FMPM 920 Losses

Intent

This policy sets out the requirements regarding notification of, and approval for, the write off of a loss.

Scope

Limitations

This Finance Directive excludes the following:

• Losses on authorised disposal of Plant and Equipment, refer to Finance Procedure 323 – Disposal of Plant and Equipment

• Losses on authorised disposal of Investments, refer to Finance Committee Directive 300 - Investments

Definitions

Insurance

Loss

Material Loss

Policy

Functions

Requirements

• The Head of Organisational Unit must;

  • immediately notify the Chief Financial Officer of any loss of University property for which their Organisational Unit is responsible.

  • promptly:

    • investigate the circumstances of the loss;

    • prepare an internal report;

    • recommend an action required to minimise the resulting loss;

    • take action to prevent the loss recurring; and

    • forward a copy of the report to the Chief Financial Officer.

• If any loss arises from a cause which could constitute an offence under the Criminal Code or another Act, and the loss is:

  • a loss of money under the control of the University; or

  • loss of, destruction or damage to, property of or under the control of the University.

• The Chief Financial Officer must give written notice about the loss to:

  • the Queensland Auditor-General; and

  • a member of the Police Force of Queensland.

• The University must not:

  • abstain from, discontinue or delay a prosecution for any offence under the laws of the State in relation to any loss; nor

  • withhold, or promise to withhold or delay any evidence for the purposes of prosecution.

• If the University considered the loss may be the result of:

  • an offence under the Criminal Code or another Act;

  • suspected official misconduct by an officer of the University; or

  • the conduct of a consultant or a contractor engaged by the University where the conduct would amount to official misconduct if it were the conduct of an officer of the University:

    • the Chief Financial Officer must refer the matter to the Audit & Assurance Office and Vice-Chancellor; and

    • the Vice-Chancellor must notify the Crime & Misconduct Commission in writing of the loss.

• The University must keep a register of material losses of property, including money.  All unrecoverable debts written off must also be included on this register (Refer FMPM 271: Procedure – Granting of Credit and Credit Control).

• The annual financial statements of the University must disclose the classes of material loss and the total amount of the loss for each class.

Related documents, legislation or JCU Statutes

Financial and Performance Management Standard 2009 Sec. 21 & 22.

For enquiries in relation to this FMPM Policy please contact AccountsReceivable@jcu.edu.au.

Administration

Approval Details

Revision History