1 / 13

Property Management

Property Management. Capitalization Quick Review. Why It’s Important. Subject to audit by our external auditors Annual property review by ONR Property reporting on sponsored agreements Financial Statement impact. Capitalization Thresholds.

Download Presentation

Property Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Property Management Capitalization Quick Review

  2. Why It’s Important • Subject to audit by our external auditors • Annual property review by ONR • Property reporting on sponsored agreements • Financial Statement impact

  3. Capitalization Thresholds • Capitalized equipment has a cost of => $5,000 per single functional unit, inclusive of shipping and installation. Equipment to be capitalized must have a useful life of 1 year or more • Computer Software –with a cost of => $100,000 or more per license • Fabrications consist of purchases that can be < $5,000, but are combined to form a single functional unit of equipment => $5,000

  4. Equipment Line Items • 5410101 - Equipment => $5,000 – Computer Equipment Office • 5410201 - Office Computer Software Equipment => $25,000 per License • 5410301 - Equipment => $5,000 – Office & Communication • 5410401- Equipment => than $5,000 – Research & Educational

  5. Equipment Line Items continued… • 5410501 – Equipment => $5,000 – Household & Furnishings • 5410602 – Equipment => $5,000 – Medical Equipment • 5410701 – Equipment => $5,000 – Vehicles • 5410802 – Equipment => $5,000 – Farm & Construction Equipment • 5410902 – Equipment => $5,000 – Other Capital Equipment

  6. Equipment Component Line Items Components increase the value of existing units of capitalized equipment or are combined to fabricate a unit of equipment with a cost of =>$5,000 • 5410112 Equipment Components < $5,000 – Computer Related • 5410411 Equipment Components < $5,000 – All Other

  7. What does it mean when I pay something on a capitalized line item (5410XXX series)? • The item meets the definition of capitalized equipment • A WVU tag number prefixed with the alpha characters of ‘OCXXXXX needs to be affixed/assigned • An asset acquisition form or fabrication modification form should be submitted to Property Management • If the purchase does not result in an asset being added or increased in value in the Fixed Asset module, use a general expense line item

  8. Coding Shipping/Freight on Equipment Purchases • Shipping charges should be coded the same line item as the equipment • If supply and equipment items are billed on one invoice – the shipping should be prorated between the items. • Contact Property Management to assist you with prorated shipping charges

  9. Procurement Card Purchases • If you code a p-card purchase with a capitalized line item (5410XXX series), please send a copy of the invoice/packing list to Property Management upon receipt of the documentation. • Fax to Randy Powers at 293-6856, or • Scan and email copy to assetmg@mail.wvu.edu, or • Mail to Property Management, PO BOX 6001

  10. Examples • Tires are replaced on a vehicle – are they a component? – NO – expense line item • 14 computers are acquired @ $3,400 each that are to be individually functional for a total price of $47,600 – capitalize? – NO – use general expense line item • A specialized lens for a capitalized microscope is acquired – is this a component? – YES – use the component line item

  11. Line Item Coding Tips • Repairs fall under the line item prefixed by 5340XXX • Replacement parts for units of equipment that do not increase the value fall under the line item prefixed by 501XXXX • General expense equipment (cost < $5000) fall under the line item prefixed by 501XXXX • Maintenance of existing equipment falls under the line item prefixed by 501XXXX

  12. Line Item Coding Tips • Software with a value of < $100,000 should be recorded as a general expense: • Software < $5,000 should be coded 5011105 • Software => $5,000 but < $25,000 should be coded 5011111

  13. Property Management Internal Transfers • When items are coded incorrectly, Property Management will ask the department to fix the line item coding with an Internal Transfer (IT) or Property Management may create an IT to fix the error • If the department creates the IT to fix the error, please be sure to: • Reference the invoice number and period name of the original purchase in the description of the IT • Attach a copy of the original vendor’s invoice as support to the IT

More Related