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Asset register procedure

Contents

1 Aim

The purpose of this procedure is to explain the process of asset management in maintaining an accurate asset register and to describe the role of managers in this process.

Capital assets comprise a significant part of the trust’s resources. Capital expenditures must follow an established review and approval process to ensure their appropriateness. Capital assets are also subject to various legal provisions (for example, building codes, property rights) and also to specific international accounting policies which set out the rules by which capital assets must be reported.

2 Scope

This procedure applies to all managers who are responsible for acquiring, maintaining, recording and disposing of capital assets as set out in Procedures.

3 Link to overarching policy

  • IAS 16 property, plant and equipment.
  • Guidance for the management of capital schemes.
  • Scheme of delegation.

4 Capital assets

Capital assets are items of property, plant, equipment and software licences that have a purchase price of £5,000 or more and a useful life of more than one year.

4.1 Grouped assets

Some items of equipment will be classified as a grouped asset where all of the following apply:

  • the items collectively have a value in excess of £5,000 and individually they cost more than £250
  • there is clear functional interdependence in the use of the items
  • the items have broadly simultaneous acquisition dates and anticipated disposal dates
  • the items are under single managerial control
  • the items have a useful life of more than one year or
  • the items form part of the initial equipping and set–up cost of a new building, ward or unit

4.2 Donated capital assets

A donated capital asset is an asset, with a purchase price of £5,000 or more and a useful life of more than one year that is acquired from other than exchequer monies and has been received as a gift or purchased out of charitable funds.

5 Procedure

5.1 Acquisitions

Purchased acquisitions, capital assets are purchased from the capital expenditure allocation in accordance with the document, ‘guidance for the management of capital schemes’.

On completion the financial accountant will record details of the scheme on form ADT 1 (appendix A) The head of estates and facilities will authorise this form.

Donated acquisitions, managers in receipt of a donated asset will complete sections 1 and 2 of form ADT1 (appendix A), identifying in section 1 that the asset is donated.

The completed form will be sent to the financial accountant.

For both purchased and donated assets the financial accountant will record the following asset details on the asset register:

  • description
  • location
  • cost
  • purchased and donated
  • life
  • depreciation method
  • financial code.

5.2 Disposals and commendations

Assets deemed to be surplus to requirements, obsolete, irreparable will be authorised for disposal and condemnation in accordance with the scheme of delegation. The budget manager will complete section 2 of form ADT2 (appendix B) and return to the financial accountant. The form will then be forwarded to the head of procurement if the asset is to be sold.

The financial accountant will remove the asset from the asset register, recording if the asset is sold and any sale proceeds.

5.3 Transfers

Details of assets transferring form one department to another will be recorded on form ADT3 (appendix C). Both the transferring and receiving manager will sign the completed form and return to the financial accountant.

The financial accountant will record the amended details on the asset register.

5.4 Verification

Managers will be required to confirm accuracy of the asset register on an annual basis.

The financial accountant will send managers a list of all assets under their control. Managers will return a signed declaration to confirm that the assets are still in use.

Random physical checks on a sample of assets will be undertaken by the financial accountant as provided by these declarations, and any discrepancies between the physical check and the asset register will be investigated.

5.5 Valuation

The financial accountant will review asset values and asset lives on an annual basis.

Equipment will be valued at depreciated historic cost as this a proxy for current value in existing use.

Where land and property values are volatile they will be valued on an annual basis. Otherwise a full valuation will be carried out every 5 years by a professional valuer, with an interim valuation in the third year

There are no specific training needs in relation to this procedure, however the following staff should be familiar with its contents.

Finance staff, procurement staff, clinical and non-clinical managers

Staff may be made aware through the following means:

  • daily communications email
  • intranet

6 Equality impact assessment screening

To access the equality impact assessment for this policy, please email rdash.equalityanddiversity@nhs.net to request the document.

7 Appendices

7.1 Appendix A Acquisitions ADT 1

7.2 Appendix B Disposals and commendations ADT 2

7.3 Appendix C Transfers ADT 3


Document control

  • Version: 6.1
  • Unique reference number: 193.
  • Date approved: 28 December 2023
  • Name of originator or author: Head of financial planning and reporting.
  • Name of responsible individual: Director of finance.
  • Date issued: 5 January 2024.
  • Review date: August 2024.
  • Target audience: Audience: All managers with responsibility for purchasing, recording maintaining and disposing of capital assets).

Page last reviewed: January 17, 2025
Next review due: January 17, 2026

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