Policy Title: Assets and Portable and Attractive Items Stocktake Part A Policy 1. Policy Statement This policy provides guidelines on the standards and obligations which are to be met in relation to the management and control of University assets and attractive items through Physical Stocktake. 2. Scope This policy is applicable to assets and portable and attractive items of Central Queensland University (CQU) in custody of the respective Faculty, Division, Campus, and staff member. 3. Definitions used in this Policy All terminology used within this policy is consistent with definitions in the Central Queensland University Glossary. 4. Legislation Central Queensland University will comply with the following:- 1. Queensland Treasury – Non-Current Asset Policies for the Queensland Public Sector, June 2005 2. Financial Management Standard 1997, s. 45(1), s. 45(2)(d), s. 71(1), s. 71(2)(l) 5. Policy Approval History Approved by: Council: 16 May 2002 Amendments Authorised by: Council 9 July 2007 6. Policy Content This policy sets out the lines of communication and responsibilities of CQU Staff with relation to the updating of the information in the asset register for stocktakes, manual validation of items not scanned at time of stocktake, and requirements for overview and sign off by Faculty Executive Deans, Division Directors and Heads of Campus. 6.1. Roles of CQU Staff 6.1.1. All CQU Staff All CQU Staff are recorded in the asset register as custodians of the equipment currently used on a daily basis (for example, the computer used by staff is required to have the staff member recorded as the custodian). The CQU Staff member must report changes in location and equipment with CQU tag numbers to Faculty/Division Asset Maintainers. CQU Staff members are responsible and will be held accountable for the safeguarding of assets and attractive items in their custody. 6.1.2. CQU Asset Maintainers Asset Maintainers are required to update the information for assets and attractive items recorded in the asset register, and to assist with stocktakes. Activities required for Stocktakes include (1) reviewing information for correctness, (2) assigning staff to accompany Stocktake Scanner to ensure access to all areas, (3) Manual verification of all items not scanned during stocktake, and (4) completion of the Stocktake Sign-off form. 6.1.3. CQU Executive Deans/Directors/Heads of Campus Faculty Executive Deans, Division Directors and Heads of Campus are accountable for all assets and attractive items in the custody of the Faculty, Division or Campus. On completion of scanning and manual verification by Asset maintainers, the updated Stocktake listing is to be forwarded for review. The Stocktake Sign-off form will accompany the updated Stocktake listing. The Sign-off form must be returned to the Assets Section, Supply Department, FSD, no later than two (2) weeks from issue of the Manual Validation request. 6.1.4 CQU Stocktake Scanner The Assets Section within the Supply Department of the Financial Services Division will act as Stocktake Scanner personnel. Roles include running Stocktake processes to load current information in the asset register onto a Barcode scanner, physically scanning CQU Barcodes (Yellow for Assets, Red for Attractive Items), completing Stocktake processes, and sending out listings of UNDERS and OVERS to Asset maintainers for Manual verification. On receipt of completed manual verification, the Stocktake sign-off form will be forwarded to the Asset Maintainer. After the final stocktake scanning, the Assets Section will also co-ordinate the validation of all CQU assets and attractive items, to ensure all items are verified. 6.2. Stocktake Timeframe The asset section will prepare a draft stocktake schedule by Location, which will be sent to all Faculties / Divisions / Campuses for review. The revised stocktake schedule will be forwarded for final comment. On completion of scanning, a list of UNDERS and OVERS will be forwarded within 3 days. The Faculty / Division / Campus will have a period of 2 weeks to complete the manual verification. On receipt of the completed manual verification, the Sign-off form will be forwarded to be completed and returned to the Asset Section within one week. Policy Title: Assets and Portable and Attractive Items Stocktake Policy Part B Procedures 1. Overview This policy is applicable to assets and portable and attractive items of Central Queensland University (CQU) in custody of the respective Faculty, Division, Campus, or staff member. The purpose of the Asset and Attractive Item Stocktake Policy, is to set out the requirements to govern the management of assets and portable and attractive items. The safeguarding of University assets and portable and attractive items is essential for the continuity, development, and growth of the University. Economic benefit can be achieved by preventing the diversion of financial resources to replace University assets and portable and attractive items that have been damaged or misappropriated. The Executive Dean, Director or Head of Campus is accountable for all assets and portable and attractive items in the custody of the faculty, division or campus. Physical verification of all assets and portable and attractive items of the University, will be conducted at least annually by the Asset Management Section in FSD. The physical verification will be conducted in compliance with the procedures set out in this document and the requirements of the Financial Administration and Audit Act 1977 and the Financial Management Standard 1997. Evidence of the physical verification of assets and portable and attractive items of the University, will be maintained by the Asset Management Section of Financial Services Division, in accordance with guidelines issued by the Queensland Audit Office. This document will be reviewed regularly and if required amended. 1.1. Explanation of definition of Assets Assets must be recorded in the University Asset Management System. Assets are defined as goods with an acquisition cost of $5000 or move (Exclusive of GST) and a working life in excess of 12 months. Currently, the only categories not included in the Asset register are – (1) Buildings, (2) Infrastructure, and (3) CQ Collections. 1.2. Explanation of Definition of Portable and Attractive Items Portable and attractive items are items that have a value of $500 or more Exclusive of GST but less than $5000 Exclusive of GST and are recorded in the University’s Asset Management System as Attractive Items. Items that are typically classified as portable and attractive items may include desktop computers, laptop computers, video equipment, cameras etc. As per the FMPM Section 3.11 Assets Portable and Attractive, the factors determining whether an item is Portable and attractive to be taken into account are:- (1) Exposure to risk of theft, Loss and misappropriation, (2) The relative attractiveness and portability of the item in its environment of use, and (3) Historical incidences of loss. 1.3. Potential Risk of Non-Compliance Inaccurate physical verification procedures could render the stocktake results unreliable; The assets/portable and attractive items could be: o understated if credit card purchases of asset/portable and attractive items are not recorded properly, or payment for items by non-order voucher have not been added to the Asset Register; o overstated if disposals of asset/portable and attractive items are not recorded properly; Depreciation could be misstated or allocated to the wrong cost centre if additions, transfers or disposals are not recorded properly; Missing assets/portable and attractive items could be left undetected; Without physical verification procedures when custody of assets/attractive items changes, misappropriation of assets could be left undetected. In this situation the University could postpone significantly or loose its ability to collect damages afflicted; The audit trial of transferred assets and portable and attractive items could be lost; Obsolete or redundant assets could remain recorded in the Asset Management System; Assets could be under/over covered by the University insurance policy. 2. Procedures At each stage of the Assets and Portable and Attractive Items Stocktake Policy process, the following procedures should be adopted. 2.1. Changes in Custodian Upon Separation from CQU, for any items the custodian wishes to purchase (eg Package Vehicle) approval must be sought through the Director Financial Services Division, and signed off by the Executive Director – Resources. For the Transfer of custodian within the same Faculty / Division, the Asset Maintainer for that Faculty / Division must update the asset / attractive item information in the asset register. For transferring to another Faculty or Division the Asset Maintainer in the Faculty / Division is required to complete the Asset Transfer form and forward to the receiving Faculty / Division. On completion of all sections, the form must be forwarded to the Asset management section in FSD for processing. The Asset Management Section in FSD will process all retirements and transfers for separations and transfers and periodically check to ensure the change in custodian is updated in the Asset Management System. 2.2. Recording and Tagging of Items The Faculty / Division Asset Maintainer will be responsible for the updating of Location, Custodian, Tag number, Serial Information and Manufacturer details. The recording of asset and portable and attractive item additions, transfers or disposals in the Asset Management System will be processed by the Asset Management section in FSD upon receipt of correctly completed and signed off forms. All assets and portable and attractive items entered into the Asset Management System must be tagged with an official University barcode label as soon as the asset is received or when internal transfers occur. Tags are to be located on the front of the item for ease of scanning at the time of stocktake. 2.3. Assignment of Stocktake Roles FSD will appoint a Stocktake Officer (normally the Asset Administration Officer) to liaise with Faculty / Division Finance Officers and Asset Maintainers to formulate a Stocktake Schedule, and to undertake the scanning of all tagged items. Each Faculty / Division is required to assign a Stocktake Supervisor for each area (eg for each building or each department). The role of the Stocktake Supervisor is to co-ordinate access to all areas for the Stocktake Officer and to co-ordinate manual verification of all unders and overs identified. Under normal circumstances, each stocktake will be by Location with the scanning of both assets and attractive items to be undertaken. 2.4. Preliminary Planning for Stocktake The Planning step involves establishing priorities, assigning responsibilities, setting up a problem resolving mechanism (perhaps a chain of command), determining the physical verification method and coordinating all activities. Before any physical stocktakes commence, all Stocktake Supervisors will be issued with written instructions of stocktaking procedures. They should also be given verbal instruction to reinforce the written instructions and ensure that they know what is required including follow up procedures for resolving variances. Care should be taken to ensure that all assets/attractive items are identified prior to the commencement of the physical stocktake. This will include the prior identification of all locations in which assets/portable and attractive items are located, and the allocation of areas to individuals in order that a systematic approach is taken to ensure a full physical verification. The Faculty / Division Stocktake supervisor will be responsible for co-ordination and completion of the stocktake verification of unders and overs, with all issues directed to the Stocktake supervisor for resolution. At least One week prior to the stocktake: The Stocktake Officer from Financial Services Division (FSD) will provide a master- listing of the assets and attractive items from the asset register, with details of the: Asset number; Tag Number Description; Serial number; Last known location; Custodian. The Stocktake Supervisor will ensure that prior to the commencement of the Stocktake that:- Master listing has been received; Staff are assigned to provide access for Stocktake Officer All staff members for area have been informed that Stocktake in progress. Request that all equipment NOT be moved until after stocktake undertaken and manual verification of unders and overs completed. The accuracy of all master-listing details should be reviewed eg. asset number, location, Tag number, serial number etc by the Stocktake Supervisor, with any corrections of information being entered into the Asset Register. During the physical stocktake the Stocktake Supervisor should observe that all locations have been scanned and all assets/portable and attractive items within those locations have been scanned and follow up with the Stocktake Officer if any locations have been missed. 2.5. Scanner Method of Stocktake On the day of the stocktake: The Stocktake Officer will undertake the scanning of all assets/portable and attractive items within a Faculty, Division, Campus or Department. All items held in a designated area being scanned should be scanned. Any barcodes not recognised by the scanner must have details entered into the scanner. These items will appear as Overs on the report generated and must be manually verified by the Stocktake Supervisor. The Stocktake Officer will undertake the scanning in the following steps:- Scan all assets and attractive items for specified location Proceed from room to room in logical sequential manner Review Description information, Custodian and Location details and update where necessary Enter information into the scanner for tags scanned and no record found Record on paper (forming part of the stocktake information) any items not tagged or old items sitting unused etc. Once all items in a selected area have been scanned, the Stocktake Officer will uploaded the information from the scanner and cross-reference to the University Stocktake Validation file, to produce a listing of all unders and overs. This listing identifies difference between the Asset Management System and the scanned assets/portable and attractive items, and will be forwarded to the Stocktake Supervisor for manual verification (Variance Investigation). 2.6. Variance Investigations Variances are to be investigated by the Stocktake Supervisor. For items listed as Unders, manual verification of Inservice status and new location and custodian is required. For Overs, verification of purchase or transfer from other Faculty / Division required and paperword forwarded to Asset management in FSD. Verification requirements include updating the Unders / Overs Spreadsheet forwarded to the Stocktake Supervisor, and updating of information in the Asset Register. All manual verification must be completed and returned / emailed to the Asset Section with 2 weeks of receipt of Manual Validation file. 2.7. Misplaced or Lost Assets / Attractive Items In the event of assets/portable and attractive items being lost or misplaced, the Faculty, Division, or Campus will conduct an immediate investigation and search into the whereabouts or reason why the asset or attractive item is missing. Should the investigation prove negative, a List of Retirements report will be produced for those items in question and the disposal approved by the Executive Dean, Director or Head of Campus and submitted to Asset Management in FSD. The details of this report should include the following information. (i) Date of loss; (ii) Circumstances of loss; (iii) Description including model and serial numbers; (iv) Tag number; (v) CQU Security notification or Police Report The details will be reported by Asset Management to the Director, Financial Services, and to the Assistant Tax, Insurance and Risk Assessment Accountant for inclusion in the Material Losses register (for items valued at $500.00 +). 2.8. Approval and Document Substantiation The responsible Faculty Executive Dean or Division Director or Head of Campus will sign the stocktake sign-off sheet after they have satisfied themselves that the stocktake was properly conducted and that the results are true and accurate. To substantiate the stocktake the masterfile listing (with details of all adjustments) and the completed sign-off form must be returned to the Asset Section in Financial Service Division no later than 1 week after receipt of the Stocktake Sign-off form. 2.9 Escalation of non-compliance An escalation process has been implemented to ensure that stocktakes are completed within a reasonable timeframe and all authorisations are correctly received. If Manual Verification is not received in the Asset Section within 2 weeks of sending out the Manual Verification Request, an email will be forwarded to the stocktake Supervisor requesting completion of the Manual Verification within one week. If the Manual Verification is not received after the additional week, and email will be sent to the Faculty Executive Dean / Division Director / Head of Campus from the Director of Financial Services Division. If Manual Verification is not received after one week of email being sent by the FSD Director, notification of non-compliance will be forwarded to Internal Audit.