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GETTING TO KNOW YOUR FIXED ASSETS/EQUIPMENT
INVENTORY
Kathy Schultz
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
CATEGORIES OF ASSETS
• Equipment • Buildings/Building improvements• Land/Land improvements• Collections • Fixtures• Library books• Intangibles– Effective FY10
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)
PURCHASING & FIXED ASSETS
BETTERMENTS• What is a betterment? – A betterment of inventoried equipment is any
modification which changes or alters a unit’s 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
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
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
equipment’s economic life• 4. the present value of the payments is greater than or equal to
90% of the equipment’s fair value– If you have questions about whether your leased
equipment should be included on your inventory, please contact Philomena McCaffrey at the Controller’s Office (784-4176) for further guidance.
• Lease purchase procedure– Coding (60-LS)
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
LOAN AGREEMENTS
• NSHE department to NSHE employee• Equipment Loan Agreement• Signature requirements• Distribution requirements
• Keep a file of all MOU’s and Loan Agreements
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)
ANNUAL PHYSICAL INVENTORY
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
SURPLUS PROPERTY• How does it work?– Surplus Property Disposal pickup request
• http://www.howler.unr.edu/bcnpurchasing/OnLineForms/SurplusForm.htm
– Procedure• Reutilization• Sales• Donation • Disposal/scrap
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
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)
ACCOUNTING
• CEPL Report– Reconciles “60” purchases• PO’s/JV’s/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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