i. Annual capital expenditure budgets
They should be prepared by someone directly responsible to the board. if acceptable,
they should be agreed by the board and minutes.
ii. Applications for authority to incur capital expenditure
These should be submitted to the board for approval and shOuld contain reasons for the
expenditure and estimated cost. A document should show what is to be acquired, and be
signed as authorized by the board or an authorized official.
iii. Disposal of fixed assets
Disposal should be authorised by a responsible official such as the Finance manager or
deputy. This will depend on the size of the organisation.
iv. Register of fixed assets
A register ofs fixed assets should be maintained for each major group of assets. Groups
of assets could be under the following headings
• land and buildings
• Plant and machinery
• Fixture:,, and fittings
• Motor vehicles
v. Maintenance and insurance
Assets should be properly maintained and adequately insured.
vi. Depreciation rates
Depreciation rates should be authorised, and a written statement of policy produced
which details how you depreciate your assets.
Kavungya answered the question on May 14, 2019 at 13:02
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