Method of depreciation Acquisition, disposal and transfers Transactional Audit trail – Management & Risk How is it managed? – Identification of Fixed Assets The Chief Financial Officer shall ensure that the municipality maintains a fixed asset identification system which shall be operated in conjunction with its computerised fixed asset register. The identification system shall be determined by the Chief Financial Officer, acting in consultation with the municipal manager and other heads of departments, and shall comply with any legal prescriptions, as well as any recommendations of the Auditor-General as indicated in the audit report(s), and shall be municipality’s decided upon within the context of the budgetary and human municipality’s resources. Every head of department shall ensure that the asset identification system approved for the municipality is scrupulously applied in respect of all fixed assets controlled or used by the department in question. All heads of department under whose control any fixed asset falls shall promptly provide the Chief Financial Officer in writing with any information required to compile the fixed asset register, and shall promptly advise the Chief Financial Officer in writing of any material change which may occur in respect of such information. A fixed asset shall be capitalised, that is, recorded in the fixed assets register, as soon as it is acquired or is determined to be at a stage or condition where it is practically complete and may deliver the required levels of service. If the asset is constructed over a period of time, it shall be recorded as work-in-progress (WIP) until it is available for use, where after it shall be appropriately capitalised as a fixed asset. A fixed asset shall remain in the fixed assets register for as long as its physical existence can be verified and the asset is able to provide some level of service. If a fixed asset has been fully depreciated, this asset shall not be written off or impaired in totality unless the asset may no longer deliver a service and the asset cannot be refurbished to a state where it could provide or deliver a service(s). If an asset can deliver or provide a service then the asset must be revalued in terms of the fair value to replace an asset of similar condition and remaining economic life. Classification of Fixed Assets In compliance with the requirements of the National Treasury, the Chief Financial Officer shall ensure that all fixed assets are classified under the following headings in the fixed assets register, and heads of departments shall in writing provide the Chief Financial Officer with such information or assistance as is required to compile a proper classification: Property, Plant and Equipment
Method of depreciation Acquisition, disposal and transfers – Transactional Audit trail Management & Risk – How is it managed? Identification of Fixed Assets The Chief Financial Officer shall ensure that the municipality maintains a fixed asset identification system which shall be operated in conjunction with its computerised fixed asset register. The identification system shall be determined by the Chief Financial Officer, acting in consultation with the municipal manager and other heads of departments, and shall comply with any legal prescriptions, as well as any recommendations of the Auditor-General as indicated in the municipality’s audit report(s), and shall be decided upon within the context of the municipality’s budgetary and human resources. Every head of department shall ensure that the asset identification system approved for the municipality is scrupulously applied in respect of all fixed assets controlled or used by the department in question. All heads of department under whose control any fixed asset falls shall promptly provide the Chief Financial Officer in writing with any information required to compile the fixed asset register, and shall promptly advise the Chief Financial Officer in writing of any material change which may occur in respect of such information. A fixed asset shall be capitalised, that is, recorded in the fixed assets register, as soon as it is acquired or is determined to be at a stage or condition where it is practically complete and may deliver the required levels of service. If the asset is constructed over a period of time, it shall be recorded as work-in-progress (WIP) until it is available for use, where after it shall be appropriately capitalised as a fixed asset. A fixed asset shall remain in the fixed assets register for as long as its physical existence can be verified and the asset is able to provide some level of service. If a fixed asset has been fully depreciated, this asset shall not be written off or impaired in totality unless the asset may no longer deliver a service and the asset cannot be refurbished to a state where it could provide or deliver a service(s). If an asset can deliver or provide a service then the asset must be revalued in terms of the fair value to replace an asset of similar condition and remaining economic life. Classification of Fixed Assets In compliance with the requirements of the National Treasury, the Chief Financial Officer shall ensure that all fixed assets are classified under the following headings in the fixed assets register, and heads of departments shall in writing provide the Chief Financial Officer with such information or assistance as is required to compile a proper classification: Property, Plant and Equipment
Fixed-Asset-Management-Policy-movables.docx