Procedures

Reporting of Losses - Procedures

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1. Purpose and Objectives

These procedures set out the actions to be taken when a loss is identified.

2. Definitions, Terms, Acronyms

Losses - include:

  • bad debts written off (debt forgiveness);
  • thefts;
  • accidental and wilful damage; or
  • property destruction and losses due to negligence.

Material loss - includes:

  • for property that is money - a loss of more than $500; or
  • for other property - a loss valued by the Accountable Officer or statutory body at more than $5,000; or
  • any item listed on the Asset Register.

3. Procedures Scope/Coverage

These procedures relate to any losses made by the University, University staff members and students.

4. Procedures Statement

Losses may result from various causes including theft, writing-off bad debts, unauthorised acts and omissions and wilful destruction. The University is committed to prevention of unnecessary loss. Accordingly, all losses will be investigated and reported on.

These procedures relate to any losses incurred by the University with the exclusion of the following:

  • Provisions for impairment (of receivables);
  • Impairment losses, being the amount by which the carrying amount of an asset exceeds its recoverable amount; or
  • Routine inventory adjustments.

These procedures are consistent with the requirements of sections 21 and 22 of the Financial and Performance Management Standard 2009.

Disclosure in the financial statements is required of the total amount of each class of material loss.

5. Action to be Taken when a Loss is Identified

5.1 Loss from offence or misconduct

This section applies if the Head of an organisational unit becomes aware of a loss, and considers the loss may be the result of:

(i) an offence under the Criminal Code or another Act; or

(ii) the corrupt conduct of a staff member; or

(iii) the conduct of a consultant or a contractor engaged by the University that would amount to corrupt conduct if it were the conduct of a staff member.

The Head of an organisational unit must:

a) investigate the loss;

b) prepare an internal report relating to the incident;

c) take action to prevent the loss recurring;

d) submit a Loss Report Form to the Insurance Office without delay; and

e) report the loss to the Chief Financial Officer (CFO).

The CFO must keep a written record of the following details about the loss:

(a) a description of the property, including its value;

(b) the date and reason for the loss;

(c) the action taken about the loss, including, for example the following:

(i) action to remedy any weakness in the internal control of the organisational unit or University;

(ii) action taken to obtain reimbursement;

(d) details about approval for writing off the loss.

5.1.1 Reporting of material losses as a result of offence or misconduct:

For all material losses as a result of an offence or misconduct, the Insurance Office must, as soon as practicable but not later than six (6) months after the loss was identified, notify:

a) the Minister for the Department of Education; and

b) the Auditor-General.

For all material losses, the CFO must, as soon as practicable but not later than six (6) months after the loss was identified, notify:

a) for a loss as a result of an offence under the Criminal Code or another Act - a police officer;

b) for a loss as a result of the corrupt conduct of a staff member - the Crime and Corruption Commission.

5.2 Other material losses

This section applies if the Head of an organisational unit becomes aware of a material loss, other than a loss from offence or misconduct. The Head of an organisational unit must:

a) investigate the loss;

b) prepare an internal report relating to the incident;

c) take action to prevent the loss recurring;

d) submit a Loss Report Form to the Insurance Office without delay; and

e) report the loss to the CFO.

The CFO must keep a written record of the following details about the material loss:

(a) a description of the property, including its value;

(b) the date and reason for the loss;

(c) the action taken about the loss, including, for example, action taken to obtain reimbursement;

(d) details about approval for writing-off the loss.

5.3 Financial statement disclosures

Material losses must be separately disclosed in the notes to the financial statements under the "Other Expenses" note.

6. Write-Off and Internal Reporting of Losses

All write-offs of bad debts, stores inventory, assets and the write-off of any other losses must be approved, in writing, by an officer with authority under PPL 1.10.02 Financial Delegations.

Where such a loss has occurred, organisational units, in addition to the procedures specified in this policy, must notify FBS Division of the loss in accordance with the procedures specified in the following sections:

Custodians
Chief Financial Officer
Mr Andrew Betts
Custodians
Chief Financial Officer
Mr Andrew Betts