C6 Assets

Background

In order to be able to provide a value for what DFID owns we need to have a permanent record of items that DFID regards as belonging to the department. These are our Tangible Fixed Assets and information about them is recorded in our Fixed Asset Register. We treat an item as a tangible fixed asset if:

• it has a useful life of more than one year
• the purchase price or development cost of the asset is in excess of £1,000 or equivalent in local currency
• it is used in support of general administrative activity i.e. not on a specific project or programme.

Examples of tangible fixed assets are; buildings (offices), vehicles, fixture & fittings and IT equipment.

Equipment and supplies with a value of less than £1,000 (one thousand pounds) are defined as Consumables, and are not entered onto the Fixed Asset Register. Such items will be charged to administration costs.

Equipment and supplies purchased from programme funds are defined as programme assets. These assets are not recorded on the Fixed Asset Register, but details of such assets should be maintained by departments on an asset inventory.

Compliance Tasks

1. Every departmental DFO must maintain an electronic Asset Register of assets financed from administrative resources.

Task assigned to: Departmental Finance Officer (DFO)

2. Each DFO must maintain an electronic Asset Register of Programme assets when ownership is retained by DFID.

Task assigned to: Departmental Finance Officer (DFO)

3. Every DFID department/office, must make arrangements for the secure storage of assets and consumables.

Task assigned to: Departmental Finance Officer (DFO)

4. Departments have delegated authority to dispose of DFID owned equipment and assets by transfer of ownership to the aid recipient, or by sale to a third party subject to certain restrictions. Disposals must be noted on departmental asset returns.

Task assigned to: Project Staff

Risks of non-compliance

• Loss of assets (theft)
• Inaccurate data in the balance sheet to the Resource Accounts
• Incorrect Capital Charge levied
• Increased risk of fraud.