1

Finish all current year processing. Items received prior to June 30th (2009) should be added to EIS for FY2009, Any items received after June 30th can be added to the EIS pending file but should not be added to EIS until FY2010.

NOTE: If the depreciation data has been changed so that it is necessary to completely recalculate the life-to-date (LTD) depreciation from the beginning for a number of items, you may need to run the program EISDEPR. However, if you have been tracking depreciation on some of these tags for some time, then this program might cause problems. Let me explain in the following slide:

Example of why it should be used with caution… original cost of item is $650 being depreciated over 10 years However, in the 9th year, an acquisition of $200 was posted and increased the

original cost to $850. Until then, the item was being depreciated $65/year x 8 years for a book value of $520 thus far.

The increase of $200 in the 9th year changed the original cost to $850 so instead of $130 left to depreciate on this item, it’s now $330 for the remaining 2 years. The annual rate of depreciation will now be $165/year.

Once this item is fully depreciated, the history of depreciation will be an annual rate or $65 for the first 8 years, and then at an annual rate of $165 for the remaining 2 years to reflect the true depreciation over the 10 years.

However, if you run EISDEPR in the 9th year, the LTD depreciation would be re-calculated on an original cost of $850 for the past 10 years. This history of depreciation will now be $85/year over 10 years. (so it will no longer reflect the true depreciation over the past 10 years.)

2

Districts with a Life Limit specified for the capitalization criteria may choose to run an EIS304 Brief Asset Listing to verify all items meeting the dollar capitalization criteria also have a valid Life Limit and are on file as capitalized assets.

In EIS304, select non-capitalized items and choose to select only items with an original cost equal or higher than the capitalization threshold. Items not meeting both of the capitalization limits will not be capitalized; therefore, this will produce a listing of any items on file that currently are not capitalized that most likely should be.

3

Enter capitalization option: (C,N,B,?) <B> _ NInclude or Exclude Lot Items by Quantity? (I,E,N,?): <N> _Enter selection option (1-9,*,?): <*> _Do you wish to select items by original cost? (Y,N,?) <N> _ YEnter original cost: < .00> ________.__ 1000

When all items have been entered, run the recommended list of reports (this includes all necessary GAAP schedules).

All recommended FYE reports are explained in detail in the upcoming slides.

4

5

EIS101 – Schedule of Fixed Assets by Source…..provides a summary of the original cost of capitalized items by their source or the fund the items were originally charged to when purchased.

Output file: EIS101.TXT

EIS102 – Schedule of Fixed Assets by Function and Class…..produces a schedule of fixed assets by function and class. Can be generated by function and class, class or a summary by function and class. Creates a summary and detail report

Output files: EIS102S.TXT and EIS102D.TXT

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Made up of items entered on the system without an acquisition record

Item record is missing fund code or fund code does not have a valid fund type specified in EISMNT/FNDSCN

Summary of the original cost of capitalized items by their “source”. Each fund type is printed on a separate page and additional page is printed for “unknown fund” types

Source means “the fund the items were originally charged to when purchased”. EIS101 uses the PO information from the acquisition record (ACQTRN) to identify the source fund used in purchasing the items.

Output file: EIS101.TXT

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Prints the original cost and/or book value of capitalized assets by their function and/or class. Can be generated by function and class, class or a summary by function and class.

The Book Value on the report is the Original Cost minus the Total Depreciation

Output Files:EIS102S.TXTEIS102D.TXT

Contains “changes” in capital asset balances during the current fiscal year The EIS103 creates three reports as listed below:

– The EIS103S is a summary report listing the beginning balance, acquisitions, dispositions, transfers in, transfers out, adjustments, and the ending balance in separate columns horizontally across the report. The following equation is used in determining the ending balance is:

Beg. Balance + Acquisitions - Dispositions + Transfers In - Transfers Out +/- Adjustments = End. Balance

– EIS103D is a detailed schedule of changes. This report lists any individual tag numbers that may have incurred acquisitions, dispositions, transfers, or adjustments.

– EIS103E is an error report. – The summary and detail reports will page break on each fund type: fiduciary,

governmental, proprietary, and undefined.

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The GAAP flag must be set to “Y” to be able to generate this report. For FYE, it is recommend to generate the report 3 different ways (AC, FC

& FD). The report excludes:

– items which do not meet the capitalization criteria – items which have a status of "disposed of", "inactive", or "old tag

number" – items coded as operating leases – Items that have an undefined function, fund, or asset class code will

be placed on a line titled "unclassified". Specific entities can be included or excluded (i.e. NOGAAP)

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Total original cost amount at the beginning of the fiscal year. Should equal the ending balance from the prior fiscal year.

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Any newly capitalized items that have been added during the fiscal year.

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Amounts of items that were part of the beginning balance but were disposed of during the fiscal year.

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Total amount of Transfer into this fund.

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Total Amount of transfers out of this fund.

15

Includes amount for any transaction which have the error adjustment flag set to “Y”. Also includes amounts for items that may have been capitalized at the beginning of the year but are no longer or vice versa (i.e. EISCAP)

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+ +- - + =

17

Totals by Fund Type on the EIS101, EIS102, and EIS103 should match when balancing out for the fiscal year-end.– Any errors reported on the EIS103E report should

be resolved prior to closing the fiscal year.

Contains changes in depreciation of fixed assets during the fiscal year The EIS104 creates two reports as listed below:

– EIS104S is a summary report listing the beginning depreciation, continuing items, acquisitions, dispositions, transfers, adjustments and ending depreciation balance in separate columns horizontally across the report. The following equation is used in determining the ending depreciation

Beg. Dep. + Dep. Continuing Items + Dep. Acq. - Dep. Disp. - Dep. Transfers Out + Dep. Transfers In +/- Dep. Adjustments

– EIS104D is a detailed schedule of changes. This report lists any individual tags numbers that may have incurred acquisitions, dispositions, transfers or adjustments

– Reports will page break on each fund type: fiduciary, governmental, proprietary and undefined.

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The GAAP flag must be set to “Y” in order to generate a valid report. For FYE, it is recommended to generate the report 3 different ways (AC,

FC & FD) The report excludes:

– items which do not meet the capitalization criteria – items which have a status of “inactive” or "old tag number" – Items that have an undefined function, fund, or asset class code will

be placed on a line titled "unclassified". May be used as a depreciation balancing tool with the EIS305.

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Life-to-Date depreciation as of June 30 of the last fiscal year closed for all items that were capitalized at the beginning of the current fiscal year.

Fiscal-to-Date depreciation for all items that were

capitalized at the beginning of the year..

Fiscal-to-Date depreciation for any capitalized items added during the current fiscal year.

Total depreciation (Life to date + Fiscal to date) for any capitalized items disposed of during the current fiscal year

Life-to-Date depreciation for any capitalized items transferred during the current fiscal year.

Total Depreciation (LTD + FTD) for any items that had a transaction posted with the error adjustment flag set to “Y”. Or, items that may have changed capitalization during the year..

+ +

-

+- -+ =

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Depreciation totals on the EIS104 should balance with totals on the EIS305 run for capitalized assets.– Beginning depreciation on 104 should compare to

the LTD depreciation on the 305 (Active Items + Items disposed of during current FY)

– Ending depreciation on 104 should compare to the Total depreciation on the 305 (for active items)

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Depreciation as of June 30 of the last fiscal year. As displayed in ITMSCN. Reported as Beginning Depreciation on EIS104.

Depreciation for the current fiscal year

Original Cost – LTD---------------------------

Remaining Life

LTD + FTD = Total. Reported as Ending Depreciation on EIS104.

Original Cost – Total Depreciation = Book Value

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EIS203 – Asset Listing by Grant/Source Report ….. is a listing of acquisition transactions by source account code and/or by a grant identifier; This is an optional report and contains much of the information found on the acquisition transaction record plus the location of the asset.

EIS303 – Inventory Master Listing…..includes all data on file for items; VERY LARGE report – it can produce a complete listing of all items or of specified subsets (i.e. generate a report of just depreciation information for all items); don’t recommend printing out a hard copy of the report.

EIS304 – Brief Asset Listing….. a one line per item listing of all items on file or subsets; The following EIS304 reports are recommended…they include capitalized items only and Status Codes of “A, N, EH, and EN” (with the exception of the disposition report).

– EIS304ACQ Acquisitions for current fiscal year – EIS304CL Brief Asset Listing by asset class – EIS304DSP Dispositions for current fiscal year – EIS304FC Brief Asset Listing by function – EIS304FD Brief Asset Listing by fund

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EIS305 – Book Value (Depreciation) Report…..shows depreciation information listing original cost, salvage value, book value, % of depreciation, and last year of useful life.

– The date 06/xxxx (where xxxx is FY being closed) is used for the reporting date. The following EIS3045 reports are recommended…they include capitalized items only and Status Codes of “A, N, EH, and EN” (with the exception of the disposition report).

– EIS305CL Book Value Report by class – EIS305DSPCL Depreciation for current FY dispositions by class – EIS305DSPFC Depreciation for current FY dispositions by function – EIS305FC Book Value Report by function

EIS401 – Insurance Values Report…..lists insurable values and replacement cost information for items; insurable values listed reflect the insurance classifications assigned to the item categories in EISMNT/CATSCN; Recommended if the district maintains current replacement cost and/or insurable values on the inventory item records.

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EIS801 – Audit Report…..tracks changes made to the EIS files– For FYE, select the Official Option and keep on file for the auditors used for

an official audit trail; EISCLS Reports: The following reports are generated from the EISCLS

program and recommended to be kept on file– EISCLS.TXT – Ending Balances Report by Fund – EISDEP.TXT – Depreciation Posting Report

When all reports are complete for FYE, make a copy of the EIS files and other appropriate files.

NWOCA has a copy .COM procedure we have districts run. It includes the following files and copies the files to an extension using the current FY (i.e. *.EIS_F09)

– All EIS*.IDX files– EISDAT.REL– EISAUD.SEQ– ACCT.IDX– INAMT.IDX– POAMT.IDX– POHIST.IDX– TABL.IDX– VENDOR.IDX

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Run EISCLS– Creates an EISCLS.TXT as well as an EISDEP.TXT report.– EISCLS.TXT shows the ending balances by Fund, Function and Asset Class.

(These are the beginning balances for the next year)– EISDEP.TXT is a summary report of the current year’s depreciation posted by

fund. Advances EIS last FY closed flag in EISMNT/DATSCN by one year Adds one year’s worth of depreciation to LTD depreciation field If on GAAP, updates beginning balance fields for new FY If NOT on GAAP, ITC needs to assist in helping the district start up on

GAAP by running EISGAAP.– EISGAAP: run only once and at the beginning of the GAAP startup year.

Sets GAAP flag in EISMNT/DATSCN to “Y” Creates beginning information fields for each asset in ITMSCN (EISITM.IDX) Generates a beginning balance report for the GAAP startup year

Date: 04/21/09 Sampleville Schools Page: 1

Time: 10:36 am Ending Balances by Fund - Actual (EISCLS)

Fund Description Ending Balance

Undefined 349,160.00

001 GENERAL FUND 116,421,626.78

006 LUNCHROOM FUND 181,510.09

300 ATHLETIC FUND 297,657.31

572 CHAPTER 1 PROJECT FUND 9,851.00

Total: 117,284,805.18

Date: 04/21/09 Sampleville Schools Page: 2

Time: 10:36 am Ending Balances by Function - Actual (EISCLS)

Function Description Ending Balance

Undefined 0.00

1110 ELEM. INSTRUCTION 102,364,161.95

1120 MIDDLE SCHOOL INSTRUCTION 2,154,098.56

1130 HIGH SCHOOL INSTRUCTION 3,114,896.97

1200 SPECIAL INSTRUCTION 1,127,754.4734

Date: 04/21/09 Sampleville Schools Page: 1

Time: 10:36 am Depreciation Posting Report – Actual (EISCLS)

EIS GAAP Flag is ON

Depreciation Book Value Depreciation Book Value

Posted for After Posting Posted for After Posting

Fund Description All Items All Items Capitalized Items Capitalized Item

Undefined 0.00 349,160.00 0.00 349,160.00

001 GENERAL FUND 16,815,164.43 7,530,978.92 16,834,503.15 7,403,303.94

006 LUNCHROOM FUND 4,112.64 12,872.06 3,487.76 10,732.28

300 ATHLETIC FUND 16,524.95 150,226.68 15,926.28 147,213.75

572 CHAPTER 1 PROJECT 118.81 408.62 34.96 0.00

Total: 16,794,364.68 8,068,837.27 16,815,054.15 7,935,409.97

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When running EISCLS and on GAAP, it updates beginning info fields for capitalized assets for new FY

When running EISCLS and not on GAAP, ITC needs to run EISGAAP for the district. It will create the beginning information for capitalized assets

Each item has “hidden” fields which are referred to as the GAAP fields (a.k.a. Beginning Info Data). These fields are not visible through any of the EIS prorgrams but can be looked at through DATATRIEVE’s ITEMS

These “GAAP fields” are used in calculating beginning and ending balances by the EIS103 program.

Access SAAS21 library and ready the ITEMS domain. Enter SHOW FIELDS and you will see a section at the end of the list titled “BEGINNING_INFO”

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BEGINNING_INFO

BEGINNING_BALANCE <Number> = ORIGINAL COST

BEGINNING_FUND <Character string> = ASSET’s FUND NUMBER

LOOKUP_BEGINNING_FUND <Computed value>

DISPLAY_BEGINNING_FUND <Computed value>

BEGINNING_FUNCTION <Character string> = ASSET’S FUNCTION NUMBER

LOOKUP_BEGINNING_FUNCTION <Computed value>

DISPLAY_BEGINNING_FUNCTION <Computed value>

BEGINNING_CLASS <Character string> = ASSET’S ASSET CLASS NUMBER

LOOKUP_BEGINNING_CLASS <Computed value>

DISPLAY_BEGINNING_CLASS <Computed value>

CAPITALIZED_BEGINNING_OF_YEAR <Character string> = Y or N – Will be “Y” if capitalized asset was added in a prior year– Will be “Y” if EISCAP ran and items once considered non-capitalized is now capitalized– Will be ’N” if capitalized item was added in the current fiscal year

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GA A P

F I E L DS

Capitalized item added during current year (prior to running EISCLS)

Same item after EISCLS has been run. GAAP fields have been set and item will now be included in the beginning balances..

B

E

F

O

R

E

A

F

T

E

R

On the EIS103, the beginning balance column amounts comes from the stored “beginning balance” field of all items that had the capitalized beginning of year field set to “Y”.

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Ending Balance Amount Not Equal to Item’s Original Cost….the following formula is being used for each active item included on the EIS103:

Sum of Current Year Acq. + Beginning Bal. = Orig. Cost

– This means the total of all the acquisition transaction amounts for this item for the current FY are added to the beginning balance amount (stored in a hidden field on the item record) and is compared to the item's original cost found on ITMSCN screen 2. If it doesn’t agree, then the error message is issued and the item is NOT included in the EIS103 report..

Total of all acquisitions posted for an active capitalized item during the current fiscal year

From the stored “hidden” beginning_balance field on ITEM record in Datatrieve

As seen in ITMSCN

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EISSCN/ITMSCN llook at the item’s status (ACTIVE), original cost ($1896.14) and the acquisition date (09/21/2007)

EISSCN/ACQTRN….….look for any current FY acquisitions with the update original cost flag set to “Y”). District is currently in FY08.

DATATRIEVE BEGINNING_INFO SECTIONBEGINNING_BALANCE : 1,896.14BEGINNING_FUND : 001LOOKUP_BEGINNING_FUND : FD001DISPLAY_BEGINNING_FUND : GENERAL FUNDBEGINNING_FUNCTION : 2800LOOKUP_BEGINNING_FUNCTION : FC2800DISPLAY_BEGINNING_FUNCTION : SUPPORT SERVICES-BEGINNING_CLASS : 0300LOOKUP_BEGINNING_CLASS : A 0300DISPLAY_BEGINNING_CLASS : MACHINERY - EQUIPMENTCAPITALIZED_BEGINNING_OF_YEAR : Y

Sum of Current Year Acq. + Beginning Bal. = Orig. Cost

1896.14 + 1896.14 = 1896.14???

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Since this item was added during FY2008, the BEGINNING_INFO section SHOULD NOT contain data… the beginning balance information shouldn’t be set until EISCLS runs for FY2008.

Using Datatrieve, remove all of the BEGINNING_INFO section data. By doing so, the formula EIS103 uses will be correct:

Sum of Current Year Acq. + Beginning Bal. = Orig. Cost $1896.14 + $0 = $1896.14

Ending Balance Amount Not Equal to Zero… ….the following formula is being used for each disposed of item included on the EIS103:

Sum of Current Year Acq. + Beginning Bal. - Orig. Cost = 0

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Total of all acquisitions posted for the capitalized item during the current fiscal year

From the stored “hidden” beginning_balance field on ITEM record in Datatrieve

As seen in ITMSCN

This means the total of all the acquisition transaction amounts for this item for the current FY are added to the beginning balance amount (stored in a hidden field on the item record). The items original cost is subtracted off and the result is compared to 0. If the result is not 0, then the error message is issued and the item is NOT included in the EIS103 report.

EISSCN/ITMSCN llook at the item’s status .. This error usually occurs with an item that has been disposed of (status of "D“). Check for a DSPTRN record to see if it might be in error; original cost ($2790)

EISSCN/ACQTRN….….look for any possible acq. transactions posted in the current FY

EISSCN/DSPTRN….….look for a disposition transaction and verify the date is in the current FY

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DATATRIEVE BEGINNING_INFO SECTIONBEGINNING_BALANCE : 0.00BEGINNING_FUND : 001LOOKUP_BEGINNING_FUND : FD001DISPLAY_BEGINNING_FUND : GENERAL FUNDBEGINNING_FUNCTION : 1130LOOKUP_BEGINNING_FUNCTION : FC1130DISPLAY_BEGINNING_FUNCTION : HIGH SCHOOLBEGINNING_CLASS : 0300LOOKUP_BEGINNING_CLASS : A 0300DISPLAY_BEGINNING_CLASS : MACHINERY - EQUIPMENT - FIXTURESCAPITALIZED_BEGINNING_OF_YEAR: Y

Sum of Current Year Acq. + Beginning Bal. - Orig. Cost = 0

$0 + $0 - $2790 = 0???

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Since this item was disposed of during FY2008, the BEGINNING_BALANCE field should still contain the original cost. At the beginning of FY2008, this item was still active, therefore when they closed FY2007, the beginning _balance field should have been updated with the original cost of the item. Disposing of the item in FY2008 does not affect the BEGINNING_BALANCE.

To correct this, using Datatrieve, enter the original cost to the “BEGINNING_BALANCE”fieldBy doing so, the formula EIS103 uses will be correct:

Sum of Current Year Acq. + Beginning Bal. - Orig. Cost = $0 $0 + $2790 - $2790 = $0

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Transaction Fund/Function/Class Not Equal to Previous Transaction…This type of error occurs when there has been an improper change of Fund/Function/ Asset Class code.

– EISSCN/ITMSCN….look at the current fund/function/asset class, and status of the item

– EISSCN/ACQTRN….….look for any current year acquisitions. If any, note the date, fund/function/asset class (does it match the fund/function/asset class in ITMSCN?)

– EISSCN/TRNTRN…. If the fund/function/asset class code on the ACQTRN record is different from ITMSCN, then there has been a change in the coding (TRNTRN). You should look for a corresponding TRNTRN record and examine it carefully.

One source of the error is when a TRNTRN record has been posted with a date prior to the acquisition date. Compare the date on this record with the date(s) on any ACQTRN records. If the TRNTRN record date preceedes the date on the ACQTRN record, you have the source of the error. You may need to delete and re-add the TRNTRN record.

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The following is a checklist of things that need to be completed before running EISGAAP for a new district or district starting over with a new inventory:

– Capitalization thresholds are set in EISMNT/DATSCN– All locally defined codes are complete in EISMNT– Current fund, function and asset class codes are entered on

each asset– Original cost is entered on all assets– Review capitalized leases– Depreciation information is set for all capitalized items– All acquisitions and dispositions are complete for the current

EIS FY

Before running EISGAAP

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1. Must add an acquisition record for each new item entered.

2. Must add a disposition transaction record for each item to be disposed of.

3. Must enter fund, function, asset class codes on ITMSCN - screen 1 for all new items entered.

4. Must add a transfer transaction record in order to change the fund, function, or asset class codes of an item on the inventory.

5. The original cost of an item cannot be modified without adding an acquisition transaction record and setting the “update original cost” flag to “Y”.

Once EISGAAP is run, you are now bound by certain constraints on the system:

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6. Cannot change the capitalization thresholds directly on EISMNT/DATSCN. Must run the EISCAP program.

Note: If EISCAP is run, the ending capital asset balances for the prior fiscal year will no longer equal the beginning balances for the current fiscal year.

7. Cannot delete an item or transaction if it affected GAAP statements from the prior year. However, they can be deleted if added in the same fiscal year.

8. Transaction dates must fall within the current EIS fiscal year. However, “historical acquisition transactions” can be dated for a prior year. (“Update original cost” field is set to “N”)

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The following is a checklist of things that can be completed before the end of their first year on GAAP (before they run GAAP reports (EIS101 – EIS104)

– Enter historical acquisition transactions for (at least) their larger assets in order to make the GAAP schedule by source (EIS101) more accurate.

– Acquisition method should be verified and updated if necessary. Donated or lease assets may need acquisition method updated so that are correctly reflected on EIS101.

– Any entities that need to be excluded from GAAP schedules or need to be reported separately should have the “entity ID” field in ITMSCN filled in for all items associated with that entity. GASB34 stated items being stored as lots be excluded from the GAAP schedules for it’s suggested that these items be coded with an entity ID such as ‘NO GAAP’. The GAAP schedules have the option to exclude/include entity IDs.

First year on GAAP

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Depreciation is a method of allocating the cost of a fixed asset over its estimated useful life. The usefulness of most assets declines over time and some type of “write-off” is needed to indicate that the asset has declined in service potential.

Previously only proprietary fund type assets needed to be depreciated but under GASB34, it now requires that depreciation be kept on all fund types and for all capital assets except:

– Construction in progress– Land– Certain land improvements (permanent)

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In order to track depreciation in EIS, the depreciation information on screen 2 of ITMSCN must be complete. This includes:– Depreciation Method: (always straight-line for

schools)– Depreciation Beginning Date:– Life Expectancy – LTD Depreciation– (Original Cost)

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• stored on screen 2 of ITMSCN

• always equals the total depreciation for the item through June of the last fiscal year that has been closed

• (EISCLS) will update the LTD depreciation by one year • For the first year that depreciation is being tracked, the depreciation posted

to the LTD depreciation field will be the annual depreciation amount pro-

rated based on the number of months the item is actually being depreciated.

Formula: ORIG COST – LTD – SALVAGE VAL BOOKVALUE – SAL VAGE Yearly LTD Depreciation = ------------------------------------------------- =

--------------------------------------- USEFUL LIFE - AGE (end of last FY) REMAINING LIFE

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Methods available are:– N = None– S = Straight-Line– D = Declining-Balance.

Since only straight-line depreciation is used for school districts, only this method will be discussed

– Straight-line = the original cost - estimated salvage value is spread proportionally over the estimated life of the asset.

– Basic Formula = Original Cost – Salvage Value

Useful Life

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First Year: 650 – 0 – 0 650 - 0

10 - 0 10

Second Yr: 650 – 65 – 0 585 – 0

10 – 1 9

Third Year: 650 – 130 – 0 520 – 0

10 - 2 8

Fourth Year: 650 – 195 – 0 455 – 0

10 – 3 7

ORIG COST – LTD – SALVAGE VAL BOOKVALUE – SAL VALUE------------------------------------------------- = --------------------------------------USEFUL LIFE - AGE (end of last FY) REMAINING – LIFE

= 65.00 LTD = $65.00=

= = 65.00 LTD = $130.00

=

= = 65.00 LTD = $260.00

= 65.00 LTD = $195.00

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Fifth Year: 650 – 260 – 0 390 - 0

10 - 4 6

Sixth Yr: 650 – 325 – 0 325 – 0

10 – 5 5

Seventh Year: 650 – 390 – 0 260 – 0

10 - 6 4

Eighth Year: 650 – 455 – 0 195 – 0

10 – 7 3

= 65.00 LTD = $325.00=

= = 65.00 LTD = $390.00

=

== 65.00 LTD = $520.00

= 65.00 LTD = $455.00

ORIG COST – LTD – SALVAGE VAL BOOKVALUE – SAL VALUE------------------------------------------------- = --------------------------------------USEFUL LIFE - AGE (end of last FY) REMAINING – LIFE

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Recalculates Life-to-Date depreciation field stored in ITMSCN from scratch

Generally, EISDEPR is used after a district makes changes to depreciation (i.e. when a district is cleaning up their files before going on GAAP.)

When recalculating, it looks at the last fiscal year closed recorded on the DATSCN record and calculates depreciation up to that point. Does not include any depreciation for the current fiscal year.

You can run a “projection” which creates an EISDEPR.TXT file listing the items that will be affected when the “actual” option is run. It will list each tag’s “current LTD depreciation” and the “new LTD depreciation” and a grand total at the bottom.

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– Enables you to update all fields on the item records related to depreciation information.

– Prior to GASB34, only Proprietary Fund type assets needed to be tracked for depreciation. GASB34 requires depreciation to be kept for all fund types and salvage values be set to $0.00.

– EIS has option within EISCHG program to mass change to full depreciation

– Calculates Life-to-Date depreciation from scratch– Must have valid original cost, acquisition date, and item category

values in place in ITMSCN in order for the LTD depreciation to be properly calculated.

– Useful life values must also be entered into EISMNT/CATSCN – will be used in EISCHG

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– Can choose to update all items or just those with the “Depreciation Method” currently set to “N”

– Can also choose capitalized, non-capitalized, or both.

– May select straight line or declining balance method– Set salvage value to $0.00– Projection only or actual update

– Both reports will produce a report EISCHG.TXT listing all the changes to be made

EISMNT/CATSCN

EISSCN/ITMSCN

This information is necessary for all capitalized assets to meet GAAP reporting requirements. EISCHG has options to mass update full depreciation for all capitalized assets..

EISSCN/ITMSCN – Before EISCHG

Same item after running EISCHG. Program automatically updated all fields and calculated Life-to-Date Depreciation.

EISSCN/ITMSCN – After EISCHG

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What about items that are not to be depreciated such as land, construction-in-progress, etc.?

– You can choose to set up item categories specifically for these types of items, leaving the useful life value in CATSCN blank. EISCHG will not be able to calculate LTD depreciation for any items with this item category due to the missing useful life values.

NOTE: If you have a Life Limit specified as part of capitalization criteria, this will cause these items to be non-capitalized. You will then need to enter a useful life in EISSCN/ITMSCN for these items.

– Or, set the depreciation method to “D” in ITMSCN for these items prior to running EISCHG. In EISCHG, choose the option to only update those items with a current method of “N”.

– Or, run EISCHG as is and then modify each of the items in ITMSCN. You will need to set the method back to “N” and clear out the LTD depreciation calculated by EISCHG.

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Why would depreciation be incorrect?– The depreciation “beginning date” stored in ITMSCN

was back-dated compared to the acquisition date in ACQTRN (acq date is 01/01/2006 but beg date is 03/03/2006)

– The LTD depreciation figures came from appraisal tape and were wrong from the very beginning.

– Not all fields were filled in ITMSCN for depreciation, causing LTD amounts to be incorrect.

– Most of the time, you just don’t know… what matters is that you correct it!

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Auditor ran EIS305 and states LTD is wrong on an item… how do we verify his totals and how do we correct it?

Current FY = 2008 so last FYClosed = 2007 Claims LTD Depreciation is incorrect…. should be $797.30

To calculate the yearly depreciation:

ORIGINAL COST – SALVAGE VALUE 1248.00 - 0 USEFUL LIFE 6

The last FY closed is 2007 so looking at the beginning depreciation date, it has depreciated a total of three FULL years (2005 – 2007). EIS also does a monthly calculation based on the beginning depreciation. The monthly depreciation is calculated by: Yearly LTD 208.00 12 (months) 12

The beginning depreciation is 09/2003 so to complete FY2003 depreciation, you need to add 10 months of depreciation (September – June)

(3 years x 208.00) + (10 months x 17.33) 624.00 + 173.30

In ITMSCN, modify the tag’s LTD depreciation figure to the correct amount.

Original Cost: 1,248.00

= 208.00 yearly LTD

= 17.33 monthly LTD

= 797.30 new LTD depreciation

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Frequently Asked Questions

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Land and improvements could be divided into two asset classes:

1. Land and Improvements (of which are permanent)2. Depreciable Land Improvements

Outdoor entities which are not permanent need to be classified as Depreciable Land Improvements

– Examples: land improvements which are not permanent include walkways, outside walls, driveways, parking lots, and playground built-ins (should be depreciated)

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*denotes a Datatrieve View (not an actual domain)

ACQUISITIONS (EISACQ.IDX) CLASS_CODES (subset of EISLOC.IDX)*CLASS_TRANSFER_TRANSACTIONS (subset of EISTRN.IDX)* DISPOSITIONS (EISDSP.IDX)DISPOSITION_ORGANIZATION_CODES (subset of EISITM.IDX)*EIS_CONFIGURATIONS (EISDAT.REL) FUNCTION_ACTIVITY_CODES (subset of EISLOC.IDX)*FUNC_ACTIVITY_TRANSFER_TRANS (subset of EISTRN.IDX)*FUND_CODES (subset of EISLOC.IDX)*FUND_TRANSFER_TRANSACTIONS (subset of EISTRN.IDX) * INVENTORY_PENDING (EISPND.IDX)ITEMS (EISITM.IDX)ITEM_CATEGORY_CODES (subset of EISLOC.IDX)*LOCAL_CODES (EISLOC.IDX)LOCATION_CODES (subset of EISLOC.IDX) TRANSACTIONS (EISTRN.IDX)UNDEFINED_TRANSACTIONS (subset of EISTRN.IDX)* Not used

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Error Made on an Item in ITMSCN– On GAAP:

If it’s a modifiable field choose to modify the item in ITMSCN and correct the modifiable field

If it’s a non-modifiable field (i.e. fund, function, asset class or original cost)

– If added during current FY or non-cap., the item can be deleted and re-entered correctly.

– If item was added in prior year and the error was in the fund, function or AC, a TRNTRN should be posted. The “error adjustment” flag should be set to “Y” to indicate the item was incorrectly coded and non a true transfer.

– Not on GAAP: All fields can be modified.

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Error made on Acquisition, Disposition or Transfer Transaction

TYPE On GAAP Not on GAAP

ACQTRN Can’t modify the TYPE, DATE, UPDATE ORIG COST, AMOUNT or ADJUSTMENT (unless in same year)

Can’t modify the TYPE, DATE, UPDATE ORIG COST.

DSPTRN Can’t modify DATE Can’t modify DATE

TRNTRN Can’t modify TYPE, DATE, NEW

Can’t modify TYPE, DATE, NEW

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Item Posted Twice:– On GAAP:

If posted in current FY capitalized or non-capitalized, then delete the extra item through ITMSCN using DELETE function.

If added in prior year, post a disposition transaction for the extra item. The error adjustment flag should be set to “Y” on the DSPTRN.

– Not On GAAP: Delete extra item in ITMSCN using DELETE function.

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Item Mistakenly Disposed Of:– On GAAP:

If disposed in current FY, delete the disposition in DSPTRN using DELETE function. Item’s status will be set back to active.

If disposed of in prior FY, the item needs to be re-added through ITMSCN. Tag # for the disposed of may be modified allowing you to re-add the item using the original tag number.

– Not On GAAP: Delete the disposition transaction through DSPTRN using

DELETE function.

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What items are included on the “adjustment” column of the EIS103 report:

– The EIS103D.TXT will list all tag number of items with amounts appearing in the adjustment column. Items appear in this column for the following reasons:

The “error adjusmtent” flag on some corresponding transaction record is set to “Y”.

It an items isn’t capitalized at the beginning of the year but during the course of the year became capitalized, the total org cost of the item will appear as a positive amount in the adjustment column (in order to include this item in the ending balance)

If an item was capitalized (as part of a lot) at the beginning of year and during the course of the year, the lot was split and one of the sublots no longer meet the cap threshold, the amount of the sublot will now appear as a negative amount in the adjustment column.

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On some of the GAAP schedules, the terms “unclassified” and “unclassified function” appear. What do they mean?

– These terms appear when items have a missing asset class (“unclassified”), or missing asset function code (“unclassified function”) in ITMSCN. To find the actual tag numbers, run an EIS304 report for capitalized items and status of A, N, EH, EN. Scan down the asset class and function columns to find tags with missing codes.

– May appear on the EIS102, 103 and 104 reports

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On the EIS101 GAAP schedule, there is a line entitled “prior to system start-up” with an amount. What makes up this line and can we correct it?

The following reasons can make up the amount in the “prior to system startup” line:– Items that contain no acquisition transaction records– Items where the fund dimension on the acquisition record is

missing– Items where the total amount of all acquisitions for that item

is less than the item’s original cost (the difference is included in the “prior..” line)

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On the EIS101, the terms “unknown fund type” appears on each of the governmental, proprietary and fiduciary fund pages. What do they mean and how can we correct them.

– An item will end up on the “unknown fund type” if Item has no value in “fund code” field in ITMSCN Item has a fund code in ITMSCN but fund type code is blank in

FNDSCN in EISMNT– How do we fix this?

Check fund codes in FNDSCN. If they are missing, add them Run EIS304 for capitalized assets with A, N, EN, EH status and

scan fund column report for items with missing fund. Post transfer transactions (TRNTRN) for any tag with missing

fund code.

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Auditor has requested the useful life for several items be changed. What is the best way to do this?

– Modify the Useful Life field in ITMSCN– Re-calculate the life to date depreciation and modify in

ITMSCN Use the projection option of EISDEPR to let the system

automatically calculate the new LTD depreciation Manually calculate the new LTD using the new useful life and the

calculation outlined in the EIS Depreciation Methods chapter of the EIS User Guide

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I have items such as textbooks and desks on the system as capitalized lots. GASB34 requirements state that these should not be on my GAAP schedules. How can I keep them on file as a lot but off of my GAAP Schedules?

– Bulk items can be kept off of the GAAP schedules by making use of the Entity ID field in EISSCN/ITMSCN.

Enter an entity id such as NO GAAP for these items in ITMSCN. Then when running the GAAP reports you have the option to exclude

specified entity ID’s. Choose to exclude the entity NO GAAP and these items will not be included in the totals on your GAAP schedules.

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If you are on GAAP, you must run EISCAP program. If you decrease the threshold, items not capitalized at the

beginning of the year will now be capitalized. The software will change these records to make it appear as if they were capitalized at the beginning of the year; this will increase the beginning balance amounts on the change schedules.

If you increase the threshold, items capitalized at beginning of year will no longer be capitalized; this will decrease beginning balance amounts on the change schedules

In either case, the total ending balances for capitalized items at the end of the prior FY will NO longer match the balances for the beginning of the new FY. AOS is fine with this but we strongly recommend saving the EISCAP.TXT generated from the EISCAP program because the auditors may ask for it (an EISCAP run is not audited on the EIS system)

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Index File Type of Records Programs

EISITM.IDX Item Records EISSCN/ITMSCN

EISACQ.IDX Acquisition Records EISSCN/ACQTRN

EISDSP.IDX Disposition Records EISSCN/DSPTRN

EISTRN.IDX Transfer Trans Records EISSCN/TRNTRN

EISPND.IDX Points to INAMT.IDX EISSCN/PENDING

EISPND

EISLOC.IDX Locally Defined Codes All EISMNT programs

except DATSCN

EISDAT.REL Configuration Data EISMNT/DATSCN

EISAUD.SEQ Audit Records EISRPT/EIS801

The following USAS files also need to be present in order to run the EIS programs:

ACCT.IDX INAMT.IDX POAMT.IDX POHIST.IDX

TABL.IDX USASDAT.REL VENDOR.IDX

For CIP, what all should be included in the cost of the building? Buildings should include all expenditures related directly to their

acquisition or construction. These costs include (1) purchase price, (2) direct materials, direct labor and overhead (indirect) costs incurred during construction, (3) fees, such as attorneys, architects and building permits, and (4) interest charges incurred during construction.

Capitalized Interest Net interest payments should be included as a part of construction costs. When a building is under construction, all interest paid should be included as a building cost. Occasionally, a district may invest bond money until it is needed. All interest earned should be

– NOTE: Business-type Assets only; interest payments do not need to be recorded for Governmental-type Assets.

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Clean-up Function Codes….– be sure all capitalized assets are classified by the

function they are being used for, not the function purchased from

– 5xxx codes - No assets classified with a 5xxx function code (Capital Outlay). Districts will need to change them after building is completed to appropriate function code (TRNTRN transaction)

Salvage values: With GASB34, auditors are recommending districts use $0 for their salvage values

Purpose/difference between replacement cost and insurable value?

– These fields are optional; it’s up to the district which one they want to use for insurance purposes

– No set preference for which field to use; both fields are displayed on the EIS401 report.

– Definitions from “Fixed Asset Manual for Ohio Local Governments” from AOS Replacement Cost is the cost, usually determined by independent

appraisal, to replace an asset with one of equal usefulness. Usually used for budgeting the replacement of an asset.

Insurable Value is the fixed asset value for insurance purposes to be maintaned

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Either field may be different than the original cost but they default to the original cost when adding the item.

If updated annually, this EIS401 report will produce the information needed for the insurance company.

From what I have observed, the replacement cost is generally higher than the insurable value; the case being insurable value may take into consideration how old it is or condition of the asset whereas replacement is taking into consideration how much would it cost to replacement it with one of equal usefulness.

In CATSCN, you can enter an inflation rate (+/-) and EISCHG will update replacement cost and/or insurable values based on that rate; other option is an appraisal company can assist with updating replacement costs/insurable values.

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What do I do first when bringing on a new district? – Please refer to the “Loading a New EIS Inventory

Tape” document out in ITC SAAS forum (#68)– This procedure describes step-by-step what a

district/ITC needs to do when a district has a completely new inventory done or when a district is new to EIS and needs items mass-loaded

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Create a copy routine that copies current data files to a FYE extension

– Ex: COPY OECN$DTA:EIS*.IDX OECN$DTA:*.EIS_F09

Copy year-end files to archive account– NWOCA has fiscal archive accounts for each district and we

copy USAS/USPS/EIS saved data files to that account– Ex: COPY *.EIS_F09 to ARCHIVE:[AR.F2009]*.IDX

Working on an EISCD procedure (similar to MONTHLYCD) – Generates standard set of reports for districts in txt and pdf

format and copies them to the appropriate OECN$EIS_CDROM: subdirectory

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No planning has begun on a web version of EIS.  Since EIS is a smaller application, the current thought is to not do a 2-stage migration but go directly to a database at a later time

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