1 / 29

Keeping up with the Clutter……

Keeping up with the Clutter……. Proper Assets Management for OEO Grants. Presented by the South Carolina Office of Economic Opportunity. Presenters:. Thomas Welch, Senior Manager of Audits Diana Graham, Auditor III. Objective:.

kera
Download Presentation

Keeping up with the Clutter……

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Keeping up with the Clutter…… Proper Assets Management for OEO Grants. Presented by the South Carolina Office of Economic Opportunity

  2. Presenters: • Thomas Welch, Senior Manager of Audits • Diana Graham, Auditor III

  3. Objective: • To provide a better understanding of the requirements of OEO for the fiscal administration of our grants specifically the requirements related to the security and maintenance of equipment purchased with federal funds.

  4. In general there are only two types of assets; those that should be capitalized and those that should not.

  5. So what is a fixed / capitalized asset? A Capitalized or Fixed Asset is a type of asset (generally larger, more expensive) that is not easily sold in the regular course of a business's operations for cash and is generally owned for its role in contributing to the business's ability to conduct business. Furthermore, it is expected that the benefits gained from the asset will extend beyond a time span of one year. * __________________________________________ * Definition provided by www.investopedia.com.

  6. So what are assets that aren’t capital assets? These items are considered non-capitalized assets. These items are your smaller or less valuable items that are not generally depreciated but are vital to the operation of your business. Examples: Chairs, desk, printers, computers, file cabinets, etc.

  7. How do I determine if an asset should be capitalized? The Board or Governing Body of the Agency is required to outline the capitalization criteria / limit, set a threshold to deem assets expendable as supplies, as well as define the useful life of general groups of assets. OEO has set its capitalization limit for Subrecipients at $5,000 or more unless the Agency has a lower limit established.

  8. Wait! What about the rules and regulations?

  9. So what does OMB have to say? OMB A-133 Compliance Supplement States: (Handout 1) “A State shall use, manage, and dispose of equipment acquired under a federal grant in accordance with state laws and procedures. Subrecipients of states who are local governments or Indian tribes shall use state laws and procedures for equipment acquired under a subgrant from a state.”

  10. So what does OMB have to say? OMB A-110 §.34 (Equipment) (Handout 2) states: • Equipment shall vest in the recipient. • Recipients shall use the equipment in the program for which it was originally required regardless of the continuation of federal funding. • Equipment records shall be retained.

  11. So what does OMB have to say? OMB A-110 §.34 (Equipment) (Handout 2) states: • Inventory of federal assets shall be taken at minimum biannually. • Assets shall be safeguarded against fraud and theft. • Assets shall be maintained properly to ensure assets remain in good condition.

  12. But OMB only discusses assets / equipment of $5,000 or more unless the Agency has a capitalization policy less than this. What about the assets that are not capitalized? Does OEO have any guidelines for this?

  13. See Handout 3. Highlights: See capitalization criteria Non-capitalization criteria for inventory purposes. Assets provided by OEO So What Are OEO’s Guidelines?

  14. So Basically …. • All equipment should be used in the program for which it was acquired or, when appropriate, other federal programs. 2. Equipment records shall be maintained for all assets provided by OEO and those assets purchased in any portion with OEO funds having a value of $500 or more unless the inventory and capitalization policy of the Agency has a lower threshold. 3. Physical inventory of equipment shall be taken at least once every two years and reconciled to the equipment records.

  15. So Basically …. • An appropriate control system shall be used to safeguard equipment. 5. Equipment shall be adequately maintained. 6. For subrecipients of OEO, OEO is responsible for ensuring assets of subrecipients are properly maintained and records are reliable to effectively track said assets.

  16. Well that is nice, but what does it mean to Me?

  17. So now that I know what is required How do I comply? • Determine your current assets that were purchased with OEO funds. • If your Agency does not have a capitalization policy create one. • Determine what assets based on this policy should be capitalized. • Prepare a record of assets ensuring the accuracy of all information provided (all OEO provided assets and all other assets purchased with OEO funds of $500 or greater).

  18. So now that I know what is required How do I comply? • Ensure that internal controls over assets are sufficient to adequately safeguard assets from fraud or theft (e.g.. insurance policies). • Seek to set up a plan that will ensure proper maintenance of equipment that will keep it operational. • Periodically inventory assets ensuring assets are properly disposed or added to the record. • Ensure disposal procedures are in compliance with federal and state regulations.

  19. How do I determine what current assets were purchased with OEO funds? • Review financial transactions to identify assets. • Determine their location. • Determine what funds paid for the asset. • Date of acquisition. • Value.

  20. What does my record of these assets have to consist of? • A description of the equipment. • Serial number, model number, or other identification number. • Funding source of equipment including the award number. • Whether the title vest in the recipient or federal government. • Acquisition date or date received.

  21. What does my record of these assets have to consist of? • Information from which the percentage of federal funding can be determined. • Location of the asset. • Condition. • Acquisition cost. • Date the Inventory was taken.

  22. Example inventory listing See Handout 4

  23. So what should I do if an asset needs to be relocated? Movement of asset notification must be made so that the listing can be updated. • Condition should be accessed prior to transfer. • Insurance implications should be considered due to the movement of assets between locations. • The new location should be evaluated to determine if the transfer is suitable for the asset.

  24. What if an asset is broken? • For assets above the capitalization criteria or provided by OEO, OEO must be notified. • For capitalized assets and assets provided by OEO, OEO will provide instructions for disposal. For all other items the Agency may dispose of the asset. • Asset must be removed from the records. Note: OMB Circular A-110 provides guidelines for capitalized equipment disposal. OEO will dispose of all capitalized equipment within these guidelines. See Handout 2.

  25. What if an asset is sold? • If it is above the capitalization criteria or provided by OEO, OEO must be notified. OEO will issue instructions for sales procedures. • For assets below the capitalization criteria the Agency may sell or dispose of the asset themselves as long as sales method provide fair competition. • Revenue generated maybe used to procure replacement property. • Asset must be removed from the records. Note: OMB Circular A-110 provides guidelines for capitalized equipment disposal. OEO will dispose of all capitalized equipment within these guidelines. See Handout 2.

  26. What if an asset is stolen? • For assets above the capitalization criteria or provided by OEO, OEO must be notified. • Insurance claims should be filed if necessary and proceeds should be used to replace the asset. • Asset must be removed from the records. Note: OMB Circular A-110 provides guidelines for capitalized equipment disposal. OEO will dispose of all capitalized equipment within these guidelines. See Handout 2.

  27. Well Ok, I have this inventory listing what do I do now?

  28. What now! • Keep the listing up to date! • Keep the internal controls in operation. • Perform routine audits of the inventory listing to ensure accuracy of information. • Ensure assets are properly maintained to ensure you get the most out of your asset.

  29. Questions?

More Related