Banner Fixed Assets Policies and Procedures

1. Banner Fixed AssetsPolicies and Procedures How they affect you. Robette Edwards, Fixed Assets Supervisor Fixed Assets Section of Accounting Services

2. What are we talking about? Fixed Assets policies and procedures that directly affect • your work, • your budget, • and your responsibility for protection of UNCG assets as custodian department. Fixed Assets Section of Accounting Services

3. Why are Fixed Assets important? = Assets Budget Money Fixed Assets Section of Accounting Services

4. We know that with State Budgets.... Money doesn’t grow on trees ! Fixed Assets Section of Accounting Services

5. What does the Fixed Assets Section of Accounting Services do? We are responsible for: • Determining new assets and bar-code tagging for identification • performing annual inventory audits • maintenance of the University Fixed Assets accounting records that document equipment and properties acquired by the school and are part of the annual University Financial Statements.  A summary of asset values are recorded in the General Ledger while supporting detail is maintained within Fixed Assets. Triggered by invoicing and receiving transactions, asset records are created automatically based on • the expenditure account used by the purchasing organization and • the $5000.00 threshold for capitalization. Fixed Assets Section of Accounting Services

6. What does the Fixed Assets Section of Accounting Services do? An accounting feed automaticallycapitalizes these assets to the Banner Finance general ledger based upon meeting the cost threshold and the expenditureaccount code used. Therefore, University organizations are required to use the appropriate Banner expenditure account codes when the acquisition cost is greater than or equal to $5,000. The capital account code you choose will create a capitalized asset record or several non-capitalized o-tag records to be joined by Fixed Assets for the complete asset over $5,000. This o-tag identifies assets to be added to the Fixed Assets Module of the Finance database.  The Fixed Assets Process is audited annually by the State Auditors, along with Financial Accounting. Fixed Assets Section of Accounting Services

7. Five Areas of Importance • New Assets • Purchases • Tagging • Annual Inventory • Forms • Our Website • Our Staff & Location Fixed Assets Section of Accounting Services

8. New Asset Purchases Fixed Assets Section of Accounting Services

9. What are Fixed Assets? DEFINITION Capitalized fixed assets (Property, Plant and Equipment) include 3 types of assets used in operations and that have a normal life expectancy of more than two years: • 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 Fixed Assets Section of Accounting Services

10. Fixed Asset Threshold November 2004 - University policy threshold changed to $5,000 ONLY The recordedcostof each capitalized fixed asset in the General Ledger includes: InstallationFees Asset Cost + (tax) Delivery Fees Legal Fees + + + $300.00 $500.00 $1300.00 $3995.00 IF the Total Cost≥ $5,000appropriate purchasing expenditure codes are required *All/Any of these must be combined to equal the NC State threshold of $5,000 Fixed Assets Section of Accounting Services

11. Fixed Assets Responsibility • Allmoveable capitalized assetsare physically inventoried by barcode scanning each fiscal year (July-June) by Fixed Assets staff after pre-inventory is completed by the departments. • Each department head is responsible for safeguarding all assets purchased by his or her department regardless of cost. • Physical assets, their cost and depreciation areaudited annually bythe State Auditors • These records are used by the University to report Fixed Assets on theAnnual FinancialStatements Fixed Assets Section of Accounting Services

12. Fixed Assets Section of Accounting Services

13. Fixed Assets Section of Accounting Services

14. Banner Fixed Asset Account Codes Fixed Asset account codes all begin with 203### WARNING!!- Some EDP non-asset equipment account codes for items underthe $5,000 threshold are in the Property, Plant and Equipment Pool with account titles and codes similar to the capitalized account needed for Fixed Assets over $5,000. This crossover could be hazardous to your budget!! Title Changes have been made to add the word Capital after all capitalized account titles for equipment over $5000.00. WARNING!!- In Banner, journal entries will be made by Fixed Assets staff to correct assets purchased from the incorrect accounts for: • items purchased with capital accounts incorrectly or • items that should have been purchased with capital accounts. Fixed Assets Section of Accounting Services

15. Things to remember for purchases • Use EA for ‘Each’ as the Unit of Measure when purchasing assets $11,734.00 $5867.00 each Fixed Assets Section of Accounting Services

16. 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 $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 Accounting Services

17. 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 • Optional Software 4,499.00 1 EA 203730 • Shipping/Handling 100.00 1 EA 203430 • Installation 800.00 1 EA 203430 • Extended Warranty 2000.00 1 EA 236010 TOTAL ASSET COST $40,774.93 REQUISITION TOTAL $47,273.93 Fixed Assets Section of Accounting Services

18. Things to remember when purchasing Fixed Assets : 3. Any item purchased to be permanentlyadded 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 Accounting Services

19. 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 Accounting Services

20. Things to remember when purchasing Fixed Assets: • Do not include in the asset cost • Do not use asset capital expenditure account code Extended Warranties MaintenanceAgreements Service Contracts • Search by %Main% on FTVACCT: Use accounts 236010-237210 for Maintenance Contracts • Search by %Support% on FTVACCT: Use accounts 221060-221110 for Support Services. Fixed Assets Section of Accounting Services

21. Fixed Asset Example: Copier Fixed Assets Section of Accounting Services

22. New Asset Tagging Fixed Assets Section of Accounting Services

23. Vera Tags a New Asset Fixed Assets Section of Accounting Services

24. Policy for New Assets Barcode tags are required for these new assets with a total cost of $5000 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 Accounting Services

25. Policy for New Assets PCard Purchases • PCard purchases of capital assets are excluded by the new Fixed Asset threshold of $5000.00 and greater. • PCard purchase thresholds are from $1,500.00 to $2,500.00 and should therefore exclude the use of any capital asset account. New! Fixed Assets Section of Accounting Services

26. Policy for New Assets • Most Grant purchases that meet 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 Fixed Assets Section of Accounting Services

27. Policy for New Assets NO new asset should leave campus before being tagged! • Only Fixed Assets staff are authorized to apply or remove barcode tags on equipment. Fixed Assets Section of Accounting Services

28. Annual Inventory Fixed Assets Section of Accounting Services

29. Barbara scans inventory Fixed Assets Section of Accounting Services

30. Department HeadDuties • 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)..” -Policy 7.8 - Fixed Assets “… 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 All Fixed Assets Forms must be signed by the department head. Fixed Assets Section of Accounting Services

31. 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. • Request FA-16 forms from employees. • Send updates and all forms to Fixed Assets. • Call for an appointment. Fixed Assets Section of Accounting Services

32. 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 FA-14 Transfer form • A properly completed FA-14 Transfer form is required to transfer such an asset to the new location. This form is also the designee’s responsibility of the current department. • The designee must be responsible for arranging to accompany the inventory auditor for scanning the asset in its new location. Fixed Assets Section of Accounting Services

33. 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. Fixed Assets Section of Accounting Services

34. Annual Inventory: Designee Duties On the day of scheduled inventory appointment: • Escort your Inventory Auditor 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 Inventory Auditor 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 Inventory Auditor to each located missing asset. Fixed Assets Section of Accounting Services

35. 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 scan it, we are required to code it as missing. • All assets not scanned at the close of your inventory will be reported to the appropriate Vice-Chancellor or Provost on a monthly basis. Fixed Assets Section of Accounting Services

36. Forms Fixed Assets Section of Accounting Services

37. Completing Forms Properly • AllFixed 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 beused in place of older ones. (Adobe Reader 7.0 or higher). • Copiesof all FA forms should be kept by the custodian department. • Equipment checkout list is available. Forms should always be submitted to Fixed Assets as soon as changes in the asset’s inventory status occur! Fixed Assets Section of Accounting Services

38. Completing Proper Forms FA-13 Disposal Forms for surplus now require that the department send: • Theoriginalto Fixed Assets for removal of assets from your inventory records. • A copy to Warehouse & Surplus Services for pick-up of surplus equipment. We are two separate departments. Fixed Assets Section of Accounting Services

39. Completing Proper Forms FA-13 Disposal Forms must also be submitted to Fixed Assets for assets that are: • Traded-In with authorization from Purchasing • Exchanged for different assets or returnedto the vendor after tagging • Junked ( i.e. Used for parts) • Destroyedby fire, water damage or accident. Fixed Assets Section of Accounting Services

40. Completing Proper Forms FA-14 Transfer Forms • Must be signed by both department heads • Should be the responsibility of current department. • Can be used to change location only FA-16 Agreement for Equipment Located Off-Campus • Requires removal and expected return dates • Department head and user signatures required Fixed Assets Section of Accounting Services

41. Completing Proper Forms Stolen assets • a copyof the UNCG or other police report with the asset tag and serial numbers should be sent to the Fixed Assets Office for removal of the asset from your inventory. No other form is required. Fixed Assets Section of Accounting Services

42. What All This Means • Custodian departments are responsible for their UNCG 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 missingassets and help maintain inventory accuracy. Fixed Assets Section of Accounting Services

43. Our Website Fixed Assets Section of Accounting Services

44. Using our Website Fixed Assets Section of Accounting Services

45. Fixed Assets Website • http://fsv.uncg.edu/fa.html • NEW!!! • New data enterable forms with Banner format for Off-Campus, Transfer and Disposal. (Save a copy to your desk top!) • Staff info • NEW ADDITIONS ADDED SOON! • Lists of helpful data • Training PowerPoint Presentation • & inventory instructions • UPDATED INFORMATION ON FINANCE WEBSITE • Policies & Procedures for Fixed Assets Fixed Assets Section of Accounting Services

46. Our Location Fixed Assets Section of Accounting Services

47. Our Staff & Location Fixed Assets Office Location 120 &121 Campus Supply Store Building (On Forest Ave., Behind McNutt) UNCG Campus Greensboro, NC 27402-6170 FAX Number: (336) 256-1259 Fixed Assets Staff Robette J. Edwards • Financial Accountant/Fixed Assets Supervisor • (336) 334-5938 • rjedward@uncg.edu Barbara Lathrop • Fixed Assets Technician/Inventory Auditor • (336) 334-5904 • bblathro@uncg.edu Vera Ledbetter • Fixed Assets Clerk/Inventory Auditor (336) 334-5905 • vdledbet@uncg.edu Fixed Assets Section of Accounting Services

48. Let Us Help You! Fixed Assets Section of Accounting Services

49. Ways We Can Help You! Please call us! Fixed Assets can: • Supply asset cost information for reorder and insurance purposes or comparison. • Provide asset reports by building or location in preparation of departmental moves. • Supply info on stolen assets for police identification. • Check info on similar assets on campus. • Supply more detailed information on missing or other assets by providing invoice copies. • Provide identification of custodian for an asset. • Provide blank tags for assets under the cost thresholds. Fixed Assets Section of Accounting Services

50. Next Steps • Please read and follow the Inventory Instructions and Fixed Assets Policy/Procedures. • Checkour website for answers to your questions. • Callus. 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! Fixed Assets Section of Accounting Services