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
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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
• Why do we need to give it an asset tag?
– Responsibility
– Tracking/indentifying
– Missing tags
• When do we book an asset (“in-service” date)?
– Payment Voucher (PV) date (equipment valued at less
than $50,000)
– “In-service” date determined through direct contact
and confirmation with the user department
(equipment with a total cost of $50,000 )
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.
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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
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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
– Report any changes
• Room number
• Responsible person
• Corrections to asset record
– model, serial number, description
– Deletions
• Surplus
• Scrap/parted out
• Obsolete
– Must be signed by verifier and department chair
HELPFUL HINTS
– Make changes during the course of the year
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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
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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:
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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
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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
Questions???????????????