Fixed Assets Guide

FIXED ASSET
PROCEDURES
GUIDE
FIXED ASSET PROCEDURES GUIDE
TABLE OF CONTENTS
DEFINITIONS & TERMINOLOGY...........................................................................................................1
INTERNAL CONTROL RESPONSIBILITIES.........................................................................................4
CAPITALIZATION OF ASSETS GENERAL PRINCIPLES.................................................................5
NOMENCLATURE OF FIXED ASSETS....................................................................................................7
ASSET TYPES & DEPRECIATION GUIDELINES.................................................................................8

ASSET TYPES & DEPRECIATION GUIDELINES...............................................................................8
ACCOUNT STRUCTURE & ACCOUNT INFORMATION....................................................................9
ACCOUNT RELATIONSHIPS FOR ALL FUNDS...............................................................................10
ACCOUNTING FOR THE ACQUISITION OF FIXED ASSETS..........................................................11
A. ACQUISITION OF GENERAL (GOVERNMENTAL FUND) FIXED ASSETS.........................11
B. ACQUISITION OF PROPRIETARY (ENTERPRISE FUND) FIXED ASSETS..........................11
ACCOUNTING FOR THE DISPOSAL OF FIXED ASSETS.................................................................12
A. DISPOSAL OF GENERAL (GOVERNMENTAL FUND) FIXED ASSETS...............................12
1.Without a consideration:............................................................................................................12
1.With a consideration:.................................................................................................................12
B. DISPOSAL OF PROPRIETARY (ENTERPRISE FUND) FIXED ASSETS................................13
1. Without a consideration:............................................................................................................13
1. With a consideration:.................................................................................................................13
PROCEDURES FOR ASSET ACQUISITION.........................................................................................14
ADD A NEW ASSET (FROM PENDING ASSET FILE)....................................................................14
ADD A NEW ASSET (COPY FEATURE)..........................................................................................18
ADD A NEW ASSET (ADD BASE ASSET FEATURE).....................................................................19
ADD A NEW ASSET (ADD ASSET IMPROVEMENT FEATURE)...................................................19
ASSET TRANSFERS...................................................................................................................................20
USE THE TRANSFER FEATURE TO CHANGE THE FOLLOWING INFO FOR THE SELECTED ASSET:..................20
PROCEDURES FOR ASSET TRANSFERS.......................................................................................20
ASSET DISPOSALS....................................................................................................................................21
REASONS FOR ASSET DISPOSAL.................................................................................................21
PROCEDURES FOR ASSET DISPOSAL..........................................................................................21
IF YOU NEED TO CHANGE THE COST, DEPRECIATION AMOUNT, NUMBER OF YEARS TO
DEPRECIATE, SERVICE DATE OR QUANTITY OF AN ASSET, RIGHT CLICK ON THE ASSET AND
SELECT ADJUSTMENT, NOT CHANGE...........................................................................................24
ATTACHMENT OF PROPERTY TAGS TO EQUIPMENT................................................................26
GENERATION OF GMBA EDITS DONE AFTER EACH NEW BATCH OF ASSETS ARE ENTERED,
DISPOSED, ETC................................................................................................................................ 27
ACCOUNT CONTROL RECONCILIATION SPREADSHEET..........................................................27
PHYSICAL INVENTORIES OF FIXED ASSETS..............................................................................27
USE OF FORM CCB-30 CITY OF COCOA BEACH PROPERTY CONTROL FORM.......................28
APPENDIX....................................................................................................................................................29
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ASSET MANAGEMENT II MAIN MENU LAYOUT............................................................................29
FILE MAINTENANCE MENU......................................................................................................... 29
REFERENCES AND FORMS....................................................................................................................32
REFERENCES.................................................................................................................................. 32
FORMS......................................................................................................................................................32
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DEFINITIONS & TERMINOLOGY
An asset may be defined as property that is either:
TANGIBLE consisting of items having physical substance such

as land, buildings, machinery, furniture and tools.
Or
INTANGIBLE consisting of items that lack physical substance
such as software licenses, patents copyrights and leases.
Assets also have the following characteristics or attributes:
1. They are acquired for use in operations and not for resale.
2. They are long term in nature (i.e. expected life/benefit period
exceeds one year).
3. They are separately identifiable. In the case of tangible assets,
the asset is an equipment (see below) unit.
To capitalize a cost means to consider the cost to be an asset for financial
accounting purposes. A more complete discussion of costs to be capitalized is in
a following section.
Capital expenditures are those expenditures that benefit future operating
periods by purchasing plant assets, adding to existing assets, or increasing the
efficiency or capacity of an asset.
The capital budgeting process includes planning for the initial acquisition,
major replacement or upgrade of facilities/equipment to be utilized for more than
one year. Within the capital budgeting process, the Capital Improvement
Program (CIP) is developed to forecast and approve capital requirements over a
five-year period. The capital budget funds the capital requirements for the first
(current) year of the five-year capital program.
Depreciation is an element of expense resulting from the use of long-lived
assets. It is measured by allocating the net cost (original cost less estimated
salvage value) over the estimated service life in a systematic and rational
manner. Depreciation does not provide cash for replacing assets as they wear
out. Depreciation only allocates a past cost to current & future periods.
An equipment unit is a single item, or aggregation of integrated items or parts
that form an identifiable whole.
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Government entities use Funds to report information about financial activities.
These funds are of the three general types below and the following matrix places
our funds in a generalized framework.
A. Governmental Funds are used to emphasize the sources, uses and
balances of current financial resources. In a fixed asset context, the
acquisition of assets requires the use of resources, which are recorded as
expenditures. The sales proceeds from disposal of assets provide financial
resources. These funds measure expenditures, not expenses, so
depreciation (a non-cash expense) is not recorded.
1. General Fund - Currently the City of Cocoa Beach uses one
general funding source that has fixed assets application:
001 General
2. Special Revenue Funds - Currently the City of Cocoa Beach
uses three funding sources that have fixed assets application:
106 Confiscated Property
110 Metered Parking
B. Proprietary Funds are used to emphasize the determination of net income

and changes in net assets, financial position and cash flows. These funds
measure expenses so assets in these funds are depreciated. Enterprise
Funds are proprietary funds that are used to report activity for which a fee is
charged to external users for goods or services. Currently the City of Cocoa
Beach uses three that have fixed assets application:
421 Golf Course
431 Utilities
441 Stormwater
General Fixed Assets Account Group (GFAAG) assets are purchased by

governmental funds as described above. This is an inclusive term for those
assets.
The Nomenclature of fixed assets is critical for identification purposes.
Standard descriptions provide a quick way to determine the number of (e.g.
computers) and status of (e. g. disposed, active etc.) a particular asset type.
The description field conventions are described in one of following sections.
Conversion of the database to standard descriptions is an on-going project.
Numbers are of different types for different purposes. The Fixed Asset
number is unique to an identifiable (may be tangible or intangible) asset or
trackable expense item. It may be assigned manually or by the computer at
the time of data entry. The computer will not allow assignment of duplicate
numbers. The format is 15 digits of which we are using four digits. This
number is also referred to as the Base Asset number. An ongoing project
will have several improvements added to a base asset (each improvement
will have its own Asset #) at various times. Materials purchases & contractor
progress payments are added to the base asset as improvements as they
occurred.
Property Control Numbers are assigned to all fixed assets or expense
items that are equipment units as defined above. Property Tags with a
bar-coded number are attached to these equipment units in a readily visible
area on that unit.
The salvage value of an asset is that value which remains and could be
realized (i. e. sale value as scrap) when the asset is removed from service.
Because most items bring only nominal sums at public auction, our policy is
that salvage value is always assumed to be zero.
The service life of an asset is the period of time it may be expected to last
(remain in service) before it is used up. Like assets have the same service
life. The Asset Type determines the service life in the HTE system. Page 8
contains a comprehensive explanation.
Useful life see service life
INTERNAL CONTROL RESPONSIBILITIES
The Finance Department is the custodian of asset records; Departments
have physical custody of assets and are accountable for their safekeeping.
This means that:
Individual items, equipment units, installations or facilities above
the monetary capitalization threshold of $1,000 are capitalized as
required by capital budget procedures. They are entered in the
fixed asset system, assigned property control numbers, and have
property tags affixed. Departments have physical custody and
are accountable for their safekeeping.
Items charged to expense (i. e. cost below capitalization threshold)
that are mobile and pilferable are entered in the fixed asset
system, assigned property control numbers, and have property
tags affixed. Departments have physical custody and are
accountable for their safekeeping. Examples of such items include
cameras and computer monitors.
Departments are responsible for invoice attest, filling out Property
Control Forms1 when required, and positive affirmation that
property tags have been affixed.
Finance does not pay invoices until the Property Control Forms
are properly filled out for those assets that require it.
Property tags are not assigned to sidewalks, streets, and like
assets that are not separately identifiable.
Departments maintain physical inventories by location and report
changes in status to Finance.
Finance moves disposed assets to location DISP Disposed
Asset Location. Assets that are not separately identifiable are
assigned to location CITY General City Location. These
actions facilitate department inventories by removing from location
reports those assets for which Departments have no physical
custody responsibilities. Disposal procedures and responsibilities
are addressed in a following section.
Finance will task departments with physical inventories on either a
cycle count basis or a comprehensive basis as required.
1
City of Cocoa Beach Property Control Form, No. CCB-30.
CAPITALIZATION OF ASSETS GENERAL PRINCIPLES
The primary vehicle for the acquisition of assets is the capital budgeting
process. Ideally the needed asset would be forecast in the CIP and budgeted
funds would be allocated in the current year. Fixed assets should be recorded at
cost. The cost includes both the purchase price and the ancillary charges
required to place the asset in service. The matrix below presents the costs to be
included in capitalization.
LAND BUILDINGS EQUIPMENT
Negotiated price Architect/engineering fees Cost
for plans & supervision (includes freight)
Legal Fees Cost of materials Sales tax2
Broker commissions Interest on borrowed Insurance during
funds during construction transit
Title & insurance fees Insurance for project Permits
Survey fees Demolition costs Installation and/or
assembly
Delinquent taxes All other necessary costs Modification/testing
(e.g. permits/impact fees) before actual service use
Closing costs
Preparation costs
Razing/removing
unwanted building
grading or changing
land contours
The matrix above is not intended to be all-inclusive. If a cost not reflected in the
matrix is encountered, the Assistant Finance Director will provide guidance.
The following are not capital costs
Vandalism & uninsured theft
Mistakes in installation
Fines for not obtaining proper permits
2
Supplies/equipment used in operations or capital purchases are not subject to sales tax.
Should sales tax be charged, an attempt to recover it is to be made.
An acquisition by gift is recorded at estimated fair value at the time of

acquisition.
Fair value in the case of vehicles is determined by blue book prices. In the case
of equipment, market prices of identical or similar equipment of the same age or
condition. Land or buildings could be appraised. The Assistant Finance Director
will provide guidance.
GIFT OF ASSET
Account # Title Debit Credit

901-0000-XXX-90-00 Asset Account 1,000
901-0000-280-40-20 Other Sources/Gifts/Grants 1,000
NOMENCLATURE OF FIXED ASSETS
The Prime Descriptor attempts to identify an equipment unit by a common
name related to its function. The Secondary Descriptor and Third Descriptor
refine this initial identification by providing a description of its capability or
physical attributes.
In the examples below, note how the descriptions move from the general to the
specific. Model numbers are included in those cases in which model numbers
are themselves descriptive.
Prime Descriptor Secondary Descriptor Third Descriptor
Computer Notebook/Laptop Model #/CPU
Computer Server, File Server Model #/CPU
Printer Laser, LaserJet Model #
Printer Inkjet, DeskJet Model #
Monitor Size Model #
Sedan Model Year
Trailer Type Size
Truck Type Model/Year
Saw Type Size

Specific examples:
Asset #
In this case the model
2617 Computer, Notebook, Latitude CP/233 XT number (i. e. CP 233/XT)
gives its capability
3106 Printer, DeskJet, Model 895C
2344 Sedan, Crown Victoria,1997
2576 Truck, Pickup, Ranger XLT,1992
3004 Saw, Demolition, 12, Model TS 400-12
ASSET TYPES & DEPRECIATION GUIDELINES

All assets must be classified according to type, or class as it is called in Asset Management II. This class determines
the service life, general ledger account & corresponding depreciation account to be used.
ASSET TYPES & DEPRECIATION GUIDELINES
SERVICE GENERAL ACCUMULATED
ASSET LIFE LEDGER ASSET DEPRECIATION
CLASS DESCRIPTION DEFINITION (MONTHS) ACCOUNT ACCOUNT
OWNED Land Owned Unimproved Land Owned N/A 000-0000-161-90-10 N/A
LEASED Land Leased Unimproved Land - Leased 000-0000-161-90-20
BLD Building Permanent building 480 000-0000-162-90-00 000-0000-163-90-00
I10 Impr.10 Yr. Additions to basic structure that ex- 120 000-0000-164-90-00 000-0000-165-90-00
I15 Impr.15 Yr. tend useful life or increase capacity. 180 000-0000-164-90-01 000-0000-165-90-01
INF50 Infrastructure 50 Yr. Infrastructure 600 000-0000-164-90-02 000-0000-165-90-02
COM Computer Equip Computers,, cameras, software. 36 000-0000-166-90-00 000-0000-167-90-00
COP Copier Equip Copiers and Copier Equip 60 000-0000-166-90-00 000-0000-167-90-00
EQU Equipment Equipment Units that have property 60 000-0000-166-90-00 000-0000-167-90-00
tags affixed and do not fit the COM,
ROL,COP,ROLI,or IM categories.
IM Inland Marine Equ.that is $15,000 or more that is 60 000-0000-166-90-00 000-0000-167-90-00
Insured but not ROL or ROLI
ROL Rolling Stock On-road equ. requiring a license tag 60 000-0000-166-90-00 000-0000-167-90-00
ROLI Imp.to Impr.to existing Rolling Stock 60 000-0000-166-90-00 000-0000-167-90-00
Roll.Stock
EXP Expense Items charged to an operating Expense, N/A N/A
expense account (i. e. cost below Tracking
capitalization threshold) that are Only
mobile and pilferable and have
property tags affixed
ACCOUNT STRUCTURE & ACCOUNT INFORMATION
The accounting system is based on a 14-digit account number. The accounting
structure as it relates to capital is shown below:
000 00 00 000 00 00
Object
Element
Activity
Division
Department
Fund
ACCOUNT STRUCTURE
Funds: 001 General Fund
106 Confiscated Property
110 Metered Parking
421 Golf Course

431,432,433 Utilities
441 Stormwater
Element Object Description
61 10 Land-owned
61 20 Land-leased
62 00 Buildings
63 10 Improvements other than buildings
64 10 Vehicles & Machinery
64 20 Furniture & Equipment
64 21 Computer Hardware
. 64 22 Computer Software
Revision Date: June 30, 2010 07/12/17 10:17
AM
ACCOUNT RELATIONSHIPS FOR ALL FUNDS
DEPRECIATION GAIN/LOSS RECLASS. In FY09, Gain/Loss

FUND ACCOUNT ACCOUNT ACCOUNT were replaced with A
Proceed Accts
GOLF 421-9000-519-59-00 421-9000-519-49-25 421-9000-519-69-99 421-4200-364-10-
UTILITIES 431-9000-519-59-00 431-9000-519-49-25 431-9000-519-69-99 431-4300-364-10-
STORM WA. 441-9000-519-59-00 441-9000-519-49-25 441-9000-519-69-99 441-4400-364-10-
GENERAL
FIXED 901-9000-519-59-00 001-9000-519-49-25
ASSETS
In FY09, Gain or INVESTMENT IN DESCRIPTION
Loss replaced With ASSETS
Auction Proceed
Accts.
ACCOUNT
001-0000-364-10-00 901-0000-280-00-00 Investment in General Fixe
106-2100-364-10-00 901-0000-280-20-10 Grants/Federal
110-4100-364-10-00 901-0000-280-20-20 Grants/State
901-0000-280-30-00 Inv. in Gen. Fixed Assets/F
901-0000-280-30-10 From Other Funds/Genera

901-0000-280-30-20 From Other Funds/Special
901-0000-280-30-30 From Other Funds/Special
901-0000-280-30-40 From Other Funds/Sewer F
901-0000-280-30-50 From Other Funds/Gen.Ob
901-0000-280-30-60 From Other Funds/Improve
901-0000-280-30-70 From Other Funds/Internal
901-0000-280-40-00 Invest. Gen. Fixed Assets/
901-0000-280-40-10 Other Sources/Public Impr
901-0000-280-40-20 Other Sources/Gifts & Gra
901-0000-280-40-30 Other Sources/Confiscated
901-0000-280-40-40 Other Sources/Sales Tax
901-0000-280-40-50 Other Sources/County
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ACCOUNTING FOR THE ACQUISITION OF FIXED ASSETS

A. ACQUISITION OF GENERAL (GOVERNMENTAL FUND) FIXED ASSETS
The acquisition of general fixed assets follows the sequence of events shown.
When an asset is purchased, the cost is charged (debit entry) to a capital
expense account. The payment is a credit entry to a cash account or note
payable account.
The asset accounts on the balance sheet are debit accounts, so a credit account
is required to balance the entry. For general fixed assets, an investment in asset
account is used.
PURCHASE OF ASSET
XXX-XXXX-XXX-6X-XX Capital Expense Account 1,000
XXX-0000-104-00-00 Cash/Note Payable 1,000
CAPITALIZE ASSET
901-0000-16X-90-00 Asset account 1,000
901-0000-280-XX-XX Investment in Assets 1,000
B. ACQUISITION OF PROPRIETARY (ENTERPRISE FUND) FIXED ASSETS
The acquisition of proprietary fixed assets follows the sequence of events
shown.
When an asset is purchased, the cost is charged (debit entry) to a capital
expense account. The payment is a credit entry to some cash account or a note
payable account.
For proprietary fixed assets, a reclassification account is used.
PURCHASE OF ASSET
XXX-XXXX-XXX-6X-XX Capital Expense Account 1,000

XXX-0000-104-00-00 Cash/Note Payable 1,000
CAPITALIZE ASSET
XXX-0000-16X-90-00 Asset account 1,000
XXX-9000-519-69-99 Reclassification account 1,000
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ACCOUNTING FOR THE DISPOSAL OF FIXED ASSETS
A. DISPOSAL OF GENERAL (GOVERNMENTAL FUND) FIXED ASSETS
1. Without a consideration:
Remove asset and its investment account from the accounting records.

901-0000-16X-90-00 Asset account 1,000
1. With a consideration:
Remove asset and its investment account from the accounting records.
Record cash received.
Record sale. Many used assets are sold at auctions.

XXX-0000-104-00-00 Cash 100
001-0000-364-10-00 Sale F/A/Auction Proceed 100
106-2100-364-10-00
110-4100-364-10-00
901-0000-16X-90-00 Asset account 1,000
Because governmental funds measure expenditures, not expenses, depreciation

is not recorded. The investment in assets account is debited for the full amount
of asset cost so the gain is equal to the cash received.
AM
B. DISPOSAL OF PROPRIETARY (ENTERPRISE FUND) FIXED ASSETS
1. Without a consideration:
Remove asset and its accumulated depreciation (case #1) from the
accounting records.
If the asset is not fully depreciated, record a loss (case #2) equal to the
book value of the asset.
CASE #1 FULLY DEPRECIATED
XXX-0000-16X-90-00 Accumulated Depreciation 1,000
CASE #2 NOT FULLY DEPRECIATED
XXX-0000-16X-90-00 Accumulated Depreciation 700
XXX-9000-5XX-49-25 Loss on Disposal of Assets 300
1. With a consideration:
Remove asset and its accumulated depreciation from the accounting
records.
Record cash received.
Record sale.
(IF SOLD FOR $ 400 CASH)
XXX-0000-104-00-00 Cash 400
XXX-0000-16X-90-00 Accumulated Depreciation 1000
421-4200-364-10-00 Sale of F/A/Auction 400
431-4300-364-10-00
441-4400-364-10-00
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PROCEDURES FOR ASSET ACQUISITION
ADD A NEW ASSET (FROM PENDING ASSET FILE)
(Only one user at a time)
1. After reviewing Expenditure Approval List (EAL), accountant makes
request for any necessary property control forms.
2. Access Asset Management II Module
3. Select Asset Processing Menu
4. Select Pending Assets
5. Select Subset
6. Type in Purchase Order # and hit OK
7. Then right click on highlighted line under asset description, and select
Create Asset
The following guidelines apply:

Using the purchase order inquiry function, determine if the purchase order has
been completely received, invoiced & closed to the pending file.
If it has not and the item(s) ordered fit the definition of an
equipment unit, wait until the PO is complete to process.
If it has and the item(s) ordered fit the definition of an equipment
unit, make sure to issue a property tag if one is necessary and has
not been issued for the item or items.
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The screen shows:
Asset Class : Select Group/Category/Class from drop down list
Activity description: Type a brief description of the installation process for
this asset. Ex. Install Computer
Asset ID: Leave blank- computer will assign number
Asset description: Type a brief description of the asset (See Nomenclature

On page 7).
Asset Ownership: Choose Governmental or Proprietary from drop down
Sub Account: Type in or choose from drop down
Service Date: Enter date the asset was put into service if not there
Quantity: Defaults to 1
General location: Enter Location of Asset

Site: Leave blank, we do not use this field
District: Leave blank, we do not use this field
Department: Enter the 2 digit dept. # from the G/L account # the asset
was charged to, type in or choose from drop down
Division: Enter the 2 digit dept. # & 2 digit division # from the GL
acct.# the asset was charged or to use drop down
Serial number: Enter if applicable
Model number: Enter if applicable
Company ID: Leave blank, we do not use this field

When done with all information, hit Next Screen
Do NOT hit Ok or the system will take you out of the
installation process and you will have to go back in and
make changes later
AM
The screen shows:

Work request: Leave Blank, we do not use this field
Contributed Capital: Enter amount in this field only if the item was confiscated
or donated and valued at $1000 or higher
Method of acq.: Use drop down to select, PO if by Purchase Order
Purchase Order: If using Pending Asset function, the PO # should be

there If not there and applicable, enter PO #
Check number/date: Leave Blank, we do not use this field
Bank Code: Leave Blank, we do not use this field
Costs
Purchase Cost: If using Pending Asset function, cost should be there
If not there, enter amount paid to buy the asset
Installed Cost: If using Pending Asset function, cost should be there
If not there, enter the amount paid to buy and install
Almost always, the Installed Cost is the same amount
As the Purchase Cost
Removal Cost: Enter any removal cost, almost always left blank
Salvage: Enter any salvage value, almost always left blank
Depreciation
Year-to-date: Should be blank for acquisition
Life-to-date: Should be blank for acquisition

Expected Life: Should default
Months remaining: Should default
Calculate depr. : Check this box if not already checked for capital items
Calculate excess: Leave box unchecked, we do not use this
Calculate catch up: Leave box unchecked, we do not use this
When done with all information, hit NEXT SCREEN
AM
Percent owned: Enter as 1.000 if not already defaulted
New or used: If using Pending Asset function, this should default to new
If not, enter correct status
Project number: Enter Project number if not defaulted to one and if

applicable
Manufacturer: If not defaulted to a manufacturer, use drop down to find
Manufacturer code
Commodity: This should default if using Pending asset function, not a
necessary field but ok if there
Vendor ID: Should default if from Pending, not necessary
Asset Tag Number: Enter if asset has a tag number, use 2 leading 0s
Employee ID : Leave Blank, we do not use this field
Improved Asset ID: Leave Blank if not an improvement to an existing asset
Now hit OK, installation is complete
AM
ADD A NEW ASSET (COPY FEATURE)
From the Asset Processing Menu, Go to Asset Maintenance
Make sure the Assets are displayed by Asset ID, if not, click on Asset ID box
Under Asset ID/Starting number, in the blank box on the
right, enter the 4 digit Asset number of the Asset to be
Copied (no need for leading 0s) and hit Go To
Right Click on Asset ID and go to Copy
On the Copy Asset Master screen, You can choose to
review or not review in the How to copy field.
Then choose the number or copies you want to create.
Under To Asset Default Values, if you want to change
any of the original asset info that was copied, you can
change those fields.
Under Copy there is a box to check to copy the same

Depreciation values as the copied asset to the new asset
being created. If it is a capital item, that box needs to be
Checked.
Then hit OK and OK again to get back to the Asset Main-
tenance Selection screen.
Then hit Refresh and the newly created Assets will
appear. Be sure to write the new Asset number on the
property control form.
Highlight the new assets, right click and select change
to go in and enter any other pertinent info to the new
assets. For example, for the Activity Description, type in: Add info to
copied asset. Enter the Percent owned as 1.000 and anything else
applicable. Then go to Next Screen and double check all info there,
usually no changes needed.
Then go to Additional info to type in any other necessary info such as the tag
number (with 2 leading 0s). Then hit OK and OK again.
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ADD A NEW ASSET (ADD BASE ASSET FEATURE)
From the Asset Processing Menu, Go to Asset Maintenance and click Add
This feature is used because not all assets are generated through the purchase
order/pending fixed asset file in the HTE program. It is possible to generate an
asset with a GMBA edit.
The computer assigns the next available asset number. All fields are exactly the
same as those required for adding an asset from the pending file (see pages 15
-17). The only difference is that no defaults come over from the HTE P/I
application, since it was not used. All information is entered manually.
ADD A NEW ASSET (ADD ASSET IMPROVEMENT FEATURE)
This feature is used because not all asset improvements are generated through
the purchase order/pending fixed asset file in the HTE program. It is possible to
generate an asset improvement with a GMBA edit.
In Asset Maintenance, select the proper base asset, then right click on it
and select improvements, and then Add. All fields are exactly the same as
those required for adding an improvement from the pending file (see pages 15
-17). The only difference is that no defaults come over from the HTE P/I
application, since it was not used. All information is entered manually.
AM
ASSET TRANSFERS
Use the Transfer feature to change the following info for the selected
asset:
Asset Class
Location
Fund/SubAccount
Dept./Division
PROCEDURES FOR ASSET TRANSFERS
Access Asset Processing

Select Asset Maintenance
Select the asset to be transferred, right click on it and select Transfer
SCREEN TITLE : Asset Transfer
Type description of why transferring in the Activity
Description box.
If changing asset class, enter new class info in the
To portion of the Asset Class field.
If changing asset location, enter new location in the
To portion of the Location field.
If changing asset subaccount (Fund), enter new sub
Account in the To portion of the Sub account field.
If changing asset dept., enter new dept. number in
The To portion of the Department field.
If changing the asset division, enter the 4 digit
dept./division number in the To portion of the
Division field.
Then hit OK and then Exit
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ASSET DISPOSALS
REASONS FOR ASSET DISPOSAL
Physical condition is such that repairs are either not feasible or
economically justifiable.
Assets may become technologically obsolete.
Assets may become surplus to operating requirements as a part of
a scheduled replacement program.
Assets may become surplus because of changes in operational
requirements.
PROCEDURES FOR ASSET DISPOSAL
Chapter 274 of the Florida statutes governs disposal of tangible personal
property. This means that sales and donations of City property must have
Commission approval. Public auctions are the preferred disposal method.
Procedures for asset disposal without a consideration:
Departments identify material according to the criteria shown above.
If the material is scrapped or retired in place:
They are responsible for the removal of the property tag (if
applicable) and transport of material to the disposal (if
applicable) site.
Property tags should be forwarded to Finance as well as an
E-mail confirming disposal.
If the material is donated to another organization:
They are responsible for the removal of the property tag (if
applicable) and arrangement for removal of material from
City property. They are required to justify the donation.
Departments must obtain a receipt for the property from the
receiving agency.
Departments are responsible for notification to the Finance
Department on a timely basis of the above actions.
Finance will prepare agenda (if applicable) item and reconcile records
after the disposal.
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Procedures for asset disposal with a consideration without public auction:

Departments identify material according to the criteria shown above,
secure from the buyer a letter, with the companys letterhead,
containing an unconditional commitment to purchase the goods at an
agreed price.
Department Heads forward the above letter, along with a justification
memo to Finance. This memo will specifically address the advantage
of this means of disposal over that of public auction.
Departments are responsible for notification of the Finance
Finance will prepare agenda item (if necessary) and reconcile records
after the sale proceeds are received.
Procedures for asset disposal with a consideration at public auction:
Departments identify material according to the criteria shown above.

Finance will prepare agenda item (if necessary), coordinate
movement of material to the auction site and reconcile records after
the sale proceeds are received.
Departments are responsible for notification to the Finance
Note that the trade in of assets is not considered a disposal within the meaning
or application of this procedure. Trade-ins are addressed as a part of the
purchasing procedures and are excluded here.
AM
HTE procedure:
Disposals in Asset Management II: Go to Asset Processing Menu, then

Asset Maintenance
Find the Asset to be retired, right click on it and select Retire

Activity Description Type short description such as Retire computer, etc
Work Request Leave Blank
Quantity Usually defaults to 1
Salvage Leave Blank
Retirement date Presets to current date, change if necessary to auction
date
Removal Costs Usually 0
Disposal Enter disposal method, ex. AU for Auction
When done retiring assets, use EXIT function
Then go to Asset Maintenance, click on the asset just

retired and use the Transfer function to change the
location to DISP for disposed.
AM
Additional Information:
In Asset Processing, Asset Maintenance Selection:
If you need to change the cost, depreciation amount, number of years

to depreciate, service date or quantity of an Asset, right click on the
Asset and select Adjustment, not Change.
If you need to change or add comments to an Asset, right click on the
Asset and select Comments.
If you want to see if Asset has Improvements, right click on the Asset and
select Improvements.
THERE IS AN HTE ASSET MANAGEMENT II TRAINING MANUAL ON THE

FIXED ASSET ACCOUNTANTS DESK IN THE FINANCE DEPT. WITH ALL
THE NECESSARY INFORMATION TO PROCESS FIXED ASSETS.
THERE ARE ALSO SUNGARD HTE DOCUMENTS, PROCEDURES, UPDATES

AND ADDITIONAL HELPFUL INFORMATION ETC AT:
www.MyNaviline.com , the Username is your city email address and the
Password is your HTE password. From the Client Function drop down,
you can choose, for example, Help Documentation. Most of Asset
Management II information is listed as A2.
Using the Inquiry Function:
In Asset Management II, Asset Processing, go to Asset Inquiry:

AM
Enter the Asset by description, asset number or tag number. (If you are looking
up by Asset #, go to blank Numeric asset ID box on the right and enter the 4
digit asset number and Go To). (If you are looking up by tag number, in blank
box under Tag number enter 2 leading 0s and then the tag number).
Right click on the Asset you are inquiring about:

The first Asset Inquiry screen will appear. If more info is needed, go to Next
Screen at the bottom left of the screen. To find the tag number, click on the
Inventory box at bottom left of the screen.
To find costs and depreciation info, click on the Costs box at the bottom left of
the screen.
Important Note: If you are in the Asset Processing Menu whether in Asset
Maintenance or Asset Inquiry, if you switch from one way of retrieving
an asset to another, for example, if you are looking up by Tag number and
you switch to looking up by Asset description or Asset ID, you may have to
EXIT out first and then go in and choose for ex. Asset description to get the
Asset you are looking for to come up by description. This is a glitch in the
system.
AM
ATTACHMENT OF PROPERTY TAGS TO EQUIPMENT
Property tags should be attached in a visible, conspicuous place to facilitate

inventories. In addition location should be standardized for each equipment type
to the extent possible. The matrix below provides examples:
EQUIPMENT TYPE TAG PLACEMENT

Vehicle Inside front door on drivers side
Computer equipment Visible place; near serial number plate

(CPU, Monitor & Printer, Camera, if possible
Fax Machines)
Desk set On side of file drawers
File Cabinet On front or upper side as close to eye

level as possible
AM
GENERATION OF GMBA EDITS done after each new batch of assets are
entered, disposed, etc
In Asset Management II, click on Demand Processing Menu,

Then G/L Batch Generation
Hit No for Hold
Report is submitted and printed
Look at printed report before going into GMBA
Go into GMBA and get edit batch number is printed on the Interface report
Print Edit Enter Expense accounts and Amounts on edit.

Enter any necessary Project Codes, Review for accuracy
Give to Assistant Finance Director for approval
Give copies of any property control forms of Assets that require insurance
Coverage to the Asst. City Manager
File originals in numerical order in Binders by the Safe in the Finance Dept.
ACCOUNT CONTROL RECONCILIATION SPREADSHEET
After each GMBA entry, the account control spreadsheet is updated. This sheet
is used to reconcile the fixed assets expense accounts to the general ledger at
year-end.
PHYSICAL INVENTORIES OF FIXED ASSETS
See Inventory instructions at K:\userdata\SHARED\Finance\AUDIT FY XX\

Fixed Assets\Inventory FY20XX ltr & forms.doc
AM
USE OF FORM CCB-30 CITY OF COCOA BEACH PROPERTY CONTROL

FORM
The following information is required for this form:
Description: See nomenclature section for notes on writing

description.
Location: See locations listed in Inventory Instructions
Tag: Number if tag assigned; N/A if not.
Model Number: Self-explanatory

Serial Number: Self-explanatory
Manufacturer Self-explanatory
Date of Acquisition: Self-explanatory
Purchase Order Number: Self-explanatory
Project Code: If Applicable
Signature of Custodian Self-explanatory
Date & signature of processor Person entering into fixed asset module
Form is filled out by Department and forwarded to Finance with copy of invoice.
Accounts Payable clerk files one copy with invoice and forwards one copy to
fixed assets accountant for entering and filing.
AM
APPENDIX
ASSET MANAGEMENT II MAIN MENU LAYOUT
All Menu functions EXCEPT the Asset Inquiry in the Asset Processing
Menu should be accessed by the Finance Department Only
FILE MAINTENANCE MENU Has the following 10 sub menus:

The following are available in the File Maintenance Menu
Asset Categories
Asset Classes
Asset Groups
Depreciation Rates
Employee Detail
General Location
*Generic Codes
Sub Account Index
Sub Accounts
System Control File
*Generic Codes include but are not limited to the following:

METHOD OF ACQUISITION (USER DEFINED) AQ
CONFISCATION CF
CREDIT CARD CC
DONATION DO
GMBA EDIT GM
GRANT GR
LEASED PROPERTY LS
PURCHASE OTHER THAN PO OP
PURCHASE ORDER PO
WARRANTY REPLACEMENT WR
*Generic Codes also include DISPOSAL CODES:
(USER DEFINED)
AUCTIONED AU
DESTROYED DE
DONATED DO
ENTERED IN ERROR E
RETIRED IN PLACE RE
STOLEN/THEFT ST
TRADE IN TR
ASSET PROCESSING MENU
Has the following 5 sub menus:
Asset Inquiry (For general use)
Asset Maintenance(To enter or change,etc)
Asset Transaction Inq.(Trans.history for each asset)
GL Transaction Inquiry
Pending Assets
CODE LISTING MENU

Asset Categories List
Asset Classes List
Asset Group List
Depreciation Rate list
Employee Detail list
Generic Code List
Sub Account Cost Index List
Sub account list
DEMAND REPORTS MENU

Asset Balance Usually only done at yr.end
Asset Capacity
Asset Depreciation Detail List
Asset Insurance Report
Asset Listing by Asset Class
Asset Listing by Asset ID
Asset Listing by Description
Asset Listing by Location
Asset Listing by Sub Account
Asset Transactions Report
Depreciation Schedule
Funding Source Detail
Sub Accounts w/o Cost Indexes
DEMAND PROCESSING MENU
Build Asset Balances we dont use this
GL batch generation Done after each
new batch of new assets is entered or new
batch of disposals, etcare entered.
Generates a listing in Fixed Asset module of
all assets acquired or disposed of since the
last GL batch generation. Also generates a
corresponding GMBA edit.
Period end Done at yr. end, Trial then Final
Purge assets we dont use this
Year end Changes YTD fields for
depreciation to 0 when beginning to enter assets for
a new fiscal year.
PHYSICAL INVENTORY UPLOAD (For barcode

Inventory)
Has the following 3 sub menus: We dont use these
Physical Inventory
Physical Inventory Upload
Physical Inventory Worksheet
REFERENCES AND FORMS
REFERENCES
Governmental Accounting Standards Board (GASB):
Governmental Accounting Standards Series : Statement No. 34 of the Governmental
Accounting Standards Board, Basic
Financial Statements-& Managements
Discussion & Analysis-for State &
Local Governments
Implementation Guide Guide to Implementation of Statement

No. 34 on Basic Financial Statements-&
Managements Discussion & Analysis-
for State & Local Governments
Others:
Harris, Cotherman, OKeefe & Associates: Financial Reporting Model for State &
Local Governments
(presented by Daniel J. OKeefe, CPA)
Asset Management II / Continuing Property
Records Select Training Manual SunGard HTE Inc.
Comprehensive Annual Financial Report : City of Orlando Florida FY 1999
(CAFR) Town of Davie Florida FY 1999
Kieso & Weygandt, Intermediate Accounting, (2nd Ed.), John Wiley & Sons:
New York,1974
Websites:
www.gasb.org
FORMS
City of Cocoa Beach Property Control Form CCB-30

Fixed Assets Guide

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Fixed Assets Guide

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FIXED ASSET

INTERNAL CONTROL RESPONSIBILITIES.........................................................................................4

CAPITALIZATION OF ASSETS GENERAL PRINCIPLES.................................................................5

NOMENCLATURE OF FIXED ASSETS....................................................................................................7

ASSET TYPES & DEPRECIATION GUIDELINES.................................................................................8

TANGIBLE consisting of items having physical substance such

B. Proprietary Funds are used to emphasize the determination of net income

General Fixed Assets Account Group (GFAAG) assets are purchased by

Useful life see service life

An acquisition by gift is recorded at estimated fair value at the time of

Account # Title Debit Credit

Computer Server, File Server Model #/CPU

Printer Laser, LaserJet Model #

Printer Inkjet, DeskJet Model #

Monitor Size Model #

Sedan Model Year

Trailer Type Size

Truck Type Model/Year

Saw Type Size

2344 Sedan, Crown Victoria,1997

2576 Truck, Pickup, Ranger XLT,1992

3004 Saw, Demolition, 12, Model TS 400-12

ASSET TYPES & DEPRECIATION GUIDELINES

421 Golf Course

ACCOUNT RELATIONSHIPS FOR ALL FUNDS

DEPRECIATION GAIN/LOSS RECLASS. In FY09, Gain/Loss

901-0000-280-30-10 From Other Funds/Genera

ACCOUNTING FOR THE ACQUISITION OF FIXED ASSETS

XXX-XXXX-XXX-6X-XX Capital Expense Account 1,000

Account # Title Debit Credit

Account # Title Debit Credit

Because governmental funds measure expenditures, not expenses, depreciation

The following guidelines apply:

Asset description: Type a brief description of the asset (See Nomenclature

Sub Account: Type in or choose from drop down

General location: Enter Location of Asset

Company ID: Leave blank, we do not use this field

The screen shows:

Purchase Order: If using Pending Asset function, the PO # should be

Life-to-date: Should be blank for acquisition

Project number: Enter Project number if not defaulted to one and if

Now hit OK, installation is complete

Under Copy there is a box to check to copy the same

ADD A NEW ASSET (ADD ASSET IMPROVEMENT FEATURE)

PROCEDURES FOR ASSET TRANSFERS

Access Asset Processing

Procedures for asset disposal with a consideration without public auction:

Procedures for asset disposal with a consideration at public auction:

Departments identify material according to the criteria shown above.

Disposals in Asset Management II: Go to Asset Processing Menu, then

Find the Asset to be retired, right click on it and select Retire

When done retiring assets, use EXIT function

Then go to Asset Maintenance, click on the asset just

If you need to change the cost, depreciation amount, number of years

THERE IS AN HTE ASSET MANAGEMENT II TRAINING MANUAL ON THE

THERE ARE ALSO SUNGARD HTE DOCUMENTS, PROCEDURES, UPDATES

Using the Inquiry Function:

In Asset Management II, Asset Processing, go to Asset Inquiry:

Right click on the Asset you are inquiring about:

ATTACHMENT OF PROPERTY TAGS TO EQUIPMENT

Property tags should be attached in a visible, conspicuous place to facilitate

EQUIPMENT TYPE TAG PLACEMENT

Computer equipment Visible place; near serial number plate

Desk set On side of file drawers