Are they an item or just friends?
Asset Accounting and Asset Management -
Are They An Item or Just FriendsBob Mahaney, CPPS
Manager of Program Accounting and FinanceUniversity of Texas - MD Anderson Cancer
Center
Who else is in the room?
• Type of business?
• University• Contract Property/Federal• State/Local Government• Private
AM Duties
• Tagging assets.
• Annual physical inventory.
• Manage surplus/reutilization warehouse.
No debits or credits so far.
More AM Duties
• Tracking the movement of assets.
– Capital assets.– Computers.– Other sensitive assets.
No beans to count yet.
More AM Duties
• Missing property report.
– Department– Number of assets missing– Net book value
Starting to see some $ signs.
More AM Duties
• Asset disposals from surplus/reutilization warehouse.
– Each capital asset generates a gain/loss.
– Gains/losses hit the Income Statement.
Seeing bigger $ signs now.
AA Also Has Duties
• Reports the results of financial transactions.
• Analyzes the results for management.
• Provides gain/loss explanations.
Receiving
• AM
– Monitors process for consistency.
– Enforces the tagging upon receipt policies.
– Proper asset descriptions.
Receiving
• AA
– Identifies assets to be received during acquisition prior to PO being issued.
– Relies on receiving process to provide supporting documents for matching.
Physical Inventory
• AM
– Performs an accurate physical inventory.
– Reports inventory results to management.
– Shares new asset data with AA.
Physical Inventory
• AA
– Relies on the physical inventory process as a financial control.
– Works with AM to resolve discrepancies.
Disposals
• AM
– Coordinates asset reutilization to determine which assets are ready for disposal.
– Provides accurate supporting documentation for each disposal.
Disposals
• AA
– Records disposals in the asset system.
– Posts financial transactions to ledger.
– Analyzes gains/losses for management.
Does it matter?
• No!!!
– Assets exist!
– Assets are tracked!
– Management want reports with $ signs!
Integrated Asset Systems
• Brings functional areas together.– None closer than AA and AM.
• Brings dysfunctional areas to the table.
• AA and AM have a great interest in dysfunctional areas.
Shared Opportunities
• Managing the in-laws.
– Convince management AA and AM are a team with solutions.
– It’s okay to discuss the in-laws.
Shared Opportunities
• Presenting a united front.
– Openly support each areas policies and procedures.
– Don’t hesitate to ask “How would you suggest we handle this issue?”
Shared Opportunities
• Collaborate on policies and procedures.
– Each group has a different source of institutional information.
– Apply each groups expertise to deliver institutional solutions.
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