Funding of Capital Items - Disability Services Commission

Grant Purpose
Purchase / Construction of
Land and/or Building
ATTACHMENT B - TREATMENT OF CSTDA EQUITY ARRANGEMENTS
Commission’s Policy Position
The Commission will not force sale upon a service provider in which it holds an equity interest.
The Commission may consider placing caveats on properties in which it holds an equity interest. The service provider shall not
mortgage or encumber in any other way the asset without the prior approval of the Commission.
The Commission’s equity interest is determined by the formula prescribed in the capital agreement. In some cases this interest is
the “equivalent value of the grant in today’s dollars” and in others it is based on the “original grant amount”.
Where a property no longer meets an agency’s requirements, the Commission may consider the transfer of the equity for another
purpose. The process for equity transfer will include:
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preparation of a supporting business case by the organisation;
proceeds from sale to be reinvested in similar disability services;
the Commission’s equity interest transfers to the new asset; and
Ministerial approval to be obtained to transfer equity.
The service provider should advise the Commission where they intend to undertake significant capital improvements which may
alter the equity arrangements. The equity arrangements will be adjusted through consultation between parties.
Whoever is deemed to control the asset should report the asset on their financial statements. The service provider reporting the
asset shall be responsible for the insurance, maintenance and other operational costs associated with the asset.
Not Specified
Other Capital Items (e.g.
plant and machinery)
Maintenance / Minor Works
The equity interest should be treated as above (by agreement between parties).
The Commission relinquishes equity rights to these items.
The Commission relinquishes equity rights to these items.
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