GETTING TO KNOW YOUR FIXED ASSETS/EQUIPMENT INVENTORY

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GETTING TO KNOW YOUR FIXED ASSETS/EQUIPMENT
INVENTORY

• Kathy Schultz

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PURCHASING FIXED ASSETS

• Request for Purchase (requisition)
• Defining Fixed Assets
• Unit cost of 5,000.00 or more (effective 7/1/07)
• Complete in itself
• Does not lose its identity even though it may
  become a component part of another item when
  placed in use
• Life expectancy of 1 year or more
• Special items regardless of cost
• revolvers, shotguns, pyrotechnic devices,
  vehicles

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CATEGORIES OF ASSETS

• Equipment
• Buildings/Building improvements
• Land/Land improvements
• Collections
• Fixtures
• Library books
• Intangibles
• Effective FY10

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PURCHASING FIXED ASSETS

• What makes up the cost?
• Shipping/installation/shipping insurance
• No
• maintenance agreements
• training expenses
• supplies
• Funds
• State/grant/other (asset type)
• NOTE screen
• Coding (60 vrs 30)

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PURCHASING FIXED ASSETS

• Why do we need to give it an asset tag?
• Responsibility
• Tracking/indentifying
• Missing tags
• When do we book an asset (in-service date)?
• Payment Voucher (PV) date (equipment valued at
  less than 50,000)
• In-service date determined through direct
  contact and confirmation with the user department
  (equipment with a total cost of 50,000 )

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BETTERMENTS

• What is a betterment?
• A betterment of inventoried equipment is any
  modification which changes or alters a units
  original function/design and certain major
  repairs.  Contact BCN Purchasing to determine if
  a repair is deemed major.  The depreciation
  schedule and the useful life may need to be
  adjusted.  
• Betterment versus repair
• Betterment threshold is 5,000.00
• Referencing asset tag number
• Numbering on inventory list
• x.xxxxxxA

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FABRICATIONS

• What is a fabrication?
• A fabrication is a piece of equipment that is
  being constructed at the University by University
  personnel.  Generally, each part of a fabrication
  would not be large enough (over 5,000) to be
  capitalized and would not function as a separate
  piece of equipment. There are exceptions, as in
  lasers, where the parts that make up the finished
  piece of equipment are over 5,000 but these
  parts must meet the unable to function alone
  criterion.  If a piece of a fabrication can
  function on its own, and is over 5,000, it is a
  piece of equipment and must be tagged
  separately.  A fabrication must, when complete,
  be 5,000 or over in value. 
• Fabrication procedure
• Paperwork
• Coding
• Life of fabrication
• Ending fabrication

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LEASE PURCHASE

• What is a lease purchase?
• Leased equipment can be included on the inventory
  if it meets one of the following accounting
  rules
• 1. it transfers ownership
• 2. there is a bargain purchase option
• 3. the term of the lease is greater than or equal
  to 75 of the equipments economic life
• 4. the present value of the payments is greater
  than or equal to 90 of the equipments fair
  value
• If you have questions about whether your leased
  equipment should be included on your inventory,
  please contact Philomena McCaffrey at the
  Controllers Office (784-4176) for further
  guidance.
• Lease purchase procedure
• Coding (60-LS)

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LOAN AGREEMENTS

• Type of Loans
• NSHE institution to outside entity
• NSHE institution to NSHE institution
• NSHE department to NSHE department
• Memorandum of Understanding (MOU)
• Signature requirements
• Distribution requirements

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LOAN AGREEMENTS

• NSHE department to NSHE employee
• Equipment Loan Agreement
• Signature requirements
• Distribution requirements
• Keep a file of all MOUs and Loan Agreements
  

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ANNUAL PHYSICAL INVENTORY

• Why is this important?
• Board of Regents Policy
• Audit exceptions
• Responsibility
• Procedure
• Verify each asset
• Pencil in notes on report
• Assets below 5,000.00
• Sensitive items (guns, vehicles, artwork)

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ANNUAL PHYSICAL INVENTORY

• Report any changes
• Room number
• Responsible person
• Corrections to asset record
• model, serial number, description
• Deletions
• Surplus
• Scrap/parted out
• Obsolete
• Must be signed by verifier and department chair

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HELPFUL HINTS

• Make changes during the course of the year
• Property Transfer form
• E-mail/memo
• Surplus Property Disposal form
• List of assets by location code can be downloaded
  from CAIS

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SURPLUS PROPERTY

• How does it work?
• Surplus Property Disposal pickup request
• http//www.howler.unr.edu/bcnpurchasing/OnLineForm
  s/SurplusForm.htm
• Procedure
• Reutilization
• Sales
• Donation
  
• Disposal/scrap
  

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SENSITIVE EQUIPMENT

• Effective March 1, 2008, the following sensitive
  items or items subject to theft must be
  separately tracked by the responsible department
  if the items have a value in excess of 2000 and
  less than 5000
• 1. Bicycles
• 2. Cameras digital, film, video
• 3. Cell phones, two-way radios, individual
  communication devices
• 4. Computers (costing less than 5,000) desktop,
  servers, laptop, PDAs (regardless of acquisition
  cost)
• 5. Copy, fax and multifunctional machines
• 6. Lawn mowers
• 7. Microscopes and telescopes
• 8. Music systems and components
• 9. Musical instruments
• 10. Printers
• 11. Scales and balances
• 12. Televisions
• 13. Video projectors, recorders, monitors

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SENSITIVE EQUIPMENT

• Institutions that wish to inventory additional
  items may do so at their discretion
• Kept by individual departments
• Develop a tracking system
• Object/subject codes 30-SE
• Auditors will ask for sensitive equipment list
• Description including model, serial number
• Responsible person
• Transaction number and date
• Asset dollar amount
• Disposition (if disposed)

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ACCOUNTING

• CEPL Report
• Reconciles 60 purchases
• POs/JVs/P-Card
• Moving asset expenses
• Within the current fiscal year
• Outside the current fiscal year
• Selling an asset
• Reimbursement to account

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Questions???????????????