Archive for Opinion

Efficiencies for the Public Sector through IT

In a recent article published on Accountancy Age online titled ‘Public Sector FDs face formidable workload’ it was highlighted that spending cuts will mean jobs losses in the public sector and increased workloads for finance staff.

It can certainly be said that spending cuts will mean jobs losses in the public sector and increased workloads for finance staff, however public sector bosses must begin to consider ways in which operations can be streamlined and efficiencies optimised.

Applied intelligently, IT presents significant opportunities in helping public sector bodies prepare for lean times ahead. For example, implementing a robust asset management software solution can maximise efficiencies within the finance department through improved reporting functionality and increased automation in complex calculations such as asset value depreciation.

Promoting an accurate and centralised asset register can also improve inter-departmental communication and transparency, maximising business value, streamlining processes and allowing organisations across the public sector to achieve their full business potential through the prudent management of resources.

As well as enabling an organisation tighter control over operational costs and maintenance programmes, an up to date asset register also provides an accurate value of the asset base instantly. As public sector bodies seek to understand their ongoing health, relying on this information will become increasingly important.

There is little doubt that budget cuts and job losses poses a major challenge for the public sector. But, best practice, improved understanding and control over the asset register will enable organisations to make far more informed decisions about capital expenditure and replacement budgeting.

Concerned about the integrity of your fixed asset data when using spreadsheets?

Total control over your fixed asset management data simply cannot be achieved through the use of a spreadsheet. Whether a user input error or unintentional miscalculation, inaccuracies within your fixed asset register are inevitable. With that said, how can you be 100% confident in the integrity of this vital data? A specialist system will have strict security features in place to effortlessly address the issue.

Furthermore, entering and maintaining asset data becomes an endless task when working within the parameters of a spreadsheet. A specialist system will automate the entire fixed asset management process. From data import capabilities to automated reports and forecasts, a significant amount of valuable time can be shaved off the entire process.

RECOMMENDATIONS AND ADDED BENEFITS
While the spreadsheet is an integral part of business operations, it cannot perform all the tasks businesses face. And while the importance of tracking and monitoring fixed assets is often overlooked, the return on investment that can be attained by maintaining a current inventory and properly accounting for fixed assets in a “best of breed” solution can be substantial. By implementing a dedicated asset inventory and asset accounting solution, companies can achieve many benefits.

As a part of a broader fiscal strategy, the move to more accurate and effective asset management can be invigorating to a business, providing essential short-term cash flow benefits as well as positive longer term advantages with regards to workflow processes, security and disaster management preparation.

One of the most tangible ROI realisations for businesses that implement such a system can be a dramatic lowering of insurance premiums and more successful insurance claims. These result from having a more accurate knowledge of assets that may no longer be on the books.

Automated fixed asset management systems are integral to responsible financial management, providing more accurate financial statements, streamlining workflow processes and helping businesses take full advantage of available tax benefits.

The public sector is facing up to IFRS and seizing the opportunity to utilise the asset register to maximise business benefits.

In a recent article published on AccountingWeb titled ‘Consultation launched for new IFRS council accounting code’, it was confirmed that CIPFA/LASAAC, the board responsible for the introduction of international financial reporting standards (IFRS) in local authorities has begun a consultation on the IFRS-based code of practice on local authority accounting.

It’s true that the new IFRS reporting complexity combined with an extraordinary increase in asset numbers does present a series of challenges to financial departments. But the new standards will in time offer tangible business benefits and increased cost efficiencies which will make any disruption caused during this transitionary period, as organisations completely readdress their asset register requirements, seem like a very necessary catalyst leading ultimately to a far more productive time.

A centralised, automated asset register is key if Public Sector organisations are to reap the maximum benefits. This vital tool will not only streamline year end audits and reduce the reliance on specific, skilled personnel but will also provide the detailed insight into corporate assets required to enhance capital expenditure decision making and improve Local Authorities’ Comprehensive Performance Assessment (CPA) scores.

There is little doubt that the shift to IFRS poses a major challenge for the public sector. But, best practice, improved understanding and control over the asset register will enable organisations to make far more informed decisions about capital expenditure and replacement budgeting – decisions that will have a measurable impact on CPA scores and audit reports.

Once established, this new set of standards will offer an astonishing level of visibility throughout the fixed asset register, maximising business value, streamlining processes and allowing organisations across the public sector to achieve their full business potential through the prudent management of resources.

Cost savings still the priority in green IT, says Forrester

Financial drivers and efficiency gains key factors but IT directors must be careful not to go too far, says analyst Written by Tom Young Computing, 05 Oct 2009

Assessment of environmental practices and reporting is certainly on the increase for business and generic statements about green strategies – from procurement to recycling, carbon footprint to flexible working – will not suffice in the long term: organisations will have to prove their commitment through information transparency and auditable policies.

At the heart of such transparency will be consistent, detailed information about the life cycle of every asset - from country of origin through maintenance schedules to final disposal.

Existing green policies such as the WEEE directive and measuring carbon footprints assume a level of asset management far beyond that achieved by the majority of UK business. How many UK businesses can accurately identify the location of their WEEE equipment within the organisation and confirm when it was purchased and from whom? By linking the asset register to a document management system organisations can create the required audit trail, gaining valuable insight into their own assets and adapting to the green economy.

UK firms unprepared for disaster, IDC warns. Does your business have a DR plan?

BT-commissioned research reveals the UK’s largest firms are still lacking when it comes to business continuity provision (article written by Sara Yirrell, CRN, 4th March 08)

Growing risk awareness and an increasingly dangerous business environment may have prompted more companies to invest in disaster recovery (DR) as part of the business continuity programme – but how safe is that investment?

Just what, indeed, is being recovered? Few organisations have any real insight into the true extent of their IT assets. Not only does this challenge the validity of the DR solution but it also raises huge questions in the event of an insurance claim.

For most companies, one of the major issues is the complete lack of co-ordination between the asset register recorded within finance and the inventory lists used within the IT department to determine system maintenance and support.

Any inconsistency between the asset register held within finance and other inventory records in the business will raise significant doubt for insurance companies, delaying payment at best. At worst an organisation could lose any chance of an insurance pay-out, even face charges of claiming for non existent items.

However, there are simple processes that can be followed to ensure greater information consistency. A central repository that records the serial number and asset location, as well as the value of each item, will meet the needs of all departments from finance to IT.

Critically, this ensures that reliable, accurate information is available for both insurance and DR planning, reducing business risk whilst also giving companies more confidence in their business continuity investments.

Small businesses ignorant on WEEE – is yours one of them?

A year after the laws came into force, most businesses still don’t know they exist (article by Tom Young, Computing, 12 Feb 08)

The Waste Electrical and Electronic Equipment (WEEE) Directive may be touted as a cost for suppliers, but unless organisations get their asset registers in order, it will also create a significant cost for UK business.

Such policies as WEEE assume a level of asset management far beyond that achieved by the majority of UK business. Unless supplying a like for like replacement, suppliers will only remove and dispose of equipment they have delivered initially. How many UK businesses can accurately identify the location of their WEEE equipment within the organisation and confirm when it was purchased and from whom? Without such information, just which company do they expect to handle the free disposal?

Organisations need to implement sound asset disposal procedures. Linking the asset register to a document management system will ensure a scanned WEEE certificate is linked to a disposed asset, providing the required audit trail. Each asset can be recorded alongside the supplier’s name and email address, enabling swift supplier contact when disposal is due.

UK business is already complaining about excessive red tape, perhaps why the WEEE Directive introduction in July 2007 was so downplayed. But a belief that the onus of WEEE is firmly on equipment suppliers could be an expensive mistake.