Procedure for Asset Control
All permanent and movable assets obtained by purchase, donation, or grant financing must be listed in the NGO’s extensive asset register. A description, serial number (if relevant), acquisition date, cost, funding source, and location must all be included with every asset entry. To make monitoring and accountability easier, the finance or administration officer is responsible for making sure that all recently purchased assets are promptly documented and assigned a unique identification tag.
An audit team or designated staff member must perform periodic physical verification of assets at least once a year. Confirming the existence, state, and appropriate usage of each asset is the aim of the verification, which also aims to find any differences between the asset registry and the actual assets. Any deviations discovered during the inspection have to be noted, looked into, and reported to management for remedial action.
Any write-offs, disposals, or transfers of assets must be approved in writing by senior management and accompanied by the necessary paperwork, such as updated asset register data and justifications for the action. Assets that are lost, damaged, or stolen must be reported right away, and an internal investigation must be started to identify the reason and stop it from happening again. This process guarantees that the NGO upholds accountability, protects resources, and conforms with legal and donor criteria.
Author: Mohamed Yasin
