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Introduction to Asset Accounting
Alex Levy, CPA
Asset Accountant
February 20, 2013
What Defines Asset (Project) Accounting?
• Accounting is the systematic recording and classifying of an entity's financial records
• Asset accounting is the accounting of the asset accounts such as: buildings, land, equipment and intangible assets
What is the final product?
Annual Financial Reports:
• Capital Outlay
• Louisiana Transit Authority
• Crescent City Connection
Why Do We Have Asset Accounting?
Who?
• Governmental Accounting Standards Board
• State and Federal laws and regulations
Goals?
• Tracking costs for projects
• If we’re over budget, why?
• Making government look more like a business
• Better compliance with laws
• Are we getting our money’s worth?
It’s Not Just Us
What are the auditors looking for?
• A good, complete list of what we own (completeness)
• Vegas Rules – what happens this year is recorded this year (timing)
• Brooklyn Bridge - We actually own what we say we own (existence)
• Boondoggles - What we own is worth what we say it is (valuation)
• Red Tape - We follow state and federal laws (compliance)
What has changed?
• Pre Y2K – expense (convenient, but not accurate)
• 2001 – 2010 – Wooster method (just as convenient, but just as inaccurate)
• 2011 – Modified approach using technology to track individual assets and projects.
My Accounting Processes
Catalysts
Action – what gets done
StartStart Project createdInvestment profile
assigned Project collects
costs Reconciliation Process
Final Acceptance / Completed Projects
Create AssetCorrection to an
AssetDelete Asset
End
Alex’s Needs – Project Request Forms
• Make sure the capitalization questions are answered, the projects descriptions reasonably match what the scope of the work is
• Is the project with another state or agency? Let me know
Project Request Forms
Roadway
New construction, reconstruction, added capacity, or relocation OR for Agency/Business area 270 and Capital
Outlay projects in 276 – major resurfacing and restoration (FHWA definition of replacement and
rehabilitation. Preservation is considered expense)
Bridge New construction, replacement, added capacity, or
rehabilitation
Land Purchase of right of way
Building New Building or addition costing $100,000 or more
Depreciable Land Improvement
Sidewalks, bicycle paths, hiking/biking trail projects costing $100,000 or more and not part of roadway
control sections
Roads and Bridges
Road Data Table
Control Section Control section(s) that the project is located on.
Route Route that the project is located on.
Begin Log Mile
If project is located on an actual control section, provide data. If not, this field not required.
End Log Mile
If project is located on an actual control section, provide data. If not, this field not required.
Length for Mapping See SAP Help for direction on this.
Parish
If project is located on an actual control section, this is auto-populated. If not, provide information.
District If project is located on an actual control section, this is auto-populated
FMIS Rural/Urban If off-system project, provide information. Otherwise, this is auto-populated.
FMIS Functional Classification If off-system project, provide information. Otherwise, this is auto-populated.
FMIS Federal Aid System If off-system project, provide information. Otherwise, this is auto-populated.
Name
When non-state indicator is selected, provide information to help locate the project.
Alex’s Needs – Final Acceptance & Project Completion
How can we all get this done with maximum efficiency and effectiveness with least effort?
• I need Final Acceptance letters ASAP
• Accurate data regarding:
– Right of way purchased
– Control sections added or taken out
– Recall numbers from STRM added or taken out
Negative Consequences of Poor Communication
• We are not adding the infrastructure as built
• We are not removing the infrastructure when retired, sold or swapped
• We don’t know what we have
• Audit Findings!
Alex’s Needs – Data Synchronization and Reconciliations
Periodic checks – we call reconciliations – ensure what’s on your information systems are in mine. There should be no differences.
More on Data…
Problems:
• I don’t know if I am receiving everything
• Need to confirm what is in the engineers’ information systems are really getting into LaGov.
Alex’s Needs - Disaster Situations
• Hurricane Season coming soon
• What information we need?
• Can we piggyback?
• How can we get all our needs with the least intrusion?
