IT Equipment

Summary
Definition IT equipment comprises assets purchased or leased to enable Council to function in the provision of computing, telecommunication and networked device services.
Assets in this class will be individually identified and accounted for in the Authority Assets module. Sub groups include Desktop and Server computers, Telecommunications, Mobile Computing equipment, Digital Cameras and Networked devices.
Desktop computers are leased assets but are recorded and managed in a similar way to purchased assets. Some network devices (printer/copiers) are also leased but most other IT equipment, including Server Computers, are purchased.
IT equipment does not include software (which is expensed on purchase).
Quantity There are 680 items of equipment registered. IT equipment currently does not include leased computers but is required to do so for the purpose of managing the assets while leased. The module also includes disposed items and therefore a stock-take is required to ensure the module’s accuracy.
Value The asset module has $4.5m recorded as the historical cost of IT equipment, however as many assets have been disposed or replaced, the cost figure is not considered to be accurate for the current stock of IT assets. This figure can only be more accurately determined through a stocktake process.
Asset Condition There is no process for assessing the condition of IT equipment. However as this type of asset is either replaced due to obsolescence or is kept in good condition by users, it is expected that the overall condition of the class is very good.
Key Assumptions A separate plan is required for IT equipment due to the way it is managed (separate Business Unit ownership) and the fact that a large number of items are leased.
Data Protocol
Key register All IT equipment will be registered in the Authority Asset module. The data is not viewed or used in any other system.
To facilitate the management of these assets, leased equipment is to be defined in the asset module by an ownership code. All items of IT equipment, regardless of value, are to be recorded in the asset module.
Implementation of Barcoding audit is required to audit the existence and location of IT equipment. It is proposed to attach a barcode to all IT equipment, including leased PC’s, and to then use a barcode reader to complete a stocktake of the equipment as well as update Authority Asset Module with the location of the items.
Data use for AM The data is used for AAS27 reporting and for accounting for the assets in terms of what is owned or leased, where they are located and who is responsible for them.
Data maintenance protocol The Financial Accountant is responsible for recording all assets in this class in the assets module. The Purchasing Officer is to provide details on purchased assets and the IT unit is to provide details of leased IT equipment to the Financial Accountant.
The process for updating the asset module when assets are disposed of is not consistently managed within this class. There is also no provision within the Authority module to define the status of assets as being in-service or disposed of.
Financial Provisions
Budget projections for new works The current determination of the IT equipment budget requirements is not based on an understanding of the current stock of equipment.
The process will be revised once an audit of IT equipment is complete. Estimates for replacement/upgrade of equipment will be based on the listing of equipment with expected remaining life.
Funding Strategy N/A
Levels of service Levels of Service are defined in the ?? Service Level Agreement .
Links to Strategies & Plans IT Strategy and Infrastructure Strategy (being developed)
Future Demand Are being defined in the above strategies.
Maintenance
Maintenance Standards
Levels of expenditure Principles and methods of maintenance are being defined in the above strategies.
The IT business unit staff conduct or organise IT equipment maintenance.
The cost to maintain printers, servers, and network equipment is approximately $50,000 per year
Practices, Policies & Standards IT Security and User Access Policy
Risk Management There is a considerable risk of loss of IT assets due to their valuable and portability. Without an up-to-date register and efficient means of auditing the existence and location of equipment, the security of the assets cannot be managed effectively. The proposed audit and barcode scanning improvement plans are intended to address this risk. It equipment will be assigned to Business Units for ownership of the assets to also improve security of the items.
Another form of risk associated with IT equipment is technical obsolescence. To minimise this risk, major items are provided with a three year maintenance agreement to ensure that they continue to operate during the expected service life.

Suggested Plan improvements
Asset module
1. Develop bar-coding processes to
• Prepare equipment data for loading asset data
• Audit existence and location of equipment recorded in the Asset Module. Jack Jansen October 03
2. Define data requirements for IT equipment with barcode number, location and equipment data in Asset Module Asset Co-ordinator
October 03
3. Investigate/develop process to up-load Asset data into Authority. Jack Jansen/ Asset Co-ordinator November 03
4. Investigate/develop process to up-load bar-code audit data into Authority Jack Jansen/ Asset Co-ordinator November 03
5. Conduct of stocktake of IT equipment and update assets Module Jack Jansen February 04

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