Asset Loss Costs Average School District $250,000 a Year

The average school district loses nearly a quarter of a million dollars annually to asset loss and damage costs, according to a recent study of district asset management. Larger districts lose even more, some topping $1.4 million in loss and damage annually.


Advertisement


All Aboard the High-Velocity 2006 FRx Express! FRx Software has the engine fired up again to travel nationwide with timely training and expert guidance! Microsoft FRx and Microsoft Forecaster users, potential users and resellers don’t miss this FREE*, half-day event!

Once you’re on board, the FRx Software experts will help you gain tremendous insight into Microsoft FRx and Microsoft Forecaster. You’ll have the opportunity to hear customer perspectives and network with prospects plus pack in useful tips, and see the features and benefits of FRx Software’s financial analytic applications. Register now!


FRx Software Home Product Information
Training & Consulting Product Demo
Webcast Customer Testimonial Video



“Asset management is a critical district business function,” Jeanne Hayes, President of the Hayes Connections, one of the study’s co-sponsors, said in a prepared statement. “The picture that emerges is one of frustration and confusion. Districts say they are having to do more asset reporting than ever before, but they’re having more and more difficulty keeping up with the task.”

The study, co-sponsored by Follett Software Company and conducted in conjunction with Quality Education Data, provides a picture of how districts manage their assets and the growing challenges they face. The survey findings illustrate the importance of the emerging category of Educational Resource Management (ERM) solutions – products and solutions that centralize the management of district resources.

Other major findings of the study include:

  • Investments in educational technology (primarily computer and audiovisual equipment) are among the assets most at risk, averaging more than $80,000 in loss annually per district.

  • Districts that used annual tracking for computers reported a 41 percent greater annual cost of loss/damage than those that used a commercial asset tracking program, and a 32 percent greater loss than those that used a spreadsheet/database program.

  • Districts typically have no single technique for managing assets, but often use multiple systems depending on the asset; in fact 66 percent of districts use two or more different kinds of tracking systems.

  • Most (59 percent) districts are still using manual systems or simple spreadsheets or databases (51 percent) to track at least some of their assets, although larger districts are increasingly adopting dedicated commercial asset tracking programs or developing their own.

  • Districts are struggling with a number of related problems, primarily involved with finding the time, money, personnel and tools to keep track of assets. “The departments in charge of those assets are not aware that we need to keep the lists up to date with deletions and additions,” one district administrator complained. “In my opinion the biggest drawback is the time management. We do not have enough time and enough people to manage the assets,” another respondent said.

The data helps explain the emergence of a new class of technology solutions, call Educational Resource Management (ERM), according to Follett Software Company president Tom Schenck. “District business managers clearly recognize the need to get a better handle on their assets,” Schenck said in a prepared statement. “This is driving demand for ERM solutions which provide a single, coherent, district-wide framework for distributing and tracking assets.

“Centralizing the management of resources – library materials and media, textbooks, fixed and portable assets – has proven to be the key to helping districts free up time and money for instruction. A centralized Educational Resource Management solution reduces administrative costs and redirects those savings toward instruction,” Schenck said.

The study surveyed 479 district business managers, administrators and technology chiefs in all 48 contiguous states. Respondents were asked about the problems they faced in managing assets, and about the systems they used to keep track of everything from laptops to band uniforms. They were also asked to estimate the cost of loss, damage and redundant purchases of these assets.

You may like these other stories...

Regulators struggle with conflicts in credit ratings and auditsThe Public Company Accounting Oversight Board (PCAOB), which was created by the Sarbanes-Oxley Act in 2002, released its third annual report on audits of...
Regulatory compliance, risk management and cost-cutting are the big heartburn issues for finance execs in the C-suite. Yet financial planning and analysis—a key antacid—is insufficient.That's just one of the...
A review of Financial Accounting Standards Board (FASB) guidance on share-based payment transactions found that the 2004 standard achieves its purpose and provides useful information to investors and other users of financial...

Already a member? log in here.

Upcoming CPE Webinars

Aug 26
This webcast will include discussions of recently issued, commonly-applicable Accounting Standards Updates for non-public, non-governmental entities.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.