Asset Management BPR - University of Nevada, Las Vegas · PDF fileBusiness Process...

iNtegrate 2 Business Process Redesign:Business Process Recommendations

Asset ManagementMay 31, 2013

Business Process Recommendations: Introduction

Draft & Confidential, Not for Distribution.

Business Process Recommendations

3© 2012 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

SUB-PROCESS RECOMMENDATION CONTENTS

Recommendations for a redesigned workflow and supporting materials for each of the sub-processes reviewed as part of the iNtegrate 2 BPR project are detailed in the following section. Each sub-process section includes the following:

• Process Overview: A summary narrative of key process steps within the sub-process.• Recommended Future State Process Flow: Detailed process flow of the Future State process steps.• Key Process Changes: For those steps within the Future States that represent primary changes (for one or more

NSHE institutions), an explanation, and justification as necessary, for the process change is highlighted• Alternative Process Options: Process Options not recommended in the future state flow are highlighted along

with a justification of why this option is NOT recommended or incorporated in the process.• Policy Change Requirements: Instances when either institutional or NSHE policy need to be developed or revised

in order to facilitate the recommended process are noted, including recommendations for policy content.• Implementation Challenges: When elements of the recommended future state process were questioned during

workshops or noted as significant areas where implementation would be difficult, further discussion and justification is provided along with examples of institutions also utilizing the recommended process.

• The examples provided are individual institutions utilizing these recommended practices. NSHE represents a diverse set of 8 institutions and the system office presenting limitations in identifying a comparable system or organization that has broadly implemented “best practice” or recommended processes.

• Technology Requirements: Elements of a required technology to enable the process are listed by process step.• Reporting Requirements: Reports, metrics and data points required to monitor and control the process are listed.• NSHE Feedback: Index of comments/feedback provided by NSHE institutions and the Huron response, as needed.




POINTS TO CONSIDER

Each sub-process section incorporates some fundamental concepts that should be understood in order to fully consider the recommendations and supporting content.

• Recommendations versus Current State:• These process recommendations represent Huron’s recommendations for a future state business process

and are not intended to comment on the current state processes across NSHE.• Some process elements may already be the practice of some or all NSHE institutions.

• Business Process Swimlanes (horizontal bands):• The business process focuses on the process steps and the work accomplished in these steps and not

the process owners/work locations. Therefore, the developed flows include general swim-lanes that are not role/location specific, such as Accounts Payable Administration, Travel Administration, Research Administration, etc.

• Flows do include required roles like Vendor, faculty/employee/Investigator, etc. but they do not highlight Administrative Assistant, Vice President of X, etc. The recommended process steps can be applied universally and the steps can be aligned in whatever roles/units are appropriate by institution.




POINTS TO CONSIDER

Each sub-process section incorporates some fundamental concepts that should be understood in order to fully consider the recommendations and supporting content.

• Existing Supplemental Systems:• Some NSHE institutions have implemented different “systems” or technologies that are supplemental to

the Human Resources or Finance Administration Systems. These process flows assume the existing technologies are integrated into the Future State Business Process.

• Out of Scope Systems:• Some process flows incorporate Non-Human Resource/Finance Systems that are out of scope for

iNtegrate 2 (i.e. a Pre-Award “tracking system”). However, in order to be in line with best practice elements, these out-of-scope technologies were incorporated into the recommended processes.

Business Process Recommendations: Asset

Management


PROCESS OVERVIEW

Asset Management BPR: ID & Delivery

7

• A department, group, or other entity identifies the Fixed Asset or Sensitive Equipment to purchase and Purchasing Administration is notified (for Fixed Asset purchases) via the Procurement processes.

• A department may also borrow equipment from another institution or organization, which must also be entered into the Asset Management System (AMS). Borrowing department will collect asset information from the lending institution and complete and submit a request to Asset Management Administration for an asset record to be created in the AMS.

• Purchasing Administration enters identifying Fixed Asset information into the AMS, which simultaneously creates a record of the asset in the inventory solution database.

• Upon receipt of the item, the receiver accesses the web-based inventory solution to add receipt, location, and responsible party information to the asset record. This data automatically updates the asset record information through the AMS/Inventory solution interface.

• Fixed Assets and easily identifiable Sensitive Equipment received at a central receiving location are tagged immediately, however, only the group/department purchasing the equipment acknowledges final receipt for purposes of approving vendor payments and to formally assume physical ownership of the asset. This is facilitated by the web-based inventory solution, which generates a receipt acknowledgement back to Purchasing.

• Items not received centrally require tagging. The receiving department acknowledges receipt of the item via the web-based inventory solution and makes a request to have the item tagged.

Asset Management Identification and Delivery is the sub-process in which a Fixed Asset or Sensitive Equipment is obtained by the institution and identified and tagged as an asset.

Sensitive Equipment & Fixed Asset Identification & DeliveryDe

part

men

tAs

set M

anag

emen

t Adm

inist

ratio

nPu

rcha

sing

Adm

inist

ratio

nPhase

1: Identify fixed asset or sensitive

equipment to purchase or borrow

6: Code as FA or SE in system and on PO at time of purchase

10: Receive item at dock

13: Look up PO in Asset Management

System

16: Deliver item to department

14: Log item into Asset Management

System

Start

2: Acquisition method?

11: PO included? 12: Identifiable as FA or SE?

15: Open & tag item with barcode

7: System routes electronic copy of

PO to Asset Management

Yes

No

Yes

No

18: Missing Asset tag?

19: Ordered via purchasing?

20: Receive notification from

Asset Management System

21: Set up appointment with

Asset Management to receive tag

Stop

22: Tag asset and verify/log into Asset

Management System

Stop

No

YesYes

No

17: Generate receipt and approve

payment

Purchasing dept

P-card

8: Code as SE during P-

card rec

9: Delivery method?

Delivery to dock

Pick-up at retailer

3. Document Asset info from lending

organization; submit to Asset

Management

Loan

4. Create Asset Record in Asset

Database

5: Delivery method? Dock

A

A


KEY PROCESS CHANGES


9

The following table outlines the major process changes (NSHE-wide) incorporated into the recommended process.

Process Flow Title:

Process Step(s): Explanation and Change Justification:

Identification & Delivery 3Equipment borrowed by the institution from other institutions or other organizations is added to the department inventory and so that it may be covered by the institution’s insurance program. Department submits request to Asset Management Administration for creation of a new asset record via a web-based request form.

Identification & Delivery 4 Asset Management Administration creates an asset record in the AMS, using the information provided by the borrowing department, and notes the asset as borrowed equipment, including estimated return date.

Identification & Delivery 6All Fixed Assets and Sensitive Equipment procured through purchasing are identified as such at the time of purchase by pre-determined identifiers on the PO and/or in the financial system, as appropriate. This streamlines the identification process downstream.

Identification & Delivery 8 All Sensitive Equipment purchased via P-card is coded as such during the P-card reconciliation process. This is the responsibility of the purchaser. Capturing equipment early reduces errors and untagged equipment later.

Identification & Delivery 13Through the use of hand-held scanners and an inventory solution, package POs are matched against POs in the Asset Management System (AMS). Although it is unlikely that every delivery includes a PO number, those that do are entered into AMS immediately. Capturing assets early on reduces errors and untagged assets later.

Identification & Delivery 14

Hand-held scanners and web-based receiving portal allow for Fixed Assets and Sensitive Equipment to be logged into Inventory Management System at time of delivery and assigned location, responsible person, date acquired, value, serial number, purchasing account number and other pertinent information. Once an asset is logged into AMS, it is much easier to track. Partial deliveries are entered as well to ensure that all parts are accounted for.

Identification & Delivery 17Departments are responsible for reviewing assets for condition, parts, etc. and an asset tag. Purchaser approves payment via purchasing system when asset is complete and properly functioning. Borrowed equipment receipt is also acknowledged at this point.

Identification & Delivery 14, 15, & 22All items that can be identified as SE or FA are opened and contents verified at delivery. Vendors are educated such as to provide PO information/data on the shipping labels, etc. Tagging assets at this stage reduces likelihood of errors or skipped assets later.

Identification & Delivery 22 Asset Management is responsible for the physical tagging of all Fixed Assets. Tags are not provided to department to affix. This ensures that all tags are actually affixed to assets.


ALTERNATIVE PROCESS OPTIONS


10

The following table outlines the alternative process options that are not recommended for implementation.

Process Step(s): Alternative Process Justification for Non-Recommendation:

17 Payment cannot be approved until item is tagged. While this process alternative improves asset tagging and compliance, this may not be feasible given technology limitations.


POLICY CHANGE REQUIREMENTS


11

The following table outlines the policy change requirements necessary to facilitate the recommended process.

Policy Level: Policy Requirement Type: Policy Addition/Change Requirement:

NSHE Change

Define Sensitive Equipment and Fixed (Capital) Assets via an NSHE-level policy. The definitions for each type of asset, specifically Sensitive Equipment, should be set to the Federal and/or state required minimum definitions. Eliminate any supplemental institutional policies that expand the definition and/or tracking beyond the minimum requirements contained in System-level policy.


IMPLEMENTATION CHALLENGES


12

Some recommended process changes were highly contested and discussed during the workshops and may be particularly challenging during the implementation phases.

Implementation Challenge Area: Purchasing Sensitive Equipment via P-card• Because Sensitive Equipment (primarily computers) are not delivered to receiving, they are difficult to track.• This is an issue in the current state, and not unique to the recommended process, though it will continue to be a concern.• This issue should be addressed by coordinating with the IT department to ensure that no computers are set up unless they

have been properly tagged. Education and training of purchasers will also alleviate this problem.

Recommended Process References

Institution: Current Process:

UNLV, NSC IT administration at both UNLV and NSC verifies that computer equipment has been tagged and logged in with Asset Management administration before servicing a device.

West Coast Research University

All computers carry university inventory tags. Tag numbers and other equipment information are tracked by IT. IT is involved in the setup, monitoring, and disposal of all technology assets.

Midwestern Medical Center

The medical center requires departments to track sensitive equipment from purchase to disposal. Sensitive Equipment isdefined as “items that are susceptible to theft AND that may contain private and confidential information.” Examples include: laptop computers, iPads, tablets, and off-campus desktop computers. Policy further requires that all computers/laptops, etc., be setup with security protocols by a technical support specialist before being used on the network.

East Coast ResearchUniversity

The university requires all computer and firearm purchases, regardless of cost, to be tracked and subject to inventory. Additionally, computer p-card purchases must be accompanied by a “Computer Reporting Form,” which is submitted to the Property Department.


IMPLEMENTATION CHALLENGES


13

Some recommended process changes were highly contested and discussed during the workshops and may be particularly challenging during the implementation phases.

Implementation Challenge Area: Opening & Identifying Packages at Central Receiving• For asset tracking purposes, it would useful to open all packages at receiving. However, the recommendation presents a

challenge for three reasons: 1) Depending on the type of item or vendor, it may increase liability issues for the end user; 2) staffing and space constraints do not allow receiving personnel to inspect every package carefully; and 3) ideally, vendors would include a PO number with every package, but often they do no, making identification a near impossibility

• Our recommendation seeks to build upon current capabilities through the adoption of a more robust inventory tracking solution, i.e., scanning technology. Our recommendation also assumes the implementation of a procurement solution and corresponding processes that further enable the recommended process. However, we recognize that not every package can be identified at receiving, so the recommended process includes mechanisms to identify assets that slip through.


TECHNOLOGY REQUIREMENTS


14

The following table lists the system technology requirements necessary to support the recommended process.

Process Flow Title:

Process Step(s): Technology Requirement:

Identification & Delivery 3 Allow for web-based request system for adding assets to inventory, including borrowed assets. Online form should capture detailed asset information, including serial number, model, etc., lending entity, and expected return date.

Identification & Delivery 4 Provide the functionality to manually enter assets not acquired through purchasing. Must also have fields for asset ownership status and expected return date (for both borrowed and loaned equipment).

Identification & Delivery 6 & 8 Include commodity code structure and business rules to trigger workflow that propagates asset data into Asset Management System. Asset Management System then propagates the same data into the Inventory solution.

Identification & Delivery 15 Allow for system tracking of barcodes within a record in the Asset Management System. Integrate scanning technology (hand-held) to facilitate the audit process.

Identification & Delivery 15 Accommodate parent/child relationships for assets that have multiple components.

Identification & Delivery 17 Allow a manual verification that equipment is correct and works properly within the system to trigger the generation of Receipt, which sends data via the Asset Management System back to the Purchasing solution, approving payment.

Identification & Delivery 19 Automatically send notifications form the Asset Management System to departments if a PO remains open after expected delivery date.

Identification & Delivery 21 Allow for tagging appointments to be requested via online form.


REPORTING REQUIREMENTS


15

The following table lists the reporting requirements and data points that must be captured to support the recommended process.

Process Flow Title: Reporting Requirement: Data Points/Metrics:

Identification & Delivery Outstanding Fixed Asset PO Report

• Expected Delivery Date• Open/Closed Status• Department• PO including FA commodity code• Purchasing Account Number

Identification & Delivery Outstanding Sensitive Equipment Report for P-card Purchases

• Purchase Date• Department• Purchases including SE commodity code• Purchasing Account Number


PROCESS OVERVIEW

Asset Management BPR: Inventory Review

16

• Once per year every department is required to conduct an inventory of all Fixed Assets and Sensitive Equipment.

• Inventory is conducted on a cyclical basis with a certain number of departments performing the review each month. (Note: This review is not an audit. During audits, a sampling of departments or fixed assets are selected for detailed review.)

• The department uses hand-held scanners to confirm the location of assets. • Location and responsible party information updates are facilitated through the hand-held scanner or via the web-

based inventory solution, which interfaces with the AMS and pushes updates through real-time.

Asset Management Inventory Review is the sub-process in which Fixed Assets and Sensitive Equipment are inventoried to verify their location on campus.

Sensitive Equipment & Fixed Asset Monitoring: Inventory ReviewAs

set M

anag

emen

t Ad

min

istra

tion

Depa

rtm

ent

Phase

Start1: Monthly, identify

departments for review

2: Notify department of

review via email

3: Verify existence and location of all

assets

4: Asset changes?

8: Missing assets?

9: Complete Asset Loss Form in Asset

Management system

6: Update asset information in Asset

Management System

7: Part of review?

Stop

10: Assist department in locating asset

14: Notify Asset Management when

inventory is completed

15: Review verified inventory 16: Questions?

17: Provide additional

information, as requested

Stop

Yes

No

No Yes

Yes

No

11: Able to locate?

Yes

12: Work with department and

accounting to write-off according to pre-

determined policy

13: Update asset information in Asset

Management System

No

No

Yes

5: Change asset location or resp.

person


KEY PROCESS CHANGES


18


Process Flow Title:


Inventory Review 1 Departments conduct inventory on a rotating monthly schedule, with each department up for review once per year. This distributes the review effort over the year but ensures that all departments are compliant and review inventory once per year.

Inventory Review 3 Departments use hand-held scanners to document inventories. Inventory data is electronically validated against the Inventory and AMS databases. This eliminates the need for paper forms.

Inventory Review 4, 5, 6 Asset changes are made in AMS at the time of the change (step 5). However, recognizing that this does not always happen, any changes discovered during the review process are documented in AMS at that time.

Inventory Review 9-13 Missing asset process is performed per policy.Inventory Review 15 Results are stored in system, filing of hard copies is not necessary.


ALTERNATIVE PROCESS OPTIONS


19

The following table outlines the alternative process options that are not recommended for implementation.

Process Step(s): Alternative Process Justification for Non-Recommendation:

4 Asset Management staff performs the review

The level of resources required to conduct such a search by in-house staff is prohibitive as is outsourcing to a 3rd party. Implementation of hand-held scanning technology supports a more efficient inventory review to be completed by department staff.

16 Inventory is verified on hard copy documentation and retained by Asset Management

A technology system and/or scanners eliminate the need for hard copy documentation. And thereby facilitates and expedites the process.

The technology captures inventory results, and asset changes may be made directly to the system via the scanner.




20



Institution Change

Refine the Institution-level Asset Management Policies to require each department to conduct a review once a year.

Incorporate pre-defined escalation procedures and write-off criteria to address missing assets. Escalation procedures should incorporate notification and acknowledgement by leadership to incentivize proactive asset monitoring.




21


Process Flow Title:


Inventory Review 3 Allow for the use of hand-held scanners to facilitate asset verification/location process.Inventory Review 4, 6 Allow hand held scanning system to automate changes to asset information records and to feed data to AMS.

Inventory Review 5Allow Asset Management System to accommodate temporary changes for loaned equipment, specifically equipment that has been loaned to another institution (and can therefore not be inventoried) or another institution employee (which requires a temporary change in location).

Inventory Review 15 Data stored in Asset Management System is made available users based on secure sign-ons and data rights.




22



Inventory Review Fixed Assets by Department

• Owning Department• Asset ID Number• Location• Responsible Person• Asset Type

Inventory Review Sensitive Equipment by Department

• Owning Department• Asset ID Number• Location• Responsible Person• Asset Type


PROCESS OVERVIEW

Asset Management BPR: Yearly Audit

23

• Once per year every department is required to conduct an inventory of all Fixed Assets and Sensitive Equipment.

• Inventory is conducted on a cyclical basis with a certain number of departments performing the review each month. (Note: This review is not an audit. During audits, a sampling of departments or fixed assets are selected for detailed review.)

• The department uses hand-held scanners to confirm the location of assets. • Location and responsible party information updates are facilitated through the hand-held scanner or via the web-

based inventory solution, which interfaces with the AMS and pushes updates through real-time.

Asset Management Yearly Audit is the sub-process in which Fixed Assets and Sensitive Equipment are randomly audited to ensure they are located as indicated in the AMS.

Sensitive Equipment & Fixed Asset Monitoring: Yearly AuditAs

set M

anag

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inist

ratio

nDe

part

men

t

Phase

Start

1: Yearly, generate list of audit items

from asset management system

2: Verify existence and location of

items

3: All items in expected locations?

7: Missing asset?

13: Summarize results in audit

report for controllerStop

4: Notify department

6: Make updates in AMS

9: Work with department to

locate asset

10: Able to recover?

11: Work with department &

accounting to write off according to pre-

determined policy

12: Update asset information in AMS

5: Asset changes?

8: Complete Asset Loss form in AMS

No

Yes

Yes

No Yes

No

Yes

No


KEY PROCESS CHANGES


25


Process Flow Title:


Yearly Audit 1 Yearly, Asset Management Administration generates random list of FA and SE to be audited from AMS. The random audit covers 3% of all FA and SE, as well as all firearms.

Yearly Audit 2 Asset Management Administration uses hand-held scanners to document inventories. Inventory data is electronically validated against the Inventory and AMS databases. This eliminates the need for paper forms.

Yearly Audit 5Asset changes are made in AMS at the time of the change. However, recognizing that this may not always happen, the owning department is notified of any changes discovered during the audit process. The owning department updates AMS at that time. Itis the responsibility of departments to manage assets.

Yearly Audit 7-11 Missing assets are addressed via documented policy and procedures.




26



NSHE New NSHE-level Fixed Asset and Sensitive Equipment policy should require that 3% of Fixed Assets and Sensitive Equipment, and all firearms, are audited yearly by Asset Management Administration.




27


Process Flow Title:


Yearly Audit 1 Generate a randomly selected list of assets & equipment for audit.Yearly Audit 2 Allow for the use of hand-held scanners to facilitate the audit location and asset verification process. Yearly Audit 13 Data stored in Asset Management System is made available users based on secure sign-ons and data rights.




28



Yearly Audit Audit List• Randomly generated

• Owning Department• Asset ID• Location• Responsible Person• Asset Type

Yearly Audit Audit Report • Audit Findings by Asset Record


PROCESS OVERVIEW

Asset Management BPR: Surplus/Disposal

29

• As assets and equipment become obsolete, departments may elect to dispose of them. • A disposal request is initiated via the Surplus Request form in the AMS. • This form is routed to Asset Management Administration for review and to determine special handling

requirements. • Asset Management Administration determines the correct course of action to dispose of the item and sends the

item to surplus, disposes of the item, or handles otherwise according to disposal requirements. All computers, for example, are scrubbed by IT for sensitive data before being disposed of.

• As items are surplused, AMS is updated accordingly by Asset Management Administration.

Asset Management Yearly Audit is the sub-process in which Fixed Assets and Sensitive Equipment are disposed of, or surplused for sale, when they are no longer useful to the owning unit.

Sensitive Equipment & Fixed Asset Surplus/DisposalDe

part

men

tAs

set M

anag

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inist

ratio

n

Phase

Start1: Identify old/

obsolete asset for disposal

2: Initiate request for asset disposal in Asset Management

System

3: Review request for disposal

5: Computer? 7: Scrub computer

13: Update Asset Management

System

8: Repurpose or dispose?

9: Deliver to new location

10: Condition acceptable for

surplus?

12: Transfer to Surplus storage

warehouseStop

Dispose

Repurpose

Yes

11: Dispose of item via recycling center

or dump

No

4: Requires special handling?

6: Handle according to special

requirements

Yes

No

No

Yes


KEY PROCESS CHANGES

Asset Management BPR: Surplus / Disposal

31


Process Flow Title:


Surplus / Disposal 4Assets requiring special handling during the disposal process includes a variety of circumstances, such as federally owned or purchased equipment. During Asset Management Administration's review of a disposal request, any special handling requirements and the correct course of action are identified.

Surplus / Disposal 7 All computers are scrubbed before disposal or repurposing to ensure sensitive data is removed.

Surplus / Disposal 10 All outgoing assets and equipment are evaluated for surplus. Those in fair enough condition for resale are moved to surplus warehouse. Policy outlines how funds raised from surplus sales are allocated.

Surplus / Disposal 12 Item location and responsible person are updated to Surplus in AMS. Asset is updated an “closed” in AMS when it is sold.




32


Process Flow Title:


Surplus / Disposal 2 Incorporate a disposal request form in Asset Management System that can be initiated within the department and routed via workflow to Asset Management Administration.




33



Surplus / Disposal Disposal/Surplus Transaction Report

• Asset Identifying Information• Disposal Method• Salvage Value• Originating Department

Business Process Recommendations: NSHE

Feedback


ROUND 1: MARCH – APRIL 2013

NSHE Feedback: Asset Management

35

The following table outlines the NSHE feedback and commentary, as well as Huron response when applicable.Sub-

Process/Topical

Area

Institution Comments/Feedback Huron Response

General BCN Inventory may not be viewed as an important part of the job so there definitely would be a policy/enforcement issue to make these changes.

General BCN

In order to accommodate many of these suggested process changes, staffing would need to be increased considerably. Some NSHE institutions currently have large receiving/asset management teams but most do not. This increase in staff would not only included receiving personnel but also IT (if they are to monitor all computer items), Asset Management personnel (to do physical tagging and proposed auditing of all equipment) and dedicated personnel located in department to accomplish the things on the list now moved to them.

There will be staffing and training implications to many recommendations which also provide for benefits, including automation and elimination of redundancies that can result in staff efficiencies, enabling the reallocation of resources. Additional staffing decisions will be part of the Implementation Phase.

General UNLV

The process does not specifically address how to handle loaned equipment (either equipment that is checked out by a employee of UNLV or equipment that is on loan to a different institution) for documentation purposes. The AMS module should include some workflow with approvals to review, authorize, and document the loans of equipment to either employees or institutions, or for off campus use.

We have added a Technology Requirement specifically to address the AMS ability to track "Asset changes" resulting in a change in location/status of loaned equipment (outgoing).

General UNLV

Will additional resources be made to the Asset Management Department to accommodate these additional duties?



Sub-Process/Topical

Area


General DRI

The asset management process outlined is generally the current process at DRI, except Divisions/Departments currently does the tagging. It’s an excellent idea to redefine sensitive equipment and minimize the requirements contained in system policy. Sensitive equipment should be only computers and guns. We agree with the suggestion that IT should coordinate all computer set-ups, tagging and removal of sensitive information upon decommissioning. We are not sure how central delivery and tagging works with outlying locations – like DRI south, Steamboat Springs, etc.

Handling delivery to remote locations would be a challenge. As such, our recommendation includes a web-based receipting system (as part of the inventory management solution) that would allow remote locations or even on-campus department offices to log receipt of equipment.

ID & Delivery BCN

From a purchasing standpoint, having packages opened in a central receiving location will greatly increase liability issues with end users and vendors. Educating vendors to include the purchase order number on packages is virtually impossible. I have been trying to do this for years. The term “easily identifiable” is vague. Also there would be the matter of space and time in the current receiving locations. As discussed in our workshops, many of the institutions have multiple receiving methods from desktop delivery to a centralized location and even though you did address that somewhat I think we will lose some accountability in the process.

Our recommendation seeks to build upon current capabilities through the adoption of a more robust inventory tracking solution, i.e., scanning technology. Our recommendation also presumes the implementation of a procurement solution and corresponding processes that further enable the process.

ID & Delivery BCNUsing hand held scanners for the different processes also is a good idea. Of course you would have the initial cost and maintenance of such a system which would have to be considered by the system.

ID & Delivery UNLV"Purchasing Administration enters identifying Fixed Asset information into the Asset Management System (AMS)…" Purchasing is not involved in this process at UNLV.

The recommendation is to involve Purchasing in the process on the front end to capture more fixed asset data at the procurement stage.

ID & Delivery UNLVThis ability is not currently present in UNLV's current ERP system. How will this be accomplished if the process is changed before the technology is implemented?

All process changes assume new technology in the Future State. Any changes implemented prior to a having a new technology will be Implementation Decision made by NSHE.



36

The following table outlines the NSHE feedback and commentary, as well as Huron response when applicable.


Sub-Process/Topical

Area


ID & Delivery UNLV

Purchasing does not possess this expertise currently and will require either additional resources or specialized training. Will additional resources be allocated to Purchasing to accomplish this?


ID & Delivery UNLVHow will compliance be enforced? In order to implement all recommendations, employees must

be trained on policies governing asset management. Additionally, regular audits help ensure compliance.

ID & Delivery UNLV

Subject to supporting system functionality, we should also consider recommending that an asset can NOT have a payment made against it until it has been bar coded. That will assist with compliance ensuring the departments are engaged to get assets tagged so the vendor can accept payment.

This has been added as an Alternative Process Option.

ID & Delivery UNLV Example institutions may have a central computer contract facilitating the process of purchasing Sensitive Equipment via P-card.

Inventory Review UNLV

NSHE needs a more defined process to remove items missing from the Inventory and different levels of approved write-off should be instituted depending on the cost of the missing items (low cost dept. level, high cost VP level).

Policy recommendations outline the need to define write-off procedures, and associated Roles and Responsibilities, for missing inventory.



37



Sub-Process/Topical

Area


Yearly Audit UNLV

UNLV already undergoes several audits every FY. Those audits include: NSHE Internal Audits, UNLV Campus Audit, Grant Thornton (External) OMB-A133 and Financial statement audits. What value is to be gained from an additional 3% evaluation?

These are random internal Asset Management operational audits of departments and their assets, their locations, and records. These audits are intended to ensure compliance and to help institutions identify gaps or problems before an external third party (including NSHE) conducts their own audit.

Surplus / Disposal UNLV

At UNLV, the ability to transport materials either from department to department or from the department to the surplus warehouse would require additional resources or a modified business model to a service center.

Department responsibility for transporting materials is as an Alternative Process Option.

Surplus / Disposal UNLV

At UNLV the departments in conjunction with OIT are responsible for sanitizing the hard drive of surplus computers. The flow chart indicates that the process of sanitizing computers is Property Control's/Surplus responsibility. This may not be the best practice since Surplus does not have expertise in this subject. Additionally, if this responsibility were transferred to Surplus the current job may warrant a reclassification.

Our recommendation represents a "swimlane-less" Asset Management process. The AM Admin listed represented in the process documentation includes any departments or individuals involved in the administration of assets. In this case, if OIT is involved, it is covered by the AM admin swimlane but in any case, this step should be performed by an individual with the proper training/expertise.

Surplus / Disposal UNLV Surplus at UNLV currently has a disposal fee structure in effect.



38



ROUND 2: MAY 2013


39

The following table outlines the NSHE feedback and commentary, as well as Huron response when applicable.Sub-

Process/Topical

Area


Policy UNR

We recommend that sensitive equipment inventory tracking be eliminated from system policy. The effort expended to monitor and report on sensitive inventory is significant for minimal exposure.

We agree, except for when Sensitive Equipment Monitoring is required by the federal government or State of Nevada. These types of equipment, e.g. firearms, should require some level of tracking.

Technology Requirement UNR

Attempting to record assets into the fixed asset (equipment) inventory system on an automatic basis has not worked in the past due to issues of partial payments, additional freight and multiple line items on an order. It is a worthy objective if it can work in a manner that does not create recording errors.

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