government assets guideline - mof.go.tz assets guideline.pdf · for the purpose of this guideline...

Government Assets Guideline

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Table of ContentsPREFACE............................................................................................iiABBREVIATIONS...............................................................................iiiDEFINITIONS.....................................................................................iv1. INTRODUCTION...........................................................................12. OBJECTIVEOFTHEASSETSGUIDELINE.................................13. STATUTORyFRAmEwORk........................................................24. ACCOUNTINGSTANDARDS.......................................................25. ROLES..........................................................................................3

5.1.RolesofthePermanentSecretaryTreasuryand PaymasterGeneral.................................................................35.2.RolesofAccountingOfficer.....................................................35.3.RolesofAccountantGeneral..................................................45.4RolesofDirectorofGovernmentAssets managementDivision.............................................................45.5.RolesofHeadofProcurementmanagementUnit..................55.6.RolesofDirectorofAdministrationandHuman Resourcesmanagement........................................................65.7.RolesofHead/In-chargeofDivision/UnitorSection..............65.8.RolesofInternalAuditorGeneral...........................................7

6. FORmATOFASSETREGISTER.................................................77. CLASSIFICATIONOFASSETS....................................................98. SOURCESOFFUNDFORASSETS..........................................109. PLANNINGOFPROCURABLEASSETS...................................1110.ACQUISITIONOFASSETS.........................................................1111.mAINTENANCEOFASSETS.....................................................1212.VALUATIONOFASSETS...........................................................1213.DEPRECIATIONOFASSETS....................................................1314.TRANSFEROFASSETS............................................................1415.VERIFICATIONOFASSETS......................................................1416.REPLACEmENTOFASSETS....................................................1417.ImPAIRmENT.............................................................................1518.wRITE-OFFOFASSETLOSSES..............................................1519.DISPOSAL..................................................................................1520.SAFETyANDSECURITyOFASSETS......................................1621.INSURANCE...............................................................................1622.UPDATINGTHEGUIDELINE......................................................1723.EFFECTIVEDATE......................................................................17


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PREFACE

TheGovernmentAssetsGuidelineisaresultofextensiveconsultationsand deliberationsmade frompublic institutions.The implementationof this Guideline foresees the best opportunity in bringing aboutaccountabilityandresponsibility.

ThisguidelineopensanewchapterinmanagingGovernmentassetsinamoreorganizedandsustainablemanner. It further replaces theoldandfragmentedassetsmanagementsystemswhichhadbeeninpracticebyindividualGovernmentinstitutions.

TheguidelinewillformbasisfortheformulationofrelevantpoliciesandlegislationsinordertosystematicallysupportGovernmentdevelopmentprograms. In that regard, this guideline replaces all circulars anddirectives that were previously issued in relate to management ofGovernmentassets.

Theministry of Finance wishes to acknowledge contributions of allpartieswhomadethisworkpossible.

Ramadhanim.khijjah,Paymaster General10th December, 2012Dar-es-Salaam,Tanzania


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ABBREVIATIONS

AOAccountingofficerCAG ControllerandAuditorGeneralDAHRm DirectorofAdministrationandHumanResources managementDGAm DirectorforGovernmentAssetsmanagementGAAP GenerallyAcceptedAccountingPracticeGAmD GovernmentAssetsmanagementDivisionGAVP GenerallyAcceptedValuationPrinciplesIAG InternalAuditorGeneralIAS InternationalAccountingStandardsIASB InternationalAccountingStandardsBoardIPSAS InternationalPublicSectorAccountingStandardsIVSC InternationalValuationStandardsCommittee,2007LGALocalGovernmentAuthoritymDA ministries,DepartmentsandAgenciesPFA PublicFinanceAct,2001PmG PaymasterGeneralPmU ProcurementmanagementUnitPPA PublicProcurementAct,2011PPE Property,PlantandEquipmentRE RevisedEdition


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DEFINITIONS

An Asset mean any resource controlled by the Government, fromwhichtheGovernmentexpectstoderiveeconomicbenefitsoruseforservicedeliverytothegeneralpublicoveraperiodextendingbeyondone financial year. For the purpose of thisGuideline an asset shallmeannon-currentassetswhichare furniture,equipments,plantandmachinery,buildingsaswellasmotorvehicles.Howeverthedefinitionshallbeappliedtootherassetscategorieswhendeemedfit.

Assets Register isarecordofinformationoneachassetthatsupportstheeffectivefinancialand technicalmanagementof theassets,andmeetsstatutoryrequirements.

Asset Valuation isasystematicprocessofascertainingthemonetaryworthwithconsiderationofeconomic,Governmentinterestsandmarketforcesarisingoutofthephysicalbeingofanassetataparticularpointintime.

Acquisition dateisthedateonwhichtheassetwasacquiredforthefirsttime.

Accountant General is the officer under the Permanent SecretaryTreasurywhoisappointedinaccordancewithPublicFinanceActNo.6of2001section7(1).

Accounting OfficerisanyofficerappointedbythePaymasterGeneralandchargedwiththedutyofaccountingforserviceinrespectofwhichmoneyhavebeenappropriatedbytheNationalAssemblyoranyperson


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towhomissuesaremadefromtheconsolidatedfund.Carrying amountistheamountatwhichanassetisrecognizedafterdeductinganyaccumulateddepreciationandaccumulatedimpairmentlosses.

Costistheequivalentamountofmoneyrequiredtocreateortoproducethegoodorrenderservice

Default in-service date- it shows thedefaultplaced in-servicedateusedbyallbooksonwhichtheassetappears.Theplacedin-servicedatethatisonthebooksisusedforposting.

DepreciationisthesystematicallocationofthedepreciableamountofanassetoveritsusefullifetotheincomestatementOR isthemeasureofwearingout,consumptionorotherlossesofvaluewhetherarisingfromuse,abuse,lapseoftimeorobsolescencethroughtechnologyormarketchanges.

Depreciable amount of an asset is the cost of the asset less theresidualvalueoftheasset.

Director of Government Assets Management Divisionistheofficerappointedby thePermanentSecretaryTreasuryand thepaymasterGeneral,chargedwiththedutyofmanagingGovernmentAssets.

Fair value –istheamountofwhichanassetcouldbeexchangedora liabilitysettled,betweenknowledgeable,willingparties inanarm’slengthtransaction.


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Heritage Assets –aredefinedasassetswithcultural,environmentalorhistoricalsignificanceinaccordancewithwrittenlawsoftheland.

Insuranceisacontractbywhichtheinsurerreceivesmoney(premium)forapromisetoindemnifytheinsuredfordamagesorlossesthatmayoccurduetounforeseeableeventsspecifiedintheInsurancePolicy.

Insurable value refers to the value of an asset at which they areconsidered to be insured; usually subjected to provisions of relatedpolicies.

Impairment refers to the loss in future economic benefit or servicepotential of an asset besides the traditional loss of value throughdepreciation.

Market is the environment in which goods and services are tradedbetweenbuyersandsellers.

Market Value is thepriceatwhichan interest in theassetmightbereasonably expected to be sold on the date of valuation betweenawilling seller and buyer both having reasonable time to negotiatewhereinbothpartieshadeachactedwithfullknowledge,prudentlyandwithoutundueinfluence.

Original in-service date is the date asset was originally placed inservice.

Paymaster General is the officer referred to in Section 6(7) of thePublicFinanceAct2001andvestedwiththepowertocontroltheissueofpublicmoneytoAccountingOfficers.


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Price is a term used for the amount asked, offered or paid for aparticulargoodorservice

Property, Plant and Equipment (PPE) aretangibleassets,extricablecombinedwithothersorrunningsinglytoassisttheoperationsofanentity, in service delivery, for rental to others, or for administrativepurposes,andexpectedtobeusedformorethanonefinancialyear.

Residual value istheestimatedamountthattheGovernmentwouldcurrentlyobtainfromthedisposaloftheasset,afterdeductingthecostofdisposal,iftheassetswereintheageandconditionexpectedattheendofitsusefullife.

Replacement Value refers to the cost of acquiring an asset atcurrent prices having utility equivalent to asset under considerationbutofmaterials,standardsanddesignaccordingtoprevalentmarkettechnology.

Revalued amount refers to the fairvalueofanassetat thedateofa revaluation less any subsequent accumulated depreciation andsubsequentaccumulatedimpairmentlosses.

Special Committee means the committee formed by the DirectorofGovernmentAssetsmanagement Division to evaluate suggestedchanges in thisGuideline,beforebeingapprovedby thePaymasterGeneral.

Straight line depreciationreferstoamethodofprovidingdepreciationbywhichassetsarewrittenoffinequalannualamounts.


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Useful life referstotheexpectedperiodoftimeoverwhichanassetistobeeconomicallyusedORtheestimatedtotalservice,expressedintermsofproductionunitsthatisexpectedtobeeconomicallyobtainedfromtheassetwhenemployedinthebusinessofanentity.

Value isaneconomicconceptreferringtothepricemostlikelytobeconcludedbythebuyersandsellersofagoodorservice.


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VISION, MISSION AND ASSETS GUIDELINE STATEMENT

The Vision of the Ministry of Finance:Tobeacentreofexcellenceinmanagingmacro-economyandfinancialsystemsforenhancingeconomicgrowth.

.The Mission of the Ministry of Finance:To promote economic growth andmacro-economic stability throughprudenteconomicandfinancialpolicies.

Assets Guideline statement:TomanageGovernmentassetsthroughmonitoringthewaytheyareacquiredup todisposal inamanner thatmaximize thevalueof theassets.


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1. INTRODUCTION

The ministry of Finance through Government Assets managementDivision and Accountant General’s Department has prepared andsubmittedGovernmentAssetsGuidelinewhichistheoverallframeworkgoverningthemanagementofassets.

TheGuidelineaimsatensuringthatassetsownedbytheGovernmentare systematically administered through documented managementsystemsinordertocontrolandsafeguardtheiruseinanefficientandeffectivemanner.

The Guideline provides the basis for acquisition, allocation,maintenance, disposal, accounting and other activities relating toGovernmentassets.

ThroughtheGuideline, theGovernmentshallbeable tomonitor theasset management systems basing on sufficient information whichwill enable preparation of periodical reports and annual financialstatements in accordance with acceptable International PublicAccountingStandards.2. OBJECTIVE OF THE ASSETS GUIDELINE

Assetsmanagementisoneoftheareasthatformanyyearshavebeengivenlessattention.Significantassetslossesoccurredduetofailureofmaintainingapropersystemformanagingtheassets.

The general objective of thisAssetsGuideline is to set sustainableassetmanagementsystemsaimedatensuringthegovernmentmeetsitsservicedeliveryobjectiveefficientlyandeffectively.


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Specificobjectivesare:i. Toprescribetoallresponsibleparties,rolesandresponsibilities

regardingthemanagementofGovernmentassets.ii. To provide guidelines of safeguarding the assets of the

Government and to ensure proficient use of the existingresources.

iii. To set effective controls through clear and comprehensivewrittendocumentation.

iv. To issue instructionsonproper recordingand reportingofallessentialassetsinformation

3. STATUTORy FRAMEwORk

ThestatutoryframeworkforthisGuidelineis:i. TheConstitutionoftheUnitedRepublicofTanzaniaii. ThePublicFinanceActNo.6of2001.iii. ThePublicProcurementAct,2011.iv. LocalGovernmentFinanceAct,1982v. StandingOrders,2009vi. AndanyotherrelevantLegislations

4. ACCOUNTING STANDARDS

Thisdocument constitutesaGuideline statementandshall not takeprecedenceoverthestandardsspecifiedbytheInternationalAccountingStandardsBoard.Therelevantaccountingstandardsinclude:

i. IPSAS1–Presentationoffinancialstatements.ii. IPSAS2–Cashflowstatementiii. IPSAS 3 – Accounting policies, changing in accounting

estimatesanderrors.iv. IPSAS17–Property,PlantandEquipment


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v. IPSAS21–Impairmentofnon-cash-generatedassetsvi. IPSAS22–Disclosureofinformationandfinancialstatementvii.Andanyotherstandardwhichmightberelevantforthepurpose

ofGovernmentassets.

5. ROLES

Apart from responsibilities assigned to different position or division/units in the government, they also have the roles to play to ensuregovernmentassetsarewellmanaged.Thefollowingdescribedifferentplayersandtheroleinmanagementofassets;

5.1. Roles of the Paymaster Generali. To ensure that any Accounting Officer or any entity that

managesassetoftheGovernmentprovideassetsinformationasconsiderednecessary..

ii. To assign any officer to inspect assets in all GovernmentofficesforthepurposeofcompliancetoprovisionsofthePublicFinanceAct2001.

iii. To authorize transfer between mDA’s/LGA’s and all cross-bordertransfersofGovernmentassets.

5.2. Roles of Accounting Officeri. To ensure adherence on assets procurement and disposal

procedures as stipulated in Public FinanceAct 2001, PublicProcurementAct,2004andotherapplicablelegislations.

ii. To be the principal custodian of all assets under respectivemDA/LGA.

iii. Toensurethatbothmanualandelectronicregisterareinplacetoenableeconomicalandtransparentuseofassets.

iv. Toensureproperinternalcontrolsystemsforsafeguardingandmaintenancemechanismofassetsareinplace.


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v. To ensure that assets under his/her control are properlyaccountedforinaccordancewithapplicablestandards.

vi. ToupdatetheassetregisterinaparticularGovernmententityvii. To ensure thatAssets register is submitted along with PPE

reportforcertificationofthelaterbyDGAmforfinalaccounts.viii.To ensure assets obsolescence, losses, transfers and any

changes of status occurring to assets are reported to thePaymasterGeneralforfurtheraction.

ix. ToauthorizetransfersofassetswithinthemDA/LGAx. ToprepareanannualreplacementplanofAssets.xi. ToensurethattheAssetsGuidelineisadheredto.

5.3. Roles of Accountant General

i. To ensure that all mDAs/LGAs comply with the disclosurerequirements of non-current assets as prescribed byInternationalAccountingStandardsBoard.

ii. Toensure that theassetmanagementmodule is operationalandproperlymaintained.

iii. ToconsolidatethePPEreportsfrommDAsandLGAsaspartoffinalaccountsreports.

iv. Tocollectandaccountforproceedsfromthedisposalofassets.

5.4. Roles of Director of Government Assets Management Division

i. To advise PmG on formulation and review of guideline andvariousdirectivesforeffectivemanagementofassets.

ii. Tomaintainthecentralizedassetsregister.iii. To authorize updating of asset register based on periodic

verificationofassetstoensurecompliancetotheregulations,guidelines and procedures.


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iv. ToconductphysicalverificationofassetsformDA’sandLGA’s.v. TodeterminetheidentificationsystemofGovernmentassets.vi. To ensure the classification structure related to assets is

maintainedinaccordancewithInternationalStandards.vii. To ensure assets are disposed-off in accordance with the

policies,regulationsandprocedures.viii.TocompileassetlossesfrommDAstobewritten-offbyNational

Assembly.ix. Certification of verified assets for mDA’s and LGA’s before

updatingintotheregister.x. Certification of assets statements formDA’s and LGA’s final

statementxi. Toensureproper valuationofGovernmentassets isdone in

accordancewithInternationalstandardxii. ToadvisePmGontransferofGovernmentassets.xiii.ToupdateAssetsGuidelineasandwhentheneedarisexiv.To facilitateandcoordinatemDAandLGA trainingonassets

managementxv. Tomanagedisposalofassetsbyauction.

5.5. Roles of Head of Procurement Management Unit

i. To ensure that assets acquisition adheres with the PublicProcurementActof2004.

ii. ToupdateAssetsregisterinaparticularGovernmententityiii. Toensurethatprocuredassetsareingoodorderandcondition

asperuserspecifications.iv. Tomanageallprocurementanddisposalofassetsasstipulated

byPublicFinanceAct,2001,PublicProcurementAct,2004andotherapplicablelegislations.

v. Toensurethatallassetsacquiredarebar-coded.


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5.6. Roles of Director of Administration and Human Resources Management

i. ToensurethatallGovernmentloanedassetsunderemployee’spossessionarehandedoveruponterminationofservice.

ii. ToensurethatrelevantassetclearanceformisapprovedbytherelevantHeadofDivision/Unittofacilitatepaymentofterminalbenefitsoftheemployee.

iii. Toensure thateveryasset clearance form is counter signedby the Asset management Division before processing theterminationofService.

5.7. Roles of Head/In-charge of Division/Unit or Section

i. Toensurethatemployeesunderthedivision/unitsarefamiliarandadhere to theapprovedAssetmanagementPoliciesandProcedures

ii. Toensure thatassetsareproperlymaintained inaccordancewiththerespectiveassetsGuideline.

iii. Toensurethatassetsofthedepartmentarenotusedforprivategain.

iv. Tobeaccountableandresponsible forallassetsallocated torespectiveDepartment/Unit.

v. ToensurethatAccountingOfficerisnotifiedofanychangesinthestatusoftheassetsunderUnit/Department.

vi. ToensurethatinternalassettransferissubjecttoapprovalbytheAccountingOfficerandnotificationtoGAmD.

vii. Toensurethatallobsoleteassetsarereportedtothe Accounting

Officer as and when they arise and shall later reported to PMG.

viii.To perform initial investigation of any loss of assets and toreportthesameinwritingtoAccountingOfficer.


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ix. Toensurethatalllossesoccurredarereportedandappropriateactionaretaken.

5.8. Roles of Internal Auditor General

i. To developmechanisms for undertaking internal controls onassets,monitorandevaluatetheirimplementation.

ii. To review and appraise compliance with laid down Laws,Regulations,Standards,SystemsandProceduresinmDAsandLGAsinorder toensurecontrol,valueformoneyandproperaccountabilityofgovernmentassets.

iii. To conduct special and technical audits onassets to assesscompliance on procedures, rules, regulations and bestpractices.

6. FORMAT OF ASSET REGISTER

The asset register shall bemaintained in the format determined bythe Paymaster General and shall comply with the requirements ofGenerallyAcceptedAccountingPractice.

Theassetregistershallreflectatleastthefollowinginformation:1) Uniqueitemidentificationnumber(barcode)oftheasset2) Acquisitiondate3) Defaultin-servicedate4) Originalin-servicedate5) Descriptionoftheasset6) Usefullifeoftheasset7) Site(location)8) Disposaldate9) Quantity


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10)Category11)Status12)Type13)Custody14)Vote/Sub-Votenumberandname15)Accountingreferencecode16)Estimatedresidualvalueoftheasset17)Originalcostoftheasset18)Revaluedamountoftheasset.19)Revaluationdate20)Thepersonwhoperformedthelastrevaluation21)Thepersonwhoperformedthelastphysicalverification22)Depreciationfortheyearchargedagainstthecostoftheasset23)Accumulateddepreciationtodatefortheasset24)Impairmentlossesrecognizedduringtheyearontheasset25)Accumulated impairment losses recognized to date for the

asset26)Depreciationmethodandtheratetobeused27)Carryingvalueoftheasset28)Thedateassetisretiredfromuse29)Transfer,disposalandwriteoffdetails30)Fundingsourceoftheasset31)Currentinsurancearrangements32)whether the asset is encumbered and the nature of

encumbrance.

6.1 Maintenance of Asset Register1. AccountingOfficer shall promptly provideGovernmentAsset

management Division in writing any information required tocompiletheassetregister,andshallpromptlyadvisetheAsset


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managementDivisioninwritingofanymaterialchangewhichmayoccurinrespectofsuchinformation.

2. An asset shall remain in the asset register for as long asit physically exists. The fact that an asset has been fullydepreciated shall not in itself be a reason for removing theassetfromtheassetregisteruntilitisdisposedoff.

3. IfanassethasbeenfullydepreciatedbutisstillbeingusedbytheGovernment, it indicatesthattheasset’sestimatedusefullifehasbeenunderestimated.ThereforetheGovernmentwillhave to account for a change in estimate using the asset’sadjustedestimatedusefullife.

4. The asset register must provide information to account forlossesofassetsaccordingtoPublicFinanceRegulations2001.

7. CLASSIFICATION OF ASSETS

For the purposeof thisGuideline assets shall be classified into thefollowingcategories:

Assets

CapitalAssets

FurnitureandFixtures

OfficeEquipment

Plantandmachinery

motorVehicleCycles

RecurentAssets


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The head of Division/Units shall, in writing, provide the PaymasterGeneralwith informationorassistance required tocompileaproperclassificationofassets.

Capitalization thresholdAnAsset is classified either as capital or recurrent on the date ofacquisition.Thisclassificationwillbebasedon thevalue (costpriceoftheasset).IfanassethasacostofTsh.100,000/-andaboveisclassifiedasacapitalassetandhencereported.However if itscostislessthanTsh.100,000/-,itwillbeclassifiedasrecurrentassetandthereforeexpensedinaparticularfinancialyear.

Capitalassetwillnormallybeacquiredfromthecapitalbudgetwhiletherecurrentbudgetisusedforacquisitionofrecurrentassets(willbeexpensedintheyearofacquisition).

Capitalassetwillberecordedatcostoratrevaluedpriceintheassetregister.

Heritage assetsForthepurposeofthisGuidelineheritageassetswillbeclassifiedaspercategoriesstipulatedinthisguideline.

8. SOURCES OF FUND FOR ASSETS

The acquisition of assets may originate from different sources asfollows:

Externalsources;• Loans• Grants• Donations


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Internalsources;• GovernmentFunds• InternalLoans• Donations/Contributions

9. PLANNING OF PROCURABLE ASSETS

All assets to be procured for a particular financial year shall be inaccordancewiththeannualprocurementplan.Anyotherarrangementshalldemandapprovalfromtherelevantauthority.

10. ACqUISITION OF ASSETS

Assets may be acquired through purchase, transfers, confiscation,heritance, donations and any othermethod considered appropriate.The process to be followed when assets are acquired through,purchaseinaccordancewithPublicProcurementAct,2004,transfersinaccordancewithPublicFinanceActandLocalGovernmentFinanceAct, 1982, confiscation, heritance, donations and any othermethodconsideredappropriateshallbeinaccordancewithanyotherrelatedlegislationsforacquisitionofassetsapplicableintheUnitedRepublicofTanzania.

Registration of Acquired Assets

Allprocuredassetsshallberecordedintheassetregisterattheirinitialcostontheoriginalin-servicedate.

Inthecaseofnonprocuredassets,theyshallbevaluedandrecordedonacquisitionorduringsubsequentvaluation,whichever is thebestoption.


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11. MAINTENANCE OF ASSETS

General maintenance of assets

Every head of Department / Unit shall be directly responsible forensuring that all assets under respective custody are properlymaintainedandinamannerwhichwillensurethatsuchassetsattaintheirusefuloperatinglives.

Maintenance Plan

The objective of this plan is to ensure that assets remains suitablefor their intended use and service delivery requirements and areeconomically utilized to ensure maximum long term benefit to theorganization.

Dependingon thenatureofassetseveryheadofDepartment /Unitshall ensure that a maintenance plan of assets is prepared andsubmitted to theAccountingOfficer onannual basis.Every headofUnit/DepartmentshallreportinwritingtotheAccountingOfficeronthestatusofmaintenanceplan complianceon the sixthmonthof everyfiscalyear.

12. VALUATION OF ASSETS

AssetsshallbevaluedaccordingtotheInternationalStandardsinordertoascertainvalues,establishphysicalcondition, location,quantities,marketvalueandreplacementcostsoastoformbasesofessentialrecordsintheassetregister.

Major Repair or Overhaul of an AssetForthecaseofmajorrepairoroverhaulofanassetrevaluationshallbeconductedtoascertainanewvalueandusefullifeofaparticularasset.


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13. DEPRECIATION OF ASSETS

Thedepreciableamountofanassetshallbeallocatedonasystematicbasisoveritsestimatedusefullife.TheprevailingInternationalStandardfordepreciationshallbeappliedovertheuseful lifeoftheassets.InaccordancewiththeGenerallyAcceptableValuationPrinciples(GAVP),depreciation forvaluationpurposesshallbe theadjustmentmadetothe replacementcost to reflectphysicaldeterioration, functionalandeconomicobsolescence.

Estimated Useful Life(EUL)

Assetsrananeconomiclifepeculiartothemselvesdependingonmake,constanthandlingandoperationaluse.SomeassetsarecontinuedinusemuchbeyondtheEULduetoperiodicalmaintenanceandrepairs.Assetsexpectedlifeareprojectedinrangesasfollows:

S/no. Category Estimatedusefullife1 motorvehicles/cycles 5years

2 Plantandmachinery 10years3 FurnitureandFixtures 5years4 OfficeEquipments 5years

Assets will be subject to annual reviews during which remainingeconomic life of an asset will be determined. Consideration will begiventotheappropriatenessoftheassetsvalueitsassetlifeandanyotherfactoraffectingitsusefulness.Significantdiscrepancieswillleadtoadjustmentoftheassetlifeorassetvalue.

For thepurposeof thisGuidelineheritageassetsmayvary invalueovertimeandtheyarenotsubjectedtonormaldepreciation.


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14. TRANSFER OF ASSETS

whenassetsare transferred,adocumentwithspecificauthorizationshallbeissuedtovalidatethetransfer.AnyexternaltransfershallbeauthorizedbyPmGwhereasanyinternaltransfershallbeauthorizedbyAccountingOfficer/headofDivision.The authorization document should also include the followinginformation;

i. Assetdescriptionii. Costoftheassetiii. Dateofacquisitioniv. Uniqueassetnumberv. Effectivedateoftransfervi. Currentowner/locationvii.Newowner/locationviii.Reasonfortransferix. SignaturebyIssuingOfficersx. SignatureofReceivingOfficersxi. SignatureofAuthorizingOfficer

15. VERIFICATION OF ASSETS

Physical verification of assets shall be undertaken once in everyfinancial year or whenever there is significant requirement inascertainingquantities,value,physicalexistence,statusandwhetherinuseornot.Thecollectedinformationwillfacilitatethereconciliationbetweenphysicalexistenceandfactsrecordedintheassetsregister.

16. REPLACEMENT OF ASSETS

TheAccountingOfficershallquantifyandspecifyNonCurrentassetstobe replacedonannualbasis inaccordancewith theageanalysis


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replacementscheduleinordertoremoveassetswhichhavebecomeuneconomictomaintainsoastoachievepredeterminedobjectives.

Replacementplanshallbepreparedannuallyinordertobeincludedintheprocurementplanoftheprocuringentity.HeadsofUnits/Divisionshallberesponsibletopreparetheplanandsubmittotheirprocurementmanagementunittobeincludedintheprocurementplan.

Basisofpreparationof thereplacementplanwillbethemostrecentverificationreport.

17. IMPAIRMENT

Asset impairmentwillbedeterminedsimultaneouslywithverificationexercises.Thefollowingmaybeindicatorsthatanassetisimpaired:

• Damaged.• Obsolescence,idleness,malfunctioningetc

18. wRITE-OFF OF ASSET LOSSES

write-offofassetlossesshallbeconductedinaccordancewithPublicFinanceRegulations2001(RE2004).

The reasons for writing off assets shall include accident, fire, theft/fraud,willfuldestructionof theassetoranysuch reasonasmaybeapprovedbythePaymasterGeneral.Afterthewrite-off,assetregistershallbeupdatedaccordingly.

19. DISPOSAL

Disposal is an important stage of the assetmanagement life cycle.Therefore,itisrequiredtobesupportedbydisposalplanwhichshall


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contain theestimatedcostofdisposal,estimatedproceeds (reserveprice) fromdisposalandmethodofdisposal.Reasons fordisposingsuchassetsmustbegiven.

Procedures for asset disposal shall be in accordance with PublicProcurementRegulationsandPublicFinanceRegulationswhen theneed arises. For the case of assets held in Tanzanian Embassies,disposalmethods shall be in accordancewith the laws, regulationsandproceduresoftherespectivecountries.

Disposal of hazardous assets shall be done in accordance withenvironmentalconservationfactors.

Afterdisposal,theassetregistershallbeupdatedaccordingly.

20. SAFETy AND SECURITy OF ASSETS

EveryheadofUnit/Divisionshallbedirectlyresponsibleforthephysicalsafety and security of any asset controlled or usedby the entity. InexercisingthisresponsibilityeveryheadofUnit/DivisionshalladheretoanywrittenguidelineissuedbythePaymasterGeneralwithregardtosafetyandsecurityofassets.

21. INSURANCE

with respect to type, nature, value and risks involved, governmentassets may be insured through reputable insurance company. Theapplicablegovernment insurancepolicyshallbeapplied.AccountingOfficersshallbudgetforfundtocaterforinsurancepremiumintheeventofaccidentsand related liabilities.GovernmentAssetsmanagementDivisionshall issueclear instructionsonsafeuseandupkeepoftheAssets.


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22. UPDATING THE GUIDELINE

TheGovernmentAssetmanagementDivisionshallreviewprovisionsof this Guideline and shall notify all Accounting Officers throughGovernmentgazettetosubmitsuggestedchangestothisGuidelineinaprescribedformatasandwhendeemedrequired.

Therewill be Special Committeewhichwill evaluate the suggestedchanges to be included in the Guideline before submission to thePaymasterGeneralforapproval.

23. EFFECTIVE DATE

ThisguidelineshallbeeffectivefromthedatesignedbythePaymasterGeneral.

THE UNITED REPUBLIC OF TANZANIA

ASSET TRANSFER FORM

GENERAL INFORMATION:

AssetDescription:________________________________________

UniqueAssetNo.:_______________DateofTransfer:___________

DateofAcquisition:_____________CostofAsset:______________

CURRENT OwNER:

NameofInstitution:_______________________________________

Station:________________________________________________

ReasonforTransfer:______________________________________

_______________________________________________________

NameofIssuingOfficer:_______________Position:_____________

Signature:_____________________Date:____________________

NEw OwNER:

NameofInstitution:_______________________________________

Station:________________________________________________

NameofReceivingOfficer:_____________Position: ____________

Signature:_____________________Date:____________________

AUTHORIZATION:

NameofAuthorizingOfficer:____________Position: ____________

Signature:_____________________Date:____________________

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