DRAFT Policy
Asset, Attractive Items and Inventory
Management Policy
STATUS: For Uni-wide Comment 25-06-2013
NOTES: Posted to Uni wide comment
Table of Contents
Purpose .........................................................................................................................................................
Scope ............................................................................................................................................................
Legislative Context .........................................................................................................................................
Definitions ......................................................................................................................................................
Policy Statement .............................................................................................................................................
Supporting Documents ....................................................................................................................................
Responsibility .................................................................................................................................................
Promulgation ..................................................................................................................................................
Implementation ...............................................................................................................................................
Forms/Record Keeping ...................................................................................................................................
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Purpose
The University of Ballarat has a significant investment in its fixed assets, portable and attractive items and inventory. The Financial Management Act, 2009 establishes the framework under which the University must operate to ensure that this investment is properly managed, controlled and recorded.
Scope
This policy applies to all property defined as a fixed assets, portable and attractive items and inventory. All staff
who purchase, acquire, dispose of use, keep and/or manage/allocate these assets and items. Portable and attractive items include property purchased by University held funds, irrespective of the funding source for the acquisition
or the settlement method, and includes property gifted or donated to the University.
Legislative Context
- Financial Management Act 2009
Definitions
A fixed asset (also known as a non-current asset) is any item, plant or equipment which has a life expectancy (i.e.
usage period) of more than one year, with an individual value of $5,000 or greater. This definition excludes intangible assets. For intangible assets only major items of software over the value of $100,000 will be capitalised. Contact the Associate Director Financial Accounting & Systems for further advise. Individual library books will also be
considered as fixed assets. Items with a life expectancy of one year or less are considered to be consumable
items.
Warning - Uncontrolled when printed! The current version of this document is kept on the FedUni website.
Policy Code: FN1834
CRICOS Provider Number: 00103D
Page: 1 of 5
DRAFT Policy
Portable and Attractive items do not meet the asset capitalisation threshold and, consequently are expensed in
the year of acquisition. The following statements also help determine what a portable and attractive item is:
• Is a non- consumable with a value between $300 and less than $5,000 (excl GST)
• has an attractive nature
• prone to misappropriation for private use or theft
As the name suggests, these are items with an attractive nature, such as mobile phones, laptops, video camera,
projectors, printers and software.
At the discretion of the Associate Director Financial Accounting & Systems and in exceptional high risk cases nonconsumable items valued less than $300 may be deemed as Portable and Attractive Items for the purposes of this
policy.
Inventory is defined as being: The raw materials, work-in-process goods and completely finished goods that are
considered to be the portion of a business's assets that are ready or will be ready for sale. Inventory represents
one of the most important assets that most businesses possess, because the turnover of inventory represents one
of the primary sources of revenue generation and subsequent earnings for the company's shareholders/owners.
Policy Statement
The University maintains a central record of fixed assets within the Finance Unit. A record of assets and their values is required to:
a. provide information to operational units as to the assets under their control;
b. provide information for management decision-making purposes;
c. provide information for external reporting purposes;
d. enable UB to calculate annual depreciation and losses/gains on the sale of assets to allow us to comply with
statutory requirements.
This central record of fixed assets is commonly known as the Asset Register, which lists such details as description
of the asset, its location, cost, and current depreciated amount, accumulated depreciation, its estimated useful life
and serial number.
The assets of the University are classified under the following headings:
a. land (all land purchased, donated, leased or held on trust (Crown Land) is recorded). Land acquired without cost
is recorded at valuation (at the date of acquisition);
b. buildings and Infrastructure (car parks, roads and underground services);
c. Library collection (comprises books, manuscripts and tapes etc.);
d. works of art (include paintings, sculptures and tapestries) and precious objects (includes items of historical significance);
e. vehicles (includes sedans, utilities, buses and grounds vehicles);
f. leasehold improvements;
g. investment property;
h. Furniture and fittings, plant and equipment and computer equipment.
Warning - Uncontrolled when printed! The current version of this document is kept on the FedUni website.
Policy Code: FN1834
CRICOS Provider Number: 00103D
Page: 2 of 5
DRAFT Policy
i. Integral plant(Includes buildings and inclusions such as ducted air-conditioning, electrical and plumbing installations,)
The University will maintain a University wide Portable and Attractive Items register to record the receipt, movement and disposal of non-consumable items of a portable and attractive nature. Control over and safe custody of, a
Portable and attractive item, remains the responsibility of the school/portfolio who makes the purchase decision
and the Associate Director Financial Accounting & Systems, within the Finance area.
The register will record the following information:
- Date of Purchase
- ID Number
- Description of Item
- Serial Number
- Responsible Area
- Assigned Owner
- Cost (GST Exclusive)
- Disposal Date
- Disposal Method
Inventory Control is the managing and monitoring of stock either on the selling floor, or in storage at any given
time. It is important this is done efficiently because stock is the single largest asset of the business. The main purpose of stock management is to increase the store’s profit by ensuring that suitable levels of stock are in the store
at all times.
Effective Stock Control produces the following outcomes:
- Assess the performance of products
- Monitor and Limits wastage
- Maintain stock in good condition
- Monitor Customer Preferences
- Maintain stock security
Finance and Schools/Portfolios staff are responsible for conducting /co-ordinating stocktakes. Stock takes should
be conducted on an annual basis with the exception of the Cafeteria, Bar and Catering services where a rolling
stocktake is to be conducted throughout the year.
Supporting Documents
- Asset, Attractive Items and Inventory Management Procedures
- Delegations - Contract, Financial, Staffing and tender Policy
- Purchasing Policy and Procedures
Warning - Uncontrolled when printed! The current version of this document is kept on the FedUni website.
Policy Code: FN1834
CRICOS Provider Number: 00103D
Page: 3 of 5
DRAFT Policy
- Asset Disposal Form
- Portable & Attractive item Register
- Inventory Control Register
- Asset Acquisition form
- Register of Asset on Loan
- ICT Asset Disposal Process
- Asset Register
Responsibility
The Associate Director Financial Accounting & Systems is responsible for the development, compliance, monitoring
and review of this policy. They are also responsible for putting in place systems and procedures to correctly account for the fixed assets of the University.
The University will maintain a University wide Portable and Attractive Items Register to record, receipt, movement
and disposal of non-consumable items of a portable and attractive nature. This register will be subject to an annual
stock take.
Inventory and stock control will be conducted on a monthly basis. This will be co-ordinated by the Manager Hospitality and Conferencing with the co-operation of delegated officers within Finance.
All university staff who are involved in the purchasing, disposal, using, keeping, allocation and/or management of
portable and attractive items are responsible for maintaining an up to date knowledge of this policy and these procedures, to ensure the University can comply with legislative obligations regarding the holding and disposal of University property.
Responsibility for the control and safe custody of the portable and attractive item remains with the portfolio or department who makes the purchase decision/acquires the item.
Although Portable and attractive items are assigned to a custodian, the item remains the property of the
University at all times.
Promulgation
The Assest, Attractive Items and Inventory Management Policy will be communicated throughout the University of
Ballarat via:
1. Announcement on the UB News website;
2. ‘Recently Approved Documents’ webpage to alert the University-wide community of the approved Policy;
3. Inclusion in the University of Ballarat's online Policy Library;
4. Distribution of e-mails to relevant University Staff and Stakeholder.
Implementation
The Assest, Attractive Items and Inventory Management Policy will be implemented throughout the University of
Ballarat via:
Warning - Uncontrolled when printed! The current version of this document is kept on the FedUni website.
Policy Code: FN1834
CRICOS Provider Number: 00103D
Page: 4 of 5
DRAFT Policy
1. information Sessions; and/or
2. training Sessions; and/or
3. Other - please describe
Forms/Record Keeping
Title
Location
Responsible Officer
Minimum Retention Period
Asset Disposal Form
Finance
Director Finance/CFO
7 years
Portable & Attractive Item Register
Finance
Director Finance/CFO
7 years
Inventory Control Register
Finance
Director Finance/CFO
7 years
Asset Acquisition Form
Finance
Director Finance/CFO
7 years
Register of Asset on Loan
Finance
Director Finance/CFO
7 years
Warning - Uncontrolled when printed! The current version of this document is kept on the FedUni website.
Policy Code: FN1834
CRICOS Provider Number: 00103D
Page: 5 of 5