The assets are recorded in the fixed asset module of the Finance E5 System. This includes all assets with a value over 1,000.

Transcription

1 Fixed Asset Register User Procedures Purpose of Fixed Asset Register (FAR) The fixed asset register (FAR) provides a system for the University to keep track of each fixed asset ensuring control over assets and preventing misappropriation of its assets. It keeps track of the value of assets for depreciation, tax and insurance purposes. The assets are recorded in the fixed asset module of the Finance E5 System. This includes all assets with a value over 1,000. University Policy All assets remain the property of the University. Assets purchased under a research grant, consultancy income or similar remain the property of the University. If there are specific terms in a letter of offer stating otherwise please forward this letter of offer to Finance to confirm the equipment is not University owned. The University s policy is to register all fixed assets with a value greater than 1,000. The assets are recorded under different groups dependent on their value: Value Group in E5 Fixed Assets Module 10,000 or greater Group 2 1,000 to 9,999 Group 99 Less than 1,000 Group 90 All assets with a value greater than 10,000 are capitalised and depreciated over four years. For assets purchased under a research grant the asset is depreciated over the shorter of its useful economic life or the life of the research grant. Assets valued under 1,000 are only recorded at Faculties/Departments discretion. Finance will not maintain or do any audit checks on these assets. Faculty/Department Responsibilities 1. Ensure FAR forms are completed for all assets purchased greater than 1,000 (including VAT) 2. Tag all assets with the FAR form number 3. Maintain the FAR system for movement of assets room location, owner, obsolete etc 4. Carry out an annual physical inspection of assets 5. Assist Finance in random physical inspection of assets (this will be biannually on a selective basis) 6. Maintain Loan Book for borrowed assets

2 7. Ensure asset disposal procedures are followed 8. Record asset transfer forms 9. Ensure any removal of equipment by staff follow procedures 1. FAR Forms Each Faculty/Department is issued with a supply of FAR forms (in pads of 50) and these must be completed, for each and every item, where the request relates to an item of equipment which costs more than 1,000. (Note that Faculties may record items costing less than 1,000 at their own discretion.) The FAR form is in duplicate and is pre-numbered and this number should be inscribed on the equipment when it is received either by the owner or a designated individual within the Faculty / Department. The FAR form should be completed at the time the requisition is raised and scanned and added as a paperclip to the requisition or forwarded to Finance Ledgers & Controls Office, X021, Coleraine. When the piece of equipment is received the manufacturer s serial number can be added to the form and forwarded to Finance Ledgers & Controls Office, X021, Coleraine. For audit purposes, it is important that a strict record is maintained on the issue of FAR forms and accordingly the Ledgers & Controls Office must be informed if they have not been used i.e. spoiled, overlooked or cancelled. Completion of the FAR form will involve the following: 1. Requisition Number 2. Cost Centre Code 3. Campus 4. Asset Classification (please see Appendix 1) 5. Fixed/Moveable 6. Asset Description 7. Location (Room Number) 8. Owner (member of staff who actually uses the equipment) When the equipment has been received, and the invoice paid, the record will be updated on the e5 FAR system by Finance Office staff, to include the final cost of the asset. Group 2 Capitalised Equipment Parent/Child Relationship When a capitalised asset consists of a few smaller items of equipment e.g. refurbishment of a lab, one main asset is created under Group 2. In Group 99 the assets making up the main asset are recorded individually and tagged individually. A parent/child relationship is then set-up in the system to link the assets together. The group 2 asset is the parent and the group 99 asset is the child.

3 2. Tag assets with FAR number In order to identify the asset to the FAR system each Faculty/Department must tag each asset with the number on the FAR form. 3. Maintaining the Fixed Asset Register Faculties and Departments will have access and will be required to maintain the system under the following areas: Location - Campus Location - Room number Owner Fixed/Moveable Manufacturers Serial Number Location two fields to complete for campus and room number where the asset is located. The transfer of assets from one location to another should be updated on E5 FAR system as soon as a transfer has been made. Owner name of the person responsible for the equipment. Fixed/Moveable record the asset as to whether it is fixed in place or is a moveable asset Manufacturer s Serial Number to be added, where applicable. Status select appropriate status for the asset: Status C D E M O S Description Current asset in use Damaged / Destroyed Error i.e. entry in error (duplicated or a consumable) Missing Obsolete Sold Missing (M) Items Items which are found to be missing, presumed stolen, should be reported immediately to the Head of School or Director of the Department concerned. All such losses must be reported to the Police Service of Northern Ireland (PSNI) and a crime reference number obtained. The loss should also be reported to the Finance Ledgers & Controls Office, X021, as a potential insurance claim. The item should, after authorisation by the Head of School/Director be recorded as missing on FAR (status M). Obsolete (O) Items

4 Items which have become obsolete should, after due authorisation by Head of School (Department) be recorded as obsolete on FAR (status O). A copy of the memo confirming obsolescence should be sent to the Finance Ledgers & Controls Office, X021. Asset Number All equipment assets start with an A. Some of the assets in group 99 start with an AC. This is where on transferring the assets across to the new E5 Finance system the asset already existed under Group 2 capitalised equipment. In order to identify these group 99 assets an additional letter AC has been added. The number of the asset remains the same. The asset number tag should read as per the original FAR form AXXXXXX. Annual Physical Inspection Each Faculty/Department is required to carry out an annual physical inspection of assets. A full list of assets by School/Faculty/Department is available on Cognos 8. This report can be sorted by room number to make the inspection easier. This report should be saved into excel and used as a working document to record any changes required. This inspection should pay particular attention to Group 2 assets (capitalised assets) with a net book value of nil and their status should be confirmed with the asset owner. A list of all assets identified as obsolete should be forwarded to Ledgers & Controls Office, X021, Coleraine who will make appropriate accounting entries to the General Ledger. 4. Audit Requests Quarterly audits will be carried out during the financial year. Random samples from Faculty / Department records will be forwarded to Deans / Directors for testing and approval. One Faculty/ISD and one department will be chosen for each quarter. Findings should be forwarded to the Ledgers & Controls Office within two weeks of receipt of this report. Half-yearly physical audits will also be carried out by Finance staff. A random samples of 20 records will be tested from one Faculty/ISD and one Department. Any changes will be updated accordingly to the E5 Finance system. 5. Loan Book - Borrowing University Assets A Loan Book must be maintained at all locations for recording assets that have been borrowed by a member of staff for personal use at home or whilst on business trips. Loan information should be reviewed on a regular basis by the Head of School or a designated member of staff to identify assets overdue for return. Loan details should also be reviewed when a member of staff

5 resigns in order to ascertain if any assets are due to be returned prior to the employee leaving the University. Note that there may be insurance implications connected with borrowing University assets. 6. Disposals It is the responsibility of the asset owner to decide when an asset is obsolete. The asset owner should alter its status to obsolete on FAR. Equipment identified as obsolete should be redeployed where appropriate. Where redeployment is not possible and the asset has a value the asset can be advertised for sale. The Head of School/Head of Department must authorise any equipment offered for sale or disposal. The disposal of IT and AV equipment must follow the WEEE procedures as detailed at: _av_equipment.pdf The disposal of all other equipment must follow the procedures as detailed at: On sale or disposal of the asset that status should be updated by the asset owner. An should be sent to the Finance Ledgers & Controls Office, X021, Coleraine confirming change of status. On receipt of this information the Finance Ledgers & Controls Office will then check to see if this has any implications for the capitalised fixed assets and make necessary accounting journals. 6. Fixed Asset Transfer (FAT) Forms When equipment is being transferred from one Faculty / Department to another, a FAT Form must be raised. The transfer must be authorised by the Dean / Head of Department. The forms which are in pads of 50 and in duplicate, can be obtained from the Ledgers & Controls Office. The top white copy is forwarded to the Ledgers & Controls Office, to amend the FAR record and the yellow copy is retained. 7. Removal of Equipment by Staff It should be noted that if a member of staff is leaving the University, for data security reasons, they are not permitted to remove/retain any University equipment (e.g. personal computer, laptop etc) for their own personal use. In the case of Senior Researchers leaving the University to take up posts in other universities where their research will continue, it is permissible, subject to agreement with the Head of School and the Head of Procurement, and the conditions of the research grant which funded the equipment, that their

6 research equipment be taken with them. If this involves the transfer of computer equipment, arrangements must be made to remove any software which is licensed to the University, prior to the item being removed. 8. Group 90 Assets Valued under 1,000 Assets valued under 1,000 can be recorded by Faculties/Departments at their own discretion. A FAR form does not need to be completed. In its place Finance will issue a spreadsheet as the Faculty/Department request requiring certain information to be recorded (as per FAR form) and this can be uploaded into E5 by Finance. The asset number starts will prefix letter as detailed below and the number must follow in a sequential order. All assets should be tagged with this number also. Faculties/Departments should prefix these assets with the following number: Faculty/Department D E F H I J K L M N O P Q R S Asset Letter Art Design & Built Environment Arts Computing & Engineering Life & Health Sciences Social Sciences Ulster Business School Development Finance & ISD Human Resources Research & Innovation Teaching & Learning Physical Resources Vice Chancellor Office PVC Communication Provost CE& MG Ed Partnerships & International Office

7 APPENDIX 1 CATEGORY CODES FOR GROUP 2 EQUIPMENT ASSETS Category Description 01 Fixtures and Fittings 02 Research Funded Equipment 03 Research Funded Motor Vehicles 04 IT Equipment and Hardware 05 Motor Vehicles CATEGORY CODES FOR GROUP 99 EQUIPMENT ASSETS (in line with first two digits of procurement codes) Category Description 21 Farming & Forestry Machinery & Accessories 23 Industrial Manufacturing & Processing Machinery & Accessories 25 Commercial & Private Vehicles & Accessories 40 Conditioning Systems & Components 41 Laboratory Equipment & Supplies 42 Medical Equipment & Supplies 43 Information Technology (IT) & Telecommunications 44 Office Equipment & Supplies 45 Printing & Photographic & Audio Visual Equipment & Supplies 47 Cleaning Equipment & Supplies 48 Service Machinery & Equipment & Supplies 49 Sports & Recreational Equipment & Supplies 56 Furniture & Furnishings 60 Musical Instruments, Arts & Educational Equipment & Supplies

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