ASSETS ACCOUNTING AND INVENTORY PROJECT General Accounting BE
ASSETS ACCOUNTING AND INVENTORY PROJECT General Accounting BE Assets Management Forum 13. 09. 2016
PPE (Property Plant & Equipment) Project • Auditors’ recommendation in 2013 Financial Statements ü «high recognition threshold» - 3 Mio CHF - resulting in «no recognition as assets and expensing many tangible items that are used longer than one reporting period» … ü «understating the value of PPE and overstating expense» … • Review of the accounting policy towards PPE, revise the value of CERN tangible assets ü Recognition threshold ü Increase the number of asset classes ü Split complex assets into components ü Develop an asset register • Implementation in the 2015 Financial Statements – Positive answer from the auditors 13/09/2016 J. Falcon 2
Methodology for initial inventory/additions/disposals • Initial inventory (picture as at 31. 12. 2014) completed jointly with our technical stakeholders • Additions : List of new equipment from technical side Financial information to be provided (budget code, contract, order) * Ct. C of the projects Taking the total spending of a budget code and making one line in the PPE register. 13/09/2016 • * Financial information is key to give a value to the new equipment and to avoid double counting. • Installation costs and personnel costs related to the new materiel are capture through the analysis of the projects. J. Falcon 3
Methodology for initial inventory/additions/disposals (ctd) • Disposals can only be treated based on the information provided by the technical stakeholders : ü Guidelines request technical side to inform General Accounting of any disposal happening during the year ü Second opportunity to inform General Accounting at the year-end review of the list of equipment 13/09/2016 J. Falcon 4
PPE / BE-BI • Requested information : • Changes in quantity related to acquisitions/installations and/or disposals between 01. 10. N-1 and 30. 09. N (spares excluded) • Financial information such as budget code, contract number, EDH document number • Review of useful life assessment • Database used by the group to provide data : • Accelerators official layout database • Deadline : • October 15 th for acquisitions and disposals between 01. 10. N-1 and 30. 09. N • Contact person(s) : • Jean-Jacques Gras • Rhodri Jones 13/09/2016 J. Falcon 5
PPE / BE-CO • BE-CO/IN • Requested information : • BE-CO/FE • Database used by the group to provide data : • Changes in quantity related to acquisitions and/or disposals between 01. 10. N-1 and 30. 09. N • Financial information such as budget code, contract number, EDH document number • Review of useful life assessment • BE-CO-FE : Infor EAM (spares included) • BE-CO-IN : Excel spreadsheet • Deadline : • October 15 th for acquisitions and disposals between 01. 10. N-1 and 30. 09. N • Contact person(s) : • Marc Vanden Eynden 13/09/2016 J. Falcon 6
PPE / BE-RF • Requested information : • Acquisitions/installations and/or disposals between 01. 10. N-1 and 30. 09. N • Financial information such as budget code, contract number, EDH document number • Review of useful life assessment • Database used by the group to provide data : • Excel spreadsheets • Deadline : • October 15 th for acquisitions and disposals between 01. 10. N-1 and 30. 09. N • Contact person(s) : • • 13/09/2016 PM : Eric Montesinos SRF : Karl-Martin Schirm IS : Carlo Rossi LRF : Frank Gerigk MK : Olivier Brunner FB : Wolfgang Hofle CS : Andy Butterworth J. Falcon 7
PPE / BE-ICS • Initial inventory in course of completion/review • Yearly requested information : • Changes in quantity related to acquisitions and/or disposals between 01. 10. N-1 and 30. 09. N • Financial information such as budget code, contract number, EDH document number • Review of useful life assessment • Database used by the group to provide data : • Infor EAM • Deadline : • October 15 th for acquisitions and disposals between 01. 10. N 1 and 30. 09. N • Contact person(s) : • Silvia Grau • Rui Nunes 13/09/2016 J. Falcon 8
INTANGIBLE ASSETS – Internally developed software • Auditors’ recommendation in 2013 Financial Statements üExternal Auditors have recommended that CERN implement the internal processes necessary to identify and value internally developed software as part of our intangible assets. üThe auditors consider that the scale of internally developed software at CERN is considerable, so without including them the value of intangible assets presented in the Financial Position is significantly understated. • Implementation in the 2015 Financial Statements – Positive answer from the auditors 13/09/2016 J. Falcon 9
Methodology for initial inventory/additions/disposals of Internally developed software • Initial inventory : data collection centralised by Ronny Billen üABP/BI/CO/ICS/OP/RF üFor existing software developement since 1/1/2012*: estimated costs based on estimated time and average people costs *date at which the IPSAS norm 31 entered in application • Threshold : 100 KCHF by project/software per year after it is in production • Register yearly update : deadline 30. 10. N ü From the end of September, General accounting will request an update for 2016, using an excel form as follows, for existing software at N-1 : üGeneral accounting will also expect to be informed of any new software development starting in 2016 and of any abandon of software development during 2016. 13/09/2016 J. Falcon 10
INVENTORY PROJECT – analysis and proposals from General Accounting • Review prompted by PPE project : ü Some of the assets are recorded already in Inventory (i. e : computers, oscilloscopes) ü Complete review of usage of Inventory appeared to be needed, rather than just an update to the guidelines to include ppe items. • Current situation : ü Over 25’ 000 items recorded, 812 item descriptions ü Some double entries with other databases, accuracy and completeness of the data are not assured ü No effective controls by a third party ü The update of inventory tool takes on average 30% of the working time of an Inventory manager • Going forward : • CLARIFY (objective & items to be included) ü Double objective of control of « sensitive » assets and valuation for PPE register ü New proposed list (see next slide) • FACILITATE maintenance of Inventory tool (automation & standardization) • IMPROVE PROCESSES (incl. traceability & controls) • Inventory Managers have been consulted • Presentation to ED to come soon to get support and feedback from departmental heads on our proposals • Formal procedure to be distributed among departments • Deadlines : some improvements can already be implemented in 2016 but most of the developments requested to AIS will be included in their 2017 work program 13/09/2016 J. Falcon 11
- Slides: 12
