Fixed assets management with IT enablement at the National Water Supply & Drainage Board

The National Water Supply & Drainage Board (NWSDB) has a Fixed Assets base of about 20,000 fixed assets items. The total value of fixed assets of the NWSDB is approximately Rs. 40 billion. It is very important that the fixed assets belonging to the NWSDB are properly managed. It is essential that the fixed assets register is developed and maintained in order to fulfil the requirements of the accounting policy of the organization. The fixed assets consists of property, plant and equipment. Property includes land and any improvements done for them. Plant includes the origin of manufacturing process used to house the production equipment. Equipment includes the machinery and other items that are that are necessary for the operation of the business. The fixed assets register is a very important document for every organization. The information such as asset identification number (asset id), asset description, date of acquisition, depreciation rate, location, present use etc. should be maintained in a database to fulfil the accounting policy of the organization. Revaluation of fixed assets is also a vital task to be undertaken. In order to satisfactorily perform asset management processes there are three parameters to be identified. They are current replacement cost, remaining useful life, and urgency of replacement. Annual asset replacement plans should be drawn using these parameters and budgetary allocations should be made available for timely replacement of the fixed assets This process will ensure organizational efficiency with respect to utilization of fixed assets. The writer of this paper expects to review the importance of applying assets management principles along with information technology strategies for improving organizational efficiency and effectiveness.