Purpose and Objectives
The purpose of this policy is to define the types of assets that fall within the category of “Portable and Attractive” and to specify how they are to be identified and controlled.
Definitions, Terms, Acronyms
Portable and attractive items – non-consumable items that:
- Have a value of $2,000 or more (GST exclusive), but less than our company‘s capitalisation threshold of $5,000 (GST exclusive), and
- Are susceptible to theft or loss due to their portable nature and attractiveness for personal use or resale.
An item is considered portable if it can be easily carried or moved. For example, an item would be considered portable if it could easily fit in a backpack; it would not be considered portable if it required more than one person to carry it.
An item is considered attractive if it has a likelihood of being advantageous or profitable. For example, an item would be considered attractive if there was an active market for the sale of the item; it would not be considered attractive if it could not be used by a body/individual external to our company.
The number of potential users does not affect the portable and attractive nature of an item. An item with only one user is considered portable and attractive provided it meets the definition above.
The $2,000 and $5,000 (GST exclusive) thresholds apply to individual items of equipment except where several related items, when considered collectively, constitute an item of equipment. For example, a laptop, docking station, monitor, keyboard and mouse are to be regarded as one item.
Policy Scope/Coverage
This policy applies to all our company staff.
Policy Statement
This policy is guided by provisions outlined in the Non-Current Asset Policies for the Public Sector.
Accounting Treatment
By definition, portable and attractive items do not meet the asset capitalisation threshold and consequently, are expensed in the financial year in which they are acquired.
The purchase of portable and attractive items by corporate card and reimbursement is specifically prohibited.
Responsibility for Monitoring and Control
Responsibility for the safe custody of portable and attractive items is devolved to the level that makes the purchase decision (i.e. organisational unit level).
Where an organisational unit issues portable and attractive items to employees for their specific use, they should have appropriate systems in place to ensure that all items issued are returned (or accounted for) on or before the employee’s last day. Ideally, this should be integrated with formal employee exit procedures.
Registering Portable and Attractive Items
Our company must maintain a register of portable and attractive items. The Asset Management system must include all items held by the area that meet the portable and attractive definition.
The following items may be recorded on the Asset management system at the discretion of the organisational unit:
- Items that have a value under $2,000 but are deemed highly susceptible to theft or loss.
- Items that are not portable in nature but a record needs to be kept for other purposes, for example, fleet replacement purposes.
Asset Management module information
The Asset Management system must include the following information for each portable and attractive item:
- Tag number
- Responsible area (e.g. organisational unit)
- Description (e.g. model, serial ID, asset profile)
- Location or custodian
- Purchase date
- Purchase cost (or equivalent).
When to identify items on the Asset Management system
Portable and attractive items are to be recorded on the Asset Management system as they are acquired.
When to remove items from the Asset Management module
Portable and attractive items are removed from the Asset Management system when they are disposed of (e.g. due to being obsolete, surplus or damaged beyond repair), lost or stolen. Ideally, items should be removed at the time of the disposal. However, items that are lost or stolen may only be identified during a stocktake.
Organisational units must have adequate controls over the removal of portable and attractive items from the Asset Management system. All items removed must be properly authorised by the Head of the organisational unit and cannot be undertaken by the person assigned to maintain the Asset Management system.
Information relating to items that are lost or stolen should be retained to assist in assessing the effectiveness of the area’s control of portable and attractive items as well as identifying any emerging trends. This information can be reinstated on the Asset Management system if the items are recovered.
Loans
Equipment may be received or sent out for loan, hire, testing and repair.
Stocktakes
Stocktakes are the mechanism that assists our company in confirming the existence and proper control over assets. Stocktakes also ensure that organisational units are accountable for the portable and attractive items under their control and assists them to:
- Identify items that have been lost or stolen and, where possible, recover them.
- Assess the effectiveness of control practices for portable and attractive items and, where required, improve them.
Corporate Finance has responsibility for ensuring stocktakes occur. Corporate Finance acts in a co-ordination role.
Frequency of stocktakes
Stocktakes of portable and attractive items are performed biennially, in order to safeguard identified portable and attractive items.
Responsibility for the stocktake
All Heads of organisational units are responsible for ensuring that their unit performs the stocktake.
Where practical, the stocktake should be conducted by two or more nominated responsible officers, at least one of whom does not control or maintain the organisational unit Asset Register.
Results of stocktake
The results of each stocktake must be provided to the Head of the organisational unit responsible for reporting on portable and attractive items.
The Head of the organisational unit should then address any significant issues of concern. The final report must be forwarded to the Assets Unit.
Loss and Damages
- With respect to loss or damage to portable and attractive items, refer to:
- Insurance Policy
- Reporting of Losses Policy
Both topics provide guidance in dealing with lost or damaged company property.