset’s inventory status occur!
2/17/2019
Fixed Assets Section of Accounting Services

26. Fixed Assets Section of Accounting Services
Completing Forms
No items may be donated to outside agencies per General Statute (GS Title 3A) and North Carolina Administrative Code (01 NCAC 43A). 
State Property cannot be donated by anyone other than the Governor, and only in the event of a declared disaster. UNCG, State Surplus and the Department of Administration does not have the authority to donate property.
The disposition of property by any other method is done only with the authority of State Surplus.
2/17/2019
Fixed Assets Section of Accounting Services

27. Fixed Assets Section of Accounting Services
Completing Forms
New eDisposal form - completed and submitted electronically online for all assets being removed from service, with approval from Dean or highest ranking department head of the custodian assigned Organization Code.
All other Fixed Asset forms - signed by the same dean or highest ranking department head of the custodian assigned Organization Code.
Data Enterable PDF versions containing new policy format should be printed from our website. These should be used in place of older ones.
Copies of all FA forms should be kept by the custodian department.
Equipment checkout list is available.
For all changes in asset status, authorization by signature is required on all forms, just as it is for a travel reimbursement or other financial forms. Forms will be returned to you for signatures if they are received by us without the properly authorized signature. These forms provide the documentation necessary for the State Audits.
Please discard old versions and use our new forms. These have been updated on the website since last year. The web address is on your Fixed Assets Fact Sheet.
Copies of submitted forms should be kept on file in your department inventory file. This may be your only documentation during inventory later. Forms do get lost in the mail and never reach our office. So that, without your copy, an item could be considered missing.
The new Equipment checkout list can help you document the change in location of assets that are taken from the department on a temporary basis, like computers removed by Client Services repair or other repairs, projectors loaned to another department, etc.
Show Equipment Checkout List on Overhead!
2/17/2019
Fixed Assets Section of Accounting Services

28. Completing Forms Surplus Assets
When a capital asset is considered to have no useful value to any department at the University
Surplus assets may or may not seem to have value to anyone, but is State property, even as salvage value.
Submit an eDisposal Equipment Disposal Form
Mark the form for asset pick up if needed
Mark the form to deliver assets to the Warehouse – contact Warehouse manager for appointment
Attach documentation if required
If item is not a Fixed Asset (check your inventory list)
Complete Surplus Request Form
2/17/2019
Fixed Assets Section of Accounting Services

29. Fixed Assets Section of Accounting Services
Completing Forms
2/17/2019
Fixed Assets Section of Accounting Services

30. Completing Proper Forms
eDisposal Forms must also be submitted to Fixed Assets for assets that are:
Traded-In with authorization from Purchasing for monetary credit toward purchase
Stolen with a required police report filed
Lost unknown location and asset unaccounted for.
Junked ( i.e. Used for parts on other assets)
Destroyed by fire, water damage or accident.
Transfer Out Transferring to another State university or agency.
**Multiple Asset Disposal Form – when disposing more than 5 assets:
Submit generic eDisposal form.
When you receive the system automated confirmation, forward your confirmation to and your department head for approval, with the attached Multiple Asset Disposal Form and any other required documentation.
2/17/2019
Fixed Assets Section of Accounting Services

31. Completing Proper Forms
eDisposal Form Required Documentation: The required documentation for each disposal type is:
Traded-In- copy of Purchasing’s Trade-In Request letter to State Surplus and approval.
Stolen-copy of the UNCG or municipal police report
Lost- Memo from department head stating details of asset disappearance.
Junked- Memo from department head stating details of how it was used for parts, including asset and serial numbers of new host assets.
Destroyed- Memo from department head stating details of destruction by fire, water damage or accident, and a copy of any insurance claim. Claim payment must be submitted to the UNCG Cashier’s Office.
Transfer Out – Memo to University Controller requesting transfer, list of equipment and signature of accepting agency or university agent.
2/17/2019
Fixed Assets Section of Accounting Services

32. Completing Proper Forms
Stolen assets
According to General Statute , if any state property has been stolen:
The employee discovering the suspected theft must report the theft to his/her supervisor within 24 hours.
The supervisor must notify the head of the department within the next 24 hours.
The department head should notify the University Police at the UNCG or municipal police department if off campus, within the following 24 hours. The University Police should be notified as soon as possible, but no later than three days from the day of discovery.
The University Police or municipal report pertaining to a theft should contain the asset description, serial number, and/or barcode number.
UNCG policy states that:
Stolen assets must be reported
to supervisor within 24 hours,
to the department head within 48 hours.
to the Police as soon as possible but no later than 72 hours by the Department Head.
2/17/2019
Fixed Assets Section of Accounting Services

33. Completing Proper Forms
FA-14 Transfer Forms (For Change in Location or Department)
Must be signed by both department heads
Should be the responsibility of current department.
Transfer forms should be done immediately when a piece of equipment leaves your department.
Be sure the department taking the equipment finishes the transfer process by signing, copying and returning the FA-14 Transfer form to Fixed Assets.
If it were me, I would not let the equipment leave my possession until that form was completed. That ensures that the equipment will be removed from your inventory and your responsibility.
All FA-16 forms are required to be newly filled out at inventory each year. Be sure and follow the new instructions for equipment returned to campus also.
2/17/2019
Fixed Assets Section of Accounting Services

34. Completing Proper Forms
FA-16 Agreement for Equipment Located Off-Campus
Requires removal and expected return dates
Department head and user signatures required
2/17/2019
Fixed Assets Section of Accounting Services

35. Completing Proper Forms
Optional Equipment Checkout List – Short Term Only!
Records removal and expected return dates of equipment loaned to UNCG department or out for repair to vendor
User or vendor signatures required for loan or removal
Form is Maintained and kept by the department
2/17/2019
Fixed Assets Section of Accounting Services

36. Fixed Assets Section of Accounting Services
Our Location
Fixed Assets Staff
Heather Snelling
Financial Accountant/Fixed Assets Supervisor
(336)
Barbara Lathrop
Fixed Assets Technician/Inventory Auditor
(336)
Vera Ledbetter
Fixed Assets Clerk/Inventory Auditor
(336)
Fixed Assets Office Location
Rooms
UNCG Surplus Warehouse
2900 Oakland Avenue
Greensboro, NC
FAX Number: (336)
2/17/2019
Fixed Assets Section of Accounting Services