• Section 1 - Purpose and Context
• Section 2 - Definitions
• Section 3 - Policy Statement
• Part A - Authority to Purchase Assets
• Part B - Recording of Assets
• Part C - Updating the Asset Register
• Part D - Asset Management Responsibilities
• Operational Unit Contact
• Part E - Acquisitions from Consulting Funds
• Part F - Acquisitions from Research or Trust Funds
• Part G - Stocktaking
• Part H - Depreciation of Assets
• Part I - Periodic Valuations
• Part J - Assets on Loan Outside UWS
• Part K - Disposal of Assets
• Authority to Trade-In, Sell, Dispose or Destroy Assets
• Motor Vehicles
• Computing Equipment
• All Other Plant and Equipment
• Auction
• Tender
• Private Sale
• Donation
• Destruction
• Transfers within UWS
• Transfers to Other Organisations
• Theft and Loss of Assets
• Authority to Write-off Plant and Equipment Losses, Thefts or Destruction
• Proceeds on Sale of Assets
• Advice of Disposal
• Part L - Insurance
• Part M - Reconciliation to General Ledger
• Section 4 - Procedures
• Section 5 - Guidelines

Section 1 - Purpose and Context

(1) The University of Western Sydney (UWS) has a significant investment in its fixed assets. The Public Finance and Audit Act, 1983 establishes the framework under which the University must operate to ensure that this investment is properly managed, controlled and recorded.

Section 2 - Definitions

(2) A fixed asset (also known as a non-current asset) is any item of plant or equipment which 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.

Section 3 - Policy Statement

(3) The University maintains a central record of fixed assets within the Purchasing Unit. A record of assets and their values is required to:

1. provide information to operational 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 UWS 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 fixed assets is commonly known as the Asset Register, which lists such details as description of the asset, its location, 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 and Infrastructure (Includes buildings and inclusions such as ducted air-conditioning, electrical and plumbing installations, car parks, roads and underground services);
3. Library collection (comprises books, manuscripts and tapes etc.);
4. works of art (include paintings, sculptures and tapestries);
5. vehicles (includes sedans, utilities, buses and grounds vehicles);
6. printing equipment (includes printing machinery and photocopiers);
7. computing equipment (includes networking equipment, peripheral devices, PCs and printers);
8. audio-visual equipment (includes sound systems, televisions, projectors etc);
9. science equipment (includes all science and laboratory equipment);
10. other equipment (includes all items not falling into the above categories);
11. precious objects (includes items of historical significance);
12. buildings acquired under a financial lease arrangement;
13. leasehold improvements;
14. investment property;
15. Non-current assets classified as held for sale.

(6) The University's furniture and fittings will be expensed and not capitalised where their individual value does not exceed the University's $5,000 capitalisation threshold.

Part A - Authority to Purchase Assets

(7) The authority to purchase is vested in nominated positions as outlined in the UWS Delegations (Administrative) Policy.

Part B - Recording of Assets

(8) Assets costing $2,000 and over - The University uses the Oracle Financials Fixed Assets module to record assets.

(9) Assets costing $2,000 or more and having a useful life of more than two years must be recorded in the asset register. Assets costing $5,000 or more are depreciated. Assets costing between $2,000 and $5,000 are treated as 'non-capital' items and are expensed at purchase and are not depreciated. They must still appear in the asset register.

(10) The account codes used are:

1. 0531 - Land
2. 0541 - Buildings
3. 0701 - Library Collection
4. 0721 - Works of Art
5. 0586 - Motor Vehicles
6. 0601 - Printing Equipment
7. 0581 - Computing Equipment
8. 0596 - Audio-Visual Equipment
9. 0641 - Science Equipment
10. 0621 - Other Equipment
11. 0774 - Buildings under Finance Lease
12. 0573 - Leasehold Improvements
13. 0761 - Investment Property
14. 0410 - Non-current assets classified as held for sale

(11) Assets costing between $500 and $2,000 - operational units are required to maintain local asset registers for items costing between $500 and $2,000 in value and having a life expectancy of more than 12 months. Items assessed as being high risk from a theft viewpoint should be recorded even if below the $500 threshold e.g. portage and common use items such as hand drills, cameras and printers.

(12) Local asset registers should contain sufficient information to enable positive identification of assets. It is suggested that at a minimum the following details need to be recorded:

1. a unique asset No.;
2. date of acquisition;
3. cost;
4. description;
5. serial number;

Part C - Updating the Asset Register

(13) The Finance Office must be advised of the details of any new asset over $2,000 in value.

(14) New assets purchased by way of an official UWS Purchase Order or payment made through the Accounts Payable section are automatically identified as part of the operational processing within the Finance Office.

(15) Assets received by way of donation, construction or purchased by University Corporate Card with a value in excess of $2,000 must be the subject of advice from operational units.

(16) An Asset Acquisition Form is available on the Finance Office website.

(17) Donated Assets - assets donated to the University with a value in excess of $2,000 must be entered into the Asset Register. Advice by way of a completed Asset Acquisition Form must be provided to the Finance Officer, Fixed Assets.

(18) Leased Assets - Only assets which are subject to a Finance Lease are entered into the primary Asset Register. Assets which are subject to operating leases are entered into a subsidiary Asset Register.

(19) Assets on Loan to UWS - Assets on loan to UWS are not added to the Asset Register. They should be recorded on the local asset register and shown as 'On Loan to UWS'.

(20) Additions to existing assets - Upgrades or additions to existing assets over $2,000 in value and upgrades or additions that will take the original asset value over the $2,000 threshold by its inclusion must be added to the Asset Register. Advice by way of a completed Asset Acquisition Form must be provided to the Finance Officer, Fixed Assets.

(21) Constructed Assets - Assets which are constructed within UWS are to be entered into the Asset Register when the value of that asset exceeds $2,000. Advice by way of a completed Asset Acquisition Form must be provided to the Finance Officer, Fixed Assets.

(22) Part Payment for Assets - Assets for which deposits etc have been paid are not added to the Asset Register until full payment has been made and presumably the asset installed and ready for use.

(23) Major Periodic Maintenance (MPM) - MPM which equates to the replacement of a component asset e.g. replacement of a discrete sub-asset should be capitalised. MPM which increases an asset's originally assessed standard of performance or useful life will also be capitalised.

Part D - Asset Management Responsibilities

(24) 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.

(25) 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.

(26) 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.

(27) Supplier maintenance contracts should be obtained where considered to provide the most economic servicing and repair. A record of such contracts should be maintained to avoid needless expenditure on non-contracted repairers. Similarly, warranties applying should also be recorded.

(28) Safeguard - 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.

(29) 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 which ensures the property will be subjected to the minimum wear and tear or damage.

(30) The safeguard of equipment such as PCs, laptops, tablets and 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 and when travelling;
2. not leaving items unattended in public places, particularly in motor vehicles;
3. in the case of portable items, such as laptops, tablets, and cameras etc., by transporting them in other than normal laptop bags or cases and removing all confidential information not required for the trip.

(31) As far as possible all non-leased assets should be permanently marked as being the property of the University of Western Sydney by either engraving or some other effective means.

Operational Unit Contact

(32) A staff position/s should be nominated in each operational unit (where necessary on a campus by campus basis) to have responsibility for managing the assets for that area, ensuring compliance with related procedures, performing stocktakes and being a local contact for the Finance Officer, Fixed Assets.

Part E - Acquisitions from Consulting Funds

(33) Some operational units have established consulting fund accounts from which assets e.g. computers have been purchased. Assets purchased in this manner are still University property, must be recorded in the Asset Register and are subject to the provisions of this policy.

Part F - Acquisitions from Research or Trust Funds

(34) 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). Assets purchased in this manner are still University property, must be recorded in the Asset Register and are subject to the provisions of this policy.

Part G - Stocktaking

(35) A stocktake of fixed assets appearing on the University Asset Register (cost $2,000 and over) will be undertaken on a progressive cyclical basis during the year or at a selected stocktake date.

(36) Stocktakes are the responsibility of operational units. However, the Finance Office through the Finance Officer, Fixed Assets will coordinate the stocktake and provide appropriate documentation and support to facilitate a successful outcome. Such stocktakes will be subject to subsequent sample checking by the Finance Officer, Fixed Assets and Office of Audit and Risk Assessment.

(37) A stocktake of minor assets (value below $2,000) appearing on local asset registers shall be taken on an annual basis within operational units. It is the responsibility of each holding area to arrange this stocktake and to maintain records of the check for audit purposes.

Part H - Depreciation of Assets

(38) 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 using the rates applied in the Applicable Depreciation Rate Table.

(39) Land, works of art, precious objects and rare books forming part of the Library Collection and non-current assets classified as held for sale are not depreciated.

(40) 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 which has not already been fully depreciated. All depreciation accounting is processed centrally by the Finance Office.

Part I - Periodic Valuations

(41) 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.

(42) The Finance Office arranges for valuation, by an independent professional valuer of land and buildings, artwork and precious objects every three years. Any changes resulting from the periodic valuation is reflected in the Asset Register and depreciation provision.

Part J - Assets on Loan Outside UWS

(43) Loans to outside institutions and individuals - items lent to other organisations or individuals outside UWS require adequate all-risks insurance to be taken out by the borrower and the approval in accordance with Schedule A of the Delegations (Administrative) Policy. All expenses associated with the removal and return are at the cost of the borrower.

(44) Assets held off-campus - University assets may be installed/located off-campus if such location is justified and is approved by the relevant Deputy Vice-Chancellor, Pro Vice-Chancellor, Dean or Director.

(45) Borrowers are personally responsible for items under their control and are also liable for any loss or damage not recoverable from the University's insurers.

(46) Loans likely to exceed six months must be recorded on the University Asset Register and therefore advice needs to be provided to the Purchasing Unit within the Finance Office.

(47) Loans under six months need only be recorded within the area of responsibility. A local "Register of Assets on Loan" should be maintained by each unit head 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

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

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

Part K - Disposal of Assets

Authority to Trade-In, Sell, Dispose or Destroy Assets

(50) The delegated authority to trade-in assets is outlined in the Delegations (Administrative) Policy.

(51) The delegated authority to sell, destroy or otherwise dispose of assets is outlined in the Delegations (Administrative) Policy.

(52) All such disposals are subject to be coordinated by the Purchasing Unit.

Motor Vehicles

(53) All motor vehicle disposals must be coordinated through the Purchasing Unit in the Finance Office.

Computing Equipment

(54) Information Technology Procurement Unit (ITP) coordinates the disposal of all University Non - Leased IT assets.

(55) Details of the IT asset disposal process are located at the ITP website.

(56) Details of the return process for leased computing equipment are available at the ITP website.

All Other Plant and Equipment

(57) All other plant and equipment will be subject to whichever of the following methods offers the best return to the University.

(58) Disposal is to be coordinated by the Purchasing Unit.

Auction

(59) Auctioneers holding a government contract for such a service must be used.

Tender

(60) Where the calling of tenders is the desired method of disposal the Procurement Policy must be strictly observed.

Private Sale

(61) This method is only acceptable in a limited number of circumstances e.g.

1. there is only one apparent customer;
2. there is an established market price for the asset;
3. the cost by sale by another means would likely exceed the anticipated proceeds;
4. a sale to an educational or charitable organisation is contemplated.

Donation

(62) Donations to charities or community organisations should only be considered where no sales market exists or where the costs of alternate methods of disposal exceed the expected proceeds.

Destruction

(63) Disposal by this method should only be used when all other methods have been explored. All arrangements for destruction must be carried out under the supervision of the Finance Officer, Fixed Assets.

Transfers within UWS

(64) Often particular assets considered obsolete or surplus to requirements in a particular operational unit may be of value and use to another operational unit. Where it appears that this may be the case, advice should be provided to the Finance Office who will arrange an internal UWS advertisement seeking expressions of interest.

(65) In exceptional circumstances a transfer of funds may be required and the Deputy Vice-Chancellor and University Provost will arbitrate if necessary. The receiving operational unit will be responsible for any removal and installation costs.

Transfers to Other Organisations

(66) As a method of disposal of an asset, due regard should be given to its transfer to other government bodies even if fair market value cannot be obtained for such transfer.

(67) Should an asset have been purchased from funding provided for a research project and this project subsequently is transferred to another organisation the following conditions must apply before the assets may be transferred:

1. the particular grant or contract must contain a condition that the assets are not the property of the University;
2. the assets must have been purchased from external research funds;
3. Agreement must be reached between UWS and the other institution. The Deputy Vice-Chancellor and University Provost, the Vice-President, Finance and Resources or Director, Financial Operations are delegated to commit the University in such negotiations.

Theft and Loss of Assets

(68) The Director, Campus Safety and Security and the Accountant, Tax and Insurance are to be notified immediately of cases of theft or malicious damage of UWS assets. The responsible unit head is to prepare a written report for submission to the relevant delegate seeking approval for write-off action and for submission with subsequent insurance claims. The report should cover all relevant matters including a recommendation to refer the matter to the Police if appropriate.

Authority to Write-off Plant and Equipment Losses, Thefts or Destruction

(69) The delegated authority to approve write-offs in respect of plant or equipment losses, thefts or destruction, provided that all reasonable recovery action has been taken, is outlined in the Delegations (Administrative) Policy.

(70) For the purposes of this policy the monetary limit relates to the original purchase price of the plant or equipment.

(71) All exercises of this delegation are to be reported to the Finance and Investment Committee.

Proceeds on Sale of Assets

(72) Any revenue obtained from the disposal of an asset will in normal circumstances be credited to the Centre/Project which originally purchased the asset.

Advice of Disposal

(73) When operational units dispose of an asset whether by sale, transfer, loss, theft, trade-in or destruction they must provide written advice to the Finance Officer, Fixed Assets.

(74) An Asset Disposal Form is available at the Finance Office website or by clicking the following link: Asset Disposal Form.

Part L - Insurance

(75) The University insures all assets subject to significant risk. However, all losses are subject to a deductible of $10,000 per claimed event. As a result Operational units that incur a loss will only receive the insurance replacement value less the deductible amount.

Part M - Reconciliation to General Ledger

(76) The Finance Office 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.

Section 4 - Procedures

(77) Nil.

Section 5 - Guidelines

(78) Nil.