20121010 Maintaining Assets of the Charity P006-4

POLICY and PROCEDURE

For maintaining the assets of the Charity
ISO 9001:2008 Clause 6.3

Approvals

The signatures below certify that this procedure has been reviewed and accepted, and
demonstrates that the signatories are aware of all the requirements retained herein and are
committed to ensuring their provision.

Name Signature Position Date

Prepared by Tim Cheshire Finance Director 05/10/12

Reviewed by

Approved in monthly 05/11/12

SMT meeting

Amendment Record

Page No Context Revision Date

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1. Introduction

Strode Park Foundation was established in May 1946 and acquired its most significant
asset, Strode Park House, in 1947. It has an obligation to its members and beneficiaries
to maintain this valuable asset and account for all assets acquired over time, together
with their ongoing maintenance, security, depreciation and disposal and to reflect this
appropriately in its records.

2. Purpose and Scope

This policy is intended to ensure that the Foundation properly records and safeguards all
its assets acquired over time whether by purchase or by donation.

The Foundation must be able to demonstrate that all assets purchased are properly
authorised for purchase, that all assets are accurately recorded in an asset register, that
all assets of reducing value are appropriately depreciated so as to reflect their diminution
in value and that all asset which are subsequently disposed of are properly written out of
the charitys records.

3. Duties

Whilst this will be the responsibility of the Trustees and Senior Management to sanction
the purchase of relevant assets for use by the Foundation, it will be the role of the
Finance Department under the direction of the Finance Director to process and
accurately record all such purchases and subsequent depreciation and disposals.

4. Target Audience

The Foundation must be able to demonstrate that it keeps accurate records to its
members and beneficiaries and to satisfy the legal requirements laid down by
Companies House and the Charities Commission.

5. Policy Specific Information

All goods acquired with a value in excess of 500 will be capitalised and recorded in the
Fixed Asset Register.

All assets will be ordered and approved for purchase in accordance with the Purchase
Order Procedure.

Supplier invoices will be processed and approved for payment in accordance with the
Purchase Order Procedure and the Authorisation for Payment Procedure.

A Copy invoice will be placed on The Fixed Assets Files and filed according to the year
of purchase and the category of asset.

Every asset once acquired will be identified by a member of the Finance Department and
have a unique bar-coded ID sticker fixed to it. This will provide a unique cross-reference
link to the Fixed Asset Register.

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Every asset will be depreciated where it is deemed to have a finite useful life. Typically
Computer Equipment will be depreciated over 3 years, Furniture and Household
Equipment over 4 years and Property Refurbishment and Outbuildings over 10-20 years.

Depreciation is the method by which the cost of the asset is spread over the estimated
useful life of the asset. Depreciation will commence in the month of purchase and be
allocated across the useful life of the asset on a monthly basis. Depreciation will be
spread equally across the assets life for all assets other than vehicles where
depreciation will be calculated on a reducing balance basis at the rate of 25% per annum
of the Written-Down Value.

Land and Building are not depreciated as they are deemed to increase in value over time
rather than decrease.

If an asset is disposed of either by way of sale or breakage an appropriate Disposal Form

must be raised by the disposing departments manager (which may always fall to the
Facilities Department to do) and a copy sent to the Finance Department for processing.
Based on this form, the Finance Department will ensure that the appropriate entries are
made in the Fixed Asset Register and the accounting system.

All assets of the charity are maintained to a good working standard. All care equipment is
regularly checked in accordance with CQC and Health & Safety requirements and
vehicles annually inspected and serviced. All buildings are protected by fire and burglar
alarms.

All assets are insured against damage and/or theft by appropriate insurance policies as
advised by our insurance brokers.

6. Document Control including archiving arrangements

All records relating to the acquisition or disposal of the charitys assets will be kept for 7
years.

7. Monitoring Compliance

This procedure caters for the monthly identification and recording of all new and
disposed of assets.

The production of monthly management accounts further ensures that these new assets
are incorporated with the existing asset register and that the correct monthly depreciation
is charged.

This is reviewed again at the end of the financial year when more detailed reconciliations
are produced.

The External Auditors are empowered to carry out any audit tests that they think
appropriate to satisfy themselves that proper accounting records are being maintained.

The Trustees of the Foundation are empowered to monitor this procedure at any monthly
inspection if they so choose and ultimately have responsibility for all the charitys
procedures and controls.

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8. Associated Documentation

None

9. Appendices

None

10. Review and revision arrangements

To be reviewed annually.

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