Asset Management Case Study for Immigration and Customs Enforcement (ICE)

Published Aprill 2011

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Challenge

The Immigration and Customs Enforcement (ICE), the largest investigative arm of the Department of Homeland Security, was faced with the daunting task of having to streamline its approach to asset and portfolio management. The Agency was experiencing difficulties accounting for its assets including portfolio analysis, conducting facilities condition assessments, asset pricing and valuation, planning and reporting, tracking of supporting real property documentation (e.g. architectural drawings), and providing timely, accurate real property data for its consolidated financial statements.

Solution

Federal Management Systems, Inc. (FMS Inc.) was able to efficiently and accurately monitor all of ICE’s assets and provide a focused and strategic oversight of the Agency’s vast portfolios. FMS Inc. trained ICE’s staff in all aspects of real property management including how to conduct site visits for condition assessments, assessing environmental factors and local economy impact on property values, real estate market analysis and property valuation to determine adequacy of rates and charges. Our professionals analyzed information on the number, values, and characteristics of ICE’s real properties and other assets as necessary to assist with planning and usage strategies. We also developed a central database repository for real-time management of all of ICE’s asset management data. Our database generated various weekly and monthly reports for ICE including management and operational reports on transactions, valuations, and portfolio characteristics such as duration and geographic characteristics; Repair and Alterations (R&A) Reports, Operations and Maintenance Reports, Facilities Management Reports, Rent Expenditures, Space Utilization by Location, Cost per square foot/capita, Expiring Leases etc. We developed a standard operating procedures manual for leasing acquisition and portfolio management for use by ICE staff. The asset/portfolio management training material and courses we developed for approximately 50 of ICE’s asset management staff proved invaluable.

Results

FMS Inc. was able to provide ICE’s auditors with a financial accounting of all the records for their entire asset portfolios, including the market value of all assets contained in them, in accordance with applicable GAAP. We were able to provide necessary staff and other resources to the auditors to support the ICE officials responsible for the Agency’s budgetary and other accounting functions and in the preparation of the entity’s consolidated financial statements. Our comprehensive solution to asset management services for ICE covered approximately 400 projects/portfolios in excess of 2.9 million square footage, valued at $427 million, and impacting more than 8,600 of ICE’s staff. Additionally, we provided financial analyses and strategic management support for 18 capital investment projects for ICE valued at over $47 million.