SOP HK Custody of Assets

  Custody of Assets 

Division : Rooms	Department : Housekeeping
Policy No : HK/ P&P/	Pages :	Issue Date :
Subject :Custody of Assets
Issued By : Dept. Head	Approved By : General Manager

Purpose

• To responsible and accountable for safeguarding of assets by the user concerned.
• To locate the physical existence of the assets.

Policy

• All assets purchased must be properly taken care of by the respective department. Any damages, breakdowns or non- existence of the assets must be reported and recorded.

Standards

• Replacement of assets will only be made after careful consideration of the state of the existing assets.
• Addition of assets will be done through the normal budgetary process when the management is satisfied that the capacities of the existing assets are inadequate.
•  Disposal of assets will be done after the assets are concerned are physically inspected and the management(i.e the GM and FC) is satisfied that they are beyond economic repairs/ usage.

Procedures :

1.     Safeguarding of Assets( Housekeeping Department)

• Department Manager / Housekeeping Asset Controller will prepare a list of existing assets and label and record each in the assets register. Upon receiving of any assets, the abovementioned  person will immediately label the asset when received.
• On a semi annual basis, an inventory will be made of all assets in the asset register to ensure that the assets were not lost. A discrepancy report will be signed by both the Department Head and the asset Controller and presented to Financial Controller and General Manager to review.
• In case of damage, replacement , loss or sale the Department Head must immediately complete the Asset Disposal Authorization Form( see exhibit 1 attached)  with adequate reasons and notify the Financial controller for his approval. Unless the original cost of the assets exceeds RM 5000.00 and the age is more than 2 years, the form will be forwarded to the Managing director for final decision.
• Assets transferred / purchased will become the responsibility of the receiving department. The Department Head must ensure that assets used by his department are easily identified and located. It is not the job of the Assets Controller to locate the whereabouts of the assets.
• Action to be taken by Financial Controller:
• Supervise the sale /transfer/ write off(disposal) of the asset.
• Forward the Assets Disposal Authorization Form to the Asset Controller to adjust the asset register according to the transaction that has taken place.
• The Asset Controller must ensure filing of all documents/ records relating to Asset Register are up to date at all times for future auditing.

2.     Addition of Assets

• Addition of new assets will be allowed after the Capital Expenditure Budget is approved by the Board of Directors. This budgetary exercise done once a year, normally two or three months before  the accountant year end.
• For the Capital Expenditure Budget, a capital expenditure proposal form (see exhibit 2 attached) is to be completed for the GM to approve.
• cAfter the GM has approved/ rejected the forms, the Financial Controller will draw up a summary of all assets approved. Thus will be compared with the pre- determined allowable total.
• If the allowable total has been exceeded, a second round of exercise will be carried out to reduce the amount. This will require all Department Heads to seriously consider which of theassets can be delayed for future years.

3.     Transfer of Assets

•  When a department wishes to receive an asset from another department on a willing basis, a   transfer of assets form(see exibit 3 attached) must be duly filled up and submit to GM approval. If   the GM is not available, then the RM or FC may approve such transfer
• b. The above points of 1.4 and 1.5 under Safeguarding of assets will be apllicable to transfer of assets  as well.

Source : Paradise Sandy Beach Resort Hotel