ASSET AND INVENTORY VERIFICATION AND DISPOSAL POLICY
1.0 POLICY STATEMENT
Monitoring the assets, tools and properties of Okomu Oil Palm Company (OOPC) in the custody of staff and other stakeholders to ensure and confirm their safekeeping and existence as well as disposal of scraped assets.
The policy applies to all assets, tools and property of OOPC.
3.1 ASSETS AND INVENTORY VERIFICATION:The confirmation of the existence, status and the location of assets, tools and properties of the company in the custody of staff and other stakeholders.
3.2 AUDITORS:company's internal auditors.
3.3 ITEMS:Assets, tools, and properties of the company.
3.4 CUSTODIAN:any staff or stakeholder in possession of assets, tools and properties of the company.
3.5 ASSET TRANSFER FORM:document designed to notify all concerned parties that an item(s) in the possession of one custodian is changing or is being changed to that of another custodian (See OOPC form ATF-IA002).
3.6 ANNUAL ASSETS VERIFICATION:Assets, tools and properties of the company will be verified annually by the Auditors, irrespective of the location (See OOPC form IS-IA001).
3.7 UNSCHEDULED EXERCISE:any area can be chosen by the Auditors to be visited for unscheduled or spot assets verification at anytime during the year.
3.8 DAMAGED ASSETS FORM:A document designed to notify all concerned parties that an item is missing, stolen
or broken and needs to be removed from the inventory by the custodian (See OOPC form DAF-IA003).
- Before an item is permitted to change custodianship, an assets transfer form is required to be completed by the custodian and a signed copy sent to the auditors.
- If an item is to be disposed off because it has been damaged, broken or stolen, a damage item form has to be completed and sent to the auditor and a copy sent, along with the item, to the scrap yard/dump site, in line with HSE Regulations. For non-durable items and utensils, the approval of the head of department and the Auditor is enough to discard the items in line the HSE regulations. For other items, the Artisans who confirm that it cannot be fixed will send it to the dumpsite or scrap yard in line with HSE provisions.
- The auditor is required to send notices to all custodians concerned and to schedule all activities pertaining to the annual verification. The auditors can choose any medium of communication in OOPC's GP10 (Internal and External Communication) to pass the notice on to the custodians. Notice is, however, not required for unscheduled exercises.
- For the annual assets verification, the auditors will visit the custodian, along with the previous year's signed inventory sheets, along with any amended asset transfer forms received during the year under review.
- All Items are required to be sighted and the status or condition of the item, confirmed.
- The Custodian will work with the Auditors to identify all items and to ascertain their present condition.
- All items are required to have Audit Identification numbers, these to be placed onto the asset solely by the auditors as per this policy. Audit Identification numbers are coded as: Location/User/Company/Type of Assets/Number.
- Auditors will adjust the inventory sheet accordingly if required and return same to the custodian in duplicate for their verification and signature.
- The Custodian will confirm, sign both copies, and return the duplicate to the auditors who will accordingly paste the original copy in an accessible and visible place in the applicable area where the asset is located.
- Scrapped Assets should be sold by bidding been conducted by Internal Audit, where the highest bidder obtains the item. If it is not for personal use by the buyer, the highest bidder must be a government authorized dealer on such scrap. The bid analysis should be consented to by the head of department generating the scrap (where applicable) and counter approve by the Managing Director. Auditor assigns the scrap to the highest bidder while the net weight of all scrap disposed will be filed with HSE department. Frequently generating scraps attracts periodic bidding exercise as will be considered fit.
- Price of scrap should be based on the weight and payment should be made at the cash office.
- Required documents to be filed by the internal auditors are the inventory sheets, assets transfer forms and damaged items form lodged at the internal audit office. Blank copies of these forms can be found on the ISO Folder on COMPANYS (OPCSTR1).
The Chief Internal Auditor shall control, manage and monitor this policy on behalf of OOPC.