Fixed Assets Management The function should be adequately managed and controlled by the CFO with the support from Administration and Purchase Committee. Assets capitalization and assets disposal policies should be in duly approved by the Board. All acquisitions of assets should be made centrally against pre-approved budgets following the Purchase Manual requirements, under the auspices of the Purchase Committee. Board’s prior approval is required for any non-budgeted asset’s acquisition. All the fixed assets should be fully insured and are well maintained. Physical security controls should be appropriately applied to ensure that assets are not misappropriated or misused. The Accounts and Finance should exercise appropriate control over fixed assets’ acquisitions, their proper classification and correct recording and maintaining their ownership/supporting documentation. CFO should review all capitalizations on periodic basis and also ensures that any disposals are done in accordance with the defined process. Amortization/depreciation of assets should be recorded periodically based on the proper assessment of their useful lives and adoption of appropriate methods. Fixed Assets Register should be maintained which is reviewed by the Finance Manager to ensure its regular updating and accuracy of recording. The risk categories, where planned and recommended controls were specified, are summarized/ listed below for reference. Risk Mitigation Step Identified Initiative The Chief Financial Officer should ensure assets capitalization as per the approved policy. CFO should also review the capitalization periodically. It is recommended that the capitalization limit may be enhanced appropriately. Further, category wise capitalization amount limits may be considered to be fixed. The Financial Officer should ensure that the assets to be disposed are as per the policy. CFO should also review the disposal process. Finance Manager may review the transactions on selective basis. Physical verification to be performed at least on annual basis. Physical verification to be performed at least annually.
Fixed Assets Management The function should be adequately managed and controlled by the CFO with the support from Administration and Purchase Committee. Assets capitalization and assets disposal policies should be in duly approved by the Board. All acquisitions of assets should be made centrally against pre-approved budgets following the Purchase Manual requirements, under the auspices of the Purchase Committee. Board’s prior approval is required for any non-budgeted asset’s acquisition. All the fixed assets should be fully insured and are well maintained. Physical security controls should be appropriately applied to ensure that assets are not misappropriated or misused. The Accounts and Finance should exercise appropriate control over fixed assets’ acquisitions, their proper classification and correct recording and maintaining their ownership/supporting documentation. CFO should review all capitalizations on periodic basis and also ensures that any disposals are done in accordance with the defined process. Amortization/depreciation of assets should be recorded periodically based on the proper assessment of their useful lives and adoption of appropriate methods. Fixed Assets Register should be maintained which is reviewed by the Finance Manager to ensure its regular updating and accuracy of recording. The risk categories, where planned and recommended controls were specified, are summarized/ listed below for reference. Risk Mitigation Step Identified Initiative The Chief Financial Officer should ensure assets capitalization as per the approved policy. CFO should also review the capitalization periodically. It is recommended that the capitalization limit may be enhanced appropriately. Further, category wise capitalization amount limits may be considered to be fixed. The Financial Officer should ensure that the assets to be disposed are as per the policy. CFO should also review the disposal process. Finance Manager may review the transactions on selective basis. Physical verification to be performed at least on annual basis. Physical verification to be performed at least annually.
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