FIACCT 09-06_00 Fixed Assets – Transferring Assets Between Agencies

Effective: March 16, 1998
Revised: July 2, 2001

Purpose

This policy describes the procedures to transfer an asset between agencies.

Policy

Transferring an asset between agencies involving a sale and purchase must be approved by Surplus Property. If the transfer is a sale and purchase, Surplus Property will be responsible for processing two IAT documents; one to record revenue for the Seller and one to record the capital outlay expenditure for the Buyer. An FD (Disposition) document will be processed by the seller agency and an FA (scratch add) document will be processed by the buyer agency to establish the asset record in FINET Fixed Assets.

Background

Surplus Property is responsible for the disposition of all state property. When an agency wants to sell an asset to another agency, Surplus Property must approve the sale and collect a handling fee.

Procedures

Responsibility

Action

Selling Agency

1. When two agencies have agreed to sell/buy (transfer) a fixed asset between them, the selling agency must notify Surplus Property and physically transfer the asset to the Buyer with a copy of the current FA record (FAS1).

2. Process an FD (disposition) document to delete the Seller agency asset record from FINET Fixed Assets. Refer to the policy on the policy on the FD – Fixed Asset Disposition document in the DOCUMENT section of the manual. Use Disposition method T for Traded/Transferred.

Buying Agency

3. Receive the fixed asset from the selling agency and process an FA (scratch add) document to record the asset in FINET Fixed Assets. Refer to the policy on the FA – Scratch Add document in the DOCUMENT section of the manual.

Surplus Property

4. Surplus Property will process two IAT documents. The first IAT posts revenue (credit) to the selling agency less the transaction fee. The second IAT charges (debit) the buying agency for the asset.

Surplus Property will send a copy of the IAT recording the revenue transaction to the selling agency. Surplus Property will send a copy of the IAT recording the cost to the buying agency.