Property & Fixed Asset Management Services: Property & Fixed Asset Management Services Adding Value to Property Management


American Appraisal Associates (“AAA”) Quality, Integrity & Longevity: American Appraisal Associates (“AAA”) Quality, Integrity & Longevity Established in 1896, 60 offices worldwide Independent, well capitalized and poised for expansion World class quality assurance program and adherence to ethical standards Full service, multi-industry, valuation consulting firm We are an employee owned valuation consulting firm


American Appraisal: American Appraisal Versatility allows us to bring our expertise to all types of business around the world. Our reputation is one of quality, independence and service - we can be relied upon.


American Appraisal: Annually, we issue reports on assets worth more than $200 billion. Our client list includes the Global Fortune 1000 companies. Our valuation specialists come from a variety of backgrounds. They have one quality in common: they are the brightest and the best. American Appraisal


Slide5: National Property Management Association Appraisal Institute (MAI) American Society of Appraisers (ASA) American Association of Cost Engineers Certified Public Accounts Institute for Professionals in Taxation (IPT, CMI) International Association of Assessing Officers (IAAO) National Association of Accountants National Council of Real Estate Investment Fiduciaries (NCREIF) National Society of Professional Engineers Professional Affiliations Staff 1000 Employees Worldwide


Slide6: Worldwide Offices of American Appraisal AA Croatia


Asset and Valuation Experts - American Appraisal’s Most Significant Asset: Asset and Valuation Experts - American Appraisal’s Most Significant Asset “It’s the caliber of your staff and the tested principles they employ on each assignment that make your company so valuable.” - Client Satisfaction Survey Respondent


PFAMS: PFAMS Diagnostic Process and Compliance Reviews Procedures Inventory and Records Creation System Implementation Support FJMIP Compliance Subcontractor audits Training Outsourcing Federal University State and Local Gov’t Government Contractors Healthcare


Why?: Why? Financial clean audit opinions System approvals Accounting standards / GASB / FASAB Sarbanes-Oxley Theft reduction Reduce insurance And and and and and


The Property Management Diagnostic is the Foundation: The Property Management Diagnostic is the Foundation System Approvals Insurance Values, Taxes Financial Statements Stewardship Records EFFECTIVE, EFFICIENT ASSET MANAGEMENT Current, Accurate, Timely Data……Perpetuated Procedures Valuation Reconciliation Records Diagnostic Review


An Efficient Asset Management Business System Can :: An Efficient Asset Management Business System Can : Reduce Audit Costs Avoid Qualified Reports Avoid Unsatisfactory Systems Increase Asset Reutilization Increase Asset Utilization Support Effective Capital Planning Decrease Asset Acquisition Reduce Record Creation Costs Maintain Accurate Insurable Values Maintain Adequate Insurance Claim Documentation Increase Maintenance Schedule Efficiencies Increase Receiving Efficiencies Reduce Warehouse Space and Costs Reduce Database Administration Support Manufacturing Schedules Reduce Fraud Potential Increase Return on Investments Reduce System Implementation Costs Identify Surplus and Saleable Assets Reduce Physical Inventory Cost Reduce Taxes Property, Federal, State


Benefits of Maintaining an Accurate Fixed Asset Record : Benefits of Maintaining an Accurate Fixed Asset Record To Provide Accurate Financial Statements To Avoid Qualified Auditors Report Proper Stewardship of Fixed Asset Property Maintenance Management Accurate Insurance Values for Risk Management Basis For Capital Management To Provide Accurate Tax Data for Tax Returns Identification of Saleable Assets Identification of Surplus Assets ROI - ROCE - Bench Marking Public Scrutiny


From the Foundation--  The Diagnostic To Completion An Efficient Property and / or Asset Management System: From the Foundation-- The Diagnostic To Completion An Efficient Property and / or Asset Management System Identifying Specific Process Improvement Opportunities Pilot and Inventories Implement Process Changes Long Term Sustainability vs. Point-in-Time


Property Life Cycle: Cradle to Grave: Property Life Cycle: Cradle to Grave Organizations and Responsibilities Requirements and Approvals Purchasing Receiving, Handling, Distribution Records Inventory Systems Utilization Consumption Movement Maintenance Warehousing and Storage Packaging, Shipping, Transportation Excess, Disposition, Retirement


Property Management Business System:Ensure all Facets and Flows are In Sync: Property Management Business System: Ensure all Facets and Flows are In Sync Three Facets Three Flows Financial Flow Physical Flow Record Flow People Procedures Process Tools Systems Forms Reports


Property and/ or Asset Management Flow: Property and/ or Asset Management Flow Budgets Identify Requirements Approvals Description Estimated Cost Account Coding Purchase Orders Receiving Tagging Fixed Asset System Record Property System Determine Fixed Asset Accounting Policies Bills of Lading Pack Slip General Ledger Accounts Payable Invoices Establish Value Allocate Costs Complete Record Reconciled ? Acquire Contracts Determine Government Property Procedures Contract Property Database


Property and / or Asset Management Flow: Property and / or Asset Management Flow Control and Transaction Maintenance Security Inventory Warehousing Storage Use Reuse Fixed Asset System Property System General Ledger Lost Damaged Transferred Excess Disposed Update Record Update Record Update Record Reconciled ? Transfers Relocations Dispose and Retire Contract Property Database


Diagnostic Methodology: Diagnostic Methodology Key Understandings Management Support Audit Reviews Procedure Analysis Process and Accounting Interviews Work Flow Duplication Gaps


Diagnostic Methodology: Data Reviews Data Flow, Inputs / Outputs Required Data Elements System Interfaces Functional Process Reviews Physical Walkthroughs Analysis Data Collection On Site Reviews Analysis Recommendations Diagnostic Methodology


Potential Issues and Resolutions: Potential Issues and Resolutions CIP Not Translated to Finances Audits Qualified/ Unsatisfactory New Regulations No Capital Policy No Expenses Vs Capital Distinction Too Few Resources Property Theft Lack Accounting on Disposed Property


Results - Recommendations for Process Improvements--Examples: Results - Recommendations for Process Improvements--Examples Record Data Collection Standardizing Asset Receiving Tagging Protocol Barcode / Scanner / Auto Id Technologies Controlling and Authorizing Moves Identifying Excess and Saleable Assets Segregation of Duties/ Theft Prevention


Results - Recommendations for Accounting Procedures and Records --Examples: Results - Recommendations for Accounting Procedures and Records --Examples Classifying and Coding Prior to Purchase Capital vs Expense Guidelines Capturing all Required Data Elements in the OFFICIAL Record Identify Final Asset Accounts at the Beginning of Construction Identifying “Controlled” Assets Capital Threshold Policy / Consistent Use Capturing Capital Leases Valuing Building Improvements Identification Fabricated Equipment


Implementations: Implementations Procedures Responsibilities and Compliance Process Guidelines and Consistency Asset Accounting Manual Process Development Control Inventory Pilot Identify Specific and Detailed Improvements to Record Inventory Reconciliation and Valuation Training Facilitation of Mentor Groups Self Audits and Metrics Outsourcing


Implementation: Implementation Tailor property management services to client’s needs Establish partnership relationship Property Management Services staff has access to experts Inventory Valuation Maximizing return on assets


Implementation: Implementation Organizational Structure Using Diagnostic Study as basis identify required organization to implement necessary processes Evaluate size, complexity, mission of organization Define staff titles, roles, responsibilities, to conduct primary & supporting property lifecycle responsibilities Organization provides “people” aspect of property management Organization is tied to policies and procedures and training is developed to ensure that they are knowledgeable


Implementation : Implementation Develop procedures Responsibilities and Compliance applicable to client Provide procedures for lifecycle management Assign specific responsibilities to the developed organization provided under first task Tailor to the specific client’s business or service mission Provides “procedures” aspect of property management Include both mandatory procedures and “value-added” features


Implementation : Implementation Conduct Inventory To establish new system, conduct either sample or wall-to-wall inventory of assets Capture required data elements to meet both compliance and management information requirements Assist client in migrating existing and/or inventory data to new system


Implementation : Implementation Conduct Management Information System Review Determine data elements required to support PM Associate data requirements with processes & procedures Evaluate MIS applications & recommend potential solutions Map existing and required data to existing or new system Provides “tools” aspect of Property Management


Verification Study: Verification Study Planning Loading Client Record to Telxon Scanners Inventory/Verification Point of Inventory Matching Inventory of New Records Office Reconciliation -Phase 1 Computer Matching - Asset Number/Serial Number Visual Matching Field Reconciliation - Phase 1 Meet With Department Primes Office Reconciliation - Phase 2 Field Reconciliation - Phase 2 Meet With Managers Close-out Meeting Creation of Transactions or Flat ASCII File Final Report


Retrospective Appraisal: Retrospective Appraisal Planning Inventory Pricing Establish Costing Controls Growth Schedules Costing Direct Costing Standard Costing Normal Costing


Retrospective Appraisal - Continued: Retrospective Appraisal - Continued Reconciliation of Cost Unrecorded Additions Unrecorded Retirement Deductions Unrecorded Transfers Misclassification of Assets Establishment of Accounting Controls Lives Methods of Depreciation First Year Depreciation Conventions Generation (Day-1-Calc) of Depreciation Reserves


Retrospective Appraisal - Continued: Retrospective Appraisal - Continued Reconciliation of Accumulated Reserves Reserve Schedule Preparation of Fixed Asset File/Files Preparation of Narrative Report Reconciliation Schedules


Valuation Services: Valuation Services Valuation of Assets Costing Development of Cost of Replacement New Development of Fair Market Value Selection of Appropriate Value Purchase Donation Construction


Qualifications and Staff: Qualifications and Staff Marsha Campbell Fred Seth Staff Qualified Subcontractors Bill Jensen Craig Hooton ElRay Robinson Certifications Education Experience Expertise


Client Lists: Client Lists Universities Clemson** U of TX*, ** Rush Presbyterian* U of WA* Finch Public Sector** City of Atlanta LA Community College District Healthcare Entities* WHHS Chicago Children’s Hospital


Client Lists: Client Lists Government Contractors/ Commercial Rolls-Royce EG&G MCC Anteon CACI Parsons Boeing Federal Agencies IRS INS Dept. of Education APHIS USDA NTSB Commerce


Adding Value to Property Management: Contact: Marsha Campbell 435-245-2171 Adding Value to Property Management Pricing and Schedules