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

1.2. Statement of the Problem
At the time of this writing, the number of cases of AAU embezzlement and faithful performance 
error is on the rise. This results in loss of millions of birr through maintenance of assets. What 
this causes in common is a serious lack of internal control over fixed assets.
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 success. The ineffective utilization of fixed assets further contributes to 
the above stated material problems of capital assets.
As fixed asset plays an important role in the organization’s objectives, these fixed assets are not 
convertible over a period of time. If fixed assets are idle and not utilized properly it affects the 
long term sustainability of the service delivery to customers.
Based on the preliminary study the student researchers have been found the following problems 
on the fixed asset management practice of the AAU 6 kilo campus; on the reviewing and 
approval by managers before the using of fixed assets, on the disposing plant assets according to 
its legislative framework, on the relationship between functional responsibilities and the 
university’s fixed asset management and on the fixed asset maintenance and safeguard process.
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1.3. Research Questions
To address the problem related with fixed asset management, it is important to pose the 
following questions and the studytried answers these basic questions.
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How does the management system on reviewing and approving the requests?
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How does the performance of the University on the disposing of fixed assets?
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How valuable is the relationship between functional responsibilities and the university’s 
fixed asset financial management?
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How effective is fixed asset maintenance and safeguard process?