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G/3.1 Asset policy |
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3.1.1 Asset management 3.1.1 Asset managementAn asset is anything of material value and which provides a potential future economic benefit to the University. The Corporate Finance Director is responsible for the strategic management of the University's assets including its property, plant and equipment. QUT's asset management framework identifies the key elements associated with asset management, namely acquisitions, use, disposal and investment. For property, plant and equipment it considers a 'whole of life' approach including operational requirements, acquisitions, enhancements, and disposal of assets, all of which have an impact on asset valuations and depreciation. The University may control other assets under arrangements with other bodies, or under terms of leasing or tenancy agreements. A more detailed outline of Physical Asset Procedures can be found in the Financial Management Practice and Procedures Manual (Chapter 8). 3.1.2 Cash assetsCash assets include monies that are held in petty cash and in QUT bank accounts, and those monies held by the Queensland Treasury Corporation (QTC) for short term investment purposes. It is essential that particulars of all monies due to the University are identified and appropriately recorded so that they may be collected on or before the due date. Staff members who collect such monies are responsible for the safe custody of the collections from the time of receipt until deposited into authorised University bank accounts. More complete procedures for management and control of monies can be found in the Financial Management Practice and Procedures Manual (Chapter 2). Bank accounts may only be opened with the approval of the Corporate Finance Director and only in the name of the Queensland University of Technology. The Corporate Finance Director is responsible for authorising officers to operate these accounts. Procedures for the conduct of QUT bank accounts can be found in the Financial Management Practice and Procedures Manual (Chapter 1). 3.1.3 ReceivablesA receivable is money owed to the University for goods or services purchased on credit. Receivables include trade receivables which are sales to regular trade customers that have been completed but not yet paid for, and student outstanding invoices. All University debt is administered either through the Student Administration System for student fees (see E/7.1 ), or through the University's Finance System for all other activities. Prior to performing any work or services that will result in a material debt (see Financial Management Practice and Procedures Manual , Chapter 2) by a potential customer to the University, the responsibility centre performing the work or services must perform a credit check on the customer to ensure that the likelihood of a default is minimised. Credit notes Credit notes are raised to cancel or amend an invoice raised in error and may only be issued subsequent to approval being given by an officer authorised to commit funds to specific limits, in accordance with the Schedule of Authorities and Delegations - see Appendix 3 ). Write-off of debt Debts due to the University may only be written off in accordance with the delegated authorities to write off bad debts and assets – see Appendix 3 . Detailed procedures dealing with revenue, credit checks, credit notes, debt management and debt write-off can be found in the Financial Management Practice and Procedures Manual (Chapter 2). 3.1.4 InventoriesInventories for purposes of QUT assets include land held for resale and stock held by the QUT Bookshop. QUT does not generally purchase land for the purposes of resale, however where this is the intention the Financial Management Practice and Procedures Manual , Chapter 8(B), identifies the appropriate management and accounting for the asset. All purchases of land should be notified to the Director, Corporate Finance. Items such as stationery, spare parts, consumables and components, loose tools, consignment stock and minor equipment held for resale to students or the public are not considered to be assets. However, these items are to be managed and controlled as outlined in Chapter 8(I) of the Financial Management Practice and Procedures Manual . 3.1.5 Other financial assetsLonger Term Investments Other financial assets include funds that are invested on a longer term basis (see G/3.2) and investments in associated companies. The basis for the decision for monies to be invested in the short term or longer term is dependant upon the investment strategy of the University. Trust Monies Trust monies must be invested in accordance with the requirements of the Statutory Bodies Financial Arrangements Act 1982. Under Section 62 of the Queensland University of Technology Act 1998 , Council may include trust monies with other University monies in a common investment fund and distribute the income of this fund among the participants in the common fund in direct relation to each contribution. Section 62 of the QUT Act also empowers the Council to pay into the general funds of the University investment income earned on monies received by it for a stated purpose with which it is no longer possible to comply. Investments in Associated Companies The University has a number of associated companies. The treatment of these companies is outlined in the Financial Management Practice and Procedures Manual , Chapter 8 (F). 3.1.6 Property, plant and equipmentA Fixed Assets Register is maintained by the University for all non-current assets, with acquisition costs in excess of $5,000. This register records all data necessary to identify and locate assets, together with other relevant information (eg depreciation, life expectancy etc). Acquisition costs for assets costing less than $5,000 are also recorded in the Fixed Asset Register as portable and attractive items, where required. Heads of responsibility centres should exercise efficiency and economy in acquiring assets on the University's behalf and observe University and State Government purchasing policies. Insurance of assets The Corporate Finance Department oversees the appointment of an insurance broker to manage the University's insurance requirements. Details of the insurance broker and the University's insurance program are available on the Financial Services web page. Rental of assets When not required for University purposes, University assets may be hired to staff and outside bodies on terms and conditions determined by the Director, Corporate Finance (who shall also determine the distribution within the University of income from this source - see G/8 for policy on user charging. Leasing of Assets Heads of responsibility centres should obtain the approval of the Director, Corporate Finance, before entering into commitments for leasing assets. Responsibility centres considering a lease should discuss the proposal in the first instance with the Associate Director, Accounting Services. Loss or damage of assets Heads of responsibility centres are responsible for reporting any loss of or damage to assets as soon as possible to the Security Manager, who will take action to prevent the loss recurring and, if appropriate, complete an insurance claim form as per instructions in the insurance section of the Financial Services web page. In the event of a possible offence under the Criminal Code or other act or law, the Security Manager is required to advise the police and the Director, Corporate Finance, who shall notify the Auditor-General. Where official misconduct by a member of the University is indicated, the Security Manager must instead report the matter to the Registrar who shall notify the Crime and Misconduct Commission. The Manager, Strategy and Reporting, is responsible for ensuring that all material losses are recorded in the Record of Material Losses Register (Non-Cash). Write-off of assets Action to write off assets must be in terms of the delegated authority (see Appendix 3 ). The Director, Corporate Finance, can authorise the write-off of bad debts and assets which are missing, obsolete, irreparable, at the end of their useful lives or scheduled for replacement or retirement to the value of $25 000. In addition, executive deans of faculty / heads of division can authorise the write-off of assets which are obsolete, at the end of their useful lives or scheduled for replacement or retirement to the value of $5 000. Depreciation Assets are depreciated according to accounting standards and policies prescribed by legislation. Depreciation is calculated by applying the straight-line method. Further details can be found in the Financial Management Practice and Procedures Manual , Chapter 8(G). Disposal Disposal of items can be made when assets are no longer required, have reached the end of their useful life, or are technically or economically redundant. Faculties and divisions are provided with the flexibility of choosing how to dispose of their assets through methods described in the Financial Management Practice and Procedures Manual , Chapter 8 (I). To be able to make informed asset disposal decisions, a disposal decision tree has been developed. If a responsibility centre has assets which are surplus to their requirements, but still serviceable, they must canvass other areas of the University to determine whether another responsibility centre has a need for such assets and would be interested in acquiring those assets. Approval for disposal of assets is in accordance with with the delegated authorities to write off bad debts and assets – see Appendix 3 . Assets review At minimum, an annual review of assets is to be undertaken to verify the existence of assets recorded in the Fixed Assets Register and to assess the serviceability of those assets (remaining life and depreciation rate). The established procedures can be found in the Financial Management Practice and Procedures Manual – Chapter 8(H). Resulting discrepancies are to be investigated. Heads of responsibility areas should also review annually asset usage to determine whether excess capacity exists that may also benefit another responsibility centre by mutual arrangement. Control of assets In addition to the above controls, heads of responsibility centres should also observe the following:
3.1.7 Intangible assetsAn intangible asset is an asset that is without physical substance. Where software is not an integral part of hardware it is treated as an intangible asset. All purchased software that is not an integral part of the hardware is also treated as an intangible asset. Where the software is an integral part of the related hardware (for example the operating system), it is to be treated as Property, Plant and Equipment. To assess an internally generated intangible asset, the project needs to be identified at the earliest possible stage. The asset will be recognised as an asset at the “Research or Development” phase. No intangible assets from research will be recognised. Internally generated assets arising from development of an internal project must demonstrate that the asset will generate probable future economic benefit. Software development can be undertaken with in-house software and include activities such as design and construction, testing, specifications works, pre-production use, alternatives, improved products, processes or service. Further details on intangible assets can be found in the Financial Management Practice and Procedures Manual - Chapter 8 (E). Related DocumentsG/3.2 Investment policy Modification History
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