MEMORANDUM
TO: All
Agencies, Boards and Commissions
FROM: Paul
Carlson, State Accounting Administrator
DATE: June
9, 2008
SUBJECT: Year-End Fixed Asset Procedures & Requirements
Year-end
is fast approaching and this memo is to provide you some important information
regarding fixed assets and the required and suggested year-end processes. You are reminded of the statewide
capitalization policy: All assets over $1,500.00 must be capitalized (agency
discretion can only lower this amount).
You should run the following three
reports relative to NIS FY 7 as soon as possible:
(1) Auditor F/A Listing
Report (R5509273) - either by tag number or location
(2) Fixed Asset No Cost
Integrity Report (R55362)
(3) Unposted Fixed Asset
Transactions Report (R5512311)
These
reports need to be run for several reasons: (1) to confirm that all fixed asset
transactions are properly recorded in the Asset Master Information in the fixed
assets module; (2) to ensure fixed assets are accurately reflected in the fixed
asset ledger, so depreciation expense will be accurate on the State’s financial
statements at year-end; and 3) to ensure you have a proper listing of all fixed
assets so you can adequately report all fixed assets to the Administrative
Services Materiel Division Administrator.
These reports will provide you with the
following:
Auditor F/A
Listing Report
This report will
provide you with a listing of all fixed assets, with tag numbers and their
related costs, for your agency. For
year-end, ensure that you run this report by June 12, 2008 and again on June 25,
2008. The purpose of running this report two more times before year end is to
examine the reports to ensure they are accurate and to make any necessary
adjustments prior to running the final report. If there are fixed
assets listed on this report that are not found during the annual physical
inventory, the equipment status needs to be changed to UL (Unable to Locate),
so they can be tracked until located. The final report should be run as
soon as possible after July 1, 2008 with a date as of June 30, 2008.
The following is a link for
instructions on how to run this report.
Some special instructions to take note of:
Data
Selection:
When running this report for fiscal year-end annual physical inventory purposes,
add one line of data selection above
the “or” for object account is greater than 171500 and one line below the “or” for object account is
greater than 171500. If you add a line
of data selection, you need to ensure that you add the same line above and
below the standard “or” statement that is already in the data selection. See
number 10 of the instruction link above for more information. By adding this data selection, land and
building object accounts are excluded.
On the Processing Options:
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This
report will provide you with a list of all fixed asset tag numbers recorded in the
Asset Master Information of NIS for your agency for which there has been no
cost recorded in any year. If you have
assets listed on this report, you must determine if they need cost and correct
those needing costs by June 25, 2008 in one of three ways. (1) Match the tag
numbers of these assets with an item on the Unposted Fixed Asset Transactions
Report (discussed next) and then post the appropriate dollars to the tag
numbers with no cost in the Revise Unposted F/A Entries in Fixed Assets. (2) Research the actual cost of the asset and
input the cost into the General Ledger via a journal entry. When creating the journal entry, the debit
and credit need to be to the same business unit object combination for the same
amount (i.e. Debit 12345678.583000 for $500 and Credit 12345678.583000 for
$500). In the accounting module, approve,
and post the journal entry. After the
journal entry has posted, go to Revise Unposted F/A Entries and bring up the unposted transaction.
Post the debit to the associated tag number and pass on the credit. (3) If a tag number has no cost posted to it
and it will not be utilized, you can delete the tag number in the Asset Master
Information.
For those items purchased
on a Purchase Order prior to June 25, 2008:
1. If the item is being utilized, receive the
item in the Purchasing Module prior to June 25, 2008. Post the receipt batch (“O”) and post the
dollars to your fixed asset.
2. If the item still needs to be received and is
not being utilized, and a tag number has been created in the Asset Master
Information, the tag number should remain on the Fixed Asset No Cost Integrity
Report.
The following is a link for
instructions on how to run this report.
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This
report will identify transactions that have been coded to object accounts
580300 – 586999, but have not been posted to a tag number in the Revise Unposted F/A Entries. All unposted fixed asset transactions must
either be posted to the fixed asset system, or passed on by JUNE 25, 2008.
When passing on a fixed asset transaction, you must put the reason you are
passing in the Explanation – Remark field of the Revised Unposted F/A Entries Screen.
If there is something in this field, you can delete what is there and
enter your explanation for passing.
·
Instructions
for posting or passing on a fixed asset transaction are available on the NIS
homepage, under NIS Training Manuals and Fixed Assets. The web link is:
Cleaning
up all items on the Unposted Fixed Asset Transactions Report is required at
year-end. If all transactions are not
cleared, your agency will be contacted.
The
following is a link for instructions on how to run the Unposted Fixed Asset
Transactions Report.
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We
appreciate your cooperation and adherences to these established
guidelines. If you have any questions
about anything contained in this memorandum, please contact Amy Wilson, State
Accounting, at 471-0616, or, for any NIS data selection or processing option
questions, Julie Perez, NIS Fixed Assets Lead, at 471-0607.