Asset Management enables management and control of an organization’s fixed assets throughout their life cycle.
The tracking of a fixed asset begins with the acquisition of the asset, includes any maintenance transactions to record asset changes (such as improvements, modifications and transfers), depreciation updates, and ends with asset disposal.
For example, any transaction that meets all of the following criteria can be called fixed assets:
- Acquired for use in operations.
- Has a useful life of greater than one year.
- Has a cost of $5,000 or more or any other pre-defined amount.
- Considered a single asset or multiple parts of an asset purchased in the same fiscal year.
- Is not for resale.
Asset Management - Criteria for Measuring Success:
- Maintain a single fixed asset system integrated with other financial management activities (purchasing, accounts payable, etc.).
- Integrate capital project management tracking with payable and purchasing systems to support assets created by the State.
- Maintain multiple asset classifications and flexible functionality tied to asset classes (depreciation, policy structure, accountability, etc.).
Examples: How it might affect you …
|Current Process||Statewide Process|
|The State currently generates Financial Suspense and Property Suspense Documents within AFIS. Shells are generated based on Comp Object usage.||The State will leverage the Fixed Asset Shell generation process in Advantage. Shell generation will be based on Commodity Code rather than Object code.|
|The State currently deletes and adds assets in AFIS to achieve a transfer. Arizona Advantage facilitates transfers using a Fixed Asset Transfer (within funds) or a Fixed Asset Internal Transfer (between funds).||Arizona Advantage facilitates transfers using a Fixed Asset Transfer (within funds) or a Fixed Asset Internal Transfer (between funds). |
|The State currently has a decentralized environment utilizing several tools including spreadsheets, databases and fixed asset software to track and monitor Capital Improvement Projects.||The State will utilize Arizona Advantage Program Asset Generation to record Capital Improvement Projects which are then converted to the final asset. |