'Ineffective': audit finds community facility oversight faults

Ineffective management has left ACT community organisations in facilities without clear agreements and maintenance plans, while a quarter of assessed facilities were found to be in "run down" or "poor" condition, an audit has revealed.

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An audit has criticised the ACT government's handling of its community facility portfolio, which includes the Belconnen Community Centre, pictured in 2006. Picture by Melissa Stiles

The ACT government collects more than $3.5 million a year from a suite of properties, including community and childcare centres, former schools, cottages and depots.

But an allocation policy that had not been updated for nearly two decades meant social enterprises and trusts that delivered community benefits might be missing out on access to subsidised facilities, the audit said.

The ACT Audit Office has issued sharp criticism of Infrastructure Canberra's handling of the property portfolio, which has peppercorn agreements that provide rent subsidies worth about $13 million in foregone revenue a year.

"The way [Infrastructure Canberra] sets rental fees lacks clear rationale. Missing agreements, manual invoicing processes and poor record keeping practices undermine confidence that [Infrastructure Canberra] calculates rental fees accurately and consistently," the audit said.

The audit, released on Thursday, pointed out problems with the management and maintenance of the sites, the oversight of agreements and the assessment of community groups' applications for renting space.

Auditors examined 200 legal agreements - including tenancy agreements, subleases and licences - with 151 community organisations.

"The effective management of community facilities can help the territory maximise the utility of these assets to provide and maintain key services where they are most needed," the audit said.

Opaque rules for assessing peppercorn agreements have left community organisations and the public in the dark about the way the government decides what organisations will benefit from the arrangements.

The audit also found Infrastructure Canberra did not have copies of 38 of 200 agreements it managed, meaning it could not demonstrate it was effectively managing the agreement or enforcing its terms.

"Community organisations reported having to produce a copy of their agreement because [Infrastructure Canberra] did not have one on record," the audit said.

The audit made 10 recommendations, including overhauling the way community facilities were allocated, improvements to documentation, and the introduction of more robust management plans.

The allocation policy for the facilities had not been updated since 2008, creating a risk the eligibility criteria were no longer fit-for-purpose, the audit said.

An Excel spreadsheet is used to record and manage applications from potential tenants but the audit found a "high proportion of missing and incorrectly recorded applications" meant the government could not accurately apply its own allocation policy to prioritise them.

Infrastructure Canberra has been working on a revised allocation policy since November 2024 but as of September 2026 it was yet to be approved for use.

"To ensure iCBR allocates community facilities consistently and fairly, the new policy needs to feature clear guiding principles, fit-for-purpose eligibility criteria and clear and consistent accompanying guidelines and forms," the audit said.

An assessment of 63 community facilities across Belconnen, Woden and Weston Creek found a quarter were in "run down" or "poor" condition, the audit said.

"There are up to 57 community facilities in other districts that were not assessed as part of this process. iCBR cannot confidently determine whether risks, renewal demands or divestment opportunities exist for these facilities," the audit said.

The audit said Infrastructure Canberra should develop an asset management policy and strategic plan for its community facilities.

Infrastructure Canberra was working a program to improve its asset management and property service work, a government response to the audit said.

Officials had already started work to update the allocation policy, standardise and update licence templates, review the charging policy and keep information stored centrally.

"Following the transfer of Property Group to Major Projects Canberra in December 2023, the ACT government initiated and then engaged proactively with the Audit Office on this audit and welcomes the audit process as an opportunity to strengthen how we manage community facilities and the broader property function," the government's response said.

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