Capital (Fixed) Assets in MMARS

(1)

Capital (Fixed) Assets in

MMARS

(2)

Agenda



Fixed Assets Types/Capitalization

thresholds



Fixed Assets Documents



Adding a Fixed Asset



MMARS Reference Tables



Depreciation



Reports



Policy and Compliance



(3)

Capital (Fixed) Assets Types

Capital (Fixed) Assets are tangible property owned by the Capital (Fixed) Assets are tangible property owned by the

Commonwealth with a useful life of more than one year Commonwealth with a useful life of more than one year

Fixed Asset

Type Fixed Asset Type Name

USEFUL LIFE, years

CAPITALIZATION THRESHOLD

B Building ₄₀ _{$ 100,000}

C Construction In Progress N/A -E Equipment Other Than H, K Or V 10 50,000 H Landmarks/Monuments/Artwork N/A

-I Infrastructure 40 100,000

K Computers/Software/Cabling 3 50,000 L Land N/A

-S Computer Software over $1Million 7 1,000,000 V Vehicles - Air/Land/Water 5 50,000

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FIXED ASSET LIFE CYCLE

(5)

Fixed Asset Documents



 FA FA Acquire / Better a fixed assetAcquire / Better a fixed asset 

 FD FD DispositionsDispositions 

 FM FM Modifications (non accounting)Modifications (non accounting) 

 FT FT TransfersTransfers 

 FI FI Increases/Decrease to costs Increases/Decrease to costs – – CIPCIP 

 FX FX Change asset type (Change asset type (e.g.e.g.““BB” ” to to ““LL””)) 

 FC FC CancellationsCancellations 

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Creating a Capital (Fixed) Asset

in MMARS



 System GeneratedSystem Generated

•

• CommodityCommodity--based purchase:based purchase:

Commodity

Commodity and Unit Priceand Unit Price match or exceed the match or exceed the Capitalization threshold for each fixed asset type

Capitalization threshold for each fixed asset type



 User Generated (manually entered)User Generated (manually entered)

•

• Fixed Asset Fixed Asset was not entered was not entered in MMARS when it in MMARS when it was

was originally purchasedoriginally purchased •

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ADDING A FIXED ASSET

1) Payment requests with proper

accounting &

commodity code lines update FAPR for

pending asset – creating a shell

2) Manual creation can be done by

management

3) OSC adjudicates a shell to agree that a fixed asset is to be generated

4) Assets are created, journals and registry updated

(8)

MMARS Reference Tables

FAR

= Fixed Asset Registry

•

• Central registry of all fixed assetsCentral registry of all fixed assets •

• Split into Split into 

 FARHDR FARHDR – – Asset HeaderAsset Header



 FARCOMPFARCOMP- - Asset ComponentsAsset Components



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FAR

(10)

FAR

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FAR

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FAR

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FAHIST

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FAHIST

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MMARS Reference Tables

FATP

= Fixed Asset Type

Hard

Hard--coded reference table contains:coded reference table contains: •

• Type, Type NameType, Type Name •

• Balance Sheet AccountBalance Sheet Account •

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FATP

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MMARS Reference Tables

FACLG

= Fixed Asset Catalog

•

• Assigns useful lives to various types of Assigns useful lives to various types of assets, not specific assets

assets, not specific assets •

• Depreciation method defaults to straightDepreciation method defaults to straight- -line unless changes in specs

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FACLG

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MMARS Reference Tables

FADM

= Fixed Asset

Acquisition/Disposition Method

•

• Regulates how acquisition / disposition is Regulates how acquisition / disposition is handled

handled •

• Calculates gain / loss through SPEC Calculates gain / loss through SPEC entries

(20)

FADM

MMARS Table

_{MMARS Table}

-

-acquisition

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FADM

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Memo (Non

-

_-

GAAP) Assets

_{GAAP) Assets}

Created if departments want to keep

track of assets

below thresholds

in

MMARS

Flagged as memo when processing

a FA acquisition document

Good for items that can be stolen

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Depreciation

•

• Run through a parameter driven batch

Run through a parameter driven batch

process



 Can be done daily, weekly, monthly, Can be done daily, weekly, monthly,

annually annually

•

• Straight line by days

Straight line by days



 (Cost (Cost ÷ ÷ life in days x number of days life in days x number of days

between in service and date of batch) between in service and date of batch)

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Reports

•

Departmental monthly reports:

NGA155

’

s and

NGA156

’

s are available

•

MMARS has fixed asset histories online

–

– FAHIST FAHIST tabletable 

 Once an FA is added to MMARS, you can search Once an FA is added to MMARS, you can search

the history of the assets based on the unique FA

# given to each FA at a component level

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Policy and Compliance

•

• Fixed Assets Policy Fixed Assets Policy - - refer to refer to “

“Publications and Reports”Publications and Reports” on on ““ComptrollerComptroller’’s s Internet

Internet PagePage””

•

• Job Aids Job Aids – – refer to refer to “How to“How to” ” on on “

“ComptrollerComptroller’’s s Intranet Intranet Page Page ””

•

• SemiSemi--annual inventory reviewannual inventory review– – every every

February and August (instructions are in February and August (instructions are in

eUpdate and FY Memo) eUpdate and FY Memo)

•

• CFOCFO’’s to certify the accuracy of s to certify the accuracy of

departmental fixed assets data in MMARS departmental fixed assets data in MMARS

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Where to find the guidelines?

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Where to find the guidelines?

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Where to find the guidelines?

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Where to find Job Aids?

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Where to find

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