MEMORANDUM

TO: All Agencies, Boards and Commissions

FROM: Steve Sulek, Acting Materiel Administrator

Paul Carlson, State Accounting Administrator

DATE: June 18, 2009

SUBJECT: Annual Physical Inventory, June 30, 2009 and Year-end Fixed Asset Procedures

In accordance with State Statute 81-1118.02 all Agencies, Boards, and Commissions are required to conduct an annual inventory of property as of June 30, the fiscal year end. This inventory shall include all items of personal property in the possession, custody, or control of each executive, department, commission, or other state agency as of June 30. These items, which meet or exceed the capitalization threshold established by each agency, are required to be entered and tracked in the NIS Fixed Assets Module. All assets with a total cost of $1,500 or greater must be capitalized. However, agencies can establish policies with capitalization thresholds at dollar amounts below $1,500 per item at their own discretion. Please note all firearms are required to be listed in NIS as fixed assets regardless of their dollar value. A copy of the NIS Auditor F/A Listing Report is to be completed and filed with the Administrative Services, Materiel Division – Surplus Property by August 31, 2009.

To ensure the State is able to accurately reflect all required fixed asset financial information, including depreciation, in year-end financial reports, and to allow your agency to provide the required annual listing of Fixed Assets, it is essential NIS Fixed Asset records are complete and accurate. To assist in this process agencies should generate the following NIS Fixed Asset Reports:

(a) Auditor F/A Listing Report (R5509273) - either by tag number or location

(b) Fixed Asset No Cost Integrity Report (R55362)

(c) Unposted Fixed Assets Transaction Report (R5512311)

The Auditor F/A Listing Report (R5509273) is the acceptable report format to be used for the required annual inventory report due by August 31, 2009.

The Fixed Asset No Cost Integrity Report (R55362) and the Unposted Fixed Assets Transaction Report (R5512311) are used to identify incomplete Asset Master Records (no costs attached) and Unposted Fixed Asset Transactions (purchase costs which have yet to be posted against the appropriate valid Asset Master Records.)

In order to run these three reports, please refer to the attachment containing full instructions along with appropriate links to the NIS training manuals. As you read these instructions, please be aware of the time deadlines for year-end processing.

This is the first year the Fixed Asset Barcode Program is to be used to perform the required annual hard count inventory. The link to the Fixed Assets Barcode Manual in the NIS fixed asset training manuals, at the bottom under lesson 7: Barcode Scanning is: http://www.das.state.ne.us/nis/trainingmanuals/810_training_manuals/fa/index.html .

When reporting the annual physical inventory of property to Surplus Property, agencies have the option of either: 1) submitting the hard copy of the "Auditors F/A Listing Report”, or 2) creating a .PDF version of this report on a CD. In either case, you must forward the report with the required certification memorandum. The memorandum must state the required physical inventory has been completed and all items have been located. If any items cannot be located, this memo should state the items that could not be located. These items need to be identified in the Asset Master Information in NIS as status code "UL" which indicates and signifies as “unable to locate”. Agencies should continue to look for these items and report to Surplus Property when found. If the agency is unable to locate the items in question, these Asset Master records may be closed through the Fixed Asset Adjustment Disposal Process. An Adjustment SPN form and written documentation of steps taken to locate these items, an assessment of what is most likely to have happened to these items, and steps taken to eliminate or reduce the possibility of repeat issues should be sent to the AS Materiel Administrator, attention David McGuire, State Surplus Property Manager. All items in a "pending" status in the equipment status column of the Asset Master Information in NIS (and on the Auditor F/A Listing Report as “pending”) do not need to be identified or explained separately as long as the required documentation is on file.

A copy of the required annual report with the certification memorandum must to be received by Surplus Property at 5001 South 14th Street by the end of business on August 31, 2009.

Questions regarding this information may be emailed to: dasmat.surplusproperty@nebraska.gov.

To quickly respond to questions or concerns sent to this email address, there will be multiple staff members monitoring and responding to emails sent to this address. Or you may contact Steve Sulek at (402) 471-2401. (General ledger, depreciation, and other accounting issues will be passed on to State Accounting.)