Improved asset utilization

Oct 13, 2025 by magicalceylontours.com 121 views

Internal Supervision of Fixed Assets at the Faculty of Economics, University of North Sumatra

The Importance of Effective Asset Management in Higher Education Institutions

In the business world, the primary goal of a company is to achieve profits, which in turn is used to maintain business continuity, increase growth, and ensure the company's survival. A company that successfully meets these criteria can be categorized as a prosperous company. This prosperity can be achieved through improving company performance and demonstrating positive developments. One of the essential pillars in a company's operations is fixed assets. Without fixed assets, such as buildings and vehicles, companies will face significant challenges in carrying out their business activities.

Fixed assets, also known as Plant Assets, refer to resources that have three main characteristics: a clear physical form, used in operational activities, and not intended for sale to consumers. In this context, fixed assets usually include property, factories, and equipment (property, plant, and equipment). Assets in this category are expected to provide benefits for more than one year for the company. However, it should be noted that except for land, the value of fixed assets tends to decrease over time and useful life.

The Role of Internal Supervision in Fixed Asset Management

Internal supervision of fixed assets is a crucial aspect of the Faculty of Economics, University of North Sumatra. The effectiveness of this supervision not only serves to maintain assets but also ensures that each asset remains utilized optimally. Supervision activities include appropriate recording, periodic maintenance, and evaluation of the use of assets. By conducting effective supervision, the faculty can prevent waste and abuse of resources.

As part of the management system, internal supervision also plays a significant role in increasing transparency and accountability. Every action related to fixed assets must be recorded carefully so that the available information is accurate. This became very important when the Faculty of Economics made financial reporting, because inaccurate information could mislead the interested parties such as accountants, supervisors, and management.

The Benefits of Effective Internal Supervision

From a managerial point of view, strong internal supervision can contribute to the achievement of the faculty's strategic objectives. Effective internal supervision can lead to several benefits, including:

Improved asset utilization: By ensuring that assets are used optimally, the faculty can maximize the benefits derived from these assets.
Increased transparency and accountability: Accurate recording and evaluation of asset use can help prevent waste and abuse of resources.
Enhanced decision-making: With accurate and reliable information, faculty management can make informed decisions regarding asset management and allocation.
Better resource allocation: Effective internal supervision can help identify areas where resources can be optimized, leading to more efficient use of assets.

Analysis and Recommendations for Improving Internal Supervision

To improve the internal supervision of fixed assets, the following steps can be applied:

Application of Management Information Systems

Using asset management software that can facilitate recording and tracking fixed assets. With this system, the faculty can manage assets more efficiently.

Training for Staff

Provide training to staff regarding the importance of fixed assets supervision and how to use them. This knowledge will help staff in carrying out their duties effectively.

Internal Audit

Carry out regular internal audits to ensure that all assets are well recorded and used in accordance with faculty policies.

Development of Policies and Procedures

Building clear policies and procedures related to the management of fixed assets, so that all parties involved understand their responsibilities.

Conclusion

By implementing these steps, the Faculty of Economics, University of North Sumatra will not only increase internal supervision of fixed assets but will also encourage efficiency and effectiveness in resource management. This will contribute to the long-term objectives of the faculty to achieve significant sustainability and growth.

Recommendations for Future Research

Future research can focus on the following areas:

Implementation of asset management software: A study on the effectiveness of asset management software in improving internal supervision of fixed assets.
Staff training and development: An investigation into the impact of staff training on the effectiveness of internal supervision.
Internal audit and control: A review of the current internal audit and control processes and recommendations for improvement.

By addressing these areas, the Faculty of Economics, University of North Sumatra can further enhance its internal supervision of fixed assets and contribute to the development of effective asset management practices in higher education institutions.
Frequently Asked Questions (FAQs) on Internal Supervision of Fixed Assets at the Faculty of Economics, University of North Sumatra

Q: What is internal supervision of fixed assets?

A: Internal supervision of fixed assets refers to the process of monitoring and controlling the use of fixed assets, such as property, factories, and equipment, within an organization. This includes recording, maintenance, and evaluation of asset use to ensure that assets are utilized optimally and that resources are not wasted.

Q: Why is internal supervision of fixed assets important?

A: Internal supervision of fixed assets is crucial for maintaining assets, ensuring that each asset remains utilized optimally, and preventing waste and abuse of resources. It also plays a significant role in increasing transparency and accountability within an organization.

Q: What are the benefits of effective internal supervision of fixed assets?

A: Effective internal supervision of fixed assets can lead to several benefits, including improved asset utilization, increased transparency and accountability, enhanced decision-making, and better resource allocation.

Q: How can internal supervision of fixed assets be improved?

A: To improve internal supervision of fixed assets, the following steps can be applied:

Application of Management Information Systems: Using asset management software that can facilitate recording and tracking fixed assets.
Training for Staff: Providing training to staff regarding the importance of fixed assets supervision and how to use them.
Internal Audit: Carrying out regular internal audits to ensure that all assets are well recorded and used in accordance with faculty policies.
Development of Policies and Procedures: Building clear policies and procedures related to the management of fixed assets.

Q: What are the challenges in implementing internal supervision of fixed assets?

A: Some of the challenges in implementing internal supervision of fixed assets include:

Lack of resources: Insufficient budget or personnel to implement and maintain internal supervision systems.
Resistance to change: Staff may resist changes to existing processes or systems.
Limited technical expertise: Lack of technical knowledge or skills to implement and maintain internal supervision systems.

Q: How can these challenges be overcome?

A: To overcome these challenges, the following strategies can be employed:

Seeking external assistance: Consulting with experts or seeking external assistance to implement and maintain internal supervision systems.
Providing training and development: Providing training and development opportunities for staff to build their technical skills and knowledge.
Establishing clear policies and procedures: Building clear policies and procedures related to the management of fixed assets to ensure that all parties involved understand their responsibilities.

Q: What are the future research directions in internal supervision of fixed assets?

A: Future research can focus on the following areas:

Implementation of asset management software: A study on the effectiveness of asset management software in improving internal supervision of fixed assets.
Staff training and development: An investigation into the impact of staff training on the effectiveness of internal supervision.
Internal audit and control: A review of the current internal audit and control processes and recommendations for improvement.