Asset Disposal (40.2.4)
  • 08 Feb 2024
  • 10 Minutes to read
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Asset Disposal (40.2.4)

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Article summary

Business Process Overview

The asset management process within Florida PALM involves several stages overseen by the Agency Surplus Review Board and Agency AM Asset Custodian. Assets certified as surplus are marked in the system. The disposal process is initiated by the Agency AM Asset Custodian, who identifies assets for disposal using reports and attaches supporting documents. Disposal is executed using the AM Asset Disposal Worksheet or Asset Transfer & Disposal Request interface, triggering an approval workflow. Approval involves multiple levels, including agency and inter-agency approval for certain asset categories. Denial or approval decisions trigger notifications to requestors. DFS and DMS review specific disposal requests, and if approved, assets enter the Transaction Loader process for updates. Depreciation calculations and accounting entries are then processed based on the asset's depreciation attributes. The system generates various reports and outbound files containing updated asset information. The entire process ensures proper asset management and accounting in Florida PALM.

Business Process Diagram

Business Process Diagram for 40.2.4 Asset Disposal

Business Roles

The Business Process Flow Diagrams use horizontal swim lanes to depict where activities are performed by different parties or systems. Each swim lane is titled with a role, either agency-based or within DFS, and in some cases, are representative of an external entity or system. The swim lanes may change from page to page within a single business subprocess as more or fewer roles are required to execute sections of the business subprocess. 

  • Agency AM Asset Approver: role responsible for approving asset transfers in Florida PALM
  • Agency AM Asset Custodian: role responsible for managing assets
  • Agency AM Asset Processorrole responsible for creating and maintaining asset records in Florida PALM
  • DFS AM Asset Approver: role responsible for approving Asset Write-off in Florida PALM
  • DMS AM Asset Approver: role responsible for approving asset transfers in Florida PALM
  • Agency Surplus Review Board: (Non-Florida PALM role) role responsible for certifying Asset Surplus designation

Business Process Flows Details

The tables below describe steps in each business subprocess as reflected on the Business Process Flow Diagrams. The tables also reflect information associated with each step describing the intent of the specific process. Florida PALM screenshots are included within the sections to allow connections to be made from specific business subprocess steps to screens within Florida PALM. This information should be read in conjunction with the Business Process Flow Diagrams.

Process Step ID

Process Step Title

Description of Process

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 requestor 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 requestor 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 requestor 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.

Asset Disposal Page

Asset Disposal Page

Accounting Events

Accounting events originate during transaction processing in the applicable source module. The accounting events impact the source module, Commitment Control ledgers, and the General ledger (Actuals).

  • Source Module accounting entries require user input (I) of the primary line (i.e., expenditure, revenues) with an automated (A) system offsetting line (i.e., payable, receivable) during transaction entry. The source model transaction must pass Edit Check, Budget Check, and Cash Check (on applicable entries) prior to posting the transaction.
  • The Run Budget Check (Commitment Control) process automatically affects balances in the appropriate budget ledger (i.e., appropriation, spendable cash) if the transaction passes the budget check process.
  • After the transaction is posted in the source module, an automated system process summarizes and posts the entries in the General Ledger module to the Actuals Ledger.

The table below provides the most common accounting events applicable to this business process.

Acct Event ID 

Accounting Event

Commitment Control Ledger(s) Impact

Source Module Accounting Entry

General Ledger (Actuals) Entry

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)



No Entry

Debit/Credit: Gain/Loss 

Debit: Accumulated Depreciation

Credit: Fixed Asset




Debit: Accumulated Depreciation

Credit: Fixed Asset 



Reports

Key Reports are displayed as icons with the Report Number on this Business Process. The table below provides the reports identified to be produced at a particular process step or is used to support the completion of a process step.

Report Number

Report RICEFW ID

Report Description

Report Source

Report Frequency

Audience

R3

AMR045
Asset Approval/Denial Report – a report of asset transactions that have been approved or denied.
Data Warehouse
Periodic
Agency

R6

AMR003
Asset Remaining Useful Life Report – a report of assets due for disposition, based on the remaining estimated useful life, disposal date and asset type .
Data Warehouse
Periodic
Agency

R7

AMR014
Asset Disposition Report – a report of asset dispositions by type. The report provides totals for the asset dispositions and details regarding the asset descriptions, custodians, and dates of acquisition and disposition. This report is used to monitor asset dispositions for compliance with applicable statutory and other requirements, and supports details required for financial reporting.
Data Warehouse
Periodic
Agency, DFS

Note: A complete list of reports may be found in the Reports Catalog.

Interfaces

The table below provides the Interfaces identified on the Business Process.

Interface Number

Interface Description

Interface Frequency

Source

Target

AMI002

Inbound Asset Transfer and Disposal Request - Inbound interface to request asset transfer and disposal approval.
On Demand
Agency Business Systems
Florida PALM

AMI003

Outbound Asset Extract - Outbound asset extract file containing both physical and cost information.
On Demand
Florida PALM
Agency Business Systems

Note: A complete list of interfaces may be found in the Interface Catalog.

Forms

The table below provides the forms identified on this Business Process.

Form Number

Form Description

Audience

N/A



Workflows

The table below provides the workflows identified on this Business Process.

Workflow Number

Workflow Description

Audience

AMW001



Version History

Date

Revision Description

02/08/2024

Original Version

Attachments

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