Fixed Assets and Content Management Policy
Approved by Shavington-cum-Gresty Parish Council on 15.03.2023
Introduction
The Asset Management policy provides overall framework to guide the strategic management of Parish Council’s infrastructure assets in a co-ordinated manner. The policy sets out a systematic process to guide the planning, acquisition, operation and maintenance, and disposal of assets. The objective is to maximise asset service delivery potential and manage related risks and costs over the entire life of the asset. The Parish Council fixed assets and contents management will be carried out based on this policy document which establishes systems and controls. This policy must be observed in conjunction with the Parish Council Standing Orders and Financial Regulations which requires annual governance reporting as part of the annual returns.
Asset management will be integrated with financial and budgetary planning to inform decision making, incorporating a life cycle approach in asset management to achieve value for money usage of all assets. This policy also establishes accountability and responsibility for asset condition, use and performance.
Local Councils can acquire or dispose of assets under the general power in section 111 Local Government Act (LGA) 1972 “power to do anything which is calculated to facilitate, or is conductive to or incidental to, the discharge of any of their functions”. However, for the acquisition of land and buildings special rules apply.
Usage and the protection of Assets
Parish Council assets should not be used by employees and Councillors to pursue their own personal business.
Parish Council assets should not be misused or maliciously damage by staff or Councillors.
Moveable assets like a laptop etc in the possession of staff and Councillors outside Council premises should be used to carry out Council business in accordance with this policy.
As far as is reasonably practicable, employees and Councillors will have full responsibility for the care, security and proper use of assets in their personal possession.
Asset Management Responsibility
Asset management needs a Corporate approach, hence requires appropriate initiative to give awareness and build internal capacity to undertake the required asset management activities.
Parish Clerk
Parish Clerk is the person responsible for all Parish Council assets and oversee implementation of the asset management policy.
The Parish Clerk fulfils the requirements of Town Council asset management processes.
Staff
The Parish Council staff are responsible for following asset management procedures and processes as set out in this policy.
Councillors
The Council should be aware of the Parish Council Asset Management policy and procedures and ensure procedures are followed when dealing with Parish Council assets in any capacity.
Asset Register
An asset register / database will be maintained in accordance with the Parish Council Financial Regulations which states in clause 14.6 the requirement to maintain such register
(14.6. The Clerk or RFO shall ensure that an appropriate and accurate Register of Assets and Investments is kept up to date. The continued existence of tangible assets shown in the Register shall be verified at least annually, possibly in conjunction with a health and safety inspection of assets.).
The asset database shall seek to capture information for both fixed and tangible moveable property with a life expectancy more than one year.
The asset register / database shall include the following information which is necessary for managing asset lifecycle.
- Date of purchase
- Make, model, and description
- Location
- Category of asset
- Purchase Cost
- Insurance Valuations
- Repairs / maintenance information (hyperlinks) to key reports
- Disposal information
Acquisitions and Disposals
Acquisition and disposal of assets will adhere to the Financial Regulation of the Parish Council as set out in the following clauses;
(14.2 No tangible moveable property shall be purchased or otherwise acquired, sold, leased or otherwise disposed of, without the authority of the Council, together with any other consents required by law, save where the estimated value of any one item of tangible movable property does not exceed £1,000. Such a disposal must be authorised by the Clerk or RFO and reported to the appropriate Committee or to Council)
(14.3. No real property (interests in land) shall be sold, leased or otherwise disposed of without the authority of the Council, together with any other consents required by law. In each case a report in writing shall be provided to Council in respect of valuation and surveyed condition of the property (including matters such as planning permissions and covenants) together with a proper business case (including an adequate level of consultation with the electorate).
(14.4. No real property (interests in land) shall be purchased or acquired without the authority of Council. In each case a report in writing shall be provided to Council in respect of valuation and surveyed condition of the property (including matters such as planning permissions and covenants) together with a proper business case (including an adequate level of consultation with the electorate).
(14.5. Subject only to the limit set in Regulation 14.2 above, no tangible moveable property shall be purchased or acquired without the authority of the full Council. In each case a report in writing shall be provided to Council with a full business case. )
Acquisitions of tangible moveable assets
Acquisitions of asset will comply with the Parish Council Financial Regulations and the following internal procedures and protocols shall also apply to asset purchase management activities.
- Assets which cost more than £100 should be tagged except when their useful life is less than 12 months. Computer components which stores data should be tagged notwithstanding its purchase price. When assets are purchased in bulk and the total cost exceeds £100, for example chairs, should be tagged individually. Tagging should continue where individual items of the bulk are replaced in the future.
- Prior to deployment, Managers and Staff shall assign an tag to the asset and pass the information to the Parish Clerk for entry onto the Asset Database (Scribe).
Disposals of tangible moveable assets
Assets disposal should be carried out with appropriate authorisation which is dependent on class of asset and asset value using the disposal form. Disposal of assets with inherent value should aim at ensuring value for money for the Council and obtaining a sale with an anticipated current value wherever possible.
Disposal principle
- High value Assets that are no longer required by the Parish Council should be disposed of by first determining an appropriate market valuation and if required, a third-party valuation should be sourced and then sold in the open market place.
- Appropriate authorisation to dispose of assets applies; The Parish Clerk authorises disposals of assets up to the market valuation of £1000, valuation above £1,000 requires the approval of the appropriate committee or the Parish Council in accordance with the Parish Council Financial Regulations.
- Appropriate authorisation does not apply where an asset is certified by a competent assessor or a Manager to be unusable and no longer functional, are not fit for purpose and are beyond repair or their use will breach regulatory compliance. A report for high value assets costing above £1,000 to replace should be sent to the appropriate Committee following such assets immediate disposal to avoid maintenance and hazard problems that their continuous use will bring.
Disposal Due Diligence
In determining if an asset is appropriate for disposal, appropriate due diligence is required as follows:
- Justification for disposal
- classification as usable with appropriate valuation or unusable
- Method of disposal (Note appropriate procedure for disposal of IT equipment and data storage devices)
- Sale Proceeds where cash is involved should follow the cash handling procedure.
- Where the sale involves trade-in for new equipment, this must be reported on the disposal form
Lost, stolen and destroyed assets
Lost, stolen and destroyed assets where the replacement cost is more than £1,000 must be reported on the disposal form following investigation and a report to the appropriate Parish Council Committee. The disposal form should be passed to the Parish Clerk for updating the Asset Register and for insurance claims where appropriate.
Audits and Valuations
Asset management processes and procedures will be reviewed annually following a process of category and or location by location audits of assets throughout the year which will ensure all assets will have been audited by the end of the financial year. Audits will account for all risks associated with the asset, defects identification, repairs and maintenance requirements and inventory audits. Audits will aim to manage asset life cycle as depicted below.
Insurance
The Parish Council insures all its assets and content to protect the assets for all insurable risks.
Policy Amendments and Reviews
Asset Management Policy shall be amended accordingly in line with the requirements and needs of the Parish Council. Such amendments shall be initiated by officers of the Parish Council or a Councillor and shall follow the proper procedures and Standing Orders of the Parish Council.
Appendix 1
ASSET DISPOSAL FORM
(To be completed and passed to the Parish Clerk and a copy saved in disposal folder in Assets on shared drive when disposing tagged assets)
Item description
Asset Numbers
Product Code
Item Location
Item Condition
Item Value
Reason for Purchase
Deployment Date:
Name:
Signed:
Date:
Authorised Manager:
Name:
Signed:
Date: