5. Fixed Assets Policy for NGOs

5.1 Purpose

To carry out its activities, NGO needs material resources. The quality of these resources is dependent upon how they are used. Material resources are in large part durable goods, which need to be well-managed to be maintained in good condition. These goods include stationary, tables, chairs, shelves, computers and related accessories. The Fixed Assets Policy will aim for:

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• precise identification of goods that are part of the asset base;
• sensible use of goods;
• periodic taking of physical inventory;
• effective maintenance of goods;
• replenishment of goods when required.

5.2 Procedures

At NGO, the management of material resources is the responsibility of the __________ staff. The procedures involved in managing these resources are:

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• receiving and recording goods;
• using goods properly;
• maintaining goods;
• taking inventory of goods;
• disposing of goods.

Material resources are managed by means of records or files.

5.3 Asset inventory

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The purpose of the inventory is the physical monitoring of the items belonging to a project. The inventory makes it possible to detect differences between information about goods in the records and the actual state of goods.

Inventory is usually done once a year and is the responsibility of the finance division.

5.4 Procedures

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The inventory procedure is composed of the following steps:

a. Creation of record cards on which is found:

• type of item
• description of item
• identification code
• service user or name of manager
• assigned location
• previous placement of item
• notes on condition of item
• record updates
• minutes of physical inventory

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b. Final removal of an item

c. Replacement of an item

d. List of annual needs

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5.5 Removal of items

The inventory procedure described above permits the identification of dilapidated or defective goods whose presence in office presents more inconveniences than advantages, for various reasons:

• steep rise in operating or maintenance expenses;
• excessive cost of repair;
• any other objective reason.

The Executive Director should give the authorization to take out of service, transfer or dispose of any items, and that should be noted in the book of assets.

More NGO Operational Policies:

1. General Personnel Policy (also Human Resource Policy)
2. Communications Policy
3. Computer Policy
4. Procurement Policy
5. Fixed Assets Policy
6. Finance Policy