企业财务基础知识培训教材课件

BestPracticeFinancialProcesses:FixedAssetsBestPracticeFinancialProcesFixedAssets-BestPracticeObjectivesFixedAssetsObjectivesTomaintainacompleteregisterofalltheorganisation’sfixedassetswhichreflectslocation,age,currentvalues,associatedcostcentresTocalculatedepreciationconsistentlywithfinancialreportingrequirementsTooptimisereplacementpoliciesTominimiseownershipcostsOrganisationAssetrecordingintegratedwithmaintenanceandnonfinancialdataCentralisedassetaccountingAssetownershipdevolvedtobusinessunitlevelPeopleControlfocusedChallengeassetrequisitionproposalsProcessesMaintainassetregisterAcquisitionsanddisposalsDepreciationchargeVerifyingassetbaseMaintainingofvaluationbasisControlsAssetverificationAssetvaluationAcquisitionanddisposalauthoritiesMeasuresNumberofassetsmaintainedCostofdepartmentElapsedtimetorecordassetInformationSystemsAssetledgersintegratedwithGLandAPDepreciationandprojectcontrolbycostcentreAutomateddepreciationcalculationFixedAssets-BestPracticeOMaintainfixedassetregisterControlacquisitionsanddisposalsManageperiodicassetdepreciationVerifyandvalueassetbaseProcessFeaturesDetermineassetcategoriesforinternalandstatutorypurposesMonitorassetmaintenancechargesApplyinsurancevaluationtokeyassetsEnsureassetresponsibilityatBUlevelIdentifyassetusageSetupappropriatecontrolofassetacquisitionanddisposalsacrosscompanyReportonacquisitionsanddisposalsonamonthlybasisMonitortaxissuesrelatedtoacquisitionsorCIPEnsureBUresponsibilityforassetsintheiruseandfordisposallossesDepreciateatpointofassetuseApplydepreciationrulestoassetclassesDepreciationratesinmanagementaccountsinlinewithstatutoryratesLinksassetdepreciationtoproductionandproductcosts/developmentRevaluekeyassetsonaregularbasisbasedonbookvalueandhighriskComprehensiveassetverificationonregularperiodicorrollingbasiswhereassetcannotbeverifiedviatechnicalassumptions(mosttelco’sdonotverifynetworkassets:thefactthatthenetworkworksisverificationenough)VerifynoncapitalisedassetsSystemFeaturesOnlineassetregisterholdingkeydataandcurrentcostallocationCostcodevalidationwithGLAutomaticlinkstoAPandProjectAccountingsystemtocaptureacquisitionsRevaluationoffeaturesandmasstransfersofassetstonewcostcentresLeasedassetfeaturescompliantwithaccountingstandardsAcquisitionlinkedtopurchaseorderandaccountspayableledgerDisposalslinkedtosalesledgerCIPlinkedtocapitalprojectaccountingEffectivetaxmanagementintegratedwiththefixedassetssystemDepreciationchargedautomaticallytocostcentresinGLForecastassetdepreciationforbudgetpurposesVariabledepreciationrulesforclassesofassetsAssetscanbegroupedfordepreciationrulesVariableassetvaluationmechanismseghistoric,currentreplacementCompleteassetreportsbyphysicallocationandcostcentreReportonidentifiedormissingassetsHoldnoncapitalisedphysicalassistsforverificationBarcodingofassetsforverificationFixedAssets-BestPracticeFeaturesMaintainfixedControlacquisitFixedAssets-Measures/CostDriversNoofBusinessUnitFTEsperFixedAssetsFTE90percentileMedian10percentile5,2001,40035010percentileMedian90percentile£7£31£151CostdriversFixedAssetscostperBusinessUnitFTE(in£s)Median14days90percentile40days10percentile1dayFixedAssetsprocessingtimeComplexityofassetsNumberofassetsonregisterNumberofassetmovementsComplexityofdepreciationpoliciesComplexityofauthorisationproceduresRangeofdataheldNumberofusersofdatarangeSource:StatisticstakenfromBenchmarkingdatabase:21February1997FixedAssets-Measures/CostDSeparatefixedassetsmoduleLackofassetownershipCostofassetusagenotattributedtoproductPerformedbyFinanceDepartmentIntegratedsystemsfor:AssettrackingviaGeographicalInformationSystem(GIS)AssetusageNetworkCapacityPlanningAssetMaintenanceCapitalprojectplanningandcontrolProduct/servicecostingBUresponsibilityforownershipFromToFixedAssets-TrendsSeparatefixedassetsmoduleInFixedAssets-CriticalSuccessFactorsTheseareasummaryofthekeybusinessrequirements,whichmustbemettoachievetheobjectives.AssetaccountingpoliciesclearlydocumentedAppropriatecodingbyassetcategoryestablishedAuthoritylevelsclearlydefinedProceduressurroundingFixedAssetprocessaredocumentedandcommunicatedtostaffBudgetsinplaceforcapitalexpenditureAllexistingassetsidentifiedandclassifiedStafftrainedinFAprocessandhaveclearrolesandresponsibilitiesStatutoryandtaxrequirementsunderstoodFAcalendarinplaceandcommunicatedtostaffStandingdatasetuponthesystemreflectingassetaccountingpoliciesAbilitytomodeldepreciationscenarioFixedAssets-CriticalSuccesInventoryAccountsPayableAuditProjectaccountingPurchasingGeneralLedgerFixedAssetsFixedAssets-Level0ContextDiagramAssetdata(depreciationetc)GoodsissuedAssetdetails&assetpaymentsMgtReportsStatutoryreportsAssetdisposalsCapitalisedassetsCommitmentsUniqueassetidentifierManagementAccountingAccountsreceivableMaintenanceMaintenaceCycleCircuitProvisioningUsagedataInventoryAccountsPayableAuditFixedAssets-Level1OverviewFA1.1MaintainStandingDataFA1.2AddAssetsFA1.3DisposeofAssetsFA1.4MaintainAssetRegisterFA1.5PerformPeriodEndRoutinesFA1.6VerifyPhysicalAssetsActivitiesFA1.7AnswerAdhocqueriesRaiserequeste.g.newassetclassPrepareformalrequestReviewandapproveSetupnewcodes/dataNotifyaffectedusersanddepartmentsInputautomaticdataInputmanualdataAddadditionalinformationPostassetdetailsReceiverequestTransferassetsAdjustassetsRevalueassetsCapitaliseWIPassetsReportonamendmentsWrite-off/downassetsCapitalisedlabourcalculationDepreciationcalculatedDepreciationpostedtoGLReconcileaccountsSendmonthlyreportstoownersCompileaccuratedataforassetverificationConductinventorycheckHighlightexceptionsTrackassethistory&reconcileUpdateFAregister&prepareGLjournalsReceiverequestsforadhocreportsProducereportsSelectassetstodisposeObtainquoteifapplicableSell/disposeofassetsNotifyrelevantaccountantsRecordtransactionsinaccountsReconcileGLaccountsCalculateprofit/lossondisposalChangesinFAPoliciesandProceduresFAregisterstructuremaintainedUpdatedFARegisterUpdatedFAregister&reportsReconciledGLA/c’sRequestforadhocreportsReportsVerifiedFARegisterAuthorisedGLadjustmentsAssetsfromAPorprojectaccountingAssetAdditionnotificationGLa/c’smaintainedfordisposalUpdatedFARegisterGLa/c’smaintainedforadditions

AssetadditionnotificationAmend/updateassettypesorcategoriesMaintainStandingDataFA1.1AddAssetsFA1.2DisposeofAssetsFA1.3MaintainAssetRegisterFA1.4VerifyPhysicalAssetsFA1.6AnswerAdhocQueriesFA1.7AdjustmentsReportsNotificationproceduresSystemvalidationcontrolsChangerequestproceduresAuthorisationrulesRequesterFAaccountantFinancemanagerSystemcontrolsAccountingpoliciesDisposalprocedures,validationprocedures,authorisation,reconciliationproceduresCostcentremanager,FAaccountingstaff,FArequester,financialmanagerReportsAPsystemFAaccountingstaffCostcentremanagersAuthorisationproceduresMaintenancepolicySystemcontrolsFAaccountingstaffCostcentremanagerManagementaccountantDepreciationpoliciesMaintenancepoliciesSystemscontrolsMonthendreconciliationPeriodendtimetableCostcentreanalysisFAaccountingstaffFAsystemVerificationtimetableInventorycontrolsystemAudittrialAuthorisationforwriteoff’sFAaccountingstaffInventorystaffReportingguidelinesSystemcontrolsFAaccountingstaffFAsystemsCostcentremanagersPerformPeriodEndRoutinesFA1.5FixedAssets-Level1OverFixedAssets-Level2FA1.1MaintainStandingDataFA1.11RaiserequestFA1.12PrepareformalrequestFA1.13ReviewandapproveSubProcesses/NotesFA1.14Setupnewcodes/dataSendrequesttoFAaccountantbye-mailwithfullexplanation/reasonforrequestEvaluaterequestagainstcurrentFARegistertoidentifyactualneedfornewstandingdataRaiserequestandattachoriginalEvaluaterequestCommunicateacceptanceorrejectiontooriginatorSetupstandingdatabyFAAccountantReviewset-updataandcodesperiodicallyFA1.15Notifyaffectedusers

andgroupsChangesinFAPoliciesandProceduresRequestFormalrequestAcceptedrequestRejectedrequestActionedrequestFARegisterstructuremaintainedAmend/updateassettypesorcategories

RaiserequestFA1.11PrepareformalrequestFA1.12Setupnewcodes/dataFA1.14Notifyaffectedusers&groupsFA1.15Sendformalnotificationofset-upNotifythatrequestrejectedandwhyChangerequestproceduresChangerequestproceduresAuthorisationrulesSystemvalidationcontrolsNotificationproceduresRequesterFAAccountantFinanceManagersFAAccountantFAAccountantReviewandapproveFA1.13FixedAssets-Level2FA1.FixedAssets-NotesonMaintainStandingDataBestPracticeFeaturesAssetaccountingpolicesclearlydocumented;MasterDatasetuponthesystemtoreflectthesepoliciesAppropriatecodingbyassetcategoryestablishedProceduressurroundingtheFixedAssetprocessaredocumentedandcommunicatedtostaffincludingrequirementsforissuingnewcodesAssetRegisterRulesincorporatedintoMasterFile,whichcontrolissuesofnewnumberswithinstructuredcodingschemeStafftrainedinFixedAssetAccountingprocessesandhaveclearrolesandresponsibilities.TheyshouldhaveagoodunderstandingofnetworkandengineeringareasSupervisorystaffunderstandstatutoryandtaxrequirementsInternalControlRequirementsOnceentered,updatesshouldbeverifiedagainsttheoriginalrequestsCodeswillbereceivedfromtheMasterFileandupdateswillbeconfirmedagainsttheMasterFileThesystemwillcheckthatallrequireddatafieldsarecompleteTheremustbesupervisoryreviewforMasterDataupdatesKeyPerformanceIndicatorsSpeedofupdate:timefromreceiptofrequesttomodificationandverificationofrecords:thisshouldnotexceedonedayNumberofinputerrorswhenassetdetailsarevalidated:thisshouldbezeroCostDriversComplexityofassetsNewtypesofassetsNumberofchangestophysicallocationcodingFixedAssets-NotesonMaintaFixedAssets-Level2FA1.2AddAssetsFA1.21InputautomaticdataFA1.22InputmanualdataFA1.23AddadditionalinformationFA1.24PostassetdetailsSubProcesses/NotesReceiveassetadditionnotificationsfromAPintoFARegisterRuninterfaceswithAPtotransferinvoicelinesTag/labelassetwithuniqueidentifierManuallyenterassetswhichdonothaveinvoiceinformationIdentifyassetsas;WIP;Expenses;andCapitalisedassets.Addadditionalassetdatailtolinese.g.assignassetcategories;splitormergeassets;andaddtoexistingascostadjustment.AssignassetlifeAssignassettodepartmentalmanager,locationPostpreparedlinestofixedassetregisterAssetsfromAPorProjectAccountingAssetadditionnotificationAPlineswithSkeletondetailsAPlineswithadditionalinformationAddedAssetsUpdatedFARegisterFAregisterstructuremaintainedFAregisterstructuremaintainedGLa/cmaintainedforadditionsInputautomaticdataFA1.21AddadditionalinformationFA1.23PostassetdetailsFA1.24InputmanualdataFA1.22SystemcontrolsAccountingpoliciesAccountingPoliciesSystemControlsAPSystemFAaccountingstaffSystemcontrols&accountingpoliciesFAaccountingstaffFAaccountingstaffFAaccountingstaffCostcentremanagersFixedAssets-Level2FA1.FixedAssets-NotesAddAssetsBestPracticeFeaturesLinkeddatabasesusedinrecordingassetdetails,toincreaseaccuracyoftheassetregisterandtoeliminateduplicatepapertrailsAppropriateasset“numbering”methodsdrivenbyusersofassetinformation;barcodingusedonrelevantassetsDirectlinkstoProjectAccountingClearpolicyestablishedfortreatmentofassetsandguidanceonhowtoclassifydifferenttypesofassets,toreducethenumberofreclassificationsneededSysteminterconnectiontoMIS(ManagementInformationSystems)fortaxandinsuranceplanningAssetsidentifiedby“custodian”,i.e.personwhocontrolstheasset,ratherthanadepartmentorthecompanyasawholeUnifiedtransferpricinginallBusinessUnitsforassettransfersUseofassettransferstrategytooptimisetheusageofassetsInternalControlRequirementsAssetnumbercontrolsAllassetregisterupdatesreviewedafterentry,tolimitperiodenddifferencesUpdatedetailssentperiodicallytosourceandassetcustodian(orotherinitiatoroftheupdate)forinformationandcoroborationpurposesKeyPerformanceIndicatorsNumberofreconciliationatperiodend:ifareconciliationisneededbetweenFixedAssetsandotheraccounts,thisindicatesthatoneorotheroftheaccountsisnotuptodateNumberofchangesprocessedNumberofverificationadjustmentsCostDriversNumberofassetsAverageusefullifeofassets(i.e.rateofassetturnover)NumberofchangesinMasterDataleadingtomanualadjustments.(e.g.changeinorganisationcodes)Numberofrevaluation's/disposalsFixedAssets-NotesAddAssetFixedAssets-Level2FA1.3DisposeofAssetsSalespriceandbuyerconfirmedSale/DisposalcompletedAssetsaleordisposalregisteredwithAccountsdeptFARegisterupdatedAssetsidentifiedfordisposalAssetdisposalnotificationInterfacetoGLFA1.31SelectassetstodisposeFA1.32Obtainquote(ifapplicable)FA1.33Sell/DisposeofAssetFA1.34NotifyAccountantsFA1.36ReconcileGLaccountsSubProcesses/NotesCostCentremanagersidentifyitemsfordisposalCostCentremanagertoobtainquoteforasset,placeiteminauction,oradvertiseasappropriateAssetsoldandmoniesreceivedbyCostCentremanagersCostCentremanagerstoensuremoniesreceivedforassetsasagreedorexpectedfromauctionInvoicesraisedbyARforsaleofassetsoncreditCostCentremanagerstonotifyFAstaff/accountsofdisposalsCostCentremanagertoensureassetpaymentreceivedandregistered.EnsureFAregisterreconcileswithassetvaluesinGLGLmaintainedforDisposalsEnsurethatalldetailsofprofit/losshavebeenrecordedaccuratelytothecorrectcostcentresinGLFAaccountanttoupdateregisterwithdisposalsFA1.35RecordTransactionsinaccountsSelectassetstodisposeFA1.31Obtainquote(ifapplicable)FA1.32Sell/disposeofassetsFA1.33NotifyfinanceFA1.34ReconcileGLaccountsFA1.36GLa/c’smaintainedfordisposalsUpdateFAregisterDisposalproceduresValuationproceduresAuthorisationproceduresDisposalproceduresDisposalproceduresReconciliationproceduresCostcentremanagersCostcentremanagersCostcentremanagersCostcentremanagerFAaccountingstaffFAregisterFAaccountingstaffFinancialmanagerRecordtransactionsinaccountsFA1.35FixedAssets-Level2FA1.FixedAssets-Level2FA1.4MaintainAssetRegisterFA1.41ReceiveRequestFA1.42TransferAssetsFA1.43AdjustAssetsFA1.44Write-off/downassetsSubProcesses/NotesFA1.45RevalueAssetsFA1.46CapitaliseWIPAssetsFA1.47ReportonadjustmentsReceiverequesttoalterfixedassetsregisterTransfersingleassetbetweenGLdepreciationexpenseaccountsordepartmentsTransferagroupofassetsbetweenGLdepreciationexpenseaccountsordepartmentsReserveadjustmentsi.e.adjustforaccumulateddepreciationforsingleorgroupsofassetsFullyorpartlywriteoffassetsCalculategainsandlossesbeforerunningdepreciationRecognise‘golive’statusCommencedepreciationRevalueassetsRundepreciationRunreportsdetailingchangestoFAregisterSystemscontrolsUpdatedFARegisterFAaccountingstaffCostcentremanagersManagementaccountantAuthorisationproceduresMaintenancepolicyAssetregisterupdatedReportsAuthorisationproceduresMaintenancepolicyFAAccountingstaffCostcentremanagersReceiverequestFA1.4TransferAssetsFA1.42AdjustAssetsFA1.43Write-off/downAssetsFA1.44RevaluedAssetsFA1.45CapitaliseWIPAssetsFA1.46ReportonadjustmentsFA1.47FAaccountingstaffApprovedrequestFixedAssets-Level2FA1FixedAssets-Level2FA1.5PerformPeriodEndRoutineSubProcesses/Notes

FA1.52CalculatedepreciationFA1.53PostdepreciationtoGLFA1.54ReconcileaccountsFA1.55SendmonthlyreportstoassetownersCalculatecumulativedepreciationtodateintheyearbasedoncurrentassetregisterwithreferencetorelevantassetrulesPrepareallpostingsforGLe.g.additions,disposals,depreciation,adjustmentsPosttoGLautomaticallyReconcileAssetregistertoBalanceSheetReportonadjustments/correctionsrequiredGeneratestandardmonthendasset/depreciationreportforrelevantmanagersReportsUpdatedFAregister&reportsReconciledGLaccountsDepreciationamountsFAinterfacewithGLAdjustmentsCalculatedepreciationFA1.52PostdepreciationtoGLFA1.53ReconcileaccountsFA1.54SpendmonthlyreportstoassetownersFA1.55DepreciationpoliciesMaintenancepoliciesSystemscontrolsMonthendreconciliationPeriodendtimetableCostcentreanalysisPeriodendtimetableFAaccountingstaffFAaccountingstaffFAsystemFAaccountingstaffFAaccountingstaffFAsystemAdjustmentsFixedAssets-Level2FA1FixedAssets-NotesDepreciationcalculation

BestPracticefeaturesIntegratedfixedassetsystemstocalculatedepreciationchargesfortaxandaccountingpurposesDepreciationratesbyassetcategoryarebasedonusefullifeoftheasset,ratherthandesignedtomeetaccountingrequirementsonlyConsistencyofdepreciationmethodsandratesacrossthebusinessInternalControlrequirementsResultsofdepreciationruncomparedtoexpectedamounts(frombudgetorforecast)toidentifypotentialerrorsandover-runsUpdatestoassets’depreciationinformationmustonlybeacceptedifproperlyauthorisedandconsistentwithmanagement/taxpolicyKeyPerformanceIndicatorsTimetakentoupdatedepreciationdatainfixedassetregisteratperiodcloseReconcilingitemsondepreciationaccounts:shouldbezeroCostDriversNumberofdepreciationratesNumberofassetsFixedAssets-NotesDeprFixedAssets-NotesPerformPeriodEndRoutineBestPracticeFeaturesAutomaticdataflowsbetweenledgers,e.g.,betweenFixedAssetRegisterandGeneralLedger,ProjectAccounting,etc.,toremovemanualreconciliationeffortSystemallowsassetstobegroupedordesegregatedforreportingpurposesInternalControlRequirementsSysteminternalcontrols(e.g.userprofiles)TimelyandaccurateclearanceofsystemrejectreportsReconciliationofbudgetVs.actualperiodendtotalsReconciliationofmovementinfixedassetaccountsforthemonth

(e.g.newNBV=oldNBV+additions-disposals-depreciation)KeyPerformanceIndicatorsTimetakentocloseFixedAssetRegisteratperiodendTimetakentocompletetheGL/FAreconciliationDifferencesduringreconciliationTimetoprintouttheperiodendreportsCostDriversNumberofassetrecordsCPUtimeforgenerationofreportsReconciliationrequiredtoclearGeneralLedgermis-matchesNumberofnecessarychangesduringreconciliationwithGeneralLedgerFixedAssets-NotesPeFixedAssets-Level2FA1.6VerifyPhysicalAssetsFA1.61CompileaccuratedataforassetverificationFA1.62ConductinventorycheckSubProcesses/NotesFA1.63HighlightexceptionsFA1.64Trackassethistory&reconcileFA1.65UpdateFAregister&prepareGLjournalsValidationchecksonFAregisterCompileFAreportstorequiredspecificationsConductinventorycheck/FAverificationCompleteformalcheckreportsIdentifybookvalueandphysicallycheckvariancesReportdifferencesTrackassethistories/audittrialReconciledifferencesEnterwrite-offonFAregisterviaadjustmentordisposaljournalsUpdatedFAregister&reportsCompletelistforInventorycontrolFeedbackonitemsheldItemstobefurtherinvestigatedIdentifiedcorrectionsVerifiedFAregisterAuthorisedGLadjustmentsCompileaccuratedataforassetverificationFA1.61ConductinventorycheckFA1.62HighlightexceptionsFA1.63TrackassethistoryandreconcileFA1.64UpdateFAregister&prepareGLjournalsFA1.65VerificationtimetableInventorycontrolsystemInventorycontrolsystemAudittrialAuthorisationforwriteoff’sFAaccountingstaffInventorystaffFAaccountingstaffFAaccountingstaffFAaccountingstaffFAaccountingstaffFixedAssets-Level2FA1FixedAssets-NotesVerifyPhysicalAssetsBestPracticefeaturesAllexistingcapitalisedassetsidentifiedandclassifiedRegularphysicalverification,focusedonhigh-valueandhigh-riskareasUsealternativeverificationmethodswhereappropriateegreviewmaintenancelog,establishthatassetisoperatingeffectivelyInternalControlrequirementsRegularphysicalverificationexercisesandreconciliationtotheFixedAssetRegisterFixedAssetsmustensurethattransferredassetsretaintheiroriginalprojectnumberidentificationintheassetrecord,toensureappropriateaccesstoarchivedrecordsCostDriversNumberofverificationsrequiredFixedAssets-NotesVerifyFixedAssets-Level2-FA1.7AnswerAdhocQueriesReceiverequestforadhocreportsFA1.71ProducereportsFA1.72FARegisterFAaccountingstaffFAsystemsRequestforadhocreportsReportsFAReportroutineReportsSystemcontrolsFAregisterroutinesFAaccountingstaffFAsystemsCostcentremanagersFA1.71ReceiverequestforadhocreportsFA1.72ProducereportsSubProcesses/NotesReceivenon-standardspecificationPreparereportsroutinesGeneratereportsFixedAssets-Level2-FA1.FixedAssets-Appendix1:IDEFProcessFlowThediagrambelowprovidesakeytotheprocessdiagramsusedinthisdocument.Process/activityControls(i.e.ProceduresStandardsRequirementsforrework)Output(i.e.InformationMaterial)Resources(i.e.PeopleFunctionsITsystemsMachines)Input(i.e.InformationMaterial)FixedAssets-Appendix1:IDBestPracticeFinancialProcesses:FixedAssetsBestPracticeFinancialProcesFixedAssets-BestPracticeObjectivesFixedAssetsObjectivesTomaintainacompleteregisterofalltheorganisation’sfixedassetswhichreflectslocation,age,currentvalues,associatedcostcentresTocalculatedepreciationconsistentlywithfinancialreportingrequirementsTooptimisereplacementpoliciesTominimiseownershipcostsOrganisationAssetrecordingintegratedwithmaintenanceandnonfinancialdataCentralisedassetaccountingAssetownershipdevolvedtobusinessunitlevelPeopleControlfocusedChallengeassetrequisitionproposalsProcessesMaintainassetregisterAcquisitionsanddisposalsDepreciationchargeVerifyingassetbaseMaintainingofvaluationbasisControlsAssetverificationAssetvaluationAcquisitionanddisposalauthoritiesMeasuresNumberofassetsmaintainedCostofdepartmentElapsedtimetorecordassetInformationSystemsAssetledgersintegratedwithGLandAPDepreciationandprojectcontrolbycostcentreAutomateddepreciationcalculationFixedAssets-BestPracticeOMaintainfixedassetregisterControlacquisitionsanddisposalsManageperiodicassetdepreciationVerifyandvalueassetbaseProcessFeaturesDetermineassetcategoriesforinternalandstatutorypurposesMonitorassetmaintenancechargesApplyinsurancevaluationtokeyassetsEnsureassetresponsibilityatBUlevelIdentifyassetusageSetupappropriatecontrolofassetacquisitionanddisposalsacrosscompanyReportonacquisitionsanddisposalsonamonthlybasisMonitortaxissuesrelatedtoacquisitionsorCIPEnsureBUresponsibilityforassetsintheiruseandfordisposallossesDepreciateatpointofassetuseApplydepreciationrulestoassetclassesDepreciationratesinmanagementaccountsinlinewithstatutoryratesLinksassetdepreciationtoproductionandproductcosts/developmentRevaluekeyassetsonaregularbasisbasedonbookvalueandhighriskComprehensiveassetverificationonregularperiodicorrollingbasiswhereassetcannotbeverifiedviatechnicalassumptions(mosttelco’sdonotverifynetworkassets:thefactthatthenetworkworksisverificationenough)VerifynoncapitalisedassetsSystemFeaturesOnlineassetregisterholdingkeydataandcurrentcostallocationCostcodevalidationwithGLAutomaticlinkstoAPandProjectAccountingsystemtocaptureacquisitionsRevaluationoffeaturesandmasstransfersofassetstonewcostcentresLeasedassetfeaturescompliantwithaccountingstandardsAcquisitionlinkedtopurchaseorderandaccountspayableledgerDisposalslinkedtosalesledgerCIPlinkedtocapitalprojectaccountingEffectivetaxmanagementintegratedwiththefixedassetssystemDepreciationchargedautomaticallytocostcentresinGLForecastassetdepreciationforbudgetpurposesVariabledepreciationrulesforclassesofassetsAssetscanbegroupedfordepreciationrulesVariableassetvaluationmechanismseghistoric,currentreplacementCompleteassetreportsbyphysicallocationandcostcentreReportonidentifiedormissingassetsHoldnoncapitalisedphysicalassistsforverificationBarcodingofassetsforverificationFixedAssets-BestPracticeFeaturesMaintainfixedControlacquisitFixedAssets-Measures/CostDriversNoofBusinessUnitFTEsperFixedAssetsFTE90percentileMedian10percentile5,2001,40035010percentileMedian90percentile£7£31£151CostdriversFixedAssetscostperBusinessUnitFTE(in£s)Median14days90percentile40days10percentile1dayFixedAssetsprocessingtimeComplexityofassetsNumberofassetsonregisterNumberofassetmovementsComplexityofdepreciationpoliciesComplexityofauthorisationproceduresRangeofdataheldNumberofusersofdatarangeSource:StatisticstakenfromBenchmarkingdatabase:21February1997FixedAssets-Measures/CostDSeparatefixedassetsmoduleLackofassetownershipCostofassetusagenotattributedtoproductPerformedbyFinanceDepartmentIntegratedsystemsfor:Asse