Financial Services Procedure 9 – Fixed Assets Procedures

Fixed Asset Account Approval Queue

Within the eMarketplace purchasing software, an account code table is loaded with capital asset and other typically misused non-capital expenditure account codes selected for Fixed Asset approval. Usage of these codes triggers a feed of requisitions through the Fixed Assets approval queue. An email, with a link to the requisition, alerts Fixed Assets to review that requisition for proper usage of the account codes and proper formatting of the requisition for fixed assets. Each correct requisition is approved and continues in the chain to the next approval queue. Each incorrect requisition is returned to the requisitioner with comments recorded in the document’s history instructing correction. The requisition may be returned more than once until the final corrections are made, and the requisition is approved.

Recording and Tagging Fixed Assets

The FFPOEXT, an interface extract program run by Fixed Asset staff, identifies potential capitalized assets that enter Banner Finance through purchasing and accounts payable, and creates corresponding pending asset records. This extract program gathers cost and other asset data from purchase orders, receivers, invoices, vouchers and other records that are automatically matched through the FABMATC program. Extract processing is controlled by UNCG defined capitalization rules, based on the purchase cost and the account codes charged for the purchase. All items on the extract of $5,000.00 or more have been automatically capitalized in the general ledger as Otags or origination tags.

UNCG does not have central receiving, but Banprd requires that departments record items as received before a check is written in payment.

Acquisitions (such as gifts-in-kind, land, buildings) not recorded in purchasing or accounts payable may be entered into Fixed Assets manually. When a manual approval transaction is processed in Fixed Assets, data needed to recognize the acquisition as capitalized (i.e., the debit and credit accounts to be posted and the asset cost) is immediately sent to the General Ledger by a Ptag Capitalization document entered in the FFAADJF Adjustment form.

Based on the University’s inventory and capitalization policies, Fixed Assets determines which items should be assigned a bar code tag number and added to the Fixed Assets System with a Ptag or permanent tag number. Under no circumstances should anyone take an item off campus before the Fixed Assets staff has properly tagged it. If a department needs an item tagged immediately, they should contact the Fixed Assets staff at 334-5938.

The Fixed Assets staff works with the department to confirm the correct asset for tagging by comparing the description, serial number, model number, manufacturer, etc. from the vendor invoice to the asset. The Fixed Assets staff will place the “Property of UNCG” bar code tag on the front or other area of the item to facilitate scanning with the hand held scanning unit. Only Fixed Assets personnel, and not departmental personnel, have the authority to tag or remove a tag (i.e., place bar code labels on equipment).

Once the item has been properly tagged and additional information such as building and room numbers, comments, etc. have been entered on the Banner Fixed Assets System, the Fixed Asset Supervisor/Accountant reviews each pending asset for accuracy and completeness and “officially approves” the addition as a permanent asset. The Fixed Asset Master (FFIMAST) contains the following information as appropriate for each equipment asset recorded on the Fixed Asset System:

  1. Origination Tag # (Otag) and Date
  2. Permanent Tag # (Ptag) and corresponds to bar code tag and Dat
  3. Asset Description, model #, manufacturer, serial or VIN #
  4. Asset Type
  5. Acquisition method and date
  6. Total Cost
  7. In-service date
  8. Vendor name and PO #, invoice number and date
  9. Organization and Location
  10. Funding Source and Custodian

The relationship between Fixed Assets and the Financial Accounting component of Banner Finance is one of detail to control: summary asset values are recorded in the General Ledger control accounts while supporting detail is maintained within Fixed Assets.

Licensing of Motor Vehicles and Trailers

University departments are responsible for obtaining license plates, registrations, and titles of motor vehicles and trailers. When a motor vehicle and/or trailer is purchased, the department should forward the original title(s) to the University Controller’s Office, 270 Mossman Bldg. All original titles are kept on file in the University Controller’s Office.  If the original title is lost, it is the responsibility of the department to obtain a copy of the title from the NC Department of Motor Vehicles.

Transfer to the University with Researcher

Equipment that accompanies a researcher (grant) for use at the University of North Carolina Greensboro must be promptly reported to the Fixed Assets staff for addition to the Banner Fixed Assets System if appropriate. Documentation that the researcher’s former institution transferred title to the equipment must be provided, along with attributes (asset description, serial number, original acquisition date, cost, net book value, date placed in service at UNCG) required for entry into the Banner Fixed Assets System. The successor University unit to which the researcher subsequently is assigned must inform the researcher before acceptance of the equipment that, unless the research sponsor has mandated otherwise, the equipment becomes property of the University of North Carolina Greensboro upon transfer.

Fixed Assets Workshop

Periodically throughout the year (6 times), the Fixed Assets staff in coordination with the Accounts Payable staff presents a workshop to provide basic information about requisitioning and purchasing fixed assets, the tagging and inventory processes, and guidance for required forms.

To sign up for a workshop, go to the UNCG workshop webpage.
Banner Finance (Faculty/Staff Only)
Banner Finance Accounts Payable and Fixed Assets

PHYSICAL INVENTORY OF FIXED ASSETS

The Fixed Assets staff will conduct a physical inventory of capitalized items annually. The Fixed Assets staff will send inventory worksheets listing all bar coded assets to the department head, along with instructions so that the department head’s designee will be prepared for the physical inventory. The designee should locate all items, update the inventory worksheet data and return it to the Fixed Assets Section within ten business days. The designee also requests an appointment for a date and time for the physical inventory. Once the Fixed Assets staff has recorded these changes on the Fixed Assets System, they will print an updated physical inventory worksheet on the day of the appointment. The designee should be prepared to escort the Fixed Assets staff to each item, to make arrangements for lap top computers to be brought to the office, and to have access to locked offices, classrooms or labs.

Using the hand-held scanner, the Fixed Assets staff will scan each bar coded asset. Upon completion of the physical inventory, the Fixed Assets staff will update the Fixed Asset System as needed and send a “missing” items schedule, if applicable, and a final inventory printout to the department head. On a monthly basis, the Fixed Assets staff will prepare reports of missing items by division and will send the reports to the other respective appropriate Vice Chancellors and Provost. The Fixed Assets staff will record these missing items as disposed on the Fixed Assets System by June 30th if the Vice Chancellors and Provost are unable to locate them.

DISPOSAL OF FIXED ASSETS

University equipment cannot be thrown away or discarded. To dispose of a capitalized asset (assets on your inventory, cost $5,000 or more), the responsible department must complete an eDisposal, Equipment Disposal Form, whenever the custody of the fixed asset changes due to the item being surplused, junked, destroyed, lost, stolen, traded in, or transferred to another agency or university. The eDisposal form is found on the Fixed Assets website.

The sale of fixed assets is not permitted by individuals or departments. Departments should contact Warehouse Services and Surplus Property personnel at 334-5927 with questions about disposing an asset.

Guidelines for disposing of a non-capitalized asset (cost less than $5,000), and a UNCG Surplus Submission Form can be found on the Warehouse Services website.

Note: When you have more than 5 capitalized assets to dispose, you may use the Multiple Asset Disposal Attachment form. Type the information required on the form and attach it when completing the eDisposal form (since it is an Excel spreadsheet, you may insert rows as needed). Use generic Asset Barcode No: 0999990000 when submitting the Multiple Asset Disposal Attachment form. Email approval from the organization head signifies approval for all disposals on the attachment.

When pick up is required, approval emails are sent to the Warehouse and to the Fixed Assets office for the following disposal codes: SU, DS, JK
When pickup is required, the Warehouse will contact the department to make arrangements for the pickup. The department may also make arrangements to deliver items to the Warehouse by contacting the Warehouse Services Associate. The department may want to ask the Warehouse to sign the confirmation email showing that physical custody of the capitalized asset has changed to the Warehouse.

The Fixed Assets staff will check to see if the person approving the disposal is the authorized department head for the asset being disposed. If it is not the appropriate person, the Fixed Assets staff will email the person who submitted the eDisposal (and the Warehouse) to let them know that the appropriate person has not approved the disposal and that it cannot be disposed.

Please make sure that you have completed the proper eDisposal form for capitalized assets (assets on your inventory) and the UNCG Surplus Submission form for items which are not on your inventory, before you send any surplus assets to Warehouse Operations. The Warehouse personnel need this information to accept physical custody of capitalized assets and properly track the physical disposal of capitalized assets.

Sending a capitalized asset to the Warehouse without the properly completed eDisposal form will result in the asset remaining on the department’s inventory and would be a missing item during the physical inventory process. The department is responsible for following proper disposal procedures. Neither the Warehouse staff nor the Fixed Assets staff is responsible for searching for capitalized assets in a large disposal sent to the Warehouse without proper documentation.

If the department has completed the appropriate eDisposal form, when a capitalized asset has been sent to the Warehouse or picked up by the Warehouse, the Warehouse will record the item on a Google document to track it as pending until it is physically disposed (sold or properly destroyed). Weekly, the Fixed Assets staff will use this Google document to change the organization code and location code on the Fixed Assets System for capitalized assets which have been accepted by the Warehouse (organization code 57604 Warehouse Operations and location code 097000 for the Warehouse). At that time, the asset will no longer be recorded on the department’s inventory, but will now be on the Warehouse Operations inventory and Warehouse Operations will be inventoried annually.

After a capitalized asset is properly sold or disposed, the Warehouse will record the physical disposal on the Google document and the Fixed Assets staff will use this Google document to record as disposed on the Fixed Assets System and it will no longer be on Warehouse Operations inventory.

If another department goes to the Warehouse and wants to take physical custody of a capitalized asset in the disposal process, the Warehouse personnel will initiate and sign an FA-14 Equipment Transfer Form. The New Location information should be completed by the department receiving the asset. The signed FA-14 Equipment Transfer Form should be sent to the Fixed Assets staff for processing which will move the asset to the new department’s inventory.

Destroyed Assets

When an asset is considered to have no useful value to any department at the University because it was destroyed by fire, water, etc., the department must submit an eDisposal Equipment Disposal Form with supporting documentation attached and mark for pick up if appropriate.

Note any portion or shell of a destroyed asset remaining should be sent to the Warehouse for proper disposal. Contact the Warehouse Services Associate if you have questions. Destroyed capitalized assets which have proper documentation and do not go to Warehouse Surplus will be recorded as disposed on the Fixed Assets System. Destroyed capitalized assets with proper documentation which are surplused to the Warehouse will be recorded as disposed on the Fixed Assets System when the Warehouse has sold or properly disposed of the remains of the junked for parts asset.

Example of Destroyed Documentation-Sample 1
Example of Destroyed Documentation-Sample 2
Example of Destroyed Documentation-Sample 3
Email Flowchart for Destroyed

Junked Assets

When an asset is considered to have no useful value to any department at the University, it may be retained by the department for parts. However, the department must submit an eDisposal Equipment Disposal Form with supporting documentation attached and mark for pick up if appropriate.

Note any portion or shell of a junked asset remaining should be sent to the Warehouse for proper disposal. Contact the Warehouse Services Associate if you have questions. Junked for parts capitalized assets which have proper documentation and do not go to Warehouse Surplus will be recorded as disposed on the Fixed Assets System. Junked for parts capitalized assets with proper documentation which are surplused to the Warehouse will be recorded as disposed on the Fixed Assets System when the Warehouse has sold or properly disposed of the remains of the junked for parts asset.

Example of Junked for Parts Documentation
Email Flowchart for Junked for Parts

Lost Assets

When an asset is lost (not stolen) the department must submit an eDisposal Equipment Disposal Form with supporting documentation attached.
Lost capitalized assets with proper documentation will be recorded as disposed on the Fixed Assets System.

Example of Lost Documentation
Email Flowchart for Lost

Stolen Assets

According to General Statute 114-15, if any state property has been stolen, the employee discovering the suspected theft must report the 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 University of North Carolina at Greensboro 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 department must submit an eDisposal Equipment Disposal form and attach a copy of the University Police or municipal report pertaining to a theft and containing the asset description, serial number, and/or barcode number.

Stolen capitalized assets with proper documentation will be recorded as disposed on the Fixed Assets System.

Example of Stolen Documentation
Email Flowchart for Stolen

Surplused Assets

When an asset is considered to have no useful value to any department at the University, it may be surplused by the department. The asset may or may not have value to someone other than the University. The department must submit an eDisposal Equipment Disposal Form to surplus a capitalized asset. If the department marks the asset for pick up, the Warehouse Services Associate will make arrangements to pick up and physically dispose of the asset. If the department wants to bring assets to the Warehouse for proper disposal, they may contact the Warehouse Services Associate to make the necessary arrangements. Regardless of cost, 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.

Email Flowchart for Surplused

Traded Assets

A replacement asset may be acquired when an existing asset is traded to the vendor as partial payment on the new item. The Purchasing Office must approve the item being traded. See Purchasing Policy 4.20 Trade in with Purchase for instructions. The department must submit an eDisposal Equipment Disposal Form for trade-ins when the physical custody of the asset changes to the vendor.

Traded-in capitalized assets with proper documentation will be recorded as disposed on the Fixed Assets System.

This same traded-in asset information should be put into the eMarketplace Trade-In Form and inserted into the 1st requisition line on the new asset requisition.

Example of Traded In Documentation
Email Flowchart for Trade-In

TRANSFER OUT OF FIXED ASSETS TO ANOTHER UNIVERSITY OR AGENCY

When a department wants to transfer a capitalized asset to another agency or university, the department needs the approval of the University Controller and the Contracts and Grants Officer (if purchased with grant funds). The department will submit an eDisposal Equipment Disposal form for the transfer with a memo from the department head that contains a list of the equipment bar codes, descriptions, and serial numbers attached. An email will be sent to the University Controller for his approval.

Transferred to another university or agency capitalized assets with proper documentation will be recorded as disposed on the Fixed Assets System.

Example of Transfer Out Documentation
Email Flowchart for Transfer Out

TRANSFER OF FIXED ASSETS TO ANOTHER DEPARTMENT ON CAMPUS

When a department has equipment for which it no longer has a need, but another department within the University may make use of the equipment, the department can transfer it to the other department by filling in a Form FA-14 Equipment Transfer Form.
Form FA-14 is filled in by the department initiating the transfer with the appropriate tag number, description, date, telephone number for each department, department name and number for each department, and the building and room number of the new location. The department head for the current location, as well as, the department head for the new location must sign Form FA-14. The completed Form FA-14 is sent to the Fixed Assets Section. When the Fixed Assets Section receives Form FA-14, the changes are recorded on the Fixed Asset System.

FA-14 Fixed Assets Transfer Form

When a department moves an asset from its current building or room location to a new location, it is only a location change. Form FA-14 Equipment Transfer Form can be used to notify the Fixed Assets staff to update the Fixed Assets System. The department would enter their department name as both the current location and the new location, along with the new building and/or room numbers.

An equipment swap may be initiated on Warehouse Services Swap Shop. Any capitalized asset swapped must have an FA-14 Equipment Transfer Form completed and sent to the Fixed Assets Office.

FIXED ASSET ITEMS LOCATED OFF-CAMPUS

When a department head determines that it is necessary for a University employee to take University equipment off campus, the department must complete Form FA-16 Agreement for Equipment Located Off-Campus. This form must include the item tag number, description, serial number, manufacturer, equipment cost, date of removal, expected return date, the name of the employee who has custody of the equipment, telephone number for the department head and telephone number for the employee user, and the off-campus location (address). The employee taking the equipment off campus must sign the agreement which includes this note: “As a University employee user of the equipment listed on this form, I agree to return the equipment when requested and to complete a new FA-16 Form if I still have the equipment in my possession at the annual inventory date. “While signed out to me, if the equipment is lost, stolen or damaged as a result of my negligence (carelessness) or wrong doing or not returned when requested by the Organization or Fixed Assets Section, I agree to repay the equipment’s fair market value.” The department sends the completed Form FA-16 to the Fixed Assets Section. Under no circumstances should anyone take an asset off campus before it has been bar coded. The department can request that an asset be bar coded immediately by calling 334-5938. Removal of university equipment for off-campus use without department head approval may result in the individual being prosecuted for misappropriation of state property and/or larceny.

The employee user and the department head must sign a new Form FA-16 during the physical inventory process each year. When one of these off-campus items is returned to campus, the department must put the date of the return along with the asset’s building and room location on the Form FA-16 and send it to the Fixed Assets Section so that the Fixed Asset System can be updated accordingly.

Returned/Exchanged Assets

If the department returns an asset which has been bar coded to the vendor, the department should contact the Fixed Assets Supervisor at 334-5938 and provide a copy of the credit memo or check received from the vendor.

If the department exchanges an asset that has been bar coded for a replacement asset, the department should provide Fixed Assets Office with documentation of the RMA, which should include the vendor’s reference to the exchanged asset’s serial number and it’s replacement serial number. Upon receiving this documentation, a Fixed Assets staff member will apply a barcode of the replaced asset number to the new equipment and update the serial number in the Fixed Assets record.

Record of Disposed Assets

The Fixed Asset System includes a file of disposed assets as inactive items on the Master File. The Master File is a listing of all University property, which meets the Capitalized Fixed Asset Fixed Asset criteria. The Fixed Asset Section maintains the Master File. Entering the appropriate codes on the Disposal Screen moves the item to inactive. Disposed assets remain on the Fixed Asset System until purged. If a department has any questions about a previously disposed item, please contact the Fixed Asset Section.

Missing Assets

If an item cannot be located during the physical inventory, the Fixed Assets staff will mark it as “missing” on the Fixed Assets System. After the completion of the physical inventory, the Fixed Assets staff will print a schedule of these “missing” items and send it to the department head with a request that they try to locate the items during the next ten business days. If the department subsequently locates a missing item, they should request that the Fixed Assets staff scan the item to delete the missing notation on the Fixed Assets System. If an item cannot be located, it will be included in the missing asset reports that are prepared monthly for the appropriate Vice Chancellor or Provost. Any assets still missing at June 30th are recorded as disposed “missing” with the University Controller’s approval.

Reconciliation of Fixed Assets

At the end of each month the Fixed Assets Supervisor reconciles the Fixed Assets System to the cumulative log book using Webfocus reports: FWRWFAMA Monthly Additions by Asset Type, FWRWFADP Disposals by Asset Type, FYRWFACA Fixed Assets Cost Adjustment Report, FWRWFAAA Monthly Attachments by Asset Type and FWRWFATP Summary of Fixed Asset Permanent Tags by Asset Type. The Financial Accounting Manager then reconciles the Fixed Assets System to the general ledger using the Fixed Assets Supervisor’s reconciliation, Webfocus reports such as Pending Fixed Assets (No Ptag Assigned), General Ledger Summary, and the FWRWFATP. Pending fixed assets have not yet been approved and added to the Fixed Assets System, but have been processed and fed to the Fixed Assets System as Otags and have been posted to the general ledger.

In addition, the Financial Accounting Manager reconciles accumulated depreciation on the Fixed Assets System to the general ledger, utilizing Webfocus reports: Fixed Assets Accumulated Depreciation G/L Summary, Fixed Assets Disposals by Asset Type Showing Cost and Accumulated Depreciation, FWRWFATP Summary of Fixed Asset Permanent Tags by Asset Type.

Construction in Progress (CIP), Buildings and Other Structures

Each June, the Financial Accounting Manager reviews the FWRWGCIP YTD Construction Expenditures for Repair and Replacement Projects and Capital Improvement Projects (Webfocus report), determines which projects were in CIP for the prior year and which projects should be added to the current year CIP and prepares a schedule for the University Controller’s approval. During thirteenth month, the Financial Accounting Manager calculates the current year CIP by completing the CIP schedule with the following information: prior year CIP, contract retainage, accrued payables, transfers to investment in plant, and project to date expenditures. The CIP spreadsheet includes a schedule of accrued payables for thirteenth month and a summary of open commitments by project for the CAFR and the UNCG Financial Report. The University Controller approves the final CIP schedule and the Financial Accounting Manager enters the CIP and retainage journal vouchers in thirteenth month.

Building and Other Structure Additions

Using the DOA-State Property Office & DOI –Risk Management Property Reporting forms which include the date of acceptance of a project (in service date), the Financial Accounting Manager completes the “Building/Other Structure Information Form for Additions to the Fixed Assets System (FAS) for each building and/or other structure placed in service during the fiscal year ended June 30th. The form includes the asset name, asset description, address, date placed in service, total cost, estimated useful life, FAS Ptag# assigned, FAS asset type and description, capital asset fund and account, building # from space management, CI budget code and Banprd fund. The Financial Accounting Manager calculates the total cost of each addition using the FWRWGCIP report excluding costs for equipment or any other non-capitalizable expenditures. The University Controller approves all building and other structure additions to the Fixed Assets System. The Financial Accounting Manager enters the additions to the Fixed Assets System and sends total $ amount of additions and count to the Fixed Assets Supervisor who adds them to the log book (cumulative total of $ amount of assets and asset count).

The Foundation Finance office reports any buildings sold or gifted to the University. Buildings sold to the University are recorded at the Foundation Finance Office’s book value at the time of the sale. Buildings donated to the University are recorded at the value reported on the appraisal from Advancement Services at the time of the gift. Each gift or purchased building addition is approved by the University Controller.

When the University demolishes a building, the Executive Assistant to the Vice Chancellor of Business Affairs will report the demolition to the Financial Accounting Manager. With appropriate documentation and approval of the University Controller, the Financial Accounting Manager will record the building as disposed on the Fixed Assets System and send the $ amount and count to the Fixed Assets Supervisor for removal from the cumulative log book.

When a building has been gutted and rebuilt, the original asset will be disposed on the Fixed Assets System and entered as a new asset with the appropriate total cost. The disposal and new asset addition are approved by the University Controller before the Financial Accounting Manager records the transactions on the Fixed Assets System and advises the Fixed Assets Supervisor to make the changes to the cumulative log book.

Depreciation

If necessary, the Financial Accounting Manager runs prior year depreciation in audit mode and then update mode.

The Financial Accounting Manager runs depreciation for the current fiscal year on Banprd in the audit mode for the University Controller’s review and approval. The Financial Accounting Manager randomly checks calculations. Since the Depreciation report from Banprd is not subtotaled or totaled, the Financial Accounting Manager runs a Webfocus report (from Banprd Fixed Assets System) of the total asset cost and accumulated depreciation by asset by asset type to an Excel spreadsheet before running depreciation in the update mode. With the University Controller’s approval, the Financial Accounting Manager runs depreciation in the update mode. After depreciation has posted, the Financial Accounting Manager runs the Webfocus report again by asset by asset type to an Excel spreadsheet. The two reports are combined and a calculation is made for the difference between the before and after accumulated depreciation to calculate the depreciation expense for each asset. The Financial Accounting Manager reconciles depreciation expense on the Banner Fixed Assets System to the operating ledger in thirteenth month. The Financial Accounting Manager prepares a schedule for fixed assets and accumulated depreciation for the CAFR and UNCG Financial Report which is approved by the University Controller.

Once a year, the Financial Accounting Manager runs a report of fully depreciated assets and forwards the report to the University Controller. Banner does not allow the University to change the asset type or remaining years, so no adjustments to depreciation for an asset can be made after depreciation has been recorded for it once.

For fiscal year ended June 30, 2008, the asset types and useful lives were reviewed by the Fixed Assets Supervisor and the Financial Accounting Manager based on the equipment and other structures which were fully depreciated and the useful lives recommended by the North Carolina Office of the State Controller. With the approval of the University Controller, these new asset types were created on Banprd. New asset types are added as needed with the University Controller’s approval.

Real Property Demolition

Upon demolition of property the Vice Chancellor for Business Affairs will:

  • Cause a Board of Trustees Action Item to be generated
  • Determine the conditions of acquisition and whether the State Property Office needs to be notified
  • Determine from the State Property Office whether subsequent action by the Council of State needs to be taken
  • Determine the last value assigned to the structure
  • Provide Fixed Assets with the proposed date of demolition and last known value for the structure to be demolished