Policy

Fixed Asset

1.       Purpose

1.1      To allow the council to maintain a register of its fixed assets.

2.       Fixed asset register

2.1      A fixed asset register is an important component in the control of the council’s assets.

2.2      The register:

2.2.1   facilitates effective physical control over assets

2.2.2   provides information that allows the council to make the most cost-effective use of its capital resources

2.2.3   helps to ensure assets aren’t overlooked, underutilised or used inefficiently

2.2.4   forms a record of assets held for insurance purposes

2.2.5   supports the completion of the annual return entry for capital assets by holding the relevant information in one place.

3.       Treatment of assets

3.1      A fixed asset is a physical item, e.g., land, buildings, equipment, plant and vehicles, purchased by the council, which has a cost of £1,000 or greater, has a useful life of more than one year and has a re-sale value before the end of its life.

3.2      A fixed asset is fully expended in the year of acquisition or disposal.

3.3      If the purchase cost of an asset is not known, an estimate will be applied.

3.4      The acquisition of a fixed asset requires a purchase order and procurement must be in accordance with the council’s financial regulations.

3.5      If the basis of fixed asset valuation is changed, the change should be applied consistently to all fixed assets.

3.6      A fixed asset will be maintained to maximise its useful life.

4.       Review

4.1      This policy will be reviewed in December 2027 or sooner if there are changes in legislation or best practice.

Implementation date: 11 December 2024

Review Date: December 2027

Mark Green                                                                                           

Deputy town clerk

December 2024