AFS PACK TRAINING IMMOVABLE ASSET GUIDE Presenter: OAG | March 2015
Discussion overview • Principles • Changes made and impact 2
Principles • Basis – Section 239 (Act 200 of 1993) • Function and sphere • Mandate and GIAMA custodians 3
Principles (cont.) • DRDLR – custodian of land in country • DPW – custodian of facilities and underlying land • Provincial – custodian appointed by Premier 4
Principle (cont.) o Land and building reflected separately o Can be reflected by different departments o Reflect structure where land not owned o Custodians receive S42 transfer on final completion budget holder must accumulate WIP over contract period budget holder must include asset in AR when ready for use update AR with additional costs i.e. retention all contractual obligations fulfilled final costing of project transfer cost through AR to custodian o Custodians update only on S42 receipt o Impact – budget holder audited on spend and accumulation of cost in AR. Accountability. Asset transferred to custodian at verifiable cost 5
Principle (cont.) • Distinction between ‘Asset Register’ and ‘Register’ o Asset Register – vested, title, Item 28(1) issued, endorsement awaited (schools), specific legislation, capital budget spend o Financial disclosure o Register – function existing, deemed custodian, S42, state land used without title o Additional information narrative format o Register – Deeds reflect as ‘state land’ – no custodial claim o No register – land not yet surveyed 6
Changes made - Impact • Changes: defined – ‘ready for use’, – ‘final completion’, – deemed custodian - more detail • Impact – more clarity 7
Thank you
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