Asset Management Policy

Status


Last reviewed
Wed, 28 September 2016

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.

Public
visibility
Approved on: 28 Apr 2016
Amended on: 13 Jan 2017
Review cycle: 3 Years
Owned by

Chief Operations Officer

Approved by

College Board

Category: 
Policy Contact: 
Louise Sutton
Definitions: 

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.

Purpose: 

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.

Statement: 

Principles

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.

Outcomes

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

Position Delegation/Task
Board of Directors
  • Endorse Asset Management Policy.
  • Comply with Asset Management Policy.
  • Final approval of any new acquisition or maintenance/operation over $5,000.00.
  • Approve the planning and budgeting of assets.
Management COO

  • Final approval of any new acquisition and maintenance/operation.
  • Review the quotes and endorse purchase orders for any purchase over $3,000.00
  • Preliminary planning and budgeting of asset acquisition and maintenance.
  • Monitor the asset register.
Staff Accounts

  • Advises COO of need for hardware and software upgrades and renewal based on recommendations from IT Department.
  • Renew or purchase new software for operating systems, office suites and anti-virus software done by IT Department.
  • Plan and budget asset acquisition and maintenance.
  • Document items onto the asset register.
  • Monitor and coordinate maintenance of assets.
  • Coordinates the disposal of assets as per instruction from the COO/Manager.
  • Quote and purchase assets approved by COO or as described in the capital budget

Policy Implementation

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.

Policy Detail

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

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

Asset Register

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.

Asset Utilisation

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.

Asset Maintenance

Assets will be maintained through actions recommended in manufacturer's manuals. For each asset, efficient maintenance strategies will be implemented.

Asset Security

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

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

Motor vehicles are NOT provided as part of select employment contracts.

Mobile Phones

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%