DeKalb County, GA. made an internal decision to partner with HCA Asset Management, to update the County’s inventory of owned Land, Land Improvements, Buildings, Structures, Vehicles, Personal Property/Moveable Equipment, and Infrastructure items. The primary scope of the project was to develop a comprehensive record and valuation of all County owned capital asset records for the purposes of financial reporting. The County also needed an appraisal, at replacement value for insurance purposes, of all County-owned buildings, structures, improvements, as well as the collection of C.O.P.E. data for underwriting purposes.
THE OBJECTIVE
DeKalb County Department of Finance was looking for a solution to meet the following objectives:
- Creation of a countywide asset inventory, appraisal, valuation, and reconciliation, to remove a long-standing audit finding
- Development of an asset management policy and procedures
- Certification of engagement results – verified and auditable, to mitigate risk and support audit compliance
- Prospective outsourcing of the capital asset function, utilization of current technology and RFID Tags to create additional efficiencies
THE CHALLENGE
The volume of transactions, multiple systems used to track assets, and the extent of properties and assets being monitored created a need to develop an end-to-end process for the County’s management of capital assets. In addition, there was a desire by the County to develop a comprehensive asset management system, to be used by the entire organization, for prospective asset accounting initiatives. HCA, who has worked on numerous related projects, utilizes extensive expertise, current technologies, and best practice solutions.
THE PROCESS
In 2019, HCA was awarded a competitive bid award for the comprehensive County wide asset inventory, valuation and reconciliation of all asset and infrastructure costs accounted for in the County’s fixed asset system. In conjunction with asset inventories, each County site was physically visited and County-owned buildings, structures, moveable machinery, and equipment (contents) and property in the open (PITO) were inventoried, appraised, and certified. For the infrastructure data collection and valuation, HCA utilized County Engineering GIS data and matched this information to capital costs used for Annual Comprehensive Finance Reporting. Infrastructure costs were segregated and reported in general accounting classes, supporting County asset classifications and useful lives, providing the ability to remove specific infrastructure cost based on new construction activity. Policy and procedure development included the interviews of relevant staff to get a better understanding of data “bottle necks” and challenges. Procedure workflows were developed, charts, diagrams, and pictures were added and implemented into procedure documentation.
HCA, who has been providing services to the County annually since the original engagement, values our relationship with DeKalb County and is deploying RFID technology and tags on all County owned assets in December 2024 to create greater stewardship of assets and tracking efficiencies, contract through 2025.
“We have had a rewarding five-year partnership with the HCA Team. Their experienced professionals delivered exceptional service as an inventory management company specializing in capital asset management. They guided us through the entire process, leading the coordination and execution of our county’s first comprehensive capital asset inventory. Additionally, they ensured compliance with GASB and GAAP, our accounting and financial reporting standards. I would highly recommend them for both large-scale and small-scale municipal operations.”
Andria “Lisa” Williams, MBA | Controller
DeKalb County Georgia
THE RESULTS
Detailed asset records were created with consistent accounting classifications and depreciable lives. Gaps in data corrected, and infrastructure items have been recorded in accounting categories and assigned a depreciable life supporting the County’s asset classifications and useful life guidelines. Major construction components were identified, C.O.P.E. data collected, and accurate valuation conclusions provided to support underwriting and mitigate risk. The most recent financial review by external audit concluded with no finding or exception for increased audit confidence. The County’s policy and procedure document is updated, and acts as a “step by step” guideline for prospective asset accounting. Capital asset records reside in a single inventory repository system for Annual Comprehensive Financial Reporting.