or vote concerned as an operating expense, and any increase in the valuation shall be credited to the department or vote concerned as operating revenue. If any biological asset is lost, stolen or destroyed, the matter if material shall be – – reported in writing by the head of department concerned in exactly the same manner as though the asset were an ordinary fixed asset. Records of the details of biological assets shall be kept in a separate section of the fixed assets register or in a separate accounting record altogether and such details shall reflect the information which the Chief Financial Officer, in consultation with the head of department concerned and the internal auditor, deems necessary for accounting and control purposes. The Chief Financial Officer shall annually insure the biological assets, municipality’s in consultation with the head(s) of department concerned, provided the council of the municipality considers such insurance desirable and affordable. Creation of the Fixed Asset Register Asset Classification The Fixed Asset Register, as defined within the scope of this document covers PPE (Property, Plant and Equipment) asset classes and Investment Properties. Asset Sub-Classes and Functional Groups Data is to be structured in accordance with the following standardised hierarchy and has been defined into five (5) distinct levels which are: system, sub-system, facility, asset and component. An example of a typical Water sector asset (i.e. a Concrete tank) is shown in the table below. Table 1: Data Hierarchy Example Hierarchy Example System Water Sub-system Storage Facility Sun City Reservoir 01 Asset Tank Component Roof For a more detailed definition of the terminology used, refer to earlier in this document. Vela VKE makes use of data templates and definitions in addition to suggested asset structuring or hierarchy definitions. As such, they define the following in broad terms: System: A grouping of similar nature or function Sub-system: Part of a system which can be grouped Facility: Complex of assets Asset: Tangible Property, Plant and Equipment (according to GRAP17) Component: of an asset which has a significantly different Useful Life or ‘part’ significant cost in relation to the main asset Figure 1: System Hierarchy and Data Template Definitions
or vote concerned as an operating expense, and any increase in the valuation shall be credited to the department or vote concerned as operating revenue. If any biological asset is lost, stolen or destroyed, the matter – if material – shall be reported in writing by the head of department concerned in exactly the same manner as though the asset were an ordinary fixed asset. Records of the details of biological assets shall be kept in a separate section of the fixed assets register or in a separate accounting record altogether and such details shall reflect the information which the Chief Financial Officer, in consultation with the head of department concerned and the internal auditor, deems necessary for accounting and control purposes. The Chief Financial Officer shall annually insure the municipality’s biological assets, in consultation with the head(s) of department concerned, provided the council of the municipality considers such insurance desirable and affordable. Creation of the Fixed Asset Register Asset Classification The Fixed Asset Register, as defined within the scope of this document covers PPE (Property, Plant and Equipment) asset classes and Investment Properties. Asset Sub-Classes and Functional Groups Data is to be structured in accordance with the following standardised hierarchy and has been defined into five (5) distinct levels which are: system, sub-system, facility, asset and component. An example of a typical Water sector asset (i.e. a Concrete tank) is shown in the table below. Table 1: Data Hierarchy Example Hierarchy Example System Water Sub-system Storage Facility Sun City Reservoir 01 Asset Tank Component Roof For a more detailed definition of the terminology used, refer to earlier in this document. Vela VKE makes use of data templates and definitions in addition to suggested asset structuring or hierarchy definitions. As such, they define the following in broad terms: System: A grouping of similar nature or function Sub-system: Part of a system which can be grouped Facility: Complex of assets Asset: Tangible Property, Plant and Equipment (according to GRAP17) Component: ‘part’ of an asset which has a significantly different Useful Life or significant cost in relation to the main asset Figure 1: System Hierarchy and Data Template Definitions