Moveable Equipment Policies and Procedures. Carrie Ballou Financial Reporting - Plant and Debt Accounting

Transcription

1 Moveable Equipment Policies and Procedures Carrie Ballou Financial Reporting - Plant and Debt Accounting

2 Agenda: UR Moveable Equipment Policy: UR moveable equipment capitalization policy Capital equipment identification Physical inventory policy UR Physical Inventory Policy: Purpose of equipment inventory FY2013 equipment inventory timeline Physical moveable equipment inventory process Post inventory procedures

3 UR Moveable Equipment Capitalization Policy Items of tangible equipment having a useful life of two (2) or more years, and a unit cost of $1,000 or more per unit. A unit consists of a single piece of equipment A unit cost includes the cost of modifications, attachments, or accessories necessary for the equipment to function. Delivery and installation costs are included in the unit cost calculation

4 Capital Equipment Identification Purchase proper subcode use Moveable equipment should be charged to the 26xx subcode (excluding 268x) please refer to the subcode listing on UR Finance website located at ance/policies/subcodes.html Plant and Debt Accounting review all charges posting to the 26xx subcode

5 Capital Equipment Identification Other methods of capital equipment acquisition Gifts in Kind Gift in Kind form pdf Capital Leases Initiated by Treasury Office Gifted Research Equipment Proof of third party valuation required

6 Property Control Tag Capital Equipment Identification UR Finance property control tags have the following format: one alpha character and four numerics (ex A1234) Department administrator updates the following within the URSpace equipment module: Building Room number Serial number Responsible person

7 Physical Inventory Policy A moveable physical inventory must be conducted at least once every two years Equipment must be identified on a room by room basis All data fields must contain accurate information

8 Physical Inventory Policy Moveable Equipment Inventory supports the following: Federal Office of Management and Budget (OMB) Circular A-110 Department of Health and Human Services (DHHS) Facilities and Administrative Cost Rate University of Rochester Consolidated Financial Statements

9 Physical Inventory Policy OMB Circular A-110 Requirements Equipment records shall be maintained Equipment owned by the Federal Government shall be identified A control system shall be in effect to insure adequate safeguards to prevent loss, damage or theft Equipment shall be adequately maintained A physical inventory of equipment shall be taken at least once every two years

10 Physical Inventory Policy Facilities and Administrative Cost Rate Room by room identification of equipment is required to support the depreciation calculation component Equipment reported in the location as of the last day of the current fiscal year

11 Physical Inventory Policy UR consolidated financial statements as of 06/30/2012 (in thousands): Total assets $4,509,160 Property, plant and equipment, net $1,561, % of total assets Total research equipment: Total equipment cost (UR only) $421,453 Departments with research activity $322, % of total equipment

12 FY 2013 Equipment Inventory Timeline Notices will be sent to equipment administrators per URSpace via from Equipment Administrator Week of January 28, 2013 Equipment certifier will be primary contact Users must have access to URSpace to complete inventory To request access, please use the following link:

13 FY 2013 Equipment Inventory Timeline Equipment Inventory Training Classes URSpace Equipment Module For new users February/March 2013 URSpace Help Sessions For users who have taken the URSpace Equipment Module training previously Spring 2013 Check URSpace SharePoint site for future classes at ACE/URSPACETraining/default.aspx Must request access to URSpace prior to obtaining SharePoint access

14 Physical Inventory Process Accurately identify equipment Property Control tag Description Serial Number Responsible person Update equipment on URSpace Room, building number, serial number, and responsible person All equipment should be reviewed whether or not the equipment is noted as valid or invalid in URSpace Scrapped/disposed equipment

15 Physical Inventory Process Transferring/Updating Equipment in URSpace: Select equipment that needs to be transferred/updated Three transfer choices: Transfer within the UR Transfer outside the UR

16 Physical Inventory Process When selecting UR-owned buildings, only valid rooms can be selected. If drawings within URSpace need to be updated, please contact Facilities(Jennifer Manning) at For equipment located offsite, the offsite location needs to be updated in the room field within the URSpace equipment module.

17 Physical Inventory Process Disposals Disposals are requested using the disposal tab within URSpace. Reason for the disposal should be indicated in the comment field

18 Physical Inventory Process Disposing Equipment within URSpace: To dispose of an item, click on the appropriate box Please note reason for disposal in cell

19 Physical Inventory Process Disposals Determine who has title If non-exempt equipment, additional action is necessary

20 Physical Inventory Process Disposals If principal investigator takes equipment, disposal should be requested on URSpace at the same time as transfer Review equipment disposal guidelines at

21 Physical Inventory Process Equipment not found Please send information to Equipment Administrator at Plant and Debt Accounting will research items and notify department of outcome

22 Physical Inventory Process Equipment Certification Certification is completed on individual records URSpace allows only one equipment certifier per department, but several users within the department can edit inventory records

23 Physical Inventory Process Equipment Certification Users cannot certify invalid or pending requested records Final certification occurs upon approval from Plant and Debt Accounting within URSpace once records are 100% certified

24 Physical Inventory Process When certifying the inventory record, the department attests to the following: By pressing the certification button, the certifier is representing that the department s inventory has been completed and reviewed. and that all required deletions and corrections, including building and room locations, have been reported. In addition, it certifies that the certifier, or a responsible individual within the department, has physically inspected each of the items. Click the I agree button and then click on the records(s) that need to be certified Equipment data becomes uncertified if changes are made to the record

25 Physical Inventory Process Equipment Certification: By pressing the Certify button, the administrator is attesting that the record has been reviewed and is complete

26 Physical Inventory Process Site Visits Site visits will be scheduled after the equipment certification process is complete A random sample of moveable equipment from each department will be selected to test the equipment s location and existence.

27 Post Inventory Procedures Continue to track and update equipment within the URSpace equipment module Watch for movement resulting from space changes Updating URSpace in a timely manner helps identify valid locations for newly acquired assets

28 Post Inventory Procedures A reminder will be sent to all departments in June to review and update room and building locations within URSpace by July 31, 2013 in preparation for the indirect cost rate calculation for fiscal year 2013.

29 Contacts Equipment Inventory Equipment Administrator: Carrie Ballou, Manager Plant and Debt Accounting Chris Bunting, Property Accountant Plant and Debt Accounting UR capitalization policy: appolicyguidelines.pdf