DPA
MEETING NOTES
January 2004
TOPICS
FEBRUARY 2004 MEETING
PROPERTY WEB SITE TOUR
TWO-WAY COMMUNICATION IS CRITICAL
LOAN FORMS
FIXED ASSET DEFINITION
2004/2005 INVENTORY CYCLE
FEBRUARY MEETING – The February 2004 meeting will be Thursday, the 26th, 9:30-11:00 A.M. at ML-Damon Room.
PROPERTY WEB SITE TOUR – To access the Property Web site, go to http://www.fin.ucar.edu. Then click on the word “property” under “BUDGET & FINANCE.” This will take you to the UCAR Property Web site from which you can access the UCAR Property Manual, DPA Meeting Notes, Inventory schedule, and a variety of other information. If you have difficulty navigating the Property Web page, please contact Chris (ext. 8573) or Janet (ext. 8858) and let us know. We may be able to change the site so it is more user friendly. Chances are, if you have difficulty, others do as well. We appreciate your input.
LOAN FORMS – UCAR uses two types of loan forms. One is for equipment (fixed asset or non-fixed asset) loaned to an employee for use at home and the other is for equipment (fixed asset or non-fixed asset) loaned to other, non-UCAR/NCAR/UOP entities. Access them through the UCAR Property Web site. These forms should be completed BEFORE the equipment is turned over to the borrower.
The employee loan form (Equipment Loan Form for Employees) is designed so that as equipment is returned and additional equipment is loaned, the information can be added to the existing form rather that setting up a new form each time the loaned equipment changes. Complete all columns except the “Returned” columns. “Tag Number” may not be relevant if the equipment is not tagged. If the actual acquisition cost is not available (it is for all fixed assets), estimate the original cost of the equipment. The “Returned” column should be completed only when the item of equipment on that line is returned. At that time, the returned date and the employee and authorizer's initials should be entered.
The form for equipment loaned to other entities (UCAR Equipment Loan Agreement) should be completed, signed by the borrower and division, and then submitted to the Property Office for signature, all before any equipment is turned over to the borrower. The Property Administrator checks for equipment utilization guidelines or restrictions tied to the funding before signing. Some Sponsors require that UCAR seek their authorization before loaning equipment to other entities. If that is the case, the Property Administrator will obtain Sponsor approval before signing. If your division needs to change the terms of this agreement for a particular loan, contact the Property Administrator with the proposed changes before committing to them.
FIXED ASSET DEFINITION – See the UCAR Property Manual for the definition of a fixed asset. One component of that definition is that the asset must “retain its individual identity throughout its useful life. This means that it must have an individual or separate identity and retain that identity throughout its useful life. For example, computer memory is not an asset but rather is a component of a larger asset. Retaining its individual identity also means that all of the components that, together, make an asset, will remain together throughout the useful life of that asset at UCAR. A system that is disassembled and used in a variety of configurations that do not include all of the components is not one fixed asset. Just because the components are purchased together and used together for a few months, or periodically, does not make it a fixed asset. Through inventory we have learned about a few systems that do not qualify as fixed assets because they do not meet this element of the definition. We will watch requisitions more carefully and ask more questions to help divisions identify these at the point of purchase. If the separate components, or those that will remain together, meet the definition, that portion should be treated as a fixed asset. Components that do not remain together do not and should be expensed. If we discover a year later that components were charged incorrectly to 55xx object codes, a journal entry will need to be generated to transfer those costs to a 52xx object code. It is easier, of course, to correct at the point of purchase but if an error is made then, it will need to be corrected later.
2004/2005 INVENTORY CYCLE – This is a summary of the inventory process. Issues relevant to each division will be discussed in detail prior to the inventory start date. If you have questions about your division's inventory, feel free to contact the Property Office at any time.
• UCAR is required to complete a 100% inventory at least every two years per OMB Circular A-110. For each division, a 100% inventory must
• Be completed not more than two years after the previous inventory, and
• Physically access and verify 100% of the assets for which that division is accountable.
• Scheduling - The inventory “complete by” date ( Inventory Schedule on the Property Web site) is the date by which the division's inventory must be finalized. Divisions will have up to three months to complete their inventory depending on the quantity and mobility of their assets, and how long past inventories have required. Divisions may conduct their inventory anytime prior to the “complete by” date and within the two-year timeframe. For example, RAP opted to begin their inventory in April 2004, instead of July 2004, to avoid conflict with a field project that will use many of their assets. It is easier and less time-consuming to conduct the inventory while the assets are onsite.
• DPA Preparation - Prior to the inventory start date, DPAs should begin preparation.
• Notify division staff that the inventory will begin on the date specified.
• Make necessary updates to the FADB, such as Responsible Person, location, etc. The Property Office will print the Master List the day before the inventory starts. Have corrections input by then.
• Arrange for access to all assets. This may mean having someone available to gain access to a computer lab for scanning assets in that room. Arranging this in advance greatly expedites the inventory process.
• Make appointments with Responsible Persons if access to their assets requires their presence.
• Contact the Property Assistant for instructions on how to inventory assets that are not at Boulder locations.
• Materials - The Property Office will provide:
• The scanner
• The Master List, sorted by FAID unless other sort criteria is requested. Some divisions find that sorting the list by Responsible Person helps to get one persons assets done all at once. Others prefer to have it sorted by location, so they can scan all the assets one room at a time. Let the Property Office know the day before inventory begins if you have a preference.
• A list of disposed assets. This is used for reference, in case property tags are encountered that are not on the active list.
• Process –The DPA and Property Assistant will work as a team to perform the inventory and ensure compliance with inventory-related regulations.
• Scan bar-coded assets. Verify serial number, model number, manufacturer, location, and utilization. Assets no longer in use must be processed as disposals and removed from the active asset list.
• Manually inventory assets that cannot be scanned, verifying same information as above. This can occur when the bar-coded tag is not accessible to the scanner or the asset has no tag. PPE8 and PPE9 prefixes indicate no tag on asset. Write the inventory date and initials of individual who performed the inventory on the Master List as each item is inventoried.
Inventory assets at non-Boulder locations as discussed with Property Assistant (see DPA Preparation above). Follow-up weekly until closure is achieved.
Questions
or comments about this site? Contact: