Fixed Asset Accounting

Fixed Asset Accounting Lets put a tag on it!

1This presentation has been developed by the Southern Illinois University Carbondale Fixed Asset department to provide guidance in property accountability on the Carbondale campus. This slideshow has been prepared to assist departmental personnel in understanding the rules and regulations of the State of Illinois regarding annual inventory, maintaining inventory records, and the disposal of State-owned equipment.

Points of InterestState regulations for PropertyEquipment DefinitionTypes of TagsTagging ProceduresFixed Assets responsibilityDepartments responsibility

This presentation will cover these key elements pertaining to Fixed Assets: State Regulations for property, definition of equipment, different tags, and the tagging procedures.2

Why we do what we doProperty belonging to SIU, regardless of value, is controlled under the provisions of the State of Illinois Property Control Act.

3Establishing property control and accountability is necessary to be compliant with the rules and regulations established by the Fixed Asset department and the State of Illinois, to provide accountability for increased security, and to establish a basis for projecting and budgeting equipment. Property belonging to SIU, regardless of value, is controlled under the provisions of the State of Illinois Property Control Act, which grants the Department of Central Management Services (also known as CMS) regulatory authority over State-owned tangible personal property.

CMS regulations state that, All equipment regardless of value shall be clearly marked to indicate that is the property of the State of Illinois.

What is equipment? Equipment = $100 or more with a life of more than 1 year.

At SIU, it is clearly understood that equipment is a special category of purchase and is maintained by the Fixed Asset department. For State purchasing (or inventory) purposes the definition of equipment is a tangible personal property with a historical cost of $100 or more that has an estimated useful life expectancy greater than one year. (Examples: computers and related peripherals, audio visual equipment, scientific devices and furniture) It also, includes all expenditures for library books. A more detailed description is given in the State Finance Act and the CMS Administrative Code.

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Why different tags?

If the Equipment amount is

> $ 500 = Silver tag

< $500 but > $100 = Blue tag

5A tag is an identifying label placed on equipment. SIU uses two types of tags to meet the States requirements. A silver bar code tag with a unique identifying number for equipment items with a historical cost of $500 or more or that is considered high risk of being stolen (example of high risk item would be adding machine/calculators, cameras, and firearms). Equipment items with a silver bar code will appear on a departments annual inventory listing.

Blue Tags that are imprinted with Property of Southern Illinois University Carbondale State of Illinois for equipment items that cost between $100 and $499.99 and not considered high risk. examples of blue tags: chairs, filing cabinets, and other office furniture. These items will not appear on a departments annual inventory log.

How does tagging effect you?The Fixed Assets department identifies equipment purchases and assigns a tag to the asset. A Tagger then visits the department to apply the silver tag.

6Equipment which is controlled and maintained on the Universitys inventory log comes from several sources. Those sources are compiled from forms provided by the department via .p-card formspurchase ordersand/or Invoice Distribution Forms.

After Fixed Assts receives payment information from Procurement Services, we identify equipment purchases and assign tags to the asset. If a silver tag is assigned, a Fixed Asset staff member visits the department to apply the silver tag. If you need to have the equipment tagged before payment has been made, please complete the Equipment Tagging Request Form and we can pre-assign the tag number.

Its important that P-card transactions be reconciled and approved promptly in order for us to receive the payment information in a timely manner.

How does tagging effect you?Blue tags are sent to the department. It is the departments responsibility to affix the tag.

If a blue tag is assigned, the tags are mailed to the department and it is the departments responsibility to affix the tag. Blue tag information does not need to be returned to the Fixed Asset department. It is the departments responsibility to maintain an internal record.7

What do our taggers do?Although it is not always possible to affix a physical tag, each asset is assigned a tag for tracking.

8In general, the Fixed Asset Accounting department staff will be responsible for affixing a SIU silver property tag on equipment items are received by the department. Departments are required to assist the Fixed Asset staff by providing access to equipment and helping with technical identification.

Livestock and library books are assigned a tag number but tags are not applied.

What do our taggers do?Tags are affixed to a non-removable, unbreakable part of the equipment.

9As a general rule, a tag will be placed on the upper-right hand corner, of a non-removable, unbreakable part of the item. If an item is unable to be tagged (for example the item is too small or surface is uneven), then the tag number or SIU (if its a blue tag) should be written or etched on the item.For example, laptop tags should not be applied to battery pack that can be removed.

What do our taggers do?Model Number

Serial Number

Manufacturer

Building/room number

10If your department purchases an item that is assigned a silver tag, a Fixed Asset tagger will visit your office. The tagger will identify themselves as a member of the Fixed Asset staff, and explain which item(s) will be tagged. The tagger is responsible for retrieving the model number, serial number, manufacturer name, building and room numbers for each piece of equipment that is being tagged.

What happens when changes occur? DeletionsLost/StolenCannibalizationTrade-InScrap on-siteTransfersInter-departmentalOther State agenciesTransfers to Surplus PropertyLoans

11Changes in your departmental inventory should be documented on the Fixed Asset forms available on the e-forms web page.

Lost/Stolen

Lost/StolenAs soon as the department notices equipment missing an Equipment Deletion Request Form must be completed.

Stolen items will be investigated by Public Safety.

Lost items will be investigated by Fixed Assets.

If an item cannot be located, it should be considered lost. If an item is lost and there is evidence of theft (such as broken lock or window), then the item should be considered stolen. If stolen, Fixed Assets will forward the form to Public Safety for further investigation. If the items are reported lost, Fixed Assets will conduct a follow-up investigation.12

CannibalizationCannibalizationThe use of parts from one item to repair another.

Prior approval from CMS is required.

Broken or obsolete computer equipment should be sent to Surplus Property.

Cannibalization is using parts from one item to repair another item. Prior approval from CMS is required. CMS will no longer approve cannibalization requests for computer equipment. Broken or obsolete computer equipment should be sent to Surplus Property.13

Trade-InTrade-InPrior approval must be obtained from Fixed Assets and CMS.

Trade-Ins are not permitted on P-card purchases.

The approved form and the requisition for the new equipment are forwarded to Purchasing.

A trade-in occurs when a vendor is willing to accept old equipment as partial payment for a new item of like nature. CMS must approve any trade-ins before the transaction occurs. Therefore, trade-ins are not permitted on P-card purchases.14

Scrap on-siteScrap on-siteRestricted use only.

The Scrap on-site transaction is for restricted use only. Please contact Fixed Assets for further information.15

TransfersInter-departmentalFrom one University Unit to another

Another State AgencyOutside of the University

Use the Equipment Transfer Request Form

16There are three types of transfers. Equipment can be transferred from one unit to another, to an outside state agency or to surplus property.

Transfers to Surplus Property Equipment Transfer to Surplus Property Request Form must be submitted to Surplus Property.

Computer hardware must be cleared of all data and Disk Swiping Label affixed.

17The Equipment transfer to Surplus Property Request form is used to transfer broken and/or obsolete equipment to Surplus Property. Computer hardware must be cleared of all data and labeled. This label is available on the Procurement Services website. The form is submitted directly to Surplus Property. Once equipment has been delivered to the Surplus Property warehouse and all signatures have been obtained, Surplus Property forwards the form to Fixed Assets for entry into AIS.

LoansUniversity property temporarily removed from the premises for University related business.

Department should keep a log of overnight or weekend use of equipment.

Equipment Loan Request Form must be on file with Fixed Assets.

18The Equipment Loan Request form is used to document the location of equipment that is temporarily removed from the premises for University related business. The department should maintain an internal log for items that are checked out overnight or over the weekend. The Equipment Loan Request Form must be on file with the Fixed Assets department.

Annual Equipment VerificationRequired by the State Property Control Act.

Update room/building changes.

Due early March of each year.

University departments are required by the State Property Control Act to conduct an annual physical inventory of equipment held within the department. Fixed Assets will distribute a list of departmental equipment to the unit officers on record at the end of January. Departments have approximately 6 weeks to conduct a physical inventory in which they are asked to verify room and buildings in which the equipment is located. Any location updates or any other discrepancies must be submitted to Fixed Assets in early March. (the specific date will be set each year).19

Points to RememberAnnual Equipment Verifications Due early March each year.

E-Forms are available on the E-Forms web page.

P-cards reconcile and submit paperwork on a timely basis. Enter information related to individual equipment items.

Data security on surplus equipment

Transfer to Surplus forms are to be sent directly to Surplus Property.

20Annual equipment verifications are due in early March

E-forms are available online at the SIU e-forms website

P-cards must be reconciled and submitted on a timely basis

All sensitive data must be removed from computer equipment before it is transferred to Surplus Property

Surplus transfers should be sent directly to Surplus Property so pickups can be scheduled efficiently

Need more? Additional Help:

AIS eLearning - Online tutorial provides a brief overview of the asset inquiry and reporting functions. http://ais.siu.edu/elearning.htm

Accounting Services Web Page Our web site contains a variety of useful information about equipment transactions, links to the appropriate e-forms, building/unit number list, and staff directory.http://www.as.siu.edu/EQUIPMENTTRANSACTIONS.html

Or E-mail us: asset@siu.edu

If you need further help with AIS asset inquiry and reporting please visit the AIS eLearning website.

For additional information not found in this presentation, visit the Equipment Transactions link on the Accounting Services website or e-mail us at asset@siu.edu.

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