DkIT - Dundalk Institute of Technology / DkIT - Dundalk ...



1.0INTRODUCTION1.1The assets (Property, Plant and Equipment) of Dundalk Institute of Technology are primarily for the purposes of fulfilling the Institute's missions of teaching, research, public service and general Institute programmes and related administrative uses.Therefore the Institute has a responsibility to manage, control and safeguard such Institute assets, to ensure maximum benefit is obtained from these assets in the course of providing educational instruction to students, and must ensure the maximum return is obtained by the Institute in the event of asset disposalNo use of Institute assets shall be permitted which interferes with the conduct of these functions, or which is inconsistent or conflicts with the Institutes academic mission. Institute assets are not available for unrestricted use for other purposes.2.0PURPOSE2.1The purpose of this document is to ensure that a documented, controlled and audited procedure exists within Dundalk Institute of Technology so that Assets are safeguarded through the proper recording of the purchase, transfer, management, control and disposal of all Fixed Assets. An integrated Fixed Assets Register must also be in place identifying each item of Fixed Asset by Historic Cost, Code, sub account, location and Net Book Value, and this procedure documents the control and maintenance of this Register.3.0OBJECTIVES3.1To provide an organised and accountable method of monitoring and controlling the acquisition, custody, transfer and disposal of the Institute’s fixed assets.3.2To ensure value for money in acquiring fixed assets and to maximise residual value in the disposal of same, where applicable.3.3To protect the Institute from any conflict of interest, either potential or real, which may arise between the Institutes Department/Functional Areas, services, offices etc. in the acquisition or disposal of fixed assets and any persons or groups purchasing such fixed assets from the University. 4.0SCOPE4.1This procedure documents the procedure for the purchase, disposal, identification, bar-coding, physical location and audits of Fixed Assets within the Institute. It also documents the way in which Fixed Assets are categorised within the Institute.5.0DEFINITION5.1According to the Generally Accepted Accounting Practice in Ireland [GAAP] and specifically FRS 15-Tangible Fixed Assets; Fixed Asset can be defined as an item of property, plant, equipment or fixtures & fittings etc. whose useful life exceeds one year and it is intended for continuing use, rather than a short-term, temporary assets such as class materials/stocks. This is to include all items funded through the Capital programme of the Department of Education and Science Third Level Building Unit.5.2Fixed Assets are classified under the following major categories;LandBuildingsComputer Equipment/ Computer 3 Yrs.Laboratory EquipmentAudio Visual EquipmentMotor VehicleFurniture5.3Depreciation can be defined as the measure of the cost or revalued amount of the economic benefits of the tangible fixed asset during the period used. It is the allocation of the cost of the asset over its useful life. This calculated on a straight line basis using the following estimated useful lives;LandNot depreciatedBuildings50 YearsComputer Equipment3 YearsEquipment/other (incl. Fittings & Fixtures)5 YearsMotor Vehicle5 YearsFurniture5 Years5.4Those assets that are immovable e.g. fixtures and fittings permanently or solidly fixed to the physical structure of the building are to be capitalised and depreciated as part of the building category. All other fixtures and fittings are to be depreciated over 5 years and all equipment items depreciated over 5 years.6.0POLICY6.1All purchasing and procurement of Institutes fixed assets shall be carried out in strict compliance with the Institutes policy.6.2It is the Institutes policy to ensure that all of its fixed assets are managed in accordance with current best practice. That these fixed assets are safeguarded by appropriate identification, recording, verification of existence and costs.6.3In this regard, all Institutes fixed assets are recorded in a consolidated Fixed Assets Register (FAR) module called Assetware Manager. This will meet custodial obligations for internal control. The maintenance of such a register of fixed assets should be in line with the scheme laid out in 8.1: Recording/Control of Fixed Assets below.6.4All acquisitions of fixed assets require approval as set out in the DKIT Procurement Procedures and Policies (on the DKIT website).6.5In accordance with the Irish Generally Accepted Accounting Practice (GAAP), all fixed assets capitalised on the Assetware Manager are depreciated on straight line basis using the estimated useful lives outlined in 5.3 Depreciation.6.6Those assets that are immovable e.g. fixtures and fittings permanently or solidly fixed to the physical structure of the building are to be capitalised and depreciated as part of the building category. All other fixtures and fittings are to be depreciated over 5 years and all equipment items depreciated over 5 years.7.0PROCEDURE7.1Purchase of Fixed AssetsAll Institutes fixed assets shall be purchased and procured in strict compliance with its policies outline on the Procurement Procedures and Policies (on DKIT website). The Principles of openness, transparency, and value for money shall be applied. This is done using the requirement set out by the National Procurement Services.7.2All Fixed Assets should be coded to Agresso Nominal Account Code B340 and the correct Asset category selected. 7.3Donated Fixed AssetsWhere a department receives an asset as a gift or donation, such department must contact the Fixed Assets section of the Finance Department within Dundalk Institute of Technology to agree an appropriate valuation for the asset for the purposes of the Fixed Asset Register (FAR). These valuations are generally based on current market value; based on whether new or used. RECORDING/CONTROL OF FIXED ASSETS8.1The Fixed Asset Register (ASSETWARE)Dundalk Institute of Technology uses an asset management system known as Assetware, which is integrated with Agresso in the recording of all capitalised Fixed Assets and which meets its custodial obligations as well as external funding bodies’ requirement. Dundalk Institute of Technology is also required by both External Auditors and the Comptroller and Auditor General to maintain an Asset Register of capitalised assets and to physically account for the existence of these assets. Under the Fixed Assets Register (FAR), there will be common criteria for the recognition of fixed assets which is reconciled to the Institutes’ Financial Statement. The Fixed Assets Register (FAR) will make it easier to account depreciation, ensure accuracy in tracking and accounting for fully written off assets and disposals. The operation of Assetware is solely the responsibility of the Fixed Assets Term in the Finance Department. 8.2Process of Recording Assets on AssetwareDuring the financial year, a list of Fixed Asset additions is compiled on an on-going basis (monthly) by running a TransReport on Agresso. At the end of each financial month, the compiled list is then reconciled to the General Ledger on Agresso. This is to make sure that all fixed assets purchased for the month are correctly coded and all items not meeting the capitalisation limit of fixed assets are removed/coded out**. The list of additions is then included on the Fixed Asset Register, with particular attention being paid to the number of items purchased, historic cost and a description of each item. Where applicable a Dundalk Institute of Technology Fixed Asset tag number is then assigned to each line item. All assets are then tagged accordingly by a member of the Fixed Assets Term in the Finance Department and the Fixed Asset Register is updated with the Barcode Number and location of the asset.**From 1 September 2009, equipment costing less than €3,000 (incl. VAT) per individual item is written off to the income and expenditure account in the year of acquisition. Where individual items of equipment purchased are below the capitalisation limit (€3,000) and the total purchase invoice is in excess of the limit, these items are individually capitalised in the normal way. All desktops, iPads, Notebooks and laptops are capitalised regardless of cost.8.3What is capitalised on Fixed Assets Register (ASSETWARE)This process is performed on Assetware and will be managed and maintained by the Fixed Assets term of the Finance Department within the Institute. All fixed assets purchased, which meets the capitalisation limit (see 8.2 **) should be coded to Agresso Nominal Account Code B340. All items not meeting this limit will be journal out of B340 to either sub account 8106 or 8107 (class materials/ equipment).For elaborations on what is coded to B340 fixed assets, please see Appendix IV (Flow chart) 8.4Information included on each individual assetOnce an individual asset is uploaded on to Assetware, the system automatically assigns a unique number to the asset known as “Assetcode”. Details included once the “Assetcode” has been generated are;DescriptionAsset ClassBarcodeSupplier ID & NameTransaction NumberOrder Number Invoice NumberPurchase DateCostTotal CapitalisedDepreciationSub AccountOther details which are optional fields but may assist in easier identification and verification of the assets (especially with certain equipment e.g. Desktops, Laptops, iPads, Notebooks etc.) are;Serial NumberModel and MakeManufactureAll moveable fixed assets, which have been included on “Assetware”, should be appropriately tagged with an asset tag number, to clearly identify it as being the property of the Institute. -2857505650865Figure 1: Asset View00Figure 1: Asset View-381000297815008.5Asset TagsAssets Tagging is the process of numbering fixed assets, which allows the tracking of movable fixed assets from one location to another. Asset tags are used as part of this process. Tagging provides an accurate method of identifying individual assets, aid in the physical tracking, control the location of all physical assets, acts as theft deterrence and provide a common ground of communication for the Finance Department and the assets users.A tag number is entered into the “ZebraDesigner” software package for designing Labels. DKIT s’ asset tags are pre-printed labels with barcodes which is unique to each asset. These asset tags will be issued by the Fixed Assets Term in the Finance Department to the asset assignee (with responsibility for the asset – Computer and Lab Technicians). Other equipment’s outside the control of these technicians will be asset tagged by a member of the Fixed Asset Term. 10191758318515901Figure 2: Sample of DKIT Asset Tag15901Figure 2: Sample of DKIT Asset Tag Asset tags should be placed if possible where they can be; Easily accessible for viewingEasily identifiable without the disturbing the operations of the assetThis will assist during fixed assets audits process.8.6Audit of Fixed AssetsFrequently, Fixed Assets Audits (Stock Takes) are carried out by the Fixed Assets Term in the Finance Department to monitor and control movements and transfers of these fixed assets. An Asset Tracking system has been developed as an add-on to the existing Assetware Manager System, known as “Assetware Tracker” (Auditor 4). This is to facilitate the auditing (checking) of all capitalised fixed assets on a cyclical basis. The process of carrying out an audit of these fixed assets is particularly relevant for an Institute like DKIT. The Fixed Assets Term should periodically under-take an audit of all capitalised fixed assets. This audit is driven by a physical location, which will require the auditor (a member of the Fixed Assets Term) to go to a particular location and physically scan all fixed assets there with bar-code, using a bar-code reader. These scanned details are then uploaded on to the Assetware Tracker. At the end of the audit, the scanned uploaded assets are then compared with the FAR. An audit report is then generated, showing assets that were found and assets not found. A list of assets not found during this process will require being investigated further and corrective action taken. This will involve communication with the asset assignee, individual user (in the case of Laptop, iPads, Notebooks etc.) and the Department /Cost Centre/Research Centre/ Budget Holder where required. It is in the interest of Dundalk Institute of Technology to carry out audits of each individual functional area every 12-15 months periodically.8.7ReconciliationsEach individual functional area should keep an accurate record on a spreadsheet of all fixed assets located within the department. A monitoring system should be put in place by each department as a security measure for moveable fixed assets loaned out to students. The Finance Department will only have details of moveable fixed assets loaned out to staffs.9.0RESPONSIBILITIES9.1All StaffAll Dundalk Institute of Technology staffs must take responsibility for protecting its fixed assets (especially moveable fixed assets) in their custody. It is the responsibility of all staffs to ensure that assets are used for authorised DKIT purposes.9.2Departmental/Functional Areas ResponsibilityAt the departmental level, each Head of School, Head of Department, Budget Holder is responsible for ensuring that a register of assets owned is maintained, these include; Computers, Laptops, iPads, Notebooks, Laboratory equipment, teaching and research equipment.9.3Fixed Assets, Finance OfficeThe ultimate responsibility for the maintenance and the recording of transactions within the Fixed Asset Register rests with the Fixed Assets Term in the Finance Department. Any queries relating to the Fixed Assets should be addressed to the Fixed Assets Term.9.4Assets-On-LoanDundalk Institute of Technology permits members of staff to borrow, and remove from the premises, assets for use for Institute related activities only. No use of Institute assets is permitted which interferes, is inconsistent or conflicts with the Institutes academic mission. These are mainly moveable fixed assets such as Laptops, iPads etc. Any staff in possession of these types of moveable fixed assets must fill-out an Asset-On-Loan Form (see Appendix I) Borrowing Institute assets for personal use is not permitted by the Institute.To initiate a request to borrow an asset from the Institute, the staff member completes an Assets-on-Loan Form (refer to Appendix I), before the commencement of the Loan Period. On this form the staff member clearly identifies the asset they wish to borrow, the dates and duration of the loan period, and the reason for borrowing the asset i.e. the use to be made of the asset. The staff member then signs this form and passes it to their Head of Department / Function.The Head of School/ Department / Function ( where applicable) reviews the request, ensures that the reason for the loan does not conflict with the Institute’s mission, and then signs the form, and passes it to the Technician responsible for the asset. The original copy of the form is then sent to the Fixed Assets Term in the Finance Department, and a copy is retained by the department/function area.When the staff member returns the asset after use to its rightful place within the Institute, they must contact the relevant Technician to arrange for the completion of the “Confirmation of Asset Return” section of the Asset-On-Loan form. The original of this must also be sent to the Fixed Assets Term in the Finance Department for the purpose of Fixed Assets audits.A copy of the Asset-On-Loan Form is retained in each Department on file for future reference, and audit purposes. All Originals must be forward to the Fixed Assets Term in the Finance Department. This is kept on file for the external auditors and the General Comptroller’s audit. 9.5Transfer of Fixed AssetsIf an item of fixed assets is removed from a particular location, a Transfer of Asset Form must be completed and signed by the person conducting the transfer (refer to Appendix II). The original copy of this form is then sent to the Fixed Assets Term in the Finance Department where Fixed Assets Register is then amended accordingly.9.6Disposal of Fixed AssetsEach Head of Function (including the Estates Manager) is responsible for identifying & highlighting surplus / damaged assets – property, plant & equipment for disposal. Obsolete assets should be written off and physically disposed of on an annual basis.The Head of Function where the asset resides is responsible for filling out a Disposal of Capital Assets Form (refer to Appendix III). The principle underlying this process is that it is the Heads of Functions, who initiated or approved the purchases of the fixed assets for their departmental use; consequently they have the primary fiduciary responsibility to manage, control and safeguard such Institute assets. To ensure maximum benefit is obtained from these assets in the course of providing educational instruction to students and that maximum return is obtained by the Institute in the event of asset disposal.The disposal form must clearly identifyThe relevant asset,The reason for disposal,The suggested method of disposal (see notes below),- Memo as to Method of Disposal (Explaination to the method of disposal used; e.g if used for parts – state location of the disposed item and why it is been used for parts; if Recycle – state how this was done; if Donated – state who received the asset(s) and the process (if any) e.t.c. The original cost,Dundalk Institute of Technology’s Asset Tag Number/Barcode.The next step is for the Heads of Department/Function to get approval for the asset disposal. If the net book value of the asset is under €2,500, then the Director must sign the form to approve the disposal.If the net book value of the asset is above €2,500 then the Finance & Audit Committee must approve disposal and the reference of the meeting approving the disposal should be entered on the form and passed to Governing Body for approval at the next meeting.ONLY WHEN THESE STEPS ABOVE HAVE BEEN COMPLETED SHOULD THE FORM BE SENT TO THE FIXED ASSETS TERM IN THE FINANCE OFFICE The Finance Department then completes the following steps:Updates the Fixed Asset RegisterInserts the date on which this is done on the disposal formFills out the invoice and disposal proceeds informationProcesses the necessary accounting entries to record the disposal The operation and management of all of these procedures is subject to audit on an annual basis, in accordance with the existing procedures of the Finance Department, and the Comptroller and Auditor General.Discrepancies or non-conformance of this procedure are reported to the Governing Body, as appropriate.NOTES The Booklet “Public Procurement” on Tendering for Public Sector contracts outlines that disposal of Government property should be done either by:Public tendering or (Major Property & Equipment)AuctionAlternative options to the above which the Institute may consider might include:Donation Immediate disposal because of zero valueThe Financial Controller & Head of Development are jointly responsible for organising Auction & Sale by Public Tender.9.7Disposal of Fixed Assets to a Staff MemberIn the case of redundant equipment or instances may arise where staff members wish to purchase equipment, in particular Computers, Laptops, IPad, Printers etc., which is no longer in use by the Institute. Furthermore, a staff member who has sole use of equipment may wish to purchase it before the end of the asset’s useful life. The following procedure sets out the process to be followed in such instances to facilitate staff purchases while meeting audit requirements. 9.7.1ProcedureWhere a staff member has identified an asset to be purchased, the following procedures below should be followed;The individual staff member should contact the Fixed Assets Team in the Finance Department, to request an independent valuation of the asset(s) being purchased. The Fixed Assets section will arrange, through the Procurement office to source an independent market price for the asset(s). {The higher of the Net Book Value of the asset or €100 per asset.}The Finance Department will then approve a price (notifying the Financial Controller and President if need be) and notify the individual staff member.The Purchase Asset and Disposal Forms (see Appendix III and IV) should then be completed and forwarded to the Fixed Assets section of the Finance Department. The forms must be signed by the staff member purchasing the asset and the relevant Head of Department/ Function.The asset(s) will transfer to the staff member on receipt by the Finance Department of Cheque, Bank Draft or Cash for the approved price. A receipt will be issued to the purchaser when proceeds have been received by the Finance Department.APPENDIX IDUNDALK INSTITUTE OF TECHNOLOGYASSETS-ON-LOAN FORMAsset Barcode NumberDescription Of AssetReason For LoanDate Of Commencement Of LoanLatest Date Of Return Of AssetEmployee SignatureAPPROVAL OF LOANHead Of Department/ Function SignatureCONFIRMATION OF ASSET RETURNDate Asset Returned To DKITEmployee Signature / DateTechnician Signature / DateAPPENDIX IIDUNDALK INSTITUTE OF TECHNOLOGYTRANSFER OF FIXED ASSETS BETWEEN DEPARTMENTSDateDKIT Asset Tag NumberSerial NumberDescription Of AssetOriginal LocationNew LocationReason For TransferAPPROVAL OF TRANSFERHead of Function - Current LocationSignature / DateHead of Function - New LocationSignature / DatePass Completed Form To The Finance OfficeCONFIRMATION OF TRANSFER & RECORD UPDATEDate Fixed Assets Register UpdatedFinance Department Signature / Date Appendix IIIDUNDALK INSTITUTE OF TECHNOLOGYDISPOSAL OF CAPITAL ASSETS FORMDKIT Asset Tag Number: _______________________________________________________Description Of Asset: __________________________________________________________Reason for Disposal: ___________________________________________________________ ___________________________________________________________Historic Cost of the Asset: €________________Estimated Current Value:€________________32004001473201828800147320410527524765502920024765Method of Disposal: Recycle Use for Parts Scrap Sale182880076205029200762029718007620 Trade In Donated In storage (no longer in use) Memo as to Method of Disposal:_________________________________________________________________________________________________________________________________________________________________________________________________________(Please note that a letter/email to the Fixed Assets Term in the Fnance office will be required confirming the method selected above)Head of Department/Function Signature: ______________________________________APPROVAL OF DISPOSAL REQUEST_______________________________________________________________Finance & Audit Committe/Director Signature/ DateDate of Meeting:________________________________________________________Approved by Governing BodyDate of Meeting:______________________Pass Completed Form To The Finance Office4486275309245338137530924526098503092451543050309245CONFIRMATION OF ASSET DISPOSAL & RECORD UPDATE1733550213360Date Asset: Scrapped Traded in Sold Recycled Used for Parts _____________Date Fixed Assets Register Updated: __________________________________________Finance Office Signature/ Date: ______________________________________________Appendix IVDUNDALK INSTITUTE OF TECHNOLOGYPURCHASE OF DKIT ASSET BY STAFF TO BE COMPLETED BY STAFF Function Area/Department: ______________________________________________________DKIT Asset Tag Number: _______________________________________________________Description Of Asset: ______________________________________________________________________________________________________________________Historic Cost of the Asset: €________________Estimated Independent Value:€________________Date Purchased: ______________________________Sub Account: _________________________________Staff Signature:_______________________________Head of Department/Function Signature: ___________________________________________APPROVAL OF PURCHASE REQUEST_______________________________________________________________Finance & Audit Committe/Director Signature/ DateDate of Meeting:________________________________________________________Approved by Governing BodyDate of Meeting:______________________ 40525702984521856702984571882029210 Cheque Cash Bank Overdraft Invoice issued/ invoice number: ______________________________________-272415160655 NOValue is less than (<) €1,000, Post to Agresso Nominal code: 8106Value is greater than (>) €1,000, but less than €3,000, post to Agresso Nominal Code: 8107YESIS ITEM IT EQUIPMENT? e.g Projectors, Printers, cameras, Lab equipments, Network Switches. (Excludes: Laptops, PCs, Notebooks, iPads, Tablets) ITEM IS < €3,000YESDoes Items include any of the following? Laptops, PCs, Notebooks, iPads, Tablets, iPhones etc. (all moveable assets)TOTAL INVOICE IS < €3,000YES NO YES ITEM IS > €3,000YESIS ITEM IT EQUIPMENT? e.g Projectors, Printers, cameras, Lab equipments, Network Switches. (Includes: Laptops, PCs, Notebooks, iPads, Tablets, iPhones etc.YESPOST to Agresso Nominal Code: B340. NO NOValue is less than (<) €1,000, Post to Agresso Nominal code: 8106Value is greater than (>) €1,000, but less than €3,000, post to Agresso Nominal Code: 8107YESIS ITEM IT EQUIPMENT? e.g Projectors, Printers, cameras, Lab equipments, Network Switches. (Excludes: Laptops, PCs, Notebooks, iPads, Tablets) ITEM IS < €3,000YESDoes Items include any of the following? Laptops, PCs, Notebooks, iPads, Tablets, iPhones etc. (all moveable assets)TOTAL INVOICE IS < €3,000YES NO YES ITEM IS > €3,000YESIS ITEM IT EQUIPMENT? e.g Projectors, Printers, cameras, Lab equipments, Network Switches. (Includes: Laptops, PCs, Notebooks, iPads, Tablets, iPhones etc.YESPOST to Agresso Nominal Code: B340. NOAppendix V ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download