BRIEFING ON ASSET

SIGHTING AND VERIFICATION EXERCISE FOR IIUM KUANTAN CAMPUS

IIUM KUANTAN CAMPUS – 17 FEBRUARY 2016 – WEDNESDAY – 8.30 AM

GENERAL INFORMATION &

UPDATE ON ASSET UPDATE ON ASSET

MANAGEMENT

1) CIRCULAR NO 3 YEAR 2015 – POLICY

OF IIUM ASSET MANAGEMENTOF IIUM ASSET MANAGEMENT

CIRCULAR NO 3 YEAR 2015 – ASSET MANAGEMENT

SUMMARY OF ASSET POLICYSUMMARY OF ASSET POLICY

SUMMARY OF ASSET POLICYTitle

POLICY 1 IIUMASSETMANAGEMENT

This policy is set forth the guidelines for the physical and reporting control of

university’s assets, including accountability over the assets, meeting financial

reporting needs, and generating asset management information.

POLICY 2 ROLES & RESPONSIBILITY IN IIUMASSETMANAGEMENT

Explain the major responsibilities each party has in connection with the Assets

Policy & Procedures as follows :

(a) The Finance Division

(b) The Executive Director of Finance Division

(c) The Officer In charge of Assets at Finance Division

(d) Purchasing/Accounts Payable

(e) All Department Heads

POLICY 3 ASSETACQUISITION

This policy is to :

(a) Ensure that each asset acquired conforms to the prescribed specifications;

(b) Determine the actual quality and quantity as ordered;

(c) Ensure asset received is in good condition and safe for use

POLICY 4 ASSET REGISTRATION

Registration of asset is for the purpose of:-

(a) Creation of a complete, precise and updated database;

(b) Facilitate identification and inspection;

(c) Assess the conditions of the asset;

(d) Facilitate maintenance, disposal and asset replacement.

SUMMARY OF ASSET POLICY (cont`d)Title

POLICY 5 ASSET USAGE, STORAGEAND INSPECTION

All IIUM assets shall be used and handled with care and in most efficient manner in

order to efficiently, skilfully and organized for:-

(a) Minimize wastage;

(b) Save costs;

(c) Optimize asset life-cycle fully;

(d) Prevent misuse and mismanagement;

(e) Avoid losses.

POLICY 6 ASSETMAINTENANCE

The purpose of Asset Maintenance is to:-

(a) Ensure asset continues to function smoothly and safe to use;

(b) Preserve and prolong life;

(c) Increase capacity;

(d) Minimize damages;

(e) Save IIUM’s expenditures;

(f) Guarantee user’s safety;

(g) Create conducive and productive work environment; and

(h) Preserve IIUM’s image.

POLICY 7 ASSET DISPOSAL

The purpose of disposal of IIUM asset are:-

(a) To ensure K/C/D/I/O do not retain asset which is unusable or not required;

(b) Save office space/ storage space;

(c) Gain the best revenue; and

(d) Enable asset owned by K/C/D/I/O be transferred to other KC/D/I/O for specific

reasons.

SUMMARY OF ASSET POLICY (cont`d)Title

POLICY 8 ASSET LOSSESANDWRITE-OFF

Write-off of IIUM asset is for the purpose of:-

a) Control losses borne by IIUM due to lost asset;

b) Reconcile asset’s record;

c) Increase awareness and responsibility towards the importance of IIUM asset

safety; and

d) Enable surcharge and discipline actions be charged due to officers’

negligence.

SCHEDULE 1 REGISTRATION FLOW CHART OF IIUM ASSET

SCHEDULE 2 REGISTRATION WORK PROCESS OF IIUM ASSET

SCHEDULE 3 FLOW CHART OF IIUM ASSET DISPOSALSCHEDULE 3 FLOW CHART OF IIUM ASSET DISPOSAL

SCHEDULE 4 IIUM ASSET DISPOSAL WORK PROCESS

SCHEDULE 5 FLOW CHART OF ASSET’S WRITE-OFF

SCHEDULE 6 PROCESS OF IIUM ASSET WRITE-OFF

IIUM.AM-1 IIUM ASSET ACCEPTANCE REPORT FORM

IIUM.AM-3 INVENTORY REGISTER

IIUM.AM-4 LIST OF REGISTERED ASSET

IIUM.AM-5 LIST OF REGISTERED INVENTORY

IIUM.AM-6 ASSET MOVEMENT REGISTER

IIUM.AM-7 ASSET LIST

IIUM.AM-8 ANNUAL REPORT OF ASSET AND INVENTORY

IIUM.AM-9 ASSET DAMAGES/COMPLAINT FORM

IIUM.AM-10 ASSET CHECKING REPORT

IIUM.AM-11 INVENTORY CHECKING REPORT

SUMMARY OF ASSET POLICY (cont`d)Title

IIUM.AM-12 ANNUAL INSPECTION OF ASSET AND INVENTORY

CERTIFICATE

IIUM.AM-13 LIST OF IIUM ASSETS REQUIRING MAINTENANCE

IIUM.AM-14 ASSET MAINTENANCE REGISTER

IIUM.AM-15 INSPECTION BOARD MEMBERS APPOINTMENT LETTER

IIUM.AM-16 DISPOSAL CERTIFICATE OF IIUM ASSET

IIUM.AM-17 IIUM ASSET INSPECTION BOARD REPORT

IIUM.AM-18 CERTIFICATE OF IIUM ASSET DESTRUCTION WITNESS

IIUM.AM-19 CERTIFICATE OF DISPOSED ASSET OF IIUM

IIUM.AM-20 IIUM ASSET ANNUAL DISPOSAL REPORTIIUM.AM-20 IIUM ASSET ANNUAL DISPOSAL REPORT

IIUM.AM-21 STATEMENT OF IIUM ASSET DISPOSAL TENDER OFFER

IIUM.AM-22 IIUM ASSET DISPOSAL TENDER FORM

IIUM.AM-23 DISPOSAL TENDER OF IIUM ASSET SCHEDULE

IIUM.AM-24 OFFER STATEMENT OF IIUM ASSET DISPOSAL QUOTATION

IIUM.AM-25 DISPOSAL OF IIUM ASSET QUOTATION FORM

IIUM.AM-26 QUOTATION SCHEDULE OF IIUM ASSET DISPOSAL

IIUM.AM-27 IIUM ASSET AUCTION SALE STATEMENT

IIUM.AM-27

(A)

LIST OF AUCTIONED ASSETS

IIUM.AM-28 PRELIMINARY REPORT OF IIUM ASSET LOSS

IIUM.AM-29 APPOINTMENT OF INVESTIGATION COMMITTEE OF IIUM

ASSET LOSS

IIUM.AM-30 FINAL REPORT OF IIUM ASSET LOSS

The effective date for the

IMPLEMENTATION

DATE

The effective date for the

implementation of the above

policy is on 1st November 2015.

2) CIRCULAR NO 1 YEAR 2016 – REVISION

OF IIUM ASSET AND INVENTORY OF IIUM ASSET AND INVENTORY

RECOGNITION THRESHOLD

REVISED

THRESHOLD

Items Revised ThresholdItems Revised Threshold

Inventory RM500.00 – RM4,999.99 per item

Asset RM5,000.00 and above per item

The effective date for the

IMPLEMENTATION

DATE

The effective date for the

implementation of the above

circular is on 1st February 2016.

3) ESTABLISHMENT OF ASSET 3) ESTABLISHMENT OF ASSET

MANAGEMENT COMMITTEE (AMC)

ASSET MANAGEMENT COMMITTEE (AMC)

ASSET MANAGEMENT COMMITTEE (AMC) IN IIUM

1. The Asset Management memberships are as follows:-

Chairman : Rector

Secretary : Executive Director, Finance Division

Member :

1. Director, Development Division1. Director, Development Division

2. Campus Director, Kuantan Campus

3. Dean, CFS

4. Director, OSHBE

5. Director, Internal Audit

6. Director, ITD

7. Other appropriate officers

No. Name Position KCDIO

1. Prof. Dato’ Sri Dr. Zaleha binti

Kamaruddin

Rector (Chairman) Office of the Rector

2. Dato’ Hj. Ahmad Zailan Shaari Executive Director (Secretary) Finance Division

3. Prof. Dato’ Dr. Tariq Abdul Razak Campus Director (Member) Kuantan Campus

ASSET MANAGEMENT COMMITTEE

4. Assoc. Prof. Dr. Shamsul Jamili Yeop Dean (Member) Centre For Foundation

Studies

5. Dato’ Ir. Shaffei Mohamad Director (Member) Occupational Safety, Health

& Built Environment

6. Asst. Prof. Dr. Rustam Khairi bin Zahari Director (Member) Development Division

7. Madam Naaimah binti Mat @ Ahmad

Radzi

Director (Member) Office of Internal Audit

8. Dato’ Hj. Wan Mohd. Hilmi bin Wan

Kamal

Executive Director (Member) Development and Planning

ASSET MANAGEMENT COMMITTEE (AMC)2. AMC meeting agenda are as follows:-

(i) Current Asset Position in IIUM;

(ii) Report on Asset Inspection;

(iii) Disposal Action Report;

(iv) Surcharge/Discipline Action Report; and

(v) Problems related to mobile asset management.

3. The job scopes of AMC are to plan, monitor, supervise and observe all aspect of

IIUM mobile asset management.IIUM mobile asset management.

4. AMC shall be held at least twice a year and the result of the meeting shall be

reported to Jawatankuasa Pengurusan Kewangan dan Akaun(JPKA),

Kementerian Kewangan.

ENFORCEMENT

This regulation shall be implemented by all K/C/D/I/O effective from the date this

policy is approved by Board of Governance (BOG). All Officers shall ensure every

K/C/D/I/O under its control managing IIUM mobile asset in accordance to the

procedure prescribed in this policy unless there are other instructions issued by the

Finance Division.

The establishment and

appointment of IIUM AMC

members is on 22nd January

2016.

4) REPORT ON

ASSET SIGHTING EXERCISE

AT GOMBAK CAMPUSAT GOMBAK CAMPUS

2015

ASSET SIGHTING EXERCISE

(EXTERNAL AUDITOR)

The exercise was executed from 22nd

June 2015 until 2nd July 2015. Below is June 2015 until 2 July 2015. Below is

the report on Asset Sighting and

Verification Exercises:-

FINDINGS ON ASSET SIGHTING

Audit Finding Recommendation Action Taken

1) Several assets were

found :

i. Broken (41 items)

ii. Fire Case (21 items)

iii. Obsolete (7 items)

iv. Stolen (1 item)

v. Audit Case (8 items)

Proposed to be disposed. Already wrote to K/C/D/I/O

for their consent to dispose

the respective assets.

Proposal for disposal to be

prepared.

2) There are few

untraceable assets which

To track back and get

clarification the untraceable

Already checked with

insurance underwriter but untraceable assets which

have been identified. (22

items)

clarification the untraceable

assets from respective

K/C/D/I/O.

insurance underwriter but

no claim have been made.

Ask for the explanation to

clarify the untraceable asset

from K/C/D/I/O.

3) Does not exist (3 items) Ask for clarification from

the person in charge.

Already contacted the

person in charged and all

the asset have been found.

4) Should be reclassified to

expenses (5 items)

To reclassify to the expenses

account.

Will be updated in IFIS.

5) Wrong details and asset

been upgrade (2 items)

To update the description

and details of asset in IFIS.

Will be updated in IFIS.

SUGGESTION FOR IMPROVEMENT INDENTIFIED

DURING THE ASSET SIGHTING EXERCISE.Description Recommendation Management Comment

1) ASSET TAGGING

Majority of the assets are not properly

tagged

We suggest for IIUM to improve the assets

monitoring and keeping track of the asset

locations.

The asset tagging will be printed and tagged

accordingly to the assets.

As a preventive measure, physical inspection

will be performed by Asset Unit of Finance

Division to ensure the printed asset tagging is

properly tagged by the asset liaison officers.

2) KEY PERSONNEL

The safeguarding of the assets is not

guaranteed and proper keeping area should

be provided for expensive assets.

We suggest that a committee to be formed

such as asset committee at kulliyyah level to

strengthen the monitoring process.

The University has appointed Asset Liaison

Officers at K/C/D/I/O to assist in asset

management.

In order to enhance understanding and

coordination among Asset Liaison Officers,

training and awareness programs will be

conducted on quarterly basis.conducted on quarterly basis.

In term of enhancing safeguarding of assets,

the University is looking into the possibility of

installing additional CCTVs at strategic

locations.

3) SIGHTING FOR ASSETS

DOCUMENTS

There is no document kept by the respective

department if the Purchase order and

payment are issued by other agencies such

as Development Division and Research

Management Centre.

We suggest a copy of documents such as

purchase order, invoice and payment

voucher are kept at kulliyyah and finance

department for easier reference. This is

necessary to facilitate the Asset Liaison

Officer to verify assets at kulliyyah and

department.

The Finance Division will communicate in

writing to Development Division and Research

Management Centre on the requirement to

provide a copy of the documents to the

respective kulliyyahs and departments.

4) RESEARCH ITEMS

Some of the research items are on one-off

basis.

We suggest that IIUM may want to consider

for leasing or renting the equipment for cost

saving.

To Finance Division will communicate with

the RMC on the options of procurement.

5) ASSET

TAGGING EXECISE AT

GOMBAK CAMPUS GOMBAK CAMPUS

2015

ASSET TAGGING

�The exercise had started on 11th November

2015.

�Completion date for this exercise was on 30th

January 2016.

ASSET TAGGING (cont`d)

- Starting from October 2015, for Gombak Campus,

we started print out the Asset Tagging

immediately after the PV had been approve.

Therefore, this exercise should be extended to

Kuantan Campus.

- Please tagged the Asset immediately after

receiving the Asset Tagging.

INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

(IIUM)

BRIEFING ON ASSET SIGHTING AND

VERIFICATION EXERCISE AT

INTERNATIONAL ISLAMIC UNIVERSITY

MALAYSIA (IIUM) KUANTAN CAMPUS

DEFINITION OF ASSET

• Assets are economic resources. Anything

tangible or intangible that is capable of

being owned or controlled to produce

value and that is held to have positivevalue and that is held to have positive

economic value is considered an asset

DEFINITION OF FIXED ASSET

Asset must posses the following major

characteristics:

– Acquired for use in normal business operations and not for resalenot for resale

– It is long term in nature

– Have useful lives extending beyond a year and are intended to be used on a continuing basis

– Minimum cost of RM5,000 per individual item

FIXED ASSET CATEGORIES

(Examples)

Fixed Asset

Category (Major)

Fixed Asset

Category (Minor)

Examples of Fixed

Asset Costs

Office Furniture • desks,tables,chairs,

filing cabinets

• original invoice price

(RM5,000 and above)

• freight and installation

charges

• parts and labor • parts and labor

associated with the

construction of furniture

Computer • Printers

• Servers

• original invoice price

(RM5,000 and above)

• installation charges

Motor Vehicle • Motorcar

• Motorcycle

• original invoice price

(RM5,000 and above)

• freight charges

WHY THE ASSET SIGHTING AND VERIFICATION MUST BE

DONE ?DONE ?

AUDIT FINDINGS

ON ASSET SIGHTING

Audit Findings Recommendations

(External Auditor)

Comments

(IIUM Management)

1) Asset sighting done

for 3 Kulliyyah

during the year.

-To inspect routinely on

‘high risk’ fixed assets in

order to confirm

existence, condition and

The management will

appoint asset liaison

officer at K/C/D/I/O to

facilitate the Assetexistence, condition and

valuation (i.e: equipment

at IMSC, Kuantan)

- To maintain adequate

physical security over

fixed assets to deter

theft, damage, loss or

improper use.

facilitate the Asset

Management Unit to

monitor and inspect the

valuable asset from time

to time.

BACKGROUND OF ASSET SIGHTING AND VERIFICATION AT

INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

IIUM

BACKGROUND

OF ASSET SIGHTING

� The University’s financial policy requires each

operating department to maintain an effective

asset and inventory process. The management of

asset should be appropriate and guided byasset should be appropriate and guided by

government asset procedures and best practices

of the industry.

PROCURING OF ASSET

� Over the years, the University has been

procuring substantial value and quantity of

assets. As of 30th September 2015, the total

reported net book value of asset for IIUM is RMreported net book value of asset for IIUM is RM

2.47 billion which includes buildings,

machineries, equipment, software and hardware,

vehicles, furniture & fittings, etc.

ASSET LISTING SUMMARY

AS OF 30th SEPTEMBER 2015

NO ASSET NBV(RM) %

1. Land 22,812,498.00 0.92%

2. Building 2,300,615,088.37 93.16%

3. Building Renovation 9,465,423.47 0.38%

4. Office Furniture 4,997,484.04 0.20%

5. Office Equipment 23,621,693.45 0.96%

6. Server 7,084,891.86 0.29%

7. Software 9,764,917.33 0.40%

8. Books 3,507,505.13 0.14%

9. Medical Equipment 38,829,676.39 1.57%

10.Engineering Tools &

Equipment11,007,044.41 0.45%

11. Scientific Equipment 28,065,055.69 1.14%

12. Other Fixed Asset 9,732,651.23 0.39%

TOTAL 2,469,503,929.37 100%

GOOD GOVERNANCE

ASSET MANAGEMENT

( KRA 2015 )– In view of the significant reported value of the assets, it is

high time for the University to perform mass physical asset

sighting in order to verify the existence of assets againstsighting in order to verify the existence of assets against

the reported value in the bookkeeping. In addition, the

asset management has been identified as one of the

initiatives under the Key Result Area of Good Governance

for year 2015. The above asset sighting exercise is divided

into several phases and the first phase of the exercise was

conducted at Gombak Campus and extended to other

campuses in due course.

ACCOUNTABILITY INDEX

AUDIT BY AUDITOR GENERAL

– Asset Sighting and Verification exercise conducted at

Kuantan Campus which is an extension of the Asset

Sighting exercise at Gombak Campus last year. TheSighting exercise at Gombak Campus last year. The

University will also involve in Accountability Index Audit

to be conducted by the Auditor General Office which will

commence from March 2016 in which all 20 Public

Universities will be involved which is under the Ministry

of Education’s KPI.

LIMITED SOURCES OF

MANPOWER

In view of complexity of the effort and

shortage of personnel, it is proposed for

the asset sighting and verificationthe asset sighting and verification

exercise to be assisted by appointed

part time workers.

SCOPE OF WORK (PART TIMER)

The summary of scope of works for theabove exercise is as follows:

• Reconciliation of physical existence of asset andlocation against the bookkeeping and highlightingany discrepancies arising from such comparison.any discrepancies arising from such comparison.

• To tag the sighted assets with special stickersprovided and remark any report on asset sightingexercise which includes information such as assetutilization, asset movement, asset disposal, assettransfer, asset functionality, untagged assets and

any related findings.

ROLES OF ASSET LIAISON OFFICERS

• To be present on the day of asset sightingexercise is conducted.

• To accompany the Asset Sighting Team toasset locations at the respective KCDIO.

• To provide information to the part timers andAsset Management Unit pertaining to assetAsset Management Unit pertaining to assetutilization and any matters related.

• To ensure the each asset is labeled properlyby the Asset Sighting Team with sticker andofficially stamped after completion of assetsighting exercise for individual assets.

SCHEDULE FOR ASSET SIGHTING EXERCISE

DATE DAYS TAKEN

NO K/C/D/I/O

TOTAL

ASSET FROM TO

(WORKING

DAY)

1 IIUM TEACHING HOSPITAL 6 18/02/2016 19/02/2016

2 ICRACU 59 18/02/2016 19/02/2016

2

3 KULLIYYAH OF NURSING 83 18/02/2016 19/02/2016

4

INSTITUTE OF OCEANOGRAPHY AND

MARITIME STUDIES (INOCEM) 94 18/02/2016 19/02/2016

5

OFFICE OF THE CAMPUS DIRECTOR

(KUANTAN) 166 22/02/2016 22/02/2016 1

6 KULLIYYAH OF PHARMACY 474 23/02/2016 24/02/2016 2

7

KULLIYYAH OF ALLIED HEALTH

SCIENCES 618 25/02/2016 29/02/2016 3

8 KULLIYYAH OF DENTISTRY 711 01/03/2016 03/03/2016 3

9 KULLIYYAH OF SCIENCE 927 04/03/2016 10/03/2016 5

10 KULLIYYAH OF MEDICINE 1281 11/03/2016 18/03/2016 6

Total Assets 4419 22

FLOW CHART FOR ASSET SIGHTING EXERCISE

Gantt Chart for IIUM’s Kuantan Campus Asset

Sighting and Verification Schedule

Q & A SESSIONQ & A SESSION

ASSET MANAGEMENT UNIT

FINANCE DIVISION

NAME DESIGNATION EXTENSION NO

MOHAMAD NASIR KAMA

DEPUTY

FINANCE

DIRECTOR

5193

MOHAMAD ZAIDY DARAPAR ACCOUNTANT 5198

(019 3721452)(019 3721452)

MUHAMMAD BIN ROSLI ASST.

ACCOUNTANT

3199

(017 543 6679)

NOOR MUNIRAH ABD LATIF ACCOUNTING

ASST.

3874

(013 7871476)

ZAILY AZIZI ZULKIFLI ACCOUNTING

ASST.

(019 2034949)