Steps to Move Assets to a Newly Created Plant Fund (95) Account for a Recharge Center Organization

 

Background Information:

  • The accounting principle of historical cost requires that we record our assets at their original cost. However, as time goes by, our assets are not typically worth what we originally paid for them. In order to reflect this on our financial statements, the assets are depreciated over their useful life.
  • The asset cost, accumulated depreciation and depreciation expense are reported in the plant fund (95) account(s).
  • The KFS Capital Asset Module uses the payment information and organizational data to determine which plant fund account will record the capital asset and associated depreciation. The flowchart below shows how the system selects the appropriate plant fund.

 

     

  • Moveable equipment (Capital Leases, Fabrications and Moveable Equipment) uses the organization plant fund account.
  • Non-moveable (Library Books, Art & Museum, Intangibles, Buildings, Land, and Improvements) uses the campus plant fund account.
  • For Auxiliary & Recharge Center Units, the organization plant fund account and the campus plant fund account listed in the organization document should be the same.

 

In the event that the organization or campus plant fund account numbers listed on the organization inquiry are not specific to the recharge center capital assets, a recharge activity may not be able to recover depreciation in the recoverable rate. For more information please refer to RSOP #3: Including Annual Depreciation Expense in Recoverable Rate. Therefore, it is important that your recharge organization record capital assets in their own dedicated 95 account.  Below are detailed instructions for moving assets to newly created plant fund account(s).

 

 

Required Steps:

  1. Run the IUIE Organization Hierarchy Report- This will be used to determine which accounts are within the reporting organization.
    1. In the IUIE go to Master Catalog->Kuali Financials->Chart of Accounts->Organization Hierarchy report.
    2. Parameters
      • Enter in COA-Org Code
      • Click on include associated accounts
      • Select the option to return the output in excel
      • Click run
  2. Identify which plant fund accounts are identified on Organization Inquiry in KFS
    1. Go to the Chart of Accounts Module
    2. Click on the Lookup for Organization
    3. Enter Chart Code and Organization Code
    4. Click Search
    5. Click on Organization Code hyperlink.
  3. Create a new 95 account for the recharge center organization. Please see Chart of Accounts documentation for documentation on how to create an account.
  4. Once the new 95 account is final approved, you will need to send an email to Bill Overman (woverman@iu.edu) asking him to update the plant fund account numbers on the organization document. The email should indicate which chart and organization needs to be updated and what the appropriate plant fund accounts are for the organizational plant fund account number (for moveable) and campus plant fund account number (for non-moveable).
  5.  Once the plant fund(s) has been updated on the organization document, the Financial Management Services Capital Asset Office will move the asset balances related to asset payments on any accounts in the recharge center organization. The movement of the balances is typically done within 30 days of the plant fund change on the organization document.
  6. After the balances have been moved, the organization can run the Asset Reconciliation report to ensure all of the asset balances associated with the recharge center activity have been moved correctly.
    1. In the IUIE go to Master Catalog->Kuali Financials->Capital Asset Management System->CAMS Depreciation Reports->Asset Reconciliation
    2. Parameters
      • Select Report Type: Asset Reconciliation Detail (default)

      • Select Database: Production

      • Select Asset Category:  Moveable

      • Plant Fund Chart-Account: Enter chart and newly created plant fund account (XX-95XXXXX)

      • Include depreciation through: current month end date

      • Include additions through fiscal period <=: Current period

      • Click Run

  7. If the asset balances do not look complete or if balances were moved to the new plant fund account that you feel should not have been, please contact capasset@iu.edu.

 

Example:

  1. Run Light Microscopy Imaging Center (BL-LMIC) Org Hierarchy Report

       IU-UNIV  UNIVERSITY LEVEL

          BL-BL    BLOOMINGTON CAMPUS

             BL-RUGS  VICE PROVOST FOR RESEARCH

                BL-RCEN  RESEARCH CENTERS

                   BL-LMIC  LIGHT MICROSCOPY IMAGING CENTE

                   ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

                         BL-2343070  LMIC OPERATIONS

                         BL-6642903  LIGHT MICROSCOPY IMAGING CENTER

                         BL-9242903  LIGHT MICROSCOPY IMAGING CENTER

  2. Determine the moveable and non-movable plant fund account(s) associated with the organization.
  3. Create a 95 account specific to the recharge activity.
  4. Send an email to Bill Overman woverman@iu.edu indicating the following: “Please change the organizational plant fund and campus plant fund for BL-LMIC to BL-9542903.”
  5. After the asset balances have been moved by the Capital Asset Office, the organization can run the Asset Reconciliation report to ensure all of the asset balances associated with the recharge center activity have been moved correctly.