Fixed Assets

1. Fixed Assets Management of Capital Equipment at the University of Virginia

2. Introduction to Capital Equipment Management • Equipment Additions • Equipment Disposals • Equipment Tracking & Maintenance • The Inventory Process • Financial Reporting

3. Equipment Additions • There are four ways that capital equipment gets added to the Fixed Assets module • Purchases of $5,000 or more in the Purchasing Module “PO/AP” ( ETF equipment has $500 threshold) • Cost Transfers • Example: Purchases through Cavalier Computer • Gifts-in-Kind(IX.A.11) • Releases FromSponsors or Other Universities to UVA (X.A.3)

4. Equipment Disposals • There are a number of reasons for removing equipment from the Fixed Asset module • Surplus (V.II.A.6) – Use P-1 form and “Request to Surplus” E-form at www.procurement.virginia.edu/Surplus • Release toOther Universities (X.A.2) - Use Form P-1, and attach explanation from PI (Principle Investigator) & “Request to Surplus “ form • Trade-In Use Form P-1 Request and Document PO (Purchase Order) Number • CannibalizationUse P-1 Request • DonateUse P-1 Request & “Request to Surplus” form • Abandoned or Missing – Use P-1 Request • Stolen Use P-1 Request & file police report

5. Equipment Tracking & Maintenance • The orgs are primarily responsible for their capital equipment and its maintenance. • Fixed Assets Accounting is responsible for oversight of capital equipment policies for the University • As the Equipment /Property Contact you are responsible for the tracking and management of your organization’s equipment – So what do you need to do? • Verify information in the system is accurate • Ensure Off-Ground Forms are submitted promptly • Contact the Fixed Assets Accounting Office when changes impact asset location, assignment, etc. • Complete and submit P-1 forms as needed

6. The Inventory Audit Process • Fixed Assets Accounting (FAA) scans the organization’s bar-coded equipment assets (excluding Org self-audit assets) • Upon completion, the Org Chair & Equipment Contact receive a “Not Found Capital Equipment Inventory Report” which lists missing equipment • Org must audit this report, locate missing assets, complete and return report to FAA along with any required forms (Off-grounds & P-1’s ) • FAA verifies found equipment and records equipment inventory info in Fixed Assets Module • Final Certification form is sent to Chair who confirms missing or non-missing equipment and returns signed form to FAA.

7. Financial Reporting • Sponsor Annual Report in September of each year • Annual Report to SCHEV in October of each year • Final Sponsor Property Reports • Annual Report to Budget for ETF Allocation Analysis • Annual Financial Statements

8. The Role of the Fixed Assets Accounting Office pertaining to Capital Equipment • Responsible for management, accounting and financial reporting for University equipment assets • Administrator the Oracle Fixed Asset Module and data updates to the system • Responsible for tagging newly acquired assets & collecting asset information with scanners • Control/report UVA and Gov’t inventory • Responsible for control of asset retirements

9. The Role of Equipment/ Property Contacts • Provide information to Fixed Assets Accounting for ALL equipment-related activity • Review equipment inventory reports to ensure your organization’s equipment is properly accounted for • Stay current on equipment policies & procedures • Visit Fixed Assets Accounting’s website • Call or email Fixed Assets Accounting Staff with questions (FixedAssetsAccounting@virginia.edu)

10. How Oracle Changes the Way We Do Business • Each person with FA Viewer or FA Self-Service access can query the Fixed Assets Module directly • Each person with Discoverer can run their own reports • Equipment in the Fixed Assets Module can be updated from the integrated Oracle Purchasing Module

11. The Purchasing Module • Accuracy • It is very important that ALL users in your organization input data into this module correctly • Description: Must be completely filled out, using noun first and followed by adjective. “Lab equipment” is NOT sufficient if you have purchased a “laser, high intensity”. • Quantities: Must be on purchase order. On LPO show in description; remember that items with many accessories will be tagged as one item so you can put this on one line in the purchase order (ex. Microscopes) • Freight & Installations: Code as part of capital equipment. • Training is NOT part of the value of the capital equipment • Expenditure Type: It’s got to be right or a cost transfer has to be done. • Furniture is always non-capital equipment regardless of threshold cost or quantity

12. The Importance of Expenditure Types • It represents the core data element for Fixed Assets Accounting • Understanding the signs…. • Use these for UNIT cost not total cost • >/= $5K: greater than or equal to $5,000 • <$5K: less than $5,000 • Cost transfers • If the original expenditure category is wrong you need to do a cost transfer (exception – All ETF cost transfers are done by Fixed Assets Accounting)

13. Equipment/Property Contacts must: • Fill Out the P-1 Form When… • Transferring Equipment internally • Disposing of Equipment • Releasing equipment to another institution • Receiving specific types of Acquisitions • Review their Reports Monthly To… • Ensure each organization has accounted for all capitalized equipment as well as Government-Furnished or owned equipment • Inform Fixed Assets Accounting if equipment has changed location or assignment • Review Not Found inventory lists and work with the Fixed Assets Accounting to reconcile any differences • Ensure Inventory Certification is completed & submitted • Ensure Off-Grounds certifications are completed & submitted

14. Items You Will Need • Contact Information • List of Expenditure Types (Discoverer Report) • The P-1 Form and Instructions • Inventory Certification Form • Off-Grounds Equipment Certification Form

15. Fixed Assets Accounting Staff