s59_capitalized asset or maintenance activity classification_ltc2013

7/29/2019 S59_Capitalized Asset or Maintenance Activity Classification_LTC2013

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Introduction toAsset Accounting

Alex Levy, CPA

Asset Accountant

February 20, 2013


2/16

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


3/16

What is thefinal product?

Annual Financial Reports:

Capital Outlay

Louisiana Transit

Authority

Crescent City

Connection


4/16

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?
http://shass.mit.edu/files/shass/cimg/news/2010/585_constitution-1.jpg


5/16

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)


6/16

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.


7/16

My Accounting Processes

Catalysts

Action what gets done

Start Project created

Investment profile

assignedProject collects

costs ReconciliationProcess

Final Acceptance /

Completed Projects

Create AssetCorrection to an

AssetDelete Asset

End


8/16

Alexs Needs Project

Request Forms Make sure the

capitalization questions

are answered, the

projects descriptionsreasonably match what

the scope of the work is

Is the project with

another state oragency? Let me know


9/16

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)

Bridge New construction, replacement, added capacity, orrehabilitation

Land Purchase of right of way

Building New Building or addition costing $100,000 or more

Depreciable Land

Improvement

Sidewalks, bicycle paths, hiking/biking trail projects

costing $100,000 or more and not part of roadwaycontrol sections


10/16

Roads and Bridges

Road Data Table

Control Section Control section(s) that the project is located on.

Route Route that the project is located on.

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

not required.

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

not required.

Length for Mapping See SAP Help for direction on this.

ParishIf project is located on an actual control section, this is auto-populated. If not,

provide information.

District If project is located on an actual control section, this is auto-populated

FMIS Rural/Urban If off-system project, provide information. Otherwise, this is auto-populated.

FMIS Functional Classification If off-system project, provide information. Otherwise, this is auto-populated.

FMIS Federal Aid System If off-system project, provide information. Otherwise, this is auto-populated.

NameWhen non-state indicator is selected, provide information to help locate the

project.


11/16

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


12/16

Negative Consequences of

Poor Communication We are not adding the

infrastructure as built

We are not removing

the infrastructure whenretired, sold or swapped

We dont know what

we have

Audit Findings!


13/16

Alexs Needs Data Synchronization

and Reconciliations

Periodic checks we call

reconciliations ensure

whats on your

information systems are inmine. There should be no

differences.


14/16

More on Data

Problems:

I dont know if I am

receiving everything

Need to confirm what is inthe engineers information

systems are really getting

into LaGov.


15/16

Alexs Needs - Disaster Situations

Hurricane Season

coming soon

What information we

need? Can we piggyback?

How can we get all our

needs with the leastintrusion?
http://www.friendlyplumber.com/Images/plumbing_101_images/earthquake42.jpghttp://www.blogcdn.com/www.autoblog.com/media/2011/03/japan-earthquake-damaged-road.jpghttp://media.nola.com/environment/photo/twin-spans-hurricane-katrina-damage-interstate-10jpg-77767c25afd30006.jpg


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Closing Thoughts. Questions?

Alex Levy379-1678

[email protected]

s59_capitalized asset or maintenance activity classification_ltc2013

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