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2012

OGASCO
Fixed Asset Management Procedures Manual
This manual contains all information and procedures on how to manage and Control Companys fixed assets. This manual will help us in maintaining detailed and updated all fixed assets record of the company. This maintained and updated record will lead us to the low wastage, damage or disappearance of the fixed assets which will automatically cut down the cost of fixed assets.

Prepared by Zeeshan Saleem (S-388) Fixed Assets Controller (Store Department) 7/22/2012

OGASCOs Fixed Asset Management Procedures Manual 2012

Table of Contents

FIXED ASSET MANAGEMENT PROCEDURES MANUAL ............................................... 2 Organizational Responsibilities ................................................................................................. 2 1) Purpose............................................................................................................................... 2 2) Objectives .......................................................................................................................... 2 3) Scope .................................................................................................................................. 2 4) Responsibilities .................................................................................................................. 2 5) Acquisitions ....................................................................................................................... 2 6) Fixed Assets Number (Tags) ............................................................................................. 3 7) Transfer of Assets .............................................................................................................. 3 8) Retirements and Disposals ................................................................................................. 3 9) Asset Inventory .................................................................................................................. 4

OGASCOs Fixed Asset Management Procedures Manual 2012

FIXED ASSET MANAGEMENT PROCEDURES MANUAL


What is Fixed Asset? Items of properties that are tangible in nature; have significant value; have an economic useful life longer than 1 year; maintain their identities, either as separate entities or as identifiable components; are not repair parts or supply items; and are used in the conduct of Companys activities.

Organizational Responsibilities
1) Purpose
The purpose of this document is to establish organizational responsibilities of all departments and managers for fixed asset management, control, accounting, and record keeping and to define fixed assets and the guidelines for their capitalization.

2) Objectives
The objectives of this document are as follows: To ensure consistent Companywide procedures for fixed asset accounting, management, control, and accountability To ensure that management has adequately minimized risk to assets through internal controls To ensure proper financial accounting and reporting in accordance with Generally Accepted Accounting Principles (GAAP)

3) Scope
This procedure applies to all Companys departments and employees, regardless of classification or function. All OGASCO managers and employees shall exercise the utmost care and diligence in the use, maintenance, and protection of all fixed assets.

4) Responsibilities
Fixed Assets Controller will; Maintain all fixed assets records and reports on these resources. Manages the assets assigned to the other department or site.

5) Acquisitions
All departments will identify and report all fixed assets acquired in the appropriate format to the Fixed asset controller. Fixed assets and controlled items, including new purchases will also be recorded regardless of acquisition type.

OGASCOs Fixed Asset Management Procedures Manual 2012

6) Fixed Assets Number (Tags)


Identification and tagging of assets will take place in accordance with the following guidelines: It is the Fixed Asset Controller responsibility to assign, record, and affix identification numbers (tags) to all fixed assets. All fixed assets and controlled items will be assigned an asset number upon receipt and before the item is placed into service.

Along with the fixed asset number, a color coding will also be used to identify the current location i.e. site in which fixed asset is being placed and used. The controller will affix tags to an asset in a conspicuous and convenient location.

Tags will remain on the asset throughout the life of the asset. Damaged tags will be replaced as needed.

Its the responsibility of the fixed asset holder to report the fixed asset controller about the damaged or faded tags, so that the new tag should be pasted on that asset by replacing the older one before it is completely removed.

7) Transfer of Assets
The transfer of assets will take place in accordance with the following guidelines: Both the transferring and receiving department or section will appropriately account for fixed asset transfers. This applies to transfers between departments (i.e. transfer of fixed asset from 1 department or store to other department or yard) or outside the OGSCO yard (i.e. on sites). The transferring and receiving department will approve fixed assets transfers from fixed assets controller. Once a transfer has been completed, the receiving department will confirm asset transfer information.

8) Retirements and Disposals


Departments will identify and record all fixed assets items that are removed from service, retired, and disposed of. All assets that are sold, exchanged, traded, stolen, damaged beyond repair, worn beyond utilization, cannibalized, or in any other way removed from service will be reported immediately to the fixed asset controller at store department and such fixed assets will be recorded as retirements in the current fiscal reporting period. All disposals and retirements for fixed assets will be performed in accordance with asset management guidelines and procedures established by the Director of Finance & Administration or a designee.

OGASCOs Fixed Asset Management Procedures Manual 2012

9) Asset Inventory
Fixed Asset Controller will conduct a full inventory inspection of all Fixed Assets at OGASCO Yard and sites, in accordance with the inventory schedule developed by Store Department, and will provide the results of that inventory to Accounts department. The responsibility of accounts department will be to match and compare the results from the physical inspection of fixed assets by Fixed Assets controller with their record from quick books. If the reconciliation of the fixed asset counts reveals discrepancies, it will be that departments responsibility to locate assets and reconcile all discrepancies from where the fixed asset is missing. The Accounts department & Fixed Asset controller will produce a complete OGASCO inventory report and provide this report to the General Manager and to the associated personnel.