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FRCA66(d)

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FRCA66(d)

    Ollscoil na hÉireann, Gaillimh

    Financial Policy and Procedures Manual

    Fixed Assets

    Version: V4 _____ Replaces: V3____

    Approved by: Údaras na hOllscoile Date: 2007___

    1. Policy

1.1 It is University policy to ensure that all of its fixed assets (including land,

    buildings, equipment etc.) are managed in accordance with current best practice

    i.e. that such fixed assets are safeguarded by appropriate identification,

    recording, verification of existence, condition, and costs and by monitoring

    utilisation of same and scheduling appropriate replacement.

1.2 Fixed asset disposals and access to University assets by third parties will be

    similarly managed, and the University regards the provisions of the Governance

    of Irish Universities Code (2007) as representing the standard the University

    shall adhere to. Disposals of fixed and other asset types are dealt with fully

    under the University‟s separate policy „Disposal of assets and access to assets by

    third parties. University policy provides for the maintenance of a register of

    fixed assets in line with the scheme laid out below. The existence and condition

    of a representative sample of University fixed assets will be verified on an

    annual basis and sufficient information will be gathered in order to prepare an

    annual replacement schedule.

1.3 In line with University sector norms, all fixed assets will be depreciated at

    appropriate rates and related grants amortised in similar fashion.

1.4 All acquisitions of fixed assets require the approval of the Governing Authority

    in accordance with the Financial Policy and Procedural Manual section titled

    Purchasing and Procurement”.

1.5 All disposals of fixed assets require the approval of the Governing Authority in

    accordance with the policy referred to at 1.2 above.

    2. Policy Objectives

2.1 To provide a systematic and accountable method of monitoring and controlling

    the acquisition, disposal, and custody of the University‟s fixed assets.

2.2 To protect the University from any conflict of interest, either potential or real,

    which may arise between University departments, services, centres, offices, etc

    in the acquisition or disposal of fixed assets and any persons or groups

    purchasing such fixed assets from the University.

    .

    NUI, Galway Finanical Policy & Procedures Manual Fixed Assets cont.

2.3 To ensure value for money in acquiring fixed assets and to maximise residual

    value in the disposal of same, where applicable

    3. Authority and Responsibility

3.1 The Governing Authority has overall responsibility for the custody, safekeeping,

    utilisation and disposal of University fixed assets. In general these functions are

    delegated through a decentralised structure with responsibility for fixed assets

    being vested in relevant Officers (usually Heads of Departments, services,

    centres, offices etc.) who act as custodians.

3.2 The custodian is responsible in general for the stewardship, control and proper

    utilisation of fixed assets in his/her control for the tagging and appropriate

    maintenance of same.

3.3 The Custodian is responsible for undertaking the annual verification and

    recording of fixed assets in his/her control and for advising in respect of related

    condition, remaining useful life, replacement value etc. and for advising on

    appropriate replacement scheduling.

3.4 The Director of Physical Resources is responsible through the Vice-President

    for Physical Resources for all University land and buildings whether owned,

    leased or controlled by it.

3.5 The Bursar is responsible for the maintenance of the Fixed Asset Register and

    for coordinating the annual review, verification and replacement planning

    process, achieved through the annual budgeting exercise.

3.6 It is the responsibility of the Custodian to advise the Bursar‟s Office of all

    donated assets and relevant asset details using the standard Fixed Asset Register

    record sheet.

    4. Procedures

    4.1 Acquisition Purchased Fixed Assets

    The purchasing and procurement of University fixed assets shall be carried out

    in strict compliance with the University‟s policy on same. The principles of

    openness, transparency, and value for money shall be applied by way of seeking

    quotations and tenders as appropriate in accordance with University policy.

    4.2 Acquisition Donated Fixed Assets

    Before accepting a donation of a fixed asset, the University staff member shall

    ensure that they have secured any necessary funding to both „house the asset (if

    applicable), and to maintain it in good condition. All fixed assets donated to the

    University shall be notified to the Bursar‟s office by the custodian, as provided

    in 3.6 above. The Bursar‟s office is to be informed by submission of the official

    form whenever fixed assets are disposed of.

    NUI, Galway Finanical Policy & Procedures Manual Fixed Assets cont.

4.3 Disposals of Fixed Assets

    All disposals of fixed assets must be carried out in accordance with the

    University‟s policy titled „Disposal of assets and access to assets by third

    parties‟.

     4.4 Classification & Recording of Fixed Assets

4.4.1 Assets will be classified under the following major categories (Sub-categories of

    these major groupings may be developed in due course).

    ? Land

    ? Buildings

    ? Computer Equipment and Software

    ? Laboratory Equipment

    ? Office Equipment

    ? Vehicles

    ? Other Equipment

    ? Fixtures and Fittings

4.4.2 All University fixed assets with an individual value (inclusive of VAT) at or

    above ?10,000 will be included in the fixed asset register.

4.4.3 All movable fixed assets to be included in the fixed asset register will be

    appropriately tagged with an identification number. Title deeds and contracts

    (including maps) relating to all land and buildings will be maintained by the

    Director of Physical Resources

4.4.4 All locations at which University fixed assets (including title deeds etc.) are kept,

    will be identified and recorded in the register.

4.4.5 Land and buildings will be valued at historical cost with any adjustment thereto

    noted in the related fixed asset record.

4.4.6 Values per the Fixed Asset Register will be reconciled on an annual basis with

    the University‟s Balance Sheet and disposals will be appropriately reflected in

    the Balance Sheet.

4.4.7 The fixed asset register will include information in respect of individual assets

    in the following format:

    Serial Number

    Identification Number

    Description

    Location

    Supplier

    PO Number

     Acquisition Date

    Acquisition value (inclusive of VAT)

     Expected useful life at acquisition

     NUI, Galway Finanical Policy & Procedures Manual Fixed Assets cont.

    Estimate of current replacement value (inclusive of VAT)

     Estimate of maximum remaining useful life

    Depreciation Rate

    Net book value

    Estimate of current net realisable value

    Revaluation Date (if any)

    Revaluation amount (if any)

    Custodian

    Funding source(s) (see 3.11 below)

4.4.8 Depreciation will be calculated to write off the cost/value of fixed assets on a

    straight line basis, using the following estimated useful lines: -

    Land N/A

    Buildings 50 years

    Computer Equipment/Software 3 years

    Equipment - Fixture and Fittings 5 years

    Leased Assets Lease Terms

4.4.9 Source of Funding of all assets will be recorded and classified under the

    following categories.

    A) HEA Capital Grant

    B) Non HEA Capital Grant

    C) Income & Expenditure Transfer

    Assets may be funded from one or a combination of the above sources.

4.4.10 Each year a sample verification exercise will take place. The Bursar‟s Office

    will advise budget holders of assets recorded in their custody. The budget holder

    will review and update this listing and make appropriate adjustments correcting

    any errors and/or omissions in respect of any of the information given. The

    Bursar‟s Office will then update the Fixed Asset Register and circulate revised

    reports to the custodian.

4.4.11 The Internal Auditor will ensure that spot checks of the existence and condition

    of assets are conducted throughout the year, and will report the results of such

    checks to the Audit Committee.

4.4.12 The Bursar will present an annual report to Finance/Resource Committee

    summarising the information contained in the Fixed Asset Register and the

    report of the Internal Auditor. Information from the Fixed Asset Register will

    be used in annual budgeting exercises to identify replacement requirements.

    Stiúrthóir Cuntasaíochta Airgeadais

    Méan Fómhair 2007

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