GROUP FIXED ASSET REGISTER (FAR) MANAGEMENT POLICY and PROCEDURES

Creator

About Project:

Created , streamlined and implemented as my project for my Six Sigma Certification; the GROUP FIXED ASSET REGISTER (FAR) MANAGEMENT POLICY and PROCEDURES (AI/IA_COM_RMC/01- P&P- FARM) for three (3) departments , Internal Audit, Risk Management & Controls and Compliance for a major conglomerate firm.

PURPOSE

The purpose of this policy is to establish the requirements and procedures for controlling and maintaining the Groups Fixed Asset Register (FAR).  Continuous monitoring and management of the FAR will provide consistent control over receiving, *tagging, tracking, and disposing of fixed assets purchased by the group. 

GENERAL

We evaluated the system of internal controls in place as per IT Asset Allocation Process and Guidelines. The existing policy is only limited and outlined basically for the allocation and collection procedure for employees of the company and the responsibilities of  IT personnel; wherein;

• It does not cover a documented procedure detailing how records are to be kept to maintain accuracy of the information entered in FAR for Finance reference and use.
• No clear guidelines on assets transfer from one department to the other in an event that a staff member has to move from one department to another either within the same group or across the organization's other business locations.

• Tracking assets is an important concern of every company, regardless of size. Maintaining a good control on FAR Management will help any size business track valuable assets such as equipment and supplies and is not only limited to IT managed assets. To timely track what assets the business owns, where each asset is located, who has it, when it was issued, checked out, return or transfer, which cost center it is charged, and the status of each asset.

  As a result, business (IA, Compliance and RM & C) reduces expenses through loss prevention and improved equipment maintenance. They reduce new and unnecessary equipment purchases.

PROCEDURES/INSTRUCTIONS

The process for maintaining an accurate record of fixed assets is well documented.

This policy requires a fixed asset form to be completed for any fixed asset purchased, allocation and disposal.

Steps: 

1. Issuance
2. Allocation
3. Disposition