capital asset management training
DESCRIPTION
TRANSCRIPT
Office of the Associate Vice President for Finance
The Office of the Comptroller
Capital Asset Management
November, 2008
Updated July 2009
Office of the Associate Vice President for Finance
Capital Asset Management
Agenda Policies – 9 slides, wordy Phases and Players 12 slide
Circular A110 Who to call – 1 slide
Office of the Associate Vice President for Finance
Capital Asset ManagementGWU Policies
Where can they be found?http://my.gwu.edu/mod/upolicy/index.cfm
Under the Policies tab, Finance, Accounting and Budgeting, Fixed Assets Management
What are the policies Fixed Asset Management
Capital Asset Management Policy Furniture and Equipment Capitalization Threshold Surplus University Property Electronic Equipment Recycling Policy (Public Safety
and Risk Management)
Office of the Associate Vice President for Finance
Capital Asset ManagementGWU Policies
The Capital Asset Management Policy Consistent with the University’s
Procurement Card (P-Card) Policy Purchase of any item with a unit cost of $2,500 or greater
must be ordered through the Procurement Department on a Purchase Order and recorded through the Enterprise Accounting System (EAS).
Since Capital Assets are defined as items having a value of $2,500 or greater, all Capital Assets must be purchased through the Procurement Department.
Office of the Associate Vice President for Finance
Capital Asset ManagementGWU Policies
FURNITURE AND EQUIPMENT CAPITALIZATION THRESHOLD
A capital asset is defined as an article or a system of
Non-expendable, tangible property Having a useful life of more than one year A per-unit value of $2,500 Is used in the operations of the University (i.e.,
the item is not purchased as an investment or held for resale).
Office of the Associate Vice President for Finance
Capital Asset ManagementGWU Policies
FURNITURE AND EQUIPMENT CAPITALIZATION THRESHOLD (Continued)
The cost of an asset includes:
the cost of the item and all costs necessary to make the asset
available for use.
The subsequent purchase of additional components that provide new functionality to a capital asset should be added to the cost of the asset.
Office of the Associate Vice President for Finance
Capital Asset ManagementGWU Policies
FURNITURE AND EQUIPMENT CAPITALIZATION THRESHOLD (Continued)
Replacement of worn out parts, such as light bulbs or filters, are
considered to be expendable supplies (are expected to be replaced periodically)
not add to the cost of the capital asset
Office of the Associate Vice President for Finance
Capital Asset ManagementGWU Policies
Surplus University Property
What is it
property that wears out, becomes obsolete or is no longer needed in operations,
Office of the Associate Vice President for Finance
Capital Asset ManagementGWU Policies
Surplus Property Policy (Continued) What do we do (continued)
The following types of dispositions of surplus property must be handled by Materials Management.
Sales of surplus property with a unit value greater than $500
Sale of surplus property that has a registered title (e.g. automobiles)
Donations of surplus property
Office of the Associate Vice President for Finance
Capital Asset ManagementGWU Policies
Surplus Property Policy (Continued) CONVERSELY
Department Heads may dispose directly of surplus property that does not meet the requirements set forth above provided that the following requirements are met: Transfers to other GW departments are reported to the
Office of the Comptroller (Change in Fixed Asset Status Form)
Property may be sold to third parties, including employees for personal use provided the fair market value of the property does not exceed $500.00. Sales must be made at fair market value.
Release and Waiver Form, Bill of Sale Form, and Change in Fixed Asset Status Form approved by the appropriate department manager. Completed forms must be sent to Materials Management with a copy to Capital and Investing Reporting.
Office of the Associate Vice President for Finance
Capital Asset ManagementGWU Policies
Surplus property Policy (Continued) Property Acquired through Sponsored Projects
Prior to disposing of surplus property purchased with sponsored project funds the department head first must secure approval for the proposed disposition by completing the Change in Fixed Asset Status Form and submitting it to the Office of Vice President for Research (OVPR).
Office of the Associate Vice President for Finance
Capital Asset Management
The Four Phases of Capital Asset Mgt
Acquisition Movement Inventory Disposition
Schools and Departments x x x x
Procurement x x
Facilities x x
Office of the Comptroller x x x x
Office of the Associate Vice President for Finance
Acquisitions
Department
identifies
need for asset
Department prepares
purchase requisition
Department
selects
vendor?
No
Department
sends
supporting
document to
purchasing
Yes
Procurement prepares
purchase order
Asset is
received
Department
receives
goods (in
Oracle/EAS)
Invoice is received
AP performs
3-way match of invoice,
purchase order,
and receipt information
AP pays invoice
Office of the Associate Vice President for Finance
Acquisitions – Gifts or Loans
Gift or Loan
received
Department notifies
Office of the Comptroller
Department notifies
Office of the Comptroller
Grant related?
Department notifies
OCRO
No Yes
Office of the Associate Vice President for Finance
Acquisitions –The CIR Team’s Responsibilities
Provide direct administrative support to the operating department regarding the control and maintenance of Capital Assets. Tagging assets Record keeping - FAS Ledger reconciliations – GL and GM vs. FAS
All Capital Asset records are maintained in accordance with OMB Circular A-110, FAR part 45 and GAAP.
Office of the Associate Vice President for Finance
OMB Circular A-110
Description of the asset Manufacturer’s Serial No. Model Number Award Number- PTA Title Vesting Information Acquisition Date % of Federal Participation Location of the asset Condition of the asset Unit cost Disposition information
Federally owned equipment shall be identified as such
Physical inventory must take place every 2 years.
Controls to adequately safeguard asset from loss, damage or theft.
Adequate maintenance procedures should be in place to keep equipment in good condition
Highest possible sale procedures
Office of the Associate Vice President for Finance
Movement
Department identifies asset to be moved to a new location
Department head
authorizes form
Department authorizes form
Grant related
asset?OCRO authorizes form
No Yes
Department completes a Change in Fixed Asset Status Form
Office of the Comptroller updates database for new location
Office of the Comptroller verifies asset in new location
Office of the Comptroller verifies asset to be moved
Department sends form to Office of the ComptrollerFacilities
moves asset
Department completes facilities FIXit request
Office of the Associate Vice President for Finance
Movement of Assets
The inventory process can only be successful if the database used to track assets is accurate.
The responsibility of maintaining the database’s accuracy falls on the CIR team
The CIR team relies on the individual schools, departments and asset custodians to communicate any changes to the asset’s location or usefulness.
Office of the Associate Vice President for Finance
Inventories
Operating Departments Responsible for maintaining the asset’s working condition Responsible for maintaining an accurate location listing for
all their assets
Capital and Investing Reporting Responsible for validating the existence, location and
condition of each Capital Asset Sponsored project assets are inventoried pursuant to OMB
Circular A-110 guidelines (every 2 years) The ledgers are reconciled to the inventory observed.
Office of the Associate Vice President for Finance
Disposals
Department decides
asset available for disposal,
sale, donation, or transfer
Department completes
Change in Fixed Assets Form
Is the asset
grant related?
Department head
authorizes form
No
OCRO also
authorizes
form
Yes
Department contacts ISS
ISS ensures confidential programs / files are erased
Department forwards form to
Office of the Comptroller
and Procurement
Facilities
removes asset
Department completes
facilities FIXit Request
Is the asset
a computer
or electronic?
Yes
No
Office of the Associate Vice President for Finance
Disposal Special Rules
Special rules apply to assets under sponsored project funding. Please check the provisions of your award and with OCRO
If an Asset is Sold Material Management and CIR should be contacted to provide
estimated market value and the current Net Book Value. If the value is under $500, the department can handle the sale
directly. If the value is over $500, the Materials Management
department is required to handle the sale. Required Paperwork: Change in Fixed Asset Status form,
Release of Waiver form and Bill of Sale
If Donated The same steps as a sale should be followed
Office of the Associate Vice President for Finance
Disposal- Internal Transfers
Internal Transfers The operating department completes a Change in Fixed
Asset Status Form
The form is approved by the department head The form is forwarded to the Capital and Investing
Reporting Team in the Office of the Comptroller The asset is transferred to the receiving department Capital and Investing Reporting will contact receiving
department to confirm receipt and may ask to schedule time to visually inspect the asset in its new location.
The department should keep a copy of all documents
Office of the Associate Vice President for Finance
Who to call in Fixed Assets
For asset recognition amd For asset tagging
Ellen Thompson 703-726-4216 [email protected] For inventory scheduling and For asset movement, transfer or disposal
Patrick Gerhold 703-726-4195 [email protected] For capital lease information
Jeff Jones 703-726-4212 [email protected] For construction or capital project relate questions
Chris D’Alessio 703-726-4110 [email protected] For all other Questions
Dan MacGregor 703-726-4115 [email protected]