Capital Asset Management Training

Office of the Associate Vice President for Finance

The Office of the Comptroller

Capital Asset Management

November, 2008

Updated July 2009



Agenda Policies – 9 slides, wordy Phases and Players 12 slide

Circular A110 Who to call – 1 slide


Capital Asset ManagementGWU Policies

Where can they be found?http://my.gwu.edu/mod/upolicy/index.cfm

Under the Policies tab, Finance, Accounting and Budgeting, Fixed Assets Management

What are the policies Fixed Asset Management

Capital Asset Management Policy Furniture and Equipment Capitalization Threshold Surplus University Property Electronic Equipment Recycling Policy (Public Safety

and Risk Management)



The Capital Asset Management Policy Consistent with the University’s

Procurement Card (P-Card) Policy Purchase of any item with a unit cost of $2,500 or greater

must be ordered through the Procurement Department on a Purchase Order and recorded through the Enterprise Accounting System (EAS).

Since Capital Assets are defined as items having a value of $2,500 or greater, all Capital Assets must be purchased through the Procurement Department.



FURNITURE AND EQUIPMENT CAPITALIZATION THRESHOLD

A capital asset is defined as an article or a system of

Non-expendable, tangible property Having a useful life of more than one year A per-unit value of $2,500 Is used in the operations of the University (i.e.,

the item is not purchased as an investment or held for resale).



FURNITURE AND EQUIPMENT CAPITALIZATION THRESHOLD (Continued)

The cost of an asset includes:

the cost of the item and all costs necessary to make the asset

available for use.

The subsequent purchase of additional components that provide new functionality to a capital asset should be added to the cost of the asset.



FURNITURE AND EQUIPMENT CAPITALIZATION THRESHOLD (Continued)

Replacement of worn out parts, such as light bulbs or filters, are

considered to be expendable supplies (are expected to be replaced periodically)

not add to the cost of the capital asset



Surplus University Property

What is it

property that wears out, becomes obsolete or is no longer needed in operations,



Surplus Property Policy (Continued) What do we do (continued)

The following types of dispositions of surplus property must be handled by Materials Management.

Sales of surplus property with a unit value greater than $500

Sale of surplus property that has a registered title (e.g. automobiles)

Donations of surplus property



Surplus Property Policy (Continued) CONVERSELY

Department Heads may dispose directly of surplus property that does not meet the requirements set forth above provided that the following requirements are met: Transfers to other GW departments are reported to the

Office of the Comptroller (Change in Fixed Asset Status Form)

Property may be sold to third parties, including employees for personal use provided the fair market value of the property does not exceed $500.00. Sales must be made at fair market value.

Release and Waiver Form, Bill of Sale Form, and Change in Fixed Asset Status Form approved by the appropriate department manager. Completed forms must be sent to Materials Management with a copy to Capital and Investing Reporting.



Surplus property Policy (Continued) Property Acquired through Sponsored Projects

Prior to disposing of surplus property purchased with sponsored project funds the department head first must secure approval for the proposed disposition by completing the Change in Fixed Asset Status Form and submitting it to the Office of Vice President for Research (OVPR).



The Four Phases of Capital Asset Mgt

Acquisition Movement Inventory Disposition

Schools and Departments x x x x

Procurement x x

Facilities x x

Office of the Comptroller x x x x


Acquisitions

Department

identifies

need for asset

Department prepares

purchase requisition

Department

selects

vendor?

No

Department

sends

supporting

document to

purchasing

Yes

Procurement prepares

purchase order

Asset is

received

Department

receives

goods (in

Oracle/EAS)

Invoice is received

AP performs

3-way match of invoice,

purchase order,

and receipt information

AP pays invoice


Acquisitions – Gifts or Loans

Gift or Loan

received

Department notifies

Office of the Comptroller

Department notifies


Grant related?

Department notifies

OCRO

No Yes


Acquisitions –The CIR Team’s Responsibilities

Provide direct administrative support to the operating department regarding the control and maintenance of Capital Assets. Tagging assets Record keeping - FAS Ledger reconciliations – GL and GM vs. FAS

All Capital Asset records are maintained in accordance with OMB Circular A-110, FAR part 45 and GAAP.


OMB Circular A-110

Description of the asset Manufacturer’s Serial No. Model Number Award Number- PTA Title Vesting Information Acquisition Date % of Federal Participation Location of the asset Condition of the asset Unit cost Disposition information

Federally owned equipment shall be identified as such

Physical inventory must take place every 2 years.

Controls to adequately safeguard asset from loss, damage or theft.

Adequate maintenance procedures should be in place to keep equipment in good condition

Highest possible sale procedures


Movement

Department identifies asset to be moved to a new location

Department head

authorizes form

Department authorizes form

Grant related

asset?OCRO authorizes form

No Yes

Department completes a Change in Fixed Asset Status Form

Office of the Comptroller updates database for new location

Office of the Comptroller verifies asset in new location

Office of the Comptroller verifies asset to be moved

Department sends form to Office of the ComptrollerFacilities

moves asset

Department completes facilities FIXit request


Movement of Assets

The inventory process can only be successful if the database used to track assets is accurate.

The responsibility of maintaining the database’s accuracy falls on the CIR team

The CIR team relies on the individual schools, departments and asset custodians to communicate any changes to the asset’s location or usefulness.


Inventories

Operating Departments Responsible for maintaining the asset’s working condition Responsible for maintaining an accurate location listing for

all their assets

Capital and Investing Reporting Responsible for validating the existence, location and

condition of each Capital Asset Sponsored project assets are inventoried pursuant to OMB

Circular A-110 guidelines (every 2 years) The ledgers are reconciled to the inventory observed.


Disposals

Department decides

asset available for disposal,

sale, donation, or transfer

Department completes

Change in Fixed Assets Form

Is the asset

grant related?

Department head

authorizes form

No

OCRO also

authorizes

form

Yes

Department contacts ISS

ISS ensures confidential programs / files are erased

Department forwards form to


and Procurement

Facilities

removes asset

Department completes

facilities FIXit Request

Is the asset

a computer

or electronic?

Yes

No


Disposal Special Rules

Special rules apply to assets under sponsored project funding. Please check the provisions of your award and with OCRO

If an Asset is Sold Material Management and CIR should be contacted to provide

estimated market value and the current Net Book Value. If the value is under $500, the department can handle the sale

directly. If the value is over $500, the Materials Management

department is required to handle the sale. Required Paperwork: Change in Fixed Asset Status form,

Release of Waiver form and Bill of Sale

If Donated The same steps as a sale should be followed


Disposal- Internal Transfers

Internal Transfers The operating department completes a Change in Fixed

Asset Status Form

The form is approved by the department head The form is forwarded to the Capital and Investing

Reporting Team in the Office of the Comptroller The asset is transferred to the receiving department Capital and Investing Reporting will contact receiving

department to confirm receipt and may ask to schedule time to visually inspect the asset in its new location.

The department should keep a copy of all documents


Who to call in Fixed Assets

For asset recognition amd For asset tagging

Ellen Thompson 703-726-4216 [email protected] For inventory scheduling and For asset movement, transfer or disposal

Patrick Gerhold 703-726-4195 [email protected] For capital lease information

Jeff Jones 703-726-4212 [email protected] For construction or capital project relate questions

Chris D’Alessio 703-726-4110 [email protected] For all other Questions

Dan MacGregor 703-726-4115 [email protected]

Documents

Capital Asset Management Training