Lord Howe Island Board s1

Board Meeting: September 2014 Agenda Number: 8(iii) File Ref: PO 0025

1LORD HOWE ISLAND BOARD Business Paper

Infrastructure, Property, Plant and Equipment Policy

BACKGROUND

The current Property, Plant and Equipment Policy has not been reviewed since its adoption in 2003. Consequently the Policy is outdated in that, for example, it classifies business equipment valued at $500.00 as a minor asset and therefore requiring a record to be kept in the Asset Register in the same way as a major asset. This results in an unnecessary accounting and administrative burden and is out of step with contemporary asset management practices.

CURRENT POSITION

Treasurer’s Directions state the following:

(1) All Authorities shall maintain a special record of the following assets: (a) plant, equipment, machinery, motor vehicles, tools, furniture, office equipment, scientific apparatus, books and appliances; (b) books issued on loan; and (c) works of art.

(2) Subject to (5) and (6) below, where, in the opinion of a senior officer, there is considered to be no significant risk, the maintenance of plant records for office furniture (including tables, chairs, document trays, lockers, cupboards, filing cabinets, floor coverings, etc.) may be discontinued.

(3) The record required to be maintained in (1) above shall apply to items costing more than $5,000 and with a useful life of more than two years, except as indicated in (4) below.

(4) Items costing $5,000 or less which are at risk of loss by misappropriation shall also be recorded at the discretion of management.

(5) Administrative control shall be kept of the usage rates of all items exempted from being recorded as plant. Requisitions for unrecorded items shall be supported by a statement of the reasons for procurement, and where appropriate, the date and quantity of the last supply. The approving officer shall satisfy himself of the need for the quantity requisitioned.

(6) All `unrecorded plant items', including those delivered to one Authority from another, shall be entered in a Goods Inward Book or other appropriate record as received.

The attached draft Infrastructure, Property, Plant and Equipment Policy has been updated to reflect contemporary asset management practices. It complies with Treasurer’s Directions RECOMMENDATION

It is recommended that the Board adopt the draft Infrastructure, Property, Plant and Equipment Policy attached.

Prepared ______Bill Monks Manager Business & Corporate Services

Endorsed ______Penny Holloway Chief Executive Officer