CHAPTER ONE

1.0 Introduction

This research is the Challenges of Assets Management at the General Services

Agency (GSA) Operations’ Department, (2016-2020). As such, this section provides an

introductory segment of the entire research work. It entails the background of the study,

statement of the problem, purpose of the study, research questions, and the significance of

the study, Scope and delimitations of the study, limitations, and definition of key terms

and organization of the thesis proposal. It emphasized the background of the study and

the scope of the research.

1.1 Background of the Study

Public sector asset management first came into the spotlight in the early 1980s, but

was enhanced by the (GSA, 2007) and later took much enforcement by the General Auditing

Commission in 2008 from their Audit report conducted in that same year. The General

Auditing Commission (GAC, 2012) reaffirmed that Central Government highlighted issues of

National Concern that we need to take a reactive approach to property asset management.

These reviews provided a platform for a major process of improvement – a search for new

and better ways to manage the valuable public sector resource and asset base property, (GAC,

2012). At the same time, the last 12 years have seen rapid changes in all aspects of working

practices and the public sector has not been immune to these (GAC, 2012).

The pervasive impact of technology, the rise of the service culture and search

for greater efficiency in the use of all resources have challenged professionals to deliver new

and more responsive proper solutions to meet the needs of the occupiers, customers and a

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wide range of other stakeholders. Responding to these challenges, academics, consultants and

advisory bodies have developed tools and techniques to help asset managers proactively deal

with their portfolios. New financial management tools, a better understanding of information

and performance monitoring, and new approaches to the use and management of the

workplace are but a few of the areas which have seen considerable progress. Additionally, a

wide range of public sector groups have formed strong communities of practice who have

captured and shared best practice, providing real evidence of the impact of these ideas (GAC,

2012).

Consequently, there has been a considerable increased in knowledge about how public sector

organizations can gain more from their properties and this has resulted in a more strategic and

systematic approach to asset management (GAC, 2012). Recently, asset management system

has been implemented within the public sector. Although the National Treasury developed a

guideline for capital asset management in local government to assist with the development

and implementation of the asset management system, the guideline has received very little

attention (GAC, 2008).

The study provided an indication of the challenges and implementation of the

asset management process at GSA, as well considering other public institutions of

government, local government, and municipalities. The bottom line is that while most entities

have made progress with regard to implementation, much remains to be done. Most entities

implement the asset management process selectively. This did not yield positive and

sustainable results and they ended up abandoning the whole asset management system. The

research outlines the successful development and implementation of an asset management

system at GSA, and indicates the gap that was identified as limiting the progress and success

towards achievement of performance objectives.

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 To a larger extent, the research reveals that if elements are missed or not addressed

properly the process will not yield consistent results and the impact on the organization’s

performance will not be positive. Performance measurement, which should be used to

determine the challenges, progress and implementation, should be linked directly with asset

management. Service level agreements should be established among all relevant departments,

including the finance department, procurement and all stakeholders should agree on

objectives. The key to proper implementation is the alignment of the asset management

process with the strategic objectives of the organization that is to be emphasized.

The GSA, has implemented a number of asset management principles and

maintenance plans over the last few years. However, the organization has experienced poor

performance results although these plans and principles were thought to have been the

solution to the asset management problems and asset reliability. Other problems associated

with performance backlog and bottlenecks have been poor procurement and supply chain

management, which negatively impacted the implementation and maintenance policies that

guide asset management. This has prompted stakeholders to question the organization’s

management capabilities (GSA, 2015).

The major performance failures have been attributed to various stages of the

maintenance process and a lack of understanding of asset management objectives. There are a

set of standards that each department needs to meet with regards to effluent standards, in

addition, asset management planning is one of the criteria used to measure performance and

compliance of any institution (GSA, 2015). This requires a system that evaluated the

performance track records of all departments and maintenance activities that have been

implemented (GSA, 2015). Thus, asset management requires that the Agency’s information

system is integrated. This is currently not the case, creating bottlenecks in decision making,

reaction times and required approvals or authorizations (GSA, 2015). The research has

assessed the challenges of asset management at (GSA, 2015-2018)

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1.2 Statement of the Problem

Changing economic conditions has reduced government purchasing power on assets

in general, which undermines the efficiency and effectiveness of line ministries and agencies

of government. So Public Service Leaders across government and specifically larger

ministries and agencies are now coming to realize that as budgets get squeezed, they have to

wring the maximum efficiency from every part of government; so assets management is

rising up the agenda.

Predicated on the above, the researcher has noted with deep concern that as a

result of low supply of government assets in recent time, has created an increasing demand

that spill over to poor implementation of works. This has shown a trend, as illustrated by

public sector auditor as inadequate or inappropriate assets management, which likely runs

government in the many unexpected cost (GAC, 2010). This demand and supply of

government assets create significant impact on needs for property asset manager to maintain

the properties as well as to optimise the usage and occupation for the long term to meet the

strategic needs of government (GAC, 2010).

Property assets or any other asset in any form, contributes to the success of

government and needs to be managed effectively and efficiently, these property assets need to

be professionally managed to ensure that the value of the asset is maintained (Mohd, 2016).

Based on the research provided, many developing countries today for example Malaysia,

asset management has been focused on operation that involved maintenance management

(MohdIsa, 2016). With such brilliant concept of asset management in Malaysia, Liberia as a

country can get ahead, property asset management can be put in to proper perspective from

one ministry or agency to the other. The researcher has two main concerns: how effective is

4
the Government of Liberia managing its own assets; and how effective is it in the guidance

and support it gives to the wider Ministries and Agencies. As such, the research assesses the

challenges of asset management at (GSA, 2015-2018).

1.3 Purpose/ Objectives of the Study

The main objective of this research will be: to assess the challenges of assets

management at GSA (2016-2020), and the specific objectives will be:

1. To assess the effects of assets management on institutional mandate at GSA.

2. To identify how public assets registry carried out at GSA;

3. To establish how assets classification done at GSA;

4. To ascertain the challenges of implementation of assets management at GSA;

1.4 Research Questions

The main research question will be: What are the challenges of assets management
at GSA / within the public sector?
In an attempt to answer this question, the study will specifically address the following

questions:

1. What effects assets management has on institutional mandate at GSA?

2. How are public assets registry carried out at GSA?

3. How are assets classification done at GSA?

4. What are the challenges of implementation of assets Management at GSA?

1.5 Significance of the Study

This research findings will be useful to not only financial and procurement managers

and administrators, but also to the developmental policy makers and stakeholders when they

are planning for the effectiveness of assets management. The findings of the study will

specifically benefit several beneficiaries, not only considering GSA but to other institutions

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as well, just to name few: the GSA Liberia, the Ministry of Finance and Development

Planning, (MFDP) Liberia, and the Ministry of Education, (MOE- Liberia), among others.

Firstly Considering each at a time, beginning with GSA-Liberia, the findings of the

study will enhance performance-based assets management programs, support the preservation

of existing counties assets through the use of identified measures and targets, this will enable

decision makers to identify the optimum balance between availability and utilization for any

assets at any given time in the 15 counties of Liberia; Secondly, the study will advance GSA

by clearly defining assets, and linking performance measures to the agency's vision and

mission so that they have meaning for their stakeholders. Thirdly, the findings of this study

will specifically be beneficiary to the Ministry of Finance and Development Planning

(MFDP), as an eye opener in improving technicians understanding of the mystery out of how

and why decisions are made on asset management and has helped to redevelop the confidence

in ministry or agency’s performance by clearly reporting achievements, failures-and progress

toward established goals at the MFDP. Lastly, the findings of the study will enable the

Ministry of Education to develop a culture of change in its assets management administration

by aligning to other Ministries and agencies by being committed to the principles of asset

management and by providing the resources to implement it. They can now conduct an asset

management self-assessment; Identify the asset management policies and goals to be

achieved; Prepare and implement an asset management action plan.

1.6 Theory X and Theory Y

Do you believe that every individual gets maximum satisfaction from the work they
do? Or are you of the opinion that some view work as a burden and only do it for the money?
Such assumptions influence how an organization is run. The assumptions also form the basis
of Theory X and Theory Y. Douglas McGregor is the theorist credited with developing these
two contrasting concepts. More specifically, these theories refer to two management styles:
the authoritarian (Theory X) and participative (Theory Y). In an organization where team

6
members show little passion for their work, leaders are likely to employ the authoritarian

style of management. But if employees demonstrate a willingness to learn and are

enthusiastic about what they do, their leader is likely to use participative management. The
management style that a manager adopts will influence just how well he can keep his team
members motivated. Theory X holds a pessimistic view of employees in the sense that they
cannot work in the absence of incentives. Theory Y, on the other hand, holds an optimistic
opinion of employees. The latter theory proposes that employees and managers can achieve a
collaborative and trust-base relationship. Still, there are a couple of instances where Theory X
can be applied. For instance, large corporations that hire thousands of employees for routine
work may find adopting this form of management ideal.

Predicated on the above, the management style of Theory Y, according to Douglas

McGregor, holds an optimistic opinion of employees. This theory proposes that Employees
and managers can achieve a collaborative and trust-base relationship. Considering the
collaborative efforts of both staff and Director of the Bureau of Assets Management, in the
Department of Operations at the General Services Agency (GSA), the Participative Style of
Management which is Theory Y will be used to support the study.

Taylor’s scientific management theory, increases Productivity. Managers should be

interested in learning management theory because it helps in maximizing their productivity.
Ideally, the theories teach leaders how to make the most of the human assets at their disposal.
So, rather than purchase new equipment or invest in a new marketing strategy, business
owners
need to invest in their employees through training. It can be seen in Taylor’s scientific
management theory. As mentioned earlier, Taylor proposed that the best way to boost
workers’
productivity was by first observing their work processes and then creating the best policies.
Base on the Taylor’s scientific management theory, which has to do with Productivity, will
be helpful to this study because the Director of the bureau of Assets Management at GSA will
require productive results in the process of data collection and analyses.

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1.7 Scope and Delimitation of the study

The scope of the study will be delimited to four years period, ranging from 2016 to
2020, and will consider 254 employees at the GSA Operations’ Department as the population
of the study which comprises of women and men at the department. Based on the importance
of the study, the researcher will consider those who are knowledgeable to be used as the
sample size for the study.

1.8 Limitation of the Study

A research has never been conducted in the absence of constraints. The researcher,

may anticipate constraints; which will not be limited to the unwillingness that will exist with

some of the respondents to reveal information due to fear of insecurity, the lack of sufficient

resource materials, due to bad road conditions and financial implications, these will serve as

constraints to the study. More to that, another limitation will likely be the impossibility of

retrieving some of the interview questions from respondents in the field. But despite of these

constraints, every effort will be made to ensure that the objectives of this study be achieved.

1.9 Definition of Key Terms

Terms vary in meaning and context, the following terms will be interpreted as per the

research objectives.

Assets– Any company resource purchased for long-term use that requires close tracking, with

a value that can be measured and expressed in dollars. (GSA Policy Manual 2014).

Assets management– The process of recording and maintaining accurate physical asset data
in order to maximize asset utilization and minimize loss. (GSA Policy Manual 2014).

Auditor– A person or firm responsible for performing an official examination of an

organization’s financial accounts. (GSA Policy Manual 2014).
Capitalization threshold– The minimum cost at which an asset must be reflected in your
accounting records. This threshold may be determined by government regulation, or by the

8
standards set forth by your organization. (GSA Policy Manual 2014).

Depreciation– A method of allocating a portion of the cost of an asset over the period it can
be used. While there are many types of depreciation, the most commonly used is the straight-
line method. (GSA Policy Manual 2014).

Disposal– The process of selling an asset that has reached the end of its useful life. (GSA
Policy Manual 2014).

Ghost asset– A fixed asset that appears on your financial statement, but is no longer in use
because it is missing or has been determined unusable (GSA Policy Manual 2014).

1.10 Organization of the Study

The research will be organized into five (5) chapters, for this stage of the proposal,

it will be three (3) chapters: Chapter One: will discuss the introduction, the background of the

study, the problem statement, Research Questions, Purpose and Objectives of the Study,

Significance of the Study, Scope and Delimitation of the study, Limitations of the Study,

Definition of Key Terms and the Organization of the Study. Chapter Two, will focus on the

review of literature relevant to the study. Its major concern will be to identify the knowledge

gap. Chapter three (3) will concern itself with the research methodology. These are

procedures of collecting and generating the data relating to the study in order to address the

identified knowledge gap.

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 CHAPTER TWO:

REVIEW OF RELATED LITERATURE

2.0 Introduction

The largest ownership and occupation of property assets is usually the public

sector organization. The government is seen as a major stakeholder of properties and

facilities, either by virtue of being the owner of the properties in question or by being the

major beneficiary of the functions of these properties contribute forwards (Natt & McLennan,

2000).

The types of property owned by the public sector organization include schools,

hospitals, universities, markets, airports, railway stations, sea ports, one government

administrative buildings power generation plants, military basis, armed forces and offices and

infrastructure such as roads. Public sector organizations in Liberia are among the largest

property owners and the richest in terms of operational property value. The property assets of

the public sector organization can be considered as having financial contribution and effect

upon annual financial statement asset base and as well as on resale values in case of

privatization of any public setting. Asset management planning is one of the criteria’s used to

measure performance and compliance of any institution. This requires a system that will

evaluate the performance track records of all bureaus and maintenance activities that have

been implemented. Thus, assets management requires that the organization’s information

system is integrated. This is currently not the case, creating bottlenecks in decision making,

reaction times and required approvals or authorizations of Internal Audit Agency (IAA,

2013). The research assessed the challenges of assets management at (GSA).

10
2.1 Overview of Public Assets Management

Public assets management is a critical component of the financial integrity of

government. However, in practice, problems exist in the field of public asset management at

different levels of government in Liberia. Recently, asset management systems have been

implemented within the public sector. Although the National Treasury developed a guideline

for capital asset management in local government to assist with the development and

implementation of the asset management system, the guideline has received very little

attention (IAA & GAC, 2013).

The study provided an indication of the implementation of asset management

process by most government entities, local government, municipalities and the public sector

(IAA & GAC, 2013). The bottom line is that while most entities have made progress with

regard to implementation, much remains to be done. Most entities implement the asset

management process selectively. This does not yield positive and sustainable results and they

ended up abandoning the whole asset management system.

The research outlines the successful development and implementation of an asset

management system at two public institutions: National Elections Commission and Ministry

of Information and indicated the gaps identified that are limiting the progress and success

towards achievement of performance objectives (IAA & GAC, 2013). It revealed that if

elements are missed or not addressed properly the process will not yield consistent results and

the impact on the organization’s performance will not be positive.

Performance measurement, which should be used to determine progress and

implementation, should be linked directly with asset management. Service level agreements

should be established among all relevant departments, including the finance department, and

all stakeholders should agree on objectives. The key to proper implementation is the

alignment of the asset management process with the strategic objectives of government were

11
emphasized (IAA & GAC, 2013). This research assessed the challenges of asset management

at GSA.

2.2 Key requirements for Proper Assets Management

According to Tevet (2014), Asset management is defined as the

active management of the financial and physical assets of a company (or other entity)

especially in order to optimize the return on investment. The main purpose is to make optimal

spending decisions that will return the greatest stakeholder value from the available budget.

GSA Policy Manual (2014) identified that an asset, is considered as one having a useful life

of more than one (1) year with a cost threshold of US$ 500. Typical assets and infrastructure

at the GSA include, but not limited to: All buildings owned by the Agency including

warehouses; IT equipment’s such as computers, printers, copiers, scanners, etc.; Generators;

Furniture; Automobiles. The following were identified under: Assets and Physical

Infrastructure Management.

2.2.1 Acquisition of Assets

GSA Policy Manual (2014) identified that assets can be acquired through: Direct

Purchases. This will require the assets in question to be budgeted for as part of annual

planning and the purchase made following the procurement steps described in section 4 of

this manual. Assets Donations- Assets could be donated to the Agency by a donor or

development partner. The facilities manager will need to establish the value of the assets

donated and record it in the assets registry. Likewise, the accounting staff should also

recognize the assets in the book of accounts (GSA Policy Manual 2014).

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2.2.2 Inventory of Assets (Assets Registry)

An inventory of all fixed assets should be maintained by the facilities manager

at the headquarters and by the logistician at the Reginal offices. For control purposes, all

newly purchased assets should be coded by the facility section, (GSA Policy Manual 2014).

GSA Policy Manual (2014) disclosed that assets registry should contain the following

minimum information in respect of each assets. Description of the asset; Serial number or

number place in case of automobiles; Asset unique number tagged on the asset following a

particular format; Date of acquisition; Cost of the asset or donated value; Source of Funds for

Acquisition (Government or Donor); Location of the asset; Assigned user of the assets;

Disposal information. The assets registry should be prepared and updated on a monthly basis

using information supplied from the finance and procurement departments. Assets registry

copies from regional and other sub offices should be updated and sent to the facilities

manager at the headquarters on a quarterly basis (GSA Policy Manual 2014).

Assets Counts, Verifications and Audits At least once every year, there should be a

count of all physical assets. The count should be carried out by a nominated staff from

finance and an internal auditor, results of which should be compared with the assets registry.

Any discrepancies must be explained to the Director General. Staff in charge of an asset may

be required to take responsibility in case of loss or damage other than normal wear and tear.

Asset counts should also be carried out at Reginal offices in a similar manner with the head

office availing a nominated staff to conduct the exercise. Asset counts should be carried out

before the end of a given fiscal period (GSA Policy Manual 2014).

2.2.3 Security and Maintenance of Assets

The research also identified that the primary responsibility for assets security lies

with the staff to whom the assets have been assigned. Staff therefore need to take measures to

ensure that assets, especially movable ones are secured in their offices through taking

13
appropriate and sensible measures, (GSA Policy Manual 2014). The GSA management

should take adequate measures to ensure that offices are secured through the provision of

security services and that there is control over visitors entering the GSA premises. This

should include controls over movement of valuable assets such as computers out of office

premises (GSA Policy Manual 2014).

2.2.4 Asset Insurance

Reference to GSA Policy Manual (2014) it was identified that all assets be insured

with a reputable insurance company identified through the procurement process. Care must

be taken to ensure that assets are insured based on their estimated fair values taking into

account years of use, depreciation and condition. Risks that should be covered by the

insurance policies include fire, theft, loss and damage. To ensure that this happens, a budget

for insurance should be provided for in the annual plans.

2.2.5 Management and Maintenance of Automobiles

Automobiles, mainly motor vehicles and motorcycles form a significant portion of

the GSA assets. As such, the following controls need to be exercised over them. Allocation of

Vehicles and Usage Vehicles and other automobiles are to be used solely for the work of

GSA. Allocation of vehicles to departments and Reginal offices shall be based on need and

once allocated, vehicles and other automobiles shall be available to facilitate the work of that

department or Reginal office and they should not be used for personal purposes unless

express permission is obtained from the Director General.

The Director responsible for fleet management is required to draw a pooling

arrangement in a way that makes it possible for departments to access them whenever

needed. This arrangement needs to be approved by the Director General. Only personnel with

driving licenses and who have been approved by the Director General can drive the GSA

14
vehicles and other automobiles. Safety and Parking of Automobiles When not in use for

official purposes, vehicles should be parked at the GSA office premises.

Mileage covered over and above the fixed mileage shall be charged on the

employee using prevailing market rates. Automobile Maintenance The head mechanic should

prepare a schedule for the maintenance for all vehicles and ensure that this is rigorously done.

Vehicle repairs should be performed by a reputable service provider (if not provided in-

house) selected following the procurement process. Drivers should report all vehicle

malfunctioning to the head mechanic for action. Except in cases of emergencies (e.g.

breakdown in remote places), persons assigned vehicles should not undertake repairs directly

as parts used may compromise the useful life and proper functioning of the vehicle. All

repairs should be done through the office using reputable mechanics and spare part suppliers

(GSA Policy Manual 2014).

The GSA automobiles should be refueled in approved fuel and gas stations to

avoid use of bad fuel that can damage the engines. The amount of fuel coupons given to staff

using a vehicle should be purely based on, and related to the level of activities that the

staff/driver is engaged in. All drivers and automobile users are required to fill log books

(Annex 8) placed in each vehicle to indicate dates, destinations and mileage covered. Each

driver should sign the log book at the end of each journey. The head driver/mechanic should

ensure that this happens by checking the log books on a daily basis. In addition to this, the

security guards at the entrance to GSA premises are required to record all vehicle movements

in a registry, clearly noting the vehicle plate number and times of departure and entry. The

facility manager shall on a quarterly basis prepare reports on mileage and fuel usage and

submit a report to management, noting where vehicles may be operating inefficiently and

recommend appropriate action that may include disposal (GSA Policy Manual 2014).

2.2.6 Warehousing and Stock Record Management

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 GSA warehouses comprise so many materials and equipment, some of which

may be very sensitive such as Spare Parts and other consumables may be stored in the

warehouses awaiting use or deployment to designated locations (GSA Policy Manual 2014).

2.2.7 Comparative Analysis of Assets management with International Best Practices

Kennedy (2016) found out that for several years following the crisis, the finance

industry came under fire – from regulators, politicians and in public discourse. A new

regulatory and legislative framework, introduced post-crisis, has fundamentally changed the

asset management industry, both directly and indirectly. And the stimulus of quantitative

easing has buoyed markets, which in turn has led to profound changes in the supply-and-

demand dynamics in asset management. This has led to a decade of steady growth.

2.3 Key Challenges of Asset Management in Developing Countries: Technological

Impact

In a research conducted by Novic and Nair ( 2013) identified that today,

technology is a key component of asset management, integral to many aspects of the

investment process including trading, risk management, operations and client service. Given

today’s information-rich environment and the importance of technology in accessing markets,

every organization that manages assets – whether it’s an asset management company or an

asset owner who manages its assets internally – uses technology as part of its investment

process Recently, various observers have questioned the role of technology in asset

management. Some have raised concerns that the use of a vendor-provided system or

modeling tool by multiple asset managers or asset owners could increase systemic risk. In

particular, these concerns are based on the precept that common technology could create a

“group-think” dynamic where multiple asset managers could make similar investment

decisions at the same time, or where a problem with a widely-used model paradigm could

16
lead to an industry-wide misunderstanding of risk. Others believe a single investment system

with a large share of the market could potentially lead to vendor risk. While these are

important questions to ask, they reflect a misunderstanding of the heterogeneous nature of

asset owners and their differing investment objectives, how investors use technology, and the

technology choices available to investors (Novic & Nair 2013).

References to investment management technology often conjure up images of

“super-computers” telling investors what to buy or sell. In reality, while risk analysis and

decision support tools are part of the suite of systems that asset managers and asset owners

use, a core function of asset management technology is to support a massive exercise in data

management and information processing. Asset managers require systems to facilitate the

maintenance of data and flow of information between multiple functions within the manager,

as well as to other entities involved in the investment process, such as trading counterparties

and custodians.

Technology provides the unseen “plumbing” that ensures information flows

smoothly throughout the ecosystem. Further, the landscape for investment management

technology is highly competitive, with many competitors and low barriers to entry for new

vendors. A robust asset management process requires both experienced professionals and

technology. The use of proven investment and risk management systems provides significant

benefits to the financial system. Integrated investment technology enhances the quality of

large volumes of data supports consistent investment workflows and enables timely

communications with both internal functions and external parties (Novic & Nair 2013). In

their paper, they traced the role that investment technology plays throughout the asset

management process. In addition, we highlight some of the key processes and controls

necessary to asset management and how technology facilitates better risk management and

decision-making (Novic & Nair 2013).

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 Asset management starts with the investment objectives and constraints of each

client be a public or private. These differ across market segments such as insurers, pensions,

official institutions, and individuals, and across individual entities in each market segment.

Internal and external asset managers use technology to manage data, measure risk, test

compliance, and address various operational needs. While technology supports decision-

making, investment professionals make the actual investment decisions (Novic & Nair 2013).

The decision of what approach to take with systems is specific to each asset

manager considering the costs and features of various systems choices. Regardless of the

approach taken, asset owners managing assets internally and asset management companies

need to implement clear processes with the appropriate checks and balances to ensure

integrity throughout the investment process (Novic & Nair 2013). Increasingly, with

technology to ensure best practices asset managers are looking to implement automated

solutions to manage this data. Their goals are to reduce data errors emanating from manual

processes, to eliminate the need to reconcile data across systems, and to allow investment

professionals to focus their time on making investment decisions using sound and reliable

data. The Decision to Build vs. Buy When implementing technology systems, asset managers

must decide whether to build a system internally, integrate multiple vendor products into a

combined system, or use one centralized vendor system. Each of these options has its own

advantages and disadvantages (Novic & Nair 2013).

2.4 International Perspective of Assets Management

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 Each country has its own public management objectives and public asset

management practice. Public asset management policies differ due to cultural and historical

heritage, the size of the public asset portfolio, the organization of general government, the

level of democratization, the perceptions of the public management role and public sector

accounting practices. Despite these differences, there are some common preconditions that

are considered necessary for conducting public asset management activities efficiently. These

are: A +public asset registry; public asset classification, public asset recognition and

measurement; public asset portfolio construction; institutionalization and professionalism

in public assets management, and cost and outcomes measurement. (Tanzi & Prakash, 2000).

These preconditions (public asset recognition and measurement, and cost and

outcomes measurement in particular) depend on the existence and quality of the regulatory

financial reporting framework. Croatia is particularly interesting to study because of the

degree of governmental accounting normativism that stems from public finance centralization

and the fact that public expenditure is financed through the central Budget (Tanzi & Prakash,

2000). Therefore, the legislative frame regarding governmental accounting development is

determined by the Budget (Finance) Act as well as by additional regulations. The fact that the

application of IPSASs has not been enacted as obligatory, but the implementation of certain

accounting solutions defined by IPSASs has been recommended by Croatian regulations

assures legislative support to follow IPSASs or to preparation and approval of a national

framework of accounting rules for the public sector, based on IPSAS rules (Tanzi & Prakash,

2000). The above mentioned pre-requisites are described in the order they are mentioned,

with reflection on some experiences of developed and developing countries (Tanzi &

Prakash, 2000).

2.5 Public Asset Registry

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 A public asset registry can either be centralized or decentralized. The level of

centralization depends on the organizational structure of the general government that is

closely related to the size of a particular country. Regardless of the degree of centralization

and practical usage of public assets, the public asset registry is supposed to represent an

accurate database of all public assets and the related liabilities. New Zealand, Australia, the

United Kingdom and France are known for the establishment of fairly complete public asset

databases (Tanzi & Prakash, 2000).

The public asset registries in Australia and New Zealand were developed in the

course of the public sector reform (Bavin, 1999; Tanzi & Prakash, 2000). The UK is also a

good example of the development of a public asset registry. The National Asset Registry that

represents a comprehensive list of assets owned by UK Government departments and

governmentally sponsored bodies is considered to be an international landmark in

transparency and accountability. The role of the National Asset Registry has been to achieve

greater transparency and better decision making in managing public resources, manage

maintenance and opportunity costs of public assets, make the best use of everything the

nation owns, and control of plans to dispose of noncash generating assets by ensuring that

resources are allocated to where they can be used most productively (Bavin, 1999; Tanzi &

Prakash, 2000).

Information about contingent liabilities is disclosed in the notes to the financial

statements, while IPSAS “Revenue from Non-Exchange Transactions (Taxes & Transfers)”

refers to present obligations arising from non-exchange transactions that meet the definition

of a liability. Overall, apart from managing foreign exchange reserves and domestic currency

issuance that are entrusted to the Croatian National Bank, and commodity reserves that are

managed by the Commodity Reserves Directorate within the Ministry of the Economy,

Labour and Entrepreneurship, all other liabilities that result either from using the asset or that

20
arise when leaving the asset unused need to be assigned to that particular public asset (Bavin,

1999; Tanzi & Prakash, 2000).

2.6 Public Assets Recognition and Measurement

In order to determine its book and economic value, each public asset has to be

properly recognized and valued. The most common way for public assets to be recognized

and valuated is to apply IFRSs to State, Government, and special government entities’ stakes

in SOEs, and IPSASs to other public assets, whenever possible. However, different

accounting concepts worldwide have built high barriers to implementing common financial

reporting valuation techniques in the public sector. Recognizing and valuing public assets

provides better information about the management of public spending, because it assures

better management of resources – assets and liabilities as well as costs. Sometimes, just

because the use of assets acquired or inherited in the past does not affect the current

budgetary costs, these assets are treated as if their value were zero and remain unrecorded

(Tanzi & Prakash, 2000).

As articulated by Likierman (2003), rather than being a simple statement of cash

spent and received, resource accounts take broadly the same form as commercial accounts,

with a balance sheet, profit and loss statement and information on cash flow, along with some

additional information specific to the public sector. Yet, there are tendencies to properly

account for the majority of public assets and to assign them a monetary value whenever and

wherever possible, so that they do not remain off the balance sheet (Smith, 2007).

The paper by Smith refers mostly to valuing specific public sector assets such

as: infrastructure assets, military assets, heritage assets and natural resources. Such assets are

recognized within the financial reports only if a full accrual accounting basis is implemented.

In that way the accrual accounting represents a tool for forming a relevant, complete and

qualitative information base and serves as a catalyst for public sector accounting information

21
system reform (Barret, 2004). In order to achieve better control and enhance accountability

throughout the public sector, many countries have either adopted the accrual accounting basis

in their public sector reporting and budgeting, complying with most of the IPSASs

requirements (New Zealand, U.K., Australia, Canada, Finland, Iceland), or have implemented

the accrual accounting basis in public sector financial reporting, while preparing to move to

accrual budgeting (Denmark, Switzerland, Sweden).

According to Mellor (1996), “the whole of government accrual reports provide a

more complete picture of government finances and assist in assessing the financial

performance and financial position of a government, Tanzi and Prakash (2000) articulate

certain objectives of the Italian government regarding public asset management. The

objectives were published in a decree in 1985, and they were to identify each publicly owned

real asset, register each asset’s location and condition, estimate the value of the assets and

ascertain what income they generate, and examine the most productive potential use of these

assets.

Despite the age of information technology and worldwide computer use, many

public authorities do not have asset registers that would enable them to have a true reflection

of the total value of assets owned, or their public asset registries are incomplete. It is

therefore difficult to monitor and control the way public assets are used or misused,

especially when the inventory of public assets is substantial, as has usually been the case in

former planned economies like Croatia. Due to the lack of an integral asset registry, public

assets have been scattered in “databases” around various distinct public institutions and local

authorities (Tanzi & Prakash 2000).

These institutions and authorities have been treated as places entitled to revenue

from the Budget allotted to them to cover their operational and fixed costs. Most public

institutions are often treated as regular cost centers, regardless of the profit they (could) earn

22
from managing public assets. However, the potential profit an asset might earn might provide

an incentive for the government to stop being wasteful in its use of publicly held assets. We

deem that in order to avoid double or triple records of public assets as well as to avoid the

omission of recording some public assets, a centralized registry of all public assets is

necessary (Tanzi & Prakash 2000) .

As stated by Tanzi and Prakash (2000), a creation of an official of publicly

owned assets would increase public sector efficiency, and could serve the following

purposes: provide the value of the assets owned by the government that could help rating

agencies in determining the credit rating of that government (central and municipal) facilitate

the calculation of the balance sheet or the net worth of the government; reduce the possibility

that some public assets “disappear” ;permit a government to impute capital charges to public

agencies or institutions that ;use these assets, to force them to use these assets efficiently, and

become an important building block for the extension of accrual accounting to include the use

of capital charges.

Even though the extent to which a public asset registry can contribute to more

efficient public asset management can be debated, it is obvious that without a database that

includes all financial and other data on public assets, making final decisions on certain public

management actions is not possible. An incomplete record of all public assets makes the

process of monitoring and controlling asset use rather difficult and enables the use of public

assets without prior valuation and without scrutinizing public needs. However, achieving the

level of accountability, in terms of assuring that government knows what it owns, where it is

and what it has been used for is a precondition for public asset recognition and measurement

for accounting purposes. Thus, while, to a certain point, a level of accountability for

managing public assets can be achieved without any evaluation of the assets and without

consolidating the assets financially, making decisions regarding new and different ways of

using the assets cannot (Tanzi & Prakash 2000).

23
2.7 Public Assets classification

Tanzi and Prakash (2000) found out that assets classification within the public assets

registry is crucial to establishing a manageable public assets portfolio. Such a portfolio would

be a solid base for implementing the valuation methods necessary for efficient utilization of

public assets. Just as with private sector assets, all public assets can be referred to simply as

either tangible or intangible. All public assets need to be accounted for in the central public

assets registry, regardless of who has been in charge of them and regardless of what the

possibilities and ways to determine their real value may be.

Taking the stance that it is preferable for each country’s public assets database to

include at least the most important public assets, various assets classifications are possible.

The variety of classifications across countries exists because certain countries are in doubt

what types of public assets to include in their public assets portfolios and how to value them.

On the basis of the use being made of the assets, they can be classified as vacant, occupied by

governmental authorities or serving to provide public services.

It was realized that IPSASs represent a sound base for assets classification and

valuation rules. For example, IPSAS Presentation of Financial Statements refers to current

and non-current assets as separate classifications on the face of the statement of financial

position. The distinction between cash-generating and non-cash -generating assets as the

primary objective for holding the assets is referred to in IPSAS Impairment of Non-cash-

generating Assets and in IPSAS (Tanzi & Prakash 2000).

Impairment of Cash-generating Assets, while IPSAS Property, Plant and

Equipment recognizes separate asset classes such as land, operational buildings, roads,

machinery, electricity transmission networks, motor vehicles, office equipment, furniture and

fixtures, etc. IPSAS Provisions, Contingent Liabilities, Contingent Assets requires that

certain information about contingent assets is disclosed in the notes to the financial

24
statements to enable users to understand their nature, timing and amount (Tanzi & Prakash

2000).

Taking into account the statement of financial position limitations and the fact that

citizens are the “true” and ultimate public assets’ owners, this paper recognizes the following

public asset classes in Croatia: public infrastructure, real estate, financial assets (stakes in

SOEs, cash and various securities), heritage assets, natural resources, military assets, and

movables. Depending on the asset classification adopted, various public asset valuation

models might be applicable. For example, stakes in healthy SOEs are to be valued according

to the “going concern” principle, while so-called “specific” public sector assets (heritage

assets, natural resources, infrastructure and military assets) need to be valued primarily

according to specific features that are applicable for the particular asset in question.

Even though Croatian accounting legislation does not explicitly assert that particular

assets, such as military assets, heritage assets, infrastructure assets and natural resources, are

not to be accounted for, these asset groups are often not identified and hence not recognized

in general purpose financial reports. In addition, fixed assets purchases are also not

capitalized (Tanzi & Prakash 2000).

Therefore, the existing Croatian governmental financial reporting model, based on

modified accrual accounting, mainly only results in financial assets and capital equipment

recognition and valuation. No matter what the origin of financing might be, each public asset

has its corresponding liability that has to be taken into account when measuring the benefits

from putting an asset into use. The incentive for putting assets into their most productive use

would also mean avoiding the increase in liabilities that arises when leaving the asset unused.

Several IPSASs address different types of liabilities. For example, IPSAS “Presentation of

Financial Statements” states that liabilities should be presented broadly in order of their

liquidity or the entity should choose to make the distinctions between current and noncurrent

25
liabilities as separate classifications on the face of the statement of financial position. In

addition, IPSAS “Provisions, Contingent Liabilities, Contingent Assets” sustainability of its

policies and intergenerational equity issues (Tanzi & Prakash 2000).

Another benefit of accrual reporting is that it focuses policy attention on the whole

balance sheet, not just cash flows or debts”. Further, “information on assets and liabilities,

which accrual accounting provides, is needed to monitor aspects of the ownership interest

such as financial viability, return on investment, and maintenance of capital” (Pallot,

2001:384). After all, if all private sector companies keep records of the financial and physical

features of the assets they own and use, why would public sector assets be treated differently?

When providing goods and services to the public, the government needs to be transparent

regarding the way it uses publicly owned resources.

In that manner Pallot (1992) examined an assumption that public property is

equivalent to private property and that government entities own property in the same sense

that private firms or individuals do. For some public sector assets, it may be difficult to

establish their market value because of the absence of market transactions for these assets.

Some public sector entities may have significant holdings of such assets. While it is very

difficult to place a meaningful and reliable value on specific public assets (e.g. heritage assets

and natural resources) for the balance sheet, and while the process of valuing such assets

might be very expensive, the fact that organizations are required to report on how they are

caring for specific public assets will ensure that no one could dispute the assets’ value to the

citizens (Smith, 2007).

As already emphasized, in the Croatian Governmental financial reporting system

modified accrual accounting has been implemented as a gradual transition from cash-basis

accounting to accrual accounting. Even though modified accrual accounting is considered a

sound basis for upgrading the existing Croatian accounting information system, presently it

26
does not enable the recognition of all public assets. The expenditures that refer to fixed assets

purchase are not capitalized but rather treated as a one-off expense when obtained (Smith,

2007).

This implies that assets are not depreciated on the basis of their estimated economic

life. The consolidated financial statements of the Government of Croatia refer to the

consolidated financial statement of the local budget and the consolidated central government.

The consolidated central government encompasses the consolidated financial statements of

the ministries, extra - budgetary funds and other central state entities (e.g. departments and

agencies). The Treasury of the Ministry of Finance of Croatia is responsible for financial

statement consolidation at the state level.

The SOEs have their own consolidated or non-consolidated financial statements which are

not included in the consolidated financial statement of the Budget of the Republic of Croatia.

Although the recognition of “specific” public assets in Croatia is neither required nor

forbidden by the accounting legislation, they are often not recognized or valued within

General Government or public institutions’ financial reports. Two prevailing arguments by

Vašiček, (2004) support this assertion are: the reserved opinion concerning whether or not to

account for the infrastructure and heritage assets in the financial statements, and the question

of whether a reliable and measurable value allows an asset.

2.8 Towards Efficient Public Sector Assets Management: Assets Management Practice
in
Croatia
Governments are accountable for providing quality public services to their citizen’s

at the most favorable terms. They are, among other issues, responsible for managing a

diversified public asset portfolio. This paper examines one of the critical financial challenges

in Croatia: managing public sector assets efficiently. It attempts to facilitate better

27
understanding of public asset management as an integral part of public sector reforms (ECA,

2003).

The lack of reliable information on public assets in place hinders determination of

the assets’ value, budgeting for asset management activities and evaluating public asset

portfolio performance. As a result, assets are managed on an ad-hoc, often reactive basis.

Starting from the concept that public authorities have to be fully accountable to the public, we

propose the preconditions necessary for commencing proper public asset management

practice in Croatia. Our model might help other countries that are also faced with public asset

management inefficiency as regarding Economic Commission in Africa, (ECA, 2003).

Since the 1980s, many developed and developing countries have been embarking on

public sector management reforms. The main reasons for commencing public sector reforms

were public sector inefficiency and ineffectiveness (ECA, 2003). Government has been

constantly under pressure to improve public services quality while containing costs and

enhancing public accountability at the same time (Barret, 2004). Several countries, such as

New Zealand, Australia, the UK, undertook significant public sector changes to break from

the traditional bureaucratic model of public administration (Hood, 1991).

Governments have started to: constrain public spending sell off public assets’;

outsource many services that were previously provided exclusively by the public sector to

private companies, develop public asset performance measurement, output and outcome-

based budgeting and business-type accounting (Guthrie et al., 1999). Overall, those reforms,

widely recognized under the concepts New Public Management (NPM) and New Public

Financial Management (NPFM), were directed at improving efficiency, effectiveness and

accountability in the public sector. Encouraging efficient public sector management has

become one of the prevailing issues in international literature and public sector practice

(Klausen, 1997; Wise, 2002).

28
 Public sector accounting is an umbrella term which, depending on the particular

country context, refers to various accounting systems used by numerous public sector entities

– general (central and local) government-as-a-whole, government accounting units (i.e.

departments, agencies, ministries, institutes), and government business enterprises (GBEs)

that are referred to as state owned enterprises (SOEs) in this paper. Two broad sets of

accounting standards are applicable to public sectors worldwide, depending on the nature of

the accounting entity – the International Financial Reporting Standards (IFRSs) and the

International Public Sector Accounting Standards (IPSASs). The SOEs, whose establishment

and operations are very similar to those of companies in the private sector, are required to

apply full accrual accounting methods under the IFRSs, while all other public (mostly non-

profit) entities have been encouraged to apply the IPSASs.

Generally, government sector entities have traditionally used cash basis accounting.

International Public Sector Accounting Standards Board (IPSASB) launched its Standards

Programs in 1996, focusing on full accrual accounting but also addressing the needs of

constituents reporting on a cash basis. As a result, the ISPASB has so far issued 26 accrual

basis IPSASs, to be applied to all public sector entities other than government business

enterprises.

The importance of public sector financial management reform implications on fiscal

consumption is well articulated by Ball et al. (1999). Their study refers to encouraging

efficient control over public resources and expenses and to strengthening the level of

accountability for managing public resources proactively. Tanzi and Prakash (2000) argue

that the habit of relating efficiency to public spending, as is generally done, may give

inaccurate results when, as is often the case, public institutions use public assets (land,

buildings, etc.) without imputing the cost for their use. Accrual financial reporting has been

dominant amongst the countries involved in public sector management reforms (Hood, 1995;

Christensen, 2002).
29
 Lüder and Jones (2003) focus explicitly on governmental accounting reforms in

several European countries and the European Commission. They pointed out that public

sector accounting reform consists of introducing accrual accounting to governmental

organizations. In the last three decades international literature has been mostly focused on

investigating the efficiency of the public sector in developed countries, mainly in the context

of public revenue and expenditure planning and realization related to either accrual or cash

basis financial reporting. The adoption of cash basis accounting in Croatian general

government in 1993 was in line with the practice of Continental European countries that

mainly emphasized money management, budgetary and payment control (Vašiček et al.,

2008).

The choice and mandatory aspects of cash basis application was based upon the fact

that all information in financial statements should serve primarily as a qualitative basis for

budget execution and liquidity control. Planning and control of public expenditure outcomes

were by and large neglected. A modified accrual accounting model was introduced in Croatia

in 2001 as a gradual transition to full accrual accounting adoption and accrual based IPSASs

application in the public sector. Full accrual accounting implementation would therefore

represent further adjustment of the Croatian governmental accounting system to the main

international accounting system reform trends, because it would enable accounting for all the

assets in the public sector (ECA, 2003).

2.9 Public asset management objectives

Apart from SOEs, that have always been required to prepare records to conform to

accrual-based accounting standards, management and control processes in the public sector

have differed from the corresponding processes in the business sector. Unlike the private

sector, public sector management practice has been mainly directed towards: establishing a

legislative, institutional and control framework controlling the market formed by

30
national boundaries and running foreign and domestic affairs managing the entirety of tax

revenues collected and redirecting these revenues to public consumption, public debt

repayment and public investments preserving the national heritage for future generations and

accomplishing strategic goals while protecting national interests providing public goods and

services and assuring public need fulfilment.

A modern government in a democratic country is representative, meaning that some

public officials are engaged in public-decision making for the collective benefit, with clear

responsibility and accountability for their actions to the public (Ranson and Stewart, 1989).

Even though public asset management is usually not articulated as a direct task of public

representatives, it indirectly relates to the pursuit of many government functions, such as

public goods and services provision, heritage preservation, strategic goal achievement and the

daily operational tasks of public representatives. Since the early 1990s, management and

control in governmental organizations have become more similar to management and control

in business organizations. Regardless of the manner in which governments have evolved,

public sector structures, responsibilities and reporting requirements have been subject to

major processes of change.

2.10 Public asset management in Croatia – Regulation and Practice

According to Grubisic (2009), public sector management reform implies: that some

of the numerous Croatian resources are listed and assigned to certain public asset categories;

some exist in books as non-cash generating assets, while the documentation for certain public

assets is stuck somewhere between the land registries, or it is partly kept by their owners,

users or managers. Despite the fact that there have been some attempts to record public

assets, a complete and centralized registry of public assets on a state level still does not exist.

The incompleteness of records of public assets partly results from the inherited disorder in

land registries. The disorder in the records is also a consequence of inconsistent legislation

31
which has allowed rights but has rarely imposed the obligations related to the disposal of

specific assets on the various beneficiaries. After Croatian independence was declared in

1991, the planned economy was changed to a market-driven one, which caused most laws to

change.

1. The Government became the nominated owner of many SOEs that were previously

“socially owned.

2. In order to accelerate the process of market restructuring, a specialized institution – the

Croatian Privatization Fund was established.

3. It ran the process of ownership transformation, book value appraisal and privatization of

the SOEs according to the Transformation Act and the Privatization Act.

4. The Privatization Act actually split the prevailing State’s stakes in the SOEs from the

stakes that the Croatian Privatization Fund and some other public institutions acquired

through the process of transformation of ownership of SOEs.

Once the ownership of SOEs was transformed, the Croatian Privatization Fund and

some other public institutions (the so-called “special government entities”) became the

formal owners of SOEs, with the soundly determined aim of fully privatizing “their” stakes in

SOEs. The leading role in the privatization process of SOEs, however, was entrusted to the

Croatian Privatization Fund. The management board of the Croatian Privatization Fund was

firstly elected by the Croatian Parliament that was also to control its work (Martin, 2008).

2.11 Institutionalization and Professionalism in Public Asset Management

The practical solutions for establishing public asset management differ from country to

country. Basically there has been a worldwide trend of establishing special institutions

entitled to manage public assets. They are mostly in state or central or municipal government

ownership and the degree of their accountability to top-level public management structures

32
and the public differs as a result of cultural and historical backgrounds. For example, the

Government Businesses Advice Branch in Australia was founded as a part of the Shareholder

and Asset Sales Division of The Assets Management Group within the Australian

Department of Finance and Administration (Martin, 2008). The Government Businesses

Advice Branch oversees and manages the Government’s shareholdings in public institutions,

and advises on the appointment and remuneration of public institutions’ Boards and chief

executive officers. The Asset Management Group’s goals are to manage the Australian

Government’s Business and non-Defense property, to implement and manage the sale or

divestment of such assets and to perform insurance and risk management operations within

the Finance portfolio.

Ten (10) Cost benefits and risk management practice have been introduced into public

assets’ management, while striving to achieve greater accountability and transparency

towards the public. Risk management was introduced into the New Zealand public sector in

1988, when the Government of New Zealand established the New Zealand Debt Management

Office in order to improve risk management associated with management of the government's

debt portfolio (Martin, 2008).

Besides being responsible for controlling the government's debt and overall net cash

flows, it is also responsible for an array of assets of national interest. New Zealand’s

experience serves as proof that a public sector asset information system should not only refer

to the asset recognition process but also to asset management activities. In addition, The New

Zealand Treasury has contributed much to the existing literature by publishing several studies

on financial management, asset valuation and costing (Martin, 2008). These studies present

recommendations for encouraging efficiency in long term asset and cost management. In

China, State-owned Assets Supervision and Administration Commission of the State Council

was set up to guide and push forward the reform and restructuring of SOEs, supervise the

preservation and value increments of state-owned assets in enterprises under its supervision,
33
enhance state-owned asset management and propel the strategic adjustment of the economic

sectors (Martin, 2008). Drawing on the model of Singapore's Temasek Holdings - a state-

owned investment company runs by professionals, China established its major USD 200

billion sovereign wealth fund run by the China Investment Corporation in 2007 (Martin,

2008). Many developed and developing countries have been establishing their own sovereign

wealth funds as a way of maintaining and increasing certain public assets’ value, such as non-

renewable resources (Martin, 2008).

CHAPTER THREE: RESEARCH METHODOLOGY

3.0 Introduction

Chapter three will be concerned with the research methodology of the study. It will

cover the research method, research design, and population of the study, sample-size and

sampling techniques as well as the research instruments for data collection, data collection

procedures, and the process of data analysis.

3.1 Research Method

Accordingly to Williams (2007), states that research method is the process of

collecting, analyzing, and interpreting data in order to understand a phenomenon. For the

purpose of this research, the researcher will use a Qualitative Research Method. Denzin and

Lincoln (2000) claim that qualitative research involves an interpretive and naturalistic

approach: “This means that qualitative researchers study things in their natural settings,

attempting to make sense of, or to interpret, phenomena in terms of the meanings people

bring to them”. Qualitative studies are more subjective, text-based and requiring in- depth

information on few cases. This method is not only about “what” people think but also “why”

they think so.

34
3.2 Research Design

Kothari (2004), states that research design is a plan, a roadmap and blueprint strategy
of investigation conceived so as to obtain answers to research questions. (Kothari, 2004)
further
said, it constitutes the collection, Measurement, and analysis of data. Considering the purpose
Of this study, the researcher will employ an Exploratory Research Design. Pamela and
Marilynn, (1998) Preview, the purpose of an exploratory design is to study that which has not
been previously studied. The exploratory researcher is looking for new knowledge, new
insights, new understanding and new meaning as well.
3.3 Population of the Study

According to Lavrakas (2008), a target population for a survey is the entire set of

units for which the survey data was used to make inferences. He further emphasized that a

target population defines those units for which the findings of the survey are meant to

generalize. Establishing study objectives is the first step in designing a survey. Defining the

target population should be the second step. Lavrakas (2008), also argued that Target

population must be specifically defined, as the definition determines whether sample cases

are eligible or ineligible for the survey. For this research purpose, the researcher will consider

the 254 employees at the GSA Operations’ Department as population of the study. The

population of the study will comprise of women and men who are assigned at the department.

As such, the researcher purposively selected these employees as participants.

3.4 Sample Size and Sampling Techniques

A sample size is a subset of a population that was selected to participate in the study,

it is a fraction of the whole that was considered to take part in the research project, (Polit &

Hungler, 2000). But for the purpose of this study, the researcher will use a Purposive

sampling techniques. Purposive sampling also known as judgmental, selective, or subjective

sampling, is a form of non-probability sampling in which researchers rely on their own

35
judgment when choosing members of the population to participate in their surveys. Purposive

sampling does not attempt to select a random sample from the population of interest. Rather,

subjective methods are used (Lavrakas 2008).

Considering snow boy which is a part of purposive sampling technique, the researcher

will consider only those with the knowledge and willing to contribute meaningfully to the

study. Predicated on that, the researcher will consider 10 participants of the research

population of 254 employees of the agency’s Operations Department as the sample size. The

10 participants that will be allotted will come from the Bureau of Assets Management which

is within the Department of Operations at the agency.

3.5 Research Instruments

According to Wilkinson - 2003, Clear, accessible and practical, this guide introduces
the first- time researcher to the various instruments used in social research. It assesses a broad
range of research instruments-from the well-established to the innovative- enabling readers to
decide which are particularly well suited to their research. But for the purpose of this study
which is qualitative method approach, the qualitative researchers, collect data themselves
through examining documents, observing behavior, and interviewing participants. Based on
that, the researcher will develop an open ended interview questions as instruments to collect
the necessary information.
3.6 Data Collection Procedures

The study will use primary and secondary data. Primary data, which refers to the

information that the researcher will obtain from the field. The data will be obtained by use of

the interview questions and face to face approach. The interview questions will be self-

administered to some respondents while for others, the researcher will administer them on his

own. Primary data will be collected using semi-structured questions. While Secondary data

will be collected from reports, articles and actors in the area of the challenges of asset

management in the public sector.

36
3.7 Data Analysis Procedures

A data analysis procedure is the process of scrutinizing, cleaning, transforming, and

displaying data with the goal of discovering useful information, suggesting conclusions, and

supporting decision-making, pointed by (Grimes, 2003). The data that will be collected for

this study will be organized, broken into manageable units, analyzed, and constructed into

tables with primary emphasis on biographical information such as gender, educational status,

employment status, availability of employment opportunities, adequacy of trainings, etc. to

form the basis of the breakdown of data and subsequent analysis. The researcher will review

the data immediately as collected. The data will be coded and intensively analyzed looking

for themes and patterns and subsequently discussed using simple Excel spread sheet.

3.8 Ethical Consideration

The ethical consideration is in line with the moral principles guiding the research

work, from the inception, completion and to publication of the work. Considering that, the

researcher will ensure that the study obtains a valid consent form on every person from whom

the data will be gathered. The researcher will also obtain a formal communication from the

Department of MBA/MPA to be presented to the Director General of the General Services

Agency office. Based upon approval, the researcher will then proceed and meet with the

participants of the study and then discuss the significance of the research.

37
 CHAPTER FOUR

DATA INTEPRETATION, PRESENTATION AND ANALYSIS

4.0 Introduction

38
 This chapter presents the interpretation, the presentation, and the analysis of primary data

collected from the field from respondents on the Challenges of Assets Management at the

General Services Agency (GSA).

4.1 Data Interpretations

Table 4.1: Respondents responsiveness rate

Response Frequency Percentage %

Staff Responded 8 80

Not Responded 2 20

Total 10 100%

Source: Researcher Field Work Data (2021)

The population of this study is 254 which comprises of staffs of the General Services

Agency. As indicated by table 4.1, 10 respondents were randomly selected. 8 out of the 10

respondents which constitute 80% are staffs of GSA who responded to the open ended

interview questions while the other 2 respondents which represents 20% are staffs who did

not respond to the interview questions. The 10 interview questions that were issued to staffs

were partially filled and returned by the respondents. This translates to staff response rate of

80%

Table 4. 2: Gender of the respondents

Response Frequency Percentage

Male Female Total

Staff 6 2 8 80

39
Non responsive staff 1 1 2 20

Total 7 3 10 100%

Source: Researcher Field Data (2021)

Table 4.2 seeks to determine the gender balance and disparity between the respondents. The

findings obtained indicate that staffs who responded to the interview questions constitute

80% (8) of the respondents. 6 out of the 8 respondents from GSA are males who do most of

the monitoring of government assets in various line ministries and agencies while 2 (20%) of

the respondents are females who also work in the Asset Management Bureau. 20% (2) of the

respondents represents staffs of GSA who did not response to the open ended interview

questions. 1 out of the 2 respondents was female while the other one respondent was male.

This implies that both male and female were involved in the participation of monitoring of

government assets in various line ministries and Agencies. But on the average, more males

were involved in the monitoring process than the females.

Table 4.3: Age Range of the respondents

Age Range Frequency Total Percentage
%
Male Female
18-25 0 0 0 0
26-35 3 2 5 63
36-45 2 0 2 25
46-54 1 0 1 12
Total 6 2 8 100%
Source: Researcher Field Data (2021)

Table 4.3 indicates the ages of the respondents who presided over the monitoring of fixed

assets in various government line ministries and agencies. As indicated in table 3, the highest

numbers of respondents which consist of 63% (5) falls in the range of 26-35 years follow by

25% (2) which falls in the range of 36-45 years as well. 12% (1) of the respondents falls in

the range of 45-54. This implies that the majority of the respondents from the General

Services Agency that were either charged with the responsibility of monitoring of

government assets in various line ministries and agencies were above the age of 25 and were

40
therefore fully able to make well and informed decisions as well as provided valid and

accurate information with regards to the study topic.

Table 4.4: Educational level of the respondents

Age Range Frequency Total Percentage

Male Female %

College student 1 1 2 25

Bachelor 2 0 2 25

Master 0 0 0 0

Professional 2 2 4 50

Certificate

Total 5 3 8 100

Source: Researcher Field Data (2021)

As indicated by table 4.4 shown above, 25% (2) of the respondents had an

undergraduate/bachelor degree of which all 2 were males and constitute 25%. 2 of the

respondents were undergraduate students which represents 25% while the other 4 respondents

from the GSA which constitutes 50% has professional certificates. None of the respondents

was master graduate which constitutes 0%. This shows that majority of the respondents that

monitored the usage of government assets in the various line ministries and agencies are

staffs with professional certificates followed by bachelor degree holder and are

knowledgeable with respect to the research topic under discussion as well as the factors that

hamper them in the discharged of their functions.

Table 4.5: Position of Respondents

Position Frequency Total Percentage
%
Male Female
41
Asset Monitors 5 2 7 87

Director 1 0 1 13

Total 6 2 8 100%

Source: Researcher Field Work Data (2021)

Table 4.5 seeks to determine the position held by each respondent. It signifies that each of the

respondents had knowledge of the entity policy and regulation with respect to the processes

and procedures of properly monitoring and putting in place a system of control at various line

ministries and agencies to monitor government assets. The results found show that 87% (7) of

the respondents was Assets Monitors, while 13% (1) of the respondents was the director of

the Assets Management Bureau. This indicates that the respondents were all knowledgeable

and well informed about the operations of the Bureau with regards to the strategies employed

to carry out their monitoring process.

Table 4.6: Marital Status of the Respondents

Frequency Total Percentage

Male Female %

Single 3 2 5 63

Married 3 0 3 37

Total 6 2 8 100

Source: Researcher Field Data (2021)

Table 4.6 provides information with regards to the number of respondents that are married,

singled, divorced and widowed. As indicated in table 4.6, five (5) of the respondents were

single which constitutes 63%. 3 Out of the 5 respondents were males and two (2) of the

respondents were females. 3 out of the 8 respondents were married and constitutes 37%. This

implies that majority of the respondents that responded to the interview questions were single

people who fall between the ages 26-35 years.

42
Table 4.7: Duration of the Respondents with the entity
Frequency Total Percentage

Male Female %

1 year 0 0 0 0

2-5 years 1 1 2 25

6-10 years 3 1 4 50

11-15 years 2 0 2 25

Total 6 2 8 100

Source: Researcher Field Data (2021)

Table 4.7 provides information on the number of years each respondent had made at the

General Services Agency. As indicated in table 4.6, two (2) of the respondents had spent

between 2-5years at the GSA which constitutes 25%. 1 Out of the 2 respondents was male

and the other (1) was female. 4 out of the 8 respondents spent between 6-10 years at the

entity which constitutes 50%. This implies that majority of the respondents had sufficient

experience in the position, and that they understand the entity policy and procedures on the

monitoring of assets at the GSA.

Table 4.8: The challenges of implementation of assets management at GSA

The challenges Response Frequency Percentage %
of

43
implementation Male Female Total
of assets
Lacks of logistical 4 2 6 75
management supplies(technology)
lacks of cooperation 2 1 25
at GSA from management of
line ministries and
agencies, low salary and
incentives of Assets
Monitors, and Selling of
GOL assets illegally by
line ministries and
agencies
Total 6 2 8 100%

Source: Researcher Field Data (2021)

Table 4.8 highlights the responses of the respondents on the challenges of the implementation

of assets management at GSA. Out of the total of 8 respondents that responded to the

interview questions working at the general services agency (GSA) as asset monitors, 75% (6)

of the responded stated: “the lacks of technology and logistical supplies such as laptops,

vehicles, printers and etc., hampers the operations of assets monitors to efficiently and

effectively monitor GOL assets on the field (in various line ministries & agencies)”.

Technology and logistics has been the important platform upon which assets monitors have

an accurate inventory of assets which allows for quick response of repair, replace and

financially account for loss and recovery to channel awareness and effectively implement

GOL policy and regulations. However, it is arguable to conclude that technology and

logistics is the bedrock of successfully monitoring GOL assets. Out of the 6 respondents 4

were males while 2 of the respondents were females. 25% (2) of the respondent’s responses

were the “lacks of cooperation from management of line ministries and agencies, low salary

and incentives, and Selling of GOL assets also hampers the operation of assets monitors”.

This implies that the majority of the respondents on the average were males whose responses

were the lacks of logistical supplies hampers the performance of asset monitors.

Table 4.9: The effects assets management has on institutional mandate at GSA

44
 Response Frequency Percentage %

Male Female Total

Lacks of proper assets 4 1 5 67

inventory and codding can
lead to GOL loosing
valuable assets.

Served as guidance 1 0 1 13

Manage GOL assets and 1 1 2 25

equipment
Total 6 2 8 100%

Source: Researcher Field Data (2021)

Table 4.9 depicts responses of the respondents on the effects/impact assets management has

on institutional mandate at GSA. 5 out of the 8 respondents which constitute 67% said that

“the Lacks of proper assets inventory and codding can lead to GOL loosing valuable assets”.

Asset inventory or inventory management and coding is undoubtedly the bedrock to any

business or institution because it help enables successful control of cost and operation as well

as locate an asset quickly and increase it overall ROI .However, it is debatable to conclude

that the inventory and coding of assets has successfully enable assets monitors to identify,

track and know the history of these assets using technology in the various line ministries and

agency. Of the 5 respondents, 4 were males which represents 54% while 1 of the respondents

was female and constitutes 13%. 25% (2) of the respondents say that “asset management

helps to Manage GOL assets and equipment” while one respondent which constitute 13%

said that “it serves as guidance”. This implies that, most of the respondents who were males

on the average admitted that asset management has a significant effect on institutional

mandate and enable asset monitors to efficiently and effectively ensure that GOL assets are

coded and the various line ministries and agencies are in compliance with regulations.

Table 4. 10: Public Asset Registry carried out at General Services Agency

45
Public Asset Response Frequency Percentage
%
Registry

carried out at Through announced Male Female Total

inventory or physical
General verification of GOL 3 1 4 50
assets
Services Assets class, coding 2 1 3 38
and assigning
Agency monitors 1 0 1 12

Total 6 2 8 100%

Source: Researcher Field Data (2021)

Table 4.10 shows the responses of the respondents on how Public Asset Registry is carried

out at the General Services Agency. Out of the total of 8 respondents that were interviewed,

50% (4) of the respondent’s responses were that “Public Asset Registry at General Services

Agency was carried out through an announced inventory or physical verification of GOL

assets”. It can be concluded that regardless of the degree and practical usage of public assets,

Public Assets Registry drives accurate database of all public assets and the inclusion of all

line ministries and agencies assets in the state ledger at GSA. The assets register enable assets

monitors/GSA knows the status, procurement date, location, price, depreciation and current

value of each asset. 38% (3) of the respondent’s responses were that Public Assets Registry is

carried out by first identifying the assets class through physical verification, then coding of

the assets & assigning the assets to a particular individual within a department or section of

an institution. Physical verification is crucial to the success of any organization. It enable you

avoid risk of lost sales due. Out of the 3 respondents, 2 were males while 1 of the respondents

was a female. 12% (1) of the respondent response was that Public Asset Registry at General

Services Agency is carried out “through the assets monitors”. This indicates that the majority

of the respondents on the average were males whose responses were that Public Assets

Registry at General Services Agency was carried out by assets monitors by firstly identifying

46
the assets, then coding the assets and assigning it to a particular person in a department or

section within an institution.

Table 4.11: Assets Classification at GSA

Assets Response Frequency Percentage %
Classification
at GSA
Male Female Total

Asset Coding 2 1 3 38

Asset class, code, 4 1 5 62

number, and name

Total 6 2 8 100%

Source: Researcher Field Data (2021)

The International financial reporting standard (IFRS) framework defines an asset as a

resource controlled by the enterprise as a result of past transaction and from which future

benefits are expected to flow to the enterprise. As a result, it is important to note that

classifying assets is important to government as it organize assets into general group. Table

4.11 highlights the responses of the respondents on Assets classification at the GSA. Out of

the total of 8 respondents that responded to the open ended interviewed questions at the

general services agency, it was observed that 38% (3) of the respondents responses were that

“Assets were classified according to the asset coding assigned by the asset monitors at the

GSA” while 62% (5) of the respondents responses were that “asset classification was done

through asset class, code, number, and name of the assets”. Out of the 5 respondents 4 were

males which constitute 50% while 1 of the respondents was female. This implies that the

majority of the respondents on the average were males whose responses were that the

classification of assets at GSA was done through asset class, coding the asset, numbering and

naming of the asset by asset monitors.

47
Table 4.12: Assets Management improves efficiency and effectiveness of the Agency’s
Activities
Response Frequency Percentag
e%

Male Female Total

Managing GOL Assets on a daily 3 1 4 50

basis
Base on report of Asset coding, 1 1 13
inventory and monitoring of assets
keep up to date registry of the various 1 1 2 25
institutions assets during transitional
period
By monitoring and informing the 1 1 12
various ministries and agencies about
GSA mandate and supporting the
assets monitors
Total 6 2 8 100%

Source: Researcher Field Data (2021)

Table 4.12 depicts the responses of the respondents on how Assets Management improves the

efficiency and effectiveness of the Agency’s Activities. Out of the total of 8 respondents that

responded to the open ended interviewed questions, it was observed that 50% (4) of the

respondent’s responses were that Assets Management improves the efficiency and

effectiveness of the Agency’s Activities through Managing GOL Assets on a daily basis. Out

of the 4 respondents 3 were males which constitute 37% while 1 of the respondents was

female. 13% (1) of the respondents’ response was based on report of asset coding, inventory

and monitoring of assets. 25% (2) of the respondents’ responses were through keeping up to

date registry of the various institutions assets during transitional period. 13% (1) of the

respondents’ response was by monitoring and informing the various ministries and agencies

about GSA mandate and supporting the assets monitors. This implies that the majority of the

respondents responses were Managing GOL Assets on a daily basis were key factors that

influence how Assets Management improves the efficiency and effectiveness of the Agency’s

Activities.

48
Table 4.13: The Management of Asset affects the vision and mission of the Agency
Response Frequency Percentage %

Male Female Total

Knowing the total 2 2 4 50

Assets, coding and
monitoring them
It brightens the 1 1 13
operations of assets
management
lack of logistics and 2 2 25
manpower to cover the
various GOL institutions
Reduces equipment 1 1 12
failure and extends the
life of equipment
Total 6 2 8 100%

Source: Researcher Field Data (2021)

Table 4.13 highlights the responses of the respondents on how the Management of Asset

affects the vision and mission of the Agency. Out of the total of 8 respondents that responded

to the open ended interviewed questions, 50% (4) of the respondent’s responses were that

knowing the total Assets as well as coding and monitoring the assets affect the vision and

mission of the Agency. Out of the 4 respondents 2 were males and 2 were females which

constitutes 25% respectively. 25% (2) of the respondent’s responses were that the lack of

logistics and manpower to cover the various GOL institutions affects the vision and mission

of the Agency while one (1) respondent response was that it brightens the operations and

reduces equipment failure and extends the life of equipment respectively affects the vision

and mission of the Agency. This implies that the majority of the respondents were both males

and females whose responses were that knowing the total Assets as well as coding and

monitoring the assets affect the vision and mission of the Agency.

49
Table 4.14: Some assets of GOL
Assets of GOL Response Frequency Percentage %

Male Female Total

Computers, printers, 6 2 8 38
generators, desk, chairs,
furniture, equipment,
projectors and buildings.
Total 6 2 8 100%

Source: Researcher Field Data (2021)

Table 4.14 highlights the responses of the respondents on some Assets of government. Out of

the total of 8 respondents that responded to the open ended interviewed questions, it was

observed that 100% (8) of the respondents’ responses were that some assets of government

include but are not limited to the following: Computers, printers, generators, desk, chairs,

furniture, equipment, buildings, and projectors. This implies that the majority of the

respondents on the average were both males and females whose responses were that some of

the assets of government were computers, printers, generators, desk, chairs, furniture,

equipment, buildings, and projector.

4.2 Data Presentations

As indicated by table 4.1, 10 respondents were randomly selected. 8 out of the 10 respondents

which constitute 80% are staffs of GSA who responded to the open ended interview questions

while the other 2 respondents which represent 20% are staffs who did not respond to the

interview questions. The 10 interview questions that were issued to staffs were partially filled

and returned by the respondents. This translates to staff response rate of 80%.

Table 4.2 seeks to determine the gender balance and disparity between the respondents. The

findings obtained indicate that staffs who responded to the interview questions constitute

50
80% (8) of the respondents. 6 out of the 8 respondents from GSA are males who do most of

the monitoring of government assets in various line ministries and agencies while 2 (20%) of

the respondents are females who also work in the Asset Management Bureau. 20% (2) of the

respondents represents staffs of GSA who did not response to the open ended interview

questions. 1 out of the 2 respondents was female while the other one respondent was male.

This implies that both male and female were involved in the participation of monitoring of

government assets in various line ministries and Agencies. But on the average, more males

were involved in the monitoring process than the females.

Table 4.3 indicates the ages of the respondents who presided over the monitoring of fixed

assets in various government line ministries and agencies. As indicated in table 3, the highest

numbers of respondents which consist of 63% (5) falls in the range of 26-35 years follow by

25% (2) which falls in the range of 36-45 years as well. 12% (1) of the respondents falls in

the range of 45-54. This implies that the majority of the respondents from the General

Services Agency that were either charged with the responsibility of monitoring of

government assets in various line ministries and agencies were above the age of 25 and were

therefore fully able to make well and informed decisions as well as provided valid and

accurate information with regards to the study topic.

As indicated by table 4.4 shown above, 25% (2) of the respondents had an

undergraduate/bachelor degree of which all 2 were males and constitute 25%. 2 of the

respondents were undergraduate students which represents 25% while the other 4 respondents

from the GSA which constitutes 50% has professional certificates. None of the respondents

was master graduate which constitutes 0%. This shows that majority of the respondents that

monitored the usage of government assets in the various line ministries and agencies are

staffs with professional certificates followed by bachelor degree holder and are

knowledgeable with respect to the research topic under discussion as well as the factors that

hamper them in the discharged of their functions.

51
Table 4.5 seeks to determine the position held by each respondent. It signifies that each of the

respondents had knowledge of the entity policy and regulation with respect to the processes

and procedures of properly monitoring and putting in place a system of control at various line

ministries and agencies to monitor government assets. The results found show that 87% (7) of

the respondents was Assets Monitors, while 13% (1) of the respondents was the director of

the Assets Management Bureau. This indicates that the respondents were all knowledgeable

and well informed about the operations of the Bureau with regards to the strategies employed

to carry out their monitoring process.

Table 4.6 provides information with regards to the number of respondents that are married,

singled, divorced and widowed. As indicated in table 4.6, five (5) of the respondents were

single which constitutes 63%. 3 Out of the 5 respondents were males and two (2) of the

respondents were females. 3 out of the 8 respondents were married and constitutes 37%. This

implies that majority of the respondents that responded to the interview questions were single

people who fall between the ages 26-35 years.

Table 4.7 provides information on the number of years each respondent had made at the

General Services Agency. As indicated in table 4.6, two (2) of the respondents had spent

between 2-5years at the GSA which constitutes 25%. 1 Out of the 2 respondents was male

and the other (1) was female. 4 out of the 8 respondents spent between 6-10 years at the

entity which constitutes 50%. This implies that majority of the respondents had sufficient

experience in the position, and that they understand the entity policy and procedures on the

monitoring of assets at the GSA.

Table 4.8 highlights the responses of the respondents on the challenges of the implementation

of assets management at GSA. Out of the total of 8 respondents that responded to the

interview questions working at the general services agency (GSA) as asset monitors, 75% (6)

of the responded stated: “the lacks of technology and logistical supplies such as laptops,

52
vehicles, printers and etc., hampers the operations of assets monitors to efficiently and

effectively monitor GOL assets on the field (in various line ministries & agencies)”.

Technology and logistics has been the important platform upon which assets monitors have

an accurate inventory of assets which allows for quick response of repair, replace and

financially account for loss and recovery to channel awareness and effectively implement

GOL policy and regulations. However, it is arguable to conclude that technology and

logistics is the bedrock of successfully monitoring GOL assets. Out of the 6 respondents 4

were males while 2 of the respondents were females. 25% (2) of the respondent’s responses

were the “lacks of cooperation from management of line ministries and agencies, low salary

and incentives, and Selling of GOL assets also hampers the operation of assets monitors”.

This implies that the majority of the respondents on the average were males whose responses

were the lacks of logistical supplies hampers the performance of asset monitors.

Table 4.9 depicts responses of the respondents on the effects/impact assets

management has on institutional mandate at GSA. 5 out of the 8 respondents which constitute

67% said that “the Lacks of proper assets inventory and codding can lead to GOL loosing

valuable assets”. Asset inventory or inventory management and coding is undoubtedly the

bedrock to any business or institution because it help enables successful control of cost and

operation as well as locate an asset quickly and increase it overall ROI .However, it is

debatable to conclude that the inventory and coding of assets has successfully enable assets

monitors to identify, track and know the history of these assets using technology in the

various line ministries and agency. Of the 5 respondents, 4 were males which represent 54%

while 1 of the respondent was female and constitutes 13%. 25% (2) of the respondents say

“that asset management helps to Manage GOL assets and equipment” while one respondent

which constitute 13% said that “it serves as guidance”. This implies that, most of the

respondents who were males on the average admitted that asset management has a significant

effect on institutional mandate and enables asset monitors to efficiently and effectively ensure

53
that GOL assets are coded and the various line ministries and agencies are in compliance with

regulations.

Table 4.10 shows the responses of the respondents on how Public Asset Registry is carried

out at the General Services Agency. Out of the total of 8 respondents that were interviewed,

50% (4) of the respondent’s responses were that Public Asset Registry at General Services

Agency was carried out through an announced inventory or physical verification of GOL

assets. It can be concluded that regardless of the degree and practical usage of public assets,

Public Assets Registry drives accurate database of all public assets and the inclusion of all

line ministries and agencies assets in the state ledger at GSA. The assets register enable assets

monitors/GSA knows the status, procurement date, location, price, depreciation and current

value of each asset. 38% (3) of the respondent’s responses were that Public Assets Registry

is carried out by first identifying the assets class through physical verification, then coding of

the assets & assigning the assets to a particular individual within a department or section of

an institution. Physical verification is crucial to the success of any organization. It enable you

avoid risk of lost sales due. Out of the 3 respondents, 2 were males while 1 of the respondents

was a female. 12% (1) of the respondent’s response was that Public Asset Registry at General

Services Agency is carried out through the assets monitors. This indicates that the majority of

the respondents on the average were males whose responses were that Public Assets Registry

at General Services Agency was carried out by assets monitors by firstly identifying the

assets, then coding the assets and assigning it to a particular person in a department or section

within an institution.

The International financial reporting standard (IFRS) framework defines an asset as a

resource controlled by the enterprise as a result of past transaction and from which future

benefits are expected to flow to the enterprise. As a result, it is important to note that

54
classifying assets is important to government as it organize assets into general group. Table

4.11 highlights the responses of the respondents on Assets classification at the GSA. Out of

the total of 8 respondents that responded to the open ended interviewed questions, it was

observed that 38% (3) of the respondents responses were that Assets were classified

according to the asset coding assigned by the asset monitors at the GSA while 62% (5) of the

respondents responses were that asset classification was done through asset class, code,

number, and name of the assets. Out of the 5 respondents 4 were males which constitute 50%

while 1 of the respondents was female. This implies that the majority of the respondents on

the average were males whose responses were that the classification of assets at GSA was

done through asset class, coding the asset, numbering and naming of the asset by asset

monitors.

Table 4.12 depicts the responses of the respondents on how Assets Management improves the

efficiency and effectiveness of the Agency’s Activities. Out of the total of 8 respondents that

responded to the open ended interviewed questions, it was observed that 50% (4) of the

respondent’s responses were that Assets Management improves the efficiency and

effectiveness of the Agency’s Activities through Managing GOL Assets on a daily basis. Out

of the 4 respondents 3 were males which constitute 37% while 1 of the respondents was

female. 13% (1) of the respondents’ response was based on report of asset coding, inventory

and monitoring of assets. 25% (2) of the respondents’ responses were through keeping up to

date registry of the various institutions assets during transitional period. 13% (1) of the

respondents’ response was by monitoring and informing the various ministries and agencies

about GSA mandate and supporting the assets monitors. This implies that the majority of the

respondents responses were Managing GOL Assets on a daily basis were key factors that

influence how Assets Management improves the efficiency and effectiveness of the Agency’s

Activities.

55
Table 4.13 highlights the responses of the respondents on how the Management of Asset

affects the vision and mission of the Agency. Out of the total of 8 respondents that responded

to the open ended interviewed questions, 50% (4) of the respondent’s responses were that

knowing the total Assets as well as coding and monitoring the assets affect the vision and

mission of the Agency. Out of the 4 respondents 2 were males and 2 were females which

constitutes 25% respectively. 25% (2) of the respondent’s responses were that the lack of

logistics and manpower to cover the various GOL institutions affects the vision and mission

of the Agency while one (1) respondent response was that it brightens the operations and

reduces equipment failure and extends the life of equipment respectively affects the vision

and mission of the Agency. This implies that the majority of the respondents were both males

and females whose responses were that knowing the total Assets as well as coding and

monitoring the assets affect the vision and mission of the Agency.

Table 4.14 highlights the responses of the respondents on some Assets of government. Out of

the total of 8 respondents that responded to the open ended interviewed questions, it was

observed that 100% (8) of the respondents’ responses were that some assets of government

include but are not limited to the following: Computers, printers, generators, desk, chairs,

furniture, equipment, buildings, and projectors. This implies that the majority of the

respondents on the average were both males and females whose responses were that some of

the assets of government were computers, printers, generators, desk, chairs, furniture,

equipment, buildings, and projector.

4.3 Data Analysis

The study sought to determine the Challenges of the implementation of Assets

Management at the General Services Agency (GSA). It was determined that asset monitors

have been faced with challenges of efficiency and effectiveness of monitoring Government

56
assets in various line ministries and Agencies. The researcher cross examined the information

provided by staffs of the General Services Agency to ensure whether there was similarity and

difference in the findings. The findings gather from staff show a positive relationship with

respect to their similarity. The findings also show that the respondents’ responses were that

Lack of logistical supplies such as the use of technology and transport Equipment to

efficiently and effectively performed their task, the lacks of cooperation from management of

line ministries and agencies, assets classification, low salary, and incentives affect the

performance of the implementation of Assets Management at the General Services Agency

(GSA).

According to Novic and Nair ( 2013) identified that today, technology is a key

component of asset management, integral to many aspects of the investment process

including trading, risk management, operations and client service. Given today’s information-

rich environment and the importance of technology in accessing markets, every organization

that manages assets – whether it’s an asset management company or an asset owner who

manages its assets internally – uses technology as part of its investment process Recently,

various observers have questioned the role of technology in asset management. Some have

raised concerns that the use of a vendor-provided system or modeling tool by multiple asset

managers or asset owners could increase systemic risk. In particular, these concerns are based

on the perception that common technology could create a “group-think” dynamic where

multiple asset managers could make similar investment decisions at the same time, or where

a problem with a widely-used model paradigm could lead to an industry-wide

misunderstanding of risk. Others believe a single investment system with a large share of the

market could potentially lead to vendor risk. While these are important questions to ask, they

reflect a misunderstanding of the heterogeneous nature of asset owners and their differing

investment objectives, how investors use technology, and the technology choices available to

investors (Novic & Nair 2013).

57
 The study also found out that the general services agencies has adopted the following

strategies to efficiently and effectively monitor GOL assets: creating and enforcing the

regulatory body to thorough monitoring and follow up on all GOL assets purchased, coded

and assigned etc. this therefore confirmed that these strategies will prove to have a positive

impact on the performance of assets monitors. The study also established that identifying,

coding and monitoring the assets affect the vision and mission of the Agency as well as it

also reduces equipment failure and extends the life of equipment. In extension, the research

highlights that Assets Management improves the efficiency and effectiveness of the Agency’s

Activities through Managing GOL Assets on a daily basis and keeping up to date registry of

the various institutions assets during transitional periods.

According to the (GSA Policy Manual 2014), management should take adequate

measures to ensure that offices are secured through the provision of security services and that

there is control over visitors entering the GSA premises. This should include controls over

movement of valuable assets such as computers out of office premises (GSA Policy Manual

2014).

The study also established that Assets classification at the GSA are done according to

the asset coding, number, and name of the assets assigned by the assets monitors. According

to Tanzi and Prakash (2000) found out that assets classification within the public assets

registry is crucial to establishing a manageable public assets portfolio. Such a portfolio would

be a solid base for implementing the valuation methods necessary for efficient utilization of

public assets. Just as with private sector assets, all public assets can be referred to simply as

either tangible or intangible. All public assets need to be accounted for in the central public

assets registry, regardless of who has been in charge of them and regardless of what the

possibilities and ways to determine their real value may be. Taking the stance that it is

preferable for each country’s public assets database to include at least the most important

public assets, various assets classifications are possible. The variety of classifications across
58
countries exists because certain countries are in doubt what types of public assets to include

in their public assets portfolios and how to value them. On the basis of the use being made of

the assets, they can be classified as vacant, occupied by governmental authorities or serving

to provide public services.

It was realized that IPSASs represent a sound base for assets classification and

valuation rules. For example, IPSAS Presentation of Financial Statements refers to current

and non-current assets as separate classifications on the face of the statement of financial

position. The distinction between cash-generating and non-cash -generating assets as the

primary objective for holding the assets is referred to in IPSAS Impairment of Non-cash-

generating Assets and in IPSAS (Tanzi & Prakash 2000).

The above discussion has showcases the factors or challenges experienced by asset

monitors at the general services agency. Similarly, the studies conducted have also

established a positive relationship with the review of related literature. The study has

pinpointed the major problems or challenges of asset monitors which consist of lack of

logistical supplies (Technology), asset classification, the lacks of cooperation from

management of line ministries and agencies, low salary and incentives affect the performance

of the implementation of Assets Management at the General Services Agency (GSA).

However, the paper has provided some of the measures to address the challenges.

CHAPTER FIVE:

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.0 Introduction

59
This chapter presents a summary of the key findings of the study as well as the conclusions

and recommendations made based on the findings. The chapter also presents the areas that

were pointed out during the study for further research.

5.1 Summary

The study was undertaken with the aim of assessing the Challenges of the implementation of

Assets Management at the General Services Agency (GSA). Primary data was used in the

analysis to study the variables. 5years data was collected from the publications of the General

Services Agency in Liberia. To address the aim of the study, inferential statistics were

conducted where frequency and percentage was used to study the data. The study used a

qualitative research method as well as an explanatory research design. The population of the

study was 254. The study used a purposive and judgmental sampling technique to select the

size of 10 respondents.

From the analysis, the study found out that the general services agency had experienced or

been faced with serious challenges with regards to the implementation of asset management

which were caused by “the lacks of technology and logistical supplies such as laptops,

vehicles, printers and etc., and hampers the operations of assets monitors to efficiently and

effectively monitor GOL assets on the field (in various line ministries & agencies)”, “lacks of

cooperation from management of line ministries and agencies, low salary and incentives, and

Selling of GOL assets also hampers the operation of assets monitors”. As indicated by Table

4.8

The study also highlights that “the Lacks of proper assets inventory and codding can

lead to GOL loosing valuable assets”. As indicated by Tables 4.9, 5 out of the 8 respondents

which constitute 67% said that “the Lacks of proper assets inventory and codding can lead to

GOL loosing valuable assets. Of the 5 respondents, 4 were males which represent 54% while

1 of the respondent was female and constitutes 13%. 25% (2) of the respondents say “that

60
asset management helps to Manage GOL assets and equipment” while one respondent which

constitute 13% said that “it serves as guidance”. This implies that, most of the respondents

who were males on the average admitted that asset management has a significant effect on

institutional mandate and enables asset monitors to efficiently and effectively ensure that

GOL assets are coded and the various line ministries and agencies are in compliance with

regulations.

5.2 Conclusion

Public sector asset management first came into the spotlight in the early 1980s, but was

enhanced by the (GSA, 2007) and later took much enforcement by the General Auditing

Commission in 2008 from their Audit report conducted in that same year. The General

Auditing Commission (GAC, 2012) reaffirmed that Central Government highlighted issues of

National Concern that we need to take a reactive approach to property asset management.

These reviews provided a platform for a major process of improvement – a search for new

and better ways to manage the valuable public sector resource and asset base property, (GAC,

2012). At the same time, the last 12 years have seen rapid changes in all aspects of working

practices and the public sector has not been immune to these (GAC, 2012).

The pervasive impact of technology, the rise of the service culture and search for

greater efficiency in the use of all resources have challenged professionals to deliver new and

more responsive proper solutions to meet the needs of the occupiers, customers and a wide

range of other stakeholders. Responding to these challenges, academics, consultants and

advisory bodies have developed tools and techniques to help asset managers proactively deal

with their portfolios. Based upon the data collected and analyzed using frequency,

percentage, tables and charts, the following conclusion were drawn from the study:

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The study concludes with the review of other related literature that the lack of technology

and logistical supplies such as laptops, vehicles, printers and etc., are key factors that

hampered the operations of assets monitors to efficiently and effectively monitor GOL assets

on the field;

That lacks of cooperation from management of line ministries and agencies, low salary and

incentives, and Selling of GOL assets also hampers the operation of assets monitors”;

The study further concludes that GSA are putting in place strategies and measures to mitigate

the already existing and emerging challenges facing the institutions,

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