Project Documents:

Internal Controls - Capital Equipment Physical Inventory Tracking & Asset Valuation (completed 1/29/2015)

Business Owner: Business Services

Project start date: 8/11/2014

Project closing date: 1/29/2015

The inventory and valuation processes for capital equipment were identified as areas for improvement within the campus Internal Controls initiative. A review of baseline processes suggest multiple hand-offs between central administrative units, auxiliary units, and schools/colleges/departments, as well as other factors that likely contribute to tracking and valuation gaps.

The focus of this project was capital equipment assets (≥ $5,000 value). The outcome goals were:

  • Error-proofing processes for asset classification and physical inventory tracking and management from asset’s arrival on campus through its retirement and disposition. Classification includes assigning appropriate depreciation schedule and funding source/ownership.
  • Review asset depreciation schedules for any gaps in policy or procedures, or lack of clarity that could contribute to asset classification errors or miscalculated asset values.
  • Develop control plans for post-improvements to ensure sustained campus compliance and information systems accuracy (both physical tracking & asset valuation).

This project targeted capital equipment assets located on the core UW-Madison campus that are a mix of UW-Madison owned and non-UW-Madison owned assets.

Status

Completed - Recommendations Approved; moving to Implementation

Scale

Enterprise

Methodology

Lean Six Sigma

Key Performance Metrics

To be established.