6 Managing property

This part covers instructions to officials on the proper use and management of relevant property, including acquisition, custody, use, loss and disposal.

Relevant property is property (other than relevant money) that is owned or held by the Commonwealth or a corporate Commonwealth entity, or any other thing prescribed by the PGPA Rule (see section 8 of the PGPA Act). It includes:

• real property (i.e. land and buildings)
• other goods or assets such as:
• equipment and furniture
• stationery and office supplies
• vehicles and fuel
• clothing and uniforms
• IT and telecommunications assets
• intellectual property and other intangible items
• heritage and cultural assets
• military equipment
• shares, bonds, debentures and other securities
• accounts and records.

Relevant property also includes:

• leased property and property held by the Commonwealth or a corporate Commonwealth entity on behalf of someone else
• gifts given to the Commonwealth entity and its officials.

Acquiring property (including receiving gifts and benefits)

This section provides instructions on:

• procuring relevant property (by lease or purchase)
• finding property on Commonwealth entity premises
• receiving gifts or donations

Acquisition of property under specific legislation, such as the acquisition of any interest in real property under the Lands Acquisition Act 1989, is subject to the provisions of the specific legislation.

Procuring property

Instructions – officials responsible for procuring property

When procuring relevant property, you must:

• act in a proper manner (efficient, effective, economical and ethical) and in a way that is not inconsistent with Australian Government policy.
• comply with the requirements of section 18 of the PGPA Rule when approving proposed commitments of relevant money (see Procurement, grants and other commitments and arrangements)
• act in accordance with the Commonwealth Procurement Rules, if relevant (see Procurement).

Finding property on Commonwealth entity premises

Property found on Commonwealth entity premises is relevant property and must be retained and disposed of in a proper manner consistent with section 15 of the PGPA Act. This extends to property found in an aircraft, vessel, vehicle, container or receptacle that is under the control of the Commonwealth entity.

Instructions – officials who find property on Commonwealth entity premises

You are responsible for the security of any property that you find on the OAIC’s premises or in other containers and vehicles that are under the control of the OAIC.

You must take reasonable steps to safeguard any found property.

You must not misuse or improperly dispose of any found property (see Disposing of property found on Commonwealth entity premises).

• An official who finds property on the OAIC’s premises must pass it to the Receiver of Relevant Moneys on the day the property is found, or if that is not practicable, on the next working day. The Receiver of Relevant Moneys will:
• issue a receipt to the finder;
• maintain a register for property found on OAIC premises;
• ensure the safe custody of the property;
• make every reasonable effort to trace the owner and return the property to him/her; and
• where appropriate, notify the local police.

Receiving gifts and benefits

Officials, in the course of their work, may be offered gifts such as souvenirs, bottles of wine and personal items, or benefits such as sponsored travel, hospitality, accommodation or entertainment.

Generally, officials cannot accept gifts or benefits in the course of their work. However, there may be circumstances where it is appropriate to accept a gift or benefit – for example, where refusal could cause cultural offence, where an item of token value is offered by way of public thanks, or where attendance at an event is an important means of developing and maintaining relationships with key stakeholders.

Officials need to carefully consider the appropriateness of a gift or benefit before accepting or rejecting it.

Gifts provided to officials in the course of their work immediately become relevant property when received.

Instructions – all officials

You must not:

• ask for, or encourage, the giving of gifts to yourself or other officials.
• accept a gift of money (except in exceptional circumstances).
• accept a gift or benefit that influences, or could be perceived to influence, your decision or action on a particular matter.

If you decide to accept a gift or benefit, your decision must be defensible and able to withstand public scrutiny. You must have regard to the general duties of officials in deciding whether to accept a gift.

• Gifts or benefits that may be perceived as representing a conflict of interest should not be accepted.
• The Deputy Commissioner will maintain a Gift Register.
• Gifts or benefits worth over $50 must be recorded in the Gift Register, whether they are accepted or not.
• Gifts or benefits worth $50 or less may be recorded in the Gift Register, and if a gift or benefit is provided on behalf of the OAIC, it must be recorded in the Gift Register.

Custody, use and management of property

This section provides instructions on the proper use, management and security of any relevant property that officials receive or have custody of, including:

• vehicles belonging to or leased by a Commonwealth entity
• accountable forms
• bonds, debentures and other securities
• shares in a company.

Instructions – all officials

You must not misuse or improperly dispose of relevant property.

You are responsible for the security of any relevant property you receive, or have custody of, and must take reasonable steps to safeguard the property from loss.

You may only use relevant property for official purposes, unless permission for private use has been given.

• The Australian Information Commissioner has authorised the Deputy Commissioner to be responsible for the overall accounting for OAIC property assets and their reporting in the annual financial statements. The AHRC Finance Manager – AHRC assists in meeting this responsibility.
• While overall responsibility for relevant property rests with the Deputy Commissioner, all OAIC officials have a duty of care and a general responsibility to look after any property issued to or used by them.
• Assets are issued to staff where there is an identified work need. The OAIC accepts that reasonable incidental personal use of assets including laptops, mobile phones and the internet is a legitimate OAIC working expense. Incidental use would not cover expenses arising from personal use during periods of recreational leave.
• Officials may only remove relevant property from OAIC premises on the express condition that it is to be used for official purposes. The loan of portable computers and other equipment may be arranged through ICT Services.
• Where officials have borrowed OAIC property they become the custodian of the property until such time as it is returned to the OAIC and should it be lost or stolen, they may be responsible for paying the OAIC an amount equal to the loss (section 68 of the PGPA Act).
• An official must not misapply relevant property or improperly dispose of, or improperly use, relevant property (section 69 of the PGPA Act).
• Officials are responsible for the security of any relevant property they receive, or have custody of, and must take reasonable steps to safeguard the property from loss.

The Finance and Services Section – AHRC maintains the OAIC’s property assets register. For OAIC purposes, property related assets are defined as:

Use of Commonwealth entity vehicles

Most Commonwealth entities have vehicles that are owned or leased by the Commonwealth entity to be used by officials for official purposes. This does not include private-plated vehicles that are provided as part of a remuneration package, such as those under the Executive Vehicle Scheme, where separate arrangements exist.

Accountable authorities are required to ensure that officials promote the proper use, management and security of and Commonwealth vehicles they have custody of.

Instructions – all officials

You must not drive a Commonwealth entity vehicle unless prior agreement has been obtained.

When driving a Commonwealth entity vehicle, you must:

• hold a valid driver’s licence appropriate for the class of vehicle and country where you are driving
• comply with all relevant traffic laws, ordinances and regulations, including parking restrictions, of the country where you are driving.

You must not drive a Commonwealth entity vehicle if you are not medically fit to drive or are taking prescribed or non-prescribed drugs that can impair your driving ability.

You may only use a Commonwealth entity vehicle for official purposes, unless permission for private use has been given.

Accountable forms

An accountable form is a form that, once completed, can be exchanged or negotiated for a benefit such as money, goods or services. Accountable forms include cheques, credit notes, official manual receipts, credit vouchers and miscellaneous charge orders.

While Cabcharge vouchers are accountable forms, they are also Commonwealth credit vouchers for the purposes of the PGPA Act. For instructions on using Cabcharge vouchers, see Commonwealth credit cards and credit vouchers.

Instructions – all officials

You must ensure the safe custody and control of any accountable forms in your possession.

• You must ensure the safe custody and control of any accountable forms in your possession.
• The Receiver of Public Moneys (RPM) is responsible for the supply and secure storage of bulk stocks of accountable forms. These include:
• official receipts;
• Cabcharge e-tickets;
• visitor parking vouchers; and
• cheques.
• The RPM will maintain a Register of Accountable forms which includes the following details:
• the date of receipt of new stock;
• the commencing and closing number of each book (or stock) held;
• the date of issue of each book (or stock);
• the receiving official’s name, signature and location;
• the date of return of each book (or stock);
• the date of the quarterly check of stock and the initials of the official carrying out the stock check;
• the date of destruction of completed books (or stock) which have been returned and held in store or which are obsolete; and
• any relevant comments.
• The Deputy Commissioner with the assistance of the Finance and Services Manager – AHRC will arrange for the regular stocktake of accountable forms. The official carrying out the check will initial and date the register when the check has been completed. Any discrepancies must be reported to the Deputy Commissioner immediately by the inspecting official.
• The RPM will issue accountable forms to officials for use within their program areas. Receiving officials must check the forms received and sign the register in front of the RPM.
• Completed (and partly completed) books of forms are to be returned to the RPM for secure storage and eventual destruction. Details must be recorded in the register.
• Partly completed books which contain too few unused forms to justify their re-issue should have all the unused forms in them cancelled. Others may be reissued as required.
• Used receipt books must be retained for a minimum period of six years. Other used accountable forms must be retained for a minimum period of two years. At the end of those periods they are to be destroyed.
• Unused stocks of accountable forms that become obsolete, are damaged or spoilt should be destroyed and the details recorded in the register.
• When an official responsible for accountable forms transfers that responsibility to another person, details of the stocks of forms and keys for safes and locked drawers must be documented and witnessed, a copy placed on file and a copy passed by hand to the Finance and Services Manager – AHRC for retention with the Register of Accountable Forms.
• Any official who becomes aware of the loss of, or a deficiency in, accountable forms must immediately report the matter to the Deputy Commissioner who will instigate any necessary investigation and report recommending necessary action.

Bonds, debentures and other securities

Bonds, debentures and other securities are written documents that are evidence of an obligation to pay money to fulfil a debt or other obligation. ‘Other securities’ in this context means other documents similar to bonds and debentures, such as shares.

When an official receives a bond, debenture or other security in the course of his or her work, it immediately becomes relevant property.

Instructions – all officials

If you receive any bonds, debentures or other securities, you must ensure that:

• a receipt is issued for the bond, debentures or securities received
• a register is maintained of all bonds, debentures or securities received
• all reasonable steps are taken to safeguard the bonds, debentures or securities.

Acquiring shares and Commonwealth involvement in a company

Shares become relevant property when they are acquired by a Commonwealth entity. Shares may be represented by a certificate, but more generally are in electronic form only. Section 72 of the PGPA Act places a special requirement on ministers to inform the Parliament of any involvement in a company by a Commonwealth entity.

Instructions – officials who become aware of changes to the Commonwealth entity’s involvement in a company

You must ensure that the Attorney-General is advised that he or she must inform the Parliament if the OAIC:

• forms, or participates in forming, a company or a relevant body
• becomes, or ceases to be, a member of a company or a relevant body
• acquires shares in a company (either by purchase or subscription) or disposes of shares in a company
• has its rights attaching to company or relevant body shares varied
• has its rights as a member of a company or relevant body varied.

Loss and recovery of property

Sections 68 and 69 of the PGPA Act deal with who is responsible for the loss of relevant property. In relation to relevant property, loss also includes deficiency, destruction or damage. Officials can be held responsible for a loss of relevant property, whether or not the property was in their custody at the time when it was lost.

A loss of property may result in a debt owed to the Commonwealth entity by an official or minister. A person’s liability to pay such a debt is not avoided just because they stopped working for the Commonwealth after the loss occurred. For further information on the management of debt, see Managing debts and amounts owing to the Commonwealth.

Instructions – all officials

You are responsible for the security of any relevant property you receive or have custody of, and must take reasonable steps to safeguard the property from loss.

If you do not take reasonable steps to prevent a loss of relevant property, and the loss occurs while the property is in your custody, you will be liable to pay the Commonwealth an amount equal to the loss.

If you cause or contribute to a loss of relevant property by misconduct, or a deliberate or serious disregard for reasonable standards of care, you will be liable to pay the Commonwealth an amount that reflects your share of the responsibility for the loss.

• An official who finds property on the OAIC’s premises must pass it to the Receiver of Relevant Moneys on the day the property is found, or if that is not practicable, on the next working day. The Receiver of Relevant Moneys will:
• issue a receipt to the finder;
• maintain a register for property found on OAIC premises;
• ensure the safe custody of the property;
• make every reasonable effort to trace the owner and return the property to him/her; and
• where appropriate, notify the local police

Disposing of property (including gifting relevant property)

This section provides instructions on:

• disposal of relevant property generally (e.g. sale, trade-in, transfer to another Commonwealth entity, destruction, recycling or dumping)
• disposal of property found on Commonwealth entity premises
• gifting of relevant property.

For non-corporate Commonwealth entities, the Commonwealth’s general policy on the disposal of relevant property is that, wherever it is economical to do so, the property needs to be sold at market price or transferred (with or without payment) to another government entity within Australia (including state or territory governments) with a need for the property.

Disposal of property under specific legislation, such as the disposal of any interest in real property by the Commonwealth under the Lands Acquisition Act 1989, is subject to the provisions of that legislation.

Instructions – all officials

You must not:

• improperly dispose of relevant property
• make a gift of relevant property, unless it complies with the instructions Gifting relevant property
• dispose of relevant property found on Commonwealth entity premises, except in accordance with the instructions Disposing of property found on Commonwealth entity premises.

Instructions – officials responsible for the disposal of relevant property

You must ensure that relevant property is disposed of by:

• transferring the property (with or without payment) to another government entity within Australia (including state or territory governments) with a need for the property
• selling the property at market value, where it is economical to do so; or
• seeking authorisation in writing from the Finance Minister (or a delegate) to gift the relevant property (see Gifting relevant property).
• Officials who are aware of OAIC property which should be disposed of, whether it is surplus to requirements, has been condemned, is unrepairable or for any other reason, should advise the Finance and Services Section so that appropriate action may be taken.
• In approving disposals, the Deputy Commissioner has to ensure:
• the best net financial outcome for the OAIC;
• the arrangements are able to withstand public scrutiny in terms of value for money, probity and ethical grounds and are fully documented;
• the Movable Cultural Heritage Unit, Environment Australia is consulted if the property is of cultural or historical significance;
• proceeds from sales are passed to the Receiver of Relevant Moneys as soon as practicable;
• any disposal action is thoroughly documented; and
• the assets register is updated to reflect the disposal.
• Where stores are disposed of by trade-in and replaced by new items of a similar nature, the arrangements must make efficient and effective use of OAIC funds. Such arrangements may be approved by officials who have been delegated the power to spend relevant money provided the amount concerned falls within their monetary limitation.

Disposing of property found on Commonwealth entity premises

Instructions –officials responsible for the disposal of found property

You may only dispose of property (other than money) found on Commonwealth entity premises, or in containers, receptacle or vehicles that are under the control of the Commonwealth entity, if the property is not claimed by its owner within a reasonable timeframe.

You must dispose of the property by sale, unless doing so is impracticable or undesirable with regard to the public interest.

Gifting relevant property

Section 66 of the PGPA Act sets out the circumstances where a gift of relevant property may be made by a minister or an official of a non-corporate Commonwealth entity. This section also provides the Finance Minister with the power to authorise in writing a gift of relevant property. This power has been delegated with directions to all non-corporate Commonwealth entity accountable authorities, who in most cases have sub-delegated it to certain officials.

Instructions– all officials

You must not make a gift of relevant property unless:

• the property was acquired or produced to be used as a gift
• the making of the gift is expressly authorised by law; or
• the Finance Minister or a delegate has given written authorisation to the gift being made under section 66 of the PGPA Act.

If you make an unauthorised gift of relevant property, you must personally pay the Commonwealth the value of the relevant property.

Instructions – officials with a delegation to authorise a gift of relevant property

When authorising a gift of relevant property, you must comply with the directions in the delegation from your accountable authority.

You must have regard to the Commonwealth’s overarching principles for the disposal of relevant property, as outlined in the delegation from the Finance Minister.

Despite the Commonwealth’s overarching principles for the disposal of relevant property, you may authorise a gift of relevant property where the property is:

• genuinely surplus to the entity’s requirements, and of historical or symbolic significance to the proposed recipient
• holds other special significance for the proposed recipient and there are compelling reasons to justify its gifting to that recipient or
• of low value and otherwise uneconomical to dispose of, or the gifting supports the achievement of an Australian Government policy objective.

You must not authorise:

• a gift of military firearms
• a gift that would create an onerous or undesirable precedent.

You need to ensure that the grounds on which you authorise a gift to a selected recipient are publicly defensible and documented.

You must provide written authorisation for the gifting of relevant property.

You must obtain a reasonable estimate of the market value of the property before authorising it to be gifted. If this is not possible, you must assign a notional value and record the basis for determining the value of the property.