Beginning Fixed Assets

Transcription

1 Beginning Fixed Assets

2 GASB Statement 34 GASB 34 Overall Objective A governmental unit will have a set of government-wide financial statements that will present the government as a single unified entity comparable in many ways to a consolidated private-sector enterprise. A. Government entities will be required to maintain complete, accurate, and detailed records of their fixed assets, and they must generally report the depreciation of capital assets which include: buildings, vehicles, machinery, equipment, and infrastructure such as roads; bridges; sewer lines; and lighting systems. B. All of this information ties back to a set of government-wide financial statements called the Statement of Net Assets and the Statement of Activities (for counties it will be county-wide reports that the county executive s office will be responsible for compiling.) The governmental unit will also be required to complete a Management Discussion and Analysis report. i. Statement of Net Assets and the Statement of Activities These reports provide comprehensive information about the entire government, including all of it s Governmental Activities, Business-Type Activities, and Component Units. ii. Management Discussion and Analysis This report outlines the status of the government, on-going/upcoming projects, and where they are headed for the future. C. GASB34 is designed to better serve current users of governmental financial reports and attract new users whose needs were not met by current financial reporting standards. This allows banks and other financial institutions to have a better overall view of the net worth of the governmental unit when making lending decisions.

3 Asset Maint On the Fixed Assets panel, select Maintenance and Asset Maintenance. Department Class Asset # Description Tag Number The department number will be the same as the fund/function number of the asset. This allows for the corresponding G/L account numbers to be set up as defaults when entering assets. This is the general classification of assets referenced previously. Keep in mind that these are meant to be broad categories and should generally be no more than 6 to 8 classes in most offices. Follow the General Fixed Asset Account Group (GFAAG). This is a number assigned to each asset either by the user or the system as determined upon the setup of the software. This is a 30-character description of the asset. If you need more space an extended description can be given by using the F5 key. This would be the number on the fixed asset tag attached to the asset. NOTE: The fixed asset number could be the tag number assigned to the asset. If this is the case, the tag number field would not need to be used. Custodian PO Number and Amount Vendor This is the initials of the person to which the asset is assigned. This field is user-defined. These fields are accessed through the Documents screen to be discussed later. This is the party from which the asset was acquired. (The vendors pull from your LGC purchasing files.)

4 Status Condition Tax Map/Book Recording Book Acquired In Service Estimated Life Units Insurance Policy Parent Department Class Asset Location Service Contract (Service Contract) Expires (Service Contract) Vendor Manufacturer s Information The current status of the asset. Active should be the only choice you would use when keying in assets. Inactive is the other status that is available. This is the current condition of the asset (user-defined) Usually applies to assets (Real Estate) recorded in the assessor s and register s office. Same as Tax Map Book. The date the asset was obtained. This date does not affect depreciation. The date the asset actually started being used. It is recommended that this date be the same as the Acquied Date. The estimated useful life of the asset (does not affect depreciation process). For use if the depreciable life is based on something other than time such as miles, manhours, etc. (does not affect depreciation). The insurance policy number covering the asset. If nothing is entered in this field all other pertinent fields will be skipped. Insurance policies are set up in your control files. If you enter a policy number here, all of the information on that policy will pull into this screen. You have access to change any of the fields specific to this asset. This would be a previous asset from which the current asset was derived. An example would be an addition to an existing building. This is a numeric field which represents a specific location. The location can be further delineated to include a room number. The description, building, address and city/state/zip (CSZ) are defaulted from the location code. Location codes are user-defined in the control file. If the asset has a service contract, you can enter all pertinent information concerning it here. This is a unique identifier for an extended service contract/warranty. These are user defined on the control file. This is the date the service contract expires. This is who sold the service contract to you. (Pulls from Purchasing Vendor Files.) This is more information concerning the asset to more clearly distinguish it. Model # Serial # Vendor This is the model number of the asset. This is the serial number on the asset or the VIN number for vehicles. Press the F8 View key if the number is longer than the allotted space available on the display. This is the company that made the asset. (Pulls from Purchasing Vendor Files.) Warranty Expires This would be the date that the manufacturer s warranty expires.

5 Other Processes On the Fixed Assets panel, select Maintenance, Asset Maintenance and OthPrc (F9)

6 Depreciation Schedule This is the screen that provides the depreciation information relative to the asset. Schedule Frequency Schedule Status Start Date G/L Interface GASB34 Reportable Depreciation Life We have included depreciation schedules through the F2 Lookup option. Most assets will fall under Schedule 100 which is for straight line monthly depreciation. Land would not be subject to depreciation and would be schedule 300. Construction in Progress would also not be subject to depreciation and would be schedule 200. These should default in correctly based on the Class. The frequency choices include M-Monthly, L-Land (no depreciation), and N-Work in Progress (no depreciation). If you are going to depreciate your assets on an annual basis, you will still choose M- Monthly. The system will handle the depreciation either once a month, once a quarter, or once a year depending on how many times you run the calculation. Most assets will be A for active. The F2 Lookup feature shows you what other options you have. This is the date you want depreciation to start. The software defaults in the In Service date from the Asset Maint screen. This field will usually be N (No) except for those funds for enterprise activities such as Water and Sewer Funds, Landfill Funds, E-911 Funds, etc. which could be Y (Yes) if you want the program to generate the G/L entries for accumulated depreciation and depreciation expense. All governmental funds will be set to N (No). This field needs to be set to Y (Yes) if the asset is a capital asset that will be depreciated and reported for GASB 34. It will be set to N (No) if the asset will be used for tracking and inventory purposes only. This is how long the asset is to be depreciated. It can be years or months or a combination of the two.

7 Disposal This option allows you to dispose of a particular asset. The asset/information is not deleted from the system. The status is changed to disposed and you can track information related to the disposal such as method of disposal, costs, proceeds from sale, etc. Disposal Date Method Reason Sale/Disposal Price Cost This is the date the asset was actually disposed. It is also the cut-off date for depreciation This is how the asset was disposed (sold, scrapped, donated, etc.) This is why the asset was disposed (obsolete, replaced, etc.) The amount that is gained or lost from disposing of the asset If there are any costs/fees involved in disposing of the asset enter it here Documents This is where you can set up and track multiple documents related to a specific asset (purchase orders, checks, invoices, etc.). Any asset can have more than one document. If a purchase order is entered, the PO information will show on the Asset Maint. Screen.

8 G/L Accounts This is the screen wheree you will enter the general ledger account information related to the asset you are setting up. These accounts should be set up to default in when assets are entered. G/L accounts must be entered here regardless of how you answered the G/L Interface question on the previous screen. Each asset should show at least three accounts: 1) Asset, 2) Accumulated Depreciation), and 3) Depreciation Expense. The GASB34 % needs to be entered on the Depreciation Expense Account (it will be 100% unless the asset needs to be split across multiple departments.) The GASB34% should default in along with the G/L accounts. Inactivate This option allows you to change the status of an asset to inactive. Enter the Inactive Date and Reason and the status of the asset will be set to Inactive. The depreciation process will not calculate depreciation on inactivee assets until they changed back to active.

9 Miscellaneous Codes This option allows you to assign miscellaneous codes to an asset. Miscellaneous codes are user-defined in the control files. They can be set up for any tracking purpose. Each asset can carry multiple miscellaneous codes. Notes This option allows you to enter any miscellaneous notes/additional information you may have about the asset. The software generates some notes based on processes (transfers, re-numbers, etc.) These system generated notes cannot be deleted.

10 Reactivate This option allows you to change the status of an inactive asset to active. Enter the Reactivate Date and Reason and the status of the asset will be set to Active. Recording Info This option allows you to enter recording informationn about land or real estate. Iff the Class is not set up for Recording Information, this option will not be listed. Typically this option will only show up on an asset classified as land.

11 Transactions This is the screen that provides the monetary information relative to depreciation of the asset. Schedule Transaction Document Type Document Number Transaction Note Date Amount This is for the depreciation schedule referred to in the Depreciation Schedule Maintenance section. As previously stated, the predominant schedule will be Schedule 100 for straight line depreciation. The F2 Lookup function shows the types of transactions that are available. Initially the Add Asset and Salvage Value transactions will be the primary transactions used. This field is optional. It allows for the asset transaction to be referenced to an originating document supporting the asset s acquisition such as a PO, invoice or check. This field is the specific check number, PO number, etc. depending on the document type selected. This optional field allows you to provide any additional information that may be helpful in recounting the details of the transaction. This would be the date that the transaction took place. This date needs to match the acquired date when adding an asset. This is the dollar amount of the transaction.

12 Transaction History This is a history report on the specific asset that is selected. It lists every transaction that has been entered on this asset including each monthly depreciation transaction amount. Re-Number Asset On the Fixed Assets panel, select Maintenance and Re-Number Asset This allows you to assign a new number to an existing asset. All current information for the asset will be rewritten using the new number.

13 Transfers On the Fixed Assets panel, select Transfers Department Transfers Classification Transfer Date Authorization Asset Number New Status Old Dept New Dept Start by entering the Class of the asset that you want to transfer This date determines how the depreciation amounts (for this asset) will be split between the two Departments on thee Function/Activity Reports Brings in the username of the personn doing the transfer and writes it to history along with the transferr info Enter the number of the asset you want to transfer. If this transfer is causing the status of the asset to change, you can enter the new status here. You can leave this blankk which will leave the status unchanged This is the Department that the assett is in currently This is the new Department that youu want the assett transferred into Class Transfers Department Transfer Date Authorization Start by entering the Department of the asset that you want to transfer This date determines how the depreciation amounts (for this asset) will be split between the two Classes on the Capital Asset Reports Brings in the username of the personn doing the transfer and writes it to history along with the transferr info

14 Transfers (continued) Class Transfers (continued) Asset Number New Status Old Class New Class Enter the number of the asset you want to transfer If this transfer is causing the status of the asset to change, you can enter the new status here. You can leave this blankk which will leave the status unchanged This is the Class that the asset is in currently This is the new Class that you want the asset transferred into Location Transfers Department Class Transfer Date Authorization Beginning Asset Ending Asset New Status Old Location New Location Enter the Department of the asset that you want to transfer Enter the Class of the asset that you want to transfer This is the date the asset moved to the new Location Brings in the username of the personn doing the transfer and writes it to history along with the transferr info The starting asset number that you wish to transferr The ending asset number that you wish to transfer NOTE: If you only wish to transfer one asset, the Beginning Asset Number and Ending Asset Number will be the same If this transfer is causing the status of the asset to change, you can enter the new status here. You can leave this blankk which will leave the status unchanged This is the Location that the asset is in currently This is the new Location that you want the asset transferred into

15 Transfers (continued) Custodian Transfers Department Class Transfer Date Authorization Beginning Asset Ending Asset New Status Old Custodian New Custodian Enter the Department of the asset that you want to transfer Enter the Class of the asset that you want to transfer This is the date the asset was assigned to the new Custodian Brings in the username of the personn doing the transfer and writes it to history along with the transferr info The starting asset number that you wish to transferr The ending asset number that you wish to transfer NOTE: If you only wish to transfer one asset, the Beginning Asset Number and Ending Asset Number will be the same If this transfer is causing the status of the asset to change, you can enter the new status here. You can leave this blankk which will leave the status unchanged This is the Custodian that is currentlyy assigned to the asset This is the new Custodian that you want assigned to the asset

16 Depreciation Process On the Fixed Assets panel, select Processing and Depreciation Process Reset Depreciation Process This step allows you to clear the calculated depreciation amounts and recalculate depreciation if needed. This option will not clear depreciation amounts that have already been applied. Once the Apply Depreciation option has been run, the depreciation cannot be reset. Calculate Depreciation You will have the option to select the Departments and Classes that you want to run depreciation for either by pressing enter to select individually or by pressing F9 SelectAll. Once you have made your selections, press the Esc key. You will then enter the Effective Date that you want to calculate depreciation through. NOTE: The first time that depreciation is run, the Effective Date needs to be entered for the year prior to the compliance year. This is so that all of the make up depreciation is not mixed in with the regular depreciation for that year. This only applies to the first time depreciation is run.

17 Depreciation Process (continued) Projected Depreciation Detail This report lists the calculated depreciation for each asset. It shows every monthly depreciation amount on each asset. Check this report (or the Projected Depreciation Summary Report) for accuracy before running the Apply Depreciation option. It is not recommended to run this report the first time deprecation is run. Projected Depreciation Summary This report also lists the calculated depreciation for each asset. It lists a one-line summary of the calculated depreciation and values on each asset. Check this report (or the Projected Depreciation Detail Report) for accuracy before running the Apply Depreciation option. Apply Depreciation This option actually posts the calculated depreciation transactions to the assets. Once this option is run, the depreciation cannot be reset.

18 G/L Interface Process On the Fixed Assets panel, select Processing and G/L Inerfacee Process This process builds debit and credit entries for depreciation and posts those entries to the general ledger. These options are only used if the software needs to make accounting entries for depreciation on enterprise funds (Water and/or Sewer, Landfill, E911.) Build G/L Interfacee File This option builds the debit and credit entries for depreciation on all assets that have the G/L Interface Flag on the Depreciation Schedule marked Y es. Enter the Beginning and Ending depreciation dates to build accounting entries for and an Effective Date that the software will use as the posting date.

19 G/L Interface Process(continued) G/L Interface Report This report lists all of the transactions that the system selected for processing to the general ledger. It also displays any errors that the system found during the Build G/L Interface option. Pre-Posted Transaction Report This is another report that lists all of the transactions that the system selected for processing to the general ledger, but it does list any errors that occurred during the Build G/L Interface option.

20 G/L Interface Process(continued) Post Transactions This option actually posts the accounting entries to the general ledger. Once this option is run, any corrections to the ledger have do be done manually through a journal entry. Purchasing Interface On the Fixed Assets panel, select Processing, Purchasing Interface, Purchasing, and Interface Process This option builds a report by reading the purchasing history invoice file in checkk date order and selects the accounts that meet or exceed the minimum interfacee check amount defined in the system control. The Beginning and Ending Check Dates control the search criteria for the report. The Selected Interface File Report and Delete Selected Interface File options do not need to be run. GASB34 Reports On the Fixed Assets panel, select Reports, Assets and then GASB34 These reports are designed to help compile the new financial statements required by GASB34. They are not the actual financial statements themselves, but are a valuable tool to use in producingg them. Examples of each report are listed.

21 GASB34 Reports (continued) Capital Assets This report groups all of the assets into five categories: Land, Construction In Progress, Buildings and Improvements, Infrastructures, and Other Fixed Assets. It shows the asset balance and accumulated depreciation amounts (including increases and decreases) for a given date range. Capital Assets (Detail) This is the same report as the Capital Assets report, but it lists the amounts from each individual asset that make up the totals.

22 GASB34 Reports (continued) Function/Activity This report groups the assets by fund and function (funding source). It shows the asset balances and accumulated depreciation amounts for a given date range. It also includes additions, disposals, and transfer amounts. Function/Activity (Detail) This is the same report as the Function/Activity report, but it lists the amounts from each individual asset that make up the totals.

23 GASB34 Reports (continued) Function/Activity Infrastructure This report is the same report as the Function/Activity report, but it lists the prior accumulated depreciation for infrastructure in a separate column. This is only used if you became GASB34 compliant without your infrastructure assets and have since added your infrastructure assets after the fact Function/Activity Infrastructure (Detail) This is the same report as the Function/Activity (Detail) report, but it lists the prior accumulated depreciation for infrastructure in a separate column. Again, this is only used if you became GASB34 compliant without your infrastructure assets and have since added your infrastructure assets afterr the fact

24 Balancing GASB34 Reports First verify the totals on the Capital Asset Summary Report match the totals on the Capital Asset (Detail) Report. Do the same for the Function/Activity Reports (and Fct/Act Infrastructure Reports if applicable) The Transfer column on the Function/Activity Reports should always net back to zero Balance the Capital Asset Summary Report to the Function/Activity Summary Report The following diagram shows how to balance the Capital Assett Summary Report to the Function/Activity Summary Report Capital Assetss Report

25 Balancing GASB34 Reports (continued) Function/Activity Report

26 Prior To Installation There are certain criteria that should be established and approved by the appropriate governing bodies concerning the depreciation of fixed assets. Some of these items include: 1) Capital Asset Limit We have seen a variety of amounts chosen. It is important to consider materiality to the total financial picture in determining the limit. County Audit has stated that the government entity must set their limit so that they are booking at least 80% of their assets. Some sites have chosen $5,000 across the board as the limit. Other sites have decided to base the amount upon the type or classification of asset. 2) Asset Classifications This is a broad grouping of assets based upon their function. Unless the customer has specific reasons, classes should be limited to no more than 6 or 7. Here are a few classes we have seen to date: Land not subject to depreciation Buildings & Improvements Infrastructure Machinery & Equipment Vehicles Construction In Progress not subject to depreciation 3) Depreciable Life This is the depreciable life of the asset. The depreciable life should be the same or greater than the term of any capital notes used to allow their procurement. Here are depreciable lives we have seen to date: Buildings & Improvements 40 to 65 years Infrastructure 20 to 50 years Machinery & Equipment 3 to 15 years Heavy Equipment 10 to 15 years Vehicles 3 to 5 years

27 Local Government Corporation Local Government Corporation On the Fixed Assets panel, select Maintenance and Asset Maintenance Entering Assets 1

28 Entering Assets The required fields to enter an asset on the Asset Maint screen are: Dept, Class, Asset #, Description, and Status Other important fields include: Tag Number, Vendor, Acquired Date, In Service Date, Estimated Life, Model #, and Serial # Hitting the F4 Update key automatically pulls up the Depreciation Schedule screen Entering Assets Hit enter on Schedule and the correct Depreciation Schedule will default in for you Frequency and Schedule Status will default in correctly. They should not be changed The Start Date will default the In Service Date in from the Asset Maint screen Make sure that the G/L Interface and GASB34 Reportable flags defaulted in correctly The Depreciation Life field will default in the Estimated Life from the Asset Maint screen Hitting the F4 Update key automatically pulls up the G/L Accounts screen Entering Assets The G/L Account numbers and GASB34 Percentage should pull in here properly from the Default G/L Accounts There should not be anything that needs to be entered on this screen Hitting the F4 Update key automatically pulls up the Transactions screen 2

29 Entering Assets Enter Transaction 108 Add Asset to add the original value of the asset Enter the Date and Amount of the original value of the asset Repeat this process for Transaction 104 Salvage Value Note: The Date Field on the 108 Add Asset transaction is extremely important. It controls how the asset shows as an Increase/Addition on the GASB34 reports After hitting the F4 Update key here, you have completed entering the asset into the system. Hit Escape to bring you out of the Asset Maint/Other Processes screens Local Government Corporation On the Fixed Assets panel, select Maintenance and Asset Maintenance Asset Maintenance 3

30 Asset Maintenance Department the department number needs to be the same as the function (account) number of the asset. This allows for the corresponding G/L account numbers to be set up as defaults when entering assets Asset Maintenance Class - This is the general classification of the asset. These are meant to be broad categories and should generally be no more than 6 to 8 classes in most offices. Basic classes include: Land, Buildings & Improvements, Infrastructure, Machinery & Equipment, Vehicles, and Construction In Progress Asset Maintenance Asset # - This is a number assigned to each asset either by the user or the system as determined upon the setup of the software. Description -This is a 30-character brief description of the asset. If you need more space an extended description can be given by using the F5 key. 4

31 Tag Number - This would be the number of the fixed asset tag attached to the asset. The fixed asset number could be the tag number assigned to the asset. If this is the case, the tag number field would not need to be used. Custodian - This is the initials of the person to which the asset is assigned. This field is user-defined. To add or modify a Custodian, select F5 Options on the Custodian field PO Number/Amount - These fields are accessed through the Documents screen and the PO info is displayed here. The documents option will be discussed later. Vendor - This is the party from which the asset was acquired. If you select F2 LookUp, it will bring up the vendor lookup from Purchasing. Status This is the current status of the asset. Active should be the only choice used when keying in assets. Other statuses are controlled through processes in the software. Condition - This is the current condition of the asset (user-defined) NOTE: The required fields on the Asset Maint. screen are: Dept, Class, Asset #, Description, and Status 5

32 Tax Map BK & Recording Book Displays the tax map and recording information for land. This option is keyed in through F9 Other Processes and displayed here. If the Recording Flag field on the Class control is set to N No, the Recording Info option is not listed under F9 Other Processes on that asset Asset Maintenance Acquired Date This is the date that the asset was obtained. This date is for reporting purposes only and does not affect depreciation In Service Date - This is the date that the asset actually started being used. It is recommended that this be the same as the Acquired Date Estimated Life - The estimated useful life of the asset (does not affect depreciation process) Units & Type These fields allow you to enter life based on something other than time such as miles, hours, etc. This is for informational purposes only and does not affect depreciation Ins Policy This allows you to key in insurance policy information related to an asset. The Insurance Policy information will be automatically displayed from the information on the Ins Policy control file. To add or modify a Insurance Policy, select F5 Options on the Ins Policy field 6

33 Asset Maintenance Parent Dept, Class, & Asset This is a previous asset from which the current asset was derived. An example would be an addition to an existing building Location This is the location where the asset is located or assigned. The location information will be automatically displayed from the information on the location control file. To add or modify a locaction, select F5 Options on the Location field Srv Contr - This allows you to key in service contract information related to an asset. The Service Contract information will be automatically displayed from the information on the Service Contract control file. To add or modify a Service Contract, select F5 Options on the Location field Asset Maintenance Model # - This field is used to track the model number of the asset Serial # - This field is used to track the serial number of the asset. For vehicles this will be the VIN #. If the serial number is too long to view on the screen, select F8 View to display the entire number on screen 7

34 Vendor This is the vendor number assigned to the entity that manufactured the asset Warranty Expires This is the date the manufacturer s warranty will expire. There is a Warranty Expiration report that keys off of this field Disposal & Method Disposal date and method are displayed here once the asset is disposed. These fields are display only and are not accessible Local Government Corporation From the Asset Maint. screen, select OthPrc(F9) and Depr Schedule Depreciation Schedule 8

35 Depreciation Schedule Schedule - Most assets will fall under Schedule 100 which is for straight line monthly depreciation. Land is not be subject to depreciation and would be schedule 300. Construction in Progress is also not subject to depreciation and would be schedule 200. These should default in correctly based on the Class. Depreciation Schedule Frequency -The frequency choices include M- Monthly, L-Land (no depreciation), and N-Work in Progress (no depreciation). If you are going to depreciate your assets on an annual basis, you will still choose M-Monthly. The system will handle the depreciation either once a month, once a quarter, or once a year depending on how many times you run the calculation. Depreciation Schedule Schedule Status The Schedule Status will default in appropriately based on the Schedule. Most assets will be A for active. Start Date This is the date you want depreciation to start. The software defaults in the In Service date from the Asset Maint screen. 9

36 Depreciation Schedule G/L Interface - This field will usually be N (No) except for those funds for enterprise activities such as Water and Sewer Funds, Landfill Funds, E-911 Funds, etc. which could be Y (Yes) if you want the program to generate the G/L entries for accumulated depreciation and depreciation expense. All assets in governmental funds should be set to N (No). Depreciation Schedule GASB34 Reportable - This field needs to be set to Y (Yes) if the asset is a capital asset that will be depreciated and reported for GASB 34. It will be set to N (No) if the asset will be used for tracking and inventory purposes only. Depreciation Life - This is the length of time the asset is to be depreciated. The depreciable life of like assets needs to be the same. If the Estimated Life is entered on the Asset Maint. screen, then it will default in here for you. Local Government Corporation 10

37 Disposing Assets General Info When an asset is disposed, it is not deleted from the system. The asset status is changed from Active to Disposed, but all of the asset history remains The Disposal Date is the cut off date for depreciation (as long as depreciation has not already been ran) Disposals are reflected in the Decreases column on the Capital Asset Reports and in the Disposals column on the Function/Activity Reports Disposals need to be kept current to avoid overstating depreciation on disposed assets From the Asset Maint. screen, select OthPrc(F9) and Disposal Disposing Assets Disposing Assets Disposal Date This is the date the asset was actually disposed. It is also the cut-off date for depreciation Method This is how the asset was disposed (sold, scrapped, donated, etc.) Reason This is why the asset was disposed (obsolete, replaced with new, etc.) 11

38 Disposing Assets Sale/Disposal Price The amount that is gained or lost from disposing of the asset is entered here Cost If there are any costs/fees involved in disposing of the asset enter it here How Do Disposals Affect Depreciation? If depreciation has not been ran prior to disposal, the software will only calculate depreciation up to the Disposal Date If depreciation has alreay been ran prior to disposal, the software does not back out the overstated depreciation after the Disposal Date (those depreciation transactions have already been posted to the history file) Disposals need to be kept current to avoid overstating depreciation on disposed assets Disposing Assets Local Government Corporation 12

39 Documents From the Asset Maint. screen, select OthPrc(F9) and Documents Documents Documents - This is where you can set up and track multiple documents related to a specific asset (purchase orders, checks, invoices, etc.). Any asset can have more than one document. If a purchase order is entered, the PO information will show on the Asset Maint. Screen. Local Government Corporation 13

40 From the Asset Maint. screen, select OthPrc(F9) and G/L Accounts Asset G/L Accounts Asset G/L Accounts These accounts should be set up to default in when assets are entered. G/L accounts must be entered here regardless of how you answered the G/L Interface question on the Depreciation Schedule screen. Each asset should show at least three accounts: 1) Asset, 2) Accumulated Depreciation, and 3) Depreciation Expense. The GASB34 % on the Depreciation Expense Account should also default in (it will be 100% unless the asset needs to be split across multiple departments.) Local Government Corporation 14

41 Inactivate From the Asset Maint. screen, select OthPrc(F9) and Inactivate Inactivate This option allows you to change the status of an asset to inactive. Enter the Inactive Date and Reason and the status of the asset will be set to Inactive. The depreciation process will not calculate depreciation on inactive assets until they are changed back to active. Local Government Corporation 15

42 From the Asset Maint. screen, select OthPrc(F9) and Miscellaneous Codes Miscellaneous Codes Miscellaneous Codes This option allows you to assign miscellaneous codes to an asset Miscellaneous codes are user-defined in the control files They can be set up for any tracking purpose Each asset can carry multiple miscellaneous codes Local Government Corporation 16

43 Notes From the Asset Maint. screen, select OthPrc(F9) and Notes Notes This option allows you to enter any miscellaneous notes/additional information you may have about the asset The software generates some notes based on processes (transfers, re-numbers, etc.) These system generated notes cannot be deleted Local Government Corporation 17

44 Reactivate From the Asset Maint. screen, select OthPrc(F9) and Reactivate Reactivate This option allows you to change the status of an inactive asset to active Enter the Reactivate Date and Reason and the status of the asset will be set to active. The depreciation process will now calculate depreciation on this asset Local Government Corporation 18

45 Transactions From the Asset Maint. screen, select OthPrc(F9) and Transactions Transactions Transaction - The F2 Lookup function shows the types of transactions that are available. Initially the Add Asset and Salvage Value transactions will be the primary transactions used. Transaction Notes - This optional field allows you to provide any additional information that may be helpful in recounting the details of the transaction. Transactions Date - This would be the date that the transaction took place. No default date is used. This date needs to match the acquired date when adding an asset. Amount - This is the dollar amount of the transaction 19

46 Local Government Corporation Print Tags From the Asset Maint. screen, select OthPrc(F9) and Print Tags Print Tags This option allows you to print an inventory tag for the selected asset The tags print on continuous feed labels This option only prints an individual label for the selected asset, but the Print Tags option on the Other panel allows printing individually or by Dept & Class 20

47 Local Government Corporation From the Asset Maint. screen, select OthPrc(F9) and Transaction History Transaction History Transaction History This is a history report on the specific asset that is selected. It lists every transaction that has been entered on this asset including each monthly depreciation transaction amount 21

48 Local Government Corporation On the Fixed Assets panel, select Processing and Depreciation Process Depreciation Process Depreciation Process Reset Depreciation Process - This step allows you to clear the calculated depreciation amounts and recalculate depreciation if needed. This option will not clear depreciation amounts that have already been applied. Once the Apply Depreciation option has been run, the depreciation cannot be reset. 22

49 Depreciation Process Calculate Depreciation - You will select the Departments and Classes that you want to run depreciation for by pressing enter to select individually or by pressing F9 SelectAll. You will then enter the Effective Date that you want to calculate depreciation through. NOTE: The first time that depreciation is run, the Effective Date needs to be entered for the year prior to the compliance year. Depreciation Process Projected Depreciation Detail - This report lists the calculated depreciation for each asset. It shows every monthly depreciation amount on each asset. Check this report (or the Projected Depreciation Summary Report) for accuracy before running the Apply Depreciation option. It is not recommended to run this report the first time deprecation is run. Depreciation Process Projected Depreciation Summary - This report also lists the calculated depreciation for each asset. It lists a oneline summary of the calculated depreciation and values on each asset. Check this report (or the Projected Depreciation Detail Report) for accuracy before running the Apply Depreciation option. 23

50 Depreciation Process Apply Depreciation - This option actually posts the calculated depreciation transactions to the assets. Once this option is run, the depreciation cannot be reset. Local Government Corporation Prior Accumulated Depreciation General Info Prior Accumulated Depreciation Transaction 11 Prior Accumulated Depreciation is used to enter manual lump sum depreciation amounts on an asset The software uses the date of this transaction to update the Depreciation As Of field and also recalculates Remaining Life based on the amount This transaction is used for manually adjusting/correcting depreciation and when beginning the G/L Interface on assets in Enterprise Funds 24

51 From the Asset Maint. screen, select OthPrc(F9) and Transactions Prior Accumulated Depreciation Prior Accumulated Depreciation Transaction Select transaction 11 Prior Accumulated Depreciation Date The transaction date is very important because this date will update the Depreciation As Of field Amount Key in the amount of depreciation you wish to enter on this asset Prior Accumulated Depreciation From the Depreciation Schedule, you can see that this transaction updated the following fields: Depreciation As Of, Times Depreciated, Remaining Life, Fiscal YTD, Life To Date, and Book Value 25

52 Local Government Corporation GASB34 Reports GASB34 Reports General Info These reports are designed to help compile the financial statements required by GASB34. They are not the actual financial statements themselves, but are a valuable tool to use in producing them When running these reports at year end, customers need to take time to ensure that the Capital Asset and Function Activity reports balance On the Fixed Assets panel, select Reports, Assets and GASB34 GASB34 Reports 26

53 GASB34 Reports Capital Assets - This report groups all of the assets into five categories: Land, Construction In Progress, Buildings and Improvements, Infrastructures, and Other Fixed Assets. It shows the asset balance and accumulated depreciation amounts (including increases and decreases) for a given date range. GASB34 Reports Capital Assets (Detail) - This is the same report as the Capital Assets report, but it lists the amounts from each individual asset that make up the totals. GASB34 Reports Function/Activity - This report groups the assets by fund and function (funding source). It shows the asset balances and accumulated depreciation amounts for a given date range. It also includes Additions, Disposals, and Transfer amounts. 27

54 GASB34 Reports Function/Activity (Detail) - This is the same report as the Function/Activity report, but it lists the amounts from each individual asset that make up the totals. Balancing GASB34 Reports General Info Balancing GASB34 Reports When running these reports at year end, you need to take time to ensure that the Capital Asset and Function Activity reports balance First verify the totals on the Capital Asset Summary Report match the totals on the Capital Asset (Detail) Report. Do the same for the Function/Activity Reports (and Fct/Act Infrastructure Reports if applicable) The Transfer column on the Function/Activity Reports should always net back to zero Balance the Capital Asset Summary Report to the Function/Activity Summary Report 28

55 Capital Asset Report Balancing GASB34 Reports Function/Activity Report Balancing GASB34 Reports If the totals on the Capital Asset Summary Report are less than the totals on the Function/Activity Summary Report, check to make sure the Capital Classes are set up correctly Make sure that each Class is setup with the appropriate Group Flag Verify that the Depreciate Flag is set to Yes for Classes that are being depreciated and No for Classes that are not Balancing GASB34 Reports If the totals on the Function/Activity Summary Report are less than the totals on the Capital Asset Summary Report, run the Verify Schedule & GL Setup Report Check to make sure that all GASB34 reportable assets have the proper GL accounts and GASB34 percentage(s) 29