1. Fixed Assets Management of Capital Equipment at the University of Virginia

2. Introduction to Capital Equipment Management Equipment Additions Equipment Additions Equipment Disposals Equipment Disposals Equipment Tracking & Maintenance Equipment Tracking & Maintenance The Inventory Process The Inventory Process Financial Reporting Financial Reporting

3. Equipment Additions There are four ways that capital equipment gets added to the Fixed Assets module There are four ways that capital equipment gets added to the Fixed Assets module –Purchases of $5,000 or more in the Purchasing Module “PO/AP” ( ETF equipment has $500 threshold) –Cost Transfers »Example: Purchases through Cavalier Computer –Gifts-in-Kind (IX.A.11) –Releases From Sponsors or Other Universities to UVA (X.A.3)

4. Equipment Disposals There are a number of reasons for removing equipment from the Fixed Asset module There are a number of reasons for removing equipment from the Fixed Asset module –Surplus (V.II.A.6) – Use P-1 form and “Request to Surplus” E-form at www.procurement.virginia.edu/Surplus –Release to Other Universities (X.A.2) - Use Form P-1, and attach explanation from PI (Principle Investigator) & “Request to Surplus “ form –Trade-In Use Form P-1 Request and Document PO (Purchase Order) Number –Cannibalization Use P-1 Request –Donate Use P-1 Request & “Request to Surplus” form –Abandoned or Missing – Use P-1 Request –Stolen Use P-1 Request & file police report

5. Equipment Tracking & Maintenance The orgs are primarily responsible for their capital equipment and its maintenance. The orgs are primarily responsible for their capital equipment and its maintenance. Fixed Assets Accounting is responsible for oversight of capital equipment policies for the University Fixed Assets Accounting is responsible for oversight of capital equipment policies for the University As the Equipment /Property Contact you are responsible for the tracking and management of your organization’s equipment – So what do you need to do? As the Equipment /Property Contact you are responsible for the tracking and management of your organization’s equipment – So what do you need to do? –Verify information in the system is accurate –Ensure Off-Ground Forms are submitted promptly –Contact the Fixed Assets Accounting Office when changes impact asset location, assignment, etc. –Complete and submit P-1 forms as needed

6. The Inventory Audit Process Fixed Assets Accounting (FAA) scans the organization’s bar-coded equipment assets (excluding Org self-audit assets) Fixed Assets Accounting (FAA) scans the organization’s bar-coded equipment assets (excluding Org self-audit assets) Upon completion, the Org Chair & Equipment Contact receive a “Not Found Capital Equipment Inventory Report” which lists missing equipment Upon completion, the Org Chair & Equipment Contact receive a “Not Found Capital Equipment Inventory Report” which lists missing equipment Org must audit this report, locate missing assets, complete and return report to FAA along with any required forms (Off-grounds & P-1’s ) Org must audit this report, locate missing assets, complete and return report to FAA along with any required forms (Off-grounds & P-1’s ) FAA verifies found equipment and records equipment inventory info in Fixed Assets Module FAA verifies found equipment and records equipment inventory info in Fixed Assets Module Final Certification form is sent to Chair who confirms missing or non-missing equipment and returns signed form to FAA. Final Certification form is sent to Chair who confirms missing or non-missing equipment and returns signed form to FAA.

7. Financial Reporting Sponsor Annual Report in September of each year Sponsor Annual Report in September of each year Annual Report to SCHEV in October of each year Annual Report to SCHEV in October of each year Final Sponsor Property Reports Final Sponsor Property Reports Annual Report to Budget for ETF Allocation Analysis Annual Report to Budget for ETF Allocation Analysis Annual Financial Statements Annual Financial Statements

8. The Role of the Fixed Assets Accounting Office pertaining to Capital Equipment Responsible for management, accounting and financial reporting for University equipment assets Responsible for management, accounting and financial reporting for University equipment assets Administrator the Oracle Fixed Asset Module and data updates to the system Administrator the Oracle Fixed Asset Module and data updates to the system Responsible for tagging newly acquired assets & collecting asset information with scanners Responsible for tagging newly acquired assets & collecting asset information with scanners Control/report UVA and Gov’t inventory Control/report UVA and Gov’t inventory Responsible for control of asset retirements Responsible for control of asset retirements

9. The Role of Equipment/ Property Contacts Provide information to Fixed Assets Accounting for ALL equipment-related activity Provide information to Fixed Assets Accounting for ALL equipment-related activity Review equipment inventory reports to ensure your organization’s equipment is properly accounted for Review equipment inventory reports to ensure your organization’s equipment is properly accounted for Stay current on equipment policies & procedures Stay current on equipment policies & procedures –Visit Fixed Assets Accounting’s website –Call or email Fixed Assets Accounting Staff with questions (FixedAssetsAccounting@virginia.edu)

10. How Oracle Changes the Way We Do Business Each person with FA Viewer or FA Self- Service access can query the Fixed Assets Module directly Each person with FA Viewer or FA Self- Service access can query the Fixed Assets Module directly Each person with Discoverer can run their own reports Each person with Discoverer can run their own reports Equipment in the Fixed Assets Module can be updated from the integrated Oracle Purchasing Module Equipment in the Fixed Assets Module can be updated from the integrated Oracle Purchasing Module

11. The Purchasing Module Accuracy Accuracy –It is very important that ALL users in your organization input data into this module correctly »Description: Must be completely filled out, using noun first and followed by adjective. “Lab equipment” is NOT sufficient if you have purchased a “laser, high intensity”. »Quantities: Must be on purchase order. On LPO show in description; remember that items with many accessories will be tagged as one item so you can put this on one line in the purchase order (ex. Microscopes) »Freight & Installations: Code as part of capital equipment. »Training is NOT part of the value of the capital equipment »Expenditure Type: It’s got to be right or a cost transfer has to be done. »Furniture is always non-capital equipment regardless of threshold cost or quantity

12. The Importance of Expenditure Types It represents the core data element for Fixed Assets Accounting It represents the core data element for Fixed Assets Accounting Understanding the signs…. Understanding the signs…. –Use these for UNIT cost not total cost >/= $5K: greater than or equal to $5,000 >/= $5K: greater than or equal to $5,000 <$5K: less than $5,000 <$5K: less than $5,000 Cost transfers Cost transfers –If the original expenditure category is wrong you need to do a cost transfer (exception – All ETF cost transfers are done by Fixed Assets Accounting)

13. Equipment/Property Contacts must: Fill Out the P-1 Form When… Fill Out the P-1 Form When… –Transferring Equipment internally –Disposing of Equipment –Releasing equipment to another institution –Receiving specific types of Acquisitions Review their Reports Monthly To… Review their Reports Monthly To… –Ensure each organization has accounted for all capitalized equipment as well as Government-Furnished or owned equipment Inform Fixed Assets Accounting if equipment has changed location or assignment Inform Fixed Assets Accounting if equipment has changed location or assignment Review Not Found inventory lists and work with the Fixed Assets Accounting to reconcile any differences Review Not Found inventory lists and work with the Fixed Assets Accounting to reconcile any differences Ensure Inventory Certification is completed & submitted Ensure Inventory Certification is completed & submitted Ensure Off-Grounds certifications are completed & submitted Ensure Off-Grounds certifications are completed & submitted

14. Items You Will Need Contact Information Contact Information List of Expenditure Types (Discoverer Report) List of Expenditure Types (Discoverer Report) The P-1 Form and Instructions The P-1 Form and Instructions Inventory Certification Form Inventory Certification Form Off-Grounds Equipment Certification Form Off-Grounds Equipment Certification Form

15. Fixed Assets Accounting Staff NamePositionEmailPhone Gary Young Director - Fixed Assets Accounting gdy4f@virginia.edu434-924-4284 Lisa Layne Manager - Plant Accounting lwl5h@virginia.edu434-924-4283 Charles “Joe” Samborsky Manager - Equipment & ETF Accounting cjs3rz@virginia.edu434-924-4323 Larry Norem Equipment Specialist ljn8y@virginia.edu434-924-0805 Mike Williams Equipment Inventory Specialist mww5w@virginia.edu434-924-4209