Presentation on theme: "Property Management PAST PRESENT FUTURE. How does Property Management affect my job? Colorado State University is accountable to taxpayers, sponsors and."— Presentation transcript:
How does Property Management affect my job? Colorado State University is accountable to taxpayers, sponsors and other governmental agencys for $186,749,034.26 in Capital Equipment Assets. A little known fact: The Facilities and Administration rate (indirect cost) is charged on purchases for research projects and brings crucial external funds to our campus. The depreciation from capital assets is used in the Facilities and Administration rate which contributes to the departments 16 fund accounts.
Everyone Is! The Property Management System involves anyone who touches a piece of equipment. Asset Users Responsible Party Department Property Contact (DPC) Department Heads (Accountable) Purchasing, Central Receiving, Property Management Office, Sponsored Programs (Oversight)
Equipment, buildings, land, land improvements, leasehold investments and Library books, art and collections Capital Equipment: Costs over $5000.00 (Exception: the contract for a sponsored research project, may require a different threshold cost for equipment tracking) Will be used more than one year Not a part of a building Not Expendable Depreciation: a systematic and rational allocation of costs over the life of a capital asset.
Cost of a capital asset include: Purchase price Shipping/Transportation costs Installation costs Training support for up to a year Discounts Cost not to include: Extended Warranty Support Agreements Software for under $100,000 Clustering: Sometimes an asset has several components. To determine if these component costs should be totaled together ask these two questions: Will it be used as one unit? Will it be disposed as one unit?
The equipment may reside on the CSU campus but that does not mean it is owned by CSU. CSU property is bought with many types of funds: State Tax Dollars Federal Tax Dollars Private Sponsorship Donations/Gifts The EACR must be approved by the Property Management Department to ensure title belongs to CSU and it can be disposed of by CSU. Property Management approval is critical before equipment is moved to surplus property to protect your department.
How do I get rid of this old equipment? (The EACR Process) EACR is filled out by department (Location Changes have another form) Authorization Property Management Department First Pick up Warehousing Website for forms: http://busfin.colostate.edu/prp.aspx
Why Are University Departments Charged a Service Fee? Surplus Property keeps CSU out of the News! Surplus Property is required by the State of Colorado and our Federal Sponsors. Surplus Property is currently self -funded. Your department only pays when the service is used. Another option would be to charge all departments a flat rate on their budget every year to cover the cost of Surplus Property. (Not a popular option). Specially trained in disposal laws and issues such as EPA, OSHA, Biohazard, Electrical Waste and Identity Theft. Surplus Property reallocates still useable items from one area of the University to other areas that have a need for them and provides an outlet for recycling or disposal of property that no longer has a use, with a greater awareness of future environmental impact.
The taxpayers care, the State/Federal lawmakers care and Colorado State University cares! CSU is charged with managing an asset through its entire life, purchase through disposal. Until the asset leaves our campus, we are accountable for the assets location and how the condition is maintained.
Sciquest and beyond… When setting up a requisition in Sciquest, please check for any items that may be considered Capital Equipment. Capital Equipment is defined as items that have an individual acquisition cost that is greater than $5,000.00 or other threshold amounts as set by contract, agreement, or grant (53 funds). They have a useful life of more than a year, are not expendable and are not a part of a building. Items under $5,000.00 that will be combined together, to make up one piece of equipment totaling more than $5,000.00, will also be considered Capital Equipment.
Unit of Measure When purchasing Capital Equipment as individual pieces, use EA as the Unit of Measure. If LOT is used, that is usually an indication that several pieces are being purchased and none of them are Capital Equipment. If you are combining items to make up one piece of capital equipment, please provide what items will be combined so we can correctly identify what item or items will need to be decaled. You can put this information in the notes section. Ask yourself, will it be disposed of separately or together? Also, please provide a brief description in the description section. It will help us identify what it is you are purchasing.
Header versus Line funding Header versus Line funding The general rule is Capital Equipment should use line funding. If you have a requisition with both Capital and Non-Capital items, you will need to use line funding. For example: You can set up your requisition with header funding, but on the Capital Equipment line(s), you will need to put the funding with the appropriate sub code on the line or lines that are Capital Equipment. If you use header funding for Capital Equipment, the whole requisition should be Capital Equipment with the same fund paying for all items. Do not split header funding on multiple line items involving Capital Equipment.
Responsible Party If you are ordering for a different department, we need to know that. Sciquest usually defaults to the department of the person entering the requisition. Even though the shipping information gives the responsible department, the general information is what sets up the responsible department.
. What makes up the cost? Shipping costs, training costs, installation costs, betterment (something that significantly extends useful life, increases utility or efficiency or otherwise adds to the benefits it can yield), and up to 1 year of training support should all be included in the price of an item. For example; if you have a computer that costs $4,700.00, support for one year costs $250.00 and shipping costs $100.00, you have a total cost of $5,050.00 and it becomes capital equipment. Therefore, all 3 items should be sub coded as such. Software stands alone and has a $100,000.00 threshold. If the support is on software and the software is capital equipment, the support sub code should also be capital equipment. If the support is over 1 year, it will not be included in the cost (over 1 year saves on repair costs versus support to get everything up and running).
Add-On or Upgrade versus Repair If it is an add-on or an upgrade (betterment) the sub code will have to match the original piece of equipments sub code. Please reference the decal number of the item it will be going on in the notes of the requisition. If there is no decal number and the betterment will now make it capital equipment, we will have to do a journal entry on the original piece to make it capital equipment now. When replacing an inoperable or outdated part, please reference the decal number of the item it will be replacing in the notes of the requisition. The sub code for repair parts is 3450.
Replacement Items If you are replacing an item completely, we will create a new decal for that item. (Just a reminder, if you are trading-in or disposing of an item, an EACR is also needed and the requisition number needs to be provided on the EACR for all trade-ins).
Sub codes for different types of funds If you have Capital Equipment, please select the appropriate sub code for the funds you are using. Generally; 53 funds, 77 funds and 021 funds require specific sub codes. There are restrictions on splitting funds for those accounts. Note, you may not purchase Capital Equipment on a 21XXXX account, but must use a 021XXX account and get prior approval from the Campus Service Accountants (they will provide you an EAR #). Vehicles also require specific sub codes, depending upon the funding.
EQUIPMENT SUBCODES - note bold codes are fund specific – 88, 89 fund rule at bottom 8210Equipment titled to CSU costing $5,000 or more, $1,000 for specific 53 funds. 8250 Vehicles titled to CSU costing $5,000 pr more, $1,000 for specific 53 funds. 8260 Software over $100,000 8420Equipment conditionally titled costing $5,000 or more if purchased with federal or sponsored funds, $1,000 for specific 53 funds. 8440Equipment federally titled costing $5,000 or more, $1,000 for specific 53 funds. 8460Equipment sponsor titled costing $5,000 or more, $1,000 for specific 53 funds. 8920Equipment titled to CSU costing $5,000 or more purchased in a 7xxxxx-fund. 8925Vehicles titled to CSU costing $5,000 or more purchased on a 7xxxxx fund. 1821 Equipment titled to CSU costing $5 000 or more purchased in a 21-fund general ledger account. (Must have EAR [Equipment Acquisition Request] prior approval from Cost Accounting). May not be split funded. 1825 Vehicles titled to CSU costing $5000 or more purchased on a 21-fund general ledger account. (Must have EAR prior approval from 21-fund Accountants) May not be split funded.
SUBCODES NON-CAP EQUIPMENT 3410General supplies - items not meeting criteria for equipment 3450Repair Parts - items could meet criteria for equipment but is replacing inoperable items of the same type. 3810Computer hardware costing less than $5,000 or less than $1,000 for specific 53 funds. Computer software costing less than $100,000.00 3600Non-capital equipment (does not meet capitalization criteria). 8905Equipment added to building purchased in 7xxxxx -fund. 8935 Non-capital equipment purchased in 7xxxxx -fund (does not meet capitalization criteria). 88 and 89 funding (Work in Process): Cannot use equipment sub codes. These funds use the sub codes for supplies, materials and labor to build a piece of equipment. What are Expendable Equipment Sub Codes?
What Changes???? Finally, if your requisition is approved by Property Management and then changes are made, Property Management will not see it again until it becomes a Purchase Order. Please check the sub codes and funding if the change results in a new price where it is now over or under $5,000.00.
What is the future of Property Management? Here comes KUALI Capital Asset Management (CAM)! Departments will have access to their own equipment records and reports. Departments will be able to update location and responsible party without a form. Forms such as the EACR and Campus Check-out form will be electronic. Testing Website: https://test.kuali.org/kuali-cnv/portal.jsp User: ABAYS (departmental user)