acp002 payment without a po - shelby county schools analysis p… · the po is found, verify the...

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ACP002 Payment without a PO

Business Process Description The Payment without a PO is the process by which SCSD pays vendors and SCSD employees for amounts under $500. For vendors, the requester of the goods/services completes a paper Payment Request form and attaches the invoice and remits it to SCSD AP for processing. Employees who are seeking reimbursement for subscriptions, training, etc. complete a paper Reimbursement Request form with proper attachments and remits them to AP for processing. Purchases from vendors for more than $500 cannot be paid with a Payment Request and must go through the proper purchasing channels.

Business Process Steps Step # Step Description Executed By 1. Open, stamp and sort incoming mail/invoices twice a day. AP Staff 2. Review invoices for correct information. Payment Requests will not

have PO numbers. If the Payment Request has an attached invoice, AP will enter the invoice number into the Invoice screen to ensure the vendor does not double bill for the goods or services.

AP Staff

3. Review taxes and discounts. If item is to be resold to students, staff or faculty, SCSD will pay the taxes. Otherwise taxes are deducted from the invoice. If the vendor profile contains an agreed discount, APECS should pay the invoice in order to get the discount. There are times when APECS doesn’t calculate the discount so AP staff need to manually calculate and enter the discount amount on the voucher.

AP Staff

4. Enter all the necessary information from the Payment Request or Reimbursement request: invoice number and amount off the attached invoice, description, date and budgetary coding. Save the invoice information and APECS will generate the voucher id.

AP Staff

5. Once the voucher is created and saved, scan all relevant invoice information and attach the file to the invoice.

AP Staff

Business Process Details As-Is Inputs: Vendor invoice

As-Is Outputs: System generated Voucher

As-Is Systems: APECS

As-Is Controls: None

As-Is Interfaces: None

As-Is Reports: None

As-Is Statutes: None

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ACP002 Vendor Payment without PO

Executive Summary The vendor payment without a PO process was discussed with Shirley Page and Sheila Gatson. The process focuses on those invoices that are under $500.00 and therefore do not need a PO to be paid (an exception being copier invoices which may be more than $500.00). Vendors are paid via a Payment Request form (manual paper form submitted to AP with a copy of the invoice) while employees may use a Reimbursement Request form to be reimbursed for such items as training, subscriptions, etc. Process is a standard vendor payment process when an institution requires a three-way match prior to paying an invoice. No three-way match occurs for these invoices.

Process Issues Several items were identified that slow the process and introduce potential for mistakes.

1. It can be difficult and time-consuming to get clarification from the requester when there are issues with the Payment Request and/or Reimbursement Request forms.

2. The request forms are paper, which leads to mistakes and missing required data. Business Process Recommendations

• The Reimbursement Request for employee out-of-pocket expenses should be part of the payroll process, not AP. As part of AP, the reimbursement process required employees to be treated as vendors within the system and lack of controls can lead to inappropriate reimbursements. As a part of payroll, SCSD can ensure the proper taxes are withheld (if necessary) and because the reimbursement is within the payee’s check, SCSD isn’t paying for unnecessary AP batch checks.

• The system should allow for online entry of Payment Request forms that act the same as an invoice. This would eliminate paper request forms and dramatically reduce manual errors and AP Staff follow-up with requestors because the system would require the necessary information before the “invoice” could be saved by the requestor.

ACP005 Batch Check Printing

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Business Process Description The Batch printing process is the process by which SCSD produces a file that it sends to Regents bank for the printing of AP warrants. SCSD does not print its own check for AP payments. For emergency purposes, SCSD does have check stock and a printer with micr ink. Regents prints the checks and mails them to the vendors. Vendors registered for ACH can receive electronic fund transfers, but SCSD does not mandate this for any specific vendors or for any payment amounts over a certain limit. Vendors also receive payments to their v-cards. SCSD can request that certain checks be pulled and sent to SCSD for additional approvals.

Business Process Steps Step # Step Description Executed By 1. Run the Invoice Matching Report. This process is run on Monday,

Wednesday and Friday. The process does all 3-way matching and generates a report for any unmatched invoices.

AP Staff

2. Run the AP Aging report to identify any invoices that may be beyond acceptable aging limits and to identify the control total for the number/amount of vouchers that should be picked up for payment in the batch.

AP Staff

3. Run the Print Accounts Payable Checks to produce the check batch. This process creates the check numbers.

AP Staff

4. Upload the resulting check file to Regions for printing. Batches are sent to Regions three times per week.

AP Staff

Business Process Details As-Is Inputs: None

As-Is Outputs: Check file



As-Is Interfaces: FTP to Regions

As-Is Reports: None


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Executive Summary The batch check printing process was evaluated with Shirley Page and Sheila Gatson. SCSD does not process its own AP checks. Instead, SCSD processes its vouchers and generates a warrants file that it uploads electronically to Regions bank and the bank prints and mails all checks.

Process Issues

1. The process is expensive and reduces SCSD’s ability to control their check runs, pull checks post printing and handle returned checks.

Business Process Recommendations

• As long as SCSD is mandated to engage Regions bank as their check printer, little can be changed about the current batch check process. Care will need to be taken that any new AP system can support the generation of a warrants file that can be printed by a 3rd-party resource.

ACP008 Scanning Invoices

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Business Process Description The Scanning Invoices process is the process used by SCSD AP Staff to scan invoices and other pertinent information and attach the scanned documents to the associated invoice within APECS. The information is used to address vendor questions about payments, for external audits and to enable departments to see what invoices were paid for what items.

Business Process Steps Step # Step Description Executed By 1. Open eScan on the desktop and place the document to be scanned

into the scanner. AP Staff

2. Click the scan button in the open eScan window. The scanner will can the document and make it available to be named. Save the document by naming it the same thing as the voucher number and saving it in a folder with the date the invoice was entered (typically the same day).

AP Staff

3. Open APECS, go to the AP processing area and open up the voucher to which the scanned document(s) need to be attached.

AP Staff

4. Press the green paperclip button on the voucher, browse to find the correct desktop folder and then select the scanned image(s) with the same voucher number. Upload the files to APECS where they will be associated with the voucher.

AP Staff

Business Process Details As-Is Inputs: None

As-Is Outputs: Check file



As-Is Interfaces: FTP to Regions

As-Is Reports: None


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Executive Summary Shirley Page and Sheila Gatson discussed this topic as well as provided step-by-step SOP of the process. SCSD scans all invoice materials via a desktop scanning tool and saves the files with the invoice information within APECS. The files can be used by external auditors during an AP audit and by departments to check what invoices have been paid.

Process Issues

1. Manually scanning, saving and attaching invoice documentation can be time consuming and potentially error prone as the AP Staff manually associates the scanned documents to the invoices in the system.


• SCSD may find it beneficial to evaluate an Electronic Document Management System (EDMS) with which they could scan and save large numbers of invoices quickly. SCSD could then decide to either continue to associate these scanned objects with system invoices or simply use the EDMS system and search for invoices when they are needed. Either way, such a system would eliminate the manual, one-by-one scanning system currently employed today.

ACP009 Copier Invoices

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Business Process Description The Copier Invoice process is how SCSD processes invoices submitted by copy-machine vendors. When an invoice is received, AP uses the information to find the matching purchase order and generates the Vouchers within APECS from the purchase order and invoice. However, there are schools that do not setup purchase orders for their copier leases, maintenance and copies. In these cases, AP treats the invoice as a Payment Request and keys in the same info as they would for that non-encumbrance payment. If there was a PO, the receiver of the goods must enter the receiver into APECS. No receiver is necessary for the direct pay. APECS will perform a 3-way match between the receipt, PO and Invoice. If all match correctly, APECS will assign a voucher number to the invoice data. For the direct pay invoices, the match process is skipped and the voucher is assigned.

Business Process Steps Step # Step Description Executed By 1. Open, stamp and sort incoming mail/invoices twice a day. AP Staff 2. Review invoices for correct information – PO number and any

special signatures. AP Staff

3. Review taxes and discounts. If the vendor profile contains an agreed discount, APECS should pay the invoice in order to get the discount. There are times when APECS doesn’t calculate the discount so AP staff need to manually calculate and enter the discount amount on the voucher.

AP Staff

4. If a PO exists on the copier invoiced, enter the PO information into the Invoice entry screen along with the invoice number and date. If the PO is found, verify the vendor information pulled from the PO into the invoice screen matches that on the vendor’s invoice. Match the correct PO line information with the invoice amount and save the invoice. The system will create the voucher number.

AP Staff

5. If there is no PO on the invoice, AP will search APECS for a matching PO by location, item and cost that may match the vendor’s invoice. If found, the PO will be marked on the invoice and entry will continue as listed in step #4.

AP Staff

6. If there is no PO on the invoice and an existing PO cannot be located within APECS, AP Staff treat the invoice as a Payment Request and generate a voucher for the invoice without a PO and without the 3-way match.

AP Staff

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Business Process Details As-Is Inputs: Vendor invoice

As-Is Outputs: System generated Voucher




As-Is Reports: None


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Executive Summary The Copier Invoices process was discussed with Shirley Page and Sheila Gatson. This process is specific to invoices sent to SCSD for all the different copiers at all the different district sites. In the past this has been a single invoice for each different copier in each different location, resulting in a very large number of invoices.

Process Issues

1. Having to key in all the copier invoices is very time consuming. Each a large file of invoices isn’t helpful because APECS cannot upload that file as invoices.


• As stated by Sheila and Shirley, if SCSD could deal with just one vendor for all copiers, that would greatly reduce the complexity.

• The vendor(s) need to be able to provide their invoices electronically to SCSD. Preferably a single invoice header with a total amount with an invoice line for each copier. If the system can handle a single invoice for multiple POs, this approach would allow for a single invoice with lines for each copier tied to a specific PO. If a single invoice cannot be matched against more than one PO, then the file from the copier would include a separate invoice for each copier, but electronically loading it will still save a great deal of processing time.

AST001 Asset Disposal Requests

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AST001 Asset Disposal Requests Business Process Description Once an asset has been deemed of no use to a school or department, it must be disposed of properly to ensure compliance with laws, District policy and procedure as well as to ensure proper financial accounting. This process is used to remove excess, unused, unwanted, or non-functional fixed assets from school and administrative sites for disposal or repurposing. Disposal may take one of several different paths including recycling, redistribution to another site, sale at auction, or as a last resort, becoming trash. It is the role of the Office of Asset Management (OAM) to manage this process while involving other departments such as Information Technology to make the proper determination for disposal. It is also the role of OAM to keep the inventory management system updated to properly document the assets owned by the district.

Business Process Steps Step # Step Description Executed By 1. Site submits disposal request to the Office of Asset Management. School/site admin 2. Receives request and date stamps. OAM 3. Makes copies and routes them to Information Technology and

Facilities/Inventory Control. OAM

4. IT assesses equipment and approves request. IT 5. Receives request for disposal and verifies it. Facilities/Inventory

Control 6. Create a SchoolDude work order for asset pickup.

Facilities/Inventory Control

7. Picks up disposal from site and transfers to central storage.


8. Deliver asset to central storage.


9. Forward documentation to OAM for processing.


10. Updates inventory (for school or site) to reflect change in location of equipment.

OAM

11. Recommendation is sent to Superintendent to declare goods as surplus

OAM

12. OAM creates a “FA Mass Update” spreadsheet for upload into APECS.

OAM

13. OAM decides method of disposal. (Computer recycler, auction). OAM 14. OAM creates database of items to be sold at public auction. OAM 15. OAM files documentation for future reference. OAM 16. Barcodes are assigned to items without SCS barcode, verify funding

source, pull titles for vehicles, create bill of sale. OAM

17. Verify items on GL. Finance 18. Equipment is removed by recycler or sold at auction. Facilities/Inventory

control 19. Create a “FA Deletion” Excel file to upload into APECS. OAM 20. Contracted auctioneer assigns lot numbers and items are sold to the

general public. Auctioneer

21. Upload File to remove items from inventory database. OAM 22. Funds are collected and reconciled to report of surplus item.

OAM

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Business Process Details As-Is Inputs: Disposal Request

As-Is Outputs: SchoolDude Work Order

As-Is Systems: AMSI, APECS, SchoolDude, Excel

As-Is Controls: Reviews by IT and OAM (all process driven, not automated)


As-Is Reports: Disposal report from APECs


Business Process Map

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AST001 Asset Disposal Requests

Executive Summary Asset disposal requests can be submitted in at least two ways via AMSI and via paper. All requests originating on paper will be copied and distributed to other departments such as Information Technology and Facilities/Inventory Control. The entire process is heavily paper-centric with copies of documents that must be filed and/or reports that must be printed and filed. There are also a number of systems involved further complicating things: AMSI for the schools, APECS for accounting, SchoolDude for creating work orders and Microsoft Excel worksheets to interface between APECS and AMSI.

Process Issues

1. Too much time is required to manage all of the paper associated with the process. All of the paper must not only be routed and processed, it must also be filed and retained which takes more time and requires both filing cabinets and storage space.

2. There are multiple systems involved in the process, each of which requires data to be input, most of which is highly redundant. The process breaks down when inconsistent data is input or the data entry personnel fail to enter data in all systems.


• Seek to eliminate any record keeping done outside of the system. Replace the creation of spreadsheets with entries in the asset management system that accomplish the same result.

• Augment those entries with reporting where necessary to eliminate redundant data entry and to streamline processing.

• Eliminate all paper and rely on business automation systems instead.

AST002 Asset Reconciliation

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Business Process Description During the course of doing business, it is not uncommon for the physical asset inventory to get out of sync with the electronic asset inventory maintained in APECS. In a perfect world this misalignment wouldn’t happen, however, due to undocumented movement of assets by employees, shrinkage (unknown theft), and many additional reasons, the need to true-up the inventory at least annually is a requirement. To reconcile the physical inventory to the electronic inventory, the first requirement is to complete a thorough physical inventory. This is completed by identifying every asset as a location and capturing the asset tag information. If an asset exists but doesn’t have an asset tag, one must be affixed to the asset to track it and to identify it for future inventories. Once the physical inventory is collected it is compared to the electronic inventory. One of three things will occur with each asset. New assets will be found and will need to be added to the electronic inventory. Existing assets will match asset records on file. For existing assets, it may be necessary to update the site data in the event the asset has been relocated. And finally, assets will be missing. Research will be required to determine if the assets are indeed missing and if so, the proper method of accounting for the loss and removing the item from inventory.

Business Process Steps Step # Step Description Executed By

1. Schools conduct wall-to-wall physical inventory. School/Admin site

personnel 2. Schools submits completed inventory via AMSI and inter-office mail. School/Admin site

personnel 3. OAM reviews and approves completed physical inventory. OAM 4. OAM researches and investigates reported discrepancies. OAM 5. OAM updates inventory database to reflect changes to inventory. OAM

Business Process Details As-Is Inputs: Physical Inventory detail

As-Is Outputs: Updated inventory records in APECS

As-Is Systems: APECS, AMSI

As-Is Controls: Principal review, OAM review


As-Is Reports: None


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Executive Summary From a system point of view, asset reconciliation should be a simple process. First you identify the items in a building or at a site, compare the physical count to the electronic data and determine the differences. The assumptions being that all items in the building are already in the electronic list, that they have been properly tagged when originally captured and that items don’t move from location to location, and that little changes. Unfortunately, district assets are seldom static, assets have been tagged multiple times in many cases and the electronic inventory is often incomplete. With the added confusion of legacy systems, legacy tagging, thousands of outstanding approvals needed and lost data the question of data integrity needs to be addressed.

Process Issues

1. Asset reconciliation is closely tied to properly capturing and recording assets when they first enter the District. And while this process is specifically about reconciliation, proper reconciliation like most other processes is not a standalone process. The entire chain of events must work for reconciliation to be efficient and effective.

2. The use of two systems, AMSI and APECS, creates duplicate data entry requirements and creates issues with keeping data in sync between the systems. AMSI is used by schools but not necessarily by departments creating an inconsistency. Asset scanners have been provided for schools but not departments creating yet another inconsistency in the way that asset information is collected.

3. There is a question about data from legacy systems and whether or not it exists in its entirety within APECS. These assumptions should not exist and the integrity of the data should not be questioned. Additionally, many assets have been tagged more than once which creates issues for properly identifying each asset.


• While schools apparently like AMSI, it has added a layer of complexity that should not exist. Look to replace functionality of AMSI and APECS with a single system with one point of entry that meets the needs of the schools as well as the need of the Office of Asset Management.

• Eliminate the paper requests and the filing of paper reports. Utilize the system instead to reduce the time required to process requests. Handling paper is inefficient, slow, and error prone. Efficiency can be easily gained with automation from both a time standpoint as well as a reduction in storage requirements.

• Ensure that all locations including the central office use the same process, systems, and procedures for tracking assets. This includes purchasing scanners for central departments to ensure their data collection methodologies are consistent with the rest of the district.

AST003 Asset Reporting

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Business Process Description The Office of Asset Management (OAM) is responsible for identifying, tracking, and accounting for all assets in the District. Each time a school or administration office purchases a new fixed asset, the information must be reported to OAM so that proper steps can be taken to identify and track the assets. The school or site has two methods by which it can inform OAM either online through AMSI or by completing an Asset Disposition Form (ADF). Once OAM receives notification, it compares the purchase order details to the request and resolves any discrepancies. Asset tags are then sent to the school or site and they attach the tags to the assets.


1. School/Admin Office purchase and receives new equipment. School/admin site 2. School/Admin office reports new purchase via AMSI and/or ADF. School/admin site 3. Asset Management receives ADF and prints copy of PO to verify

quantity, description, funding sources etc. OAM

4. OAM verifies request and adds equipment to inventory. OAM 5. School/Admin offices and/or contracted vendors are contacted

regarding discrepancies. OAM

6. Barcodes are sent to schools/admin offices via inter-office mail.

OAM and Mail & Distribution

7. Barcodes are assigned to Federal Programs, Band Shop and Contracted Vendors.

OAM

8. Schools/Admin offices are responsible for affixing each barcode to correct piece of equipment.

School, Admin sites and contracted vendors

Business Process Details As-Is Inputs: Asset Disposition Form, Purchase Order

As-Is Outputs: No external outputs identified.

As-Is Systems: AMSI, APECS



As-Is Reports: None


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Executive Summary Currently, new assets must be reported to the Office of Asset Management to be included in the asset inventory. This includes any asset obtained by the District whether purchased through a standard district purchase procedure or obtained via donation. Standard business process relies upon schools and departments to properly identify items that should be categorized as assets, to inform OAM that they have received as asset that should be inventoried, and to then tag the assets.

Process Issues

1. The glaring lack of an interface between the Procurement process and the identification of an asset for tracking and inventory is an inherent weakness in the asset management process. Without system support to capture the asset detail at the time of purchase, OAM must rely upon schools and departments to report the correct information including detailed serial number information accurately. They then take the necessary time to verify the information reported against purchase orders to insure accuracy of detail when the system should provide the detail and link it to the asset automatically.

2. Furthermore, the current process relies upon one or more individuals in each location to determine what items should be classified as assets making the reporting further error prone.


• Obtaining an asset through the standard procurement process must automatically identify assets and must add them to the asset inventory along with all of the relevant purchase detail automatically. Since the system has a commodity code and a dollar amount spent on the item, it will be easy to identify which purchases are fixed assets. Using the system for this purpose, eliminates errors, prevents items from not being inventoried, and saves time.

• The reporting process should be completed by the addition of an asset tag number to the already created asset inventory record. Other identifying information such as serial number could be added at the same time.

• The same system that is used to purchase the assets should be the one tracking the assets to eliminate interfaces or integrations as well as the need for redundant data entry. Most of the data tracked within the fixed asset management system is already available within the financial accounting system at the time of delivery and receipt. Therefore, this data should be captured and used as opposed to expecting someone to re-enter the data when the asset record is manually added to the system.

• This change would eliminate paper request forms and take the burden off of locations and departments for reporting new assets.

AST004 Create Asset

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AST004 Create Asset

Business Process Description Fixed assets, also known as Property or Plant and Equipment, are tangible items held by the school district for administrative purposes. These assets are expected to be used for more than one accounting period. Examples of common types of fixed assets include buildings, land, furniture and fixtures, machines and vehicles. The Office of Asset Management (OAM) is responsible for identifying, tracking, and accounting for all assets in the District. Each time a school or administration office purchases a new fixed asset, the asset record must be created in APECS. The school or site has two methods by which it can inform OAM either online through AMSI or by completing an Asset Disposition Form (ADF). Once OAM receives notification, they compare the purchase order details to the request and resolves any discrepancies. Asset records are updated by downloading information from AMSI and uploading it into APECS. A “new additions” report is printed and file.


1. School/admin office submit requests to add new equipment School/Admin

site 2. Receive request via AMSI and/or Asset Disposition Form. OAM 3. Verify the equipment meets criteria for tracking. OAM 4. Receive CEDR from vendors for technology purchases. OAM 5. Print copy of purchase order and verify funding source. OAM 6. Enter skeleton records for new equipment into AMSI web app. OAM 7. Verify quantity, description, serial number, barcode number, funding

source, program/project, etc., approves “Unapproved Transactions” in AMSI.

OAM

8. APECS-AMSI daily uploads and batch processing to refresh AMSI. IT 9. Skeleton records are converted to permanent records and added to

inventory and/or GL. Interface

10. Verify data imported into APECS correctly during overnight batch processing.

OAM

11. Investigate errors and items that failed to upload and make necessary corrections.

OAM/IT

12. Print “New Addition” report to match with supporting documentation. OAM 13. File supporting documentation in school/admin file. OAM

Business Process Details As-Is Inputs: Request to add new asset record

As-Is Outputs: New Asset Record, New Addition report

As-Is Systems: APECS, AMSI

As-Is Controls: OAM review

As-Is Interfaces: APECS to AMSI, File-based data exchange

As-Is Reports: None

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AST004 Create Asset

Executive Summary Currently, new assets must be created to the Office of Asset Management each time an asset is purchased and then reported. This includes any asset obtained by the District whether purchased through a standard district purchase procedure or obtained via donation. Standard business process relies upon schools and departments to properly identify items that should be categorized as assets, to inform OAM that they have received as asset that should be inventoried, and to then tag the assets.

Process Issues The glaring lack of an interface between the Procurement process and the identification of an asset for tracking and inventory is an inherent weakness in the asset management process. Without system support to capture the asset detail at the time of purchase, OAM must rely upon schools and departments to report the correct information including detailed serial number information accurately. They then must take the necessary time to verify the information reported against purchase orders to insure accuracy of detail when the system should provide the detail and link it to the asset automatically.


• Obtaining an asset through the standard procurement process must automatically identify assets and must create the asset inventory detail along with all of the relevant purchase detail automatically.

• The reporting process should be completed by the addition of an asset tag number to the already created asset inventory record. Other identifying information such as serial number could be added at the same time.

• The same system that is used to purchase the assets should be the one tracking the assets to eliminate interfaces or integrations as well as the need for redundant data entry.

• This change would eliminate paper request forms and take the burden off of locations and departments for reporting new assets.

AST005 Asset Depreciation and Redistribution

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AST005 Asset Depreciation and Redistribution

Business Process Description Assets are often moved from one school or department to another when they have been deemed to be no longer useful or of little or no value to the disposing site. This occurs for a variety of reasons. For example, having too many of an asset, receiving newer assets thus displacing older ones, closure of buildings, or a change in a program would trigger this process. Once an asset has been declared as surplus, the school or site submits a disposal request to the Office of Asset Management. Disposition of certain categories of assets trigger additional notifications as well. If technology assets are being disposed, Information Technology is notified. Items purchased with designated funds such a Title I funds trigger notification to Federal Programs. Careers and technology equipment trigger notification to that department. Upon receipt of notification, the appropriate department along with OAM decides if the asset can be moved and if so, where to move it to. Once decided, OAM forwards the request to Facilities/Inventory Control to have them pick up the equipment and deliver it to the new site. Upon completion, they send their documentation back to OAM as proof of delivery. Finally, the asset database is updated to reflect the appropriate changes.


1. School and/or site submits disposal request. School/Admin site 2. Information Technology (IT) is notified of disposal request and assess

equipment. Information Technology

3. Information Technology declares equipment as excess and/or recommends for disposal.

Information Technology

4. Information Technology recommends school sites in need of technology.

Information Technology

5. OAM assess equipment, re-package and label each asset to reflect funding source including assets purchased with federal funds.

OAM

6. OAM stores excess equipment until they have been reallocated to other sites.

OAM

7. Equipment is relocated to sites in need of technology based on email request(s) to OAM and/or IT recommendations.

OAM/Facilities & Inventory Control

8. Federal Programs, Exceptional Children and/or Careers & Technology are contacted regarding excess equipment purchased with their respective projects. Prior approval is required from certain departments in order to relocate assets purchased with federal funds.

OAM in conjunction with Federal Programs, SPED and CTE Dept

9. OAM forwards approved transfer request to Facilities/Inventory Control.

OAM

10. Facilities/Inventory Control delivers assets to new location/campus. Facilities/Inventory Control

11. Completed supporting documentation is forwarded back to OAM. OAM 12. Inventory database in updated accordingly to reflect equipment at

new location. OAM

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Business Process Details As-Is Inputs: Disposal Request, input to AMSI

As-Is Outputs: No external outputs identified.

As-Is Systems: AMSI, APECS

As-Is Controls: Office of Asset Management Review, Departmental reviews


As-Is Reports: None



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AST005 Asset Redistribution

Executive Summary Asset movement within the District is going to occur out of necessity and must be managed with all due diligence. Program changes, building closures, staff movement, and asset replacement are just a few of the reasons why assets move. Therefore, notification to the Office of Asset Management of the changes as they occur is necessary to ensure accurate asset tracking. The current process as described is pretty effective with OAM receiving a request for redistribution and then involving various departments to ensure compliance with Federal Title I laws, proper distribution of Special Education assets or whether technology assets have any remaining useful life. OAMs involvement ensures this compliance along with proper accounting.

Process Issues As stated, the current process is pretty effective. Involving departments with subject matter expertise such as Information Technology or Special Education is the key to making appropriate and effective decisions regarding the disposition of assets.


• Further automation to eliminate paperwork and reports would add efficiencies to the process. Every process relies heavily upon forms to be submitted to initiate the action and is then finished by printing and filing a report of completion. An electronic process for submitting the request and an audit trail of system changes to reflect the movement of the asset could eliminate all of this manual effort and reduce or eliminate the need for physical storage in the process.

• Dependent upon the number of disposal requests, an integration between the asset disposal request and the facility work order system might be warranted. The purpose of the integration would be to eliminate redundant data entry and to create a tight link between the request to move the asset and the actual work order to move it.

AST006 Track and Analyst Assets

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AST006 Track and Analyze Assets

Business Process Description The Office of Asset Management relies on schools and departments for notification of purchase or donation of an asset. Once a notification is received, a determination of the item is made to classify it as a trackable asset or not. The item is then barcoded and necessary data such as serial number, description, and funding source are collected.


1. School/admin office/contracted vendor submits request to OAM

(purchased and donated). Requestor

2. Add equipment to inventory. OAM 3. Verify barcode associated with serial numbers, funding source, cost, etc. OAM 4. Assess a market value to donated equipment. OAM 5. Ensure capitalization of equipment with a unit cost of $5000 and above. OAM 6. Verify quantity reported against quantity ordered on purchase order. OAM 7. Monitor site-to-site movement from acquisition to retirement for all

equipment within District and update inventory database accordingly. OAM/Facilities & Inventory Control

8. Verify, investigate and update inventories accordingly based on physical inventory reported to OAM.

OAM

9. Remove all equipment from inventory database that has been surplus to computer recycle, sold at public auction, stolen and/or returned to vendor for warranty reasons.

OAM

10. Print “New Addition” and/or “Deletion” report and file along with supporting documentation in school/admin file.

OAM

Business Process Details As-Is Inputs: Request from School or Site, Purchase Order details.

As-Is Outputs: None


As-Is Controls: OAM review


As-Is Reports: New Additions report. New Deletions report.


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AST006 Track and Analyze Assets

Executive Summary Very little analysis, if any, of existing assets is currently performed to determine useful life, develop replacement plans, or to assist with capital budget planning. The effort made to track assets is significant, however, the efforts need better automation, depend upon multiple systems, and rely heavily on paper-based processes. Assets are tracked if the receiving location or department sends a request to the Office of Asset Management to have the assets added to inventory. When this doesn’t occur, the potential of assets going untracked is quite high.

Process Issues The process is largely manual today augmented by two systems, neither of which can handle the entire asset tracking, reporting, and analysis functions alone. The process relies on site or department personnel to know what an asset is, to request the asset be tracked, to request and fix barcodes to the items, and to report the barcode data to OAM. With so many individuals being responsible for this function, the likelihood of assets being missed, a person not doing their job, or non-assets being tracked is highly likely. All of which leads to questioning the validity of the data.


• The Procurement process must drive the creation of the initial asset record automatically and electronically. This step alone takes a large part of the error-prone human element out of the equation. This would eliminate the need to request an asset be added to inventory, eliminate the need to print a Purchase Order and match it to the assets, and would greatly reduce the data entry requirements.

• With the Procurement process leading to an asset record all data required to later classify the asset could be captured included funding source, commodity code, Purchase Order number, Requisition number, purchasing location, vendor detail, and receiving department.

• Once an asset is received by a site or department, the receiver could utilize the system to enter other relevant tracking information such as barcode data, building number, room number, responsible party and so forth.

• Utilizing one system would eliminate the need to integrate the two systems and users would always know that they were working with the most current and up-to-date information. There would be no question regarding whether or not the data was available and in the system.

AST007 Company Property Administration

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Business Process Description Schools and administrative offices can submit requests for various dispositions of assets including purchase and disposal. The process is initiated by the school or site sending a request to the Office of Asset Management. OAM verifies the equipment in the request and prints a copy of the Purchase Order for new purchases. If the purchase exceeds $100, the item is considered an asset and will be added to the fixed asset inventory. OAM also ensures capitalization for all items with a unit cost in excess of $5000. A new additions report is printed and filed. The contracted vendor obtains barcode labels from OAM providing installation service and they are responsible for tagging the asset. Particular programs (Federal programs, Title I, Title II, Band, etc.) assume the responsibility for tagging their own assets. They provide a signed Asset Disposition Form to OAM. Vendor provides a signed CEDR as proof of delivery.


1. Schools/admin offices submit request for one of various dispositions. School/Admin site 2. Verify equipment type, class code, etc., and prints PO. OAM 3. Print Purchase Order. OAM 4. Verify equipment meets $100 threshold. OAM 5. Verify funding sources to ensure correct grant classification

(Updates grant classification annually). OAM

6. Equipment is added to inventory. OAM 7. Verify and ensure all items were added to the inventory database

correctly. OAM

8. Ensure capitalization of all equipment with a unit cost of $5000 and above.

OAM

9. Print “New Additions” reports for schools/admin files. OAM 10. File Report. OAM 11. Request asset tags. Contracted Vendor 12. Request asset tags for equipment purchased with federal dollars

(Title I & II funds) for private and charter schools. Federal Programs (ESEA)

13. Request asset tags for band instruments. Band Shop 14. Assign asset tags to new instruments for Band Shop and prints 2

copies of PO (1 for OAM and 1 for Band Shop). OAM

15. Affix asset tag. Vendor/Federal Program/Band Shop

16. Engrave equipment. Band Shop 17. Deliver to receiving site.

Vendor/Federal Program/Band Shop

18. Vendor provides signed CEDR for each site with a receiver’s signature as proof of delivery.

Contracted Vendor

19. Submit completed Asset Disposition Form(s) to OAM. Federal Programs (ESEA)

20. Provide signed copy of the Asset Disposition Form(s) as proof of delivery.

Band Shop

21. Equipment is added to inventory and the inventory database is updated to reflect new additions.

OAM

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Business Process Details As-Is Inputs: Request for disposition, CEDR

As-Is Outputs: Assets added to inventory


As-Is Controls: OAM and Program oversight


As-Is Reports: New additions reports



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Executive Summary The current process is dependent upon paper reports, printed purchase orders, and hand written forms. Currently, at least some contracted vendors obtain District barcode labels from the District and attach them to the asset prior to delivery.

Process Issues As with most processes this process is too heavily dependent upon paper for execution and not automation. Automation would save time, save storage, improve efficiency and increase auditability of all transactions. Apparently some contracted vendors obtain barcode labels from the District and apply them prior to delivery. This practice needs to be expanded to as many vendors as possible to eliminate the need to have District staff obtain the labels and affix them to the asset.


• Require vendors that are putting District asset tags on items to prepare an electronic list of asset IDs, serial numbers, and other information.

• Use the electronic vendor list to update the District’s fixed asset database via an upload process to eliminate the need to rekey information and therefore eliminate data input errors.

• Eliminate the paper forms by utilizing technology. • Eliminate printed reports to save paper, time, and storage space. Use the audit features of an

automated system to capture and retain the same information if it should be needed.

BEN001 COBRA Administration

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Business Process Description The goal of this process is to be in compliance with Federal COBRA regulations. The outcome of the business process is to identify eligible COBRA participants to send documentation, track participant coverage, and process monthly billing/premium reports. COBRA is a federal law that allows a previous employee and any of their family members to stay on an employer-sponsored health plan under certain circumstances. It keeps the District from violating Federal Cobra laws and potentially being fined for not complying with regulations. Current COBRA Administration is managed by Cushion Employee Services.

Business Process Steps Step # Step Description Executed By 1. Prior to 9/1/2015, a termination report was pulled from APECS of

terminated employees with medical, dental or vision coverage. The report was then uploaded into COBRA Solution and the COBRA notices were generated.

Benefits Manager

2. Currently, Cushion Employer Services receives the termination file from our Benefits online system (ChoiceLinx).

CES

3. Cushion mails COBRA notification to eligible members within 7 days after receiving notice.

CES

4. Eligible member sends election form to Cushion with premium. Member 5. Cushion reinstates with the carrier, sends confirmation and coupons

to former employee. CES

6. Member is reinstated with carriers, sends confirmation letter and coupons to member.

CES

7. Eligible member sends election form without premium. Member 8. Updates information and send confirmation to member and hold

enrollment for 45 days. CES

9. Members sends premium within 45 days. Member is reinstated with carriers, sends confirmation letter and coupons.

CES

10. Member do not send premium within 45 days. COBRA “cannot commence” letter is sent to member.

CES

11. Member does not send letter at all. Cushion sends a COBRA cannot commence letter to member (the letter is sent 60 days from the later when member was furnished the election notice or the date coverage ended.

CES

12. Member sends premium by the first of the month for which coverage is provided. Cushion posts monthly premium.

CES

13. Member does not sent premium by the first day of the month for which coverage is provided, a 30 day grace period is provided to allow member to send premium.

CES

14. No premium is received within 30 day grace period, Cushion terminates member in system, sends COBRA termination letter and Certificate of Coverage to member.

CES

15. Cushion sends payments to SCS each month. CES 16. Benefits Advisor submits the payment to Finance Department to be

posted to the Insurance Fund. Benefits Advisor

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Business Process Details As-Is Inputs: Termination File

As-Is Outputs: Premium Posted, COBRA termination letter, Certificate of Coverage.

As-Is Systems: Cobra Administration handled by Cushion Employer Services, ChoiceLinx



As-Is Reports: None

As-Is Statutes: Federal Law - COBRA


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Executive Summary The goal of this process is to be in compliance with Federal COBRA regulations. The outcome of the business process is to identify eligible COBRA participants to send documentation, track participant coverage, and process monthly billing/premium reports. COBRA is a federal law that allows a previous employee and any of their family members to stay on an employer-sponsored health plan under certain circumstances. It keeps the District from violating Federal Cobra laws and potentially being fined for not complying with regulations. Current COBRA Administration is managed by Cushion Employee Services

Process Issues We cannot effectively track billing if more than 1 payment is keyed in the same month. We also cannot run billing reports for a time frame or in excel format.


• Even if you continue to use Cushion as your third party administrator to manage your COBRA compliance, you should configure your new ERP to do the same. By simply withholding the letters and allowing Cushion to continue that work, your ERP system will track who is on COBRA concurrently with Cushion. This does require that we verify carefully that the new ERP and Cushion are configured to make the same decisions with the same information. Not doing this will result in the two systems needing frequent reconciliation.

• The same Benefits Billing system used for collecting payments for other benefit premiums owned from non-employees can be used with COBRA. Accounts Receivable can then either send the invoices themselves, or reconcile them with the payments coming from Cushion. Since AR will hold a balance per customer, multiple payments in a month will not be an issue.

• Reporting from AR should be accessible in multiple formats.

acp002 payment without a po - shelby county schools analysis p… · the po is found, verify the...

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