Capital Assets Management
Quick Tips
General Assets
What costs can be capitalized?
What information do I need to provide on the P-req?
What is useful life, how is it determined, and how can I request a change?
How do I change equipment IACT’s when they are wrong?
I work at UIHC. Why don’t your procedures cover me? Where do I go to get information?
Trade-Ins
Can an asset be handled as a traded-in after the new asset has been recorded in Asset Management?
Tagging
What is an asset tag and what is its purpose?
Who assigns the tag number and when is it assigned?
Who affixes the tag to the asset?
Reports
Where can I get a list of my departmental assets?
What asset reports are available?
What If I need information not available on the standard CAM reports?
Physical Inventory
When and how often is physical inventory required?
Who is responsible for physical inventory?
How do I change the Departmental Representative to whom CAM sends physical inventory materials?
Federal Assets
Tracking Equipment below Minimum Capitalization Threshold
What is the minimum capitalization threshold?
How can I track equipment that doesn’t meet the minimum capitalization threshold?
Am I required to track equipment that doesn’t meet the minimum threshold?
Additional Information
Quick Tips
Add asset: found in dept; title transfer in with arriving faculty; donated; acquired from government agency?
Asset Addition Form
Change asset custodian or location?
No form -- contact CAM (Charma Wenck)
Close out a department that has a balance in Iacts 1630 through 1685?
There are assets in the dept. They will need to be transferred, deducted (if not found), or sent to Surplus. Complete the appropriate form. At the end of the month, transactions will zero out balances in the GL.
Document off-campus use of UI property?
Off-Campus Use of Property Form
Fabricated asset - Establish?
No form -- contact CAM (Jana Andrews)
Get approval for my Department to sell an asset?
Contact University Surplus
Get Replacement tag?
No form -- contact CAM (Robert Schaaf)
Purchase an asset?
Complete a Preq (purchase requisition)
Remove asset approved for sale (by University Surplus) and sold by Department?
Surplus Removal Request Form
Remove asset from department inventory: Equipment used for parts; Stolen; No longer needed?
Deductions Request Form
Request a tag-head?
No form -- contact CAM (Pamela Reed)
Request Surplus pick up of assets and/or other equipment...
UIHC Departments Only (Orgs 70-85)?
UIHC Electronic Equipment Disposal Form; UIHC Computer/Peripheral Disposal Form; UIHC Surplus Request Form (Note: do not send these UIHC-specific forms to CAM)
All Other UI Departments?
Surplus Removal Request Form
Trade-in asset for new equipment?
No form -- enter tag number and serial number (if available) on Preq when ordering new asset
Transfer asset ownership to another UI Department or Sub-department?
Internal Transfer of University Equipment Form
Transfer assets accompanying departing faculty to another institution?
Title Transfer of University Equipment Form
General Assets
What costs can be capitalized?
Starting fiscal year 2010, equipment costing more than $5,000 or software costing more than $500,000 (UIHC is $5,000 for equipment and software) with a useful life of more than one year can be capitalized. Capitalizable costs include the cost of the item as well as costs paid to a vendor for freight, installation, set-up, and/or testing. These same costs are used to determine if an expenditure meets the $5,000 or $500,000 minimum cost for capitalization (it must also have a useful life of more than one year).
The asset capitalized is an item and components that can stand-alone are not part of the asset (exception: system assets at UIHC).
Software that is not intrinsic to hardware cannot be considered in conjunction with the cost of hardware to meet the capitalization test.
Software is capitalizable on a “per seat” license cost basis.
What information do I need to provide on the Preq?
When a Requestor chooses an Iact of 6730 or 6740, the P-req provides fields for additional information that is used to set-up the asset. The Requestor should complete all applicable fields:
UI Building and Room # -- where the asset will be housed.
Asset description – please see Asset Description Memo FY2009 for additional information concerning the description.
Custodian and Custodian’s Dept/Sub-dept – who is responsible for the asset.
Trade-In – what assets, if any are being traded-in for this purchase.
Adjustments to Existing Tag # – provide tag # of the existing asset if this purchase adds to an asset currently in the asset management system.
What is useful life how is it determined, and how can I request a change?
Useful life is the length of time that a depreciable asset is expected to be useable. It is based on a profile for that group of assets. For UIHC, useful life is based on American Hospital Association guidelines. For assets outside UIHC, the useful life of a profile of assets is based on average, expected use. If you believe that an asset should have a useful life different than its assigned life, you may contact CAM (LeAnn Meeks or Jana Andrews) with a rationale for changing it.
Yes, because CVs move expenditure, they can be done in the year of acquisition as long as you do not change the IACT to or from a 6730 or 6740. Thereafter, to move assets between Departments and Sub-Departments, complete an “Internal Transfer of University Equipment Form”.
How do I change equipment IACT's when they are wrong?
Please contact CAM (Jana Andrews). If it meets capitalization guidelines, CAM will CV the expenditure and send you documentation via e-mail or campus mail.
I work at UIHC. Why don't your procedures cover me? Where do I go to get information?
University of Iowa must comply with accounting standards written by the Governmental Accounting Standards Board (GASB). UIHC Orgs 03, 70-89, 93 and 94 are covered under a UIHC Asset Capitalization Policy that follows FASB (Financial Accounting Standards Board) and AHA (American Hospital Association) guidelines and rules in addition to those of GASB. Additionally, UIHC Departments (in Orgs 70 through 85) work with HCIS and Housekeeping to maximize re-use of assets within the hospital. As a result, UIHC Departments must access internal forms in order to remove assets for surplus.
Trade-Ins
A trade-in is an asset that is picked up by a vendor in return for a proceed amount applied to the purchase of a new asset. The asset must actually leave University possession.
Can an asset be handled as a trade-in after the new asset has been recorded in Asset Management?
No, the traded asset must be worked in PSAM at the time a new asset is being entered.
Can more assets be traded-in than are being purchased?
No, it must be a one-to-one association between them, i.e. one asset traded for one new asset purchase. Additional assets traded-in, however, may be entered on the P-req. They will be retired as discards in PSAM.
What form do I use for a trade-in asset?
List assets the vendor accepts as a trade-in when ordering the replacement asset. In the Asset Management section of the P-req, list the asset tag number and, if possible, the manufacturer’s serial number of any equipment assets to be traded-in for new assets. The new equipment will be capitalized at its total value, rather than cost less the trade-in. The value of the trade-in offsets net book value for the asset traded-in.
Tagging
What is an asset tag and what is its purpose?
An asset tag (also referred to as a “UI tag”) is a metal tag to be attached to an asset for identification purposes. The tag number is recorded in the University's central database of assets (PSAM) and is used when departments complete their biennial equipment inventory. The asset tag number is also thought to be a theft deterrent, since it provides for tracking of asset information (serial number, model number, etc.) and facilitates identifying University of Iowa assets. Please note, if you need a replacement tag, the tag is a vinyl tag. The UI tag has three visible parts to it:
It displays "University of Iowa" at the top.
It has a six-digit number at the bottom.
It has a bar code in the center corresponding to the six-digit number that can be electronically scanned.
Who assigns the tag number and when is it assigned?
CAM assigns the tag number for all equipment and software assets. Unless you request a “tag-ahead”, tag numbers are assigned upon payment. This is usually about one month after set-up.
Who affixes the tag to the asset?
CAM sends most asset tags to departmental personnel, either the custodian of the asset or the individual designated as having responsibility for the department's assets. These departmental personnel have the responsibility for properly affixing the tag to the asset, verifying the information provided on a "tag card", and returning the “tag card” to CAM.
What do I do if I have equipment that meets the threshold and looks like it should be tagged but does not have an asset tag affixed to it?
If the equipment was purchased, contact CAM (Judy Clark) and provide a Purchase Order or Voucher number by which the asset was purchased. CAM can then correct the original expenditure (Iact), assign a tag number, and send the tag and “tag card” to the department.
If the equipment was acquired by gift, re-titled to the University by a Federal Agency, or received from another institution, please complete an “Additions Request Form” and send it to CAM (Charma Wenck). CAM will add the asset, assign a tag number, and send the tag and “tag card” to the department.
A "tag ahead" is the assignment of a tag number prior to the payment for the asset, i.e., prior to the time the tag is normally assigned.
When should a "tag ahead" be used?
"Tag aheads" are best used when a group of assets arrive in a department's central receiving area where tags can be applied and the “tag cards” verified prior to distribution of the assets.
How do I get a new tag when a vendor replaces an asset?
When a vendor replaces an asset at no cost for a new asset of like nature, email CAM (Robert Schaaf) to request a replacement vinyl tag that will have the same tag number as originally issued. Include in the email the tag number and any changes in model or serial #’s that has resulted in the equipment exchange.
Reports
Where can I get a list of my departmental assets?
The Capital Assets Management website allows you to run a departmental listing at a departmental or department/sub-department level using Active Asset Report Form. You can select to run this report to Excel or view it as a webpage. This will list all active assets for the department selection you entered.
You must have a HawkID to access CAM reports. They are available through the Data Access section of the Administration page of the Employee Self-Service site or from the Capital Assets Management home page.
What asset reports are available?
Asset Detail Search: Search for assets by asset identification number, tag number, serial number, or PO number. Returns details including acquisition date, accounting date, transaction date, cost, custodian information and location.
Active Asset Look-Up: Search for active assets by department, sub-department, custodian, building, location, profile, and grant #.
Asset Management Report: Report asset cost and MFK information for equipment and/or software (see cost type) by department, sub-department and date range of all assets, categorized by additions and adjustments, Transfers and Recategorizations, and Retirements and Reinstatements.
What if I need information not available on the standard CAM reports?
Standard CAM reports provide information concerning equipment and software assets only, and they do not provide information concerning depreciation. Please contact CAM (LeAnn Meeks or Jana Andrews) if you have specialized reporting requirements.
Physical Inventory
When and how often is physical inventory required?
According to the University of Iowa Operations Manual, all departments with equipment and software assets must verify them biennially. Departments in UIHC Orgs 70-85 and College of Medicine are counting inventory during fiscal year 2009. Federal assets must be verified on an annual basis. This count is performed each spring in order to have reports available for federal auditors at year-end. There are also additional counts that may be required by State of Iowa Auditors Office, Departments, or CAM.
Who is responsible for physical inventory?
The Departmental Executive Officer is responsible that the physical inventory is done on time and for certifying the physical inventory for the department.
The Departmental Representative and Custodian are responsible for inventory counts and preparation of all forms.
How do I change the Departmental Representative to whom CAM sends physical inventory materials?
Contact CAM (Charma Wenck) to update our records.
Federal Assets
Equipment purchased with funding by Federal Agencies shall be either the property of the University or the Federal Agency according to the terms of the award as determined by the Grant Accounting Office. For federal-funded assets where title remains with the Federal Agency and for federal-furnished assets, the equipment is classified as "Federal-Titled" on PSAM's Federal Asset page. Note: a federal asset is also known as a “Government-owned” asset.
How to I know if I have a Government-owned Asset?
Federal-funded assets where title vests with a Federal Agency should be noted on the P-req. CAM should be notified of the addition of federal-furnished assets via the “Statement of Government-Owned Equipment Status” by the equipment’s Custodian or contract’s Principal Investigator.
CAM will note “federal-title” status in the asset management records and send a tag denoting the Federal Agency to the Custodian. The Custodian applies this tag near the University bar code tag.
In addition to the “Agency tag”:
For Federal-furnished equipment, CAM will send the equipment’s Custodian a vinyl tag with the designation “GFE0” to be affixed directly to the left of the University bar code tag. Special treatment of Government-owned equipment may be required to fulfill specific requirements of the Federal Agency grant or award. Normally, these “Government Tags” are furnished directly to the Principal Investigator, who is responsible for placing the tag on the equipment and notifying CAM. CAM is responsible for entering the tag information on PSAM’s federal pages.
Tracking Equipment Below Minimum Capitalization Threshold
What is the minimum capitalization threshold?
Starting Fiscal Year 2010, the minimum capitalization threshold requires equipment to cost more than $5,000 and software costing more than $500,000 (UIHC is $5,000 for equipment and software) and have a useful life of more than one year.
How can I track equipment that doesn’t meet the minimum capitalization threshold?
See Tracking Equipment below Threshold for information and a spreadsheet to help you track equipment items that are not capitalized in PSAM (i.e. they are under the minimum capitalization threshold).
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Am I required to track equipment that doesn’t meet the minimum threshold?
No. Some departments already have their own processes to track equipment that falls below the minimum capitalization threshold, such as laptops, desktop computers, and cameras. CAM’s service is not designed to replace these processes, and departments are not required to use this service.
Link to the Tracking Template-Below Threshold (Excel format).
Additional Information
What if I still have questions?
The following resources are available on this website:
CAM University-Owned Equipment Procedures
Or contact CAM:
LeAnn Meeks (Assistant Director): 319-335-0103
Jana Andrews: (Sr. Accountant): 319-335-0119
Charma Wenck: (For Inventory Questions) 319-335-0118
Pamela Reed: (For Asset Setup) 319-353-2479
Robert Schaaf: (For Tagging Questions) 319-384-3436
Capital Assets Management is a department within the Finance and Operations organization
