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Introduction toAsset Accounting
Alex Levy, CPA
Asset Accountant
February 20, 2013
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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
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What is thefinal product?
Annual Financial Reports:
Capital Outlay
Louisiana Transit
Authority
Crescent City
Connection
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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?
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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)
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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.
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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
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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
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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
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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.
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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
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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!
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Alexs Needs Data Synchronization
and Reconciliations
Periodic checks we call
reconciliations ensure
whats on your
information systems are inmine. There should be no
differences.
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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.
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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?
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Closing Thoughts. Questions?
Alex Levy379-1678