BANNER FIXED ASSETS POLICIES AND PROCEDURES How they affect you. Lorie Pierce, Fixed Assets Coordinator Fixed Assets Section of Business Services 2/24/2016 1
WHAT ARE WE TALKING ABOUT? Fixed Assets policies and procedures that directly affect your work, your budget, and your responsibility for protection of UNCP assets as custodian department. Fixed Assets Section of Business Services 2/24/2016 2
WHAT DOES THE FIXED ASSETS SECTION OF BUSINESS SERVICES DO? We are responsible for: Determining new assets and tagging for identification Performing annual inventory audits Determining correct cost of assets recorded Maintaining the University Fixed Assets accounting records that document equipment and property acquisitions and which are part of the annual University Financial Statements. 2/24/2016 Fixed Assets Section of Business Services 3
FIXED ASSETS RESPONSIBILITY All moveable capitalized assets and inventoried assets are physically inventoried each fiscal year (July-June) by Fixed Assets staff after pre-inventory is completed by the departments. Each Department Head/Manager is responsible for safeguarding all assets purchased by his or her department and signing an Annual Inventory Form and assisting with the Physical Inventory. Physical assets, their cost and depreciation are audited annually by the State Auditors These records are used by the University to report Fixed Assets on the Annual Financial Statements Fixed Assets Section of Business Services 2/24/2016 4
FIXED ASSETS RESPONSIBILITY BY DEPARTMENT For Equipment Under the Capital Threshold of $5,000. You may want to also keep these on a spreadsheet or list by the department, including serial numbers for a departmental record. Fixed Assets Section of Business Services 2/24/2016 5
FIVE AREAS OF IMPORTANCE New Assets Purchases Tagging Annual Inventory Forms Our Website Our Staff & Location Fixed Assets Section of Business Services 2/24/2016 6
WHAT ARE FIXED ASSETS? DEFINITION Fixed assets are classified as either capitalized or inventoried assets and are acquired for use in normal operations Capitalized Fixed Assets: are land, buildings machinery, tools or furniture (Property, Plant and Equipment) that cost more than $5,000. The cost of capitalized items include shipping charges, legal fees, setup cost, in addition to the purchase price, all which together must equal at least $5,000. Are used in course of business operations Have a normal life expectancy of two years Inventoried Fixed Assets: include all assets $2,500 or greater. The cost of inventoried items include shipping charges, legal fees, setup cost, in addition to the purchase price, all which together must equal at least $2,500. Fixed Assets Section of Business Services 2/24/2016 7
What are Fixed Assets? Includes 3 types of assets- Permanent land, improvements to land, easements, buildings, building improvements, infrastructure, and structures Moveable Equipment (Asset barcodes applied & inventoried) Office equipment and furniture, Data processing equipment, Educational, research and scientific equipment, Motor vehicles- licensed, Other equipment -unlicensed vehicles, machinery, landscaping, dining hall, maintenance and other equipment Other tangible or intangible assets Software, copyrights, etc 8 Fixed Assets Section of Business Services 2/24/2016
FIXED ASSET COST THRESHOLD $5,000(Capitalized) and $2,500(Inventoried) Per Asset ONLY The recorded cost of each capitalized fixed asset in the General Ledger includes: Asset Cost + (tax) Delivery Fees Legal Fees Installation Fees + $3995.00 $300.00 + $500.00 + $1300.00 *All/Any of these must be combined to equal the NC State threshold of $5,000 IF the Total Cost $5,000 appropriate purchasing expenditure codes are required Fixed Assets Section of Business Services 2/24/2016 9
Fixed Assets Section of Business Services 2/24/2016 10
THINGS TO REMEMBER FOR PURCHASES 1. Use EA for Each as the Unit of Measure when purchasing assets with Quantity Unit Price. $11,734.00 Fixed Assets Section of Business Services 2 @ $5867.00 EA 2/24/2016 11
THINGS TO REMEMBER FOR PURCHASES: 2. When all line items purchased create 1 asset, purchase with the same fixed asset capital expenditure account If : The combined items total is $5,000 or more Including shipping, handling, installation and tax NOT including extended warranties or maintenance agreements How: Use same expenditure account code in accounting block. Fixed Assets Section of Business Services 2/24/2016 12
FIXED ASSET EXAMPLE Microscope with Laser 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 4th Channel 2,681.59 1 EA 203430 PMT Detection Unit 3,692.12 1 EA 203430 Fiber Port 537.54 1 EA 203430 Shipping/Handling 100.00 1 EA 203430 Installation 800.00 1 EA 203430 Optional Software 4,499.00 1 EA 203730 Extended Warranty 2000.00 1 EA 236010 TOTAL ASSET COST $40,774.93 REQUISITION TOTAL $47,273.93 Fixed Assets Section of Business Services 2/24/2016 13
THINGS TO REMEMBER WHEN PURCHASING FIXED ASSETS : 3. Any item purchased to be permanently added to, attached to, or installed into a previously purchased capital asset must be purchased using the same capital expenditure code used for that asset. This includes equipment items such as a Handicap Lift for a Bus, Digital camera for a Microscope, but does NOT include expendable supplies such as copier toner or intangible assets such as software. (Contact Fixed Assets Department, if unsure.) Fixed Assets Section of Business Services 2/24/2016 14
FIXED ASSETS EXAMPLE: BUS WITH HANDICAP LIFT Handicap Lift $6,000.00 Installation 1,000.00 Total Cost $7,000.00 (To be installed into Asset N00067962-Bus) Fixed Assets Section of Business Services 2/24/2016 15
THINGS TO REMEMBER WHEN PURCHASING FIXED ASSETS: Maintenance Agreements Service Contracts Extended Warranties 4. Do not include in the asset cost Fixed Assets Section of Business Services 2/24/2016 16
FIXED ASSET EXAMPLE: COPIER 2/24/2016 17 Fixed Assets Section of Business Services
NEW ASSET TAGGING Fixed Assets Section of Business Services 2/24/2016 18
POLICY FOR NEW ASSETS NO NEW ASSET SHALL BE REMOVED FROM CENTRAL RECEIVING BEFORE BEING TAGGED! Based on the University's inventory and capitalization policies, the Receiving Department staff determines which items will be assigned a tag number and added to the Banner Fixed Assets System. Items $2,500 or greater will be added to the Banner Fixed Asset System and items $5,000 or greater will be added to the Bassets Fixed Assets System. The Receiving Department staff is responsible for physically placing the tag number on the front or other easily accessible area of the asset. Under no circumstances should anyone take an item off campus before the Receiving Department staff has properly tagged it. 2/24/2016 Fixed Assets Section of Business Services 19
POLICY FOR NEW ASSETS Barcode tags are required for these new assets with a total cost of $2500 or more: Office Furniture & Equipment Electronic Data Processing Equipment Educational, Scientific and Research Equipment Motor Vehicles (Licensed) Other Equipment (Non-licensed vehicles, grounds & landscaping, etc.) Fixed Assets Section of Business Services 2/24/2016 20
ANNUAL INVENTORY Fixed Assets Section of Business Services 2/24/2016 21
DEPARTMENT HEAD DUTIES RESPONSIBILITIES 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).. 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 Coordinator. Any missing/surplused items must be accompanied by a police report and a transfer movable/surplus form. (NO EXCEPTIONS) All Fixed Assets Forms must be signed by the department head and returned to the Fixed Assets Coordinator. 2/24/2016 22 Fixed Assets Section of Business Services
ANNUAL INVENTORY: DESIGNEE DUTIES Immediately: Call 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. Send updates and all forms to Fixed Assets Coordinator. Call to set up an appointment. Fixed Assets Section of Business Services 2/24/2016 23
ANNUAL INVENTORY: DESIGNEE DUTIES Any asset listed on the current department inventory must be inventoried. These are the designee s responsibility. This includes: those assets in the process of being properly transferred when the inventory packet is sent out any relocated assets transferred without a properly completed Transfer of Moveable/Surplus Equipment form A properly completed Transfer of Moveable/Surplus Equipment form is required to transfer such an asset to the new location. This form is also the designee s responsibility of the current department. 2/24/2016 Fixed Assets Section of Business Services 24
ANNUAL INVENTORY: DESIGNEE DUTIES Before inventory appointment: Request by urgent email that all department employees with Off- Campus laptops, portable equipment and instruments bring them in on the day of the appointment for scanning. Arrange for access to all assets listed on inventory: get keys to labs, set up appointments, get combinations to lockers, have students return items, etc. 2/24/2016 Fixed Assets Section of Business Services 25
ANNUAL INVENTORY: DESIGNEE DUTIES On the day of scheduled inventory appointment: Escort your Fixed Assets Coordinator to each asset. If assets are missing, during next 10 days: Locate each item or document the status upon receipt of the Missing Assets Report. Call your Fixed Assets Coordinator for an appointment to verify any located missing items at the close of the inventory in 10 days or after. Missing Verification Appointment: Escort the Fixed Assets Coordinator to each located missing asset. 2/24/201 6 Fixed Assets Section of Business Services 26
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. If we have not been taken to the asset to see it, we are required to code it as missing. All assets not found at the close of your inventory will be reported to the Director of Business Services immediately. 2/24/2016 Fixed Assets Section of Business Services 27
FORMS Fixed Assets Section of Business Services 2/24/2016 28
Fixed Assets Section of Business Services 2/24/2016 29
COMPLETING FORMS PROPERLY All paper Fixed Asset forms must be signed by the dean or highest ranking department head of the custodian department. New versions with new policy format should be printed from our website. These should be used in place of older ones. (Adobe Reader 7.0 or higher). Copies of all FA forms should be kept by the custodian department. Forms should always be submitted to Fixed Assets Coordinator as soon as changes in the asset s inventory status occur! Fixed Assets Section of Business Services 2/24/2016 30
COMPLETING PROPER FORMS Transfer of Movable/Surplus Equipment: to surplus or transfer assets to other departments. This form can be located under the Surplus section on the Business Services Website. FAS-1 Form: to change the location, description, remove or replace a Fixed Asset. Please complete FAS-1Form under the Fixed Assets section and return to the Fixed Assets Coordinator. Fixed Assets Section of Business Services 2/24/2016 31
COMPLETING PROPER FORMS If you are reporting any of these transactions you must complete the appropriate forms: Traded-In with authorization from Fixed Assets Stolen/missing with a copy of the police report Exchanged for different assets or returned to the vendor after tagging Junked ( i.e. Used for parts) Destroyed by fire, water damage or accident. Fixed Assets Section of Business Services 2/24/2016 32
COMPLETING PROPER FORMS Transfer Forms Must be signed by both department heads Should be the responsibility of current department. Can be used to change location only Fixed Assets Section of Business Services 2/24/2016 33
COMPLETING PROPER FORMS Stolen/Missing assets a copy of the UNCP police report or external police report with the asset tag and serial numbers should be attached to the Inventory form and submitted to Fixed Assets Coordinator for removal of the asset from your inventory. 2/24/2016 Fixed Assets Section of Business Services 34
WHAT ALL THIS MEANS Custodian departments are responsible for their UNCP assets including: purchase, protection, location, and proper disposal. Following University policy and procedures during the year will save the department a tremendous amount of searching for missing assets and help maintain inventory accuracy. 2/24/2016 Fixed Assets Section of Business Services 35
USING OUR WEBSITE Fixed Assets Section of Business Services 2/24/2016 36
OUR STAFF & LOCATION Fixed Assets Section of Business Services 2/24/2016 37
Karen Swiney Interim Director of Business Services Travis Mosley Surplus Property Coordinator OUR STAFF Lorie Pierce Fixed Assets Coordinator Billy Hunt Receiving/Delivery Clerk Fixed Assets Section of Business Services 2/24/2016 38
OUR STAFF & LOCATION Business Services Staff Karen Swiney Interim Director of Business Services Email: karen.swiney@uncp.edu Phone: 910.521.6292 Lorie Pierce Fixed Assets Coordinator Email: lorie.pierce@uncp.edu Phone: 910.521.6234 Business Services PO Box 1510 Pembroke, NC 28372-1510 Phone: 910.521.6203 Fax: 910.521.6688 Relay 910.521.6203 Email: business.services@uncp.edu Location: Auxiliary Services Building Travis Mosley Property Coordinator Email: travis.mosley@uncp.edu Phone: 910.521.6346 Billy Hunt Receiving & Delivery Clerk Email: billy.hunt@uncp.edu Phone: 910.775.4161 Fixed Assets Section of Business Services 2/24/2016 39
NEXT STEPS Please read and follow the Inventory Instructions and Fixed Assets Policy/Procedures. Check our website for answers to your questions. Call us. The Fixed Assets staff will be glad to answer any questions about how to follow University policy and procedures. Get ready for your next inventory! 2/24/2016 Fixed Assets Section of Business Services 40