BSAG August 2017 Inventory Threshold Agenda Background Survey Results Perceived Benefits amp Concerns Summary of Comments Summary of Survey Input Options Background Suggestion Review inventory threshold ID: 636985
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Slide1
Inventory Cost Threshold
BSAG – August 2017Slide2
Inventory Threshold -- Agenda
Background
Survey
ResultsPerceived Benefits & ConcernsSummary of CommentsSummary of Survey InputOptionsSlide3
Background
Suggestion: Review inventory threshold
USG Policy: track items > $ 3,000 (
and with life expectancy > 3 years)Some exceptions: artwork, firearmsUGA Policy: track items > $ 500 Some exemptions: furniture, lab equipment, IT switches
53,500 inventory items fall between $500 and $3000
BSAG review leads to suggested options:
Raise threshold to $ 3,000
Raise threshold to $ 1,000
Do nothing – keep current policySlide4
Inventory Threshold Survey ResultsSlide5
Inventory Threshold
–
Perceived Benefits &
Concerns
+++
Less time devoted to inventory
Fewer items to track, reduces admin burden
Alignment with USG policy
Procurement OptionsRisk is balanced by savings
- - -Less data available from Prop. ControlInternal tracking of non-inventory items (added burden for those who choose to do this)Difficulty in tracking off-campus useIT security, potential for abuse, theftLoss of visibility on some itemsCampus perception of “loose on accountability”
These are representative opinions. Those who saw benefits
tended to
mention the
same things, but the overall number of those expressing benefits
was
slightly more than those expressing
concerns
.Slide6
Inventory Threshold
–
Possible Concerns RankedSlide7
Inventory Threshold
–
Summary of Comments
$3000 makes sense; works for everyone else (USG Institutions)
$1000 is a good compromise
Make the change incrementally
The change is too drastic
Don’t change anything
Make the change, but not for computer equipment
If the threshold changes, we’ll establish our own and track to that
General concerns
about a unilateral threshold increase Confer with our peer institutions within the BOR for feedback on their limits, experience with insurance, fraud/theft, etc.Slide8
Inventory Threshold –
Other USG Institutions
Georgia Tech
$3000 Threshold Custodial Departments handle any risks27,445 items on inventoryNo concerns with current thresholdValdosta State
$3000 Threshold
2,383 items on inventory
No policies on items under threshold
Kennesaw State
$3000 Threshold
Will add items under $3000 (as-needed)
Tracks 2,823 items under threshold (6,439 total assets - figure includes buildings)
No concerns with current thresholdGeorgia State$3000 Threshold10,432 items on inventoryDepartments responsible/accountable for any items under $3,000. Slide9
Inventory Threshold
–
Summary of Survey Input
A majority (slight) wants to increase the inventory threshold
Many respondents advocated incremental change
Those favoring change split evenly
to $1000 or $3000
Satisfied that the benefits eclipse the risks
A minority (significant) favors no changeUndercurrent of concern surrounding IT itemsDesire to continue tracking lower value items Uncomfortable with risk (mostly IT)Slide10
Inventory Threshold
–
Options
Change Threshold to $3000
Affects 53,500 items
Change Threshold to $1000
Affects 19,700 items
Do nothing
– Keep Current Policy Slide11
Inventory Cost Threshold
BSAG – August 2017