360° Asset Visibility Fixed Asset Inventory and Reconciliation Services
The path to transparency begins with 360° asset visibility—starting with an accurate inventory of your fixed assets. Duff & Phelps is here for you. Our professionals draw upon deep experience and leading-edge technology to continually develop and refine new and better procedures, and are recognized for establishing best practices in fixed asset inventory and reconciliation.
Duff & Phelps - Fixed Asset Inventory and Reconciliation Services
Open up the view of your enterprise Does your existing fixed asset record accurately reflect the physical reality of the assets upon which your enterprise depends? Inaccurate records can blindside you and your organization—heightening strategic, financial and operational risk. In a post-Sarbanes-Oxley environment of corporate (and company officer) accountability, when both GAAP and IFRS expect enhanced transparency, the lack of clarity relative to your fixed assets could cost you more than you would imagine. The need for accurate data is now being driven by the multiplicity of regulatory changes and related reporting requirements, all of which require moving towards 360° asset visibility. Enterprises have come to embrace how important it is to know what they have and who to go to for assistance. The path to transparency begins with an accurate inventory of your assets. As simple as that sounds, maintaining a reliable fixed asset inventory is a challenging, labor-intensive task for any enterprise—public or private. Duff & Phelps is here for you. While other firms have downsized their fixed asset capabilities, relying instead on subcontractors, we have continued to develop this area of our expertise. Each year, we provide fixed asset services for hundreds of clients including some of our nation’s largest manufacturers, telecommunications leaders, universities and healthcare systems, as well as state and local governments.
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What would you like to see today? Public- and private-sector clients can have different fixed asset inventory and reporting challenges; however, both rely on accurate information to account for, control and manage their real and personal property assets. Starting with proven methodology and procedures, our specialists draw upon deep experience and leading-edge technology to constantly evolve and refine new and better procedures. Consequently, Duff & Phelps is recognized for establishing our profession’s best practices in fixed asset inventory and reconciliation.
We appreciate the professionalism and conscientiousness shown during our engagement. Your professionals were extremely knowledgeable, diligent and dedicated to helping us achieve our objectives. We appreciate their flexibility in adapting to changes in the project as we progressed. The final report will be very useful in establishing the baseline acquisition costs for the fixed assets.”
The United States Coast Guard
Duff & Phelps
Duff & Phelps - Fixed Asset Inventory and Reconciliation Services
I want to see if I’m missing anything obvious. When was the last time a physical inventory of your fixed assets was conducted? How often are your fixed asset sub-ledgers assessed for accuracy and completeness? Are property taxes and insurance premiums being paid on ghost assets? Duff & Phelps differs from other firms that approach fixed assets with a fixed notion of what is appropriate. We believe that this is precisely how obvious things are missed. Our professionals draw from an unrivaled knowledge base built over thousands of engagements to select an approach and methodology that will provide the level of detail you require to make the most appropriate management decisions. Duff & Phelps also offers diagnostic studies, a low-cost way of finding out if your fixed asset records are adequate. If a problem exists, we recommend the appropriate path, which can range from a limited study to confirm the continued existence of a small sample of your fixed assets to an exacting wall-to-wall physical inventory and reconciliation of the assets to your fixed asset accounting ledger. Here are a few things we found for our clients: •
Millions of dollars in property tax savings for HCA Inc. as a result of physical inventory of fixed assets and identification of unrecorded disposals.
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A detailed analysis of the fixed asset records of a pharmaceutical manufacturer identified a large number of bulked entries. Our solution provided the appropriate detail for individual entries, allowing for easy maintenance of future disposals.
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A fixed asset study resolved locational discrepancies that had resulted from years of improper accounting of transfers for an international manufacturer of semiconductors, resulting in over $500k in tax savings.
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A wall-to-wall inventory and reconciliation segregated over $1.5 billion in assets between a major university and its medical center. The process also identified that more than 20% of the recorded assets no longer existed.
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Duff & Phelps - Fixed Asset Inventory and Reconciliation Services
I want to see numbers that do not raise flags The one universal truth about fixed asset accounting records is that over time inaccuracies will accumulate, thereby undermining the reliability of this critical management tool. Equipment transfers, retirements and disposals; bulk purchases; changes in capitalization thresholds; employee turnover; merger, acquisition and divestiture activity—all can have adverse accounting and financial reporting implications. You invested a significant amount of time, effort and money in the creation of your fixed asset record. Duff & Phelps can help you perpetuate that investment through the provision of annual updating services. Here are a few examples of how we set the records straight. •
We reconstructed the fixed asset accounting records of HealthSouth Corporation to support its multibillion-dollar restatement for financial reporting.
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We performed a physical inventory and reconciliation of over $3 billion in fixed assets comprising buildings, infrastructure and equipment of the City of Atlanta including Hartsfield-Jackson Atlanta International Airport.
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Due to resource limitations, a multinational telecommunications equipment manufacturer with over 50,000 assets worth over $1 billion retains us on a cyclical basis to help maintain the accuracy of its fixed asset accounting records for SarbanesOxley compliance.
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A major research university saw its federal reimbursement significantly reduced when its audit revealed its fixed asset records were only 40% accurate. We now perform a wall-to-wall inventory and reconciliation every two years, which has led to the university’s reimbursement being adjusted back to 100%.
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Duff & Phelps - Fixed Asset Inventory and Reconciliation Services
I want to see how my assets are being used and who is using them.
Have your internal auditors expressed concern regarding the adequacy of control over your enterprise’s fixed assets? Have your internal or external auditors issued any negative management letter comments relative to this area of management responsibility? C-level executives are under tremendous pressure to not only demonstrate asset control, but also to understand how assets under their control are being used and who is using them. Duff & Phelps employs a top-to-bottom approach to help achieve the level of internal control that is appropriate to your business needs. Our dedicated global fixed asset professionals stand ready to assist—no matter what business you’re in or where your assets are located. Here’s how we managed to impress our clients’ internal and external auditors: •
We developed cyclical physical inventory programs for various publicly held companies to address the testing of internal controls over fixed assets in accordance with Section 404 of Sarbanes-Oxley.
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External auditors recommended a major healthcare system in Texas seek an independent assessment of its fixed asset records. We created a solution that helped to satisfy the audit requirement while keeping the project under budget.
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A federal government entity had an audit finding that identified major assets without supportable acquisition cost and date information. We performed a comprehensive inventory and reconciliation, resulting in a clean audit opinion the following year.
I want to see forwardlooking views and whatif analyses.
Duff & Phelps maintains an IT consulting staff dedicated specifically to fixed asset management services such as data and software conversions as well as providing clients with access to their data via the internet. Our proprietary ePRAIS® system is in accordance with SOC 1. Here’s how we have used technology to improve fixed asset visibility: •
Our IT staff developed a specific reconciliation application for Tenet Healthcare Corporation to accommodate the unique structure of its software system.
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We converted California Joint Powers Risk Management Authority’s reporting system to an electronic, on-line process to provide CJPRMA with real-time access to its fixed asset data as well as the added flexibility of data manipulation. These procedures accommodated CJPRMA’s extensive fixed assets comprising approximately 6,700 buildings and $7.0 billion in value.
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Duff & Phelps - Fixed Asset Inventory and Reconciliation Services
See what we can do for you
If you’re contemplating fixed asset inventory and reconciliation services, ask yourself: Which firm brings the most experience to the table? Who can offer a bird’s-eye view, as well as efficiently manage potentially thousands of manual tasks? Which firm employs a team of professionals dedicated to this practice area? When you examine the realities, we think you will find there is only one answer...
Duff & Phelps. We have the experience. •
We are recognized for establishing best practices in fixed asset inventory and reconciliation.
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Our inventory services have evolved over thousands of engagements and across virtually every sector of the economy, both public and private.
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Our dedicated global team of full-time fixed asset professionals facilitates a nimble response to global assignments.
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We offer incomparable specialization in higher education, healthcare, and all levels of government, as well as serving a diverse group of corporate-sector clients.
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Duff & Phelps - Fixed Asset Inventory and Reconciliation Services
We have global reach and local expertise. Our firm’s more than 2,000 employees serve a diverse range of clients from offices around the world.
We are experts. Breadth and depth of expertise eliminates the need to rely on subcontractors. Our professionals have the experience necessary to solve virtually any fixed asset management issue.
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Professional chairmanships include the Appraisal Issues Task Force and the Appraisal Standards Board (the FASB of our profession) Unrivaled interaction with ASA, a key valuation standard setting agency
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Frequently presenting at national and regional conferences, including ASA, GFOA,
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HFMA and NPMA
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Credentials include Certified Public Accountant; Chartered Financial Analyst; Accredited Senior Appraiser (American Society of Appraisers); Member, Royal Institution of Chartered Surveyors; MAI (Appraisal Institute); Project Management Professional; and Corporate Finance
We are focused on client needs. Duff & Phelps is unequivocally committed to meeting client needs. Our fixed asset management services assist our clients in meeting their regulatory, financial reporting, property management, and property and income tax objectives.
Our external auditors required extensive testing of our property records. The firm and its diversified team of experts worked with our personnel to exceed expectations and met extremely tight deadlines while providing reliable independent studies.” Wayne Hegwood Director of Special Projects Corporate Accounting HealthSouth Corporation
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Who we serve.
In addition to fixed asset inventory and reconciliation, Duff & Phelps offers the following fixed asset management services: useful life analyses, cost segregation, property management diagnostic consulting, property insurance valuations and property record outsourcing. These services are designed to address financial reporting and property management standards, income and property tax issues, and regulatory compliance, including Sarbanes-Oxley and various Office of Management and Budget Circulars. Duff & Phelps maintains dedicated consulting groups for manufacturing, healthcare, higher education and the public sector.
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Duff & Phelps - Fixed Asset Inventory and Reconciliation Services
Over the past decade, we have provided fixed asset management services to hundreds of clients including: 3Com Corporation
M.D. Anderson Cancer Center
Bausch & Lomb Incorporated
Milwaukee Metropolitan Sewerage District
Bristol-Myers Squibb
NBA Properties, Inc.
City of Atlanta
NIKE, Inc.
Chrysler Group LLC
Northrop Grumman Ship Systems
Coca-Cola Bottling Company United, Inc.
Northwestern Memorial Hospital
Columbia University
Princeton University
Community Health Systems, Inc.
Stanford University
Cooper Tire & Rubber Company
State of New Mexico
Dean Foods Company
State of Vermont
Electronic Arts, Inc.
State of Wisconsin
Ford Motor Company
Tenet Healthcare Corporation
George Washington University
The Mayo Clinic Jacksonville
H.J. Heinz Company
The United States Coast Guard
Harvard University
The Walt Disney Company
HealthSouth Corporation
Toyota Motor Engineering & Manufacturing
HCA Inc.
North America, Inc.
Kellogg Company
William Wrigley Jr. Company
Kraft Food Group, Inc.
Yahoo! Inc.
Lockheed Martin Space Systems McKesson Information Solutions LLC
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For more information please visit: www.duffandphelps.com
About Duff & Phelps Duff & Phelps is the premier global valuation and corporate finance advisor with expertise in complex valuation, dispute and legal management consulting, M&A, restructuring, and compliance and regulatory consulting. The firm’s more than 2,000 employees serve a diverse range of clients from offices around the world. M&A advisory and capital raising services in the United States are provided by Duff & Phelps Securities, LLC. Member FINRA/SIPC. Pagemill Partners is a Division of Duff & Phelps Securities, LLC. M&A advisory and capital raising services in the United Kingdom and Germany are provided by Duff & Phelps Securities Ltd., which is authorized and regulated by the Financial Conduct Authority.
Duff & Phelps
Copyright © 2016 Duff & Phelps LLC. All rights reserved.
Fixed Asset Inventory & Reconciliation Services
The path to transparency begins with an accurate inventory of your assets.
Industry expertise
Does your existing fixed asset accounting record accurately reflect the physical reality of the assets upon which your enterprise depends? Inaccurate records can blindside you and your organization—heightening strategic, financial and operational risk.
Our best practices have evolved over thousands of engagements and across virtually every sector of the economy, both public and private. We offer incomparable specialization in manufacturing, higher education, healthcare and all levels of government.
The need for accurate data is now being driven by the multiplicity of regulatory changes and related reporting requirements, all of which require moving towards 360° asset visibility. The path to transparency begins with an accurate inventory of your assets. As simple as that sounds, maintaining a reliable fixed asset inventory is a challenging, labor-intensive task for any enterprise— public or private.
Resources to act fast
Duff & Phelps is here for you
Public- and private-sector clients can have different fixed asset inventory and reporting challenges; however, both rely on accurate information to account for, control and manage their real and personal property assets.
Duff & Phelps combines global reach with local expertise, serving clients from offices around the world. Our dedicated fixed asset professionals stand ready, no matter what business you are in or where your assets are located.
The move toward 360° asset visibility
Starting with proven methodology and procedures, our specialists draw upon deep experience and leading-edge technology to constantly evolve and refine new and better procedures. We are recognized for establishing our profession’s best practices in fixed asset inventory and reconciliation.
Duff & Phelps
What would you like to see today?
Duff & Phelps - Fixed Asset Inventory & Reconciliation Services
I want to see if I’m missing anything obvious.
I want to see forward-looking views and what-if analyses.
Duff & Phelps routinely performs detailed diagnostic studies, a low-cost way of finding out if your fixed asset accounting records are adequate. If a problem exists, we recommend the appropriate path, which can range from a limited study to confirm the continued existence of a small sample of your fixed assets to an exacting wall-to-wall physical inventory and reconciliation of the assets to your fixed asset accounting ledger.
Duff & Phelps maintains an IT consulting staff dedicated specifically to fixed asset management services, such as data and software conversions, as well as provides clients with access to their data via the internet. Our proprietary ePRAIS® system is in accordance with SOC 1.
I want to see how my assets are being used and who is using them. Our fixed asset inventory and reconciliation service provides a wall-to-wall inventory of all fixed assets to ensure they are properly captured on your accounting records, assistance in identification of those assets that are no longer on hand (unrecorded retirements) and validation of the historical book value of assets for use on financial statements. All assets can be tagged with a bar code to facilitate tracking and to simplify subsequent inventory verification.
Other services In addition to the fixed asset inventory and reconciliation services described above, Duff & Phelps also offers useful life analyses, cost segregation studies, property management diagnostic consulting and property insurance valuations. These services are designed to address financial reporting and property management standards, income and property tax issues, as well as regulatory compliance, including Sarbanes-Oxley and various Office of Management and Budget Circulars.
I want to see numbers that do not raise red flags. The one universal truth about fixed asset accounting records is that over time inaccuracies will accumulate, thereby undermining the reliability of this critical management tool. You invested a significant amount of time, effort and money in the creation of your fixed asset accounting record. Duff & Phelps can help you perpetuate that investment through the provision of fixed asset outsourcing services.
For more information please visit: www.duffandphelps.com About Duff & Phelps Duff & Phelps is the premier global valuation and corporate finance advisor with expertise in complex valuation, dispute and legal management consulting, M&A, restructuring, and compliance and regulatory consulting. The firm’s more than 2,000 employees serve a diverse range of clients from offices around the world. For more information, visit www.duffandphelps.com. M&A advisory and capital raising services in the United States are provided by Duff & Phelps Securities, LLC. Member FINRA/SIPC. Pagemill Partners is a Division of Duff & Phelps Securities, LLC. M&A advisory and capital raising services in the United Kingdom and Germany are provided by Duff & Phelps Securities Ltd., which is authorized and regulated by the Financial Conduct Authority.
Duff & Phelps
Copyright © 2016 Duff & Phelps LLC. All rights reserved. DP160042
