Scope

This policy covers the financial and operational management of the University’s Property, Plant and Equipment.  Coverage includes, but is not limited to:

• Land, Buildings and Infrastructure;
  
• Plant, Equipment, Musical Instruments and Motor Vehicles;
  
• Artworks and Artefacts; and
  
• Rare Library Collection.

Non-Current Investment Assets are specifically excluded from this policy document.

The Director, Facilities and Services will also provide policy documents in relation to the management of Land, Buildings and Infrastructure in particular.

The Director, Division of Information will also provide policy documents in relation the Rare Library Collection.

The ANU Art Collection, a major component of Artworks and Artefacts, is also subject to a governing committee.

Insurance related policies will also apply and make reference to Non-Current Assets.

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Principles

The University is a large community with diverse needs.  The University is founded upon existing capital infrastructure and as part of ordinary operations will continue to expand and renew capital infrastructure.  Capital infrastructure services the day-to-day operational needs of the University.

The principles applied to the financial and operation management of the University’s Property, Plant and Equipment are:

• all Property, Plant and Equipment must be accounted for in accordance with the governing legislation, with particular reference to Australian Accounting Standards;
  
  
• Property, Plant and Equipment are a significant component of the University’s Balance Sheet; 
  
  
• The University is obligated under legislation to properly account for and manage Property, Plant and Equipment.

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Practices

Capitalisation Policy

1. Definitions and Profiles

ASSETS

Assets are defined as service potential or future economic benefits controlled by an entity as a result of past transactions or other past events.  Assets can be categorised as current (able to be realised within twelve months) or non-current (unlikely to be realised within twelve months) and encompass items such as cash, receivables, investments, property plant and equipment.

PROPERTY

Property is broadly defined by the University as Land, Buildings, Dwellings and Site Infrastructure. These categories form part of the University’s non-current assets.

Property is acquired or constructed at a cost of which constitutes capital expenditure according to a prescribed expenditure limit and capitalisation policy approved by the Finance Committee. Property is managed within the University’s General Ledger, however registers detailing individual records within each category are maintained outside of the ESP Financials System.

Property is broadly defined by the University as:

• land;
• buildings;
• site works and services including;
  • roads
  • bridges
  • footpaths
  • carparks
  • electricity
  • drainage
  • sewerage
  • telecommunications
  • computer networks
  • capital improvements, to previously capitalised assets such as air conditioning or fire control systems

The definition of property expressly excludes repairs and maintenance.

PLANT AND EQUIPMENT

Plant and equipment is broadly defined by the University as Office Equipment, Research Equipment, Teaching Equipment, Computer Equipment, Motor Vehicles, Musical Instruments, Works of Art and the Rare Library Collection.  These categories form part of the University’s non-current assets.

Plant and Equipment that has a useful life of more than one year, and a cost of which constitutes capital expenditure according to a prescribed expenditure limit and capitalisation policy approved by the Finance Committee. Plant and Equipment is managed within the ESP Financials – Asset Management System. They are defined as follows (the ESP profile name is listed in brackets). When adding an asset within the ESP Financials environment it is essential to include the profile name. The profiles are recorded within the University’s general ledger and the ESP Assets Management System. 

1. Office Equipment (OFFICE_EQ)

   This category includes, photocopiers, Light Pro projectors, cash registers, telephone (communication) systems, facsimile machines etc.

2. Research Equipment (RSRCH_EQ)

   This category includes microscopes, pumps, compressors, cameras, coolrooms, counters, image enhancers, meters, photometers, generators, magnifiers, power supplies, amplifiers, oscilloscopes, spectrometers, digitisers, lasers, centrifuges, condensers, etc.

3. Teaching Equipment (TEACH_EQ)

   This category includes video equipment, audio equipment, projectors, monitors, camera equipment, oscilloscopes, microscopes, survey equipment, refrigerator and freezing equipment, etc.

4. Computing Equipment (COMPUTER)

   This category includes processing units, servers, routers, controllers, gates, bridges, miniclusters, cabling, etc.

5. Motor Vehicles (VECHICLES)

   This category includes motor cars, trucks, vans, tractors, front-end loaders, trailers, etc.

6. Furniture and Other Equipment (OTHER_EQ)

   This category includes items not falling within other categories, other than works of art and rare library materials.  The classification is wide and examples are furniture, furnishings, kitchen plant, recreation equipment, sporting equipment, fire prevention equipment, farming and gardening equipment (not being motor vehicles), etc.

7. Musical Instruments (MUSIC_INST)

   Musical instruments may be acquired by purchase or gift.  This category includes all musical instruments such as strings, woodwind, brass, percussion and electronic instruments. 

8. Works of Art (ARTWORKS)

   Works of art may be acquired by purchase or gift.  This category includes paintings, sculptures, prints, ceramic articles, etchings, wall hangings, etc.  All works of art are recorded in the ESP Assets Management System. Irrespective of purchase price.

9. Portable and Attractive Items (NONCAPITAL)

   An individual asset category for attractive and portable items has been created for each of the eight categories listed above. To record these items, it is necessary to use the NONCAPITAL profile for all portable and attractive items, regardless of asset type. Portable and Attractive items are considered to be equipment costing less than $5,000 which through attractiveness for private use is considered by Business Officers to be prone to misappropriation. Such items may be recorded on the NON-CAPITAL section of the ESP Asset Management System.  This provides a data base management system for such items. Values are not required to be recorded.

2. Thresholds for the Recording of Assets

a) PROPERTY

The following expenditures are considered to be of a capital nature and must be recorded in the University's books of account:

• All new land;
• All new buildings together with associated site works and services;
• Services associated with access to the University site (e.g. roads and footpaths), other than routine repairs and maintenance;
• Services associated with the provision of electricity, drainage and stormwater control, sewerage and fire prevention, other than routine repairs;
• Services associated with electronic voice and/or data transmissions and computer networks;
• Rehabilitation and renovation of assets previously capitalised when the expenditure prolongs the useful life of the asset or enhances the benefit from the asset, provided that expenditure is not of a routine or recurring nature;
• When assets are partially replaced under a rehabilitation or renovation program, the value of the asset previously capitalised shall be reduced by an amount equivalent to the estimated original cost of the replaced part less depreciation provided if any;
• Capital improvements to previously capitalised assets such as air conditioning or fire control.

Notwithstanding the points above, individual expenditures which cost $100,000 or less, or individual costs which constitute a total project cost of $100,000 or less, shall not be recorded as assets of the University, unless a separate determination has been made in conjunction with discussion with the Manager, Financial Services. All projects involving repairs and maintenance and refurbishment must be considered in respect of the correct capitalisation approach and it is incumbent upon the Manager, Facilities and Services, to undertake this consideration and to engage the Manager, Financial Services, if required.

All expenditures undertaken by Manager, Facilities and Services, having a total project cost greater than $100,000 shall be referred to the Senior Accountant or nominee of the Manager, Financial Services, for assessment concerning the recording of assets in the University's books of account, and whether or not the particular project is capital or expense in nature.

It is a requirement that all major alterations to buildings or the rehabilitation or renovation of buildings be referred to Facilities and Services, in the first instance.  When Facilities and Services does not undertake the work on behalf of Schools, Sections or University Business Units, Facilities and Services shall advise the Manager, Financial Services or nominee of the Manager, Financial Services, who shall assess the proposed work and may direct the recording of the asset in the University's books of account.

Costs incurred relating to a non-current assets subsequent to it having been first put into use or held ready for use must be added to the carrying amount of the asset when and only when it is probable that future economic benefits, in excess of the originally assessed standard of performance of the asset, will flow to the entity in future reporting periods. All other such costs must be recognised as an expense in the reporting period in which they are incurred.

The foregoing guidelines shall be applied to all works undertaken by Facilities and Services and Schools/Sections.  The source of funding is not a criterion for the recording of assets in the University's books of account.

The University is subject to the following Commonwealth Department of Finance Guideline. Where commitments are not recognised as liabilities in the Statement of Assets and Liabilities, the Financial Statements of the University shall disclose the commitments for capital expenditure classified according to whether they are payable:

• not later than one year;
• later than one year and not later than two years;
• later than two years and not later than five years; and
• later than five years,
• after the end of the accounting period.

b) PLANT AND EQUIPMENT

1. Overview

The monetary threshold for the recording of assets in the University's Assets Management System, as approved by Finance Committee on 17 July 1998 are:

1. plant and equipment items costing $5,000 or more (other than arts and antiquities);
2. equipment costing less than $5,000 which through attractiveness for private use is considered by Business Officers to be prone to misappropriation may be recorded on the Assets but without a value being recorded; and
3. expenditure on improvements of existing assets should be recognised as an increase in the value of assets where:
   
   
   1. the expenditure results in a material increase in the service capacity or quality of the service provided by the asset; or
   2. there has been a material extension to the asset's useful life as a result of the expenditure; 
   
   
4. there is no monetary threshold applicable to the capitalisation and recording of works of art and antiquities in the ESP Assets Management System.

2. Adjustment of Monetary Thresholds

A formal review of the monetary thresholds is undertaken by the Director, Finance and Business Services for recommendation to Finance Committee.

An item with an accumulated historical cost less than the approved monetary threshold (‘attractive’ items and works of art excepted) is ineligible for recording on the Assets Management System.  Subsequent to each adjustment of thresholds, those items which have a recorded value less than the revised threshold may be automatically removed from University records, depending on their determined value in use.

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Acquisition of Assets

The Australian National University Act section 45 requires that ‘... the Council must do all things necessary to ensure that adequate control is maintained over the assets owned by, or in custody of, the University’.

Responsibility for the use, maintenance and custody of plant and equipment resides with the Heads of Budget Units. To assist in the discharge of this responsibility, reliable management information regarding the assets in use by their Budget Unit is required.

1. Recording of Assets

The official record of the University in which the financial and other details of Plant, Equipment, Motor Vehicles and Artworks are recorded, is known as the ESP Assets Management System. An official purchase order or contract, raised in accordance with the University’s Purchasing Policy and Procedures and the Financial Authorisations, is a basic requirement for the purchase of equipment. 

2. Asset Books

The University’s Asset Books within the ESP Asset Management System are used to store financial information on particular asset classes such as cost, capitalisation thresholds, depreciation attributes and retirement information. Asset Books are also used to determine whether accounting entries will be created for asset transactions.

Three Asset Books have been created within the ESP Assets Management System. They are:

1. Capital - used for recording and depreciating capitalised assets. Any asset with a value greater than the limit prescribed in the capitalisation policy, excluding works of art and musical instruments, will be recorded in the Capital Book.  
2. Artworks - used for recording works of art, antiquities and musical instruments. The need for a separate book for this asset is due to the different capitalisation minimum. Note that there is no monetary threshold applicable to the recording of works of art and antiquities in the ESP Assets Management System.
3. Noncapital - used for recording portable and attractive items. Establishing a separate book for noncapital items allows for the recording of an acquisition cost without having to create accounting entries or depreciate them.

Depreciation attributes which can be found in Asset Books include:

a) whether the item is able to be depreciated;
b) the useful life of the asset;
c) the depreciation convention; and
d) the depreciation method and salvage value, if any.

Equipment may be acquired by donation to the University from an outside organisation or individual.  The monetary value of a donated item is assessed upon its acceptance by the University and this value is confirmed by the Manager, Financial Services.  When the value equals or exceeds the monetary thresholds for the recording of assets in the University’s Asset Books, the item is recorded in the ESP Assets Management System.  The value is debited to the appropriate non-current asset account and credited to the appropriate gifts received account.  These items are properly regarded as being additions to the capital of the University.  When the value is less than the monetary thresholds, and the item is considered to be an attractive item prone to misappropriation, it may be recorded in the ESP Assets Management System without a value being recorded.

In other circumstances, e.g. where non-register items such as expendable materials are donated, the recording action should be to credit gifts received (income) and to debit an appropriate expense account.  These items are in the nature of income.

Equipment built or manufactured within the University for long-term use in a particular research unit, laboratory, workshop or other area may constitute a capital expenditure.  Any manufactured item:

• with an expected useful life of more than one year; and
• whose total cost of manufacture equals or exceeds the monetary thresholds for the recording of assets in the University’s Asset books is to be capitalised and recorded in the ESP Assets Management System. 

The total cost of manufacture is debited by journal entry to the appropriate non-current asset account.  The total cost is dissected with those expenditure accounts or a work in progress account, which have/has borne the cost of manufacture being credited, to recover the actual cost of materials, labour and other resources used.  Areas involved in making items that need to be capitalised should maintain suitable records or systems to ensure that all costs can be accurately assessed.  In cases where the manufacturing time spans across more than one financial year, the item should be classified as a Work In Progress (WIP) to ensure that the item is not charged to the ledger more than once. With work which takes a long time to complete (i.e. more than twelve months), recoveries should be made on the completion of appropriate stages of manufacture.  Eventually, the total cost of manufacture should be fully recovered. 

When a manufactured item will last more than one year, but its cost is less than the monetary threshold, and is an attractive item prone to misappropriation, it may be recorded on ESP Assets Management System – NON-CAPITAL without a value being recorded.
 

3. SPF and Endowment Assets

Assets purchased from Special Purpose Funds (S and Q) and Endowment Funds (E) remain the property of the University unless specific grant conditions state otherwise. All assets purchased from SPF and Endowment funds are held in the corresponding Recurrent (R) Fund and Department Number.  It is not recommended that Assets are held at Project/Grant Level in any Fund.

Three Ledger transaction lines are required in AP vouchers to record the asset purchase:

1. The first line of the asset purchase will be charged against the Special Purpose Fund using one of the series of Transfer (equipment) accounts;
2. A corresponding credit to the Recurrent (R) Fund is made using the same Department Code and Transfer (equipment) account as in 1 above; and
3. A corresponding debit to The Recurrent (R) Fund is made using the corresponding asset account.

4. Adding a component to an Existing Asset

Material expenditure in improvements of existing assets, excluding normal repairs and maintenance, should be recognised as an increase in the value of assets where:

1. The expenditure results in an increase in the service capacity or quality of the service provided by the asset; or
   
2. There has been an extension to the asset’s useful life as a result of the expenditure.
   

5. Acquisition of Artworks or Artefacts

Artworks or artefacts are capitalised upon acquisition regardless of their cost. 

All Artworks and Artefacts should be listed in the ESP Asset Management System.

When ANY Artwork or Artefact is purchased or donated, a record of the acquisition should be initiated, by the completion of the “Acquisition of Artworks or Artefacts” Form.

The Acquisition form will record the full GST exclusive cost of the item as charged to the general ledger (nominating the charge location) OR the independent valuation of the item if donated under the DCITA Cultural Gifts Program (for CGP donations two valuations are obtained, and an average is brought to account). Other donations may not initially be valued in which case their value will be listed as $1. 

The Acquisition form will then go to F&BS, and where there is a secondary register, to the area that manages the secondary register (as noted on the acquisition form).  Entry on the ESP Asset Management System will be attended to by mutual arrangement between the Business Office and F&BS, depending on the nature of the acquisition.

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Disposal of Assets

1. Overview of the Disposal Process

The Australian National University Act (1991) section 45 requires that ‘... the Council must do all things necessary to ensure that adequate control is maintained over the assets owned by, or in custody of, the University’. The accurate and timely removal of retired assets from the Property Registers and the ESP Assets Management System is an integral step in maintaining this control.

This section provides guidance on the procedures to be adopted when disposing of an asset in the ESP Assets Management System.

Responsibility for the use, maintenance and custody of plant and equipment resides with the Heads of Budget Units. To assist in the discharge of this responsibility, reliable management information regarding the assets in use by their Budget Unit is required.

The accurate and timely accounting for disposal of assets in the ESP Assets Management System facilitates the provision of relevant information for both informed decision making and reporting purposes. To dispose of an asset, Budget Units are responsible for:

• completing the ‘Asset Disposal Form’ ;
• obtaining approval for disposal of the asset;
• the actual disposal of the asset;
• processing the system removal of the asset via the Asset Retirements Panel Group in ESP Assets Management; and
• forwarding the completed ‘Asset Disposal Form’ and supporting documentation to Statutory and Management Reporting, Finance and Business Services, Chancelry 10C.

Finance and Business Services is responsible for:

• reviewing the disposal process;
• confirming the removal of the asset from the ESP Assets Management System;
• ensuring the integrity between the General Ledger and the ESP Assets Management System;
• providing advice and assistance on related Assets matters.

2. Preparing the Asset Disposal Form

The University removes assets from the registers when they are obsolete, unserviceable, traded-in, sold, missing or disposed of by other means. The ‘Asset Disposal Form’ must be completed to provide authority for the physical retirement of an asset and as documentary support for the removal of the asset from the ESP Assets Management System. This form and any associated documents, provide the minimum level of documentation required for the University to substantiate the disposal of assets.  It is advised that the form also be used for the removal of Property from Property registers in the event of the disposal of any property by sale or otherwise.

The form must be completed by the Business Office when proposing to dispose of an asset. It is the responsibility of the Business Office to ensure that all details pertaining to the retirement of the asset are entered on, or attached to the form. This includes:

• the asset details (ie item number, description, account, historical cost etc);
• the intended method of retirement (ie trade-in, auction, tender etc);
• any offers to purchase, quotations for trade-in or confirmation of acceptance;
• evidence of action to be taken on retirement of obsolete assets (ie why the item is obsolete, how and when the items are to be physically removed); and
• evidence of action taken to recover missing/stolen assets (eg police report number).

Consideration must be given to whether the asset being retired can be utilised by other areas of the University.

Prior approval must be obtained before retiring any University asset. This entails obtaining the authorisation of the relevant delegated officer and if required, coauthorisation from other delegated officers such as the Vice-Chancellor/President.  The accumulated historical cost of the item to be retired will dictate the level of authority required to proceed with the retirement process.

3. Who can approve the retirement of University assets?

Authority for the retirement of assets by the University is delegated to certain positions in accordance with the Delegations of Authority, which is approved by Council.

Heads of Budget Units such as Deans, Heads of Research Schools etc have the authority to:

• declare equipment to be no longer serviceable or saleable;
• declare lost or deficient equipment to be irrecoverable;
• declare equipment to have a reduced value; and
• authorise the sale, by auction, trade-in, private treaty or otherwise of equipment no longer required by the University.

This authority only applies where the historical cost of the equipment is equal to, or less than $50,000.  This authority cannot be transferred to another Agent and can therefore only be exercised by that delegate.  The authority is not restricted to items of equipment on the ESP Assets Management System, but applies to all inventories, stores or equipment held by the University.

The prior approval of the Deputy Vice-Chancellor/Vice President is required for retiring assets with accumulated historical cost greater than $50,000 and the Vice Chancellor where the accumulated historical cost is greater than $100,000.

Where an asset has been traded-in for another asset, the trade-in and purchase with the supplier represents two separate and distinct transactions. Both of these are subject to the relevant financial delegations.

A sale by tender exists where the University attempts to attract the best possible price, from either a selected group of purchasers (eg select industry group) or the community at large, for an item of equipment. A general requirement of a valid sale by public tender is the notification or advertisement of the intention to sell the surplus asset/s. This method is considered a fair option for the sale and retirement of assets as it eliminates the opportunity of bias, whilst maximising the return on sale.

A Private Treaty arrangement exists where the offer to sell the asset is made to only one party at arms length. Sale by private treaty may be arranged where:

1. there is only one apparent purchaser;
2. the cost of sale by other means would exceed the likely realisable value of the item; or
3. the sale to an educational or charitable institution is contemplated.

In considering approval for Private Treaty arrangements Business Offices are required to assess the sale in terms of the following:

1. Is the asset surplus to University requirements?
2. Could the University benefit more by going to tender?
3. Is the value being offered a ‘fair’ value for the particular asset?
4. Would the ‘normal’ sale result in the likely realisable value being lower than the private treaty purchase offer?

4. Actual retirement of the asset

The completed authorised form provides the written authority for actual retirement of a University asset.

Any proceeds received as a result of the retirement (ie trade-in value or sale price) must be recorded in the relevant retirement account. The accounts used are 9370M (for the sale of all assets except for motor vehicles) and 9370V (for the sale of all motor vehicles). The proceeds must be recorded in the ledger prior to performing the system removal of the asset.

The ESP Assets Management System item number of the item being retired should be included in the ledger description of the proceeds transaction.

When a new asset is purchased and a trade-in is involved, the newly acquired asset must be recorded at the full gross cost and the trade-in recorded as proceeds for the sale of the disposed asset.

The gross value of the asset purchased should be charged to the appropriate asset account with a non-payable adjustment processed to the relevant retirement account (9370M or V).

It is the Business Officer’s responsibility to ensure that all information has been entered onto the form, all documentation has been attached and that all valid authorisation has been sought (prior to disposal). The Business Office is required to ensure that the process has been correctly executed within the ESP Asset Management System (or can request F&BS to assist with this process.) To assist in this review, a checklist is provided on the reverse side of the ‘Asset Disposal Form’. The preparer is required to sign and date the form on page 2 providing an assurance that all of the above has been completed before forwarding to SMR, Finance and Business Services.

When the completed form is received by Finance and Business Services it is reviewed for completeness and confirmation of the disposal within ESP Financials.

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Transfer of Assets

1. Overview of steps involved in transferring assets

An asset transfer is a movement of an item of plant and equipment from one Fund/Department to another using the Asset Cost Adjust/Transfers function of the ESP Assets Management System. The Business Unit that is receiving the asset is responsible for processing the transfer in the ESP Assets Management System.

An asset may be transferred at no cost to the receiving Fund/Department or for an agreed contribution. As the transfer occurs within the University, the value of the asset from the whole of the University perspective remains the same.

When transferring an asset, the necessary steps are to:

1. Complete the 'Transfer of an Asset within The University' Form;
2. Obtain a screen dump of the ESP Assets Management System, Use-Asset Depreciation. Enquiring in this screen will provide relevant cost and other information about the particular asset being transferred. Attach to the related journal entry;
3. Process Journal Entries (JEs) in the ESP General Ledger to account for the transfer of the value of the asset as a cash contribution where applicable;
4. Process the ESP Assets Management System transfer transaction; and
5. Forward the completed 'Transfer of an Asset within The University' Form and supporting documentation to Statutory and Management Reporting (SMR), Finance and Business Services, Chancelry 10C.

The above steps should be completed for all transfers of assets, regardless of whether the transferring and receiving Sections operate within the same Business Office or School. If the transfer is between Departments or Sections with the same Business Unit, only the Fund, Department and Proj/Grant fields within the chartfield need to be changed. It is not necessary to enter any information on the Transaction Info or Other Transfer Info Panels.

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Stocktake of Assets

1. Objective

The Australian National University Act 1991 requires the Council to ensure that adequate control is maintained over the assets of, or in the control of the University. The ESP Assets Management System is a key control over the University's assets. An accurate record of assets is essential so that the ESP Assets Management System ("the ESP AM System") can be relied upon, to meet statutory requirements, management information needs and the University's external reporting obligations.

The main objective of the physical stocktake is to ensure the integrity of the ESP AM System by:

• ensuring that all plant and equipment items held are recorded in the ESP AM System, and
• verifying that all items recorded have been physically located and are prima facie still functional and not subject to impairment.

The physical inventory of University Assets is carried out by the manual input of information to the system.

2. How often should Asset Stocktakes be performed

Council, at its meeting of 8 October 1982, approved all items recorded on the ESP AM System were to be physically located and identified at least once every two years.

It is suggested that stocktakes be performed progressively during the year. This will ensure that the follow up action required as a result of the stocktakes, as indicated in the procedures below, is maintained at a manageable level.

3. Performing the Physical Stocktake

To perform the stocktake, it is necessary to run an Asset Listing Report from the ESP AM System. This gives you a worksheet for the stocktake so that all assets can be checked 'physically'. The University will progressively introduce barcoding for physical inventory to replace these manual procedures. 

The allocation of Location Codes to items should be consistent, easily understood and kept up to date to facilitate stocktaking of items. Room numbers should be included where available as well as any other detail, which assists location identification.

Location Codes should follow standard naming protocol as determined by Facilities and Services.

In the performance of the stocktake, where practicable, there should be at least two persons involved one of whom is independent of the area being counted. One officer is to verify that the items listed on the Asset Listing is in existence. When an item is found, the Asset Listing should be marked with an "F" alongside the item.

The persons performing an Asset Stocktake should be sufficiently technically competent to identify items and be aware of the stocktake procedures to be followed.

Where an item listed cannot be located following appropriate action to locate the item, the Asset Listing should be marked as 'Not Found'.

Where the Location Code indicates that the item listed is on loan to an officer, verification must be obtained from the officer that the item is still in existence and under that officer's control.

Where the Location Code indicates that the item listed is at a location other than the Acton site, the remote location must be contacted and verification by two officers that the item/s is/are still in existence must be obtained.

Stocktake Summary Report sheets should be obtained from SMR, F&BS, for completion.  This will include

1. A Plant & Equipment Stocktake Report; and
2. A Report of Items Located But NOT ON Register; and
3. A Report of Items On Register But NOT LOCATED; and
4. A Report of Items On Register where value is IMPAIRED.

All exceptions must be actioned in some way, either by being located or otherwise disposed of, or by being added to the Register, in consultation with SMR, F&BS.

The condition of items should be observed and any unserviceable or obsolete items should be identified on the Report of Items On Register where value is IMPAIRED for appropriate action.

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Depreciation

1. Overview of Depreciation

Depreciation is a process of allocation whereby the accumulated historical cost of an item of plant and equipment is apportioned and expensed over its estimated useful life.   A description of the terms relevant to the calculation of depreciation follows.

2.  Depreciation Rates

Depreciation and amortisation rates are generally based on remaining useful lives, using the straight line method of depreciation, as determined by valuation or as per the following schedule:

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Asset Revaluation

1. Asset Revaluation Process

Revaluation means the act of recognising a reassessment of the carrying amount of a non-current asset to its fair value as at a particular date, but excludes recoverable amount write-downs and impairment losses.   (AASB116).

The University revalues the following categories of non-current assets:

• Land
• Buildings/Dwellings
• Infrastructure
• Artworks
• Rare Library Items

Revaluation of non-current assets occurs in accordance with the Australian Accounting Standard AASB 116 – Property, Plant and Equipment.

Note: Plant, Equipment and Motor Vehicles were also subject to the revaluation process prior to 1 January 2005. With the introduction of International Financial Reporting Standards, and the Australian equivalent AASB116, the University elected to cease revaluation of Plant, Equipment and Motor Vehicles.  Accordingly, as at 1/1/2005, the Net Book Value of previously revalued Plant, Equipment and Motor Vehicle items became their DEEMED COST.

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Delegations

Chief Finance Officer/Director, Finance and Business Services

The CFO/Director, Finance and Business Services will be responsible for:

• coordinating asset management policy and practice.

Director, Facilities and Services

The Director, Facilities and Services will be responsible for:

• assisting with asset management policy and practice specifically with respect to Property, in consultation with the CFO/Director, Finance and Business Services.

Heads of Budget Units

• Responsibility for the use, maintenance and custody of plant and equipment resides with the Heads of Budget Units. To assist in the discharge of this responsibility, reliable management information regarding the assets in use by their Budget Unit is required.

Heads of Budget Units

• declare equipment to be no longer serviceable or saleable;
  
• declare lost or deficient equipment to be irrecoverable;
  
• declare equipment to have a reduced value; and
  
• authorise the sale, by auction, trade-in, private treaty or otherwise of equipment no longer required by the University.

This authority only applies where the historical cost of the equipment is equal to, or less than $50,000.  This authority cannot be transferred to another Agent and can therefore only be exercised by that delegate.  The authority is not restricted to items of equipment on the ESP Assets Management System, but applies to all inventories, stores or equipment held by the University.

The prior approval of the Deputy Vice-Chancellor/Vice President is required for retiring assets with accumulated historical cost greater than $50,000 and the Vice Chancellor where the accumulated historical cost is greater than $100,000.

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