Faculty of business department of accounting an assessment of fixed asset managementin the

CHAPTER FOUR
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
4.1. Summary
Globally fixed asset management industry has finally returned to a growth to achieve the goal of 
the specific organization. The continuing fast growth of fixed asset management solutions and 
specification confirms a structural and shift in all governmental and nongovernmental 
organization. Fixed assets management is an important accounting process that seeks to track 
fixed assets for the purpose of financial accounting, preventing maintenance and theft deterrence.
Fixed assets are assets coasting birr 200 or more than it is operational use and that has a useful 
economic life of more than one year. Improper authorization of fixed assets, improper 
installation and disposal of fixed assets and low physical control of fixed assets may also result 
in business failure and hence it may hinder the organization’s long run dreams. The ineffective
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utilization of fixed assets further contributes to the above stated material problems of capital 
assets.
4.1 Summary of the Major Findings
In this part of the study the major finding of the analyzed data are summarized below;
❖ Lack of provision of trainings on the fixed assets management manual application and 
mismatching of the manual of fixed assets registry book with the federal finance and 
economic development manual.
❖ There is no procedure for the distribution of fixed assets to employers.
❖
❖ The warehouse and stores are not properly constructed in addition Lack of modern fire 
extinguisher materials.
❖ There is no continuous follow up and inspection for the acquired fixed assets.
❖ Decisions are made regarding disposal of fixed assets without detail assessment. Some 
fixed assets are not installed in proper place
❖ Based on the data the company store management personnel’s didn’t properly follow the 
required procedure when the raw materials released from the store as indicated by the 
majority 87.5 % and also majority 62.5% of the respondents show that the company 
materials issuances didn’t reconciled to general ledger control accounts at reasonable 
intervals.
❖ Majority 62.5% of the respondents show that the company inventory records reconciled 
with physical count at a regular interval. Similarly, majority 75% of the respondents 
respond that all classes of inventory items didn’t physically counted.
❖ Majority of the respondents 87.5 % implies that the company didn’t have a manual which 
can provide a proper procedure for making inventory physical count.. Similarly, majority 
62.5 % of the respondents respond that management didn’t review the reconciliation of 
physical inventory counts to the inventory records.
❖ Majority of the respondents which is 75% of them implies that there are discrepancies 
between physical counts and perpetual records investigated and resolved.