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

Quick Links

Request Your Free Online Demonstration Today!

The best way to understand the benefits of Tragging Fixed Assets Software is to see it in action. We offer demonstrations for people who are interested in exploring our software further. It will take less than 30 minutes, enjoy!

The financial management policy requires NGOs to maintain a Fixed Assets Register and below is the process for it. The fixed assets register will be maintained on the software and should have the following details:

  1. a) Identification or serial number of the fixed asset
  2. b) Acquisition date of the fixed asset
  3. c) Description of fixed asset
  4. d) Location of the fixed asset
  5. e) Class of fixed asset
  6. f) Cost of acquisition of the fixed asset
  7. g) Accumulated depreciation of the fixed asset
  8. h) Net book value

The Finance/Accounts manager should make sure that all the fixed assets are embedded with RFID tags.  At the end of each month, the accountant should arrange a depreciation schedule for each of the fixed assets using depreciation rates. The Finance manager should assess the schedules and sign them as proof of the review.

 Accounting for Fixed Assets Addition

  1. a) The acquisition of fixed assets should be recorded per payment procedures.
  2. b) Upon delivery, the fixed asset should be categorized, tagged and recorded in the fixed assets inventory register.

Accounting for Disposal of Assets

  1. a) The board of the organization must accept disposal of fixed assets. No assets should be disposed of without the written authorization of the board.
  2. b) Upon the written consent by the board, the management should invite public bids for the purchase of the fixed asset.
  3. c) At receiving minimum of three bids, the board should examine the bids. Upon declaring winning bidder, the finance manager and accountant must arrange a record of the disposal and the bidder’s debt. The journal will comprise of an adjustment for the revaluation if any.
  4. d) If the disposal is in terms of a cash sale, the accountant should give away a general receipt.
  5. e) An auction may be conducted upon the board’s discretion. Cash received from the auction should be treated as above.

 

This is why it is rather crucial to integrate an RFID Fixed Assets Tracking Software in NGOs. Indeed, due to the work nature of NGOs where they have to go from one place to another for specific purposes and events, it intends them to carry along some of the fixed assets with them all around. Tragging’s Fixed Assets Tracking software will assist you determine where those fixed assets and who possess them at the moment, and which fixed assets have been returned back. A compelling feature in our Fixed Asset Tracking Software is that you can assign fixed assets for specific employees without others as well as consigning those fixed assets.

Fixed assets tracking and managing pros of Non Profit Organizations are:

  • Manage physical and IT fixed Assets: track what fixed assets, where the fixed assets are, and who has the fixed assets
  • Keep accurate fixed assets records with the required fixed asset information: description, manufacturer’s serial number, ownership, date of acquiring and the cost, status of the fixed asset, disposition data of the fixed assets
  • Report to date fixed asset inventory by location
  • Tracking funding sources of fixed assets
  • Support inventory audit best practices to easily meet the regular physical inventory needs
  • Provide fixed assets inventory and reconciliation reports
  • Provide reports upon any loss, damage or theft of fixed assets
  • Provide maintenance records on fixed assets
  • Support fixed assets disposal and project close out requirements
  • Support fixed asset record requests from insurance providers
  • Ability to calculate depreciation accurately across multiple fixed asset categories
  • Computerized Maintenance Management System for the control of planned and reactive maintenance.

 

Examples of Non Profit Organizations that are using Fixed Asset Tracking Software:

  • Recipients of Head Start grant programs
  • Charter Schools and Public Schools
  • Research Institutions
  • Humanitarian Services

Request Your Free Online Demonstration Today!

The best way to understand the benefits of Tragging Fixed Assets Software is to see it in action. We offer demonstrations for people who are interested in exploring our software further. It will take less than 30 minutes, enjoy!

Want the best for your business?