Department Champion Date Page 1 Fitness First Using Asset 4000 24 February 2009 Sage User Network Winnersh.

Department Champion Date Page 1

Fitness FirstUsing Asset 400024 February 2009Sage User NetworkWinnersh


Fitness FirstHistory

• Company started 1993 with one gym in Bournemouth

• 160 gyms in UK with 442,000 members

• Presently 550 gyms globally throughout UK, Europe, Asia and Australia

• Over 1.5 million members worldwide

Haringey opened 2008


Why have a Fixed Assets register?

• Directors responsibility to safeguard company’s assets

• Internal controls need to be implemented to ensure assets are protected from theft and damage

• Disposals controlled and authorised

• Fixed Asset register basis for these internal control systems


Fitness First Fixed Assets team

• Finance department based Head Office in Poole, Dorset

• Fixed Assets Manager

• Fixed Assets Analyst

• Fixed Assets Transactional Administrator – part time

• Project Accountant


Fitness First and Asset 4000

• In 2001 upgraded to Sage Line 500 from Line 100

• At this time started using Asset 4000 (previously known as Britannia)

• Looking at Fixed Assets solution to roll out throughout the rest of the company in Europe


Fitness First UK Fixed Asset Register

• Over 100,000 assets on register

• Historic Cost Accounting (HCA)

• 160 UK cost centres

• Categories

• Sub-categories

• Projects


Structure of Fixed Assets register

Cost Centres

Land & Buildings•Air Con•Electrical•Flooring•Lighting•Showers

Plant•Audio visual •Furniture

IT equipment•Hardware•Software•Licenses

Fitness Equipment•Cross trainers•Treadmills•Bikes


Composition of Fixed Assets

18%

40%

31%

11%

Land & Build

Plant

IT

Fitness


Tasks used on Asset 4000

• Acquisitions and capital expenditure

• Disposals

• Depreciation

• Transfer event

• Impairment of assets

• Re-life's

• Splitting assets


Capital Expenditure

• £2 million capital assets recently purchased at Baker Street gym adding 400 new assets to our Fixed Assets register

Baker Street swimming pool


Capital Expenditure

•Upload new assets – 400 to 600 per month•Use Sage project ledger to obtain information for Land & Build and Plant•Fitness and IT assets are recorded from invoices•Automatic upload from spreadsheet or individually•25 user defined fields and 25 further fields available to add information•Provide information to other areas of the business

Baker St 100 metre running track


User defined fields


Disposals

• To show the accounting disposal of an asset on the register

• Removes value from the register

• Disposals – 400 - 600 per month

• Perform batch disposals

• Calculates profit or loss on disposal

• Automatically creates Sage journal to post to general ledger

• Keeps history of events as an audit trail


Depreciation

• Depreciation is the accounting method of allocating the cost of an asset over it’s useful economic life so therefore depends on the nature of the asset

• Asset 4000 ensures easy compliance with company’s depreciation policy

• Straight line basis or reducing balance basis

• Calculates depreciation on all assets each month

• Automatically creates Sage journal to post into general ledger

• Non-depreciating assets e.g. land


Transfer event

• Transfer event indicates that one or more of the user codes recorded against the asset should change

• Example - transfer assets between cost centres, SL to ND

• Can either complete an individual or batch transfer

• Automatically creates Sage journal to post to general ledger

• Keeps history of events as an audit trail


Impairments

• Asset 4000 allows recognition of impaired assets under IAS 36 (FRS 11)

• Ensures Fixed Assets are recorded in financial statements at no more than their recoverable amount

• Automatically makes necessary adjustments to depreciation journals posted into Sage


Re-lifeing assets

• Life of assets can be adjusted on Asset 4000 to indicate that the useful or remaining life of an asset should change

• To recognise changes in company accounting policy

• Acquisitions where assets UEL is different

• Automatically recalculates depreciation and creates Sage journal


Splitting assets

• Split option to create additional assets from an existing asset on the register

• Used for partial disposals

• Prior history splits with the original and newly created assets as if they had been recorded in this way


Asset 4000 and Compliance

• Compliance with accounting standards – IAS 16 (FRS 15), IAS 36 (FRS 11)

• Compliance with company’s accounting policy

• Audit compliant – check physical existence of assets


Internal Reporting

• A variety of reports can be run through Asset 4000 to help with internal management reporting

– Depreciation Lists

– Asset Lists

– Asset Register Reports

– Disposals/ Transfer Reports

– User Defined Reports

• All the reports can be viewed on screen, printed, exported directly to Excel or saved as a csv file

• Any report can be filtered or organised by any of the fields used within the assets, including user defined fields


Depreciation Lists

• Most commonly used within Fitness First

• Shows GBV, NBV, year to date, period and accumulated depreciation and the original and used life at any period in time for a number of assets

• Exporting into Excel makes them easy to incorporate into more complex reports

• Assist with a variety of monthly tasks, especially reconciling Asset 4000 with Sage


Asset Register Reports

• Shows all the information within the register for individual assets


User Defined Reports

• Easy to use. Fully customisable allowing reports to be created to meet the users requirements

• Used to extract other information held against assets not shown within standard reports

• Automate long processes and to help with standard monthly reports

E.g. National Statistics

• Quarterly Capital Expenditure form to be completed

• User defined reports written to meet the reporting needs

• Used to take several hours to complete, but now takes just a few minutes


Capital Expenditure Reporting

• Information unobtainable from Sage is required for monthly reports, often from user defined fields in Asset 4000. User defined reports allow us to extract this information

• IT capital expenditure is analysed monthly with information including cost by project, sub category, description and cost centre required

• Fitness Equipment spend for the period is needed by category, sub category, series, cost centre etc

• Export directly to Excel where we can integrate information into monthly management reports


Reconciling Asset 4000 with Sage

• Crucial as we use both systems to produce management reports

• Performed every month, ensuring accuracy and reliability of information

• YTD Depreciation list for categories from Asset 4000 and Capex TB from Sage exported directly to Excel

• Excel then looks up GBV, NBV and accumulated depreciation and flags variances on a club by club level, by category

• Allows us to make changes and reconcile to zero before we close periods on either system


Physical verifications

• Every clubs fitness equipment is audited every 3 years, meaning between 50 and 60 fitness audits per year

• We have a standard list of fitness equipment we use for uploads and therefore auditing our clubs

• Using the Excel tool kit we can easily amend information within asset registers for specific clubs as a result of the fitness audit


Tool Kit for Excel™

• Latest software update for Asset 4000 and a great new enhancement to the existing suite of products

• Allows us to easily import/export information and facilitates easy modification of asset codes, descriptions, notes, and all other fields en mass

• Data is downloaded, amended and then uploaded simply, and in a matter of seconds


Tool Kit for Excel™

Benefits for Fitness First include;

• Transactions such as transfers, relifes and revaluations being uploaded in bulk from Excel, offering significant time savings. Perfect for physical verifications. (Disposal function to be included in upcoming upgrade.)

• Monthly uploads of assets quicker, with greater efficiency through the Excel Toolkit

• Data validation and input masks allowing us to control data entry and restrict the chance of human error

• Incorrect entries are automatically detected and we are alerted, giving us options for action on errors

• All changes maintained in a full audit trail within Asset 4000


Inventory 4000

• System to assist with physical verifications

• Barcode equipment, with information stored on the system

• Handheld scanners used to import data from system, scan barcodes and then export data back into system

• User has options to transfer or dispose of equipment during the audit

• System will then make amendments automatically to register

• Would have worked great but due to size of estate and lack of human resources was not cost effective


Integration with Sage

• Running depreciation periodically creates a journal that can be exported directly into Sage

• Captures and posts all depreciation, transfers, relifes and disposals created in Asset 4000 automatically using the nominal codes we created. These can be modified at any point in time as required

• This has been easily set up to specifically meet our needs

• Reconcile the two systems using Excel


RAM helpdesk

• Available by phone or e-mail and are always extremely helpful and knowledgeable

• Response time is very good and are able to advise on occasional system problems and errors, as well as technical issues and training requirements

• Access to RAMs FTP site allowing data to be easily transferred


The Future

• Looked at implementing Sage Asset Manager system, but this did not entirely meet our needs

• Real Asset Management are now working with Sage on creating an interface and we understand the two companies are in talks over a fully integrated system

• This would allow invoices entered on Sage to automatically be created as assets in Asset 4000, monthly depreciation calculated automatically and tasks such as transfers, relives and disposals a lot more straight forward


Asset 4000

Questions


Thank you.

Department Champion Date Page 1 Fitness First Using Asset 4000 24 February 2009 Sage User Network Winnersh.

Documents

department champion

fixed assets register

capital assets

structure of fixed assets

fixed assets solution

asset asset

uk fixed asset register

europe slide