• Section 1 - Overview
• Section 2 - Definition of Assets
• Section 3 - Authority to Purchase - Assets
• Section 4 - Asset Management Responsibilities
• Section 5 - Acquisitions from Consulting Funds
• Section 6 - Acquisitions from Research or Trust Funds
• Section 7 - Acquisitions of Building Assets
• Section 8 - Depreciation of Assets
• Section 9 - Periodic Valuations
• Section 10 - Recording of Assets
• Section 11 - Updating the Asset Register
• Section 12 - Assets on Loan outside the University
• Section 13 - Disposal of Assets
• Section 14 - Insurance
• Section 15 - Stocktaking
• Section 16 - Reconciliation to General Ledger

Section 1 - Overview

(1) The University has a significant investment in its assets. The Government Sector Finance Act 2018 establishes the framework under which the University must operate to ensure that this investment is properly managed, controlled and recorded.

(2) An asset (also known as a non-current asset) is any item of plant, equipment or other infrastructure that has a life expectancy (i.e. usage period) of more than one year. Items with a life expectancy of one year or less are considered to be consumable items.

(3) The University maintains a central record of assets within the Financial Services Division. A record of assets and their values is required to:

1. Provide information to Faculties and Other Units as to the assets under their control;
2. Provide information for management decision-making purposes;
3. Provide information for external reporting purposes;
4. Enable the University to calculate annual depreciation and losses/gains on the sale of assets to allow us to comply with statutory requirements.

(4) This central record of assets is known as the Asset Register. It lists such details as description of the asset, its location, its cost, current depreciated amount, depreciation written off to date, its estimated useful life and residual value.

(5) The assets of the University are classified under the following headings:

1. Land (all land purchased, donated or held on trust (Crown Land) is recorded). Land acquired without cost is recorded at valuation (at the date of acquisition);
2. Buildings (Includes buildings and inclusions such as ducted air-conditioning, electrical and plumbing installations);
3. Infrastructure (Includes, car parks, roads and underground services);
4. Library Collection (comprises books, serials, both hardcopy and electronic, and rare books);
5. Works of Art (include paintings, sculptures and tapestries);
6. Vehicles (includes sedans, utilities, buses and grounds vehicles);
7. Computing Equipment (includes networking equipment, peripheral devices, PCs and printers);
8. Computer Systems and Software;
9. Other Equipment (includes printing machinery, photocopiers, sound systems, televisions, projectors, science and laboratory equipment, etc).

Section 2 - Definition of Assets

(6) The term “asset” applies to all equipment purchases over $5000 and equipment that continues to provide value to the University after one year of its initial purchase that cost between $500 and $5000, eg. a PDA, mobile phone, camera, lawn mower, scientific weighing instruments etc.

(7) The following additional comments are provided to assist staff in recognising what constitutes an asset:

1. Computer Systems & Software – The assets capitalised by the University will typically be its major corporate systems. These include: Finance (JD Edwards), Human Resources (Concept/Alesco), Student Administration (SMP), Records Management (ImageReal), Timetabling (Syllabus Plus), Management Information (COGNOS), Workers’ Compensation (SIMS). Where any other software purchase exceeds $5,000, it should be referred to the Treasury Unit for advice on whether it should be capitalised. Where these systems are purchased, the licence and initial implementation costs will be capitalised, whilst software maintenance and support charges will be expensed. Where systems are developed in-house, the development costs will be capitalised, with ongoing support costs expensed. The rate of depreciation of computer systems and software is required by accounting standards to be reviewed annually. Consideration will be given to technical obsolescence and comparative inefficiency of systems as a result of technological advances and improvements;
2. Donated Assets - Assets received by way of donation with a value in excess of $5,000 must be the advised to the Treasury Unit by Faculties/Units. An estimate of the value of the donated asset should be supplied for review by Financial Services. The procedure for valuation is detailed below;
3. Loaned Assets - Assets may be loaned to the University from time to time. Staff must ensure that these assets are cared for and protected in the same way as assets owned by the University. A record of the following information should be maintained by Faculties and Units for assets on loan to the University:
4. A description of the asset including its make, model and serial number;
5. A contact person, phone number and email address for the organisation loaning the asset.
6. Leased Assets – These are not currently recorded in the assets register, but it is intended to include these in due course. Assets currently leased by the University include computers, scanners, printers, copiers, and motor vehicles;
7. Additional information to be stored and reportable includes lease cost details, running cost details, utilisation statistics, and in the case of computers, installed software details;
8. Additions to existing assets - Upgrades or additions to existing assets over $5,000 in value and upgrades or additions that will take the original asset value over the $5,000 threshold by its inclusion must be added to the Asset Register. Advice must be provided to the Treasury Unit ;
9. Constructed Assets - Assets that are constructed within the University are to be entered into the Asset Register when the value of that constructed asset exceeds $5,000. This typically occurs at completion of the project;
10. Part Payment for Assets - Assets for which deposits have been paid are not added to the Asset Register until full payment has been made and the asset is installed and ready for use;
11. Major Periodic Maintenance (MPM) - MPM that equates to the replacement of a component asset e.g. replacement of a discrete sub-asset should be capitalised. MPM that increases an asset’s originally assessed standard of performance or useful life should also be capitalised.

Section 3 - Authority to Purchase - Assets

(8) The Authority to Purchase is vested in nominated positions as outlined in the University’s Delegations of Authority Policy Section 2 'General Expenditure’.

(9) The University’s Purchasing & Procurement Policy outlines the procurement action that must be followed depending on the level of expenditure involved.

(10) Special Conditions:

1. All motor vehicle purchases MUST be co-ordinated through the University’s Fleet Manager in Financial Services. Only the Fleet Manager is authorised to arrange for purchase quotes on vehicles.
2. Under no circumstances should equipment over $2,000 in value be purchased with a University Corporate Credit Card. Please refer to the Corporate Credit Card Policy.
3. Units are responsible for ensuring that all asset purchases meet relevant Occupational Health and Safety requirements. If there is any doubt over the safety of an asset proposed for purchase, technical advice should be sought from the University’s Occupational Health and Safety Unit. All asset purchase approvals should include the Occupational Health and Safety Unit’s pre-purchase confirmation checklist.

Section 4 - Asset Management Responsibilities

(11) Acquisition - In making the decision to acquire an asset the following fundamental principles should be carefully considered:

1. The purpose for which the fixed asset is required is in keeping with the objectives of the University and will provide significant, direct and tangible benefit to it;
2. The purchase is absolutely necessary as there is no alternative University asset that could be upgraded or adapted;
3. The fixed asset is appropriate to the task or requirement and is cost effective over the life of the asset;
4. The fixed asset is compatible with existing equipment and will not result in unwarranted additional expenditure on other assets or resources;
5. Space and other necessary facilities to accommodate the asset are in place;
6. The most suitable and appropriate type, brand, and model etc. has been selected.  

(12) Utilisation - All assets should be used for the purposes they were acquired. Asset performance should be regularly reviewed to identify under-utilised and under-performing assets. The reasons for this should be critically examined and appropriate action taken.

(13) Maintenance and Repairs - All plant and equipment should be maintained in good working order by care and servicing as recommended in manufacturer's manuals. The most efficient repair and maintenance strategy needs to be established and adopted. An operation and maintenance plan establishing responsibility and standards for the level of use, condition, servicing and performance should be developed.

(14) Occupational health and safety considerations should be included in asset operation and maintenance plans. A number of guidelines to assist staff are available at: http://staff.uow.edu.au/ohs/. In particular, reference should be considered to the guidelines for laboratory safety, electrical safety and plant & equipment safety.

(15) Supplier maintenance contracts should be obtained where considered to provide the most economic servicing and repair. Details of such contracts should be advised to the Commercial Analyst, Financial Services, for inclusion in the University’s contracts register. Any warranties applying should also be considered when assets require repair.

(16) Safeguard – Faculty and Unit Heads are responsible for the security of assets under their control. This includes ensuring that assets are used only by authorised persons, safeguarded against theft and damage and only removed from University premises with approval.

(17) All staff are responsible for the care and protection of University assets. Every person who utilises the property of the University should do so with utmost care and consideration and in a manner that ensures the property will be subjected to the minimum wear and tear or damage.

(18) The safeguard of equipment such as PCs, laptops and video cameras is particularly important not only because of their attractive and portable nature but also because of the confidential information that they may contain. Steps must be taken to limit the risk of loss or theft including:

1. keeping offices locked when unattended;
2. not leaving items unattended in public places, particularly in motor vehicles;
3. when travelling, by transporting laptops in other than normal laptop bags or cases and removing all confidential information not required for the trip.

(19) The primary role of the University Security Service is the protection of people and property. Any thefts, or other suspicious activities in regard to assets, should be reported to Security as soon as staff are aware of the situation.

(20) Software Asset Management – The University is required to monitor software installations to ensure that only authorised and licensed software is installed by appropriate staff members. Management of software should be in accordance with Software Asset Management Policy and Procedures issued by Information Technology Services from time to time.

(21) Faculty/Unit Contact - A staff position/s should be nominated in each Faculty or Unit to have responsibility for managing the assets for that area, ensuring compliance with related procedures, and being a local contact for the Treasury Unit .

Section 5 - Acquisitions from Consulting Funds

(22) Some Faculties and Divisions have established consulting fund accounts from which assets have been purchased. Assets purchased in this manner remain University property, must be recorded in the Asset Register and are subject to the provisions of this Policy.

Section 6 - Acquisitions from Research or Trust Funds

(23) All assets purchased from funds administered by the University are formally the property of the University (except where an agreement to the contrary is part of the conditions associated with a particular contract - such assets should be recorded in the same way as assets on loan to the University). Assets purchased in this manner remain University property, must be recorded in the Asset Register and are subject to the provisions of this policy.

Section 7 - Acquisitions of Building Assets

(24) Acquisitions of building assets (purchases and leases) must be reported to the Financial Services Division and Infrastructure and Property Division to provide information required for legislative requirements. Forms to capture the information are available from the Financial Services Division and B&G for this purpose.

(25) The University must meet legislative reporting requirements under the National Greenhouse and Energy Reporting Act 2007 (NGER Act 2007) for operations conducted at all its leased and purchased properties.  This reporting is prepared for UOW by the Environmental and Sustainability Initiatives Unit in the Infrastructure and Property Division.

(26) The Infrastructure and Property Division maintains a database of all UOW buildings/properties (Archibus). The information/data in Archibus is required for reporting purposes. The annual TEFMA Benchmarking Survey provides comparative data for participating institutes on facilities management services. The Capital Assets Management Survey which is used to prepare an Institutional Performance Portfolio that determines future funding from DEEWR. The Government Property Register (GPR) is a database of all NSW Government agencies owned or leased properties.     

Section 8 - Depreciation of Assets

(27) Depreciation is the accounting process used to allocate the cost to particular accounting periods of 'using up' the service potential of the asset over its useful life. It is not a process that provides funding for future asset purchases. The University depreciates those assets deemed to be depreciable on a straight-line basis i.e. over time basis with the following asset classes and depreciation rates applying

1. Details of depreciation rates for major asset categories are as follows:

(46) Depreciation charges commence at the beginning of the month in which the asset is first put to use or held ready for usage. No depreciation charge is assigned in the month of the disposal of an asset that has not already been fully depreciated. All depreciation accounting is processed centrally by Financial Services.

Section 9 - Periodic Valuations

(47) Asset values and their remaining useful lives need to be regularly reviewed to ensure that they reflect a true financial position. Assets that do not lend themselves easily to a depreciation calculation will be valued periodically.  The current method for valuation is deemed cost.

Section 10 - Recording of Assets

(48) The University uses the JD Edwards (JDE) Financials Fixed Assets module to record assets. It is maintained by the Treasury Unit . It is essential that asset purchases be coded to the correct object code for fixed assets. This ensures that asset transactions are identified and correctly registered.

Section 11 - Updating the Asset Register

(57) All assets must be recorded on the University’s asset register. It is important that the following steps are taken to ensure detailed and relevant information about each asset purchase is forwarded to the Treasury Unit .

(58) Record specific information within JDE, eg. description, make, model and serial number. It is essential that the description recorded is meaningful not only to department staff but also to all staff that may need to work with the asset.

(59) For users of the eProcurement - Manual Invoice Entry process, asset information including description, make, model and serial number is obtained from invoice details that have been scanned in ImageReal.

(60) Payments for assets that are not made through eProcurement are forwarded to Accounts Payable, Financial Services for processing. Asset information is obtained from these invoices usually prior to scanning into ImageReal.

(61) Where invoice details do not include the serial number of an asset, this information must be advised to the Treasury Unit.

(62) This will ensure that the asset labels are meaningful and relevant to the item that you have purchased. Asset labels are issued to departments by the Treasury Unit . Staff should ensure these are attached as soon as possible to the asset in question for identification and stocktaking purposes.

(63) It is intended to assign physical location fields to assets. When these are available, physical location will be an essential element of asset information.

Section 12 - Assets on Loan outside the University

(64) Loans to Outside Institutions and Individuals - items lent to other organisations or individuals outside University require adequate all risks insurance to be taken out by the borrower and the approval of the Chief Financial Officer.

(65) All expenses associated with the removal and return are at the cost of the borrower.

(66) Assets held off Campus - University assets may be installed/located off-campus if such location is justified and is approved by the relevant Dean or Director.

(67) Where approval has not been obtained, borrowers may be personally responsible for items under their control and may also liable for any loss or damage not recoverable from the University's insurers.

(68) Faculty or Unit Heads should ensure a local "Register of Assets on Loan" is maintained for such purposes. It is suggested that at a minimum the following details need to be recorded:

1. date of loan;
2. asset description;
3. Asset serial No.;
4. Asset No.;
5. borrower's name;
6. borrower's signature;
7. borrower's location;
8. approving officer's name and signature;
9. date of return;
10. acquitting officer's signature.

(69) When physical location codes are implemented, it will be necessary to update the asset register details to record the staff member’s home for the relevant asset’s location.

(70) Assets on loan are subject to periodic stock take and their temporary return for this purpose may be required.

(71) Should a staff member holding an asset on loan leave the University then the relevant Faculty or Unit Head must ensure that the asset is returned prior to but not later than their last day of service.

Section 13 - Disposal of Assets

(72) The University maintains a separate policy covering disposal of assets. The Asset Disposal Policy also details procedures for transfer of assets within the University.

Section 14 - Insurance

(73) The University insures all assets subject to significant risk. However, all losses are subject to a deductible of $5,000 per claimed event. As a result Units that incur a loss will only receive the insurance replacement value less the deductible amount.

(74) The University’s Financial Services Division is responsible for arranging all insurance policies. Under no circumstances should staff arrange insurance coverage without prior consultation and approval from the Financial Services Division.

(75) Further details regarding insurance policies held by the University are provided at the University’s Insurance web page.

(76) Acquisitions of building assets must be reported to Financial Services Division to be included in the University insurance schedules.

Section 15 - Stocktaking

(77) A stock take of fixed assets on the University Asset Register will be undertaken on a progressive cyclical basis during the year or at a selected stock take date. All fixed assets will be included in a stocktake at least once over a five year cycle.

(78) Stock takes are the responsibility of Faculties and Divisions. However, the Financial Services Division, through the Treasury Unit, will co-ordinate the stock take and provide appropriate documentation and support to facilitate the stock take.

Section 16 - Reconciliation to General Ledger

(79) The Financial Services Division is responsible for reconciling the Asset Register with the General Ledger asset accounts on a monthly basis. Any discrepancies arising are investigated and corrective action taken to bring the two records into balance.