Asset Depreciation for Aboriginal NFPs

AssetManager Pro and Aboriginal Organisations

AssetManager Pro and Aboriginal Organistions (Not for Profits)

AssetManager Pro continues to the leading Asset Depreciation, Management and Tracking solution used by Not for Profit Aboriginal Organisations across a range of area's including:
  • Health Services
  • Community Services
  • Land Councils and Trusts
  • Employment
  • Cultural
  • State, Federal and Local Aboriginal Associations (inc NACCHO, VACCHO, KAMSC)

With over 100 Aboriginal Not for Profit Organisations who use AssetManager Pro and that growing every year we are proven for our ability to manage the financial and asset tracking aspects of those organisations.

Some our Aboriginal Organisation Clients

The following is just a short list of some of our clients who use AssetManager Pro to calculate depreciation and manage/track assets.

  • Bega Garnbirringu Health Services
  • Ngarluma Aboriginal Corporation
  • Groote Eylandt Aboriginal Trust Inc.
  • Griffith Aboriginal Medical Service
  • Pius X Aboriginal Corporation
  • Glen Innes Local Aboriginal Land Council
  • Durri Aboriginal Corporation Medical Service
  • Katungul Aboriginal Corporation
  • Tharawal Aboriginal Corporation
  • Broken Hill Aboriginal Family Violence Prevention
  • Victorian Aboriginal Community Services
  • Southern Aboriginal Corporation
  • Ngunytju Tjitji Pirni Aboriginal Corporation
  • Karalundi Aboriginal Education Centre
  • Nirrumbuk Aboriginal Corporation
  • Aboriginal Lands Trust
  • Deniliquin Local Aboriginal Land Council

The importance of Asset Management for Aboriginal Organisations

In line with the compliance obligations of the Corporations Act 2001 (Cth) and registered Corporation must:

"It is the responsibility of the Chief Finance Officer, assisted by the Finance Officer, to maintain an accurate and complete Asset Register. The Asset Register will record the purchase and disposal of all assets over the value of $500 or where deemed appropriate by the Chief Finance Officer, assets under the value of $500 may be recorded if this proves to be beneficial for asset security and tracking purposes."


Using AssetManager Pro to comply with the rules


Below you will find some details info on Asset Details, Periodic Reviews, Asset Disposals and Asset Transfers. AssetManager Pro provides support for ALL of these and you can find detailed info on those features and benefits on the AssetManager Pro Feature Page.


The information below is referenced from NACCHO, NACCHO is the national peak body representing over 150 Aboriginal Community Controlled Health Services (ACCHSs) across the country on Aboriginal health and wellbeing issues.


You can find this info on NACCHO's Template Finance Policy & Procedures Manual for an Aboriginal Community Controlled Health Organisation (ACCHO) here.



Keep track of Leased Assets


Assets may be purchased outright or leased/financed. Where the asset is purchased under a finance lease the asset is required to be recorded in the asset register as an asset of the corporation


Where the asset is acquired under an operating lease then the asset is not deemed to have been purchased and will therefore not be recorded on the asset register but will instead be recorded in an Operating Lease schedule.



What details should be kept?


Each asset shall be categorised and assigned a unique identifying asset number. The Asset Register shall include at a minimum the following detailed information for each asset:


· Unique Asset Number

· Detailed description of the Asset (including serial numbers)

· Date of acquisition

· Original cost of asset including delivery costs or installation costs
· Job code and project the asset was purchased for

· Project and funding source

· Location of the asset (e.g. Head office, Logan or Moreton office)

· Depreciation rate based on “estimated useful life”

· Depreciation charge for the year

· Accummulated depreciation

· Closing written down value

· Disposal/Sale date of asset

· Consideration / Proceeds received on disposal

· Profit / Loss calculated on disposal of the asset 


How often should the Asset List be Reviewed?


The Asset Register shall be reviewed at least annually for completeness and accuracy ensuring that any assets that have been lost or deemed obsolete are written off as required. This will include a process for an annual stocktake of assets with physical verification. All assets of the ACCHO must be reviewed annually for impairment testing in accordance with the Australian Accounting Standards and will be undertaken by the Chief Finance Officer.



Estimated Useful Life and Depreciation Rates


The depreciable amount of all fixed assets including buildings and capitalised lease assets are depreciated on a diminishing value basis over the asset’s useful life to the org commencing from the time the asset is held ready for use. Depreciation is charged to the Profit and Loss Statement.


The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. The asset classes carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the income statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.



Asset Disposals


Assets of the are only to be disposed of for the following reasons:-


1. Obsolete or damaged assets – where consideration is received, record profit or loss. Where no consideration received, the asset is to be written off recording loss on disposal.

2. Trade-in on purchase of replacement asset – record proft or loss on disposal.

3. Asset no longer required – record profit or loss on disposal.


It is the discretion of the Chief Executive Officer to determine whether an asset should be disposed of. Once the CEO has determined which assets are to be disposed of, the CEO must advise the Board of Directors and obtain authority/approval for the disposal.


The process for the disposal of any asset must be conducted at arms length with the objective to obtain a sale price at market value. The asset marked for disposal will be tendered for sale by advertisement in the local newspaper or selected tender by contacting specific companies that deal with these assets (e.g. motor vehicle dealership) seeking expressions of interest. Employees of the are also eligible to tender for the asset and shall receive no unfair advantage during the process. The asset will be sold to the highest bidder at the expiry of the closing date.


Any proceeds received from the disposal of an asset shall be re-invested and used within the program from which it was originally purchased.



Transfer of Assets


Where an asset has to be transferred, prior to the agreed transfer date, the ACCHO will obtain approval from the relevant funding agency from which the original capital funds were obtained. Once approval has been obtained, the written down value of the asset/s as at the proposed date of transfer shall be removed from the ACCHO’s fixed assets register and the balance sheet through the asset revaluation reserve.



Find out More


If you are an existing user of MYOB AssetManager Pro you can find out more about upgrading from your MYOB version here.


If you are looking to use AssetManager Pro for the first time, visit our website here. You can also download a Trial Edition from here


OR just contact us on +61 9016 9454 or email sales@graga.com.au. For full contact details please refer to our Contact Page.





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