FIACCT 09-10_00 Fixed Assets – Dispositions

Effective: March 16, 1998
Revised: April 1, 2002

Purpose

This is the statewide policy for transfer, disposition, cancellation, and deletion of the State’s fixed assets. It also defines the statewide policy for disposing of an asset through Surplus Property.

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Policy

A. It will be the responsibility of agency Fixed Asset accounting users to dispose, cancel, and delete fixed asset records if the asset has been lost, stolen, destroyed, scrapped, or sold.

B. When a fixed asset is no longer needed by an agency, the asset must be sent to Surplus Property for sale or disposal. It will be Surplus Property’s responsibility to dispose of the asset and transfer all proceeds, if any, less disposal charges, to the owning agency.

C. Any fixed asset that is lost or stolen must be reported to the Director of Finance before the items can be removed from FINET Fixed Assets.

D. When an asset is lost or stolen the Criminal Justice Division of the Attorney General’s Office must be notified immediately by phone.

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Background

The disposition of the State’s fixed assets is performed by processing a Fixed Asset Disposition document (FD) in FINET Fixed Assets. When selecting a disposition method, the user must answer the following question: Is the disposal of the fixed asset a true disposal, or is it a correction or modification to the system?

True Disposal
A true disposal of a fixed asset can be defined as a retirement of a fixed asset. The asset must be removed from FINET Fixed Assets because it either is no longer owned by the State or is not useable.

Correction or Modification
A correction or modification to a fixed asset can be defined as the removal of an asset record from FINET Fixed Assets because it was entered in error.

The following disposition methods are found on the Fixed Asset Acquisition/Disposition Method Table (FADM):

Method	Type of Disposal	Description
E	Correction or Mod.	Error Correction. If an asset was entered in error this disposition type should be used.
L	True Disposal	Lost or Stolen. Refer to the FA – Lost or Stolen Assets policy in this section of the manual.
M	Correction or Mod.	Merge/Split. If an asset record must be deleted from the system because it is merged with another asset record or if it is split into multiple asset records, this disposition method should be entered on the FD document.
R	True Disposal	Retired. This asset was sent to Surplus Property and abandoned or scrapped.
S	True Disposal	Sold. This asset was sent to Surplus Property and sold.
T	True Disposal	Traded/Transferred through Surplus Property.

Agencies should process an FD for all disposals of assets including sales, destruction, theft, or obsolescence.

Canceled warrants also require the resulting fixed asset record to be disposed if the FA document, automatically created from the PV document, has been processed to establish the asset record in FINET Fixed Assets. This could occur if payment was made twice for the same asset or the agency has returned the asset before the check has been cashed by the vendor. If the FA document has not been processed to establish the asset record in FINET Fixed Assets, delete the held FA on the Document Listing.

The net effect of the above transaction is to allow the warrant cancellation to reverse the capital outlay expenditure and delete the held FA from the Document Listing file or complete an FD document to remove the FA record from FINET Fixed Assets. Use disposition method E on the FD document.

For procedures concerning Surplus Property, refer to the FA – Sold Through Surplus Property policy in this section of the manual.

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Procedures