Asset Management Policy, Procedureand Implementation Guide

The MFMA was introduced with the objective of secure sound and sustainable management of the fiscal and financial affairs of Municipalities and their entities.Consistent with the regulatory framework in which the Municipality operates, it is important that An Asset Management Policy should promote efficient and effective management, monitoring and control of assets and the objectives of having an Asset Management Policy are:

• To ensure accurate recording of asset information.
• To ensure the accurate recording of asset movements.
• To ensure compliance with Council’s Insurance Policy, Supply Chain Management Policy and Payment Procedure.
• To ensure the effective and efficient control, utilization, optimization of usage, safeguarding and management of RMLM’s assets.
• To ensure that all responsible parties are aware of their roles and responsibilities regarding the assets of the municipality.
• To prescribe the accounting treatment of assets acquired and used in accordance with the applicable accounting standards approved by National Treasury.
• To prescribe the Administrative guidelines and internal control procedures to be followed by persons in control of assets with regard to management(including safeguarding and maintenance)of those assets.
• To comply with current legislation.
• To emphasis a culture of accountability over fixed assets.
• To ensure that fixed assets are not written off and disposed of without proper authorization.
• To ensure that preventative measures are in place to eliminate theft, loss and misuse.
• To ensure accuracy of the depreciation charge.
• To ensure a formal set of procedures that can be implemented to ensure that fixed assets and financial policies are achieved and are in compliance with the MFMA.