Annual Report 2006-2007
 

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Your location: Performance > Outcome 4 > Output 4.1 > Reporting against effectiveness indicators

OUTPUT 4.1: Property management

Reporting against effectiveness indicators

On this page: Overview :: Provision of accommodation overseas :: Physical management of assets :: Financial management of assets :: Outlook

Overview

The department fully met its objectives under output 4.1 in relation to the management of the overseas property portfolio. We maintained the value of the Government’s property assets, paid a dividend to the Government, made a return on investment and delivered a management expense ratio consistent with property industry benchmarks.

The department’s Overseas Property Office (OPO), which is responsible for managing all aspects of the Australian Government’s overseas owned property estate, continued to apply rigorous commercial practice to all aspects of property management, in accordance with principles outlined in the Australian Government Property Ownership Framework.

We maintained regular and effective interagency communication on property management issues. There was close consultation with government agencies represented at our overseas posts, and with the Department of Finance and Administration.

The international security environment continued to present challenges for our management of the overseas estate, particularly in ensuring that new projects met security requirements.

Provision of accommodation overseas

The department fully met the wide range of office and staff accommodation requirements of agencies representing the Government’s interests overseas.

In 2006–07, we managed owned properties in 60 locations, valued at $1.5 billion.

The overseas leased estate comprises property leased by the department and other agencies from private landlords. The leased estate is funded from departmental appropriations with OPO providing management oversight of the estate (see Section 3: Corporate management and accountability on page 276 for information about the department’s leased estate).

Physical management of assets

The department maintained its program of assessing all overseas property, involving annual inspections by facilities managers and consultation with post management and agencies.

In accordance with industry standards, OPO determined priorities for upgrading and refurbishing properties under a five-year rolling program for the owned and leased estates approved annually by the department’s senior executive (see also quality and quantity information for output 4.1). Acquisition and disposal of properties was determined in accordance with the Australian Government Property Ownership Framework.

We continued to develop and manage a major program of construction and refurbishment in the overseas owned estate, enhancing its quality and long-term value.

Financial management of assets

The department operates a Special Account to manage the overseas owned estate. The account, which is separate from the department’s Budget appropriations, was established in May 2002 by the Minister for Finance and Administration. Revenue into the account is derived from commercially-based rents paid by the agencies that occupy government-owned property overseas.

For reporting on financial management of the overseas owned estate, see quality and quantity information for output 4.1.

Outlook

We will manage a significant construction program in the overseas property estate in 2007–08. Security will remain an important element in our forward project planning. We will maintain our program of post inspections and assessments to ensure that the value of the estate is enhanced and that we comply with appropriate standards. We will continue to meet our objectives in managing the owned estate consistent with the Australian Government Property Ownership Framework and through prudent operation of the overseas property Special Account.

 

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