Asset Management Policy

Transcription

1 Asset Management Policy Issue Date: August 2011 Author: Head of Finance Approval Body: Senior Leadership Team

2 CONTENTS Page 1. Policy Statement 3 2. Scope 3 3. Definitions 3 4. Accountabilities and Responsibilities Governing Body Chief Executive Chief Operating Officer Head of Finance Deputy Directors/Heads of Faculty/Heads of School/ Heads of Department/Other Function or Budget Holders 6 5. Procedure for Implementation Capital Funding/Expenditure Ordering and Creating An Asset Delivery and Recording of Assets Capitalisation and Depreciation Security of Assets Fixed Asset Inventory Laptops, Mobile Phones and Other Portable Devices Disposal of Assets Intellectual Property Rights 13 APPENDICES Appendix 1 Capital Expenditure Request Form Appendix 2 Asset Disposal Form 15 Appendix 3 Asset Transfer Form 16 2

3 1. POLICY STATEMENT Belfast Metropolitan College (BMC) is committed to the efficient and effective management of its assets in order to ensure: Best use is made by the College of available resources The safe custody and security of the College assets Belfast Metropolitan College is bound by the Financial Memorandum issued by the Department for Employment and Learning. This policy has been developed taking account of the requirements of the Financial Memorandum. The Asset Management Policy and all related procurement procedures form part of the College s accountability, governance and management structures, and will be reviewed and updated regularly to ensure that it remains appropriate in light of any relevant changes to the law, organisational policies or the Financial Memorandum. 2. SCOPE This policy is applicable to the Governing Body, staff and any third parties employed by or used by the College. 3. DEFINITIONS Fixed Asset A Fixed Asset is any tangible asset purchased for use in the day-to-day operation of the College from which an economic benefit will be derived over a period greater than one year. Fixed Asset Threshold Purchase price greater than or equal to 3,000 (including irrecoverable VAT). Non-Capitalised Items Items which have an estimated useful life of one year or more where the monetary threshold is greater than or equal to 250 (including irrecoverable VAT) and less than the Fixed Asset Threshold of 3,000. These items will not be capitalised, but will be recorded in an 3

4 inventory for monitoring and tracking purposes. Fixed Asset Register Inventory Record A listing of the Fixed Assets of the College with a purchase price greater than or equal to 3,000 (including irrecoverable VAT). The register records a description of the asset, its location, cost, revaluation, estimated net value, estimated useful economic life, depreciation and also identifies those assets purchased using Capital Grant. The Fixed Asset Register is maintained by Finance. An inventory record is a register of capitalised and non-capitalised items which monitors quality, location, cost and status of assets. It is designed to promote efficiency and to safeguard the assets of the College. 4. ACCOUNTABILITIES AND RESPONSIBILITIES All College staff are expected to comply with the capitalisation principles and procedures contained in this document. The key responsibilities and accountabilities are set out below. 4.1 Governing Body The Governing Body is responsible for securing the efficient and effective management of College activities and property. It may delegate to an appropriate committee of the Governing Body or the Chief Executive such responsibilities as are required to ensure the efficient organisation of College business and activities. Specifically in relation to financial matters, the Governing Body is responsible for: The efficient, economical and effective management of the College s resources and expenditure, capital assets, equipment and staff, so that the investment of public funds in the College is not put at risk 4

5 4.2 Chief Executive The Chief Executive is responsible for: Ensuring the financial and operational administration of the College s affairs are in accordance with the Financial Memorandum issued by the Department for Employing and Learning Fulfilling the role of Accounting Officer Providing clear direction and visible senior management support for all capital initiatives Promoting, in conjunction with the SLT and relevant personnel, the College Asset Management Policy and Procedure through appropriate commitment and adequate resourcing Approving guidance and procedural documents for issue to staff 4.3 Chief Operating Officer The Chief Operating Officer is responsible for: Ensuring the College Asset Management Policy is adhered to Ensuring that all staff are aware of the College Asset Management Policy and related guidance, and ensuring it is reviewed on a regular basis 4.4 Head of Finance The Head of Finance is responsible for: Overseeing the effective and consistent operation of this policy Monitoring compliance with the policy and reporting as appropriate to the Chief Operating Officer and the Chief Executive Developing and implementing supporting procedures and guidelines 5

6 Providing both support and challenge to other managers in the discharge of their financial management responsibilities Ensuring appropriate accounting and financial management reporting systems are in place and are operating effectively. 4.5 Directors/Heads of Faculty/Heads of School/Heads of Department/Other Function or Budget Holders Directors, Heads of Faculty, Heads of School, Heads of Department and other Function or Budget Holders are responsible for: The care, custody and security of the buildings, stock, stores, furniture etc under their control Ensuring compliance with the policy and any associated procedures and guidelines operating within the College 5. PROCEDURE FOR IMPLEMENTATION 5.1 Capital Funding/Expenditure Capital funds are intended to meet expenditure on land and buildings, new construction and extension of, and alternations to buildings and the purchase of any fixed assets, eg equipment, furniture, plant and vehicles having a life expectancy of more than one year and having an initial value greater than or equal to 3,000 (including VAT). The routine maintenance and upkeep of buildings and other assets is not capital expenditure. In cases where accommodation and associated costs are procured under Private Finance Initiative/Public Private Partnerships and are off-balance sheet, service fees paid to the private sector contractor will be met from recurrent rather than capital funds and will be allocated as such. Capital funds will normally be subdivided as follows: 6

7 Grants for major capital works costing more than 1,000,000 (exclusive of fees, furniture and equipment, but inclusive of VAT) and for the purchase of the land and sites for capital works. Grants to cover minor building works costing between 250,000 and 1,000,000 (exclusive of fees, furniture and equipment, but inclusive of VAT). Grants for the purchase of equipment for education, training and administration including computers and the purchase of furniture. All minor building works on existing premises with a value less than 250,000 will be treated as recurrent expenditure and charged to maintenance and upkeep of buildings. Works with a value greater than or equal to 250,000 will be reviewed by the Head of Estates and the Head of Finance, and a decision taken as to whether or not the expenditure should be capitalised in line with this policy. All noncapital estates expenditure will form part of a planned estates work programme that will be presented for approval to the Finance and Resources Committee as part of the annual budget setting process. 5.2 Ordering and Creating an Asset A business case must be submitted prior to any request for capital expenditure. Business case templates are available on the intranet A capital expenditure request form should be completed and signed by the budget holder and forwarded to the Procurement Section along with the approved business case and request for quote to be sought in line with procurement regulations Capital request forms must be reviewed by the Head of Finance against the College s Capital Plan The Head of Finance will approve or reject the request dependent on business case approval and available funds. 7

8 If approved, the Procurement Section will proceed with procurement. Capital orders are subject to the financial thresholds listed in the Procurement Policy. 5.3 Delivery and Recording of Assets On delivery of goods, the purchase order requester must inform Procurement Section who will receipt goods and ensure correct register updated Invoices should be copied and sent to Procurement Section. 5.4 Capitalisation and Depreciation New land and buildings will be recorded on the balance sheet at actual build or acquisition cost, except where they are received as gifts, where they will be recorded at depreciated replacement value. Buildings will be depreciated in equal instalments over their estimated remaining useful life. Land will not be depreciated. Expenditure incurred on repair, refurbishment or extension of existing buildings greater than 250,000 will not be capitalised unless it can be demonstrated that the resultant value of the building, on the basis of depreciated replacement value, is greater than the current book value. Expenditure incurred on the acquisition of assets other than land and buildings will be recorded in the balance sheet where the acquisition cost per item is greater than or equal to 3,000 including irrecoverable VAT. Grouped items (eg a suite of computers) with an individual value of less than 3,000, but a group value of 3,000 or more, will not be capitalised. Capitalised assets other than land and buildings will be depreciated as follows: 8

9 Computer Equipment - 3 years Motor Vehicles - 4 years Plant and Equipment - 5 years Fixtures and Fittings - 5 years Where these assets are acquired with the aid of specific grants, the asset is capitalised and depreciated with the related grant being credited to a deferred capital grant account and released to the income and expenditure account over the expected useful economic life of the related asset. 5.5 Security of Assets The Principal and Chief Executive shall have overall responsibility to the College for security of College property. The Head of Finance shall be responsible for ensuring that there are adequate arrangements in place at all times for security of cash, cheques, title deeds, securities and other controlled stationery. The Head of Estates shall have a key role in implementing and ensuring appropriate and effective systems are in place to provide security of college facilities, plant and equipment including IT. Each Budget Holder shall be responsible for maintaining proper security of all furniture, equipment, plant, stores and all other assets of the College under his/her control, and for the maintenance of records in an approved format. The Principal and Chief Executive must be consulted in any case where security is thought to be defective or where it is considered that special security arrangements may be needed to avoid loss to the college. All movable property of the College shall as far as practicable be marked in an appropriate manner to indicate college property. 9

10 Maximum limits for cash holdings of petty cash and other cash in hand shall be agreed with the Chief Operating Officer and shall not be exceeded without express permission. Keys to safes and similar receptacles for the safeguarding of money or other valuables are to be carried on the person of those responsible; the loss of any such keys must be reported to the Head of Finance immediately. 5.6 Fixed Asset Inventory All assets should be inspected on an annual basis to confirm existence and condition. Each asset is currently numbered with a unique tag number reference and specified as to a room location and cost centre. All budget holders will receive a list of their fixed assets held on the Fixed Asset Inventory. They will be expected to identify and confirm that all assets on the list are still under their control, that the assets under their control are listed and that the information held is correct. Any reallocations or disposals of assets will require an Asset Disposal Form to be completed. Those sold will require an invoice to be raised or if auctioned, documentation of assets disposed of and sales note returned to Finance. Completed disposal/transfer forms will be used as evidence following the independent review by Finance to remove fixed assets from the control sheets and financial systems for disclosure in year-end accounts. If assets cannot be located, they should not be included on a disposal form. The fact that they cannot be located should be highlighted to Estates immediately. All losses should be advised to Finance. Estates will undertake spot checks on asset verification returns. 10

11 Finance should be notified of any repairs required to fixed assets and the normal procurement process followed. The inventory list is maintained by Estates for plant, machinery and equipment. Curriculum areas are responsible for small attractive items e.g. games consoles. 5.7 Laptops, Mobile Phones and Other Portable Devices Laptops, mobile phones and other portable devices are managed by IT Services. Allocation of laptops, mobile phones and other portable devices to an individual should be based on business need process and this should be considered in the business case approval. When a device is presented to an employee for everyday use, the employee will become the recorded owner and will be held accountable for the device whilst in their possession. Each device owner must sign a User Acceptance Form when the device is initially allocated to the employee by IT Services to ensure accountability and traceability of portable devices. In addition, a Device Return Form should be included within the leavers pack when an employee ceases employment at Belfast Metropolitan College. In addition, no equipment, other than that on loan from IT Services, shall be moved from any building to another without informing IT Services or Estates, who will record the changes to the inventory and confirm to Estates that the equipment may be moved. Where portable equipment (eg laptop computers, digital cameras or projectors) are on loan for a short term basis and the assets are transferred within and between Belfast Metropolitan College campuses, an Asset Transfer of Location Form should be completed and the inventory listings updated. 11

12 IT Services will carry out an annual stock control review of all portable devices across the College. 5.8 Inventory, Stocks and Stores Budget Holders are responsible for maintaining accurate inventories of all stocks of consumables for which they are responsible in the form approved by the Head of Finance. All inventory items shall be clearly identifiable against records. The Budget Holder is responsible for establishing adequate arrangements for the custody and control of inventories, stocks and stores within his/her control. Stocks shall not be held in excess of normal requirements. Budget Holders should ensure that an annual physical verification of records against stocks is undertaken. This should be done in liaison with the Finance and used to update financial records as appropriate. The College s External Auditors may attend a stock-take at the yearend. Inventories, stocks and stores shall be effectively safeguarded from any loss or damage. Stocks of a hazardous nature should be subject to appropriate security checks and fall within Health and Safety regulations. 5.9 Disposal of Assets Disposal of land and buildings must only take place with approval of the Governing Body and disposals should be carried out in line with the requirements of the Financial Memorandum taking into account guidance issued by the Central Advisory Unit (CAU) of the Land and Property Services (LPS). 12

13 It is College policy to dispose of assets which are at the end of their useful economic life. The College may have assets that are no longer required due to: Beyond useful life Lack of need Obsolescence Wear, damage or deterioration Excess cost of maintenance Assets that are no longer required will be deemed to be surplus and should be disposed of. The relevant budget holder must ascertain the status of the asset and notify the Head of Estates to co-ordinate its disposal. An Assets Disposal/Transfer Form should be completed and forwarded to finance in a timely manner. The Head of Finance must approve the disposal of all assets within the organisation. The disposal of computer equipment should be co-ordinated by the Head of IT Services through an approved contract (or appropriate framework contract) to take account of the various risks including data security, health and safety liability and responsibilities under the Waste Electrical and Electronic Equipment Regulations Intellectual Property Rights In accordance with the contract of employment all inventions, designs and written work which are undertaken during normal working time and/or with the resources owned by the College, belong to the College. 13

14 APPENDIX 1 CAPITAL REQUEST SUPPLIER INFORMATION Company name.. Address COST CENTRE PRODUCT CENTRE CODE SUB- ANALYSIS CODE. Postcode ANAYLSIS Reason for ordering/special arrangements/comments Contact name.. Telephone.. Fax Publisher. Schedule No or Catalogue No Description Of Item (Title) PURCHASE ORDER NUMBER Ordered by Date... Budget Holder... Date.... Delivery Contact Name & No. Head. of Finance... Date METHOD OF ORDERING.... MUST BE INVOICED Delivery Con BY BY BY POST FAX QUOTATION FORM ON REVERSE MUST BE COMPLETED Quantity Unit Price Discount (if Total Cost after Total Cost after Required applicable) discount EXC discount INC VAT VAT Asset set up by. Date... Postage and PO Entered by. Date Checked by. Date.. 14 packaging TOTAL COST

15 REQUISITION QUOTATION FORM Separate Order for Fixed Asset Capital Expenditure Available 1,500 10,000 3 Formal Quotations 10,000 30,000 4 Formal Quotations > 30,000 Public Advertisement Sole/specialist supplier (tick only if applicable) Description of Item (Title) QUOTATION 1 Name of company QUOTATION 2 Name of company QUOTATION 3 Name of company COMMENTS Cost exc VAT Cost exc VAT Cost exc VAT TOTAL COST BEST PRICE PLEASE TICK Signed. Date PERSON ORDERING Verified. Date

16 FIN/006/01 Asset Disposal Form APPENDIX 2 Status Description of Asset Location BMC Asset Number Serial No. if applicable Model/ Model No. Disposal Date Proceeds Reasons for Disposal Authorised by: (authorisation by HOD only) Date: Department: 16

17 FIN/006/02 Asset Transfer Form APPENDIX 3 Description of Asset Current Location BMC Asset Number Serial No. if applicable New Location Authorised by: (authorisation by HOD only) Date: Department: 17