School districts experience plenty of pressure these days. They must show they can manage their budget efficiently while maintaining their quality of service and resources. This management strategy includes managing their fixed assets.
They must keep track of many items under “fixed assets.” These include everything from furniture and computers to vehicles and machinery. Although these assets can sometimes be overlooked, when given careful attention, they can save valuable funds.
Effective fixed asset management can do many things for schools. It streamlines operations and allocates resources more effectively. More importantly, it fulfills certain legal requirements. When schools run into trouble managing their fixed assets, working with a fixed asset inventory company can be helpful. Fixed asset services tailored to a school’s needs will do wonders, especially for schools that must make the most of limited budgets.
Let’s explore strategies for managed fixed assets and how a school inventory company helps school districts manage their assets on a budget.
Why Fixed Asset Management Matters for School Districts
School districts are entrusted with public funds, which means they must be transparent about how the funds are used. That’s why fixed asset management in these schools is vital.
- Legal requirements: School districts must maintain accurate records to follow federal and state regulations, especially for assets purchased with public funds.
- Cost efficiency: Knowing what assets are available and where they are located prevents unnecessary purchases and reduces waste.
- Improved planning: Proper asset tracking allows schools to more reliably plan for replacements, upgrades, and maintenance expenses.
Managing fixed assets can seem like a luxury in tight finances. However, several budget-friendly ways exist to achieve these benefits without weakening the resources.
Best Practices for Cost-Effective Fixed Asset Management
Here are some best practices to help school districts manage fixed assets while controlling costs.
1) Start with a complete inventory audit
Before applying any fixed asset management strategies, understand clearly what assets your school district already owns. This means performing a full inventory audit. A fixed asset inventory company can assist with this process, providing specialized knowledge and resources to create a detailed asset list.
Regular audits help keep records accurate and prevent loss or theft. They also allow districts to be better informed when buying or disposing of something.
Follow these tips for an efficient inventory audit:
- Prioritize high-value assets: Start with high-value assets like computers and other technology that require close tracking. (They may also have a shorter life cycle.) Focusing on high-value assets first will make the process manageable and within budget.
- Tag and categorize: To streamline future audits, use asset tags and categorize assets based on location, department, and type.
- Use existing Staff: To reduce the costs of an external audit, consider training school staff to help with asset counts.
2) Use technology to track assets
Manually tracking assets is time-consuming and likely to produce human errors. Using technology is the ideal option in the long run, especially when considering options that scale with the district’s needs.
Many fixed asset services offer affordable tracking systems. They even have systems tailored to educational environments. Districts can apply them easily without major expenses.
These low-cost tracking solutions are:
- QR Codes and scanning apps: RFID tags may be too expensive. How about QR codes instead? Many asset management apps allow QR code scanning to track assets. They are affordable and straightforward.
- Cloud-based asset management software: Some software offers tiered pricing, so schools can pay only for the features they need. Cloud-based software also allows for remote access, which is useful for larger districts with multiple campuses.
- Shared solutions with neighboring districts: In some cases, districts may partner to share costs on an asset management system, spreading the financial burden across several schools.
3) Schedule maintenance as a preventive measure
Proper maintenance extends the life of assets and helps avoid costly repairs or replacements. For budget-conscious districts, preventive maintenance can offer great savings by ensuring that equipment stays functional for as long as possible.
Preventive maintenance will extend the assets’ lifespan and help avoid emergency repairs, which can be more expensive and disruptive than planned upkeep. A proactive approach to maintaining anything from buses to HVAC systems can lower long-term expenses.
Some maintenance tips to heed:
- Create a maintenance calendar: Develop a calendar to track routine maintenance activities for all high-value assets.
- Automate reminders: Many fixed asset services offer reminder systems to notify staff of upcoming maintenance tasks to avoid oversight.
- Record maintenance work: Document all maintenance activities to ensure that assets are serviced as needed. This record can also prove compliance with maintenance policies if the district undergoes an audit.
4) Train staff on asset management procedures
Train the school district’s staff to cut fixed asset management costs most effectively. Employees empowered with basic asset management skills can reduce losses and minimize errors in tracking inventory.
Training doesn’t have to be complex or expensive. It can be done online or in-house. Investing in employee training will also lower the risk of mismanagement. There will be less need for constant supervision by the central office.
Consider the following training topics:
- Asset identification and tagging: Train staff to accurately identify, tag, and record assets.
- Loss or damage report: Establish clear guidelines for reporting lost or damaged assets to keep records up to date.
- Records access and update: Ensure staff can access and update inventory records as assets move between classrooms, buildings, or departments.
5) Work with a fixed asset inventory company
Outsourcing parts of asset management to a fixed asset inventory company may seem counterintuitive for a district on a tight budget. However, it can actually be worthwhile. Using a school inventory company with experience in public school asset management opens the door wide to resources that may be out of reach otherwise.
The right company can set up the initial inventory and assist in ongoing audits. It can also handle asset disposal. Moreover, a fixed asset inventory company can be especially useful for districts undergoing major changes, like technology upgrades or expansions, that require tracking a larger volume of assets.
Other benefits of outsourcing are:
- Reduced overhead: Outsourcing asset management tasks to professionals saves on staffing costs.
- Expertise: Fixed asset inventory companies are familiar with state and federal regulations. They can educate school districts to better understand the law.
- Efficiency: Professionals can perform inventory audits and tracking much faster, freeing up internal staff for other essential duties.
6) Improve practices of asset disposal
Disposing of outdated or broken assets is inevitable in asset management. Schools should adopt a standardized disposal process to free up store space. In some cases, asset disposal can also recover funds through sales or recycling.
It’s not just a matter of removing clutter. It’s also an opportunity to recoup costs or contribute to other education initiatives. Disposing of assets can support a district’s financial goals.
Steps for an effective disposal include the following:
- Evaluating asset condition: Determine which assets can be sold, recycled, or donated to avoid unnecessary waste.
- Generating revenue: For assets that still have value, consider auctioning them or selling to other schools or nonprofits.
- Documenting the process: Keep thorough records of all disposed assets to maintain transparency and accountability.
7) Monitor and adjust the program regularly
Fixed asset management is not a “set it and forget it” process. Regular reviews and adjustments of asset management procedures will keep districts updated with changing needs and find new ways to save. For example, yearly reviews can reveal underused assets, which might allow for a reallocation or cancellation of unnecessary purchases.
Take these steps for regular monitoring:
- Conduct annual reviews: Analyze which assets are in use, which are sitting idle, and what might need replacement.
- Analyze cost savings: Track any reductions in replacement costs, theft, or lost items to evaluate the program’s success.
- Engage participants: Gather feedback from teachers and staff to identify any issues or suggest improvements.
Conclusion
School districts on a tight budget have nothing to fear. Effective fixed management is still possible. It’s an invaluable tool that leads to better resource allocation, increased transparency, and an improved economy.
The initial investment in asset management strategies may seem formidable, but the long-term benefits and savings are worth it. Working with a fixed asset inventory company, taking advantage of affordable tech, training staff, and enacting preventive maintenance will allow school districts to fully manage assets without overspending.
Adopt these best practices and empower your school district to stretch its budget further. Trust that they will contribute to a more sustainable learning environment.
