Safeguarding of University
Fixed Assets Notes
19.02.15 Hazel Hall
The University of Salford – Safeguarding of University Fixed Assets Notes V1
1
Introduction
1.1
This document sets out detailed notes for the identifying, recording, safeguarding and
disposal of University assets.
1.2
An asset is a physical item with a useful life in excess of one year, i.e. plant, property,
and equipment.
2
Identifying assets
2.1
From an accounting perspective, only expenditure which is capital in nature and
considered to be materially significant is capitalised and recorded as an asset.
2.2
Capital expenditures are those which provide a future economic benefit. Examples
include the purchase of plant, property or equipment; or, an investment that improves
the useful life of an existing capital asset.
2.3
To be considered materially significant, the collective value of capital expenditure must
be in excess of £50,000. Capital expenditure which has a collective value lower than
£50,000 is treated as revenue expenditure.
2.4
Revenue expenditures are not recorded as an asset and remain on the University’s
income and expenditure account. These expenditures are operating costs, i.e. rents,
rates, consumables and maintenance.
2.5
University budget holders, and Finance Managers, are responsible for identifying
University assets.
3
Recording assets
3.1
The University’s Financial Accountant is responsible for maintaining Fixed Asset
Register’s to record all University assets. Two registers are maintained, one for
Equipment assets and one for Land and Buildings assets.
3.2
The Fixed Asset Register’s should include the following information for all University
assets:
 Date of acquisition
 Supplier
 Detailed Description
 Invoice number
 Cost including VAT
 Method of financing e.g. University funding or Grant funding
 Depreciation information
 Expected useful life
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The University of Salford – Safeguarding of University Fixed Assets Notes V1
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Asset number
Asset location (Building and Room number if applicable)
Disposal information
Net book value
Name of member of staff responsible for asset.
3.3
University’s Financial Accountant is responsible for updating the Fixed Asset Register
at least once each quarter with additions in that period, and reconciling the fixed asset
costs as recorded in the register, with those recorded in the computerised accounting
system.
3.4
The Financial Accountant is responsible for allocating a unique asset number to all
new capital assets.
4
Safeguarding assets
4.1
Heads of Department are responsible for safeguarding all assets held in their area.
Physical security measures should be established if necessary.
4.2
Assets owned by the University should be monitored and recorded by central finance
and an asset number assigned. Each department is responsible for informing central
finance of disposals and transfers of equipment.
4.3
Each department should perform an existence check of all equipment within their care
and on a yearly basis central finance will request confirmation of existence. All
equipment should be agreed to the central equipment register and any equipment that
cannot be located should be fully investigated.
4.4
Theft of assets must be reported to campus security and Head of Department.
4.5
Heads of Department are responsible for reporting any theft of assets to the Finance
Department.
4.6
Assets owned or leased by the University shall not be subject to personal use.
5
Disposal of assets
5.1
When disposing of unwanted or redundant assets the Disposal of Fixed Assets Form
should be completed and returned to central finance. This ensures that we maintain
our asset register and provides a clear audit trail.
5.2
Assets may be available for disposal for a number of reasons. Examples could include:
 Asset is no longer economically useful,
 Asset no longer complies with health and safety,
 Asset is no longer required due to change in strategy.
 Unplanned disposal such as theft or irreparable breakdown.
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The University of Salford – Safeguarding of University Fixed Assets Notes V1
5.3
Methods of disposal could include:
 Private sale at market or fair value,
 Recycled or destroyed,
 Assets could also be transferred to other departments.
5.4
Please see the Disposal of Fixed Asset policy and form for further details.
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