Establishing a Single Source of Asset Truth to Enhance Long-Term Strategic Plannings

Establishing a Single Source of Asset Truth to Enhance Long-Term Strategic Planning

Through collaboration with other senior staff, Financial Officers play a pivotal role in defining organizations’ operations and levels of service. Key responsibilities include leading the sustainable allocation of limited resources through the development of longterm financial plans, as well as evaluating organizations’ performance through the preparation of financial statements. This annual process is met with a set of unique challenges, one of which being data collection. Without a single source of asset truth, Financial Officers face barriers that deter confidence required in long-term strategic planning and performance evaluation.

A sole asset ledger containing data collected from multiple departments ensures consistency, accuracy, and that the information is up to date. Yet many local governments have multiple data registries for separate departmental functions, resulting in silos of data.

The use of individual data sets is represented in Figure 1, demonstrating four different systems collecting data: Tangible Capital Asset registry, Asset Management registry, Computerized Maintenance Manager System (CMMS), and Geographic Information System (GIS). Figure 1 also shows the variety of reporting and planning documents produced by each system. This type of data collection system leads to inefficiencies and may result in data inaccuracies.

A single system that hosts all of an organization’s asset data will diminish the risks associated with siloed data and ultimately achieve greater productivity and efficiency. Figure 2 establishes a process that produces a single source of asset truth. By having one single system, all activities related to each asset are updated in one central registry, removing the redundancy of departments updating their ledgers independently. Additionally, having one central system enables departments to access data that they may not otherwise have access to, increasing reporting flexibility across the organization.

Figure 1. Example of Data Silos

Figure 2. Data system with a Single Source of Asset Truth

While organizations work towards a central system, they can begin adapting their processes and follow simple steps to achieve a single source of asset truth. 1. First begin by defining the organization’s broad objectives during the development of Official

Community Plans, Strategic Objectives, Departmental

Plans, and integrate with the budgeting process. 2.Next, identify data requirements for the organizational objectives. For example: • Finance Reporting: capital budgets, operating budgets,

TCA/ARO reporting and performance measures. • Asset Management Planning: risk and lifecycle analyses, levels of service frameworks. • Organizational Operations: maintenance requirements and service requests. 3.Begin classifying categories of data by key indicators that are required for each reporting, planning, and operational requirements. These categories can be tailored to your organization’s preferences and will establish a data hierarchy system required by all departments within your organization. Examples of categories include: • Identifiers - import ID, location, GL Accounts • Classification - category/segment, department • Valuation - replacement cost, historical cost • Attribute Data - dimensions/size/diameter, material, make/model • Assessment - assessed condition, utilization • Interventions - type of intervention, time of intervention 4.Establish a data governance policy/framework to ensure that data is being updated in all inventories.

Doing so will ensure that all data is being updated in each departments’ inventories until a central system is implemented. 5.The final step involves the implementation of a centralized software solution that houses the sole source for data to evaluate performance and produce reports with confidence.

JEFF MUIR is a Regional Manager at PSD Citywide. As Regional Manager, Jeff leverages his 13+ years of experience in asset management software and consulting to help clients overcome business challenges by using technology to deliver real, lasting results. Jeff’s focus is working with clients to evaluate their unique needs and consulting on how they can make practical and meaningful advancement in their practices related to asset management, maintenance management, permitting, and budgeting.

PETER PAINE is the Senior Manager of Financial Advisory Services at PSD Citywide. Peter is an established accounting professional with over a decade of experience in accounting, budgeting, forecasting, and modeling for the public sector. He has extensive expertise in the financial administration of major capital infrastructure projects, as well as the development, compilation, and review of Long-Term Financial Plans. Peter leads PSD Citywide’s Financial Advisory team successfully supporting governments across the Country.