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Maintaining Capital Assets in Accordance with GASB 34

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Maintaining Capital Assets in Accordance with GASB 34

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    1. 1 Maintaining Capital Assets in Accordance with GASB 34 Presented by: Lorraine Garland April 2006

    2. 2

    3. 3 What is GASB 34? Establishes a new reporting model for state and local government financial reports. TEA requires school districts to implement. Causes school districts to evaluate the maintenance of their fixed assets. Are they inventory or capital items? Requires the calculations of depreciation for capital assets.

    4. 4 Purpose To provide more relevant information that will result in greater accountability by state and local governments. Enables users of these reports to make more informed economic, social, and political decisions.

    5. 5 What is Your Role? You are responsible for accounting for both current and non-current assets. You need to track data such as: What the item is Date of purchase Purchase price Life expectancy Location Inventory number and/or bar code Fund from which it was purchased

    6. 6 What is Your Role? Tracking the original cost basis and how and when it was acquired. Purchases Lease-Purchase Construction Gifts

    7. 7 What is a Capital Asset? Unit cost is $5,000 or greater. Useful life is estimated at more than one year. Recorded under object code 66XX, excluding 6660 (Library books and media).

    8. 8 Where Do I Need to Start? Capital outlay report. RSCCC – FIN1200-Capital Outlay Expenditure Report. iTCCS – JFN0235-Capital Outlay Expenditures by Org; or JFN0365-Capital Outlay Expenditures. Last Auditor’s report. Auditor’s detail for assets indicated.

    9. 9 Auditor’s Report

    10. 10 Auditor’s Report

    11. 11 What Next? Check with your auditors: What convention (FM/FY) will be used. What recovery periods of property class. Dates of service vs. date acquired? Do you have “unallocated” items that need to be depreciated? Who assigns the “Salvage Value”?

    12. 12 Set Up process

    13. 13 Tables District Options – district defaults Fiscal Year Book Type Catalog Status Code Insurance Code Gain Code Condition Code Property Class

    14. 14 Record Types Inventory – item information Transactions – what budget code where the item was purchased. Depreciation Distribution – percent per function of how the item is used. Book – how depreciation will be calculated.

    15. 15 Property Classes User defined. Can be capital outlay code (1510, 1520, 1531,1539, etc) or can be (land, buildings, vehicles, furniture and equip, etc). Land Calculation method ND- no depreciation Buildings and Improvement Furniture and Equipment Construction in Progress

    16. 16 Property Class Info Property Class Code Description Calculation Methods: ND – No Depreciation (land) SL – Straight Line (property classes) Conventions: HY – Half Year FM – Full Month Recovery Period

    17. 17 Book Record This record brings together all information pertaining to the item so the system can depreciate based on the parameters set by the district for each item. Salvage value should be entered for each item to be depreciated. Unallocated or Allocated – defaults “N” but districts may have some of these items.

    18. 18 Main Reports Auditors Analysis Depreciation Schedule Depreciation Distribution Report Audit Lists

    19. 19 Upload Assets RSCCC – Merge Asset Management Text File (handout) iTCCS – JAM0175-Asset management Inventory Mass Update (handout)

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