Asset Management
Content
What is Asset Management?
Asset Management is an important part of the financial sector throughout the world. It is considered to be the systematic process of long term maintenance of assets. There are various asset management services provided by the companies for different sectors. These sectors have their own assets, which is very difficult to manage. So, the assets are managed by various departments under various heads.
Role of Finance Department in Assets Management
Purchasing departments handle all of the paperwork involved with purchasing and delivery of supplies and materials. Purchasing ensures timely delivery of materials from vendors generates and tracks purchase orders and works alongside the receiving department and the accounts payable department to ensure that promised deliveries, received in full and are being paid for on time. In a small business, this means working closely with the accounting department to ensure that there is sufficient capital to buy the items purchased and that cash is flowing smoothly and all payments are made on time. Thus the assets are also maintained under the control of Finance department. The Asset Management also Includes
Responsibilities for Asset Management
All officers who are involved in purchasing, disposal, using, keeping and managing assets should be aware of, and fully understand, their responsibilities in the control and management of assets.
In accordance with the provisions of the Public Finance and Audit Act, officers of the University (Accounting Officers) are responsible for the efficient, effective and economical use and safe keeping of the University's assets and can be held legally responsible for any loss, damage or misuse of such assets. The following are the other responsibilities To email to Division/Office on bimonthly basis an Asset Data Form (Excel) to collect asset information on transfers, write off and sale on capital assets. To follow up on response within 14 working days. To email to Division/Office fortnightly, an Asset Data Form (Excel) listing purchases for the last fortnight and follow up response within 5 working days on serial number, location and custodian of capital assets. To provide reports to the University Executive. To undertake, in conjunction with asset liaison officers of each Division/Office, regular stock takes of capital assets and ensure Stock take sheets are signed by the asset liaison officer. Complete Stock take of all capital assets are conducted on an annual cycle. To provide on-going training to appropriate Division/Office staff on the maintenance of attractive assets carried out by them To carry out a sample check of attractive items maintained by Divisions/Offices and ensure their inclusion in stock take certificate. To provide two copies of a list of capital asset to Heads of Division/Offices in December for their review and confirmation. The last Stock take date will be recorded against each asset. Heads of Divisions/Offices are required to sign and return one copy to the Asset Management Section, not later than 5 working days after the financial year ended 31 December. Any further additions, deletions and amendments should be included on the copy returned to Asset Management. This process is to facilitate the signing and return of the Management Representation statement to the Vice Chancellor, as required for external audit purposes.
Responsibilities of Asset Liaison Officers in a Division/Office/Department
Asset liaison officers in a Division/Office/Department have the following responsibilities:
To match assets received with a purchase requisition, purchase order and stores delivery advice. To ensure assets received are in good working order. To advise the Asset Management Section not later than 14 days after every second month of details of assets transferred, written off or sold. Use the Asset Data Form (Excel). To advise the Asset Management Section fortnightly, within 5 working days on the serial number, location and custodian of all capital assets on the electronic list, and any capital assets received whether by transfer, purchase, donation or construction not on the electronic list provided. Use the Asset Data Form (Excel). To ensure assets are readily available for stocktaking purposes and to assist with the stocktaking. To ensure that assets are readily identifiable and records are kept of unique identifying numbers. To ensure assets are adequately secured. The level of security required varies for each asset, depending on such factors as asset type, value, attractiveness and portability. On completion of an individual’s service with the University, to ensure the return of all University items to the Division/Office concerned.
Proper reporting of the asset should be done to the custom authority. It is mandatory that the asset should be properly labeled with the asset number. In order to transfer an Asset from one unit to another, it has to be properly verified and it is required to provide IUT (Inter Unit Transfer) documents. Which means? “Inter Unit Transfer of Capital goods from one EOU/STPI unit to another EOU/STPI unit” with the approval of Concerns Authority. So, now the Asset Verification process has come into existence.
Assets Verification
Usually there are two ways under which an asset can be verified. They are; Physical verification,
Documental verification.
Physical Verification includes verification of asset with the help of bond registers to know whether the assets are bonded or de-bonded or re-exported, import registers, custom documents, shifting documents etc., which are available with the Logistics Department.
Process Flow
The following is the process flow of their task, to find the assets ASSET VERIFICATION WORK FLOW Assets being reconciled with availability
Verification as per Assets owners list
Assets Written Off
Transferred to other Location/other Associate Non-Traceable Assets Mailing to Asset owners to know about availability
Traceable Assets Updating the Assets location
If asset is available, updating asset details with its location
If asset is not available; cost of asset will be recovered from their department budget
Task 1:
The task started with 8185 assets that are reminded as non-traceable.
The company found the P.O (Purchase Order) numbers with the help of asset number by using the SAP tool.
By using PO numbers the Company found the location of assets, shifting invoice number and cross verified it with the physically updated worksheet.
References:
SAP Log on access. PI0 (this access displays Asset master data) Duty free sheet (worksheet that contains Import and Shifting details of Assets) IUT sheet (worksheet that contains IUT and location details).
Format of Reference files
Task 2:
Verification of lab equipments: Found the assets supplier name and their location detail with the help of P.O number by using the SAP tool The assets were categorized into Bonded, De-bonded, IUT transfer, or locally purchased Format of Worksheet
References:
SAP Log on access - PEI( this access displays Asset master data) Duty free sheet (worksheet that contains Import and Shifting details of Assets) Physically updated IUT worksheet. Shifting invoice Annexure.
Task 3:
FOC Loan Assets: Found the new bond number & new bond date with help of various annexure given by Logistics department. For remaining assets the Company verified the documents physically Physical document:
Bill of entry 2010-13
Asset Management is an important part of the financial sector throughout the world. It is considered to be the systematic process of long term maintenance of assets. There are various asset management services provided by the companies for different sectors. These sectors have their own assets, which is very difficult to manage. So, the assets are managed by various departments under various heads.
Role of Finance Department in Assets Management
Purchasing departments handle all of the paperwork involved with purchasing and delivery of supplies and materials. Purchasing ensures timely delivery of materials from vendors generates and tracks purchase orders and works alongside the receiving department and the accounts payable department to ensure that promised deliveries, received in full and are being paid for on time. In a small business, this means working closely with the accounting department to ensure that there is sufficient capital to buy the items purchased and that cash is flowing smoothly and all payments are made on time. Thus the assets are also maintained under the control of Finance department. The Asset Management also Includes
Responsibilities for Asset Management
All officers who are involved in purchasing, disposal, using, keeping and managing assets should be aware of, and fully understand, their responsibilities in the control and management of assets.
In accordance with the provisions of the Public Finance and Audit Act, officers of the University (Accounting Officers) are responsible for the efficient, effective and economical use and safe keeping of the University's assets and can be held legally responsible for any loss, damage or misuse of such assets. The following are the other responsibilities To email to Division/Office on bimonthly basis an Asset Data Form (Excel) to collect asset information on transfers, write off and sale on capital assets. To follow up on response within 14 working days. To email to Division/Office fortnightly, an Asset Data Form (Excel) listing purchases for the last fortnight and follow up response within 5 working days on serial number, location and custodian of capital assets. To provide reports to the University Executive. To undertake, in conjunction with asset liaison officers of each Division/Office, regular stock takes of capital assets and ensure Stock take sheets are signed by the asset liaison officer. Complete Stock take of all capital assets are conducted on an annual cycle. To provide on-going training to appropriate Division/Office staff on the maintenance of attractive assets carried out by them To carry out a sample check of attractive items maintained by Divisions/Offices and ensure their inclusion in stock take certificate. To provide two copies of a list of capital asset to Heads of Division/Offices in December for their review and confirmation. The last Stock take date will be recorded against each asset. Heads of Divisions/Offices are required to sign and return one copy to the Asset Management Section, not later than 5 working days after the financial year ended 31 December. Any further additions, deletions and amendments should be included on the copy returned to Asset Management. This process is to facilitate the signing and return of the Management Representation statement to the Vice Chancellor, as required for external audit purposes.
Responsibilities of Asset Liaison Officers in a Division/Office/Department
Asset liaison officers in a Division/Office/Department have the following responsibilities:
To match assets received with a purchase requisition, purchase order and stores delivery advice. To ensure assets received are in good working order. To advise the Asset Management Section not later than 14 days after every second month of details of assets transferred, written off or sold. Use the Asset Data Form (Excel). To advise the Asset Management Section fortnightly, within 5 working days on the serial number, location and custodian of all capital assets on the electronic list, and any capital assets received whether by transfer, purchase, donation or construction not on the electronic list provided. Use the Asset Data Form (Excel). To ensure assets are readily available for stocktaking purposes and to assist with the stocktaking. To ensure that assets are readily identifiable and records are kept of unique identifying numbers. To ensure assets are adequately secured. The level of security required varies for each asset, depending on such factors as asset type, value, attractiveness and portability. On completion of an individual’s service with the University, to ensure the return of all University items to the Division/Office concerned.
Proper reporting of the asset should be done to the custom authority. It is mandatory that the asset should be properly labeled with the asset number. In order to transfer an Asset from one unit to another, it has to be properly verified and it is required to provide IUT (Inter Unit Transfer) documents. Which means? “Inter Unit Transfer of Capital goods from one EOU/STPI unit to another EOU/STPI unit” with the approval of Concerns Authority. So, now the Asset Verification process has come into existence.
Assets Verification
Usually there are two ways under which an asset can be verified. They are; Physical verification,
Documental verification.
Physical Verification includes verification of asset with the help of bond registers to know whether the assets are bonded or de-bonded or re-exported, import registers, custom documents, shifting documents etc., which are available with the Logistics Department.
Process Flow
The following is the process flow of their task, to find the assets ASSET VERIFICATION WORK FLOW Assets being reconciled with availability
Verification as per Assets owners list
Assets Written Off
Transferred to other Location/other Associate Non-Traceable Assets Mailing to Asset owners to know about availability
Traceable Assets Updating the Assets location
If asset is available, updating asset details with its location
If asset is not available; cost of asset will be recovered from their department budget
Task 1:
The task started with 8185 assets that are reminded as non-traceable.
The company found the P.O (Purchase Order) numbers with the help of asset number by using the SAP tool.
By using PO numbers the Company found the location of assets, shifting invoice number and cross verified it with the physically updated worksheet.
References:
SAP Log on access. PI0 (this access displays Asset master data) Duty free sheet (worksheet that contains Import and Shifting details of Assets) IUT sheet (worksheet that contains IUT and location details).
Format of Reference files
Task 2:
Verification of lab equipments: Found the assets supplier name and their location detail with the help of P.O number by using the SAP tool The assets were categorized into Bonded, De-bonded, IUT transfer, or locally purchased Format of Worksheet
References:
SAP Log on access - PEI( this access displays Asset master data) Duty free sheet (worksheet that contains Import and Shifting details of Assets) Physically updated IUT worksheet. Shifting invoice Annexure.
Task 3:
FOC Loan Assets: Found the new bond number & new bond date with help of various annexure given by Logistics department. For remaining assets the Company verified the documents physically Physical document:
Bill of entry 2010-13
