Fixed Assets

1. Fixed Assets Fiscal Year-end Closing Procedures June 2011

2. These are generic procedures intended for use by ITC’s in creating their own local procedures. Districts should use the procedures provided to them by their ITC. Disclaimer

3. Capital Asset Reporting Review • Required for Period H Financial Reporting • EMIS Fields Required (from Chapter 5 EMIS Guide) • Capital Assets Code (QC971) • Specifies which row of statement • One record reported for each code (row) with non-zero amounts • Old Balance (QC972) • Additions (QC973) • Reductions (QC974)

4. EISEMS compiles data into proper format • EISEMS.COM procedure • Prompts for Entity ID’s to include or exclude • Runs EIS103 for Original Cost amounts • Runs EIS104 for Depreciation amounts • Compiles results into EISEMS.SEQ file • Ch. 5 EMIS Sequential file with Capital Assets info • Load into EMIS in normal manner • Generates summary report

5. Date: 04/23/10 Sampleville Schools Page: 1 Time: 9:24 am Summary of Changes in Governmental Activities (EISEMS) Balance at Additions (acquisitions, Reductions (dispositions, Balance at 07/01/2009 transfers in, + adjust.) transfers out, - adjust.) 06/30/2010 --------------- ------------------- ---------------------- -------------------Governmental Activities (G fund type only) Nondepreciable Capital Assets (EIS103 amounts) Land NDL(01xx if deprec is “N”) 1,027,761.15 0.00 (1,014,877.15) 12,884.00 Construction in Progress NDC (08xx) 0.00 0.00 0.00 0.00 ------------------- ------------------- ----------------------- ------------------- Total Nondepreciable Capital Assets 1,027,761.15 0.00 (1,014,877.15) 12,884.00 ------------------- ------------------- ------------------------ ------------------- Depreciable Capital Assets (EIS103 amounts) Land Improvements DLI (01xx) 446,115.85 5,250.59 (8,778.50) 442,587.94 Building and Building Improvements DBI (02xx) 10,342,664.19 0.00 0.00 10,342,664.19 Furniture, Fixtures, and Equipment DFE (03xx) 2,122,291.54 12,715.30 (557,500.03) 1,577,506.81 Vehicles DVE (04xx) 1,206,631.80 0.00 (17,536.05) 1,189,095.75 Infrastructure DIN (05xx) 0.00 0.00 0.00 0.00 Books DBK(06xx) 758,194.89 0.00 (758,194.89) 0.00 ------------------- ------------------- ----------------------- -------------------- Total Depreciable Capital Assets 14,875,898.27 17,965.89 (1,342,009.47) 13,551,854.69 ------------------- ------------------- ----------------------- -------------------- Less Accumulated Depreciation (EIS104 amounts) Land Improvements LLI (01xx) (175,112.84) (22,344.20) 0.00 (197,457.04) Building and Building Improvements LBI (02xx) (5,524,403.53) (216,442.00) 0.00 (5,740,845.53) Furniture, Fixtures, and EquipmeLFE (03xx) (1,383,016.04) (105,491.46) 495,032.92 (993,474.58) Vehicles LVE (04xx) (735,298.17) (55,548.16) 17,477.74 (773,368.59) Infrastructure LIN (05xx) 0.00 0.00 0.00 0.00 Books LBK (06xx) (723,298.57) 0.00 723,298.57 0.00 ------------------- ------------------- ---------------------- ------------------- Total Accumulated Depreciation (8,541,129.15) (399,825.82) 1,235,809.23 (7,705,145.74) ------------------- ------------------- ---------------------- ------------------- Depreciable Capital Assets, Net 6,334,769.12 (381,859.93) (106,200.24) 5,846,708.95 (Total Dep Cap Assets + Total AccumDep) ------------------- ------------------- ----------------------- -------------------- Governmental Activities Capital Assets, Net 7,362,530.27 (381,859.93) (1,121,077.39) 5,859,592.95 (Total Nondep. Cap Assets + Net Deprec Cap Assets) =============== =============== =============== ===============

6. Capital Asset ReportingThings to check prior to running EISEMS • 01xx Asset Class • Have subclasses designated for land and land improvements and have assets appropriately classified into each category • “Land” items should have Deprec. Method = “N” • will be reported under NDL “Capital Assets not being depreciated, Land” • “Land Improvements” should have Deprec Method = “S” • reported under DLI “Depreciable Capital Assets, Land Improvements” • 08xx class for Construction in Progress • Should have Deprec. Method = “N” so they will be reported under NDC “Capital Assets not being depreciated, Construction in Progress”

7. Capital Asset ReportingThings to check prior to running EISEMS • Capitalized items should all have accurate “Class” • Item amounts may be excluded or error generated if no or invalid Asset Class • Asset Class displayed on EISSCN/ITMSCN screen 1 • To check asset class, run EIS304, sorting by AC,IC • Governmental assets only are reported • Fund type = “G” • Check Fund types in EISMNT/FNDSCN

8. Capital Asset Reporting Codes and related EIS Asset Classes Categories: ND: Non-Depreciable Assets (depreciation is NOT being tracked) and amount reported is the original cost D: Depreciable Assets (depreciation IS currently being tracked) and amount reported is the original cost L: Less Accumulated Depreciation are depreciated assets and amount reported is the current total depreciation Non-Depreciable Capital Assets • NDC Capital Assets not being depreciated, Construction in Progress • 08xx Construction in Progress Asset Class • NDL Capital Assets not being depreciated, Land • 01xx Land/Land Improvements if Depreciation Method = N

9. Capital Asset Reporting Codes and related EIS Asset Classes Depreciable Capital Assets • DLI Depreciable Capital Assets, Land Improvements • 01xx Land Improvements if Depreciation Method = S • DBI Depreciable Capital Assets, Buildings and Building Improvements • 02xx Buildings/Improvements Asset Class • DFE Depreciable Capital Assets, Furniture, Fixtures and Equipment • 03xx Furniture/Fixtures/Equipment Asset Class • DVE Depreciable Capital Assets, Vehicles • 04xx Vehicles Asset Class • DIN Depreciable Capital Assets, Infrastructure • 05xx Infrastructure Asset Class • DBK Depreciable Capital Assets, Books • 06xx Books Asset Class

10. Capital Asset Reporting Codes and related EIS Asset Classes Less Accumulated Depreciation • LLI Accumulated Depreciation, Land Improvements • 01xx Land Improvements if Depreciation Method = S • LBI Accumulated Depreciation, Buildings and Building Improvements • 02xx Buildings/Improvements Asset Class • LFE Accumulated Depreciation, Furniture, Fixtures and Equipment • 03xx Furniture/Fixtures/Equipment Asset Class • LVE Accumulated Depreciation, Vehicles • 04xx Vehicles Asset Class • LIN Accumulated Depreciation, Infrastructure • 05xx Infrastructure Asset Class • LBK Accumulated Depreciation, Books • 06xx Books Asset Class

11. EIS Fiscal Year-End Closing Procedure • Finish all current year processing. Items received on or prior to June 30th (2011) should be added to EIS for FY2011. Any items received after June 30th can be added to the EIS pending file for FY2012. • If the depreciation data has been changed so that it is necessary to completely recalculate the life-to-date (LTD) depreciation for several items, you may need to run EISDEPR. Just note that running EISDEPR will affect items that have had improvements (additional ACQTRN’s) added to them causing them to lose their true depreciation history

12. EIS Fiscal Year-End Closing Procedure • Districts with a $ and Life Limit specified for the capitalization criteria may choose to run an EIS304 Brief Asset Listing to verify all items meeting the dollar and life capitalization threshold are on file as capitalized assets. • In EIS304, select non-capitalized items and choose to select only items with an original cost equal or higher than the capitalization threshold. This will produce a listing of items that currently are notcapitalized but exceed the $ threshold. Then look up tags in question to verify that the life expectancy is under the life limit threshold and therefore should not be capitalized. If you find tags that meet or exceed the life limit, please make necessary modifications.

13. Fiscal Year-End Closing Procedure • When all items have been entered, run the recommended list of reports (this includes all necessary GAAP schedules). • All recommended FYE reports are explained in the upcoming slides.

14. Fiscal Year-End Closing Procedure • EIS101 – Schedule of Fixed Assets by Source…..provides a summary of the original cost of capitalized items by their source or the fund the items were originally charged to when purchased. • Source means “the fund the items were originally charged to when purchased”. EIS101 uses the PO information from the acquisition record (ACQTRN) to identify the source fund used in purchasing the items. • Output file: EIS101.TXT • EIS102 – Schedule of Fixed Assets by Function and Class….produces a schedule of fixed assets by function and class. Can be generated by function and class, class or a summary by function and class. Creates a summary and detail report • The Book Value on the report is the Original Cost minus the Total Deprecia • Output files: EIS102S.TXT and EIS102D.TXT

15. EIS103 • Contains “changes” in capital asset balances during the current fiscal year • The EIS103 creates three reports as listed below: • The EIS103S is a summary report listing the beginning balance, acquisitions, dispositions, transfers in, transfers out, adjustments, and the ending balance in separate columns horizontally across the report. • EIS103D is a detailed schedule of changes. This report lists any individual tag numbers that may have incurred acquisitions, dispositions, transfers, or adjustments. • EIS103E is an error report. • The summary and detail reports will page break on each fund type: fiduciary, governmental, proprietary, and undefined. • The GAAP flag must be set to “Y” to be able to generate this report. • For FYE, it is recommend to generate the report 3 different ways (AC, FC & FD). • Specific entities can be included or excluded (i.e. NOGAAP)

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17. EIS GAAP Reports • Totals by Fund Type on the EIS101, EIS102, and EIS103 should match when balancing out for the fiscal year-end. • Any errors reported on the EIS103E report should be resolved prior to closing the fiscal year.

18. EIS104 • Contains changes in depreciation of fixed assets during the fiscal year • The EIS104 creates two reports as listed below: • EIS104S is a summary report listing the beginning depreciation, continuing items, acquisitions, dispositions, transfers, adjustments and ending depreciation balance in separate columns horizontally across the report. The following equation is used in determining the ending depreciation • EIS104D is a detailed schedule of changes. This report lists any individual tags numbers that may have incurred acquisitions, dispositions, transfers or adjustments • Reports will page break on each fund type: fiduciary, governmental, proprietary and undefined • The GAAP flag must be set to “Y” in order to generate a valid report. • For FYE, it is recommended to generate the report 3 different ways (AC, FC & FD) • May be used as a depreciation balancing tool with the EIS305.

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20. Suggested Non-GAAP Reports • EIS303 – Inventory Master Listing…..includes all data on file for items; VERY LARGE report – it can produce a complete listing of all items or of specified subsets (i.e. generate a report of just depreciation information for all items); don’t recommend printing out a hard copy of the report. • EIS304 – Brief Asset Listing….. a one line per item listing of all items on file or subsets; The following EIS304 reports are recommended…they include capitalized items only and Status Codes of “A, N, EH, and EN” (with the exception of the disposition report). • Brief Asset Listing by fund • Brief Asset Listing by function • Brief Asset Listing by asset class • Acquisitions for current fiscal year • Dispositions for current fiscal year

21. Suggested Non-GAAP Reports • EIS305 – Book Value (Depreciation) Report…..shows depreciation information listing original cost, salvage value, book value, % of depreciation, and last year of useful life. • The date 06/xxxx (where xxxx is FY being closed) is used for the reporting date. The following EIS305 reports are recommended…they include capitalized items only and Status Codes of “A, N, EH, and EN” (with the exception of the disposition report). • Book Value Report by function • Book Value Report by class • Depreciation for current FY dispositions by function • Depreciation for current FY dispositions by class

22. Suggested Non-GAAP Reports • EIS401 – Insurance Values Report…..lists insurable values and replacement cost information for items; insurable values listed reflect the insurance classifications assigned to the item categories in EISMNT/CATSCN; Recommended if the district maintains current replacement cost and/or insurable values on the inventory item records. • EIS801 – Audit Report…..tracks changes made to the EIS files • For FYE, select the Official Option and keep on file for the auditors used for an official audit trail

23. Fiscal Year-End Closing Procedure • After checking EIS103/EIS104, run the EISEMS program (if EIS GAAP flag is turned on) • EISEMS.SEQ file needs submitted via EMIS (period H) • Run EISCD to generate a standardized set of FYE EIS reports. For more information and a listing of the reports generated, please refer to the EISCD chapter in the EIS Reference Manual. • Make a copy of the EIS files and other appropriate files.

24. Fiscal Year-End Closing Procedure • Run EISCLS • Creates EISCLS.TXT which includes ending balances by Fund, Function and Asset Class. (These are the beginning balances for the next year) • Creates an EISDEP.TXT which is a summary report of the current year’s depreciation posted by fund. • Advances EIS last FY closed flag in EISMNT/DATSCN by one year • Adds one year’s worth of depreciation to LTD depreciation field • Updates beginning balance fields for new FY • Once EISCLS is complete, they may start entering inventory for the new fiscal year.

25. Fiscal Year-End Closing Procedure • If GAAP flag is not turned on, ITC needs to assist in helping the district start up on GAAP by running EISGAAP. • EISGAAP: run only once and at the beginning of the GAAP startup year. • Sets GAAP flag in EISMNT/DATSCN to “Y” • Creates beginning information fields for each asset (EISITM.IDX) • Generates a beginning balance report for the GAAP startup year • Once EISGAAP is complete, they may start entering inventory for the new fiscal year.

26. Not using EIS? • For districts who DO NOT use EIS for their capital assets, they will enter their capital asset information into EMISFFE (EMIS Flat File Editor). • Please refer to the “Capital Asset Reporting for Non-EIS Districts” handout for more information.

27. NOTE: If the district entered their capital asset data in EMISFFE last year, it will retain last year’s data. They can select the “DELETE ALL CAPITAL ASSETS” option at the top screen to mass delete what is currently displayed and continue on with step 3 to add capital asset data for FY2011. Or they can edit what is currently displayed… please refer to the “Modify An Existing Record” section for further details.

28. Adding Capital Assets • Click on “NEW CAPITAL ASSETS” to add a record for FY2011. • On the “Capital Assets Code” box, select a code from the drop down list. • Enter the prior year balance. You will need to reference either last year’s ending balance (FY2010) or this year’s beginning balance (FY2011) for the amount for this code • Enter total amount of additions (items acquired) during FY2011 for this asset code • Enter total amount of deductions (items disposed of) during FY2011 for this asset code • Click on “CREATE” when finished and repeat if you need to enter additional capital asset codes.

29. Modifying/Deleting Capital Assets • An “Edit” option is available to modify a record that already exists (i.e. prior year’s data). You must first select a record from the “Capital Assets List” by clicking on the ID # in order to edit it. • Click on EDIT to edit the existing record. Modifiable fields include the Capital Assets Code, Prior Balance, Additions and Deductions. Click on “Update” to complete the changes. • You also have the option to DELETE a specific record.

30. Exporting a File from EMISFFE • From the main EMISFFE menu, select “Export Data” to extract data into a flat file format • Select the fiscal year 2011 and reporting period “H – July Financial”. Make sure only the “QC Financial Data” record is checked. Then click on Export File • Save the file to your computer using either the default file name or a name of your choosing. The filename extension must be .SEQ. Once you have saved the file, you will need to use a FTP utility to transfer the file from your PC to your ITC network.

31. Questions?