Fixed Assets Policy

FIXED ASSETS : POLICY STATEMENT

Definition

A Fixed Asset is defined as an "item" of a capital nature which costs in excess of £10,000 (including VAT).Such items presently come under the following categories:

	Estimated Life
Freehold buildings	50 years
Leasehold buildings	Term of the lease
Motor vehicles	4 years
Furniture, fittings and equipment	5 years
Plant and machinery	5 years
Computers	3 years

Recording of Fixed Assets

All assets will be recorded on an ongoing basis in a Fixed Asset Register. A separate Fixed Asset Register will be maintained at each Campus and in Central Finance. Each Register will record:

The University identifying number

The description of the asset

The category of the asset (per definition above)

The location of the asset

The original cost of the asset

The annual depreciation charge set against each asset

Verification of Fixed Assets

The existence of a fixed asset must be verified on at least an annual basis with the Asset Register recording this exercise and any variances from the recorded details investigated and action taken if appropriate. Any assets found not to be in existence must be immediately brought to the attention of the Provost and/or Director of Finance.

The above internal exercise is to be carried out in addition to any internal or external audit visits.

Disposal and Write-off of Fixed Assets

This must be done in strict adherence with instructions set out in the Financial Regulations (Section 12.4).

Transfer of Fixed Assets

The transfer of an asset from its original defined location must be in accordance with set procedures which ensure the change of location is updated on the relevant Fixed Asset Register(s).

Non Fixed Asset Items but of a Capital Nature (Termed a Valued Asset)

Definition of a Valued Asset

An item costing under £10,000 but more than £1,000 (including VAT) which comes under the category of a fixed asset listed above.

Recording

All such items will be recorded on an ongoing basis in a "Memorandum" Valued Asset Register. A separate Memorandum Valued Asset Register will be maintained by each Campus Finance Office and Central Finance and will record:

The University memorandum identification number

The description of the valued asset

The category of the valued asset

The location of the valued asset

The original cost of the valued asset

Verification of Valued Assets

The existence of a valued asset must be verified by a random sample being taken from the Memorandum Valued Asset Register and checked to ensure it actual exists. All such random samples must be clearly documented and all entries in the Memorandum Register must be included within the sample over a period of 4 years.

Any valued assets found not to be in existence must be immediately brought to the attention of the Provost and/or the Finance Director. All variances from the records held in the Memorandum Valued Asset Register must be investigated and action taken if appropriate.

Disposal of Valued Assets

This must be done in strict accordance with instructions set out in the Financial Regulations (Section 12.4).

Transfer of Valued Assets

The transfer of a valued asset from its original defined location must be in accordance with set procedures which ensure the change of location is updated in the Memorandum Valued Asset Register(s).