Capital Asset Management

1. Capital Asset Management November 14, 2006 Today’s Presenters: Shelley Pierce, Senior Accountant San Joaquin Delta College Anna Jensen, Director of Auxiliary Accounting, Capital Asset Management, Accounts Receivable, and Student Loan Administration Indiana University Theresa Cain, CAMS Data Manager Capital Asset Management System Indiana University

2. Presentation Outline • Introduction • CAMS SME Members • Kuali Roles & Responsibilities • CAMS System Overview • CAMS System Functions • Key Accomplishments • Future Plans

3. CAMS SME Members • San Joaquin Delta College, Lead SME, Shelley Pierce • Indiana University, SME, Anna Jensen • Indiana University, Business Analyst, Theresa Cain • University of Arizona - Alan Blumberg, Diane Dobbs, John Jennings, Mary Vega, Doug Hilyard, Ned Tomsheck, Danette Golis-Variano and Tracey Purcell • Cornell University – Nancy Abbott, Steven Myer • University of Hawaii – Gilbert Kuroda, Kevin Hanaoka, Neil Kumasaka, Suzanne Izumi, and Phyllis Nicol • Michigan State – Boyd Shumaker, Beverley Garrison, Keven Lewis, Glenn DeYoung • University of California, Davis – Delanda Buchanan • University of California, Irvine – Helen Wessel, Bent Nielsen • University of California, Santa Barbara – Vaughn Boyle

4. Kuali Roles & Responsibilities • Training and Development of SME members • Develop and review detailed specifications • GASB/GAAP Compliance • User Testing • Implement Asset Management System based on the current system at Indiana University. Develop flexible system to manage data for all institutions regardless of size, scope • Identify, develop, understand and communicate functionality of current system • Communicate with group members, development team and Functional Council

5. CAMS System Overview • Tracks and maintain capital and non-capital assets • Supports depreciation, tagging and inventory tracking • Provides Non-Moveable Asset Tracking • Facilitates management of internal projects/processes: fabrications, location maintenance, asset security, component assets, retirements, asset transfers and equipment loan returns • Maintenance & Security • Maintains query based reporting tools • Standard reconciliation reports are available • Flexibility is “built-in” to the system (user access, searchable data elements, field length, notes, etc.) • Data Flow-Procurement-Financial-Moveable-CAB-CAMS. System provides financial transaction feed from GL to CAB.

6. CAMS System Functions • Automation of journal entries • Ability to calculate depreciation • Standard reporting and reconciliation tools • Multiple user access • Ability to handle specialized government reporting requirements • Provide information for F&A calculations • Inventory tracking and reporting • GASB, State and Institutional policy reporting and compliance • Fixed Asset system accounting system integration • Allocate building costs • Data Integrity • Web Access by Department Note: Based on analysis of processes of participating institutions

7. Key Accomplishments to Date • Completed review on “13” modules/CAMS system • Developed detailed documentation related to current business rules, workflow and routing actions, permissions, and database objects • Identified “gaps” between CAMS and institution requirements • Ranked IU enhancements • Developed “wish list” of enhancements for future consideration

8. Future Plans/Looking Ahead • “Hands-on Training” using sample data • Develop final versions of specification documents • CAB (Capital Asset Builder) research and development • User Testing • Training and Development – remaining modules of CAMS

9. Capital Asset Management at Indiana University • Structure for Capital Asset Management • University Capital Asset Office • Campus Capital Asset Offices • Departments • Indiana University Terms • Fiscal Officers • Routing

10. Asset Activity at Indiana University For Year Ending June 30, 2006 Capital Assets • Total net capital assets $1,839,661(in thousands of dollars) • Count of moveable additions 1,399 Capital Asset Management Staff • Plant Fund Accountant • Asset Creator • Inventory/Tagging Manager • Data Manager

11. Indiana University Roles and Responsibilities • Compliance Services • Consulting Services • System Support and Training Services

12. CAMS System History • The Capital Asset Builder was implemented in March of 1993 • The Capital Asset Management system was deployed in October 1994

13. Major Components of CAMS • Capital Asset Builder • Pre-Asset Tagging • Non-Moveable Additions • Documents and Maintenance Screens • Inventory Process • Depreciation • Reconciliation Reports

14. IU Asset Categories • Capital Moveable • Equipment • Fabrications • Lease Purchases • Capital Non-moveable • Art and Museum • Bonds • Buildings & Building Improvements • Infrastructure • Land • Leasehold Improvements • Library books • Non Capital

15. How the assets are created at IU Capital Asset Builder (CAB) • Equipment • Fabrications assets are created by the fabrication document. Invoices modify the existing asset. • Capital Lease assets are created on a Financial Document • Art and Museum Add Asset Document & Add Payment Document • Bonds • Buildings & Building Improvements • Infrastructure • Land • Leasehold Improvements • Library books Add Asset Document • Non-capital assets are created by departments • Capital Equipment Gifts

16. Additions Processed in CAB • Moveable additions are Processed in the Capital Asset Builder. • Process: • Requisition issued in the Electronic Processing and Invoicing Center (EPIC). Capital object code is assigned. • Purchase Order is approved • Payment Request is issued and approved • Payment hits the General Ledger • Batch process loads data into CAB

17. Payment Request (PREQ)

18. EPIC CAMS Document

19. Capital Asset Builder (CAB) Additions are Created by the University Capital Asset Office • Invoice Line Items • Moveable Equipment purchased on PO • Art and Museum Items • Fabrications

20. Invoice Line Item Screen

21. Additional Charges AllocatedNext insert line 2 from pending

22. Inserted from PendingNext add line 8 to line 1

23. line 8 has been added to line 1Next Create Asset

24. Create View Asset Screen

25. New Version Invoice Line Item Processing Trade-ins • Trade-ins are allocated in CAB by pressing the “allocate” button. • The allocate routine will first allocate any additional charges (freight); then allocate the trade-in allowance.

26. Allocate Trade-in • Once the Freight and Shipping and Handling are allocated a dialog box will be presented with the following message:

27. EPIC CAMS Document

28. EPIC CAMS Document

29. Capital Asset Builder (CAB) GL Transactions • Capital Leases • Account Changes • Object Code Corrections • Refunds (cash receipt) • Procurement Card Purchases

30. General Ledger Transactions

31. General Error Correction

32. Modify an Asset

33. Enter Pending Asset Information

34. Create View Asset Screen

35. Document Group Selection

36. Accuracy of Data • Valid Values • Asset Type Code • Condition • Inventory status • System Edits • Active Account • Business Rules • Non-capital asset inventory status = “N”. • Reconciliation Reports

37. Add Asset Document Non-moveable Additions Gifts, Found, and Transfers-in Non-capital Assets

38. Asset Retirement

39. Asset Transfer Capital and Non-capital assets can be transferred

40. Equipment Loan/Return Capital and Non-capital assets can be loaned on the Equipment Loan Return Document

41. Fabrication Moveable Equipment Construction In Progress Control assets

42. CAMS Maintenance

43. Maintenance Screens & Security • Maintenance Screens do have restrictions • University Capital Asset Office • Campus Capital Asset Offices • Organizations

44. Capital Asset Maintenance

45. Capital Asset Lookup

46. Location Maintenance

47. Pre-asset Tagging

48. Pre-asset Tagging (tagging) screen

49. Physical Inventory • Intermec Antares Trakkers scan equipment. • Filecopy utility is used to extract file and copy to PC. • File Uploaded to FIS • Bar-code Error Document • Inventory Reconciliation Report

50. Depreciation • Depreciation expense is calculated from a stored procedure that updates the asset database on a monthly basis. The Straight Line method is the basis for the calculation, along with a method for Salvage Value. Federally owned payments are excluded from the depreciation calculation. In addition, no Deprecation will be taken on Art and Museum Objects, Land, or Leasehold Equities. Each asset is depreciated from the asset create date, and the assets useful life assigned to the asset type code. Non-Movable assets use a ½ year convention for assigning the create date. The Deprecation entries Debit Object Code 51XX, Depreciation Expense, and Credit the appropriate Accumulated Depreciation Object Code based on the Object Code Sub Types in the Asset Object Code Table.