1. Capital Asset Management CATS Presentation December 12, 2007 Today’s Presenter: Anna Jensen, Director of Auxiliary Accounting, Capital Asset Management, Accounts Receivable, and Student Loan Administration

2. Capital Asset Management Physical inventories are completed to: Physical inventories are completed to secure university assets. To verify location for compliance with OMB Circular A110 To assist organizations with effective management of capital equipment.

3. Capital Asset Management Who is responsible for knowing where your assets are? Your organization is responsible to know where your assets are. Rules exist to govern management of capital assets to ensure state and federal compliance.

4. Capital Asset Management Why must I perform a physical inventory? Indiana University is required to keep and maintain an inventory database because we receive federal and state funding. To receive this funding we are required to comply with the circulars set forth by the Office of Budget and Management.

5. Capital Asset Management Policy I-170 Physical Inventories and Location Changes for Capital Moveable Equipment Policy: A physical inventory of equipment shall be taken and the results reconciled with the equipment records at least once every two years. Updates: Whenever an organization changes the location of a moveable capital asset then the location must be updated in the capital asset system within 30 days of the change. Why: The 30 day timeline ensures the physical inventory is used as a verification process and not a clean up process.

6. Capital Asset Management Asset Transfer Capital Equipment The Asset Transfer Document is required when giving or selling capital equipment to another university organization. The account amounts (monies) are reversed out of the current chart/organization (balance sheet) and added to the chart/organization (balance sheet) to which the asset is being transferred. For “External Transfers” see the Asset Retirement Document. Non-capital Equipment The Asset Transfer Document is optional when giving or selling non-capital equipment to another university department. When a transfer document for non capital equipment is approved the owner account will be changed to the receiving organization. Asset Transfer Documents for non-capital assets will not generate ledger entries or create payment records. Non-capital assets should not be transferred to the Surplus Department. Surplus Equipment The Asset Transfer Document is used to transfer capital assets to the surplus department. Non capital asset should not be transferred to surplus. Before transferring as asset to surplus The department should offer the asset to other university departments using the purchasing redistribution list. To post messages to the surplus listserver, compose a message in any e-mail system, and then send it to: redistribution@purchase.indiana.edu.redistribution@purchase.indiana.edu

7. Capital Asset Management Asset Retirement The Asset Retirement Document is used to record the financial transactions associated with disposals of capital assets from the asset database. The Asset Retirement Document is also used to change the status of the asset. Non-capital assets can not be retired on the retirement document. To retire non-capital assets use the Capital Asset Maintenance to change the inventory status.

8. Capital Asset Management Equipment Loan/Return Submission of the Equipment Loan/Return Document is required when capital equipment is borrowed from Indiana University for more than thirty one (31) days, and the equipment resides at a location which is not directly associated with the university. The document must be completed before the equipment is removed from the campus. In accordance with IU policy, equipment may be loaned for a period of two years or less, and the loan document must be completed within thirty (30) days of the loan.

9. Capital Asset Management Capital Asset Maintenance Screen The Capital Asset Maintenance screen is used for file maintenance, and to complete physical inventories. Components Repair History Warranty

10. Capital Asset Management Inventory Process Department scans equipment Bar-Code Error document Reconciliation Report Fiscal Officer signs Certification Letter

11. Capital Asset Management Inventory Time Line Organizations will be given a minimum of time to process their reconciliation report and to return the signed inventory certification letter prior to June 30th to their Campus Capital Asset Office. The scheduled start date for any organization will be no later than the average number of days given to reconcile the inventory plus one week prior to June 30th. http://www.fms.indiana.edu/cams/policies/physical_inventories. asp http://www.fms.indiana.edu/cams/policies/physical_inventories. asp

12. Capital Asset Management Audits Each year Indiana University is audited by the State of Indiana, in addition we can be audited by any federal agency that awarded money or equipment to IU. When auditing assets an Auditor will take a sample of data from CAMS, and from the field. From this selection of data the Auditor will confirm the assets were created and managed with-in polices and procedures adopted by the university. For example they would review the assets to determine if they were created in compliance with the capitalization rules; and then determine if the asset was inventoried in compliance with inventory policies.

13. Capital Asset Management Audit Findings An asset listed on your inventory that could not be located by an Auditor will result in a comment in the exit audit reported to the Board of Trustees. A "comment" finding will result with the university taking measures to ensure the problem is resolved, and new processes are created to ensure the problem does not occur again. Several comments in an audit can result in a loss of funding for the university.

14. Capital Asset Management Classes CAMS Transaction Class CAMS Maintenance Workshop Register at: https://fdrs.fms.indiana.edu/cgi- bin/training/fis_schedule.pl/ScheduleIU B https://fdrs.fms.indiana.edu/cgi- bin/training/fis_schedule.pl/ScheduleIU B

15. Capital Asset Management Capital Asset Management Training Material Training Material Available http://www.fms.indiana.edu/cams/training_ma terials.asp http://www.fms.indiana.edu/cams/training_ma terials.asp

16. Capital Asset Management http://www.fms.indiana.edu/cams/

17. Capital Asset Management SUBSCRIBE TO THE CAMS MAILING LIST The CAMS Mailing list is used to communicate changes to Policy and Standard Operating Procedures. http://www.fms.indiana.edu/cams/mail. asp http://www.fms.indiana.edu/cams/mail. asp

18. Capital Asset Management IUIE Reporting Master Catalog -> Financial -> Capital Asset Management System CAMS DataGroups CAMS Depreciation Reports Capital Lease Reports Construction in Progress Reports Edit Reports Inventory Control Reports Organization Reconciliation Reports Screening Reports Summary Reports