Fixed Assets Policies and Procedures How they affect

Fixed Assets Policies and Procedures How they affect you 9/10/2021 Fixed Assets Section of Accounting Services 1

Fixed Assets Policies and Procedures DIRECTLY AFFECT: • your work • your budget • your responsibilities pertaining to UNCG assets • University’s financial reporting 9/10/2021 Fixed Assets Section of Accounting Services 2

Areas of Importance Purchases • Determine new assets & their costs • Selecting the correct Fixed Asset Account • Apply bar-code tags for identification Perform annual inventory audits Process Transfer Forms & Off Campus Agreements Submit e. Disposal forms Maintain the University Fixed Assets accounting records 9/10/2021 Fixed Assets Section of Accounting Services 3

3 Types of Fixed Assets Property and Plant – land, improvements to land, easements, building improvements, infrastructure, and structures Moveable Equipment – • Used in the course of business operations, • Expected normal life of two or more years, • Acquisition costs of $5, 000+ (Barcodes applied & inventoried annually) Examples: Office equipment/furniture, Data processing equipment, Educational equipment, Motor vehicles- licensed or unlicensed Other Tangible or Intangible assets • (In-house designed) Software v Purchased software is not a Fixed Asset • Copyrights 9/10/2021 Fixed Assets Section of Accounting Services 4

Fixed Assets Fabrication Fabricated Equipment • Defined as scientific or other complex equipment comprised of two or more individual components that are fabricated/built into a single functional unit. However, fabrication does not apply to components that are simply wired together and can be dismantled to operate separately (for example, IT components such as computers and network equipment). • All components in the fabrication must function as a singular unit and be collectively disposed of at the end of the fabricated asset’s useful life. Individual components of a fabrication cannot (1) be used independently of the other components or (2) function separately apart from the fabricated unit to which it is attached. Fabricated equipment is capitalized as a single asset when its combined total cost equals or exceeds $5, 000 and has a useful life of two or more years. 9/10/2021 Fixed Assets Section of Accounting Services 5

Cost Threshold COSTS INCLUDE $3, 995. 00 Shipping & Handling Delivery Fees Asset Cost + $300. 00 + $500. 00 Installation Fees + $1, 300. 00 $6, 095. 00 IF the Total Cost ≥ $5, 000 – It is a Fixed Asset Capital expenditure account codes required for Fixed Assets 9/10/2021 Fixed Assets Section of Accounting Services 6

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Fixed Asset Account Codes All Fixed Asset Accounts Begin with 203 xxx Be Careful!! Some non-capital equipment account codes and account titles are similar LOOK FOR COLUMN HEADINGS: Fixed Asset Heading: Capital Fixed Assets Equipment $5, 000+ Non-Fixed Asset Heading: Non-Capital Equipment Up to $4, 999. 99 Account Codes for requisitions entered in e. Marketplace are checked 9/10/2021 Fixed Assets Section of Accounting Services 8

An Item Becomes a Fixed Asset WHERE? A cost summary of asset values are recorded in the General Ledger (capitalized) while supporting detail is maintained within Fixed Assets. WHEN? CAPITALIZED asset records are created automatically in the GL when: 1. A capital expenditure account code is used 2. AND the $5000. 00 threshold IS MET Triggered by A/P INVOICE and DEPT. receiving the item 9/10/2021 Fixed Assets Section of Accounting Services 9

Results? Capitalized Otag number(s) are created or Non-capitalized Otag number(s) are created and costs combined by Fixed Assets staff for the total asset over $5, 000 If errors these can only be removed by Fixed Assets entering a Journal Voucher They are permanently added to the Fixed Assets Module of the Finance database. 9/10/2021 Fixed Assets Section of Accounting Services 10

Remember Use EA for ‘Each’ as the Unit of Measure when purchasing assets with Quantity Unit Price. Incorrect Correct @ $22, 870. 90 ea @ $18, 679. 05 ea @ $41, 549. 95 9/10/2021 Fixed Assets Section of Accounting Services

Combined Costs • If the combined costs total $5, 000+ Including shipping, handling, installation and tax • How: Use same expenditure account code in accounting block. 9/10/2021 Fixed Assets Section of Accounting Services 12

Things to remember when purchasing Fixed Assets: Maintenance Agreements Service Contracts Extended Warranties Do not include in the asset cost: Maintenance Agreements Service Contracts Extended Warranties Do not use asset capital expenditure account code Search by %Main% on FTVACCT: Use accounts 236010 -237210 for Maintenance Contracts Search by %Support% on FTVACCT: Use accounts 221060 -221110 for Support Services. 9/10/2021 Fixed Assets Section of Accounting Services 13

Fixed Asset Example Microscope with Laser Requisition Line Items • Frame • Eyepiece • Stage • Observation Tube • SIM Laser Scanner • Transmitted Light Detector • Spectral Detection • Fiber Port • Optional Software • Shipping/Handling • Installation • Extended Warranty Cost $8, 396. 97 207. 00 5, 905. 50 1, 408. 95 4, 926. 00 5, 609. 76 6, 302. 50 537. 54 4, 499. 00 100. 00 800. 00 2. 000. 00 TOTAL ASSET COST $34, 194. 22 REQUISITION TOTAL $40, 693. 22 9/10/2021 Quantity 1 EA 2 EA 1 EA 1 EA 1 EA Fixed Assets Section of Accounting Services Account 203430 203430 203730 203430 236010 14

Policy for Pcards • PCard purchases of capital assets are excluded by threshold of $4, 999. 00 and expenditure account • PCard purchase thresholds prevent purchasing fixed assets • Capital expenditure account codes are not allowed • If combined items equal $5, 000 or more should not purchase with Pcard • Journal entries required for correction 9/10/2021 Fixed Assets Section of Accounting Services 15

Barcode Tags Barcode tags are required for new assets with a total cost of $5, 000+ • Office Furniture & Equipment • Electronic Data Processing Equipment • Educational, Scientific and Research Equipment • Motor Vehicles (Licensed) • Other Equipment (Non-licensed vehicles, grounds & athletic equipment, etc. ) 9/10/2021 Fixed Assets Section of Accounting Services 16

Policy for Tagging New Assets should NOT leave campus BEFORE being tagged! • If the asset is leaving campus immediately upon receipt, call Fixed Assets for immediate tagging!! • Receiving Document must be entered on Banner or e. Marketplace. • FA-16 Off-Campus Agreement must be completed. • Only Fixed Assets staff are authorized to apply or remove barcode tags on equipment. 9/10/2021 Fixed Assets Section of Accounting Services 17

Grant Purchases • Most Grant purchases meeting the cost threshold criteria are required to be barcode tagged as UNCG equipment and added to the Fixed Assets System. • "Assets purchased with Contract and Grant funds become the property of the University and must be bar code tagged and recorded on the Fixed Assets System accordingly” --Policies and Procedures - Accounting & Budgets, Policy 7. 8 - Fixed Assets • "Much of the property acquired on research or training awards becomes University (State) property upon acquisition or by subsequent vesting of title. ”--- Policies and Procedures Contracts and Grants Policy 11 - Equipment Management • http: //www. uncg. edu/baf/C&G_POL_11. html 9/10/2021 Fixed Assets Section of Accounting Services 18

Annual Inventory State Auditors annually audit: asset costs, depreciation, disposals, and physical items Assets Over $5, 000 v v v All moveable capitalized assets are physically inventoried by barcode scanning each fiscal year Audits performed (July-June) by Fixed Assets staff Pre-inventory should be completed by the department designee Equipment Under $5, 000 v Equipment Under the Capital Threshold of $5, 000 that can be easily stolen should be kept on a spreadsheet by the department, including serial numbers, for an annual departmental inventory. v Form located on Fixed Assets webpage 9/10/2021 Fixed Assets Section of Accounting Services 19

Annual Inventory DEPARTMENT HEAD RESPONSIBILITIES 1. Safeguard Assets-“Each department head is responsible for safeguarding all assets purchased for his or her department and assisting with the physical inventory process (see Annual Inventories). . ” -Policy 7. 8 - Fixed Assets 2. Appoint Designee-“… designate an individual in a permanent position on your staff (a student is not an acceptable designee) to physically locate each fixed asset on the attached printouts, which were prepared by our Fixed Assets staff. “- University Controller 3. Sign or Approve Asset Forms- All Fixed Assets Forms must be signed by the department head. 9/10/2021 Fixed Assets Section of Accounting Services 20

Annual Inventory DESIGNEE RESPONSIBILITIES Immediately: • Call or email to confirm receipt of inventory email packet. During Next Two Weeks: • Physically locate each asset and update list, including additions, documentation for assets not located, and new locations of assets. • Request FA-16 forms from employees. • Send updates and all forms to Fixed Assets. • Call for an appointment. • Request all employees or students with assets Off-Campus bring them in on the day of the appointment for scanning if possible. • Arrange for access to ALL labs, lockers, keys, or access to rooms, etc. 9/10/2021 Fixed Assets Section of Accounting Services 21

Day of the Inventory All assets on the current department inventory list must be scanned or forms submitted. • Designee’s responsibilities: • any relocated (transferred) assets still on the inventory list must be scanned • Complete and email a properly completed FA-14 Transfer to move to a new location or to a another department • Accompany the inventory auditor to all assets on the list to be scanned 9/10/2021 Fixed Assets Section of Accounting Services 22

After Initial Inventory MISSING ITEMS – over the next 10 days An email will be sent the next day with report of missing items…. • Locate each item or document the status upon receipt of the Missing Assets Report. • Call your Inventory Auditor for an appointment to verify any located missing items at the close of the inventory in 10 days or after. • Escort the Inventory Auditor to each located missing asset. 9/10/2021 Fixed Assets Section of Accounting Services 23

Missing Equipment • Missing equipment is defined as “any asset which is not found during the physical inventory process and for which documents have not been forwarded to the Fixed Asset Section for transfer or disposal. ” • All assets not scanned at the close of your inventory must be reported to the appropriate Vice-Chancellor or Provost on a monthly basis. 9/10/2021 Fixed Assets Section of Accounting Services 24

Donating Assets • No items may be donated to outside agencies per General Statute (GS 143. 61 Title 3 A) and North Carolina Administrative Code (01 NCAC 43 A). • State Property cannot be donated by anyone other than the Governor, and only in the event of a declared disaster. UNCG, State Surplus and the Department of Administration does not have the authority to donate property. • The disposition of property by any other method is done only with the authority of State Surplus. 9/10/2021 Fixed Assets Section of Accounting Services 25

Stolen Assets According to General Statute 114 -15, if any state property has been stolen: • The employee discovering the suspected theft must report theft to his/her supervisor within 24 hours. • The supervisor must notify the head of the department within the next 24 hours. • The department head should notify the University Police at the UNCG or municipal police department if off campus, within the following 24 hours. The University Police should be notified as soon as possible, but no later than three days from the day of discovery. • The University Police or municipal report pertaining to a theft should contain the asset description, serial number, and/or barcode number. 9/10/2021 Fixed Assets Section of Accounting Services 26

Disposing Assets Regardless of cost or condition, all University property must be disposed through University Warehouse personnel. Under no circumstances should anyone remove University property tags and/or dispose of any fixed assets belonging to the University. Under no circumstances should anyone allow vendors to remove and/or dispose of any fixed assets belonging to the University. Forms should always be submitted to Fixed Assets as soon as changes in the asset’s inventory status occur! 9/10/2021 Fixed Assets Section of Accounting Services 27

Completing Forms Fixed Assets Webpage: • Forms • Link to e. Diposal Form to complete online • Annual Inventory Schedule • Training Power Point fix. uncg. edu 9/10/2021 Fixed Assets Section of Accounting Services 28

Completing Proper Forms • e. Disposal Form completed and submitted electronically online for all assets being removed from service, with approval email from Dean or highest ranking department head of the custodian assigned Organization Code • FA-14 Transfer form & FA-16 Off Campus Agreement signed by the same dean or highest ranking department head of the assigned Organization Code. Data Enterable PDF versions containing new policy format available on our website. Use in place of older paper copies. • Copies all FA forms should be kept by the department • Equipment checkout list available to departments 9/10/2021 Fixed Assets Section of Accounting Services 29

Completing e. Disposal Form Surplus Assets • When a capital asset is considered to have no useful value to any department at the University • Surplus assets may or may not seem to have value to anyone, but is State property, even as salvage value. • Submit an e. Disposal Equipment Disposal Form • Mark the form for asset pick up if needed • Mark the form to deliver assets to the Warehouse – contact Warehouse manager for appointment • Attach documentation if required If item is not a Fixed Asset (check your inventory list) Complete Surplus Request Form 9/10/2021 Fixed Assets Section of Accounting Services 30

Requires More Than e. Disposal Forms must also be submitted for: • Traded-In with authorization from Purchasing for monetary credit toward purchase. Should be e. Marketplace attachment. • Stolen provide copy of the UNCG or municipal police report • Lost unknown location and asset unaccounted for. Memo from department head stating details of asset disappearance. • Junked ( i. e. Used for parts on other assets) Memo from department head stating details of how it was used for parts, including asset and serial numbers of new host assets. • Destroyed by fire, water damage or accident. Memo from department head stating details of destruction by fire, water damage or accident, and a copy of any insurance claim. Claim payment must be submitted to the UNCG Cashier’s Office. • Transfer Out Transferring to another State university or agency. Memo to University Controller requesting transfer, list of equipment and signature of accepting agency or university agent. 9/10/2021 Fixed Assets Section of Accounting Services 31

e. Disposal of more than 5 assets **Multiple Asset Disposal Form -spreadsheet Submit generic e. Disposal form. When you receive the system automated email confirmation, forward your confirmation email to: ü fxdassts@uncg. edu ü Your department head for approval ü attach the Multiple Asset Disposal Form ü attach any other required documentation 9/10/2021 Fixed Assets Section of Accounting Services 32

Completing Proper Forms FA-14 Transfer Forms (For Change in Location or Department) • Must be signed by both department heads • Should be the responsibility of current department. 9/10/2021 Fixed Assets Section of Accounting Services 33

Completing Proper Forms FA-16 Agreement for Equipment Located Off-Campus • Requires removal and expected return dates • Department head and user signatures required 9/10/2021 Fixed Assets Section of Accounting Services 34

Completing Proper Forms Optional Equipment Checkout List – Short Term Only! • Records removal and expected return dates of equipment loaned to UNCG department or out for repair to vendor • User or vendor signatures required for loan or removal • Form is Maintained and kept by the department 9/10/2021 Fixed Assets Section of Accounting Services 35

Our Location Fixed Assets Staff Heather Snelling • Finance Manager/Fixed Assets Supervisor • (336) 334 -5804 • (336) 334 -5938 • hrsnelli@uncg. edu Fixed Assets Office Location Rooms 104 -107 UNCG Surplus Warehouse 2900 Oakland Avenue Greensboro, NC 27402 -6170 FAX Number: (336) 256 -1259 Barbara Lathrop • Fixed Assets Technician/Inventory Auditor • (336) 334 -5904 • bblathro@uncg. edu Vera Ledbetter • Fixed Assets Clerk/Inventory Auditor • (336) 334 -5905 • vdledbet@uncg. edu 9/10/2021 Fixed Assets Section of Accounting Services 36