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IGF JOURNAL
VOLUME 25, NO. 2
THE INTERNAL ATOMIC ENERGY AGENCY’S PROPERTY, PLANT AND EQUIPMENT (PP+E) LIFECYCLE FRAMEWORK
was the depreciation rate reasonable?
If not in use, are there opportunities to
monetize these assets through disposal
or re-purposing within the organization
(or sister organizations). Thus, the
PP+E Framework and a good Fixed
Asset system can help to bring some of
the private sector cash-flow discipline of
asset management to the public sector.
Governance, Systems and Audit
The framework rests on good organiza-
tional governance. This includes execu-
tive championship, systems to support
the information, effective internal con-
trols and trained individuals who sup-
port each step. The PP+E Framework
provides a structure so organizational
metrics can identify what is working well
and what needs improvement.
EVERYDAY USES FOR A PP+E
FRAMEWORK
In 2011, the PP+E Framework allowed
the Agency to see a distributed and
technical set of activities from a lifecycle
and holistic perspective. The framework
and systems the Agency implemented
provide the basis to not only meet its
IPSAS reporting obligations but also
provide useful operational information
to review and improve how assets are
used in the IAEA’s two core mandates.
Beyond the IAEA, public-sector organi
zations can adapt the framework to
manage their assets, the benefits of
doing so include:
•
Oversight and Governance:
Because
no one is responsible for all the steps
of the lifecycle, the PP+E Framework
allows the organization to see the vari-
ous processes from a holistic perspec-
tive. Existing metrics can be used (e.g.
time to “Procure to Pay”) or new ones
established (e.g. percentage of assets
not used in the past 12 months).
•
Silo-Reduction:
One man’s output
is another’s input; effective and
efficient asset management relies
on this maxim. For example, can
the time to receive, tag and deploy
assets be reduced by capturing better
information on a purchase order?
•
Training and New Staff:
With a few
exceptions, IAEA recruits professional
staff for a maximum of seven years.
After this time, an individual must
leave the Agency. Because of this rule,
a portion of the Agency staff turns
over each year. Even without a seven-
year rule, most Canadian public sector
organizations are facing a looming
retirement bubble. The PP+E
Framework can help to structure
the asset related knowledge of your
greying workforce before they leave.
•
Documentation of Process:
Like
training, documentation works best
when it is placed and managed in
context. The PP+E Framework
does this by organizing and
sequencing process and procedure
documentation. Once organized, the
entity can focus on identifying and
filling documentation gaps.
AN AUDIT OF A THOUSAND
ASSETS STARTS WITH A
SINGLE FRAMEWORK
It is 10amandwith the PP+EFramework
you can know where your assets are!
Before implementing the framework,
here are some important lessons from
the IAEA:
• Ensure you have good executive
level support for using a lifecycle and
holistic methodology.
• Create your own PP+E Framework
by seeking the input and buy-in of the
individuals involved in the day-to-day
assets management functions.
• The framework will evolve as
technology, people, assets and business
imperatives change. Be flexible and
proactive in managing these changes.
If you would like more information
on any of the ideas presented in this
article, be sure to visit the “director’s
cut” of this article (and other articles) at
.
SIDE BAR – ATTRACTIVE
ASSETS
Attractive asset are items below the
capitalization threshold that tend to grow
legs. Alternatively, they may be small
items that the organization needs to track
such as secure memory sticks. Relative
to their value, they often consume an
inordinate amount of organizational time.
The challenge of managing these assets
is developing a flexible definition (this
sidebar) and then using the definition
to start tracking the items. The specific
examples provided will change over time.
Adapted from the IAEA internal policy
paper.
The following categories of
attractive assets are items whose value
Description
Items for Which there is a Market, Comments
and Current Examples
Still or video imaging equipment.
Examples: digital, video or security cameras.
Electronic or mechanical devices, which can be
connected to computers, or used in an office
setting. Examples: printers, scanners, data transfer
devices and postage meters.
Devices used for large group presentations and
which may be converted for personal use. Examples
include televisions, radio receivers, projectors,
personal entertainment equipment and speakers.
Electronic or mechanical devices used for secure or
unsecure communication. Examples: smart phones
and two-way radios.
Maintenance equipment. Examples: hand and
power tools, GPS systems, storage steps, electrical
or air supply devices.
Restricted, law enforcement, military and security
equipment, including restricted firearms and
ammunition.
Camera and Video
Equipment
Computer Peripherals and
Office Equipment
Communication and
Entertainment Equipment
Tools or Equipment
Restricted Police and
Security Tools
