|
|
 |
 |
|
Final Manual Reconciliation
In most cases it is necessary to conduct a manual reconciliation of client’s “floor” fixed
assets with their “book” fixed assets. This reconciliation process identifies “phantom assets
which have been retired physically, but not financially. The reconciliation process provides
significant personal property tax savings for clients and an immediate ROI.
Assertive’s systematic method of reconciliation yields cost effective information for our
clients. The scope of manual reconciliation work is dependent upon the level of detail and the
existence of serial number and asset tag number information in the client’s original fixed
asset listing. In addition, the failure to have assets labeled with number tags or the
subsequent removal of asset tags will require that manual reconciliation be conducted. Manual
reconciliation requires discussion and inquiry between Assertive and clients. The following
outlines Assertive ’s systematic approach to completing manual reconciliation of clients fixed
asset inventory:
Assertive reviews PEER\FA system reconciliation by serial number, bar-code number, or asset tag number
Assertive reviews with client the acceptable audit risk in terms of materiality to the financial statements as awhole
Assertive makes fixed asset file adjustments to client’s fixed asset file—Ex.: If client only captures last six serial number characters- Assertive will add or drop characters to facilitate matching process
Assertive sorts assets by standard description and collection code
Assertive visually examines fixed asset records, prioritizing high value records in order to reduce audit risk
Assertive researches purchasing records when cost-effective, for missing fixed asset details (serial numbers, quantity and type of assets purchased under each line item) to complete client’s fixed asset file
Assertive manually reconciles New Asset Report items (asset collected but not able to be matched to client’s fixed asset records by serial number, bar code or asset tag number) with Missing Asset Report items (assets on client’s fixed asset records but not able to be matched with physical inventory data by serial number, bar code number or asset tag number) by model #, serial #, description, manufacturer, and location
Non-taggable leasehold improvement assets are researched and generally reported as reconciled
Assertive analyzes any mass assets and makes recommendations for individual asset assignment and asset valuations
Assertive delivers preliminary reconciliation reports and requests client’s feedback
Client provides feedback and additional information enabling Assertive to finalize the reconciliation process
Assertive provides final reports: reconciliation, new assets, and missing assets
Costs based on budgeted hourly rates:
$45/ hour Asset Technician
$65/hour Data Manager
$75/hour Project Manager
$95/hour Project Executive
$125/hour CPA Manager
After reviewing a sampling of client’s fixed asset information, Assertive provides an
estimated total cost for manual reconciliation.
|
|
