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NORTHWOOD SHARED RESOURCE CENTER BOARD OF TRUSTEEs MEETING September 30, 2010

NORTHWOOD SHARED RESOURCE CENTER BOARD OF TRUSTEEs MEETING September 30, 2010 Policy Discussion on Purchase of Hardware and Software. Question?.

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NORTHWOOD SHARED RESOURCE CENTER BOARD OF TRUSTEEs MEETING September 30, 2010

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  1. NORTHWOOD SHARED RESOURCE CENTER BOARD OF TRUSTEEs MEETING September 30, 2010 Policy Discussion on Purchase of Hardware and Software

  2. Question? What are the policies and procedures for the Northwood Shared Resource Center to acquire additional hardware to meet the increased processing capacity needs of its customer agencies? The answer to this question is based on the decision for the following options.

  3. OPTION 1: • Customer agencies obtain non-recurring budget authority for the hardware and recurring budget authority for the increase in services (if required), • Customer agencies secure the funding source, • Customer agencies purchase the hardware and, • Customer agencies transfers the hardware to the NSRC. PROS: This is probably the easiest solution since it is normal operating procedure for all agencies CONS: Circumvents the BOT Approval Process; was not the intent of the legislature

  4. OPTION 2: • Customer agencies obtain non-recurring budget authority for the hardware and recurring budget authority for the increase in services (if required), • Customer agencies secure the funding source, • NSRC obtains same budget authority in a companion LBR/Budget Amendment, • NSRC purchases the hardware and bills for the purchase back to the agency and, • The agency journal transfers cash back to the NSRC WCTF PROS: The NSRC will own the hardware upon purchase; no asset transfer require Allows for the BOT to review and approve the hardware purchase CONS : Requires good planning between the NSRC and customer agencies Requires customer agencies to secure funding for data center hardware

  5. OPTION 3: • Customer agencies obtain recurring budget authority for the increase in services, • NSRC obtains same budget authority in a companion LBR/Budget Amendment, • NSRC leases the hardware and direct bills for the lease payments back to the agency, • The agency journal transfers cash back to the NSRC WCTF PROS: Alleviates the issues surrounding the purchase of hardware Allows for the BOT to review and approve the increase in lease expense CONS : Requires good planning between the NSRC and customer agencies Places the NSRC in the position of leasing rather than purchasing hardware Increases administrative time to direct bill lease activity back to agencies

  6. OPTION 4: • Customer agencies obtain recurring budget authority for the increase in services, • NSRC obtains same budget authority in a companion LBR/Budget Amendment, • NSRC leases the hardware and with the expense added to the total costs for services and bill back to the agencies based on use • The agency journal transfers cash back to the NSRC WCTF PROS: Alleviates the issues surrounding the purchase of hardware Alleviates the increase in administrative activities with the direct billing Allows for the BOT to review and approve the increase in lease expense Allows the NSRC to operate as a Shared Resource Center CONS : Requires good planning between the NSRC and customer agencies Places the NSRC in the position of leasing rather than purchasing hardware Increases administrative time to direct bill lease activity back to agencies

  7. Recommendation • Send the options back to the Finance Committee for further investigation • The Finance Committee will develop a policy and corresponding process to present at a future BOT Meeting.

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