its an presentation according to fixed assets of accounting in the university of commerce and finance sector its help student in many ways of life for class presentation in university.
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Workshop-Presentation-2020.pptx
1. Fixed Assets
Policies and Procedures
How they affect you
6/5/2023 Fixed Assets Section of Accounting Services 1
2. Fixed Assets Policies and Procedures
DIRECTLY AFFECT:
• your work
• your budget
• your responsibilities pertaining to UNCG assets
• University’s financial reporting
6/5/2023 Fixed Assets Section of Accounting Services 2
3. 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
6/5/2023 Fixed Assets Section of Accounting Services 3
4. 6/5/2023 Fixed Assets Section of Accounting Services 4
3 Types of Fixed Assets
Other Tangible or Intangible assets
• (In-house designed) Software
Purchased software is not a Fixed Asset
• Copyrights
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
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.
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6. Cost Threshold
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IF the Total Cost ≥ $5,000 – It is a Fixed Asset
Capital expenditure account codes required for Fixed Assets
Shipping &
Handling
Installation
Fees
Delivery Fees
COSTS INCLUDE
$3,995.00
+ $300.00 + +
$500.00 $1,300.00
Asset Cost
$6,095.00
8. Fixed Asset Account Codes
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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
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:
1. A capital expenditure account code is used
2. AND the $5000.00 threshold IS MET
Triggered by A/P INVOICE and DEPT. receiving the item
6/5/2023 Fixed Assets Section of Accounting Services 9
10. 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.
6/5/2023
Fixed Assets Section of Accounting Services 10
11. Remember
Use EA for ‘Each’ as the Unit of Measure when purchasing assets
with Quantity Unit Price.
6/5/2023 Fixed Assets Section of Accounting Services
@ $41,549.95
Incorrect
@ $22,870.90 ea
Correct
@ $18,679.05 ea
12. Combined Costs
• If the combined costs total $5,000+
Including shipping, handling, installation
and tax
• How:
Use same expenditure account code in accounting block.
6/5/2023 Fixed Assets Section of Accounting Services 12
13. Things to remember when purchasing
Fixed Assets:
Do not include in the asset cost:
Maintenance Agreements
Service Contracts
Extended Warranties
Do not use asset capital expenditure account code
6/5/2023 Fixed Assets Section of Accounting Services 13
Search by %Main% on FTVACCT: Use accounts 236010-237210 for
Maintenance Contracts
Search by %Support% on FTVACCT: Use accounts 221060-221110 for Support
Services.
Maintenance
Agreements
Service
Contracts
Extended
Warranties
14. Fixed Asset Example
Requisition Line Items Cost Quantity Account
• Frame $8,396.97 1 EA 203430
• Eyepiece 207.00 2 EA 203430
• Stage 5,905.50 1 EA 203430
• Observation Tube 1,408.95 1 EA 203430
• SIM Laser Scanner 4,926.00 1 EA 203430
• Transmitted Light Detector 5,609.76 1 EA 203430
• Spectral Detection 6,302.50 1 EA 203430
• Fiber Port 537.54 1 EA 203430
• Optional Software 4,499.00 1 EA 203730
• Shipping/Handling 100.00 1 EA 203430
• Installation 800.00 1 EA 203430
• Extended Warranty 2.000.00 1 EA 236010
6/5/2023 Fixed Assets Section of Accounting Services 14
TOTAL ASSET COST $34,194.22
REQUISITION TOTAL $40,693.22
Microscope with Laser
15. Policy for Pcards
• PCard purchases of capital assets are excluded by threshold of
$4,999.00 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
6/5/2023 Fixed Assets Section of Accounting Services 15
16. 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.)
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17. Policy for Tagging New Assets
• 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.
6/5/2023 Fixed Assets Section of Accounting Services 17
New Assets should NOT leave campus BEFORE being tagged!
18. 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 7.8 - 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
• http://www.uncg.edu/baf/C&G_POL_11.html
6/5/2023 Fixed Assets Section of Accounting Services 18
19. Annual Inventory
6/5/2023 Fixed Assets Section of Accounting Services
19
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
State Auditors annually audit: asset costs, depreciation, disposals, and
physical items
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
20. 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 7.8 - 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.
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21. Annual Inventory
Immediately:
• Call or email to confirm receipt of inventory email 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.
6/5/2023 Fixed Assets Section of Accounting Services 21
DESIGNEE RESPONSIBILITIES
22. 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 email 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
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23. After Initial Inventory
MISSING ITEMS – over the next 10 days
An email 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.
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24. 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.
6/5/2023 Fixed Assets Section of Accounting Services 24
25. Donating Assets
• No items may be donated to outside agencies per General Statute (GS 143.61
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.
6/5/2023 Fixed Assets Section of Accounting Services 25
26. Stolen Assets
According to General Statute 114-15, 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.
6/5/2023 Fixed Assets Section of Accounting Services 26
27. Disposing Assets
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!
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28. Completing Forms
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Fixed Assets Webpage:
• Forms
• Link to eDiposal Form to complete online
• Annual Inventory Schedule
• Training Power Point
fix.uncg.edu
29. Completing Proper Forms
•eDisposal Form
completed and submitted electronically online for all assets being
removed from service, with approval email from Dean or highest ranking
department head of the custodian assigned Organization Code
•FA-14 Transfer form & FA-16 Off Campus Agreement
signed by the same dean or highest ranking department head of the
assigned Organization Code. Data Enterable PDF versions
containing new policy format available on our website. Use in place of
older paper copies.
•Copies
all FA forms should be kept by the department
•Equipment checkout list
available to departments
6/5/2023 Fixed Assets Section of Accounting Services 29
30. Completing eDisposal Form
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
6/5/2023 Fixed Assets Section of Accounting Services 30
31. Requires More Than eDisposal Form
eDisposal Forms must also be submitted for:
• Traded-In with authorization from Purchasing for monetary credit
toward purchase. Should be eMarketplace attachment.
• Stolen provide copy of the UNCG or municipal police report
• Lost unknown location and asset unaccounted for. Memo from
department head stating details of asset disappearance.
• Junked ( i.e. Used for parts on other assets) Memo from department
head stating details of how it was used for parts, including asset and
serial numbers of new host assets.
• Destroyed by fire, water damage or accident. 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 Transferring to another State university or agency. Memo
to University Controller requesting transfer, list of equipment and
signature of accepting agency or university agent.
6/5/2023 Fixed Assets Section of Accounting Services 31
32. 6/5/2023 Fixed Assets Section of Accounting Services 32
**Multiple Asset Disposal Form -spreadsheet
Submit generic eDisposal form.
When you receive the system automated email confirmation,
forward your confirmation email to:
fxdassts@uncg.edu
Your department head for approval
attach the Multiple Asset Disposal Form
attach any other required documentation
eDisposal of more than 5 assets
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.
6/5/2023 Fixed Assets Section of Accounting Services 33
34. Completing Proper Forms
FA-16 Agreement for Equipment Located Off-Campus
• Requires removal and expected return dates
• Department head and user signatures required
6/5/2023 Fixed Assets Section of Accounting Services 34
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
6/5/2023 Fixed Assets Section of Accounting Services 35