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DPA MEETING NOTES
April 2003

TOPICS

ANNUAL INVENTORY OPTION
MAY 2003 MEETING
CAPITALIZING COMPUTER PERIPHERALS
DISPOSAL METHOD - SALVAGE
CIP (CONSTRUCTION IN PROGRESS) TARGET COMPLETION DATES
SCREEN CLEANUP

ANNUAL INVENTORY OPTION - As mentioned in the March meeting, divisions have the option of doing annual physical inventories instead of every two years plus responsible person updates. This is entirely up to you but for those with few assets or whose assets are stationary, you might find it saves time to inventory every year and eliminate the Responsible Person Updates.

If you choose this option, you will need to begin your inventory sometime after May 1st each year and complete it on or before July 31st, without fail. This is to accommodate yearend reporting that begin in August. Just let Janet or Chris know if you want to exercise the option. If you wish, you may try it and, if it does not save you time, switch back.

MAY 2003 DPA MEETING - The May 2003 meeting will be Thursday, May 29, 2003, 9:30-11:00 A.M. at CG2, Room 3016. We will try different CG meeting rooms over the coming months and decide which we all like best. Then we'll stick with that one, depending on availability.

Jean Hancock, or someone else from her staff, will join us in the May meeting to explain UCAR's recycle program and respond to any questions you may have about it. If you have division staff who have expressed interest in the recycle program, you might ask if they have questions or concerns they would like for you to pose on their behalf.

DISPOSAL METHOD - SALVAGE - Salvage is one of the most frequently used methods for disposing of assets at UCAR. Please review the UCAR Property Manual, Section 3-4: Disposition of Property, Salvage for instructions on how to dispose of assets by this method. To send non-fixed assets to salvage, follow the first step and then, if there is no response from a division or potential donee, contact Logistics Operations (LO) to remove the equipment. LO will send everything possible to recycle and salvage what cannot be recycled.

CAPITALIZING COMPUTER PERIPHERALS - As the variety of computer peripherals expands, it becomes necessary to clarify which can be treated as part of a fixed asset, and so capitalized (use 55xx object code) along with the whole, and which cannot.

For a peripheral to be part of an asset it must be intrinsic (belonging solely to the asset for which it was purchased) to that asset. For example, additional memory is considered intrinsic to the system for which it was purchased because it is fully dedicated to that one system. When the system is turned on, the memory is automatically part of the functioning asset. On the other hand, a fax or printer would not be considered intrinsic because neither is necessary for the system to perform its normal function.

Next, the peripheral must remain with the asset throughout the asset's useful life (usually 48-60 months) at UCAR. Inherent with this idea is that it will not be used with any other asset or non-asset for the duration of that useful life. Again, memory is dedicated to the asset on which it resides.

Therefore, additional computer memory would be part of the fixed asset and purchased in a 55xx object code, while a fax or printer would not be part of a fixed asset and should be purchased in 5280.

There are many possible configurations so if your division is purchasing peripherals whose inclusion as part of a fixed asset is not clearly definable, be sure to call the Property Office for assistance in assigning an object code.

CIP (CONSTRUCTION IN PROGRESS) TARGET COMPLETION DATES - For an explanation of CIP (construction in progress, constructed assets), see the UCAR Property Manual, Section 3-2, Fixed Asset Definition and Types, Constructed. Once construction of an asset is complete and it is placed in service, the Property Office removes it from construction status and begins depreciation. Therefore, all CIPs are tracked by a "Target Completion Date" on the FASUMM screen. Divisions are requested to provide that date when construction begins. As the Target Date approaches, the Property Office contacts the division to learn if the CIP is complete or if the Target Date needs to be extended. The Target Date may be a loose estimate and may be extended as many times as necessary. The goal is simply to make sure that the Property Office knows as soon as the asset is placed in service and the Target Date facilitates follow up for that purpose.

SCREEN CLEANUP - The Fixed Asset Database (FADB) was designed in 1995/6 and has since been minimally revised. Jennifer Griffin requested that the location information be pulled into the FAIDNT screen so that DPAs can view that along with the description, serial no., etc., rather than having to go to another screen to find that data. Her request opened the door to general discussions about how to rearrange data so that the screens are more user friendly. Based on discussions in the April meeting, we will draft some revisions and present them in the May or June meetings for approval by DPAs before having the changes made in Starburst. Thank you for your input on this topic in the meeting.

 

Contact the Property Office at anytime with questions or for assistance.
We're here to help you manage your division's property.
Janet Campbell, ext 8858, janetc@ucar.edu; Chris Knoetgen, ext 8573, knoetgen@ucar.edu