Gifts, benefits and hospitality register

2019-20 gifts, benefits and hospitality register - accepted

Date offered	Position	Description of gift, benefit or hospitality	Estimated or actual value of gift	Name of organisation providing the offer
19/07/2019	Chief Executive Officer	Wine	<$50	CPA Australia
11/12/2019	Chief Financial Officer	Chocolates	$45	Formation Technology Group

No gifts, benefits or hospitality were recorded for the 2020-21 financial year.

1. Purpose

This policy states the Portable Long Service Authority (the Authority)’s position on:

responding to offers of gifts, benefits and hospitality
providing gifts, benefits and hospitality.

This policy is intended to support individuals and the Authority to avoid conflicts of interest and to maintain high levels of integrity and public trust.

The Authority has issued this policy to support behaviour consistent with the Code of Conduct for Victorian Public Sector Employees, which is binding under section 61 of the Public Administration Act 2004 (Vic). All employees are required under clause 1.2 of the code to comply with this policy.

2. Scope

This policy applies to all Authority workplace participants, including employees, contractors[1], consultants and any individuals or groups undertaking activity for or on behalf of the Authority. For the purpose of this policy, all workplace participants will be referred to as ‘employees’.

[1] Note clause 1.4 of the Code of Conduct for Victorian Public Sector Employees which provides that public sector employers are to require contractors and consultants to comply with the code and relevant policies and procedures in certain circumstances. Contractors and consultants are only bound by the code if explicitly required by their contract for services.

3. Policy Principles

This policy has been developed in accordance with requirements outlined in the minimum accountabilities for the management of gifts, benefits and hospitality issued by the Victorian Public Sector Commission (VPSC).

The Authority is committed to and will uphold the following principles in applying this policy:

Impartiality - individuals have a duty to place the public interest above their private interests when carrying out their official functions.

Employees have a duty to:

act apolitically and providing frank and fearless advice to government
comply with legislation and government and Authority policies
perform their roles fairly and reasonably and adhering to the principles of natural justice
apply the Authority and public sector values (Respect, Accountability, Integrity, Impartiality, Responsiveness, Leadership and Human Rights) set out at section 7 of the Public Administration Act 2004 (Vic)
adhere to the Code of Conduct for Victorian Public Sector Employees
not accept gifts, benefits or hospitality that could raise a perception of, or actual, bias or preferential treatment
not accept offers from current or prospective suppliers and
not accept offers from those about whom they are likely to make business decisions.

Accountability - individuals are accountable for:

not engaging in the soliciting of gifts, benefits and hospitality for themselves or others
declaring all non-token offers of gifts, benefits and hospitality
declining non-token offers of gifts, benefits and hospitality, or where an exception applies under this policy, seeking approval to accept the offer and
the responsible provision of gifts, benefits and hospitality.

Individuals with direct reports are accountable for overseeing the management of their direct reports’ acceptance or refusal of non-token gifts, benefits and hospitality, modelling good practice and promoting awareness of gifts, benefits and hospitality policies and processes.

Integrity: individuals strive to earn and sustain public trust through providing or responding to offers of gifts, benefits and hospitality in a manner that is consistent with community expectations. Individuals will refuse any offer that may lead to an actual, perceived or potential conflict of interest.

Risk-based approach: the Authority through its policies, processes and audit committee, will ensure gifts, benefits and hospitality risks are appropriately assessed and managed. Individuals with direct reports will ensure they are aware of the risks inherent in their team’s work and functions and monitor the risks to which their direct reports are exposed.

4. Minimum accountabilities

Under the Instructions supporting the Standing Directions of the Minister for Finance 2016, the VPSC has set binding minimum accountabilities for the appropriate management of gifts, benefits and hospitality. These can be found in Appendix 1.

5. Definitions

Gifts	Free or discounted items and any item that would generally be seen by the public as a gift. These include items of high value (e.g. artwork, jewellery, or expensive pens), low value (e.g. small bunch of flowers) and consumables (e.g. chocolates). Fundraising by public sector organisations that is consistent with relevant legislation and any government policy is not prohibited under the minimum accountabilities.
Benefits	Preferential treatment, privileged access, favours or other advantage offered to an individual. This may include invitations to sporting, cultural or social events, access to discounts and loyalty programs, and promises of a new job. The value of benefits may be difficult to define in dollars, but as they are valued by the individual, they may be used to influence the individual’s behaviour.
Ceremonial gifts	Ceremonial gifts are official gifts provided as part of the culture and practices of communities and government, within Australia or internationally. Ceremonial gifts are usually provided when conducting business with official delegates or representatives from another organisation, community or foreign government. Ceremonial gifts are the property of the public sector organisation, irrespective of value, and should be accepted by individuals on behalf of the public sector organisation. The receipt of ceremonial gifts should be recorded on the register but does not need to be published online.
Hospitality	The friendly reception and entertainment of guests. Hospitality may range from light refreshments at a business meeting to expensive restaurant meals and sponsored travel and accommodation.
Conflicts of interest Actual conflict of interest:	A real conflict between an employee’s public duties and private interests.
Potential conflict of interest:	An employee has private interests that could conflict with their public duties. This refers to circumstances where it is foreseeable that a conflict may arise in future and steps should be taken now to mitigate that future risk.
Perceived conflict of interest:	The public or a third party could form the view that an employee’s private interests could improperly influence their decisions or actions, now or in the future.
Supplier	Company or individual that supplies goods or services to the public sector organisation, or could reasonably be expected to seek to supply goods or services to the public sector organisation. This is consistent with the definition adopted by the Victorian Government Purchasing Board in its Supplier Code of Conduct.
Business associate	An external individual or entity which the organisation has, or plans to establish, some form of business relationship, or who may seek commercial or other advantage by offering gifts, benefits or hospitality.
Legitimate business benefit	Gifts, benefits and hospitality accepted or provided for a business purpose, in that it furthers the conduct of official business or other legitimate goals of the organisation, public sector or State.
Public official	As defined under section 4 of the Public Administration Act 2004 (Vic). Public officials include: public sector employees statutory office holders directors of public entities.
Gifts Benefits and Hospitality Register	A record, preferably electronic, of all declarable gifts, benefits and hospitality. It records the date an offer was made and by whom, the nature of the offer, its estimated value, the raising of any actual, potential or perceived conflicts of interest or reputational risks and how the offer was managed. For accepted offers, it details the business reason for acceptance and the officer approving the acceptance.
Token offer	The offer of a gift, benefit or hospitality that is offered as a courtesy or is of inconsequential or trivial value to both the person making the offer and the individual. Whilst the primary determinant of a token offer is that it would not be reasonably perceived within or outside the organisation as influencing an individual or raising an actual, potential or perceived conflict of interest, it cannot be worth more than $50 (including cumulative offers from the same source over a 12-month period).
Non-token offer	The offer of a gift, benefit or hospitality that is, or may be perceived to be by the recipient, the person making the offer or by the wider community, of more than inconsequential value. All offers worth more than $50 are non-token offers and must be recorded on a gifts, benefits and hospitality register.

6. Process - Management of offers of gifts, benefits and hospitality

This section sets out the process for accepting, declining and recording offers of gifts, benefits and hospitality. Any exceptions to this process must have prior written approval from the Authority’s Chief Financial Officer. The VPSC’s GBH Decision Tree helps to step you through the process.

Token offers

A token offer is an offer of a gift, benefit or hospitality that is of inconsequential or trivial value to both the person making the offer and the individual. It may include promotional items such as pens and note pads, and modest hospitality which would be considered a basic courtesy, such as light refreshments offered during a meeting.

Whilst the primary determinant of a token offer is that it would not be reasonably perceived within or outside the organisation as influencing an individual raising an actual, potential or perceived conflict of interest, it cannot be worth more than $50.

If token offers are made often by the same person or organisation, the cumulative value of the offers over 12 months, or the perception that they may influence the recipient, may result in the offers becoming non-token.

Individuals may accept token offers of gifts, benefits and hospitality without prior approval but must declare the offer on the Authority’s Gifts, Benefits and Hospitality (GBH) register.

Authority employees must refuse all offers (with the exception of token hospitality, such as beverages or sandwiches over a lunchtime meeting or invitations to free seminars on legitimate business topics):

made by a current or prospective supplier
made during a procurement or tender process by a person or organisation involved in the process
made by a person or organisation the Authority employee will likely make a decision involving approval of registration or
made by a person the Authority employee will likely make a decision involving recruitment.

Non-token offers

A non-token offer is an offer of a gift, benefit or hospitality that is, or may be perceived to be by the recipient, the person making the offer or by the wider community, of more than inconsequential value. The Authority’s threshold for token offers is $50. All offers valued over $50 are considered as non-token offers.

Hospitality offered by State public sector organisations will not be recorded where it is offered as part of official business and where the reason for attendance is consistent with the organisation’s functions and objectives, and with the official’s role.

In short, you do not need to declare the above invitations from State public sector organisations. However, you do need to declare invitations from Commonwealth, Local Government and other State Government jurisdictions.

Ceremonial gifts may be accepted on behalf of the Authority. They must be recorded in the Gifts, Benefits and Hospitality Register.

The Authority’s position is that all non-token offers should be declined, however, there will be some exceptions where there is a legitimate business reason for accepting a non-token offer.

Authority employees must refuse all non-token offers:

likely to influence them, or be perceived to influence them, in the course of their duties or raise an actual, potential or perceived conflict of interest
by a person or organisation about which they will likely make a decision (also applies to processes involving registration, regulation or enforcement)
likely to be a bribe or inducement to make a decision or act in a particular way
that extend to their relatives or friends
with no legitimate business benefit
of money, or used in a similar way to money, or something easily converted to money
where, in relation to hospitality and events, the organisation will already be sufficiently represented to meet its business needs where acceptance could be perceived as an endorsement of a product or service, or acceptance would unfairly advantage the sponsor in future procurement decisions
made by a person or organisation with a primary purpose to lobby Ministers, Members of Parliament or public sector agencies or
made in secret.

If an individual considers they have been offered a bribe or inducement, the offer must be reported to the Governance function within the Executive, Governance, Legal and Secretariat Business Unit. Any criminal or corrupt conduct will be reported to the Independent Broad-based Anti-corruption Commission and Victoria Police.

If you are offered a gift, benefit or hospitality at work, take the GIFT Test to guide your decision-making:

Table 1. GIFT test

G	Giver	Who is providing the gift, benefit or hospitality and what is their relationship to me? Does my role require me to select contractors, award grants, regulate industries or determine government policies? Could the person or organisation benefit from a decision I make?
I	Influence	Are they seeking to gain an advantage or influence my decisions or actions? Has the gift, benefit or hospitality been offered to me publicly or privately? Is it a courtesy or a token of appreciation or a valuable non-token offer? Does its timing coincide with a decision I am about to make or endorse a product or service?
F	Favour	Are they seeking a favour in return for the gift, benefit or hospitality? Has the gift, benefit or hospitality been offered honestly? Has the person or organisation made several offers over the last 12 months? Would accepting it create an obligation to return a favour?
T	Trust	Would accepting the gift, benefit or hospitality diminish public trust? How would the public view acceptance of this gift, benefit or hospitality? What would my colleagues, family, friends or associates think?

Accepting Non-Token Offers - Legitimate Business Reasons

All accepted non-token offers must be pre-approved in writing by the individual’s manager (via a Gifts, Benefits and Hospitality Declaration Form) and be consistent with the following requirements:

it does not raise an actual, potential or perceived conflict of interest or have the potential to bring the individual, the Authority or the public sector into disrepute (the GIFT test at Table 1 is a good reminder of what to think about in making this assessment)
there is a legitimate business reason for acceptance i.e. It is offered in the course of the individual’s official duties, relates to the individual’s responsibilities and has a benefit to the Authority, public sector or the State.

The business reason for accepting the non-token offer must be recorded on the Gifts, Benefits and Hospitality Declaration Form (Appendix 2) and provide sufficient detail to link the acceptance to the individual’s work functions and benefit to the Authority, public sector or State.

This information will also be recorded on the Authority Gifts, Benefits and Hospitality Register, which is required to be published on the Authority’s website annually.

Examples of acceptable and unacceptable levels of detail to be included when recording the business reason are below.

Unacceptable:

“Networking”

“Maintaining stakeholder relationships

Acceptable:

“Individual is responsible for evaluating and reporting outcomes of the Authority's sponsorship of Event A. Individual attended Event A in an official capacity and reported back to the Authority on the event.”

“Individual presented to a visiting international delegation. The delegation presented the Individual with a cultural item worth an estimated $200. Declining the gift would have caused offence. The Gift was accepted, written prior approval was subsequently obtained for the gift, which became property of the Authority.”

Declaring and recording non-token offers of gifts, benefits and hospitality

Individuals must declare all non-token offers, whether accepted or declined by completing and providing a Gifts, Benefits and Hospitality Declaration Form (Appendix 2) to the Governance function within the Executive, Governance, Legal and Secretariat Business Unit. Where there is no opportunity to seek written prior approval from their manager prior to accepting a gift or hospitality, the individual must seek approval from their manager and complete an Authority Gifts, Benefits and Hospitality Declaration Form within five business days.

Ownership of gifts offered to individuals

Non-token gifts accepted by an individual for their work or contribution may be retained by the individual where their manager or organisational delegate has provided prior written approval. Employees must transfer to the Authority official or ceremonial gifts or any gift of cultural significance or significant value (over $50).

7. Management of the provision of gifts, benefits and hospitality

This section sets out the requirements for providing gifts, benefits and hospitality.

Gifts, benefits and hospitality may be provided to welcome guests, to facilitate the development of business relationships, to further public sector business outcomes and to celebrate achievements.

Requirements for providing gifts, benefits and hospitality

When deciding whether to provide gifts, benefits or hospitality, or the type of gift, benefit or hospitality to provide, individuals must ensure:

any gift, benefit or hospitality is provided for a business reason in that it furthers the conduct of official business or other legitimate organisational goals, or promotes and supports government policy objectives and priorities
that any costs are proportionate to the benefits obtained for the State, and would be considered reasonable in terms of community expectations (the ‘HOST’ test at Table 2 is a good reminder of what to think about in making this assessment)
it does not raise an actual, potential or perceived conflict of interest.

The HOST test is a good reminder of what to think about when deciding whether to offer hospitality or gifts to staff or stakeholders:

Table 2. HOST test

H	Hospitality	To whom is the gift or hospitality being provided? Will recipients be external business partners or individuals of the host organisation?
O	Objectives	For what purpose will hospitality be provided? Is the hospitality being provided to further the conduct of official business? Will it promote and support government policy objectives and priorities? Will it contribute to staff wellbeing and workplace satisfaction?
S	Spend	Will public funds be spent? What type of hospitality will be provided? Will it be modest or expensive, and will alcohol be provided as a courtesy or an indulgence? Will the costs incurred be proportionate to the benefits obtained?
T	Trust	Will public trust be enhanced or diminished? Could you publicly explain the rationale for providing the gift or hospitality? Will the event be conducted in a manner that upholds the reputation of the public sector? Have records in relation to the gift or hospitality been kept in accordance with reporting and recording procedures?

Containing costs

Individuals should contain costs involved in the provision of gifts, benefits and hospitality wherever possible. The following questions may be useful to assist individuals to decide the type of gift, benefit or hospitality to provide.

Will the cost of providing the gift, benefit or hospitality be proportionate to the potential benefits?
Is an external venue necessary or does the organisation have facilities to host the event?
Is the proposed catering or hospitality proportionate to the number of attendees?
Does the size of the event and the number of attendees align with intended outcomes?
Will providing the gift, benefit or hospitality be viewed by the public as excessive?

Records relating to the provision of hospitality, such as approval forms and records relating to procurement and expenditure, must be retained in accordance with their requirements under the Financial Management Act 1994 (Vic).

Reporting

The information from Gifts, Benefits and Hospitality forms will also be recorded on the Authority Gifts, Benefits and Hospitality Register. To provide public transparency, the Gifts, Benefit and Hospitality Register will be published annually on Authority’s public website. The register will make public all offers whether accepted or declined valued over $50.

The Authority’s Audit and Risk Committee will receive a report at least annually on the administration and quality control of the gifts, benefits and hospitality policy, processes and register. The report will include analysis of the Authority’s gifts, benefits and hospitality risks (including multiple offers from the same source and offers from business associates), risk mitigation measures and any proposed improvements.

8. Authorising Officer and organisational delegate

This policy is issued under the authority of the Authority’s Audit and Risk Management Committee, a Committee of the Governing Board and is subject to annual review.

9. Breaches

Disciplinary action consistent with the relevant industrial instrument and legislation, including dismissal, may be taken where an individual fails to adhere to this policy. This includes where an individual fails to avoid wherever possible or to identify, declare and manage a conflict of interest related to gifts, benefits and hospitality in accordance with the Authority’s Conflict of interest policy.

Actions inconsistent with this policy may constitute misconduct under the Public Administration Act 2004 (Vic), which includes:

breaches of the binding Code of Conduct for Victorian Public Sector Employees, such as sections of the code covering conflict of interest (section 3.7), public trust (section 3.9) and gifts and benefits (section 4.2)
individuals making improper use of their position.

For further information on managing breaches of this policy, please contact the Governance function within the Executive, Governance, Legal and Secretariat Business Unit.

The Authority will communicate its policy on the offering and provision of gifts, benefits and hospitality to contractors, consultants and other business associates. Those identified as acting inconsistently with this policy may be subject to contract re-negotiation, including termination.

10. Speak up

Employees who consider that gifts, benefits and hospitality or conflict of interest within the Authority may not have been declared or is not being appropriately managed should speak up and notify their manager or the Governance function within the Executive, Governance, Legal and Secretariat Business Unit.

The Authority will take decisive action, including possible disciplinary action, against employees who discriminate against or victimise those who speak up in good faith.

11. Contacts for further information

A conflict of interest resulting from the acceptance of a gift, benefit or hospitality may not always clear. Employees who are unsure about a possible conflict of interest, or the application of this policy, should contact the Governance function within the Executive, Governance, Legal and Secretariat Business Unit for advice.

This policy should be read in conjunction with other AUTHORITY integrity policies and guidance including:

Conflict of Interest Policy – employees and Governing Board
Risk Management Policy and Procedures
Code of conduct for Victorian Public Sector Employees 2015
Code of conduct for Directors of Victorian Public Entities 2016
VPSC’s Gifts, benefits and hospitality policy framework
VPSC’s Managing Conflicts of Interest: A Guide to Policy Development and Implementation

13. Relevant legislation includes:

Standing Directions of the Minister for Finance 2016 (under the Financial Management Act 1994 (Vic)
Independent Broad-based Anti-corruption Commission Act 2011 (Vic)
Financial Management Act 1994 (Vic)
Public Administration Act 2004 (Vic)
Long Service Benefits Portability Act 2018 (Vic)

14. Policy Management Details

Contact person	Head of Governance and Policy
Version number	1.1
File Reference	D19/270077
Approved by	Governing Board
Effective date	14 August 2019
Date amended last	12 August 2020
Review due date	3 years from Date amended last

Summary of Amendments	Date	Description of amendment	Person amending
Summary of Amendments	12 August 2020	Amend review date to 3 years and effective date from 19 August 2019 to 12 August 2020	Suzie Thoraval upon approval by the Governing Board

Appendix 1

Victorian Public Sector Minimum Accountabilities

Public officials offered gifts, benefits and hospitality:

do not, for themselves or others, seek or solicit gifts, benefits and hospitality.
refuse all offers of gifts, benefits and hospitality that:
- are money, items used in a similar way to money, or items easily converted to money
- give rise to an actual, potential or perceived conflict of interest
- may adversely affect their standing as a public official or which may bring their public sector employer or the public sector into disrepute
- are non-token offers without a legitimate business benefit.
declare all non-token offers (valued at $50 or more) of gifts, benefits and hospitality (whether accepted or declined) on their organisation’s register and seek written prior approval from their manager or organisational delegate to accept any non-token offer and
refuse bribes or inducements and report inducements and bribery attempts to the head of the public sector organisation or their delegate (who should report any criminal or corrupt conduct to Victoria Police or the Independent Broad-based Anti-corruption Commission).

Public officials providing gifts, benefits and hospitality:

ensure that any gift, benefit and hospitality is provided for a business purpose, in that it furthers the conduct of official business or other legitimate organisational goals, or promotes and supports government policy objectives and priorities
ensure that any costs are proportionate to the benefits obtained for the State and would be considered reasonable in terms of community expectations
ensure that when hospitality is provided, individuals demonstrate professionalism in their conduct and uphold their obligation to extend a duty of care to other participants.

Heads of public sector organisations:

establish, implement and review organisational policies and processes for the effective management of gifts, benefits and hospitality that comprehensively address these minimum accountabilities
establish and maintain a register for gifts, benefits and hospitality offered to public officials that, at a minimum, records sufficient information to effectively monitor, assess and report on these minimum accountabilities
communicate and make clear within the organisation that a breach of the gifts, benefits and hospitality policies or processes may constitute a breach of binding codes of conduct and may constitute criminal or corrupt conduct, and may result in disciplinary action
establish and communicate a clear policy position to business associates on the offering of gifts, benefits and hospitality to employees, including possible consequences for a business associate acting contrary to the organisation’s policy position (this must take into consideration any Whole of Victorian Government supplier codes of conduct)
report at least annually to the organisation’s audit committee on the administration and quality control of its gifts, benefits and hospitality policy, processes and register including analysis of the organisation’s gifts, benefits and hospitality risks (including repeat offers from the same source and offers from business associates), risk mitigation measures and any proposed improvements
publish the organisation’s gifts, benefits and hospitality policy and register on the organisation’s public website which should cover the current and the previous financial year (applies only to organisations with an established website)
establish, implement and review organisational policies and processes for the effective management of gifts, benefits and hospitality that comprehensively address these minimum accountabilities.

Appendix 2

Gifts, Benefits and Hospitality Declaration Form

This declaration form supports the Portable Long Service Authority’s Gifts, Benefits and Hospitality Policy. Employees must declare all non-token offers of gifts, benefits and hospitality (whether accepted or declined) using this form and seek written prior approval from their manager or organisational delegate to accept any non-token offer.

Individual to complete
Name		Declaration date
Position title		Contact number
Business Unit		Team (if relevant)

Details of the gift, benefit or hospitality

1. Date offered
2. Describe the gift, benefit or hospitality offered
3. Estimated or actual value
4. Offered by (name of individual/organisation making the offer)
5. Is the person or entity making the offer a business associate of the organisation (Y/N)? If yes, describe the relationship between them and the organisation. If no, describe the relationship between you and the person or organisation making the offer.
6. Reason for making the offer
7. Would accepting the offer: create an actual potential or perceived conflict of interest exist (Y/N); or bring you, the organisation or the public sector into disrepute (Y/N)? (If either is answered YES, then the offer must be declined in accordance with the minimum accountabilities)	Detail of conflict of interest:
8. Is there a legitimate business benefit to the organisation, public sector or State for accepting the offer, i.e. does it meet the following: it was offered during the course of your official duties (Y/N); and it relates to your official responsibilities (Y/N); and it has a benefit to the organisation, public sector or State (Y/N). (If NO then offer must be declined, and if YES then the business benefit must be detailed, in accordance with the minimum accountabilities).	Detail of business benefit:
I accepted the offer	YES / NO
Signature

Manager to complete (prior to the GBH offer being accepted)

Name		Declaration date
Position title		Contact number
Business Unit		Team (if relevant)

Complete if individual declined offer

DECLINED GBH Offers need to be Declared but do not require Manager’s Approval.

Complete if individual accepted offer

I have reviewed this declaration form and, confirm that, to my knowledge, accepting this offer:
1. does not raise an actual, potential or perceived conflict of interest for the individual or myself; and
2. will not bring the individual, myself, the organisation or the public sector into disrepute; and
3. will provide a clear business benefit to the organisation, the public sector or the State.

Signature:

Date:

Detail decision regarding ownership of tangible offers (e.g. specify whether employee retained gift; transferred to organisation’s ownership; returned to offeror; donated to charity etc.)

Completed form to be submitted to the Governance function within the Executive, Governance, Legal and Secretariat Business Unit for inclusion on PLSA’s Gifts, Benefits and Hospitality Register.

Governance

Reviewed 30 June 2021

Gifts, benefits and hospitality register - Portable Long Service