Introduction to Asset Accounting. Alex Levy, CPA Asset Accountant February 20, 2013

Transcription

1 Introduction to Asset Accounting Alex Levy, CPA Asset Accountant February 20, 2013

2 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 Defines Asset (Project) Accounting?

3 What is the final product? Annual Financial Reports: Capital Outlay Louisiana Transit Authority Crescent City Connection

4 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? Why Do We Have Asset Accounting?

5 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)

6 What has changed? Pre Y2K expense (convenient, but not accurate) Wooster method (just as convenient, but just as inaccurate) 2011 Modified approach using technology to track individual assets and projects.

7 My Accounting Processes Catalysts Start Project created Investment profile assigned Project collects costs Final Acceptance / Completed Projects Reconciliation Process End Create Asset Correction to an Asset Delete Asset Action what gets done

8 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 Alex s Needs Project Request Forms

9 Project Request Forms Roadway Bridge Land Building Depreciable Land Improvement 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) New construction, replacement, added capacity, or rehabilitation Purchase of right of way New Building or addition costing $100,000 or more Sidewalks, bicycle paths, hiking/biking trail projects costing $100,000 or more and not part of roadway control sections

10 Roads and Bridges Road Data Table Control Section Route Begin Log Mile End Log Mile Length for Mapping Parish District FMIS Rural/Urban FMIS Functional Classification FMIS Federal Aid System Name Control section(s) that the project is located on. Route that the project is located on. If project is located on an actual control section, provide data. If not, this field not required. If project is located on an actual control section, provide data. If not, this field not required. See SAP Help for direction on this. If project is located on an actual control section, this is auto-populated. If not, provide information. If project is located on an actual control section, this is auto-populated If off-system project, provide information. Otherwise, this is auto-populated. If off-system project, provide information. Otherwise, this is auto-populated. If off-system project, provide information. Otherwise, this is auto-populated. When non-state indicator is selected, provide information to help locate the project.

11 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

12 We are not adding the infrastructure as built Negative Consequences of We are not removing the infrastructure when retired, sold or swapped We don t know what we have Audit Findings! Poor Communication

13 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.

14 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.

15 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?

16 Closing Thoughts. Questions? Alex Levy