An asset is a tangible item of economic value. For this policy it refers to physical items such as machinery, equipment, physical resources or buildings.
This policy is to ensure the College makes responsible asset purchases, accounts for assets, and retains control over assets.
All staff at the College will have the necessary and suitable equipment to perform their duties and to ensure that copyright and licensing regulations are observed.
Eastern College Australia staff, volunteers and students have suitable equipment to conduct their daily responsibilities in an efficient and economical way.
Staff, volunteers and students should endeavour to minimise the cost of asset acquisition, maintenance and replacement.
Eastern College Australia retains the ownership of assets provided to staff, volunteers and students. Staff, volunteers and students are responsible for exercising reasonable diligence to protect assets from theft or damage.
Suitable equipment is available to conduct responsibilities in an efficient and economical way.
Purchased assets are accurately recorded.
Equipment is safely and effectively operated and maintained according to manufacturer’s specifications.
The acquisition, maintenance and replacement of information technology equipment is planned and within the budget allocation.
Functions and Delegations
|Board of Directors||
All staff members and Board Members are responsible for understanding and adhering to this policy.
Asset management is an integral part of the organisation’s operation and its application is reviewed and minuted on a bi-annual basis by the the COO & Finance Committee.
Eastern College Australia acquires, uses, maintains and replaces assets to assist the organisation to meet its objectives.
All assets are appropriately insured and recorded on the asset register.
Asset acquisition is based on consideration of whether the asset:
- will provide significant, direct and tangible benefit to the organisation
- does not exist or could not be upgraded or adapted to meet the same purpose
- is appropriate and cost effective over its life
- is compatible with existing equipment and will not lead to unwarranted additional expenditure
- can be accommodated in existing space and facilities
- is the most suitable and appropriate type, brand, and model.
Multiple quotes will be sought for assets as specified in the capital budget and for any purchases over $3,000.00
An asset register of all capital purchases is maintained by the organisation. Assets are depreciated by class at a rate determined by asset life and the Australian Accounting Standards.
Assets will be used by authorised personnel for the purposes for which they were acquired. Under-utilised and under-performing assets will be identified, reasons critically examined, and appropriate action taken. Modification of assets will only occur by authorised and qualified persons.
Assets will be maintained through actions recommended in manufacturer's manuals. For each asset, efficient maintenance strategies will be implemented.
Staff, volunteers and students are responsible for the security of assets under their control. Assets are safeguarded against theft and damage and removed from the premises only with approval.
Asset disposal may occur through auction, tender, private sale, destruction, donation and transfers to other organisations.
The method of asset disposal will be based on consideration of what offers the best return and best furthers Eastern College Australia objectives, and considers environmental responsibilities.
Motor vehicles are NOT provided as part of select employment contracts.
Mobile phones are NOT provided for the use of specific staff.
Depreciation Rates and Method
The Standard requires non-current assets that have limited useful lives (depreciable assets) to be depreciated over those useful lives and specifies the manner in which this is to be done.
Eastern College Australia uses the Prime cost method for depreciation.
Depreciation of IT Equipment
Computers 25% - 33%
Computer Accessories 20% - 33%
Servers & Access Points 3% - 20%
Software 10% - 33%
Depreciation of Furniture
Office Furniture 10% - 25%
Student Furniture 10% - 25%
Library Furniture 10% - 25%
Depreciation of Equipment
General Equipment 10% - 25%
Security Equipment 5% - 25%
Maintenance Equipment 10% - 20%
Promotional Equipment 15% - 33%
Kitchen Equipment 10% - 25%