diff --git a/app/models/host.rb b/app/models/host.rb
index 95898446cb4..3ebe9bdfe9f 100644
--- a/app/models/host.rb
+++ b/app/models/host.rb
@@ -143,6 +143,9 @@ class Host < ApplicationRecord
   virtual_total :v_total_vms, :vms
   virtual_total :v_total_miq_templates, :miq_templates
 
+  scope :active,   -> { where.not(:ems_id => nil) }
+  scope :archived, -> { where(:ems_id => nil) }
+
   alias_method :datastores, :storages    # Used by web-services to return datastores as the property name
 
   alias_method :parent_cluster, :ems_cluster
diff --git a/app/models/miq_server.rb b/app/models/miq_server.rb
index 269251a4c90..ed7138fff32 100644
--- a/app/models/miq_server.rb
+++ b/app/models/miq_server.rb
@@ -488,15 +488,9 @@ def self.zone_is_modifiable?
   end
 
   def self.audit_managed_resources
-    total_vms     = 0
-    total_hosts   = 0
-
-    ExtManagementSystem.all.each do |e|
-      vms     = e.all_vms_and_templates.count
-      hosts   = e.all_hosts.count
-      total_vms += vms
-      total_hosts += hosts
-    end
+    total_vms   = VmOrTemplate.active.count
+    total_hosts = Host.active.count
+
     totals = {"vms" => total_vms, "hosts" => total_hosts}
     $audit_log.info("Under Management: #{totals.to_json}")
   end
diff --git a/spec/models/miq_server_spec.rb b/spec/models/miq_server_spec.rb
index 36ea148d20b..7563ccfc49a 100644
--- a/spec/models/miq_server_spec.rb
+++ b/spec/models/miq_server_spec.rb
@@ -464,4 +464,19 @@
       expect(described_class.zone_is_modifiable?).to be_falsey
     end
   end
+
+  context ".audit_managed_resources" do
+    let(:ems) { FactoryBot.create(:ems_infra) }
+    let!(:active_vm) { FactoryBot.create(:vm_infra, :ext_management_system => ems) }
+    let!(:archived_vm) { FactoryBot.create(:vm_infra) }
+    let!(:active_host) { FactoryBot.create(:host, :ext_management_system => ems) }
+    let!(:archived_host) { FactoryBot.create(:host) }
+
+    it "with active and archived vms and hosts" do
+      expected_message = "Under Management: #{{"vms" => 1, "hosts" => 1}.to_json}"
+
+      expect($audit_log).to receive(:info).with(expected_message)
+      described_class.audit_managed_resources
+    end
+  end
 end