Finance

Responsible Agency:	Office of the Comptroller General
Issued:	Aug 1993
Last Updated:	Aug 1993

The purpose of this directive is to specify those classes of public property for which the Financial Management Board (FMB) has delegated disposal authority, and to reference where legislation provides for the disposal of public property. Government policies and directives that establish procedures for disposal are outlined.

Sections 65 and 107(j) of the Financial Administration Act (FAA) establish certain provisions on the disposal of public property:

65 (1) Where the Board determines that public property is surplus to the requirements of the Government or that its disposal is in the best interests of the Government, the Board may authorize the disposal of the property. (2) The proceeds from the disposal of public property must be credited to an appropriate revenue account.

107. The Commissioner, on the recommendation of the Board, may make regulations: (j) respecting the acquisition, receipt, custody, issue, disposal and control of public property. The Archives Act, the Commissioner's Land Act, the Petroleum Products Tax Act, and Tobacco Tax Act also establish certain provisions on the disposal of public property.

2.1	For purposes of this directive, the definition of public property is that contained in Section 2 of the FAA - "public property means all personal and real property that belongs to the Government."
2.2	Public property does not include public money.

Pursuant to the Disposal of Public Property Regulations, the FMB delegates the authority to dispose of public property in accordance with the provisions of this directive (apart from public property that has disposal authority established in legislation and therefore does not require FMB delegation).

Specific Public Property Disposal Authorities

The following provisions outline specific types of public property and the assignment of responsibility for disposal. This directive does not apply to public property disposed of pursuant to the provisions of the federal Bankruptcy Act.

4.1	Owner/Client departments and public agencies declare public property surplus to their needs or requirements, in accordance with provision 4.11 and the requirements of the specific instrument (legislation, policy, etc.), that applies to the public property.
4.2	Any public property not referenced in sections 4.3 to 4.10 and the associated legislation, policies or directives requires approval for disposal by the FMB.
4.3	Unimproved land: Disposal by the Department of Municipal and Community Affairs in accordance with the provisions of the Commissioner's Land Act and the Government Policy - Land Pricing.
4.4	Improved real property: Disposal by the Department of Public Works & Services in accordance with the provisions of the Government Policy - Disposal of Improved Real Property.
4.5	Public records: Disposal by the Department of Education, Culture and Employment in accordance with the provisions of the Archives Act and the Government Policy - Northwest Territories Archives.
4.6	Library and Heritage Materials: Disposal by the Department of Education, Culture and Employment in accordance with the provisions of the Government Policy - Collections Disposal.
4.7	Accommodation units: Disposal by Financial Management Board Secretariat through sale as directed by the Financial Management Board.
4.8	Privatization initiatives: Disposal as part of privatization initiatives must be conducted in accordance with the Government Policy – Disposal, and with FAM Policy 3559 - Privatization of Government Programs, Services or Enterprises, in this manual.
4.9	Seized public property: Disposal by the Department of Finance in accordance with the provisions of the Petroleum Products Tax Act and the Tobacco Tax Act, and the Property Assessment and Taxation Act.
4.10	Other public property: Disposal by the Department of Public Works & Services or public officers delegated authority by the Deputy Head of Public Works & Services, in accordance with the Government Policy - Disposal.
	General Public Property Disposal Authorities The following general provisions apply to the disposal of all public property:
4.11	Administrative procedures to be followed for public property disposal must be established within the relevant policies or directives. These procedures must include an outline of the specific public officers to whom disposal authority is being established.
4.12	Any restrictions on the eligibility of individuals or groups to receive public property that is being disposed of must be established within the relevant policies or directives. In particular, the eligibility restrictions shall outline the ability for employees of the Government to receive public property that is being disposed.
4.13	For public property disposed of by destruction (e.g., hulks of equipment), the destruction must be witnessed, and an affidavit filed by, a representative of the responsible department or public agency.
4.14	Write-off or deletion of public property must be conducted in accordance with the provisions of FAM Policy 2209 - Deletion or Write-off, in this manual.
4.15	Deletion of public property from revolving funds must be conducted in accordance with section 64 of the Financial Administration Act, and the provisions of FAM Policy 2209 - Deletion or Write-off, in this manual.
4.16	Deputy Heads of departments responsible for the disposal of public property shall report on such disposal as the Comptroller General directs.

Failure to comply with policies and directives of the Financial Administration Manual may result in actions under Part X of the Financial Administration Act. The Government of the Northwest Territories may seek legal remedy in the Territorial Courts.