FastFactsFeature Presentation November 18, 2008 • We are using audio during this session, so please dial in to our conference line… • Phone number: 877-322-9648 • Participant code: 182500
Today’s Topic We’ll be taking a look at… Equipment Purchasing for JHU
Today’s Presenter Shari Swisher Manager of Special Projects and Training, Financial Systems Administration, Controller’s Office
Today’s Additional Panel • Panel for question and answer session: • Lisa Schaible, Director of the Fixed Assets Shared Service Center • Judy Zimmer, Associate Director of Purchasing, Supply Chain Shared Services • Chris Foret, Manager of Cost Analysis in the Controller’s Office
Session Segments Presentation Shari Swisher will address equipment purchasing for JHU. During Shari's presentation, your phone will be muted. Q&A After the presentation, we’ll hold a Q&A session. We’ll open up the phone lines, and you’ll be able to ask questions. Shari and the panelwill answer as many of your questions as time allows.
Contact Us If you would like to submit a question during the presentation or if you’re having technical difficulties, you can email us at: email@example.com You can also send us an instant message! GoogleTalk – HopkinsFastFacts@gmail.com AOL Instant Messenger – HopkinsFastFacts MSN – FastFacts@jhu.edu
Survey Survey At the end of this FastFacts session, we’ll ask you to complete a short survey. Your honest comments will help us to enhance and improve future FastFacts sessions.
Agenda • We’ll be taking a look at… • How to issue a shopping cart correctly for equipment purchases • Responsibilities of the Shared Service Centers • Common mistakes and corrections
Assumptions • Users have security access to issue a shopping cart and/or view associated postings in the Business Warehouse • Users should have basic understanding and familiarity with issuing a shopping cart
What is Equipment? • Equipment is defined as an article of non-expendable, tangible property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. Items defined as equipment… • Machinery • Furniture • Office machines • Vehicles (cars, trucks, etc.) • Scientific instruments • or other apparatus that may be used repeatedly without material impairment of its condition, and is not highly perishable
Fixed Assets- Responsibilities • Regarding equipment accounting, Fixed Assets Shared Services is responsible for: • Identifying and recording all equipment acquisitions • Approval of all Capital Shopping Carts and creating assets • Conducting the two-year equipment inventory • Tagging newly acquired assets and updating changes in location • Maintaining the university's equipment inventory
Fixed Assets- Responsibilities-cont’d • Regarding equipment accounting, Fixed Assets Shared Services is responsible for: • Preparing equipment lists and providing a wide variety of equipment reports to administration and departments. • Providing figures for updating the equipment assets for use in F&A recoveries. • Providing figures for updating the equipment assets for use in calculating depreciation. • Providing data for equipment reports for specific grant and contracts for Sponsored Projects Shared Services as required in the Notice of Award. Policies and procedures are available online: http://www.controller.jhu.edu/policy/list.html
Supply Chain- Responsibilities • Regarding equipment purchasing, the Supply Chain Shared Service Center is responsible for: • Approving CAPP (Capital Expenditures Purchase Order) document types • Following usual policies and procedures • Ensuring that the end user attached the three (3) competitive quotes and/or a justification to the shopping cart
Issuing the Shopping Cart • Enter the “Go Shopping” portal in SAP • Select “Shop”
Changing the Document Type • Default document type is ECPO • Click on the Binoculars Icon to get drop down list • Must change document type to “CAPP”
Changing the Document Type • Change the document type to CAPP • Equates to object code 3000 in our legacy system • Complete basic data, as usual • Attach competitive bids and justifications
Additional Specifications • “Notes for Approval” • Add the room/building number where the asset will be used, if different from the delivery address. • Designate a contact person for inventory purposes.
Leasing and Rentals • Reminder on the leasing/renting of equipment we don’t own, such as copiers: • DO • Select BLPO purchase • Select Office Supplies Category • DON’T • Select CAPP purchase • Select Lease/Rental Category
Approvals Workflow Shopping carts with CAPP -document type are routed to the FASSC. FASSC will determine if the purchase meets Asset Requirements. NO YES FASSC enters data into Equipment inventories. An asset shell is established with: asset number, cost object, commitment item and G/L account. No dollar amounts are assigned to the asset shell. FASSC follows up with the issuer to reject the shopping cart or make corrections. Shopping cart is forwarded thru workflow to Supply Chain for final approval and issuing of the purchase order. *G/L 631099 “EQUIP-SRM ONLY” should be used on all CAPP purchase orders When a goods receipt is completed, the expense posts using the cost object, commitment item and G/L on the purchase order.
Online Payment Requests • Using Online Payment Requests to make equipment purchases is discouraged. • Information on equipment acquisitions other than through purchase orders is not automatically identified. • If an Online Payment Request is used, the General Ledger account 631113 “JHU Only Equip>5K” should be used. • University departments are responsible for notifying Fixed Assets about equipment purchases made using Online Payment Requests using the form C824.
Form C824 • University departments are responsible for notifying Fixed Assets Shared Services using form C824 for transferred, moved, donated or disposed equipment. • Instructions and C824 Form are located at: http://ssc.jhu.edu/fixedassets/forms.html
Fabricated Assets • New asset class: “Asset Fabrication In Process.” • Fabricated assets must be >$5K but <$100K • Asset Class 900 “Asset Fabrication In Process” • Commitment Item – 653424, GL – 183202 • Blocks depreciation from assets currently being fabricated. • Applies to fabricated assets that don’t meet the JHU capital project criteria. • Note the approximate “in service date” on the C825 Form. • Note the approximate date of completed fabrication on the shopping cart. • When the asset is “in service” please notify the FASSC to begin asset depreciation.
Impact of Errors • Equipment expenses posted as supplies may be taking F&A incorrectly. • The university follows OMB Circulars A-21 and A-110, which require the timely identification and correction of errors. • Monitoring and corrections are difficult and time consuming for Shared Services and the Controller’s Office.
Identifying Mistakes • Once goods receipts are completed or invoices are posted, changes to the PO cannot be made. • Shopping carts issued as ECPO’s will bypass Fixed Assets. Supply Chain cannot change ECPO’s to CAPP purchase orders. Initiators must delete the ECPO shopping cart and re-issue using CAPP. • If an error is found during monthly reconciliation, department users should initiate a non-payroll cost transfer. • This action will be routed to the FASSC for approval. • FASSC will follow up to create and tag the asset. • The FASSC routinely reviews postings to supplies. • If the inventory team identifies a possible equipment purchase, they will verify equipment is present, tag and issue a non-payroll cost transfer.
Equipment Transactions in BW • The example below reflects an equipment posting commonly found during monthly reconciliation. Example of the goods receipt triggering capitalization.
Conclusion • The key point to remember is changing the shopping order type to CAPP (document type automatically defaults to ECPO). • Shopping carts issued as ECPO’s will bypass Fixed Assets. • Use of Online Payment Requests for equipment purchases is discouraged. • Departments are responsible for completing the form C824. • The FASSC routinely reviews postings to supplies.
Resources Reviewed • Controller's Office policies and procedures are available online: http://www.controller.jhu.edu/policy/list.html • Instructions and C824 from are located at: http://ssc.jhu.edu/fixedassets/forms.html
Questions • Please limit your questions to general inquiries about equipment purchasing. • Specific inquiries should be directed to the appropriate Shared Service Center • Fixed Assets Shared Services http://ssc.jhu.edu/fixedassets/index.html • Supply Chain Shared Services http://ssc.jhu.edu/supplychain/index.html
We’re going to open the phone lines now! There will be a slight pause, and then a recorded voice will provide instructions on how to ask questions over this conference call line. We’ll be answering questions in the order that we receive them. We’ll also be answering the questions that were emailed to us during the presentation. If there’s a question that we can’t answer, we’ll do some research after this session, and then email the answer to all participants. Q&A
Thank You! Thank you for participating! We would love to hear from you. Are there certain topics that you would like us to cover in future FastFacts sessions? Would you like to be a FastFacts presenter? Please email us at: firstname.lastname@example.org
Survey Before we close, please take the time to complete a short survey. Your feedback will help us as we plan future FastFacts sessions. Click this link to access the survey… http://connect.johnshopkins.edu/fastfactssurvey/ Thanks again!