Assets can become the legal responsibility of the University via various means, including but not limited to:

The following are required,regardless of acquisition method:

The above will also apply to significant items of maintenance expenditure where it is likely the expenditure could result in a new or significantly improved asset being created.

A risk assessment in alignment with the University’s Risk Framework, should be undertaken both prior to acquisition and deployment. This assessment is to be undertaken in consultation with affected stakeholders and end users in accordance with the following:

Significant asset acquisitions may require a PIR in accordance with the University Project Management Guidelines and the Benefit Realisation Review process of the Project Management Office (PMO). (refer to the Project Management Framework Procedure).

A responsible officer or staff position/s is to be nominated in each area (where necessary on a campus-by-campus basis) to have responsibility for managing the assets for that area, ensuring compliance with related procedures, performing stocktakes and being a local contact for the Head, Corporate Finance.

Asset managers/officers are responsible for ensuring:

All staff are responsible for the security, care and protection of University assets. Every person who utilises the property of the University should do so with utmost care and consideration and in a manner which ensures the property will be subjected to the minimum wear and tear and safeguarded against theft and damage. University assets may only be removed from University premises with appropriate approval.

The safeguard of equipment, such as PCs, laptops, tablets, mobile phones and cameras, is particularly important not only because of their attractive and portable nature but also because of the confidential information that they may contain. Steps must be taken to limit the risk of loss or theft including:

The University insures all assets subject to significant risk. However, all losses are subject to a deductible amount per claimed event. The excess amount is variable depending on the type of claim being made. A full Insurance schedule is available from the Finance Directorate. As a result, the University will only receive the insurance replacement value less the deductible amount.

Capitalisation Criteria

Recording of Assets in the Asset Register

The Finance Directorate must be advised of the details of any new asset $5,000 or more in value.

Individual Assets costing $5,000 or more and having a useful life of more than one year must be recorded in the Fixed Asset Register maintained within the Finance Directorate. These assets are depreciated over their useful life. Assets costing less than $5,000 are treated as 'non-capital' items and are expensed at the time of purchase but maybe included in the attractive and portable items register if they meet the criteria.

Individual Assets with a value of between $5,000 and $50,000 purchased with Research Grant Funds will be recorded on the Fixed Asset Register and fully depreciated on purchase. Individual assets with a value greater than $50,000 purchased with Research Grant funds will be depreciated over the life of the initial Research Project.

The account code used for all asset purchases will be provided by the Finance Accountant, who will verify these items and allocate them accordingly.

New assets purchased by way of an official University Purchase Order or payment made through the Accounts Payable system are automatically identified as part of the operational processing within the Finance Directorate. Assets received by way of donation, construction or purchased by University issued Corporate Cards with a value in excess of $5,000 must be the subject of advice from the nominated responsible officer within each Portfolio/ School or Section. An Asset Acquisition Form is available on the Finance Forms page.

General principles relating to the recording of assets are:

Measurement

A nominated Finance Officer is responsible for reconciling the Fixed Asset Register with the General Ledger asset accounts on a monthly basis. Any discrepancies arising are investigated and corrective action taken to bring the two records into balance.

Assets with tangible market value undergo regular valuation or re-valuation in accordance with Accounting Standards AASB116, during their remaining useful lives, to ensure that they reflect a true financial position. The cost model of measurement attributed to an asset must be applied across an entire class of assets and cannot differ among individual assets in a class.

Revaluations of classes of assets are conducted more frequently if, at balance date, the fair value of the asset differs materially from the carrying amount. Movements in the value of assets are transferred to the asset revaluation reserve for that class of assets.

A decrease in the value relating to a class of assets is recognised in the Statement of Financial Performance in the period it arises where it exceeds the increase previously recognised in the asset revaluation reserve. In subsequent periods, any revaluation surplus that reverses previous revaluation deficits is recognised as a credit to expenditure in the Statement of Financial Performance up to its original value.

The Head, Corporate Finance arranges for valuations, by an independent professional valuer, of land and buildings, investment property, artwork and precious objects. Any changes resulting from the periodic valuation are reflected in the Asset Register.

The approved methods of measurement by class of asset are:

Depreciation is the accounting process used to allocate the cost to particular accounting periods of 'using up' the service potential of the asset over its estimated useful life. The University depreciates those assets deemed to be depreciable on a straight-line basis over the estimated useful life of the asset.

The depreciation methods and rates currently applied by the University are:

Notes:

Loans to outside institutions and individuals - items lent to other organisations or individuals outside the University require adequate "all-risks" insurance to be taken out by the borrower and approval is required in accordance with Disposal of Assets under the Delegations - Contract, Financial, Staffing and Tender Procedure. All expenses associated with the removal and returns are at the cost of the borrower.

In authorising a loan or hire, the authoriser is declaring that the asset is not required for University purposes for the duration of the loan or hire period, or that the use required by the University can be accommodated under the terms of the loan or hire. Assets are valuable and must not be hired unless appropriate safeguards are in place.

University purposes must always have priority over external uses. Assets must not be lent for private use by staff, students or the general public.

Loans likely to exceed six months must be recorded on the University Asset Register and therefore advice needs to be provided to the Head, Corporate Finance. Loans under six months need only be recorded within the area of responsibility. A local "Register of Assets on Loan" should be maintained by each Dean/ Director for such purposes. It is suggested that at a minimum the following details need to be recorded:

A recommended spreadsheet format for an asset on loan register is available at the Finance Forms page.

Assets on loan are subject to periodic stocktake and their temporary return for this purpose may be required. Should a staff member holding an asset on loan leave the University then the relevant Dean or Director must ensure that the asset is returned prior to but not later than their last day of service.

Assets held off-campus - University assets may be installed/located off-campus if such location is justified and is approved by the relevant Senior/Deputy Vice-Chancellor, Vice Chancellor & President, Dean or Director. Persons removing items off campus and/or loaning items off campus are personally responsible for items under their control and are also liable for any loss or damage not recoverable from the University's insurers.

Recording of Tangible Assets - Portable and Attractive Items

Those assets deemed a “portable and attractive item” must appear on an Attractive Item Register. Items assessed as being high risk of theft or misappropriation, should be recorded e.g. portable and common use items such as tablets, mobile phones, cameras and printers, laptops and software. Each Institute or Directorate is to nominate a person within their area who will be responsible for the register.

Attractive Item Registers should contain sufficient information to enable positive identification of assets. It is suggested that at a minimum the following details need to be recorded:

Although portable and attractive items are assigned to a custodian, the item remains the property of the University at all times. The register must be updated whenever a portable and attractive item is acquired, transferred to another user or disposed of. 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.

Items on the portable and attractive register are to be disposed of in accordance with Section 6.5 Retirement of Assets in this document with the exception of the following:

Stocktaking

The physical counting of all stock that exists at a particular time allows us to compare figures to the stock records for the period of time covered by the stocktake. Conducting a stocktake allows accurate recording of what is actually on hand at each campus. There are 3 main ways that stocktakes are undertaken: a full and cyclical stocktake and a spot check.

The Head, Corporate Finance will coordinate stocktakes and provide appropriate documentation and support to facilitate a successful outcome. Such stocktakes will be subject to subsequent sample checking by delegated officers of the Head, Corporate Finance.

A stocktake of fixed assets appearing on the University Asset Register (cost $5,000 and over) are to be undertaken on a biennial basis. This will be coordinated by the Head, Corporate Finance.

A stocktake of portable and attractive items (value below $5,000) appearing on a local Attractive Items Register, shall be conducted on an annual basis by the nominated responsible officer within the Institute/Portfolio or Section. It is the responsibility of each operational area along with the assistance of the Head, Corporate Finance to conduct, and maintain records of the check for audit purposes.

Inventory and stock control for FedUni Living areas will be conducted on a monthly basis. This will be undertaken as Physical Stock on hand controlled through a POS system.

Preparation & Conducting of Physical Stocktakes

Planning

This step is the most important procedure in conducting a successful stocktake count. Planning involves establishing priorities, assigning responsibilities, problem solving, determining the inventory method and coordinating all activities. The inventory date and time is also determined and communicated to all involved.

Planning should include allocation of areas to be counted to individuals or teams of stock counters in order that a systematic approach is taken to ensure a full count.

Care should be taken to ensure that all stock to be counted is identified prior to the commencement of the physical count. This may include:

Control

Responsibility for the control of the physical stocktake count rests with the Dean or Director of each area. A finance nominated responsible officer will oversee the process to ensure that planning is carried out and that stock counters are aware of Procedures.

The nominated responsible officer will be responsible for co-ordination and completion of the physical inventory. All issues should be directed to the Head, Corporate Finance for resolution.

Before a physical stocktake commences, the nominated responsible officer will be issued with written instructions of stocktaking count procedures. They will also be given verbal instruction to reinforce the instructions and ensure that they know what is required including follow up procedures for resolving variances.

Instructions

Detailed stocktake instructions should be prepared and distributed by the nominated responsible officer to all involved in the count. These instructions will clearly define the roles and responsibilities of all involved in the count. A practice inventory counting session may be helpful to those who have not previously participated in a physical count.

Conduct of the Inventory Count

The Executive Dean or Director will secure staff to participate in the stock take count. This person will coordinate with the Head, Corporate Finance to ensure Finance Directorate staff are available to supervise the physical inventory and the follow up of variances.

On the day before the physical stocktake count, all stock will be checked to ensure that goods received are recorded in the relevant areas.

On the morning of the physical inventory the receiving area will be quarantined to ensure that any stock received is excluded from the count.

Staff conducting the physical stocktake will:

The responsible officer will ensure that:

Observation Tools and Supplies

If the manual method of stocktake is used; the nominated responsible officer will print stocktake count sheets; issue measuring instruments, clipboards, pens, and other items necessary to conduct the count. They will also determine how the stock or inventory will be listed i.e. by department using a standard spreadsheet, software package, alphabetical, by part name etc.

The Dean or Director or nominated responsible officer will ensure that prior to the commencement of the count all necessary preparation for the production of variances reports has been finalised.

Operations

The nominated responsible officer will:

The Dean, Director or nominated responsible officer will ensure that the receiving area is isolated during the period of the count. It is also essential that all deliveries from stocktake place the day prior to counting to ensure that only essential deliveries take place on the day of the count. All such deliveries should be documented and care taken to ensure that they are correctly recorded for the stocktake.

Organise and Clean

Organising materials in storerooms will assist in efficient counting. Like items should be grouped together and any excess storage locations noted. In the days leading up to the count the store should be cleaned, obsolete and damaged stock identified and items of stock which are to be included in the count identified.

Preliminary Stock Estimates

Prior to stocktake, estimate stock inventory levels in each area for comparison with the actual count in order to test the reasonableness of the count. This assists in exposing counting mistakes and avails counters the opportunity to take corrective action.

During the physical stocktake, the responsible officer should observe that all stock has been marked as counted and follow up with the count team if stock is not marked.

Once the count is completed, all stock numbers will be compared to the perpetual inventory from the relevant system. Variances will then be investigated by the re-counting of stock on the ground, and the verification of the records of receipts and deliveries to ensure that no counting or cutoff errors have occurred.

Obsolete Stock

Identify obsolete stock and make arrangements to dispose of or exclude it from the physical count. Goods that are to be excluded should be clearly marked and preferably located away from other stock or inventory.

Administrative Office Supplies and Equipment

Office supplies not used in production or not held for resale such as pencils, paper, boxes of tissues, disks, etc, expensed when purchased and excluded from any physical stocktake count.

Identify Potential Problem Areas

Stock might provide counting problems (an example might be stock stored on shelves above head level, heavy or hazardous material). Resolve these problems by planning ahead how to handle them and ensure that participants are familiar with the inventory to be counted.

Adequate Supervision

All counting activities are to be adequately supervised. The responsible officer should evaluate the progress of the count. Any adjustments made in the prearranged procedures should be documented. To ensure the accuracy and validity of the physical count, an independent third party other than the nominated responsible officer for the inventory, e.g. personnel from the Finance Directorate area should be involved to oversee the count and perform sample checks.

Audit Function

Spot comparisons are to be made by the responsible officer of the completed stock count sheet with the stock on hand. Errors are to be corrected and evaluated as a basis for possible expanded sampling. If a master inventory listing is available, the count sheet information should be compared to this record. Any discrepancies should be investigated and resolved.

Final Check

A final check by the responsible officer should be made before the release of an area to ensure that all stock, inventory has been included in the count and the area is safe to continue normal business.

Update Inventory

After all stock has been counted and discrepancies checked, two copies of a variance report will be copied by the independent party from the Finance Directorate overseeing the count. At this point, on the nominated responsible officer's authorisation, the stocktake will be closed and records updated to reflect the levels of the count.

The second report is to compare with the pre-stocktake, inventory valuation. The difference should match the total variance report.

Variance

A copy of the variance report and stock valuation report with “Stocktake Check List” attached is then forwarded to the Head, Corporate Finance by the responsible officer for perusal and comment.

He/she may accept the adjustments or reject the stocktake or part thereof and appoint an independent person to enquire into the deficiency or result.

Evaluate Count Procedures

The Head, Corporate Finance will evaluate the count procedures applied and determine how these procedures may be modified to improve the next count. The best time to make adjustments to the following year's inventory instructions is immediately after the current year’s count is completed.

The authority to undertake asset maintenance work rests with Property and Infrastructure.

Property and Infrastructure will issue this authority via an official work order before maintenance works are undertaken. The only exception to the above rule is for specialist equipment that is the responsibility of institutes. Authorisation of maintenance expenditure will be in accordance with the University delegations procedure.

All contractors attending site to undertake maintenance related activity are required to:

Asset maintenance is funded in accordance with asset management plans and will be prioritised according to risk factors to fall within the allocated resources available.

Certain types of maintenance such as statutory maintenance or emergency maintenance required to address an identified high risk will be carried out according to risk and legal requirements.

High Risk Issues

Where an identified high risk emerges it will be dealt with immediately via a combination of removal from service and remedial works.

Assets that present a high risk to users will be locked out or isolated until such time as the risks can be resolved or mitigated (refer to the University’s lock out tag out procedure).

The University will identify contingency plans for maintenance of assets after natural disasters or critical incidents.

Such plans will be undertaken in accordance with the following:

The authority to trade-in assets, destroy or otherwise dispose of assets is outlined in the Delegations- Contract, Financial, Staffing and Tender Policy.

All such disposals, except for the categories listed below, are subject to written advice from operational areas and are to be coordinated by the Head, Corporate Finance. An Asset Disposal Form is available at the Finance Forms page.

The following exceptions apply to the above directive:

Where the calling of tenders is the desired method of disposal, the University's Procurement Framework must be strictly observed.

This method is only acceptable in a limited number of circumstances e.g.

Donations to Institutions with similar aims to the University, not-for-profit organisations, charities or community organisations should only be considered where no sales market exists or where the costs of alternate methods of disposal exceed the expected proceeds. All donations are required to be pre-approved by the Vice-Chancellor & President.

The responsible officer coordinating the donation of the asset must ensure a receipt is obtained from the recipient specifying the date of transfer of ownership of the asset and also update the Asset Register.

Disposal by this method should only be used when all other methods have been explored. All arrangements for destruction must be carried out under the supervision of the Head, Corporate Finance and be performed by Property and Infrastructure.

The responsible officer must arrange for the item to be disposed of in an environmentally responsible way and update the Asset Register.

Often particular assets considered obsolete or surplus to requirements in a particular operational area may be of value and use to another operational area. Where it appears that this may be the case, advice should be provided to the Finance Directorate and individual areas will arrange an internal University advertisement via Fed News seeking expressions of interest.

Applies when assets purchased via external research funding and that research project and funding is subsequently transferred to another institution or organisation. In these circumstances, the following conditions apply before the assets may be transferred:

Theft, loss or malicious damage of university assets should be immediately reported to Security who will undertake the applicable reporting requirements. The matter should also be reported to the Executive Dean of the Institute/Director of the Directorate along with the Head, Corporate Finance and the Insurance Officer. The Dean or Director is to prepare a written report for submission to the Chief Operating Officer and Chief Financial Officer seeking approval for either write-off action and/or for submission with subsequent insurance claims.

Also refer to Section 6.3.15 (Variance) for other relevant procedures in this regard.

The delegated authority to approve write-offs in respect of plant or equipment losses, thefts or destruction, that all reasonable recovery action has been taken, is outlined in the Delegations - Contract, Financial, Staffing and Tender Procedure. For the purposes of the Delegations, the monetary limit relates to the original purchase price of the plant or equipment.

All exercises of this delegation are to be reported to the Chief Operating Officer/Chief Financial Officer.

Any revenue obtained from the disposal of an asset will in normal circumstances be credited to the University's central funds. Contact Head, Corporate Finance for clarification.