This memo has been sent to all Agencies, Boards and Commissions

This memo has been sent to all Agencies, Boards and Commissions.

Please forward to all employees as necessary.

TO: All Agencies, Boards and Commissions

FROM: Don J. Medinger, Materiel Administrator

Paul Carlson, State Accounting Administrator

DATE: May 1, 2007

SUBJECT: Annual Physical Inventory, June 30, 2007 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 property in the possession, custody, or control of each executive, department, commission, or other state agency as of June 30. A report listing all property shall be completed and filed with the Department of Administrative Services, Materiel Division – Surplus Property by August 31, 2007.

In order to provide Materiel an accurate property listing, and to provide State Accounting with accurate Fixed Asset data, you should run the following three reports relative to FY 07 (NIS FY 06) as soon as possible:

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

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

These reports need to be run for several reasons: (1) to ensure you have a proper listing of all fixed assets so you can adequately report all property to the Materiel Division Administrator;

(2) to confirm that all fixed asset transactions are properly recorded in the General Ledger; and (3) to ensure fixed assets are accurately reflected so depreciation expense will be accurate on the State’s financial statements at year-end.

In order to run these three reports, please refer to the Attachment to this memo whereby full instructions are given along with appropriate links to the NIS training manuals. As you read these instructions, please be aware of the time deadlines that must be met for year-end processing.

A special point of note should be that all assets currently in possession of the agency that specifically meet the agency’s capitalization threshold should be listed on the “Auditor F/A Listing Report.” All assets over $1,500 must be capitalized; however, agencies, at their discretion, can lower this amount and such agencies will show assets on the report with costs less than $1,500.

For 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 (hard copy or CD) with the required certification memorandum. Such 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 within the NIS Fixed Asset module 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, Surplus Property can assist you with the procedures to remove them from the fixed assets inventory. All items indicated in a "pending" status within the NIS Fixed Asset module do not need to be identified or explained separately as long as the required documentation is on file at Surplus Property.

A copy of the required annual report with the certification memorandum should be routed via interagency mail to Gregg Yaussi, Surplus Property Manager at 5001 South 14th Street by August 31, 2007.

If you have any questions concerning this process or any other fixed asset issue, either now or in the future, please contact Gregg Yaussi (402) 471-3896. If Gregg cannot answer the question, he will refer the question to the appropriate individual for resolution.

Fixed Asset Attachment