Contents of Part 2
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| 1.4 Responsibility for asset |
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Entities
Assets must be controlled by an entity. In this part, an entity is defined as a Victorian Government department or agency that is wholly or partly funded through the State budget and that is required to report to the Victorian Parliament.
Managers in reporting entities are expected to use financial and asset reports to guide them in evaluating and making decisions about the allocation of resources.
The policies and practices outlined in this part apply to all Victorian Government entities as defined above.
Control
An entity is deemed to control an asset if it has the capacity to enjoy the service potential or future economic benefits of the asset, and can deny or regulate the access of others to those benefits. However, the entity that is responsible for the control of a public asset may not necessarily be the entity that 'owns' it.
All public assets are owned by the Crown, although there are a number of ways in which this 'ownership' may be expressed. An asset may be:
A Minister in whose name an asset is 'owned' may not be the Minister to whom the entity responsible for using that asset reports. Heads of entities who control assets have to account for their proper management. 'Ownership' is not the appropriate measure by which to establish responsibility in the public sector.
Accountability
Accountability involves mechanisms (including rewards and sanctions) to ensure that a person or entity performs to an agreed standard. As an example, financial accountability involves an obligation to demonstrate that expenditure has been efficient, effective, ethical and in accordance with the law.
Entities that control assets are accountable for their management. Accounting standards contain indicative tests to determine whether an entity has control of an asset, and whether it should be accounted for in the entity's annual financial statements.
| Secretaries of departments and heads of statutory authorities are accountable for the planning, management and performance of assets under their control.1 |
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