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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.

StockOffice suppliesEquipmentAssets
DefinitionConsumable items
tracked and stored
until use/distribution
Temporary or disposable
consumables, food or
cleaning products for
daily use in office or
Not powered by
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
ExamplesProgramme supplies for
direct distribution
Office supplies for
distribution to
beneficiaries, partners
Vehicle spare parts, fuel
Office cleaning materials
Food for office
Housing equipment
Household items
Owned property
Comms equipment
IT hardware
Large household
Stock reportNoneProperty registerAsset register
WarehouseIn the officeIn use or in
In use or in

*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 GAD, 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 RACI 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.

Download the full section here.

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