Equipment Control Measures

This document should be read in conjunction with Definitions.

A system of equipment control should include:

  • a suitably maintained equipment register and supporting records;
  • procedures for the provision of adequate quantities of suitable equipment to meet the established requirement;
  • a means of repairing equipment with the least possible delay;
  • clear operating instructions where applicable;
  • procedures to monitor the viability of equipment repair;
  • additional monitoring of those assets that are particularly portable and attractive eg. laptop computer, camera;
  • responsibility for the care and control of equipment delegated to an appropriate level as determined by BU Manager anddepartmental policy;
  • proper housing and or protection and clear identification;
  • the conduct of a stocktake at least once each year;
  • replacement action when required;
  • identification of excess equipment for disposal;
  • removal of all Department of Education and Training information and data from equipment upon disposal or transfer to an external agency. Computer equipment, in particular, must have hard drives cleaned to delete all software and data;
  • prohibition of, and identification of, illegal and/or unauthorised modifications to equipment that must not be performed;
  • investigation of discrepancies and misuse of business unit resources;
  • notification to the police and Department of Education and Training's Resource Replacement Scheme of items stolen, damaged or destroyed through criminal activities;
  • identification of assets by stamping, engraving, stencilling or other appropriate method;
  • the return of all assets in an officer's care prior to retirement, dismissal, resignation or transfer; and
  • ready identification of expenditure on assets in the accounting records, eg. noting the asset number on invoice prior to payment.

Controls are implemented to avoid following equipment management problems:

  • non-registration of equipment;
  • stockpiling of equipment (retaining replaced equipment unnecessarily);
  • unauthorised ordering of equipment;
  • excessive usage of equipment;
  • unauthorised use of equipment;
  • loss of equipment;
  • abuse of equipment;
  • unreported incidents;
  • suspicious stocktake adjustments;
  • illegal disposal of equipment;
  • lack of physical security;
  • poor attitude to equipment management;
  • loan practice; and
  • equipment register data accuracy and quality.

Equipment Register

Equipment registers:

  • Record all acquisitions, transfers, loans and disposals
  • Record details of authorisation for and method of disposal of each item

Equipment registers are maintained by:

  • Performing annual stocktake of all accountable equipment comparing items physically held with details contained in SAP Asset Register;
  • Recording and investigating items not accounted for in stocktake;
  • Annually reviewing for disposal worn out, obsolete, surplus or uneconomic equipment;
  • Validating equipment register data to ensure all appropriate data fields are accurate; and
  • Examining exception reports monthly to ensure the quality of the equipment register.

A software register is maintained separately and includes:

  • Host machine - for stand alone, workstation equipment number
  • Host machine - for network, network host equipment number
  • License number
  • Name of package
  • Maximum number of users
  • Name of Supplier
  • Date acquired
  • Cost
  • Upgrade details

Equipment on Loan

Equipment is issued on loan for:

  • preparation for teaching activities;
  • professional development of employees;
  • student assistance;
  • an approved risk management strategy for the security of equipment; or
  • charitable or community purposes.

Equipment cannot be loaned for any private purposes. This includes buses and other commercial, passenger or motor and marine vehicles. Please refer to Fleet Management.

Loaning equipment is not to diminish the ability of the business unit to provide services or manage equipment. Appropriate records and systems are to be maintained.

Equipment is loaned to charitable or community organisations. The loan should be for short periods and may be used on or away from official premises. The person or organisation borrowing the equipment is responsible for any expense incurred through loss or damage.

Responsible officers review long term loans and sight the equipment at least annually.

Equipment loan system records following information:

  • asset number;
  • description,serial number and brand of piece of equipment;
  • name of borrower, date of loan, period of loan, due date for return;
  • reason for loan;
  • signature of borrower;
  • date of actual return, and signature of officer receiving the returned equipment;
  • approval for the loan;

EQ11 Formis kept to record details of equipment and loan approval for individuals, external agencies, and charitable or community organisations as all loans require authorisation and an indemnity.

InternalEquipment Loan Register is used to approve and record loans to employees of Department of Education and Training.

Marking Equipment

Clearly and permanently, identify all accountable equipment (portable and attractive, and capital assets) with an asset number and business unit name. This will deface equipment making it less attractive to thieves and will assist in the identification of recovered equipment. Marking equipment also aids conduct of stocktakes.

Safe Handling of Equipment

Equipment operators are trained to observe the prescribed safety measures as detailed in the relevant operating instructions for all equipment held by the business unit.

When required, warning signs and labels of the prescribed size, type and colour are positioned in such a manner that they can be readily noticed. They are correctly maintained and not allowed to deteriorate to an unreadable condition.

Stocktakes

Stocktakes of all accountable equipment (portable and attractive items and capital assets) are carried out at least annually. Documentation verifying that these stocktakes have been conducted is held for audit purposes.

Business unit's Annual Stocktake commences during March each year with a due date by mid April (unless prior approval from AssetAccounting and Internal Audit is obtained).

Instructions are available on how to complete a stocktake.

Annual Useful Life Review

An annual review of the useful lives of capital assets is required by AASB 116 section 51, stating the “the residual value and the useful life of an asset shall be reviewed at least at the end of each annual reporting period”.

The 'Non Current Asset Polices for the Queensland Public Sector' states that "where larger numbers of assets are fully depreciated and are still in use, a review of the depreciation rate or annual review process may be warranted. Annual reviews of non-current physical assets should ensure that a situation will not arise where fully depreciated assets are still in use".

Capital assets are to be reviewed as part of the annual asset stocktake to ensure an appropriate useful life is recorded against an asset.

Changes required to the useful life of assets should be updated on the SAP system by the business unit.

Equipment Replacement Plan

Equipment requires periodic replacement. This is facilitated through an equipment replacement plan taking into account equipment’s:

  • estimated useful life
  • current condition
  • current expenditure on maintenance; and
  • Obsolescence.

A replacement plan:

  • looks forward over next five years
  • covers all items of capital assets and costly portable and attractive items (eg computers)
  • is updated every year, and
  • is consulted in the budget development process.

Retention of Records

Records are retained for certain periods after the date of the last entry or when completed.

5 Years after the Financial Year to Which the Record Relates:

  • Primary evidentiary records - e.g. EQ13 forms (Write-off).
  • Subsidiary ledgers - inventory cards, vouchers and payment documentation, accounts payable, accounts receivable and records relating to assets no longer held or liabilities that have been discharged. SAP holds electronic copies for many of these documents and therefore hard copies are no longer produced.

3 Years after the Financial Year to Which the Record Relates:

  • Supplementary or partial type accounting records - e.g. equipment stocktake reports.

Refer to Information Management (IM)for additional information on records retention. Retention of electronic SAP information is in accordance with SAP archiving guidelines.

Uncontrolled copy. Refer to the Department of Education and Training Policy and Procedure Register at http://ppr.det.qld.gov.auto ensure you have the most current version of this document. Page 1 of 4