Did you know that equipment moves at the speed of sound? Making it extremely difficult, tedious, and overwhelming to track.

Why is Tracking Equipment Difficult:

 

  • Lack of resources: There’s a lack of resources provided to asset and property departments, requiring more manpower for comprehensive inventory management. 
  • Lack of compliance: Departments are unwilling to follow Asset Management policy procedures regarding disposals, tagging, serial number changes, etc. 
  • Lack of accountability: Most departments lack the accountability to put any importance on equipment inventories, making it a low priority. 
  • Lack of updates: Most location, disposal, and transfer changes are not being submitted from the department to the Property Management system for updates. 
  • Lack of offices: The lack of a central distribution office for assets creates a disconnect between the department equipment list and property equipment list.
  • Lack of automation: Most departments have antiquated capital asset systems with limited access to automation for importing and exporting information for reporting.

Even though tracking equipment is a difficult and expensive task, it is a very important process.

Why is Tracking Equipment Important: 

  • It ensures that your organization is in compliance with Uniform Guidance requirements
  • It gives your organization the ability to provide asset life study of equipment by classification 
  • It provides a “snapshot” in time of equipment location 
  • It provides an increased use of equipment because you know the location of each item 
  • It provides assistance in space and fun function with review and consistency 
  • It removes any “ghost” items 

In conclusion, tracking your equipment can provide a positive impact on your financial overhead rate calculations and recoveries. A good way to calculate a “what if” impact scenario is to allocate equipment depreciation to a room and then multiply the impact by recovery per point. Once you have done that, we advise you to have a candid conversation on the benefits of precise facility allocations. 

If you have any questions about tracking equipment, our team would be happy to help. You can message Greg Sheahan here.