Introduction to Asset Accounting

Alex Levy, CPA Asset Accountant February 20, 2013

What Defines Asset (Project) Accounting?

Accounting is the systematic recording and classifying of an entity's financial records Asset accounting is the accounting of the asset accounts such as: buildings, land, equipment and intangible assets

What is the final product?

Annual Financial Reports: Capital Outlay Louisiana Transit Authority Crescent City Connection

Why Do We Have Asset Accounting?

Who? Governmental Accounting Standards Board State and Federal laws and regulations Goals? Tracking costs for projects If were over budget, why? Making government look more like a business Better compliance with laws Are we getting our moneys worth?

Its Not Just Us

What are the auditors looking for? A good, complete list of what we own (completeness) Vegas Rules what happens this year is recorded this year (timing) Brooklyn Bridge - We actually own what we say we own (existence) Boondoggles - What we own is worth what we say it is (valuation) Red Tape - We follow state and federal laws (compliance)

What has changed?

Pre Y2K expense (convenient, but not accurate) 2001 2010 Wooster method (just as convenient, but just as inaccurate) 2011 Modified approach using technology to track individual assets and projects.

My Accounting Processes
Catalysts
Investment profile assigned Project collects costs Start Start Project created
End Final Acceptance / Completed Projects Reconciliation Process

Create Asset

Correction to an Asset

Delete Asset

Action what gets done

Alexs Needs Project Request Forms

Make sure the capitalization questions are answered, the projects descriptions reasonably match what the scope of the work is Is the project with another state or agency? Let me know

Project Request Forms

Roadway
New construction, reconstruction, added capacity, or relocation OR for Agency/Business area 270 and Capital Outlay projects in 276 major resurfacing and restoration (FHWA definition of replacement and rehabilitation. Preservation is considered expense) New construction, replacement, added capacity, or rehabilitation Purchase of right of way
New Building or addition costing $100,000 or more Sidewalks, bicycle paths, hiking/biking trail projects costing $100,000 or more and not part of roadway control sections

Bridge
Land Building

Depreciable Land Improvement

Roads and Bridges

Road Data Table Control Section Route
Control section(s) that the project is located on. Route that the project is located on.

Begin Log Mile

End Log Mile

If project is located on an actual control section, provide data. If not, this field not required.
If project is located on an actual control section, provide data. If not, this field not required.

Length for Mapping

Parish District FMIS Rural/Urban FMIS Functional Classification FMIS Federal Aid System Name

See SAP Help for direction on this.

If project is located on an actual control section, this is auto-populated. If not, provide information. If project is located on an actual control section, this is auto-populated If off-system project, provide information. Otherwise, this is auto-populated. If off-system project, provide information. Otherwise, this is auto-populated. If off-system project, provide information. Otherwise, this is auto-populated.

When non-state indicator is selected, provide information to help locate the project.

Alexs Needs Final Acceptance & Project Completion

How can we all get this done with maximum efficiency and effectiveness with least effort? I need Final Acceptance letters ASAP Accurate data regarding:
Right of way purchased Control sections added or taken out Recall numbers from STRM added or taken out

Negative Consequences of Poor Communication

We are not adding the infrastructure as built We are not removing the infrastructure when retired, sold or swapped We dont know what we have Audit Findings!

Alexs Needs Data Synchronization and Reconciliations

Periodic checks we call reconciliations ensure whats on your information systems are in mine. There should be no differences.

More on Data
Problems:
I dont know if I am receiving everything Need to confirm what is in the engineers information systems are really getting into LaGov.

Alexs Needs - Disaster Situations

Hurricane Season coming soon What information we need? Can we piggyback? How can we get all our needs with the least intrusion?

Closing Thoughts. Questions?

Alex Levy 379-1678 alex.levy@la.gov