Funding of Capital Items - Disability Services Commission

ATTACHMENT C – EQUITY INTEREST ARISING FROM THE USE OF PROGRAM SUPPORT FUNDING
Grant Purpose
Purchase / Construction of
Land and/or Building
Commission’s Policy Position
The Commission does not restrict the use of program support funding for loan / mortgage repayments for office / administration
buildings or direct care facilities.
When this occurs, service providers will not be permitted to include depreciation or interest / loan repayments for output
reporting of the Agreements.
The service provider shall advise the Commission of their intention to use program support funding for these purposes and the
Commission may place a caveat on the relevant property.
Where a property no longer meets a service provider’s requirements, the Commission may consider the transfer of the equity for
another purpose. The process for equity transfer is similar to that of CSTDA equity arrangements and will include:
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preparation of a supporting business case by the service provider;
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.
From an accounting perspective, the service provider will be deemed to have “control” of the asset and as such will be
responsible for disclosure in their financial statements and also responsible for insurance, maintenance and other operational
costs associated with the asset.
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