Asset Disposal (40.2.4)

1

Certify Surplus Designation

The Agency Surplus Review Board reviews asset Surplus designation and take appropriate steps. The review and certification processes occur outside of Florida PALM but, assets that are certified are marked “Surplus” in the Florida PALM AM module.

2

Identify/ Review Assets for Disposal

The Agency AM Asset Custodian identifies assets for disposal. The Assets Due for Disposition report can be used to identify assets due for disposition based on remaining Estimated Useful Life or disposition date. Assets identified for disposal may also include items that were certified Surplus by the Agency Surplus Review Board.

3

Attach Documents/Verify Proceeds Information

The Agency AM Asset Processor attaches documents to the asset record to support the disposal and substantiate the required accounting transactions. Applicable documents may include lease contracts, internal incident reports, police report, or insurance settlement report. If applicable, the Agency AM Asset Processor verifies disposition proceeds are updated (proceeds result from the sale of assets or insurance proceeds). The location of the attachment function does reflect the sequence of when the action occurs. This step is intended to show that documents can be attached to the asset record. The attachment can occur any time throughout the life of the asset, based on scenario.

4

Online Disposal Entry

The Agency AM Asset Processor uses the AM Asset Disposal Worksheet to select one or multiple assets, initiate approval workflow, and execute disposal.

5

Inbound Asset Transfer & Disposal Request (AMI002)

The Agency AM Asset Processor submits the Asset Transfer & Disposal Request interface to approve and execute disposal of multiple assets.

6

Initiate Approval Workflow (AMW001)

Florida PALM initiates the approval workflow when the Agency AM Asset Processor submits an AM Asset Disposal Worksheet or transmits a completed Inbound Asset Transfer & Disposal Request interface to Florida PALM.

When Approval Workflow is initiated, asset records listed on a submitted disposal worksheet or disposal interface will display a Pending Approval status in AM.

All asset disposals require agency approval. Some asset disposals require inter-agency approval. If the asset is categorized as Vehicle or Equipment General, the disposition must be reviewed by DMS. If the asset was reported lost or stolen, the disposition must be reviewed by DFS.

The approval workflow may have multiple approvers at each level of approval.

7

Review For Approval

If the asset is categorized as Vehicle or Equipment General, DMS reviews the disposal request. If DMS denies the request, Florida PALM removes the Pending Approval status from the asset record. Removal of the Pending Approval status reinstates the option to perform transactional updates, including resubmittal of the transfer request.

If DMS approves the asset disposal request, the approval request goes to the next approver identified in the workflow process. The asset record continues to display a Pending Approval status in AM.

AM approval process provides notification to the transfer requester with denial or approval decision.

8

Review For Approval

If the asset is lost or stolen, DFS reviews the disposal (write-off) request. If DFS denies the request, Florida PALM removes the Pending Approval status from the asset record. Removal of the Pending Approval status reinstates the option to perform transactional updates, including resubmittal of the transfer request.

DFS approval of the request to write-off an asset requires supporting documents that may include an internal incident report or a police report. In addition, asset will only be approved for write-off if the asset cannot be located after two inventory cycles.

If DFS approves the asset disposal request, the approval request goes to the next approver identified by workflow. The asset record continues to display a Pending Approval status in AM. AM approval process provides notification to the transfer requester with denial or approval decision.

During the DFS review and approval process, the asset In-Service status is changed to Suspend. The Suspend status stops the recording of monthly depreciation expense. If the asset is found, the In-Service status is reinstated, depreciation expense is calculated for the suspended period and recorded in the current period.

9

Review For Approval

Dispositions that require intra-agency approval only are routed and approved within the agency for review. If the Agency AM Asset Approver denies the request, Florida PALM removes the Pending Approval status from the asset records. Removal of the Pending Approval status reinstates the asset for transactional updates, including resubmittal of the disposal request.

If the Agency AM Asset Approver approves a request, Florida PALM removes the Pending Approval status from the asset record and makes the record available for the Transaction Loader process.

Agency AM Asset Approver reviews the approval status of asset disposal that requires inter-agency approval and determines final approval.

If the Agency AM Asset Approver denies asset disposals that inter-agency approvers approved, Florida PALM removes the Pending Approval status from the asset records. Removal of the Pending Approval status reinstates the option to perform transactional updates, including resubmittal of the transfer request.

If the Agency AM Asset Approver approves disposals already approved by inter-agency approvers, Florida PALM removes the Pending Approval status from the asset records and makes the records available for the Transaction Loader process.

AM approval process provides notification to the disposal requester with a denial or approval decision.

10

Run Transaction Loader

Florida PALM executes the Transaction Loader process per schedule. The Agency AM Asset Processor may also execute the Transaction Loader process on demand. Transaction Loader selects assets approved for disposal, to start the process of updating various core Asset Management tables.

11

Calculate Depreciation

If the asset is depreciable, Florida PALM initiates the Calculate Depreciation process based on an established schedule. This process calculates the depreciation for an asset for its entire useful life based on the depreciation attributes selected for the Asset – cost, salvage value, and useful life.

Calculate Depreciation may also be initiated on demand for individual asset transactions.

This process must be run when core asset transactions are processed such as:

• Addition of asset
• Update of asset records
• Transfer of asset
• Disposal of asset

If the asset is non-depreciable, Florida PALM by-passes the Calculate Depreciation, and completes the Create Accounting Entries process.

12

Complete Asset Disposal Process

After Depreciation Calculation is successfully executed against each Asset, Florida PALM (per enterprise schedule), runs the following core processes to acquire updated Asset information and create accounting transactions. The Agency AM Asset Processor may also run these processes on demand.

Load Depreciation Reporting Table process - This process loads the Depreciation Reporting table (DEPR_RPT) with life-to-date depreciation expense data. Content of DEPR_RPT table provides the basis for most depreciation reports.

Load Asset Net Book Value Process - This process loads the Asset Net Book Value table (ASSET_NBV_TBL) with data used for Asset Net Book Value reports.

Depreciation Close - This process generates period depreciation accounting entries for all depreciable assets in a particular accounting period. The process should be run for an accounting period that has not yet been closed.

Create Accounting Entries - This process generates accounting entries for all financial transactions unrelated to depreciation. Examples for accounting entries are asset cost, increase of asset cost, and transfer of assets.

Depreciation Allocation - This process allocates asset cost and/or depreciation expense from Governmental Fund to Ownership Fund if applicable. Governmental funds account for one fiscal year of information and cannot own assets with useful life greater than one year. An ownership fund is a long-term account that represents the entity in which assets are maintained for governmental funds.

13

Generate GL Journals

Journal Generator (JGEN) processes posted accounting entry data from the Florida PALM source modules, summarizes the data, and creates journals in the General Ledger. The Journal Generator process will edit, budget check, and post the journal entries created during the process. Please see 10.2 Enter and Process Journals for more information on source module journal entries.

14

Outbound Asset Extract (AMI003)

Florida PALM provides an outbound file with data of asset additions, updates, transfers and disposals. The Outbound Asset Extract includes asset records that are marked as Fully Sensitive and asset records marked as Partially Sensitive.

AM05

Disposal of Fixed Asset

(e.g. Disposal by sales)

Disposal of Fixed Asset  

Debit/Credit: Gain/Loss 

Debit: Accumulated Depreciation

Credit: Fixed Asset

Debit: Accumulated Depreciation (S)

Credit: Fixed Asset (S)

Debit/Credit: Gain/Loss 

Debit: Accumulated Depreciation

Credit: Fixed Asset

Debit: Accumulated Depreciation

Credit: Fixed Asset 

R3

R6

R7

AMI002

AMI003

N/A

AMW001

02/08/2024

Original Version