Asset Management

The board accepts that it has a responsibility to protect the assets of the school and apply sound asset management standards. 

It has delegated responsibility to the principal to effectively manage the school’s assets, maintaining them in good working order within the approved budget; and to plan for replacement.

An asset is defined as a single item over the value of $500 with useful lives in excess of 12 months, that provide a benefit during their lives and are usually replaced, for example, computers, office equipment, library and curriculum resources, grounds keeping equipment. 

Asset register

Assets are listed on the Asset Register which generates each year's depreciation figure. This depreciation figure determines the cash equivalent for asset replacement.

All assets with a cost of $500 or more are recorded in the fixed asset register. The asset register is maintained by the principal and School Support. It is updated as new assets are purchased.

Asset purchases made with donated money are recorded in the register, and are included in the calculation for annual depreciation.

The asset register is reviewed annually to write off obsolete assets or to re-value assets whose value to the school has changed significantly.

FIXED ASSET MANAGEMENT

GUIDELINES:

                  Definition

Fixed assets are physical assets that are held by the school for use in the production or supply of goods and services, for rental to others or for administrative purposes and have been acquired or constructed with the intention of being used on a continuing basis.  Fixed assets also include items held for the maintenance or repair of other assets.

Fixed assets are property, plant and equipment used by the school for more than 12 months, over which the school has control.

                  Cost (Valuation)

Land and buildings that are owned by the Crown are occupied on the basis of a property occupancy agreement. Fixed assets that were transferred to the Board on 1 October 1989 are recorded at valuation as at that date and have since been depreciated. 

All other fixed assets are initially recorded at cost or, in the case of donated assets, initially recorded at their fair value at the date of receipt.  Initial cost includes the purchase consideration, or fair value as the case may be and those costs directly attributable to bringing the asset to the location and condition, or fair value as the case may be and those costs directly attributable to bringing the asset to the location and condition necessary for its intended use. Fixed assets are valued at historical cost and are not revalued.  Subsequent expenditure that increases or extends an asset’s service potential is capitalised. Where assets have been revalued in past periods the asset has been recorded at the last valuation.  The school has now ceased to revalue assets with additions since that date recorded at cost.

                  Recognition

Items of property, plant and equipment with an individual value in excess of $500 are capitalised on purchase.

Other items with individual value below $500 are expensed with the exception of furniture and fittings that are purchased in quantity where the total value exceeds $500, such as classroom sets of desks and chairs.  This is to reflect their significant total value as a percentage of the total assets held by the school.

Textbooks, even when purchased in quantity, are recorded as a learning resource expense and not capitalised on purchase.  This reflects the high usage and frequent curriculum changes that make textbooks obsolete.  Minor sports and teaching equipment, even when purchased in quantity, are recorded as a learning resource and not capitalised on purchase.  This reflects the need for regular replacement of these items and their overall low total value when compared to the total fixed asset holding.

                  Depreciation

Fixed assets are depreciated on a systematic basis.  Fixed assets except for library books, are depreciated so as to charge their cost or value over their estimated useful life on a straight-line basis.

Estimated useful lives are:  

Buildings – Improvements   and Land Improvements       (20-50 years) (straight line method)

Computers & Electronic Equipment                                      (2-5 years)

School Furniture & Equipment                                               (10 years)

Office Equipment                                                                      (5 years)

Library books are depreciated on a diminishing value basis per annum.

Leased equipment is depreciated over the lease term.  (When classified as a finance lease under NZ IAS-17).

                  Gain/Loss on disposal

Where a fixed asset is disposed of, the gain or loss recognised in the Statement of Financial Performance is calculated as the difference between the sales price and the carrying amount of the fixed asset.

When a fixed asset is written off because it is now obsolete or beyond repair the gain or loss recognised in the Statement of Financial Performance is the carrying amount of the fixed asset.

                  Review

The school undertakes a review of the useful life and method of depreciation for each category of fixed assets to ensure they are appropriate each year.

The school performs a physical stock-take of fixed assets at regular intervals to verify the physical existence and ensure that the true cost of fixed assets is reflected in the school’s financial statements.  

Reviewed Term 1 2023

Asset protection policy

Outcome statement

Assets of the school are utilised to maximise the best outcomes for students.

Scoping

Assets may not be unprotected, inadequately maintained or unnecessarily risked.

Delegations

The principal is delegated day-to-day responsibility for ensuring that the programming and funding of general maintenance of the school grounds, buildings, facilities and other assets occurs in order to provide a clean, safe, tidy and hygienic work and learning environment for students and staff.

Expectations and limitations

The principal must:

·       ensure all board assets are insured

·       not allow unauthorised personnel or groups to handle funds or school property

·       not subject plant and equipment to improper wear and tear or insufficient maintenance or inappropriate use

·       maintain an up-to-date asset register for all items of furnishing, plant machinery, equipment, text and library books costing more than $500

·       ensure the implementation of the 10-year property maintenance plan

·       engage sufficient property maintenance staff for the school within budget limitations

·       receive board approval for maintenance contracts over $5,000 for any one contract

·       conduct competitive tenders for all contracting

·       protect intellectual property, information and files from loss or significant damage or unauthorised access or duplication

·       not receive, process or disburse funds under controls that are insufficient to meet the board-appointed auditor’s standards

·       not invest or hold operating capital in insecure accounts or in non-interest-bearing accounts except where necessary to facilitate ease in operational transactions.

Procedures/supporting documentation

Asset Management Procedure.

Monitoring

Annual Audit

Legislative compliance

Refer to the Ministry of Education website for information on managing school finances and the Financial Information for Schools Handbook (FISH).

Reviewed Term 1, 2023