RFID in NGOs
NGO is stands for Non-Governmental Organization that is non-profit and is completely independent from governmental organizations. They usually are funded by donations but some and are run by volunteers. NGOs are highly various groups of organizations occupied with a wide variety of activities, and take different structures in different places of the world. Some have charitable function, while others may be concerned with tax exemption based on recognition of social motives. Others may be interested in politics, religion etc.
Non Profit Organizations are obliged by the government, UN and USAID to manage the fixed assets. This is why integrating and maintaining effective fixed assets management software is extremely crucial. The purpose of conducting fixed assets inventory is to control the fixed assets that belong to the organization. The inventory makes it possible to identify variances between information about fixed assets in the records and the actual state of those fixed assets. Inventory is usually done once annually and is the responsibility of the finance department.
To perform its different tasks, NGO
needs fixed assets. The quality of these fixed assets depends on the delicacy upon how NGOs handle them. Fixed assets are for the most part durable goods, which need to be dealt with well in order to stay in a good condition. These fixed assets include stationary, tables, chairs, shelves, computers and related accessories. The fixed asset policy aims for:
- Precise identification of fixed assets
- Sensible use of fixed assets
- Periodic conduct of fixed assets inventory
- Effective maintenance of fixed assets
- Replenishment of fixed assets whenever required
- Disposal of fixed assets
Government regulations demands NGOs to track fixed asset’s cost, fixed asset’s depreciation, and the disposal of the fixed asset not to mention maintaining fixed asset records for insurance purposes. They must maintain an accurate record of fixed assets in case of loss of any item to guarantee adequate insurance coverage thus ensuring visibility and accountability.
In order to keep precise fixed asset records, when receiving a new fixed asset into the organization, the first step is to determine if the fixed asset should bear a tag. Any item that cost is more than $500 and has a life span greater than one year should be tagged.
Furthermore, when receiving a new fixed asset, you should fill out the following information: RFID code, cost of the fixed asset, Room Number (where the fixed asset is located), Fixed Asset Description, Model (the manufacturer’s name and model number) Serial number.
The inventory procedure is comprised of the following steps:
Creation of record cards on which is found:
- Type of fixed assets
- Description of fixed assets
- Service user or name of manager
- Assigned location of fixed assets
- Previous placement of the fixed asset
- Notes on the condition of the fixed asset
- Record updates
- Minutes of physical inventory
- Final removal of a fixed asset
- Replacement of a fixed asset
- List of annual needs