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Service Agreement Information Kit for Funded Organisations

3.7.5 Transfer of assets

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Where an organisation ceases to provide services and has assets that were purchased entirely or in partly through a specific departmental funding grant, the department may request the organisation to:

  • transfer the assets to another service provider
  • transfer the assets to the department
  • reimburse the department an amount equal to the depreciated value of the asset.

The transfer of assets to a third party, such as another service provider, enables the assets to continue to be used in the delivery of services.

If a third party has a stake in the asset (i.e. has provided part funding for the asset), an organisation is to obtain the appropriate consent of the third party if it is considering transferring ownership of the asset or selling the asset to reimburse the department.

Assets that have fully depreciated which were worth less than $5000 at the time of purchase, will be viewed by the department as owned by the organisation and able to be retained by the organisation.

When an asset is transferred from one organisation to another, it must only be depreciated to the end of the month of the transfer and reported in the organisation's statement of financial position at the end of the financial year.

The organisation that receives the asset should record the asset at the written down value, as supplied by the transferring organisation, commence depreciation from the first full month following acquisition and include the asset in the statement of financial position at the end of the financial year.