ABU DHABI, 21st August, 2024 (WAM) — Younis Haji Al Khoori, Undersecretary of the Ministry of Finance, emphasised the importance of the newly approved fixed assets management policy and procedures by the Cabinet, highlighting their role in not only ensuring optimal use of federal government assets to deliver superior services, but also in documenting and standardising management and control policies for fixed assets.

Al Khoori added that the policy was developed in line with best practices, defining the essential rules and principles for various functions throughout the 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 of this transformation. To support this shift, the ministry has developed an operational framework for fixed asset management, which is vital for achieving the federal government’s 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 the custodian of federal assets, the Ministry of Finance is tasked with overseeing, managing, and setting policies and procedures for these assets, thereby ensuring they align with the overall objectives of governance and accountability.

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

The policy has also adopted the real estate assets registry platform and established controls and requirements for the use Union properties. Additionally, it outlines the rules and guidelines that federal entities must follow to occupy any space within the Union’s real estate properties, as well as provisions for the coordination, management, and disposal of these properties.

The primary objectives of the policy are to document and standardise the 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 policy provides guidelines for effective asset management and outlines the provisions, rules, and principles necessary for overseeing the entire asset lifecycle. It describes the procedures involved in managing assets, including the processes for acquiring, selling, and depreciating both tangible and intangible assets.

It is important to note that for all transactions involving sale, purchase, or recovery, federal entities are required to update their real estate register on the real estate assets registry platform and attach the supporting documents.