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Definition of an asset
To determine whether an item procured or received as Gift in Kind is an asset, stock, supply or piece of equipment, consult this diagram.
The below table defines the British Red Cross’ understanding of assets. Different partners may have different definitions (especially around the minimum value or useful life of an item), which will be stated in their own logistics or financial procedures.
| Stock | Office supplies | Equipment | Assets | |
|---|---|---|---|---|
| Definition | Consumable items tracked and stored until use/distribution | Temporary or disposable consumables, food or cleaning products for daily use in office or residence | <£1,000 Not powered by electricity No running costs Not defined as asset by donor | >£1,000 or > 3 years useful life or powered by electricity or incurs running cost or defined as asset by donor |
| Examples | Programme supplies for direct distribution Office supplies for distribution to beneficiaries, partners Vehicle spare parts, fuel | Stationary Office cleaning materials Food for office | Furniture Housing equipment Household items | Owned property Vehicles Comms equipment IT hardware Large household appliances |
| Reporting requirements | Stock report | None | Property register | Asset register |
| Storage location | Warehouse | In the office | In use or in storeroom* | In use or in storeroom* |
*The storeroom is typically a small room in the office where a small stock of office supplies is kept.
Available to download here.
In British Red Cross, asset management requirements are defined in the , together with any other specific requirements, whether they come from British Red Cross or from a donor (Section 6 in the standard GAD). Where it has been agreed that the partner will use their own asset management procedure, this requires prior approval and must be mentioned in the GAD.
One person from either logistics or finance must have operational responsibility for asset management, delegated from a country or programme manager.
In certain operations, assets may be managed at a programme or project level, but it is recommended that someone is allocated the task of centralising asset management (see above matrix for reference).
In large, multi-site operations, an asset manager should be hired to ensure compliant asset management. The task of asset management can be part of an existing role, such as logistics officer or finance officer, or exist as a standalone asset manager role.
Read the next section on Categories of assets here.