In order to ensure that properties are suitable for the purposes for which funding has been approved, organisations are required to obtain purchase approval from Human Services prior making an offer or bidding at auction to buy property.
Human Services approval will be given and funds released only when it is satisfied that the property is suitable for the proposed use, funds are sufficient to meet all costs necessary to bring the property into use and the proposal complies with the requirements of the Land Monitor.
In order to ensure that facilities are fit for the purpose for which funds have been approved, organisations are required to obtain works approval from Human Services before undertaking any construction/renovation works. This requirement is limited to occasions of Human Services funding only and is not an ongoing obligation.
Human Services works approval is not required if it is proposed only to refurbish existing fittings, finishes and fixtures in existing buildings at a property purchased with Human Services funds. In this case, the facilities have already been deemed fit for the proposed use in the architectural assessment prepared prior to purchase.
Human Services works approval is exercised through the Project Control Group established for the project. Further advice on the role of Project Control Groups can be obtained from Human Services Capital Development Guidelines 2.1 Project Control Groups, CMB May 1998.
In order to ensure that the interests of clients are protected and that government funds are applied to government priorities, organisations must obtain the approval of Human Services to dispose of property in which there is a government financial interest.
Organisations usually decide to dispose of property for reasons associated with the following:
Human Services will arrange for withdrawal of the caveat on the Title prior to the property being placed on the market so that potential purchasers are not discouraged from making an offer.
The property is to be sold at Public Auction or by Tender at a reserve price not less than that determined by a sworn valuation or the Land Monitor.
The Human Services proportion of the sale proceeds is to paid by cheque made out to Department of Human Services and directed to:
Director
Capital Management Branch
Department of Human Services
50 Lonsdale Street
MELOURNE VIC 3000
An organisation may seek approval from Human Services to sell an existing property and use the sale proceeds ,including the Human Services proportion, to purchase a replacement property better suited to service needs.
Such proposals are not consistent with Government requirements that funded services be contestable.
It is Human Services policy to realise proceeds from sale of property in which it has a financial interest and apply the funds to the purchase of other properties, which are to be held in freehold title by the Secretary to the Department of Human Services.
However, if there are regional service delivery needs that cannot otherwise be met, Human Services may approve the proposal, in which case the organisation must arrange for the Human Services portion of the sale proceeds to be paid into a solicitors trust account.
If a suitable property has not been identified within 24 months, then the funds must be returned to Human Services. If a new property is purchased, the organisation must sign a Property Deed of Charge acknowledging the Human Services financial interest represented by the roll-over funds and any additional funds that Human Services may provide.