Asset Register. 1.2 Definitions

Transcription

1 Asset Register 1.2 Definitions Asset is something that is owned by the business that can be converted to cash. Asset management is the system that monitors and maintains the assets of the business. 1

2 A4 Example Asset Register How to use this template? Use this template to record in all of the information relating to any assets (e.g. land, buildings, plant and equipment) that are owned by your business with a value of over a minimum level (e.g. $500 or $1,000). The suggested steps in using this template are as follows: 1. Finance staff should work with operational staff to draw up a list of all potential assets. 2. One person should be chosen to travel around the worksite to find each of these assets and confirm that they exist and are in good condition. If so, they should be entered onto the register. 3. The location of the asset should be recorded on the register. 4. An asset number should be allocated to each asset. This is normally attached to the physical asset with a sticker. 5. Your finance staff or your accountant should keep track of the net book value of the assets by allocating an annual depreciation charge. 6. Responsibility for keeping the register up-to-date for any purchases or asset sales should be allocated to an individual. 7. Annual checks should be made to confirm that the assets still exist and are still located as per the information held on the register. This check should be undertaken by a different person than is normally responsible for keeping the asset register updated to minimise the risk of fraud or theft. Asset Register Organisation - xxxxx Month - xxxx Year - xxxx Asset number Description of asset Current location Purchase date Purchase price $ Depreciation to date $ Net book value $ (purchase price less depreciation) Date last verified Toyota Landcruiser, Rego ABC 123 Office 12/11/13 $65,000 $10,000 $55,000 12/01/12 2

3 E6 Example Financial Procedures Asset Management Procedures How to use this template This document is an example of the procedures that an Indigenous business could introduce to assist in the managing its fixed assets. It is important to note that the nature and complexity of such financial procedures may vary depending on the specific financial risks in the business and the size of the company concerned. However, this template procedure provides an example that a company can then tailor to their own needs. Note - This document is an example and may not be appropriate for all businesses. Procedural Instructions Asset Management 1) Basic Asset Management Procedures 1.1) Management should allocate responsibility for the management of assets to an individual finance clerk overseen by a supervisor. The fixed asset clerk should not be the person who undertakes any asset reconciliations or verification checks. 1.2) Management should develop or purchase an asset register (a small company may use a spreadsheet while a larger company may wish to purchase bespoke asset management software) that records basic information such as: Asset description; Asset number; Asset location; Purchase date; Purchase price; Depreciation; and Net book value. 1.3) Sequential asset identification numbers should be allocated to each asset. Where possible 3

4 Procedural Instructions Asset Management this number should be physically attached to the asset through an asset sticker / tag. 1.4) The fixed assets clerk should not make general ledger entries in respect of any asset additions and disposals. 2) Purchase of assets 2.1) Staff should complete a New Asset Form which records key information in respect of the new asset such as, asset description, purchase price, purchase date, useful life, depreciation rate, asset location etc. 2.2) All new assets should be tagged when received. 2.3) The new asset should be entered onto the Asset Register on a timely basis. 2.4) Finance staff should ensure that all asset additions are properly valued. 2.5) Ensure that all capital asset purchases are authorised prior to addition to the asset register. 3) Disposal of assets 3.1) Where an asset is to be sold or disposed of, the fixed asset clerk should complete an asset disposal form that is signed off by the Finance Manager. 3.2) Where an asset has been sold or disposed of, the asset register should be updated by the fixed asset clerk. Following disposal, the fixed asset clerk should liaise with the finance staff responsible for general ledger entries to ensure that the correct entries are passed to the general ledger. 3.3) Any funds received as a result of asset disposal should be banked on a timely basis. The member 4

5 Procedural Instructions Asset Management of staff receiving the funds should not be the fixed asset clerk. 4) Reconciliations 4.1) The Finance Manager should oversee the regular (e.g. Monthly) reconciliation of the Fixed Asset Register and the General Ledger. This reconciliation should not be undertaken by the fixed asset clerk. 4.2) Physical checks of assets against the asset register should be performed on regular basis (e.g. quarterly). The physical asset check should be undertaken by an officer that has not been involved in the asset management process during the period under review. 4.3) A physical check of assets against the asset register will be performed when a new person takes over the position of fixed asset clerk. 4.4) Any missing assets that are identified as a result of the physical asset check should be logged in a missing asset log. These missing assets should be followed up and located on a timely basis. The follow up work should not be undertaken by the fixed asset clerk. 5) Asset Security 5.1) Assets should be protected through use of physical security protection measures such as locks on premises, the use of security cameras and retaining a security service. 5.2) The Company should take out insurance to cover the potential loss or damage to their fixed asset portfolio. This insurance coverage should be reviewed each year for its continued appropriateness. 5.3) Small items that have significant value should be kept in a safe or locked cupboard where possible. Where this is not possible (e.g. laptops) the assets should be secured to the desk. 5