Reorganization

Process Group/Policy Details

• Subject:  Asset Management

• Process Group: Asset Management

• Title of Policy: AM_Reorganization

• Effective Date: 07/01/2014

• Approved/Revision Date: 07/01/2014

• Approved by: 

Process Group Description

Reorganization of a Fixed Asset

• This process group includes the reorganization (transfer) of a fixed asset.

Definition:

• Reorganization of a fixed asset refers to situations where a fixed asset is transferred to a new Cabinet, Department, Fund or Responsibility Center.  

Rationale or background to policy: 

• Departments presently use various methods to manage fixed assets.  In order to implement state-wide best practices for asset management, a policy is required.

Policy Statement: 

Reorganization between Governmental Funds

• If reorganization of an asset is between governmental funds and the asset is in the same cabinet and between departments, a cabinet shall record the reorganization by using the Fixed Asset Transfer transaction (FT). 

• The FT transaction transfers ownership between two governmental fund type assets.

• Departments shall use a FT transaction when ownership transfer does not need to be recorded in the General Ledger (i.e. the asset remains in the same responsibility center or within the General Full Accrual Accounting Group (GFAAG- Fund 471).

Reorganization between Governmental and Proprietary Funds  

• If the reorganization is between governmental and proprietary funds and the fund type for the responsibility center changes, departments shall use a fixed asset disposition transaction (FD), followed by a fixed asset acquisition transaction (FA).  

Procedure(s):

AM.PR.07.1 – Manual Transfer of Assets

• This procedure records a manual transfer of an asset within the Governmental Fund, in the same Cabinet but between departments. An FT transaction is used to complete a manual transfer of assets.  The Event Type for an FT transaction is FA06.  Follow the steps below or the detailed steps included in the Asset Modification Step Action Table:

1. Log into Core.

2. Review the Fixed Asset Registry Header Table.

3. Review the Fixed Asset Registry Component table.

4. Navigate to the Transaction Catalog.

5. Create a new Fixed Asset Transfer (FT) transaction.

6. Populate the Header.

7. Auto Apply.

8. Populate the Header Section, Responsibility Center tab with the new department, new unit, new custodian, and new fund.

9. Populate the Component section.

10. Validate the transaction.

11. Submit the transaction.

12. Review the Fixed Asset Registry Header Table, note the changes.

13. Review the Fixed Asset Registry Component Table, note the changes.

• If the transfer of the asset is between governmental and proprietary funds, the fund that the asset is being transferred out of will do a disposition. (See AM_PO.05 for disposition procedures).  The fund that is acquiring the transfer will do an asset acquisition.  (See AM_PO.01 for acquisition procedures).