introduction to asset accounting asset or... · what defines asset (project) accounting?...

Introduction to Asset Accounting

Alex Levy, CPA

Asset Accountant

February 20, 2013

What Defines Asset (Project) Accounting?

• Accounting is the systematic recording and classifying of an entity's financial records

• Asset accounting is the accounting of the asset accounts such as: buildings, land, equipment and intangible assets

What is the final product?

Annual Financial Reports:

• Capital Outlay

• Louisiana Transit Authority

• Crescent City Connection

Why Do We Have Asset Accounting?

Who?

• Governmental Accounting Standards Board

• State and Federal laws and regulations

Goals?

• Tracking costs for projects

• If we’re over budget, why?

• Making government look more like a business

• Better compliance with laws

• Are we getting our money’s worth?

It’s Not Just Us

What are the auditors looking for?

• A good, complete list of what we own (completeness)

• Vegas Rules – what happens this year is recorded this year (timing)

• Brooklyn Bridge - We actually own what we say we own (existence)

• Boondoggles - What we own is worth what we say it is (valuation)

• Red Tape - We follow state and federal laws (compliance)

What has changed?

• Pre Y2K – expense (convenient, but not accurate)

• 2001 – 2010 – Wooster method (just as convenient, but just as inaccurate)

• 2011 – Modified approach using technology to track individual assets and projects.

My Accounting Processes

Catalysts

Action – what gets done

StartStart Project createdInvestment profile

assigned Project collects

costs Reconciliation Process

Final Acceptance / Completed Projects

Create AssetCorrection to an

AssetDelete Asset

End

Alex’s Needs – Project Request Forms

• Make sure the capitalization questions are answered, the projects descriptions reasonably match what the scope of the work is

• Is the project with another state or agency? Let me know

Project Request Forms

Roadway

New construction, reconstruction, added capacity, or relocation OR for Agency/Business area 270 and Capital

Outlay projects in 276 – major resurfacing and restoration (FHWA definition of replacement and

rehabilitation. Preservation is considered expense)

Bridge New construction, replacement, added capacity, or

rehabilitation

Land Purchase of right of way

Building New Building or addition costing $100,000 or more

Depreciable Land Improvement

Sidewalks, bicycle paths, hiking/biking trail projects costing $100,000 or more and not part of roadway

control sections

Roads and Bridges

Road Data Table

Control Section Control section(s) that the project is located on.

Route Route that the project is located on.

Begin Log Mile

If project is located on an actual control section, provide data. If not, this field not required.

End Log Mile

If project is located on an actual control section, provide data. If not, this field not required.

Length for Mapping See SAP Help for direction on this.

Parish

If project is located on an actual control section, this is auto-populated. If not, provide information.

District If project is located on an actual control section, this is auto-populated

FMIS Rural/Urban If off-system project, provide information. Otherwise, this is auto-populated.

FMIS Functional Classification If off-system project, provide information. Otherwise, this is auto-populated.

FMIS Federal Aid System If off-system project, provide information. Otherwise, this is auto-populated.

Name

When non-state indicator is selected, provide information to help locate the project.

Alex’s Needs – Final Acceptance & Project Completion

How can we all get this done with maximum efficiency and effectiveness with least effort?

• I need Final Acceptance letters ASAP

• Accurate data regarding:

– Right of way purchased

– Control sections added or taken out

– Recall numbers from STRM added or taken out

Negative Consequences of Poor Communication

• We are not adding the infrastructure as built

• We are not removing the infrastructure when retired, sold or swapped

• We don’t know what we have

• Audit Findings!

Alex’s Needs – Data Synchronization and Reconciliations

Periodic checks – we call reconciliations – ensure what’s on your information systems are in mine. There should be no differences.

More on Data…

Problems:

• I don’t know if I am receiving everything

• Need to confirm what is in the engineers’ information systems are really getting into LaGov.

Alex’s Needs - Disaster Situations

• Hurricane Season coming soon

• What information we need?

• Can we piggyback?

• How can we get all our needs with the least intrusion?

Closing Thoughts. Questions?

Alex Levy

379-1678

alex.levy@la.gov