Guide to Capitalization Policy for Group of Assets Acquired Together
"Learn about the implementation of GASB guidelines for capitalization policies for assets acquired in groups. Explore updated criteria, FY24 and FY25 purchases, efficiency measures, and best practices shared by the Fiscal Director."
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Capitalization Policy for Group of Assets Acquired Together GASB Implementation Guide 2021-1 Q5.1
1. Recap of previous session 2. Updated criteria 3. FY24 Purchases Agenda 4. FY25 Purchases and beyond 1. 7/1/2024-12/31/2024 2. 1/1/2025 and beyond 5. Efficiency measures 6. Best Practices Jai Sawlani, Fiscal Director 1 December 6, 2025
Brief review of previous session GASB Implementation Guide 2021-1 Q5.1 Group of Assets Acquired Together 157 commodities (121 New + 36 Existing) were initially selected Total Purchase order (for selected items) >= $5,000.00 Departments were to confirm their status Items were to be included on FY25 inventory Based on challenges encountered, feedback received from agencies, the criteria was analyzed further.
Developments since previous session
Developments since previous session Updated criteria: Computers only, regardless of amount: New Account Code 71600000 ECOMP036 71600000 ECOMP036 71600000 ECOMP036 71600000 ECOMP036 71600000 ECOMP048 Current Account 72299000 72299000 72299000 Current Profile ID Code 43211507DESKTOP COMPUTERS 43211508PERSONAL COMPUTERS 43211509TABLET COMPUTERS 43211521ALL IN ONE DESKTOP COMPUTER 72299000 43211503NOTEBOOK COMPUTERS 43211501COMPUTER SERVERS 43211502HIGH END COMPUTER SERVERS 43211515COMPUTER WORKSTATION 43211516MINICOMPUTER 43211517ANALOG COMPUTER 43211518MULTI SCREEN COMPUTER Long Descr New Profile 72299000 71600000 ECOMP060 71600000 ECOMP060 71600000 ECOMP060 71600000 ECOMP060 71600000 ECOMP060 71600000 ECOMP060 72299000 71600000 ECOMP060 71600000 ECOMP060 72299000 71600000 ECOMP060 71600000 ECOMP060
Developments since previous session FY24 Purchases: Only the 11 Commodity Codes from Agencies sheets were loaded in the system STS computers purchased on Agencies behalf were included under the agencies BU. Capitalized only for financial reporting purposes Non-STS computers were loaded with Tag numbers starting with 4321F24xxxxx Those purchased via STS were loaded in Edison with the same STS tag numbers currently assigned
FY24 PURCHASES Agencies to recertify FY24 computer purchases during inventory Computers purchased via STS will also be reconciled with SNOW Unless retired earlier, STS and Non-STS purchases will both be retired at the end of their useful life.
FY24 PURCHASES FY24 purchases will not be physically tagged with a Capital Asset tag FY24 purchases will not need to be physically located, just confirm not disposed FY24 purchases made through STS will have an STS Tag FY24 purchases must continue to be maintained in Agencies sensitive items inventory Continue to surplus all computers in accordance with State Rule 0690-2-1 and Policy 32.
FY25 PURCHASES THRU DECEMBER 2024 FY25 Direct Purchases made between July 1, 2024, and December 31, 2024: Agencies will be sent a list of their directly purchased computers, along with their inventory list Agencies will verify that the purchased items are indeed computers Agencies will assign Capital Asset tag numbers to the computers on the list Non-State/Capital tag numbers will not be accepted Agencies will physically affix the tag numbers to the computers Continued .
FY25 PURCHASES THRU DECEMBER 2024 Continued Agencies will complete and return the excel worksheet Agencies must provide the following information on the worksheet: Capital Asset tag number (N/A for items ineligible or incorrectly coded) Serial Number Condition of Asset Explanation, if not located Remarks (for items ineligible or incorrectly coded)
FY25 PURCHASES THRU DECEMBER 2024 FY25 Direct Purchases made between July 1, 2024, and December 31, 2024: Items determined to be ineligible or incorrectly coded, should have the reason specified in the Remarks column, with N/A marked under the tag number:
FY25 PURCHASES THRU DECEMBER 2024 FY25 Direct Purchases made between July 1, 2024, and December 31, 2024: Once confirmed by Agencies, Assets will be loaded in Edison as State/Capital Assets These assets should no longer be included in Agencies sensitive item inventory
FY25 PURCHASES THRU DECEMBER 2024 FY25 Purchases made through STS between July 1, 2024, and December 31, 2024 (continued): STS will identify the computers they purchased for agencies. STS purchased computers will be assigned STS tag numbers
FY25 PURCHASES THRU DECEMBER 2024 Items ordered using a PO dated on or before December 31, 2024, received or vouchered on or after January 1, 2025. All vouchers created January 1 or later for these POs, should be coded with 716xxxxx. Agencies will complete a Capital Asset Manual Addition Request form (CAMAR)
WORKFLOW - Purchases beginning January 1, 2025 Agencies will be responsible to: Assign Capital Asset tag numbers to directly purchased computers Purchase orders entered with an ECOMP profile ID Purchase orders entered with a GL Account number 71600000 Agencies not required to use Purchase orders - must submit Capital Asset Manual Addition requests (CAMAR)
WORKFLOW - Purchases beginning January 1, 2025 Computers purchased via STS (Orders placed via SNOW) STS will assign a tag number ending with a C , example N12345C Asset will be transferred to the agencies Please note: Our email stated that tag numbers would end with an S . This has now been updated to a C to prevent confusion with the number 5.
FY25 Purchases beginning January 1, 2025 Tracking of Inventory (beginning January 1, 2025) Both STS and non-STS FY25 computer assets will now be tracked in Statewide/Capital assets inventory FY25 and beyond computers should not be tracked in Agencies Policy 32 inventory
FY25 Purchases beginning January 1, 2025 Surplus of FY25 and beyond computers Continue to surplus all computers by contacting STS
FY25 Purchases beginning January 1, 2025 Retirement of FY25 and beyond assets To transfer or retire computers, whether purchased through STS or directly, complete and submit forms FA-1053 or FA-1067 as required.
SUMMARY FY24 computers are not part of the regular Capital Asset Annual Inventory FY24 computers need not be physically tagged FY24 computers tracked as sensitive items FY25 computers capitalized as assets FY25 computers tagged physically as Capital Assets FY25 computers tracked in Edison AM module
January 2025 Inventory You will receive three lists: Regular Capital Asset Inventory FY24 Computers to recertify FY25 Computers paid for between July 1, 2024, and December 31, 2024.
Efficiency measures Why? Currently 75% of POs in AM workflow are not capitalized This delays approval of POs Increased volume expected
Efficiency measures Criteria for POs flowing to Asset management Account between 71600000- 71699999, 71800000- 71899999, 72000000- 72099999 Or Profile ID between BIMPR- ROADS PO was saved with one of the above criteria before being changed
New Efficiency Measures Agency Actions for Non-Capitalized Purchases: Remove the AM BU and Profile ID and update the GL Account number before saving the PO This will prevent the PO from being routed to AM Consequently, Asset Management approval will not be needed If in doubt whether a purchase is to be capitalized, please feel free to reach out to one of us and we will be happy to review the purchase for you
Efficiency Measures Capitalized Purchases: Ensure the Profile ID and Capital GL Account number are included. Missing information will delay AP voucher approval and payment processing.
BEST PRACTICES for faster processing Both creator and Agency approver should ensure that: Preferably start with an Item number, instead of the category code The item number matches the item purchased. The PO has each type of item entered separately, (Laptops, Tablets, Accessories, and Warranties all have their own specific commodity codes) Accurate quantities and prices are entered Quantities should be whole numbers (They can be split on the distribution lines for allocation purposes)
QUESTIONS? THANK YOU!
Reference material https://www.tn.gov/content/tn/generalservices/procurement/central-procurement-office--cpo-/helpful-links- /reference-material.html Graphical user interface, application Description automatically generated https://www.tn.gov/finance/rd-doa/fa-accfin-swa.html
Contacts Asset Management Team: Jai Sawlani Heather Carter Randy Ross Andrew Turner Eskatsnaf Aragaw
