 |
|
home
>
professional consulting services
>
financial management
consulting >
replacement reserve
fund audits |
|
 Fleet
replacement is a complex, multi-faceted
undertaking that can involve millions of
dollars annually. A properly designed and
administered replacement reserve fund brings
many distinct advantages to the fleet
operation. It can enable the organization to
avoid the higher costs and diminished
service levels that often creep in when the
organization relies on ad hoc appropriations
and best guesses on funds availability. It
can also separate the process of fleet
replacement from the organization’s annual
budgeting wars.
Mercury’s consultants are experts in both
designing replacement funds and in auditing
their solvency and adequacy to meet your
future replacement purchasing needs. This
type of audit is important particularly for
fleet organizations that serve the public
sector. These organizations must demonstrate
responsible stewardship of public funds,
maintenance of an adequately sized
replacement reserve fund, and compliance
with regulations such as the federal Office
of Management and Budget costing guidelines. |
|
|
In addition to providing objective, unbiased
certification of the replacement reserve
fund’s solvency, Mercury’s replacement
reserve fund services can: |
|
|
 |
Recommend
the proper level of internal lease
charges that build up the reserve fund
by spreading each vehicle’s true capital
costs over its expected service life. |
|
|
Analyze
and project fleet replacement funding
needs over several years and design the
cash flow that matches year-to-year
funding requirements so that the fund
remains solvent without accumulating a
large cash balance. |
|
|
|
Mercury
Associates, Inc.
Professional Fleet Management Consultants
16051 Comprint Circle
Gaithersburg, MD 20877
301 519 0535 Office
301 519 0536 FAX
email:
contactme@mercury-assoc.com
|
|
|
Fleet Management
Consulting Services and Business Solutions,
Simplified ™ |
|
© 2006 Mercury
Associates, Inc. |
|
|
|
|
