UAE Federal Government Implements Best Practices In Managing Fixed Assets

Younis Haji Al Khoori, Undersecretary of the Ministry of Finance, stressed the significance of the newly approved fixed assets management policy and procedures by the Cabinet. He highlighted their role in ensuring optimal use of federal government assets to deliver superior services and in documenting and standardising management and control policies for fixed assets.

The primary objectives of the policy are to document and standardise procedures related to asset management within the federal government. This includes establishing a comprehensive framework for internal control over assets, covering aspects such as asset insurance, inventory, disposal, and maintenance.

The fixed asset management policy for the federal government now includes specific provisions concerning the acquisition of vacant land or buildings. It also establishes the Union Property Purchase Committee, guidelines for selling Union Real Estate Properties, and procedures for reclaiming federal government land and buildings by local governments.

Al Khoori added that the policy was developed in line with best practices, defining essential rules and principles for various functions throughout the asset lifecycle. The policy provides guidelines for effective asset management and outlines provisions necessary for overseeing the entire asset lifecycle.

As part of its comprehensive program to transition the federal government to an accrual basis of accounting, the asset standard is considered a fundamental component. To support this shift, the ministry has developed an operational framework for fixed asset management, which is vital for achieving strategic goals of efficiently utilising and managing government resources.

This framework ensures that both real estate and non-real estate assets are managed in line with best practices. As custodian of federal assets, the Ministry of Finance oversees, manages, and sets policies and procedures for these assets to align with governance and accountability objectives.

Real Estate Assets Registry Platform

The policy has adopted a real estate assets registry platform and established controls for using Union properties. It outlines rules that federal entities must follow to occupy any space within Union's real estate properties, as well as provisions for coordination, management, and disposal of these properties.

It is important to note that all transactions involving sale, purchase, or recovery require federal entities to update their real estate register on this platform. They must also attach supporting documents to ensure transparency and accuracy in records.

The policy describes procedures involved in managing assets, including processes for acquiring, selling, and depreciating both tangible and intangible assets. This comprehensive approach ensures all aspects of asset management are covered effectively.

This new policy aims to support efficient resource utilisation while maintaining high standards of governance. By adopting best practices in fixed asset management, it seeks to enhance service delivery across federal entities.

With inputs from WAM