Capital Assets…Start to Finish

Capital Assets…Start to Finish

Capital AssetsStart to Finish Business & Financial Services Property Management Professional Development Institute 2018 AGENDA What is Property Management & Why Should You Care? Responsibilities & Roles Acquisition Tracking Disposal PROPERTY MANGEMENT OVERVIEW Record and track capital assets

Calculate depreciation Issue reports to management and sponsors Manage the physical inventory of capital CSU and sponsor-owned assets Serve as a liaison with property auditors Provide guidance to departments, faculty, and staff regarding property administration and inventory issues DID YOU KNOW? Colorado State University is accountable for Over 11,000 active capital assets for a total value of over $380M Federal $5M and Sponsor $2M

POTENTIAL PROPERTY AUDIT ISSUES Items not tagged or permanently marked with a CSU inventory number Incorrect location recorded in the Property Management Asset System Incorrect description recorded in the Property Management Asset System Employees not trained to fulfill their inventory responsibilities CAPITAL ASSETS Equipment that has an acquisition cost of $5,000 or more and has a useful life of more than one year. CONTROLLED ASSETS Items that the State Controllers Office

classify as high risk and need to be monitored by the department. HAZARDOUS MATERIALS WEAPONS EXPORT CONTROL SENSITIVE DATA HIGH THEFT ASSETS Who is responsible for the management of CSUs property? EVERYONE IS! ROLES

Procurement, Sponsored Programs, Property Management, Surplus Property Accountable Property Officer (APO) Department Property Contact (DPC) Responsible Party ACQUISITION TRACKING DISPOSAL ACQUISITION There are multiple ways to acquire capital assets.

1. Purchase Orders 2. Transferred-In 3. Direct Donations 4. Loaned to CSU 5. Gift-in-Kind Completing a Requisition To purchase capital assets you will need toPur complete a requisition document in Kuali. cha The following items will help get your se requisition approved so it can become a Or Purchase Order.

der s Using the correct object code Line item your requisition to match the quote Completing the Capital Asset Tab Uploading quotes from Shop Catalog (when used) O T H Direct Donation equipment is usually given to CSU and the E donor waives any tax write-off advantage and may not be

R given recognition for the donation. M Loaned to CSU equipment is usually provided by the federal E government, sponsor, or a vendor for a specific amount of time T and needs to be returned after that time period. H O D S Transferred-In equipment is usually brought in when a professor transfers to CSU from another institution and brings equipment with them. The following paperwork is required for

incoming property: A signed Letter of Release and a signed Letter of Acceptance listing all incoming equipment. A Copy of the Loan Agreement (for loaned). O T H E R M E T H O

D S Incoming Property Declaration Form O T H E R M E T H O D S

O Gift-In-Kind consists of Non-Monetary Gifts T that go through the CSU Advancement Office. H The donor receives stewardship recognition E and may be eligible for a tax write-off. R Advancement forwards Property M Management a monthly report and Property E sets up capital assets from the report. T H O D S

ACQUISITION TRACKING DISPOSAL TRACKING Asset Decal Maintenance Movement Inventory Process Property Management

A S S E T D E C A L Asset Decal Who knows where the asset is located? Fabricated assets (work-in-progress (WIP) assets). Fabricated models not lasting a year and deliverables should not be capitalized.

Capitalize the WIP upon completing the asset and not waiting until the 53 is closed or closing. A S S E T D E C A L

Asset Decal Asset Representative First Number on the Tag Indicates Title (Owner) 2 5 6 7 8

9 and 3 = CSU owned = Sponsor = Federal = Art = Leased = Department tracked Locate and Place Tag Establishes official location and asset representative Begins insurance coverage Barrier and offsite equipment requires

special processing M A I N T E N A N C E Maintenance Routine Upkeep To be logged in the

asset record Quarterly Maintenance Report Equipment out of compliance Sent to DPC and Reps Offsite Service More than 30 days requires a loan document to update property record M O V

E M E N T Movement Between Users Change of Physical Location Renovation and Relocation Checked-Out for Offsite Use Monthly loan report sent to DPC and Rep

Property Management provides trainings for step-by-step instructions on all asset edit documents INVENTORY VERIFICATION M O V E M E N T Inventory Process

IN VE NT OR Y PR OC ES S Biennial Contact + Planning Who should be involved Best practices Timeframe for completion Inventory Verification

Requirements in the event we locate un-decaled or un-declared assets Reconciling Partner with individual reps for location of missing assets Results and consequences Notification of close out meeting with department head, DPC and any reps concerned Action plan required at time of closeout Results reported to the Provost PRO PER TY MA

NA GE ME NT Property Management Assist Departments Equipment Reports 3rd Party Verification Assist with External Audits Record Retention

ACQUISITION TRACKING DISPOSAL DISPOSAL Regulations CSU Federal FAR and FMR State, County, and City Regulations CSU Electronics Recycling Program Surplus Property

Re-utilization Re-allocation Disposal Procedures Equipment Accountability Change Request (EACR) Regulations Colorado State University http:// busfin.colostate.edu/Forms/FRP/CSU_Fi nancial_Rules.pdf#zoom=100 Page 35 of Financial Rules 4.8. Surplus Property has been delegated the authority and responsibility for administering the disposal of property other than land or buildings. Departments are not authorized to

dispose of any items or equipment without prior approval from the Director of Surplus Property or his/her delegate. No department or individual should make or authorize any sale, trade-in, or donation without prior approval of Surplus Property. Federal (FAR and FMR) http://www.gsa.gov/portal/ext/public /site/FMR/file/SubchB.html/category/ 21858/hostUri/portal 45.604-1 Sales procedures. Surplus personal property that has completed screening in accordance with 45.602-3(a) shall

be sold in accordance with the policy for the sale of surplus personal property contained in the Federal Management Regulation, at part 102-38 (41 CFR part 102-38). Agencies may specify implementing procedures. R E G U L A TI O N

S State of Colorado Larimer County Fort Collins http://www.fcgov.com/ewaste/ Amendment to the City Code to prohibit disposal of electronic equipment (as defined by the State of Colorado Hazardous Waste Regulations 1007-3, Section 260.10) in the waste system. http://www.larimer.org/solidw aste/electronic_waste.htm Electronic Recycling Landfill Disposal Ban Effective Monday, July 1, 2013, a statewide electronics landfill disposal ban went into effect in Colorado. The Electronic Recycling Jobs Act prohibits

disposal of a number of electronic items in landfills and at transfer stations. http://www.colorado.gov/cs /Satellite/CDPHE-HM/CBON /1251616360802 The Colorado Solid Waste Act requires that all solid waste be disposed of, treated or recycled at designated facilities approved by both the Division and the local governing body with jurisdiction (county, city, town) in which the facility is located.

RE GU LAT ION S CSU Electronics Recycling Program http://www.green.colostate.edu/ Each year, millions of computers, monitors, cell phones, TVs and other electronics designated as "e-waste" end up in landfills in the United States. These items contain significant quantities of hazardous materials, such as lead and mercury. Surplus Property and its recycling vendor provide a secure and safe process for responsible, environmentally conscious electronics recycling.

CSU's Surplus Property will accept personal electronics recycling items from faculty, staff, and students for a standard service fee. All data containing electronic devices (cell phones, hard drives, etc.) are sanitized before destruction or re-sale. RE GU LAT ION S SUR Surplus Property PLU Asset disposals require Surplus Property to be involved S either directly or indirectly. When items are identified as

being no longer needed by the university, Surplus Property PRO will offer to sell them to the public through weekly walk-in PER sales, sealed bid, negotiated price, auction, or salvage. Items having zero market value will be recycled as scrap. TY This maximizes the value of taxpayers investment in university property and helps prevent these items from winding up in the landfill. Utilization Utilization is the practice of providing value to the university by making efficient and effective use of an asset throughout its useful life. In order to allow the best return for both the department and the universitys investment, Property Management recommends departments: Create a process for identifying any un-used or underutilized equipment that the department is directly responsible for;

Attempt to make equipment available to others within the department or building; Send idle, outdated, or obsolete equipment to Surplus Property once it is determined to be of no additional use. SUR PLU S PRO PER TY Re-utilization Did you know your department can purchase items from Surplus at a fraction of the cost of buying new? Every year this method of procurement saves the university tens of thousands of dollars!

Re-allocation Did you also know that Surplus Property reallocates proceeds back to the department that transferred the asset to them? Below is the method Surplus Property uses for determining the amount to reallocate: Surplus Property will first deduct any external fees associated with the sale of the item Then, they will retain the next $100 of the sale plus 10% thereafter capping at $500 For all cell phones, Surplus keeps the first $50 of the sale only *Currently computers and servers are exempt from reallocations based on the internal time to test and process them properly.

SUR PLU S PRO PER TY Disposal Procedures It is the departments responsibility to maintain accurate records of all items purchased with CSU funding or acquired through alternate funding, including proper disposal.

Any equipment disposal involving an active asset in Kuali, must be processed with a KFS document in a timely manner. CAM Processors are expected to process KFS documents. Before submitting an Asset Edit document to transfer an asset to surplus, check for any components and applicable accessories that may have been capitalized with the asset. If necessary, Property Management can assist with any asset separate documents or cannibalization requests. Otherwise, the asset will be retired as a whole. Prior to pickup, items should be adequately secured in order to prevent damage or theft. The department is responsible for contacting EHS to certify any property that has been in contact with any hazardous or biological contaminates is cleared, prior to submitting for disposal. An RFLE form is required. SUR PLU

S PRO PER TY Equipment External Transfer Form SUR PLU S PRO PER TY Equipment Release Request SUR PLU S

PRO PER TY Types of Disposals An Asset Edit document is used to transfer active Kuali assets to Surplus Property for disposal. This will remove the asset from the departments inventory, but wont retire the asset. Surplus Property will then schedule a time to pick up the asset. Once the asset has been disposed of, Surplus Property will submit an Asset Retirement Global document selecting the appropriate retirement method used for disposal. In some cases, assets may not actually be physically disposed of

by Surplus Property, but the asset will still need to be retired. Disposal types where the asset may not be physically transferred to Surplus Property include: cannibalization, releasing equipment to an outside entity, destroyed equipment, and software terminations. The department will need to submit the Asset Edit document and state the retirement reason they are requesting, in the Explanation field. Once the retirement reason has been confirmed (usually by an Inventory Specialist, or by Surplus Property), Surplus Property will submit the proper Asset Global Retirement document on behalf of the department. SUR PLU S PRO PER TY

Cannibalization It may be desirable and advantageous to cannibalize an asset when it cannot be economically repaired but its components or parts are usable in the repair or improvement of other items. Prior to permanently removing items from an asset, contact Property Management for assistance and authorization regarding cannibalization requests. SUR PLU S PRO

PER TY External Transfers Prior to an employee or faculty leaving your department, verify any assets that are assigned to that individual or research project. Please contact Property Management with specific requests. Once authorized, for active Kuali assets, submit an Asset Retirement Global document, reason: external transfer. SUR PLU S PRO PER

TY Trade-Ins If you have an opportunity to obtain value from a vendor for the trade-in of your equipment, SUR contact Surplus Property. Once authorized, for PLU active Kuali assets, submit an Asset Retirement Global document, reason: trade-in. S PRO PER TY Thefts

A Police Report Number is required to submit an Asset Retirement Global doc for reason: Theft. Write-Offs (Lost/Improper Disposal) An explanation of the actions taken to find the asset or documentation regarding the improper disposal and what changes have been made within the department to avoid future write-offs should be included in the notes of the Asset Retirement Global doc for reason: Write-Off (Lost/Improper Disposal). SUR PLU S PRO

PER TY Unauthorized Disposals An unauthorized disposal requires proof of the method used to dispose of an asset. If a department cannot provide proof of cannibalization, exchange, software termination, destroyed asset, vendor removal, external transfer, or trade-in, they will need to do a Write-Off instead. Also, the unauthorized disposal exception is not allowed for lost items or items that were improperly disposed of (i.e. unilaterally sold, donated, thrown away, or scrapped; even if proof is provided). Property also reserves the right to disapprove an unauthorized disposal, if it is determined that the department is abusing the unauthorized disposal exception by submitting continuous unauthorized disposals rather than obtaining prior approvals.

SUR PLU S PRO PER TY Equipment Accountability Change Request: SUR PLU S PRO PER TY

Equipment Accountability Change Request: The submitter certifies: 1. They have the authority to request disposal of equipment for their department 2. The form is completed with accurate information regarding the description, make, model and serial (often indicated as sn) 3. They have verified that the equipment listed on the form does not include active capital asset decaled items or components thereof 4. The equipment listed is free from any hazardous material or has been appropriately certified through EHS SUR PLU S PRO

PER TY CRADLE TO GRAVE SUMMARY Acquisition Movement Utilization Receiving triggers Payment Property will contact Rep. to

place the Decal Maintenan ce Inventory Disposition OTHER TRAININGS CAM Financial Documents Training Asset Management

Training Purchasing Capital Equipment CAM Processor Creating GECs and DIs Equipment Inventory SUPPORT MATERIALS http://busfin.colostate.edu/prp.aspx Business & Financial Services FPI

Manual; Section 4 Capital Construction and Property, Plant & Equipment Listserv communications Biannual newsletter Advice/guidance via phone or email FORMS REPORTS TRAINING REFERENC E THANK YOU!

Business & Financial Services Property Management Jacque Clark 491-2899 Cheri Richardson 491-7362 Laila Dillsi 491-6513 Debra Ellison 491-2270 Rachel Drenth 491-1045 Michelle Miller 491-1358

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