2.15 | Asset Management and Maintenance Policy

2.15.1 | Purpose

This Asset Management and Maintenance Policy was created as a standard to determine how to manage or treat fixed assets in Sampoerna University and it is aligned with to Policy on Acquisition and Depreciation of Fixed Assets. The authority for disposing of surplus property is vested in the President of Sampoerna University who has delegated this authority to the Vice-Rector of Administrative, Resources, and Operation (VRARO). No property may be disposed of without the written authorization of the VRARO.

2.15.2 | Definition

1. Asset Inventory
   Means Asset recording (data collection) based on classification, description, type, purchase date, location, and user status.
2. Asset maintenance periodically
   Means activity to ensure that every asset purchased by the department within the University can continue to function optimally as desired by the departments.
3. Monitoring and Controlling (Asset Reconciliation)
   Means the monitoring and controlling of asset usage and mutation of assets should be conducted properly, to avoid and minimize misuse, violation, and unplanned asset relocation, either during the implementation or services, which will be cause damage or asset loss.
4. Handover of assets
   Means handover of assets from Asset Administrator to User.
5. Asset Usage
   Means asset that is allowed to be lent to all employees, in order to support operational activities and official.
6. Asset Usage in Sampoerna University
   Means the university asset allowed to be used by unit, with the right procedures and rules, and the condition of asset will be monitored by Asset Administrator.
7. Asset damage
   Means the condition of the asset is no longer able to function normally caused by one thing or another so these assets should be repaired.
8. Asset Lost
   Means condition of asset lost that can occur due to the negligence of the user and Asset Administrator or events beyond the control of user and asset administrator.
9. Asset Disposal
   Means conditions where assets should be disposed caused not compatible with function, technology, and benefit.
10. Asset Write Off
    Means a write off amount of an asset value. A write off occurs upon the realization that an asset no longer can be converted into cash, can provide no further use to a business, or has no market value.

2.15.3 | Policy

This policy will discuss the classification of asset management, which consists of:

2.15.3.1  | Asset Inventory (Data Collection)

Asset Inventory (Data Collection) is an activity consists of two aspects as follows:

• Physical Inventory (data collection) consist of recording assets activity based on classification, description, type of asset, purchase date and location.
• Inventory based on Ownership is recording asset based on user status.

2.15.3.2  | Asset Maintenance periodically

1. Asset maintenance periodically is needed to ensure that every asset purchased by the Organization could function optimally as desired by the Organization. Every asset has a different maintenance procedure based on type and usage. To ensure long–term useful lifetime, the maintenance procedure and schedule must be planned properly from the beginning.
2. Asset Maintenance is the responsibility of the user and asset administrator. User is obliged to maintain and preserve the assets which transferred by the Organization to support their working process properly.
3. Assets Maintenance periodically will be conducted by an asset administrator in accordance with the existing technical criteria. Asset maintenance costs could be the responsibility of each user or asset administrator (according to the location of the asset)
4. Asset maintenance processes periodically conducted by asset administrator based on responsibilities in each area and predetermined schedule.

2.15.3.3 | Monitoring and Controlling (Asset Reconciliation)

Asset usage and mutation should be monitored and controlled properly, to avoid and minimize misuse, violation, and unplanned asset relocation, either during asset usage or transferred, which will be affected to asset damage or loss.

2.15.3.4 | Purchase and handover of assets from assets administrator to Users

Asset purchases through the procurement process and use each department budget will be handed over process from GA Department to related department following conditions:

1. Purchases related to IT Department will be handed over to the IT Department to do the process of codification and recording before the IT Department perform the handover process to the asset.
2. The handover process will be carried out directly by GA Department to the asset usage after codification and recording process for the procurement of assets that are not related to IT

2.15.3.5 | Asset Usage

(a) Pool Asset
Assets managed by pool asset Is an asset that is allowed to be lent to all employees, in order to support operational activities and official. Since the function and purpose of these assets are for shared, it is necessary to manage thoroughly.

(b) Asset Usage and/ or handover in Organization

Organization Asset allowed to be lent with the right procedures and rules and the condition of asset will be monitored by asset administrator.

(c) Asset Damage

Asset damage may occur due to several possible cause:

• Lifetime (Productive age of goods)
• impact of the high frequency usage, resulting to performance decrease.
• User Fault
• Mishandling or mismanagement

Several alternatives to follow up of Asset Damage:

• Repair/ Service which no needed spare part replacement.
• Repair/ Service which needs spare parts replacement.
• If repair is impossible, replacement must be performed, and data of assets should be written off.

Financing of asset repair:

• Damaged assets should be documented in Berita Acara (Chronology) to determine who will bear the repair cost.
• Chronology should be made by the informant
• if damage is due to user negligence, or inappropriate operations, so the reparation costs should be borne by the latest user. Latest user required to coordinate with the Department Head to determine whether charges will be borne by individual or Department related.
• if damage or deterioration occurs because of the lifetime, the reparation costs will be borne by the Department of asset administrator.

(d)    Asset Lost

Loss of asset may occur due to the following causes:

• User or asset administrator negligence in process of storing, monitoring and asset handover.
• Occurrence beyond the user and asset manager’s control (force majeure which means “greater forces”) is a circumstance beyond human control and cannot be avoided. Activity therefore cannot be implemented improperly. Include in force majeure category are war, riots, revolution, natural disasters, strikes, fires, and other disasters that must be declared by the official / authorized agency.

(e) Follow up for asset lost

• Latest user who responsible for the asset, should provide a minute of lost, consist of chronology.
• if multiple parties involved, it is necessary to proceed with investigation, which at the stage, each party will describe the sequence based on activities, experiences and facilitated by the asset administrator.
• Management will impose sanctions to the party or parties, who is involved in the asset losing based on company regulation.

Financing of Asset Replacement

• Asset replacement will be financed by the party or parties causing such lost asset in the amount determined by the management decision.
• Financing of replacement of asset is the responsibility of organization if such lost asset is attributable to the occurrence of Force Majeure
• Source financing shall be the responsibility of the Department or individual will be determined based on investigation result or hearing process and management decision.

(f)    Asset Disposal

Disposal of assets is permitted for the following reasons:

• Assets are not functioning properly
• Asset technology is being left behind, so required regeneration to support users’ professional performance.
• Maintenance costs are not comparable with the resulting benefits.
• Management decision on reduction in size of office area or other consideration that might impact on a reduction in assets quantity.

Organization can implement several procedures for the Disposal Assets:

• Obtain written approval from Asset administrator Department Head and VRARO on assets disposal list.
• Obtain information of book value and selling price from FA Department.
• Selling mechanism will be proposed by the asset manager to obtain approval form Asser administrator Department Head and VRARO.

2.15.3.6 | Purchase and handover of assets from assets administrator to Users

Asset which not functioning properly, broken, lost or Management decision which might impacted in asset reduction, must be coordinated with FA Department for write off. Working Process as follows:

1. To provide asset disposal proposal, attached with related supporting documents.
2. Obtain Approval from Asset administrator Department Head and CFO and proceed to Accounting for write off process.
3. Asset administration should be revise/ update data of asset related to asset disposed.