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Asset Management Financial Procedure

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Section 1 - Overview

(1) The objectives of these procedures are to:

  1. Provide guidance on the definition of an asset and asset classes
  2. Clarify what costs are to be included when recognising an asset including bulk purchases and construction costs
  3. Define useful life and provide a range of appropriate useful life ranges by asset class
  4. Define the responsibilities of all staff in asset management
  5. Set out the requirements for subsequent measurement and review of assets
  6. Outline the procedure for the acquisition, transfer and disposal of assets
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Section 2 - Scope

(2) These procedures apply to the Asset Management Rule.

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Section 3 - Procedures

Key features of an asset

(3) The key features in determining whether an asset exists are:

  1. Control — the University must have the power to obtain future economic benefits of the resource and restrict access to those benefits by others. Ownership of the resource will usually constitute control but is not essential.
  2. Past event — in most cases the past event will involve the purchase or construction of an asset but may also include transfer or donation of an asset from another entity.
  3. Future economic benefits — use of the asset will realise economic benefits in accordance with the University's objectives by generating sales, cost savings or other benefits. The benefits that flow to the University go beyond one year.

Asset classes

Asset class Definition Examples (not a definitive list)
Land Freehold land Campus grounds, farmland
Buildings All Structural components of a property both internal and external of a purchased or constructed building Education facilities, accommodation colleges, storage sheds
Infrastructure Long-life physical facility or structure essential to the operation of a network or system Water and sewage supply systems, electricity or gas supply systems, lighting, roads, car parks, footpaths, cabling and communications, retaining walls.
Plant and Equipment Mechanical, electrical or technical in nature Teaching, research or laboratory equipment, air conditioning units, security cameras, boats, multifunctional devices
Computer equipment Computer hardware Servers, laptops, desktops, phone networks, AV equipment
Motor Vehicles Any self-propelled vehicle to transport across land, and include commercial or passenger vehicles Cars, trucks, utilities, vans, motorcycles, ride-on mowers, tractors, trailers, forklifts, quad bikes
Furniture and fittings Moveable items with no permanent connection to the structure of the building or utility Office furniture, partitioning, shelving, compactus, carpet
Heritage and cultural assets Any relic, work, building, place or landscape with architectural, archaeological, social , cultural, technical, scientific or natural heritage signature Works of art, rare book, museum items
Work in progress Under construction, or in the process of being constructed, but yet to meet the recognition criteria of being in the location and condition necessary for it to be capable of operating in the manner intended by management Building under construction, computer equipment yet to be installed, internally generated software under construction, purchased software
Software purchased Software predominately purchased from an external provider without material changes and is not an integral part of computer hardware. This does not include software licences Call management software, expense management software
Internally developed software Software developed within the University or externally purchased software which has been materially changed Custom developed software, purchased software highly customised as to differ greatly from the original software
Other intangibles Identifiable non-monetary asset with no physical substance Water licence

Asset acquisitions

(4) Acquisitions of assets include those purchased, constructed or donated.

(5) For an asset to be recognised as a non-current asset, it must meet the definition of an asset and the recognition threshold. During the planning phase of an asset acquisition or capital project it is important to ensure all expenditure is able to be capitalised using the guidelines below and seeking advice from Financial Services Directorate. Some expenditure may need to be funded from an operational budget.

(6) All non-current asset acquisitions, other than those acquired by way of donation, are to be approved as part of the annual capital budget approved by Council or, if outside the budget cycle, by the Finance Committee or the Vice-Chancellor and Chief Executive Officer in accordance with the Schedule of Financial Delegations Rule. The funds for capital expenditure are to be released by the Vice-Chancellor and Chief Executive Officer and the Chief Financial Officer.

(7) A business plan, including full costings, is to be prepared and approved prior to the acquisition of non-current assets as part of a project.

(8) Equipment purchases above the recognition threshold and up to $50,000 do not require a business case but must be approved as part of the annual capital budget approved by Council, or by the Vice-Chancellor and Chief Executive Officer or Finance Committee if outside the budget cycle in accordance with the Schedule of Financial Delegations Rule.

(9) All non-current asset acquisitions are to be in accordance with the Procurement Policy and Procedures and the Schedule of Financial Delegations Rule.

(10) Asset acquisitions above the asset recognition threshold are to be recorded in work-in-progress using the appropriate capital expenditure natural account.

(11) Financial Services Directorate are to be advised of any assets donated to the University as soon as they are received to ensure they are recognised on a timely basis and covered for insurance purposes, where applicable.

(12) Financial Services Directorate will capitalise assets when they are in use or in a condition ready for use and record these items on the asset register.

(13) Assets purchased with research funds are to remain the property of the University.

(14) Assets purchased below the asset recognition threshold are to be expensed and may be required to be recorded on the Portable and Attractive Register (see Portable and Attractive Items).

Initial recognition of a non-current asset

(15) The value of assets can be measured reliably using the following methods:

  1. For purchased assets — the price paid for the asset and costs associated with getting the asset into the location and condition ready for use
  2. For constructed assets — the costs to construct the asset and costs associated with getting the asset into the location and condition ready for use
  3. Market valuation or expert advice where a market exists for the asset
  4. Use of estimation of cost or value where data is available on similar assets

(16) When an asset is purchased or constructed, the following costs are to be recognised:

  1. The cost to purchase the asset, including any duties or non-refundable taxes, less any discount or rebate
  2. Any other expenditure directly attributable in bringing the asset to the location or condition to be capable of operating in its intended manner, and
  3. An estimate of costs to remove or dismantle the asset at the end of its useful life or remediation expenses where there is a present obligation to do so, e.g. a leasehold improvement which requires removal or restoration at the end of the lease.

(17) When an asset is purchased or constructed, costs which do not directly attribute to getting the asset into the location or condition ready for use are expensed to the Statement of Comprehensive Income.

(18) The following table provides guidance on how to treat expenditure on a purchased or constructed asset: (Click here for table)

(19) Similar or like-natured assets which individually do not meet the recognition criteria are not to be grouped for capitalisation purposes unless they form a network or part of a network.

  1. The following are examples of networks for which costs can be capitalised:
    1. Computer network — includes the operating system in the client and server machines, cabling connecting the machines to other supporting hardware such as bridges, routers and switches.
    2. Leasehold improvements — including wall construction, painting, cabling, carpeting, glazing, joinery, built-in desks, cabinets and work-stations.
  2. For a part replacement of a network, such acquisitions are to be capitalised, when and only when they extend the useful life or improve the original operating condition or performance of the existing network and the cost is material.

(20) Each part of a non-current asset which has a significant cost component relevant to the total cost and with materially different useful lives and/or residual value is to be recognised separately.

  1. Land and buildings purchased together are to be recognised separately. Land has an indefinite useful life and is not depreciated and the building has a finite useful life and will be depreciated over time.
  2. Constructed buildings may be recognised as separate significant assets due to the different useful lives of components, e.g. computer networks, lifts, air-conditioning systems, security systems.

(21) An asset made up of physical and intangible components will be recognised as a physical asset if the intangible component is integral to the asset and cannot be separately used or disposed. Examples of such assets include:

  1. Computer hardware which comes with loaded software
  2. Security systems with such physical assets as cameras, computer and alarms and an intangible asset of software to run the system.

(22) On recognition of a non-current asset, the useful life of the asset needs to be determined. This is the length of time the asset is expected to be in use by the University.

  1. Factors to consider when determining the useful life of an asset are:
    1. The expected usage of the asset
    2. The expected wear and tear on the asset
    3. Technical or commercial obsolescence
    4. Legal or similar limits on the use of the asset, e.g. compulsory replacement due to safety reasons
    5. Past experience of the use of similar assets
    6. Planned replacement in the strategic asset management plan
  2. If more than one factor above is considered and different useful lives are arrived at, the shortest useful life is to be used.

(23) Any initial expenditure relating to an asset acquisition paid after an asset has been capitalised cannot be added to the asset and needs to be expensed to the Statement of Comprehensive Income unless the expenditure is an asset in its own right.

Expenditure subsequent to initial purchase or construction

(24) Expenditure for operating or maintenance of assets is to be expensed to the Statement of Comprehensive Income even if the expenditure is greater than the recognition threshold. Operating or maintenance expenditure includes:

  1. Costs of repairs due to wear and tear,
  2. Any expenditure which restores an asset to its original functionality,
  3. Minor parts and consumables, and
  4. Costs to prevent deterioration or service interruption of the asset.

(25) Any expenditure which improves the original operating condition or performance of an asset, reduces running costs, extends the useful life or changes the use of the asset will be capitalised only if it meets the asset definition and recognition criteria.

  1. The following are examples of expenditure incurred subsequent to the initial purchase of an asset which may be capitalised:
    1. Refurbishments of an area with new paint, carpet, floor tiles, and/or in-built furniture which improves the overall effectiveness or output of the area,
    2. New landscaping works in a previously un-landscaped area that improves the functional use of the area, and
    3. A major upgrade of audio visual equipment.

(26) A major overhaul or refurbishment of an asset can be capitalised and added to the carrying amount of the existing asset if the expenditure meets the recognition criteria for that asset class.

(27) When an asset or part of an asset is replaced, the asset or part getting replaced needs to be derecognised. Any carrying amount is to be recognised as a loss on disposal.

Security of assets

(28) All staff are responsible for the security, care and protection of University assets. Every person who utilises property of the University should do so with the utmost care and consideration and in a manner which ensures the property is subjected to minimum wear and tear and safeguarded against theft and damage.

(29) The safeguard of equipment such as laptops, tablets, mobile phones and cameras is particularly important due to the confidential information they may contain. Steps must be taken to limit the risk of loss or theft, for example, not leaving these items unattended in public places or in motor vehicles.

(30) Each Head of School or Director is responsible for the security and care of all assets in their custody or their staff's custody.

Depreciation and amortisation

(31) Depreciation and amortisation are the systematic allocation of the cost of an asset over its useful life. It is the consumption of an asset according to its use; it is not a saving for purchase of future assets.

(32) All non-current assets with a cost, or other value, and a finite useful life are to be depreciated (physical assets) or amortised (intangible assets) using the straight-line method, with the exception of assets held for sale.

(33) The depreciable amount is expensed to the Statement of Comprehensive Income on a monthly basis in equal amounts until the cost or value of the asset is fully exhausted, the asset is held for sale or the asset is disposed.

(34) Depreciation and amortisation commence when the asset is first put to use or is held ready for use.

(35) The following asset classes are not subject to depreciation:

  1. Land, as it has an infinite life
  2. Heritage and cultural assets, as they have an infinite life, and
  3. Work in progress, as the asset is not yet in use or held ready for use.

(36) The depreciation rates are reflective of the useful life of an asset. The following table indicates the useful life range to be used for each class of non-current assets and the appropriate depreciation /amortisation rates :

Asset class Useful life Depreciation/amortisation rates per annum
Buildings 3 to 60 years 1.67% to 33.33%
Infrastructure 10 to 60 years 1.67% to 10.00%
Plant & equipment 5 to 15 years 6.67% to 20.00%
Computer equipment 3 to 15 years 6.67% to 33.33%
Motor vehicles 5 years 20.00%
Furniture & fittings 7 to 20 years 5.00% to 14.29%
Software purchased 5 to 15 years 6.67% to 20.00%
Internally developed software 10 years 10.00%

(37) A review of depreciation rates and ranges is to be undertaken by Financial Services on an annual basis to determine if they are appropriate. Assets fully depreciated but still in use may be reflective of inaccurate useful lives.

Stocktakes

(38) All assets recorded in the asset management system (asset register), except those subject to independent valuation in that financial year, and Portable and Attractive registers are to be verified annually by way of a stocktake.

(39) The stocktake process is:

  1. A list of assets from the asset register is sent to the custodian department from Financial Services along with instructions including timings of the stocktake and the documentation to be returned.
  2. The performance of the stocktake is to be undertaken by 2 persons (verifying officers), one of whom must be from the custodian department and one from Financial Services.
  3. A physical inspection of all assets is to be performed and matched to the list given. All assets are to be accounted for and the sighting or non-sighting recorded on the Asset Verification Report.
  4. Any intangible assets listed must be assessed to verify they are still in use and, for software, in accordance with the terms and conditions of the licence.
  5. Any discrepancies between the listing of assets and the physical inspection are to be investigated thoroughly to ascertain the reason for the discrepancy. All discrepancies are to be documented on the Asset Verification Report including the reason for the discrepancy.
  6. Discrepancies are to be treated as follows:
    1. Assets not sighted:
      1. Believed to have been disposed of by way of sale, obsolescence or destroyed, are to be derecognised.
      2. Due to suspected theft or misconduct are to be reported to University security and, where appropriate, the NSW Police immediately. The University Insurance Officer also needs to be advised for a possible insurance claim. The asset is to be derecognised.
      3. Believed to have been transferred within UNE are to be updated in the asset register with the correct location and custodian
    2. Assets sighted:
      1. But not listed are to be communicated to Financial Services to ascertain if they are to be included on the asset management system
      2. But are no longer in use due to obsolescence are to be disposed of and derecognised
      3. But are no longer in use due to being held for sale are to remain on the register until sold and no further depreciation is to be processed.
  7. Any assets to be derecognised will have an Asset Disposal Form completed. See the section on Disposal of Assets below.
  8. During the annual stocktake, in addition to verifying the existence of assets, all assets are to be assessed for:
    1. Impairment - see section Impairment below.
    2. Remaining useful life and residual value — see section Assessment of useful lives and residual value below.
Any impairments or amendments are to be recorded on the Asset Verification Report.
  1. The recorded details of assets needs to be reviewed for accuracy and any amendments included on the Asset Verification Report. These details will be updated in the asset register by Financial Services Directorate.
  2. The completed Asset Verification Report is to be signed by the verifying officers as true and correct, and returned to Financial Services by the due date stipulated in the stocktake instructions.
  3. Financial Services Directorate will ensure all information from the Asset Verification Report is updated in the asset register and a final listing sent out to all custodian departments for final verification. This final verification listing is approved by the Head of School or Director of the custodian department as true and correct and returned to Financial Services Directorate by the due date stipulated in the stocktake instructions.
  4. A final report detailing the results of the stock take for the University will be compiled by Financial Services Directorate and approved by the Director Financial Services.

Impairment

(40) All non-current assets, including work in progress, with a written down value greater than $5,000 are to be reviewed at least annually for impairment during the annual stocktake. When reviewing assets for impairment the asset needs to be assessed for indicators of impairment that would materially reduce the assets recoverable amount. The following are examples of impairment factors:

  1. An observable indication the assets condition or service potential has declined at a faster rate than expected
  2. Significant changes in the technological, market, legal or economic environment in which the University operates which has, or will have in the near future, an adverse effect on the University, or
  3. Any evidence of obsolescence or physical damage to the asset.

(41) If a custodian department is aware of impairment to a non-current asset during the financial year, they must advise Financial Services Directorate as soon as possible.

(42) The following are examples of impairment:

  1. A building is no longer utilised, as the course for which the building was used for, is no longer offered by the University
  2. Research equipment no longer used, or rarely used, as newer equipment embodying more advanced technology is in use
  3. Safety regulations have forced the closure of a building
  4. The asset is no longer used as it does not meet the environment standards required
  5. Computer hardware obsolete due to technology advancement
  6. Software which is no longer supported by an external party or internal resources
  7. Roadway is sagging indicating it will need to be replaced earlier than anticipated, i.e. before the end of the useful life, and
  8. Expenditure for a project funded by way of external funds in work in progress has now had the funding withdrawn.

(43) Impairment to assets highlighted as part of the asset stocktake is to be recorded on the Asset Verification Report.

(44) Financial Services Directorate will update the asset register for any impairment identified.

(45) In accounting for impairment losses, an impairment loss is recognised as an expense and a provision for impairment at the asset class level.

(46) If a revalued asset is subsequently written down due to impairment, the loss is first written off against any balance available in the revaluation surplus for that asset or asset class and any amount over the amount in the revaluation surplus is expensed to the Statement of Comprehensive Income as an impairment loss.

(47) For impaired assets, any future depreciation expense is to be calculated on the new carrying amount of the asset over the remaining useful life.

Valuation

(48) Regular valuations, at least once every 3 years, will be performed for the following asset classes to ensure the carrying amount of the assets reflect their fair value:

  1. Land
  2. Buildings
  3. Infrastructure
  4. Intangibles (only where an active market exists)

(49) Asset classes measured at cost are never to be revalued, even if fully depreciated. Useful lives are to be reviewed each year to ensure they are not fully depreciated whilst they still have service potential.

(50) Independent valuations are to be carried out by a suitably qualified person. All assets within an asset class are to be revalued at the same time.

(51) If indicators exist that the asset class has experienced changes of +/-20% in carrying amounts since the last valuation, an independent valuation is to be undertaken even if it is before the next valuation is due.

(52) When engaging an independent valuer, the Procurement Policy and Schedule of Financial Delegation Rule must be adhered to.

(53) The Director Financial Services is to engage a professional qualified valuer taking into account the expertise required for the asset classes and location of the assets to be valued.

(54) Instructions to the valuers must be in writing by way of a letter or contract for services and must include:

  1. The purpose of the valuation, e.g. disclosure
  2. The classes of the assets to be valued
  3. The location of the assets to be valued
Any material variations to the original instructions are to be confirmed in writing. Email is not considered appropriate for this purpose.

(55) The valuer should provide confirmation of acceptance of the engagement in writing of the terms on which they will be acting. This correspondence should include information on their fees, timing of payments and expense reimbursement arrangements.

(56) Asset information is to be provided to the valuers on a timely basis and should include:

  1. The identifying details of assets to be valued including
    1. Location
    2. Age
    3. Current valuation (or cost, as applicable)
    4. Physical attributes, and
    5. Current use
  2. Any legislative, contractual or other restrictions and details, e.g. heritage listings
  3. Details of any recent maintenance
  4. Details of any assets acquired during the financial year and amounts currently in work in progress

(57) The Director Financial Services is responsible for ensuring the valuation information returned from the valuers is a true and fair view. The information required from the valuer should include:

  1. The effective date of the valuation
  2. Statement on compliance with relevant accounting standards
  3. Any assumptions used
  4. Valuation technique used
  5. Data inputs used and their sources
  6. If unobservable data is used, the rationale for doing so and sensitivity analysis, and
  7. Reasons for any material changes in value for an asset or asset class.

(58) Prior to the end of the financial year, each asset class not subject to an independent valuation in that year will be reviewed internally to ensure the assets are still in use and are recorded at fair value. Relevant statistical data is to be used to determine fair value and asset values are to be updated only if the change is material.

(59) Land and Building asset classes are to be revalued at the individual asset level. Infrastructure assets are to be collectively revalued by type of infrastructure.

(60) In accounting for revaluations, any accumulated depreciation is to be netted off to the asset (buildings) or asset class (infrastructure) so the carrying amount is reflected in the asset natural account. Any increments or decrements on revaluation are to be accounted for as follows:

  1. First time revaluations
    1. Increments are to be recorded as an increase to the asset and an increase to the revaluation surplus.
    2. Decrements are to be recorded as loss on revaluation (expensed) and a decrease to the asset.
  2. Subsequent revaluations
    1. Increments are to be recorded as an increase to the asset and an increase to the revaluation surplus.
    2. Decrements are to be recorded as a decrease in the revaluation surplus and a decrease to the asset. Any decrement above the previous revaluation increment is to be recorded as a loss on revaluation (expensed)

(61) For revalued assets, any future depreciation expense is to be calculated on the new carrying amount of the asset over the remaining useful life.

Assessment of useful lives and residual value

(62) The useful life and residual value of all assets, with the exception of assets subject to valuation in that year, with a carrying value in excess of $5,000 are to be reviewed on an annual basis during the stocktake.

(63) The remaining useful life of the asset must accurately reflect the expected consumption of the asset.

(64) The residual value is to accurately reflect the expected amount to be received on disposal of the asset.

(65) Any changes to the useful life or residual value of an asset are to be recorded on the Asset Verificaiton Report and updated in the asset register. Future depreciation expense is to be adjusted accordingly.

(66) Adjustments to the useful life are to be made in the earliest year in which a change is deemed necessary. Delays will result in inaccurate depreciation expense being accounted for and could result in an asset being fully depreciated even though it is still in service.

Transfer of assets

(67) A transfer of an asset is the movement of a non-current asset from one part of the University to another.

(68) Any transfers are to occur at the carrying amount of the asset so the value of the asset to the University is unchanged.

(69) The School or department transferring the asset needs to advise Financial Services of the asset movement.

(70) Financial Services is to verify the movement with the receiving department or school and record the new custodian in the asset register.

Disposal of non-current assets

(71) Non-current assets are derecognised in the asset register when:

  1. They have been disposed, for example:
    1. Sold by way of auction, trade-in or tender
    2. Lost, stolen, or not found at stocktake
  2. No future economic benefits are expected from its use, for example:
    1. Scrapped due to obsolescence or physical damage
    2. Used for spare parts

(72) Assets, including portable and attractive items, are not to be gifted, donated or sold directly to any organisation or individual, including UNE academics, staff or students, unless prior approval is sought from the Director Financial Services. An application must be made to the Director Financial Services and be supported by the Head of School/Director of the custodian department before the disposal can take place.

(73) Before the disposal of computers or computer equipment, all University information and licenced software (including the operating system) must be removed. All traces of ownership by the University must be removed, including identification and asset labels or tags and engravings that may identify UNE as the original owner. Consult with the Information Technology Directorate for information on how to dispose of information technology equipment.

(74) Motor vehicles are to be disposed of by sale to a motor dealer or by way of auction after receiving quotes for a selling price. To ensure a fair price is being quoted, reference is to be made to appropriate websites detailing current market value, for example www.redbook.com.au.

(75) When an asset is sold and its selling price varies from its carrying value, less any pro-rata depreciation or impairment up to the date of sale, a gain or loss on disposal is recognised in the Statement of Comprehensive Income.

(76) When an asset is disposed of where no consideration is received, any carrying value is recorded as a loss on disposal and recognised in the Statement of Comprehensive Income

(77) Any material costs incurred in selling the asset is to reduce the gain or increase the loss on disposal.

(78) When an asset which was previously revalued is sold or otherwise disposed of, the net increment in the revaluation surplus is to be moved to the accumulated surplus/deficit

(79) An Asset Disposal Authority form is to be completed for all assets disposed, including portable and attractive items (see the section Portable and Attractive Assets). This form is to be signed by the Head of School or Director. For assets on the UNE Asset Register, the form is submitted to Financial Services Directorate. For assets on the Portable and Attractive Register, the form is held in the School or Directorate and maintained for audit purposes.

(80) The carrying amount (written down value) of the asset is used to determine who has the delegation authority to approve the asset disposal.

(81) For the physical disposal of assets, other than information technology assets, consult Facilities Management Service Directorate.

Portable and attractive assets

(82) Assets purchased which do not meet the recognition threshold but are deemed to be portable and attractive are to be recorded on a Portable and Attractive Register maintained within the individual School or Directorate responsible for purchasing the item. See Portable and Attractive Register on the intranet.

(83) Portable and attractive items are non-consumable items which are susceptible to theft or loss due to their nature and attractiveness for personal use or resale. Only items above $300 in value and deemed to be portable and attractive are to be recorded. Examples of portable and attractive times are:

  1. Laptops
  2. Tablets
  3. Mobile Phones
  4. Cameras
  5. Projectors

(84) Each School or Directorate is to nominate a person within their area who will be responsible for the register and inform the Assets Officer in Financial Services Directorate. The Head of School or Director is responsible for ensuring the register is kept up-to-date at all times.

(85) The Head of School or Director is to ensure adequate controls are in place to safeguard portable and attractive assets from theft, loss and damage.

(86) The register must be updated whenever a portable and attractive item is acquired, transferred to another user or disposed of.

(87) Items on the portable and attractive register are to be disposed of in accordance with this procedure (see the section Disposal of Assets) with the exception of the following:

  1. The Asset Disposal Form must be approved by the Head of School or Director and filed within the School or Directorate responsible and retained for audit purposes
  2. As these assets are fully expensed when acquired, no further accounting entries are required.

(88) Each School or Directorate must verify the Portable and Attractive Register annually by way of a stocktake at a time advised by Financial Services Directorate.

(89) The process for undertaking the stocktake is:

  1. The stocktake can be performed by one person but this person cannot be the person responsible for maintaining the register
  2. A physical inspection of all items is to be performed and matched to the register. All items are to be accounted for.
  3. Each item on the register is to be marked sighted or not sighted.
  4. All discrepancies are to be investigated to ascertain the reason for the discrepancy and documented for audit purposes, including Asset Disposal Authority forms to be completed for those believed to have been disposed of.
  5. The Portable and Attractive Register is to be updated for any discrepancies.

(90) Financial Services will undertake periodical reviews of Portable and Attractive registers and stocktakes. All documentation requested by Financial Services Directorate must be provided in accordance with the instructions of the Asset Officer, Financial Services Directorate.

Summary of roles and responsibilities

(91) All managers are responsible for:

  1. Ensuring the acquisition of assets is within approved budget (capital and/or operational)
  2. Adherence to the Procurement Policy and Schedule of Financial Delegations Rule
  3. Security and care of all assets in their custody and their staff's custody
  4. Consulting with Financial Services Directorate to ensure items are categorised as capital or operational expenditure during the planning stage of an asset acquisition
  5. Maintenance of the locally-held Portable and Attractive Register
  6. Stocktake of assets on both the asset and Portable and Attractive Registers within the timeframes required
  7. Documentation surrounding assets and the maintenance of registers
  8. Advising of any asset movements
  9. Completion and submission of required forms on a timely basis, e.g. asset disposal forms, and
  10. Disposing of physical assets with assistance from Information Technology Directorate or Facilities Management Service Directorate

(92) Financial Services Directorate are responsible for:

  1. Maintaining the Asset Register
  2. Ensuring assets are capitalised in accordance with Australian Accounting Standards, Treasury guidelines and legislation
  3. Coordinate annual stocktakes and reporting on stocktake results
  4. Reconciling the Asset Register with the General Ledger on a monthly basis
  5. Reconciling work-in-progress on a monthly basis
  6. Running of monthly depreciation/amortisation
  7. Advising Schools and Directorates on the application of this procedure
  8. Review of Portable and Attractive Registers
  9. Verifying and recording asset transfers
  10. Ensuring all asset transactions are in accordance with the Schedule of Financial Delegations Rule
  11. Provide management reports on assets as required
  12. Review depreciation/amortisation rates and ranges at least annually
  13. Ensure accurate recording and reporting of assets in the financial statements and provide evidence to support the reports, and
  14. Ensure assets are revalued when required and engage qualified valuers to undertake the valuations.

Authority and Compliance

(93) The Director Financial Services, pursuant to the University's Asset Management Financial Rule, makes these procedures.

(94) University Representatives must observe these procedures in relation to University matters.

(95) These procedures operate as and from the Effective Date.

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Section 4 - Definitions

(96) The following definitions will apply to this Procedure:

  1. Amortisation — the systematic allocation of the depreciable amount of an intangible asset over its useful life.
  2. Asset - a resource controlled by the University as a result of past events and from which future economic benefits are expected to flow to the University.
  3. Depreciation — the systematic allocation of the depreciable amount of a tangible asset over its useful life.
  4. Fair value — the price that would be received to sell an asset in an orderly transaction between market participants at measurement date.
  5. Impairment loss — the amount by which the carrying amount of an asset exceeds its recoverable amount.
  6. Non-current asset — an asset with a life of one year or greater.
  7. Portable and attractive - non-consumable items which are susceptible to loss or theft due to their nature and attractiveness for personal use or resale.
  8. Recoverable amount — the higher of an asset's fair value less costs to sell, and its value in use.
  9. Residual value — the estimated amount that would be obtained from the disposal of the asset after deducting any estimated costs of disposal.
  10. UNE Representatives - means a University employee (casual, fixed term and permanent), contractor, agent, appointee, UNE Council member and any other person engaged by the University to undertake some activity for or on behalf of the University. It includes corporations and other bodies falling into one or more of these categories.
  11. Useful life — the period over which the asset is expected to be available for use.