Every private school should maintain an asset register to manage its assets, improve financial reporting, and provide accurate reporting to shareholders. In the vast expanse of a school, it is easy to lose track of the location and utilisation of assets and importantly, track their value.
Having an asset accounting and modelling discipline in place:
- Provides an overview of assets and liabilities.
- Ensures compliance with reporting and audit requirements and audits.
- Promotes confidence with shareholders, stakeholders, sponsors, parents, and students.
What should an asset register contain?
- Each asset should have a unique identifier or code.
- A description of the asset. For example, type, make, model, and other relevant details.
- Date of acquisition.
- Purchase price.
- The amount of depreciation.
- Estimated current value.
- The exact location of the asset.
- Condition of the asset.
- Maintenance history.
- Disposal information, include sell price if any.
An overlooked factor is relevance. If an asset is used infrequently and taking up expensive space, would it be better to dispose of it and maybe rent as and when needed? An Asset Accounting professional is going to ask important questions.
Asset Accounting and Modelling is far more than updating an asset register but deals with revaluation AND re-evaluation.
Mubesko Africa is a consulting practice which offers financial accounting and management consulting solutions, asset accounting, and fraud investigation services to the private and public sectors. Mubesko’s key value lies in the natural convergence of these three disciplines, providing depth and width.