FMPM 490 Contingent Liabilities

Intent

To set out the requirements regarding the identification, disclosure and review of contingent liabilities.

Scope

Definitions

Contingent Liability

Policy

Requirements

• Where the Head of an Organisational Unit becomes aware of a contingent liability or of circumstances where a contingent liability may arise, they are responsible for notifying the Director, Governance and Corporate Services.

• The Director, Governance and Corporate Services is responsible for providing a periodic report on the University’s material contingent liabilities to Audit and Compliance Committee.  The report will disclose the following information:

  • action taken to identify the source and estimated value of the contingent liabilities;

  • a recommendation about the proposed action for the contingent liabilities;

  • details of the Audit and Compliance Committee’s consideration of, and about, previously reported material contingent liabilities.

• The Chief Financial Officer is responsible for the disclosure of Contingent Liabilities required by the relevant Accounting Standards in the Annual Report.

• The Director, Governance and Corporate Services is responsible for maintaining a Contingent Liabilities Register which must disclose the following information for each Contingent Liability:

  • a description;

  • the officer responsible for the management and settlement of the contingency;

  • the value, if the value can be measured reliably;

  • the way in which it arose, for example its source;  and

  • action taken relating to the Contingency, for example action to minimise loss.

Related documents, legislation or JCU Statutes

Financial and Performance Management Standard 2009 (S15, 26)

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

Administration

Approval Details

Revision History