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This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia
Financial Management Bill 2006
CONTENTS
Part 1 -- Preliminary
1. Short title 2
2. Commencement 2
3. Terms used in this Act 2
4. Relationship with other laws 5
5. Modified application of Act for certain purposes 5
6. Amendment of Schedule 1 by regulations 6
Part 2 -- Accounts
Division 1 -- Public Ledger
7. Public Ledger 7
8. Consolidated Account 7
9. Treasurer's Advance Account 7
10. Treasurer's special purpose accounts 8
Division 2 -- Public Bank Account and other
bank accounts
11. Public Bank Account 8
12. Application of Public Bank Account 9
13. Treasurer may authorise agencies to open and
maintain bank accounts 9
14. Bank accounts not to be overdrawn unless
approved by Treasurer 10
15. Restrictions on opening and maintaining certain
bank accounts 10
Division 3 -- Agency special purpose accounts
16. Agency special purpose accounts 10
100--3 page i
Financial Management Bill 2006
Contents
Division 4 -- Administration of special purpose
accounts
17. Special purpose statements and trust statements 11
18. Payments to and from special purpose accounts 11
19. Special purpose accounts not to be overdrawn
unless approved by Treasurer 12
20. Transfer of excess amounts from special purpose
accounts 12
21. Closure of special purpose accounts and transfer of
service 13
22. Other laws not affected 13
Part 3 -- Funds management
Division 1 -- Supply and appropriation
23. Appropriation of certain receipts 14
24. Payments before grant of supply 15
25. Transfers of appropriations 16
26. Transfers to suspense account 17
27. Expenditure in advance of appropriation 18
28. Authorised recoverable advances 18
29. Limits on expenditure 20
30. Unexpended appropriations to lapse 20
31. Payments from Public Bank Account Interest
Earned Account 21
Division 2 -- Payments and transfers
32. Certain payments and transfers to be authorised 21
33. Payments charged to Consolidated Account 22
34. Deposit of money received 22
35. Money paid into Public Bank Account 22
36. Other money to be credited to special purpose
accounts 22
Division 3 -- Investments
37. Investment by Treasurer 24
38. Proceeds of investment by Treasurer 24
39. Investment by agencies 25
Division 4 -- Annual estimates of statutory
authorities
40. Accountable authorities of statutory authorities to
prepare and submit annual estimates 27
page ii
Financial Management Bill 2006
Contents
Division 5 -- Resource agreements
41. Accountable authorities to submit draft resource
agreements 28
42. Period to which resource agreements relate 28
43. Matters to be included in resource agreements 28
44. Resource agreements to be agreed if possible 28
45. Treasurer's powers in relation to draft resource
agreements 29
46. Agreement as to draft resource agreements 29
Division 6 -- Write-offs and recoveries
47. Terms used in this Division 30
48. Write-offs 30
49. Liability of officers for losses 31
50. Recovery of amounts for which officers are liable 32
51. Under Treasurer and accountable authorities may
direct investigations in respect of losses 33
Part 4 -- Accountable authorities
52. Agencies to have accountable authority 35
53. Functions of accountable authorities 35
54. Accountable authorities for departments 35
55. Accountable authorities for statutory authorities 36
56. Declarations by Treasurer as to agencies and
accountable authorities 36
57. Chief finance officer 38
58. Accountable authorities to ensure agencies have
financial management system 38
Part 5 -- Reports
Division 1 -- Treasurer's reports
59. Treasurer's reports and statements 39
Division 2 -- Annual reports by agencies
60. Interpretation for sections 60 and 61 39
61. Annual reports by accountable authorities 41
62. Financial statements 42
63. Accountable authorities to submit financial reports
and other information 43
64. Minister to table accountable authority's report 43
page iii
Financial Management Bill 2006
Contents
65. Minister to inform Parliament if annual report and
Auditor General's opinion cannot be tabled on
time 44
Division 3 -- Reporting on abolition of agencies
66. Terms used in this Division 45
67. Purpose of this Division 45
68. Reporting on abolition of agency 45
69. Content of final report 46
70. Directions by Treasurer 47
71. Reporting officers entitled to reasonable assistance
and facilities and access to accounts 47
72. Reporting officers to submit financial statements
and information to Auditor General 48
Part 6 -- Miscellaneous
Division 1 -- Delegations and authorisations
73. Term used in this Division 49
74. Delegation by Treasurer 49
75. Delegation by Ministers 49
76. Delegation and authorisation by Under Treasurer 49
77. General provisions about delegations and
authorisations 50
Division 2 -- Treasurer's instructions
78. Treasurer's instructions 51
Division 3 -- Miscellaneous powers and duties
79. Treasurer's power to require information 51
80. Act of grace payments 52
81. Certain actions and arrangements not to be taken or
entered into 52
82. Minister to report decisions not to provide certain
information about agencies 52
Division 4 -- General
83. Supplementary provision about laying documents
before Parliament 53
84. Regulations 53
85. Review of Act 54
page iv
Financial Management Bill 2006
Contents
Schedule 1 -- Statutory authorities
Schedule 2 -- Modifications to the
Act as to certain administrations
Schedule 3 -- Modifications to the
Act as to the Office of the
Auditor General
Defined Terms
page v
Western Australia
LEGISLATIVE ASSEMBLY
(As amended in committee of the whole)
Financial Management Bill 2006
A Bill for
An Act to provide for the management, administration and reporting
of the public finances of the State, and for related purposes.
The Parliament of Western Australia enacts as follows:
page 1
Financial Management Bill 2006
Part 1 Preliminary
s. 1
Part 1 -- Preliminary
1. Short title
This is the Financial Management Act 2006.
2. Commencement
5 This Act comes into operation on a day fixed by proclamation.
3. Terms used in this Act
In this Act, unless the contrary intention appears --
"accountable authority", of an agency, means the person or
body determined under section 54, 55 or 56, as the case
10 requires;
"accounts", in paragraph (b)(i) of the definition of "officer"
and in sections 56(1)(b), 63(2)(b), 64(1)(b) and 71, has the
meaning given to that term in the Auditor General Act 2006
section 4(1);
15 "agency" means a department, a sub-department or a statutory
authority;
"agency special purpose account" means an account referred
to in section 16(1);
"Appropriation Act" means an Act appropriating the
20 Consolidated Account for a financial year for the recurrent
services and other purposes for the year, or for the capital
purposes for the year, as expressed in the Act;
"bank" means --
(a) an ADI (authorised deposit-taking institution) as
25 defined in the Commonwealth Banking Act 1959
section 5; or
(b) a bank constituted by a law of a State or the
Commonwealth; or
(c) in relation to a bank not in Australia -- a bank
30 approved by the Treasurer;
page 2
Financial Management Bill 2006
Preliminary Part 1
s. 3
"Consolidated Account" means the account of that name
established by the Constitution Act 1889 section 64 and
referred to in section 8;
"department" means a department of the Public Service other
5 than --
(a) a department that is a statutory authority; or
(b) a department that, under the Public Sector
Management Act 1994 section 3(3), is taken to be a
part of an organisation as defined in section 3(1) of
10 that Act;
"Joint Standing Committee on Audit" means the joint
standing committee established by the Houses of
Parliament under the Auditor General Act 2006 section 43;
"Minister" means --
15 (a) in relation to an agency that is a department or a
sub-department -- the Minister to whom the
administration of the department or sub-department is
committed by the Governor; or
(b) in relation to an agency that is a statutory authority
20 constituted by or under an Act -- the Minister to
whom the administration of the Act by or under
which the statutory authority is constituted is
committed by the Governor; or
(c) in relation to an agency that is a statutory authority
25 not constituted by or under an Act -- the Minister to
whom the administration of the statutory authority is
for the time being committed by the Governor;
"officer" means a person --
(a) who is employed or engaged for the purposes of an
30 agency, whether as a public service officer under the
Public Sector Management Act 1994, under a
contract for services or otherwise; and
page 3
Financial Management Bill 2006
Part 1 Preliminary
s. 3
(b) who is charged with or performs any duty consisting
of or relating to --
(i) keeping the accounts of the agency; or
(ii) collecting, receiving, keeping in custody,
5 banking or accounting for public money or
other money or statutory authority money; or
(iii) disbursing public money or other money or
statutory authority money; or
(iv) purchasing, receiving, issuing, selling,
10 keeping in custody, controlling, managing or
disposing of, or accounting for, public
property or other property;
"other money" means money collected, received or held by the
State or a statutory authority for or on behalf of a person
15 other than the State or a statutory authority;
"other property" means property that is held by the State or a
statutory authority for or on behalf of a person other than
the State or a statutory authority;
"Public Bank Account" means the account of that name
20 constituted under section 11 and includes any other account
stated by this Act or another written law to form part of the
Public Bank Account;
"Public Bank Account Interest Earned Account" means the
account of that name referred to in section 10(d);
25 "Public Ledger" means the accounts referred to in section 7;
"public money" means money collected, received or held by
any person for or on behalf of the State;
"public property" means all property, other than public money
and statutory authority money, held for or on behalf of the
30 State or a statutory authority;
"resource agreement" means a resource agreement under
Part 3 Division 5;
page 4
Financial Management Bill 2006
Preliminary Part 1
s. 4
"special purpose account" means an agency special purpose
account or an account referred to in section 10;
"statutory authority" means a person or body listed in
Schedule 1;
5 "statutory authority money" means money collected, received
or held by any person for or on behalf of a statutory
authority;
"sub-department" means an entity in respect of which a
declaration under section 56(2) has effect;
10 "the estimates" means the annual estimates of receipts and
payments in respect of the Consolidated Account;
"Treasurer" means the Treasurer of the State;
"Treasurer's instructions" means instructions issued under
section 78;
15 "Treasury" means the department of the Public Service
principally assisting in the administration of this Act;
"Under Treasurer" means the chief executive officer of the
Treasury.
4. Relationship with other laws
20 (1) Except as stated in subsection (2) or another provision of this
Act, this Act prevails to the extent of any inconsistency with
another written law (whether enacted before or after the
commencement of this Act).
(2) Subsection (1) does not apply if another Act expressly states
25 that, or to the effect that, a provision of that Act has effect
despite the provisions, or a specified provision, of this Act.
5. Modified application of Act for certain purposes
(1) Despite the definition of "department" in section 3, the
administration of each of the following --
30 (a) the Legislative Assembly;
(b) the Legislative Council;
page 5
Financial Management Bill 2006
Part 1 Preliminary
s. 6
(c) the Parliamentary Services Department;
(d) the Parliamentary Commissioner for Administrative
Investigations;
(e) the Information Commissioner,
5 is taken to constitute a department for the purposes of this Act,
and the regulations may provide that the administration of any
other body or office established under a written law is taken to
constitute one or more departments for the purposes of this Act.
(2) This Act has effect in relation to an administration that is
10 referred to in subsection (1) subject to the modifications that are
set out in Schedule 2.
(3) This Act has effect in relation to the department of the Public
Service known as the Office of the Auditor General subject to
the modifications that are set out in Schedule 3.
15 6. Amendment of Schedule 1 by regulations
Schedule 1 may be amended by the regulations.
page 6
Financial Management Bill 2006
Accounts Part 2
Public Ledger Division 1
s. 7
Part 2 -- Accounts
Division 1 -- Public Ledger
7. Public Ledger
The Treasurer is to cause to be established and maintained,
5 under the separate heads directed by the Treasurer, a Public
Ledger consisting of the following accounts --
(a) the Consolidated Account;
(b) the Treasurer's Advance Account;
(c) the Treasurer's special purpose accounts.
10 8. Consolidated Account
(1) The Consolidated Fund established under the Constitution
Act 1889 and in existence immediately before the
commencement of this section constitutes the Consolidated
Account for the purposes of this Act.
15 (2) There is to be credited to the Consolidated Account all public
money or statutory authority money required by or under this
Act or another written law to be credited to the Consolidated
Account.
(3) There may be credited to the Consolidated Account any grants,
20 advances, contributions, repayments or other amounts as --
(a) determined by the Treasurer; or
(b) prescribed by the regulations for the purposes of this
subsection.
9. Treasurer's Advance Account
25 The Treasurer's Advance Account referred to in section 7(b)
may be operated by the Treasurer for the purposes referred to in,
and in accordance with, section 28 and any Treasurer's Advance
Authorisation Act for the relevant financial year.
page 7
Financial Management Bill 2006
Part 2 Accounts
Division 2 Public Bank Account and other bank accounts
s. 10
10. Treasurer's special purpose accounts
The Treasurer's special purpose accounts referred to in
section 7(c) are to consist of --
(a) any account established by the Treasurer as a
5 Treasurer's special purpose account for the purposes
determined by the Treasurer; and
(b) suspense accounts established for the purposes of
section 26; and
(c) any account established to hold money transferred under
10 section 39(5); and
(d) the Public Bank Account Interest Earned Account
established for the purpose of holding money credited to
that account under section 38(9) pending its allocation
and payment as required or permitted under this Act or
15 another written law; and
(e) any account established under a written law and
determined by the Treasurer to be a Treasurer's special
purpose account; and
(f) any account established to hold other money and
20 determined by the Treasurer to be a Treasurer's special
purpose account.
Division 2 -- Public Bank Account and other bank accounts
11. Public Bank Account
(1) The account called the Public Bank Account that --
25 (a) was opened and maintained by the Treasurer under the
Financial Administration and Audit Act 1985 in the
name of the Government of Western Australia; and
(b) was in existence immediately before the commencement
of this section,
30 constitutes the Public Bank Account for the purposes of
this Act.
page 8
Financial Management Bill 2006
Accounts Part 2
Public Bank Account and other bank accounts Division 2
s. 12
(2) The Public Bank Account is to be operated on the terms and
conditions agreed between the Treasurer and the bank or banks
with which it is maintained and under the subdivisions
determined by the Treasurer --
5 (a) for the receipt, custody, payment and transmission of
money; and
(b) for advances to be made and for charges in respect of
advances; and
(c) for interest to be payable by the bank or banks on
10 balances and to the bank or banks on advances; and
(d) for the conduct generally of the banking business of
the State.
12. Application of Public Bank Account
The Treasurer may apply any money standing to the credit of
15 the Public Bank Account to make any payment that may
lawfully be charged to --
(a) an account forming part of the Public Ledger; or
(b) an agency special purpose account.
13. Treasurer may authorise agencies to open and maintain
20 bank accounts
(1) If an agency is not authorised to open and maintain a bank
account under another written law, the Treasurer may authorise
the agency to open and maintain a bank account for the
purposes, and subject to the terms and conditions, approved by
25 the Treasurer.
(2) Except as otherwise directed by the Treasurer, a bank account
opened and maintained under subsection (1) forms part of the
Public Bank Account.
page 9
Financial Management Bill 2006
Part 2 Accounts
Division 3 Agency special purpose accounts
s. 14
14. Bank accounts not to be overdrawn unless approved by
Treasurer
Except with, and in accordance with, the prior approval of the
Treasurer, the accountable authority of an agency is not to cause
5 or permit a bank account maintained under this Division to be
overdrawn.
15. Restrictions on opening and maintaining certain bank
accounts
(1) A bank account for the receipt, custody, payment or
10 transmission of public money, statutory authority money or
other money is not to be opened or maintained otherwise than in
accordance with this Division or another written law.
(2) In subsection (1) --
"other money" means other money to which section 36(2)
15 applies.
Division 3 -- Agency special purpose accounts
16. Agency special purpose accounts
(1) The agency special purpose accounts of an agency consist of --
(a) any account established for the purposes of the
20 operations of the agency; and
(b) any account established for the agency under a written
law and stated in the written law to be, or determined by
the Treasurer to be, an agency special purpose account;
and
25 (c) any account established to hold other money and
determined by the Treasurer to be an agency special
purpose account; and
(d) any account established by the agency for the purposes
approved by the Treasurer and determined by the
30 Treasurer to be an agency special purpose account.
page 10
Financial Management Bill 2006
Accounts Part 2
Administration of special purpose accounts Division 4
s. 17
(2) The accountable authority of an agency is to maintain records
that enable the accountable authority to account separately for
each agency special purpose account of the agency.
Division 4 -- Administration of special purpose accounts
5 17. Special purpose statements and trust statements
(1) The accountable authority of an agency is to prepare --
(a) a special purpose statement for a special purpose
account operated by the agency that is referred to in
section 10(a) or 16(1)(d); and
10 (b) a trust statement for a special purpose account operated
by the agency that is referred to in section 10(f)
or 16(1)(c).
(2) A special purpose statement or a trust statement is to contain the
information prescribed by the Treasurer's instructions for the
15 special purpose account concerned.
(3) The accountable authority is to send the special purpose
statement or trust statement to the Treasurer.
(4) When the Treasurer approves the special purpose statement or
trust statement, the accountable authority is to send a copy of it
20 to the Auditor General.
18. Payments to and from special purpose accounts
(1) There is to be credited to a special purpose account --
(a) any money required or authorised by this Act or another
written law to be credited to the account; and
25 (b) any money appropriated by an Act for the purposes for
which the account is established, or paid or advanced for
those purposes under section 24 or 28 or a Treasurer's
Advance Authorisation Act; and
page 11
Financial Management Bill 2006
Part 2 Accounts
Division 4 Administration of special purpose accounts
s. 19
(c) any money that may be retained by the agency that
operates the account because of a determination under
section 23; and
(d) any money, not mentioned in another paragraph of this
5 subsection, lawfully received for the purposes for which
the account is established.
(2) There is to be charged to a special purpose account --
(a) any expenditure required or authorised by this Act or
another written law to be charged to the account; and
10 (b) any other expenditure lawfully incurred for the purposes
for which the account is established.
19. Special purpose accounts not to be overdrawn unless
approved by Treasurer
(1) Except with, and in accordance with, the prior approval of the
15 Treasurer, the accountable authority of an agency is not to cause
or permit a special purpose account operated by the agency to
be overdrawn.
(2) If the Treasurer approves a special purpose account to be
overdrawn, the overdraft --
20 (a) is taken to be an advance to be charged in the relevant
financial year to the Treasurer's Advance Account; and
(b) is subject to the terms and conditions determined by the
Treasurer.
20. Transfer of excess amounts from special purpose accounts
25 (1) If satisfied that there is money standing to the credit of a special
purpose account that is not reasonably required for the purposes
of that account, the Treasurer may direct that all or part of that
money be credited to the Consolidated Account.
(2) Subsection (1) does not apply if another written law expressly
30 provides otherwise.
page 12
Financial Management Bill 2006
Accounts Part 2
Administration of special purpose accounts Division 4
s. 21
21. Closure of special purpose accounts and transfer of service
(1) The Treasurer may, after consulting with the Minister, direct
that a special purpose account operated by an agency, other than
a special purpose account established by an Act, be closed.
5 (2) Subject to subsection (3), when a special purpose account is
closed and all the liabilities of the account have been paid, the
money standing to the credit of the account is to be credited --
(a) to any account or fund, or in any other manner, specified
in the special purpose statement or trust statement
10 relating to that account; or
(b) to the Consolidated Account if --
(i) there is no special purpose statement or trust
statement relating to that account; or
(ii) no account, fund or manner is specified in the
15 special purpose statement or trust statement
relating to that account.
(3) If a special purpose account has been established in relation to
the provision of a particular service or performance of a
particular function (the "relevant service") and --
20 (a) the account is closed; or
(b) the responsibility for the provision of the relevant
service is transferred,
the Treasurer may direct that any money standing to the credit
of the account, being money determined by the Treasurer to
25 relate to the provision of the relevant service, be transferred to
another special purpose account established in relation to the
provision of the relevant service, or in relation to the provision
or performance of services or functions that include the relevant
service.
30 22. Other laws not affected
Nothing in this Division affects the operation of another written
law that requires or authorises an agency to conduct its
operations through one or more accounts established under that
written law.
page 13
Financial Management Bill 2006
Part 3 Funds management
Division 1 Supply and appropriation
s. 23
Part 3 -- Funds management
Division 1 -- Supply and appropriation
23. Appropriation of certain receipts
(1) In this section --
5 "determination" means a determination under subsection (2);
"prescribed receipts", in relation to an agency, means any
money lawfully received by the agency other than money
received --
(a) by way of taxes or fines under a written law; or
10 (b) by way of royalty in respect of fauna or forest
produce or in respect of minerals, petroleum, water or
other natural resources of the State; or
(c) from the Commonwealth in the form of a general
purpose grant; or
15 (d) from any other source prescribed by the regulations
for the purposes of this definition.
(2) The Treasurer may make a determination providing for
prescribed receipts that are not greater than the monetary limit
specified in the determination to be retained by the agency that
20 receives them.
(3) A determination --
(a) applies to the financial year or financial years referred to
in the determination; and
(b) may be made before or after the start of a financial year
25 to which the determination applies; and
(c) may be revoked by the Treasurer at any time.
(4) If a determination is made before the estimates for a financial
year to which the determination applies have been tabled in the
Legislative Assembly, the appropriation item that includes the
30 service or function to which the determination relates is to be
page 14
Financial Management Bill 2006
Funds management Part 3
Supply and appropriation Division 1
s. 24
expressed in the estimates for the year to be subject to a
deduction in respect of retained receipts.
(5) If a determination is made after the estimates for a financial year
to which the determination applies have been tabled in the
5 Legislative Assembly, the Treasurer is to cause a copy of the
determination to be laid before each House of Parliament, or
dealt with under section 83, within 60 days after making the
determination.
(6) If, after a determination is made, the responsibility for the
10 service or function to which the determination relates is
transferred to another agency, the determination continues to
have effect as if it had been made in relation to prescribed
receipts received by that agency.
(7) An amount equal to the receipts retained for a financial year
15 under a determination is taken to have been appropriated for the
year for the service or function to which the determination
relates, and may be applied accordingly.
24. Payments before grant of supply
(1) If, before the end of a financial year (the "previous year"), no
20 supply is granted to meet the requirements of the next financial
year (the "current year"), the Treasurer may make and charge
to the Consolidated Account any payments and advances to
meet those requirements at the start of the current year that do
not exceed in total an amount equal to 20% of the total amount
25 appropriated for the previous year by the Appropriation Acts.
(2) The authority conferred on the Treasurer by subsection (1)
authorises payments and advances to be made only for the
purposes --
(a) for which expenditure was authorised for the previous
30 year by the Appropriation Acts; or
(b) for which expenditure was authorised under
section 27(1) to meet the requirements of the previous
year.
page 15
Financial Management Bill 2006
Part 3 Funds management
Division 1 Supply and appropriation
s. 25
(3) The authority conferred on the Treasurer by subsection (1)
ceases to have effect --
(a) at the end of the first 2 months of the current year; or
(b) on the commencement of an Act granting supply for the
5 current year,
whichever occurs first.
(4) On the commencement of the Appropriation Acts appropriating
the Consolidated Account for the current year, the payments and
advances made by the Treasurer under subsection (1) to meet
10 the requirements of the current year are taken to be expenditure
appropriated by those Acts for the current year in respect of the
purposes for which the payments and advances were made.
25. Transfers of appropriations
(1) In this section --
15 "general purpose" means a purpose --
(a) that is described in the estimates in general terms;
and
(b) that is of a kind likely to require expenditure from
2 or more appropriation items to meet that purpose in
20 a financial year.
(2) If, after the commencement of an Appropriation Act, the
responsibility for a service or function for which an
appropriation is made by the Act is transferred --
(a) the appropriation does not lapse; and
25 (b) any unexpended amount of the appropriation may be
issued and applied, in accordance with a determination
made by the Treasurer, for the purposes of that service
or function.
(3) Subsection (2) has effect despite the provisions of any
30 Appropriation Act.
page 16
Financial Management Bill 2006
Funds management Part 3
Supply and appropriation Division 1
s. 26
(4) Subject to subsection (5), if an amount is appropriated by an
Appropriation Act for a financial year by way of a central
appropriation for a general purpose, the Treasurer may direct
the transfer of a portion of that amount to another appropriation
5 item.
(5) The transfer may be made only to meet all or part of the actual
or estimated expenditure that accords with both the general
purpose and the purpose of the item to which the transfer is
made.
10 (6) If a portion of an amount is transferred under subsection (4)
from a central appropriation to another appropriation item,
expenditure against that portion --
(a) is taken to be expenditure under that item; and
(b) is to be recorded and reported under this Act
15 accordingly.
26. Transfers to suspense account
(1) In this section --
"operating account" means an agency special purpose account
established for the purposes of the operations of the
20 agency;
"relevant commitment" means a commitment --
(a) that is relevant to the financial year referred to in
subsection (2); and
(b) that relates to salaries, wages, superannuation, leave
25 or depreciation.
(2) The Treasurer may direct that an appropriation by an
Appropriation Act for a financial year may be transferred to a
suspense account to the extent necessary to meet a relevant
commitment, and such a transfer is taken to be a payment
30 correctly chargeable against that appropriation for that financial
year.
page 17
Financial Management Bill 2006
Part 3 Funds management
Division 1 Supply and appropriation
s. 27
(3) Money standing to the credit of a suspense account under
subsection (2) may only be --
(a) transferred when it needs to be applied for any relevant
commitment; or
5 (b) credited to the relevant operating account at the time or
times directed by the Treasurer.
27. Expenditure in advance of appropriation
(1) The Governor may, on the recommendation of the Treasurer,
authorise expenditure in a financial year that is not provided for
10 by an appropriation by an Appropriation Act for that year.
(2) The Treasurer may authorise expenditure in a financial year that
exceeds the amount appropriated by an Appropriation Act for
that year for expenditure of that kind.
(3) Expenditure may be authorised under subsection (1) or (2) only
15 to make payments in respect of extraordinary or unforeseen
matters.
(4) Payments made under subsection (1) or (2) in a financial year in
respect of extraordinary or unforeseen matters are --
(a) to be charged in that year to the Consolidated Account;
20 and
(b) to be provided for in an Appropriation Act in the next or
a later financial year.
28. Authorised recoverable advances
(1) The Treasurer may authorise advances to be made --
25 (a) on the terms and conditions determined by the
Treasurer --
(i) for the temporary financing of works and
services of the State (other than works and
services referred to in paragraph (b)); or
30 (ii) to a public authority; or
(iii) to the credit of a special purpose account; or
page 18
Financial Management Bill 2006
Funds management Part 3
Supply and appropriation Division 1
s. 28
(iv) for the purchase of stores;
or
(b) on the terms and conditions determined by the Treasurer
for the temporary financing of works and services
5 undertaken --
(i) in conjunction with, or on behalf of, the
Commonwealth, another State, a Territory, a
local government or other person; or
(ii) by the Commonwealth, another State, a
10 Territory, a local government or other person on
behalf of the State.
(2) In subsection (1)(a) --
"public authority" means --
(a) a Minister of the State; or
15 (b) an agency, authority or instrumentality of the State;
or
(c) a local government; or
(d) a body, whether corporate or unincorporate, that is
established or continued for a public purpose by or
20 under a written law.
(3) Advances made under subsection (1)(a) in a financial year
are --
(a) to be charged in that year to the Treasurer's Advance
Account; and
25 (b) to be recovered from the persons to whom or which, or
on whose behalf, the advances were made.
(4) Advances made under subsection (1)(b) in a financial year
are --
(a) to be charged in that year to the Treasurer's Advance
30 Account; and
page 19
Financial Management Bill 2006
Part 3 Funds management
Division 1 Supply and appropriation
s. 29
(b) to be recovered from the Commonwealth, other State,
Territory, local government or other person to, or on
whose behalf, the advances were made.
(5) An amount of an advance made under subsection (1)(a) or (b)
5 that is recovered is to be credited to the Treasurer's Advance
Account.
(6) An advance made under this section --
(a) is to be recovered before the end of the financial year for
which the advance is authorised under subsection (1); or
10 (b) is to be subject to a further authorisation under that
subsection.
29. Limits on expenditure
(1) Subject to subsections (2) and (3), the total expenditure that may
be authorised under sections 27(1) and (2) and 28(1) in a
15 financial year cannot exceed an amount equal to 3% of the total
amount appropriated for the previous financial year by the
Appropriation Acts.
(2) For the purpose of determining the total amount referred to in
subsection (1) in respect of a financial year, any advance made
20 under section 28(1)(a) or (b) that has been recovered in that
financial year, whether in respect of that financial year or a
previous financial year, is to be disregarded.
(3) Expenditure that exceeds the limit specified in subsection (1)
may be authorised by a Treasurer's Advance Authorisation Act
25 to make payments in respect of extraordinary or unforeseen
matters or to make advances for the purposes referred to in
section 28(1).
30. Unexpended appropriations to lapse
If the total amount of an appropriation by an Appropriation Act
30 for a financial year in respect of particular services or purposes
of an agency is not charged to the Consolidated Account for
page 20
Financial Management Bill 2006
Funds management Part 3
Payments and transfers Division 2
s. 31
those services or purposes by the end of that year, any
unexpended amount of the appropriation lapses.
31. Payments from Public Bank Account Interest Earned
Account
5 (1) Money standing to the credit of the Public Bank Account
Interest Earned Account at any time may be credited to the
Consolidated Account if the Treasurer so determines.
(2) Money standing to the credit of the Public Bank Account
Interest Earned Account at the end of a financial year is to be
10 credited at that time to the Consolidated Account.
(3) A reference in this section to money standing to the credit of the
Public Bank Account Interest Earned Account does not include
a reference to money held in that account pending payment as
provided for in a determination under section 38(5) or as
15 required under another written law.
Division 2 -- Payments and transfers
32. Certain payments and transfers to be authorised
(1) Unless otherwise expressly provided by the Treasurer's
instructions, a regulated payment or regulated transfer may be
20 made only if the payment or transfer is authorised in the manner
prescribed by the Treasurer's instructions.
(2) In subsection (1) --
"regulated payment" means --
(a) a payment that is to be charged to an account forming
25 part of the Public Ledger; or
(b) a payment made by an agency, whether to another
agency or otherwise;
"regulated transfer" means --
(a) a transfer between accounts forming part of the
30 Public Ledger; or
page 21
Financial Management Bill 2006
Part 3 Funds management
Division 2 Payments and transfers
s. 33
(b) a transfer between agency special purpose accounts
operated by the same agency.
33. Payments charged to Consolidated Account
A payment that is to be charged to the Consolidated Account
5 may be made --
(a) only in accordance with a warrant under the hand of the
Governor; and
(b) only if --
(i) the payment may be made under an
10 appropriation made by an Act; or
(ii) the payment is authorised to be charged to the
Consolidated Account by or under an Act.
34. Deposit of money received
A person who collects or receives public money or statutory
15 authority money is to deposit the money to the credit of a bank
account in accordance with the Treasurer's instructions.
35. Money paid into Public Bank Account
(1) Unless otherwise expressly provided in another written law,
money paid into the Public Bank Account is to be credited to, as
20 appropriate, the Consolidated Account, the Treasurer's Advance
Account, the Treasurer's special purpose accounts or an agency
special purpose account.
(2) If it is not possible to determine the appropriate account that is
to be credited with money paid into the Public Bank Account,
25 the money is to be credited to the Consolidated Account.
36. Other money to be credited to special purpose accounts
(1) In this section --
"relevant accountable authority" means the accountable
authority of the agency for the purposes of which the
30 relevant person is employed or engaged;
page 22
Financial Management Bill 2006
Funds management Part 3
Payments and transfers Division 2
s. 36
"relevant person" means a person employed or engaged for the
purposes of an agency.
(2) This section applies to other money --
(a) that, under a written law, is directed to be paid into the
5 Treasury or to the Treasurer for or on account of, or for
the use and benefit of, any person; or
(b) that comes into the possession or under the control of a
relevant person, in that person's capacity as a relevant
person, for or on account of, or for the use and benefit
10 of, any person.
(3) Other money that comes into the possession or under the control
of a relevant person is to be --
(a) paid into the Public Bank Account; or
(b) paid into a bank account maintained under section 13
15 that does not form part of the Public Bank Account,
and credited to a special purpose account.
(4) When other money is credited to a special purpose account
under subsection (3), the relevant accountable authority is to
prepare a trust statement, containing the information prescribed
20 by the Treasurer's instructions, for the account.
(5) The relevant accountable authority is to send the trust statement
to the Treasurer.
(6) When the Treasurer approves the trust statement, the relevant
accountable authority is to send a copy of it to the Auditor
25 General.
(7) Another written law that applies to other money prevails to the
extent of any inconsistency with this section.
page 23
Financial Management Bill 2006
Part 3 Funds management
Division 3 Investments
s. 37
Division 3 -- Investments
37. Investment by Treasurer
(1) The Treasurer may invest any money standing to the credit of
the Public Bank Account in a manner prescribed by the
5 regulations.
(2) Regulations made for the purposes of subsection (1) are not to
provide that money may be invested otherwise than in a manner
that trust funds may be invested under the Trustees Act 1962
Part III.
10 (3) A withdrawal of money for the purposes of investment under
subsection (1) does not have to be charged to any of the
accounts forming part of the Public Ledger.
(4) Subject to section 38(8), subsection (1) is in addition to, and
does not limit, a written law concerning the investment of
15 particular money.
38. Proceeds of investment by Treasurer
(1) In this section --
"investment" means investment by the Treasurer under
section 37.
20 (2) Money received from investment in repayment of principal is to
be paid into the Public Bank Account.
(3) Subject to this section, money received from investment is to be
paid into the Public Bank Account and credited to the
Consolidated Account.
25 (4) Money received from investment that is money to which the
Road Safety Council Act 2002 section 12(2)(d) applies is to be
credited in accordance with that provision.
page 24
Financial Management Bill 2006
Funds management Part 3
Investments Division 3
s. 39
(5) The Treasurer may make and give effect to a determination that
provides for money received from investment --
(a) to be credited to one or more special purpose accounts
specified in the determination; or
5 (b) to be paid to one or more statutory authorities or other
persons specified in the determination,
at the rate determined by the Treasurer and specified in the
determination.
(6) The rate determined by the Treasurer under subsection (5) is not
10 to exceed the rate of return on the investment of money in the
Public Bank Account.
(7) Subsection (5) does not apply in relation to the investment of
public money held in a special purpose account unless another
written law provides, either expressly or by implication, that
15 income derived from that public money is to be credited to the
special purpose account.
(8) Another written law has no effect to the extent that it authorises
or requires a person (other than the Treasurer) or a statutory
authority to invest particular money, if there is a determination
20 in effect under subsection (5), made by agreement between the
Treasurer and the person or statutory authority, relating to a
special purpose account in which that money is held.
(9) Money received from investment may be credited to the Public
Bank Account Interest Earned Account pending being dealt
25 with under subsection (3), (4) or (5).
(10) Subject to subsection (4), this section has effect despite any
written law concerning the distribution of income derived from
the investment of particular money.
39. Investment by agencies
30 (1) Subsection (2) applies if --
(a) a department or sub-department holds other money; or
page 25
Financial Management Bill 2006
Part 3 Funds management
Division 3 Investments
s. 39
(b) a statutory authority holds statutory authority money or
other money,
whether in the Public Bank Account or in a bank account
maintained under section 13 that does not form part of the
5 Public Bank Account.
(2) If this subsection applies, the Treasurer may authorise the
department, sub-department or statutory authority to invest
money referred to in subsection (1) --
(a) in the same manner as money in the Public Bank
10 Account may be invested under section 37; and
(b) in accordance with any written directions issued by the
Treasurer, which may include directions about how
income from investment under this section is to be dealt
with.
15 (3) Subsection (2) has effect --
(a) subject to another written law concerning the investment
of particular money; and
(b) for money in an agency special purpose account --
subject to the terms of any trust statement relating to the
20 account.
(4) Subsection (2) does not limit the power of --
(a) a department or sub-department to hold public money or
other money; or
(b) a statutory authority to hold statutory authority money or
25 other money,
in an interest bearing bank account maintained under section 13
but, for public money referred to in paragraph (a), the interest is
to be paid into the Public Bank Account and credited to the
Consolidated Account.
30 (5) If --
(a) a department or sub-department holds other money; or
page 26
Financial Management Bill 2006
Funds management Part 3
Annual estimates of statutory authorities Division 4
s. 40
(b) a statutory authority holds statutory authority money or
other money,
in a bank account that does not form part of the Public Bank
Account, the department, sub-department or statutory authority
5 may transfer that money to the Public Bank Account for
investment under section 37.
(6) Subsection (5) has effect --
(a) subject to another written law concerning the investment
of particular money; but
10 (b) despite another written law requiring money to be held
in a particular bank account.
Division 4 -- Annual estimates of statutory authorities
40. Accountable authorities of statutory authorities to prepare
and submit annual estimates
15 (1) Unless otherwise directed in writing by the Treasurer, the
accountable authority of a statutory authority is to prepare
annual estimates of the financial operations of the statutory
authority (the "annual estimates") in the manner prescribed by
the Treasurer's instructions.
20 (2) The accountable authority is to submit the annual estimates to
the Minister for approval at the time determined by the
Treasurer and in the manner prescribed by the Treasurer's
instructions.
(3) The Minister may --
25 (a) approve the annual estimates; or
(b) reject them and require the accountable authority to
prepare and submit for approval amended annual
estimates within the period that the Minister directs.
(4) Subsection (3) also applies to amended annual estimates
30 submitted under that subsection.
page 27
Financial Management Bill 2006
Part 3 Funds management
Division 5 Resource agreements
s. 41
Division 5 -- Resource agreements
41. Accountable authorities to submit draft resource
agreements
(1) If directed in writing by the Treasurer to do so in respect of a
5 financial year of the agency, the accountable authority of an
agency is to submit a draft resource agreement for the agency to
the Treasurer for his or her agreement.
(2) The accountable authority of an agency is to submit the draft
resource agreement --
10 (a) not later than 3 months before the start of the next
financial year of the agency; or
(b) as otherwise directed in writing by the Treasurer.
42. Period to which resource agreements relate
(1) A resource agreement for an agency is to cover a financial year
15 of the agency.
(2) The first resource agreement for an agency is to be in respect of
the next full financial year of the agency after the
commencement of this Division.
43. Matters to be included in resource agreements
20 A resource agreement for an agency is to specify --
(a) the total amount of resources that are expected to be
made available to the agency for the financial year; and
(b) the services proposed to be provided by the agency
during the financial year; and
25 (c) any other matters required by the Treasurer to be
specified in the agreement.
44. Resource agreements to be agreed if possible
The accountable authority of an agency and the Treasurer are to
try to reach agreement on a resource agreement for the agency
page 28
Financial Management Bill 2006
Funds management Part 3
Resource agreements Division 5
s. 45
before the start of the financial year to which the agreement
relates.
45. Treasurer's powers in relation to draft resource agreements
(1) The Treasurer may return a draft resource agreement to the
5 accountable authority of an agency and request the accountable
authority --
(a) to consider or further consider any matter and deal with
the matter in the draft resource agreement; and
(b) to revise the draft resource agreement in light of that
10 consideration or further consideration.
(2) If the accountable authority and the Treasurer have not reached
agreement on a draft resource agreement by one month before
the start of the financial year, the Treasurer may, in writing,
direct the accountable authority --
15 (a) to take specified steps in relation to the draft resource
agreement; or
(b) to make specified modifications to the draft resource
agreement.
(3) The accountable authority is to comply with a direction under
20 subsection (2) as soon as is practicable and, in any event, not
later than the start of the financial year or any later date
approved by the Treasurer.
46. Agreement as to draft resource agreements
(1) When the accountable authority of an agency and the Treasurer
25 reach agreement on a draft resource agreement, it becomes the
resource agreement for the agency for the relevant financial
year.
(2) The accountable authority of an agency is to obtain the
Minister's approval before reaching agreement with the
30 Treasurer on a draft resource agreement for the agency.
page 29
Financial Management Bill 2006
Part 3 Funds management
Division 6 Write-offs and recoveries
s. 47
Division 6 -- Write-offs and recoveries
47. Terms used in this Division
In this Division --
"loss" means --
5 (a) in relation to official money -- a loss of or deficiency
in money; or
(b) in relation to official property -- the value of, or the
cost of repairing or replacing, as the case requires,
property that is lost, destroyed or damaged;
10 "official money" means --
(a) in relation to a statutory authority -- statutory
authority money and other money; or
(b) otherwise, public money and other money;
"official property" means public property and other property;
15 "relevant authority" means --
(a) in relation to a loss incurred by a statutory
authority -- the statutory authority; or
(b) in relation to a loss otherwise incurred -- the State.
48. Write-offs
20 (1) In this section --
"relevant amounts" means --
(a) amounts in respect of public property held for or on
behalf of the State and revenue and other debts due to
the State; or
25 (b) amounts in respect of public property held for or on
behalf of a statutory authority and revenue and other
debts due to the statutory authority.
(2) Subject to the monetary limit and any conditions prescribed by
the regulations for the purposes of this subsection, the relevant
30 accountable authority may write off relevant amounts.
page 30
Financial Management Bill 2006
Funds management Part 3
Write-offs and recoveries Division 6
s. 49
(3) Subject to the monetary limit and any conditions prescribed by
the regulations for the purposes of this subsection, the Minister
may write off relevant amounts.
(4) Subject to any conditions prescribed by the regulations for the
5 purposes of this subsection, the Minister may, with the prior
approval of the Governor, write off relevant amounts that are
greater than the monetary limit prescribed for the purposes of
subsection (3).
(5) Another written law that applies to a statutory authority prevails
10 to the extent of any inconsistency with this section.
49. Liability of officers for losses
(1) For the purposes of this section --
(a) a person is taken to have control of official money if --
(i) the money is held by the person by way of an
15 advance; or
(ii) the money has been collected or received by the
person but has not been paid to another person,
or credited to a bank account, as required under a
written law;
20 and
(b) a person is taken to have control of official property
if --
(i) the property has been delivered to the person and
has not been further delivered to another person
25 entitled to receive it; and
(ii) the person gave a written undertaking when the
property was delivered to take strict care of it
while he or she had control of it.
(2) Subject to subsection (3), if --
30 (a) a loss of official money or official property occurs; and
page 31
Financial Management Bill 2006
Part 3 Funds management
Division 6 Write-offs and recoveries
s. 50
(b) at the time of the loss an officer has control of the
money or property,
the officer is liable to pay to the relevant authority an amount
equal to the loss.
5 (3) The officer is not liable in respect of the loss if the officer shows
that he or she took reasonable steps in all the circumstances to
prevent the loss.
(4) Subject to subsection (5), if --
(a) a loss of official money or official property occurs; and
10 (b) an officer caused or contributed to the loss by
misconduct or a deliberate or serious disregard of
reasonable standards of care,
the officer is liable to pay to the relevant authority an amount
equal to the loss.
15 (5) If the officer's misconduct or disregard of reasonable standards
of care was not the sole cause of the loss, the officer is liable to
pay only so much of the loss as is just and equitable with regard
to his or her share of the responsibility for the loss.
(6) A person who becomes liable under this section in the person's
20 capacity as an officer does not cease to be liable only because
the person ceases to be an officer.
50. Recovery of amounts for which officers are liable
(1) The amount that an officer is liable to pay under section 49 is
recoverable as a debt due to the relevant authority in a court of
25 competent jurisdiction.
(2) A relevant authority is not entitled to recover amounts from the
same person under both section 49(2) and (4) for the same loss.
(3) In proceedings to recover an amount that an officer is liable to
pay under section 49, the amount for which the officer is liable
30 according to a determination under section 51 is prima facie
evidence of the amount that he or she is liable to pay.
page 32
Financial Management Bill 2006
Funds management Part 3
Write-offs and recoveries Division 6
s. 51
(4) Section 49 does not affect a right of a relevant authority to
recover an amount from an officer otherwise than under that
section, but the relevant authority is not entitled to recover
amounts under both section 49 and otherwise than under that
5 section for the same loss.
51. Under Treasurer and accountable authorities may direct
investigations in respect of losses
(1) In this section --
"authorised person" means a person authorised by a
10 responsible person under subsection (2);
"official loss" means a loss of official money or official
property;
"responsible person" means the Under Treasurer or the
relevant accountable authority.
15 (2) If a responsible person considers that an official loss may have
occurred in circumstances that make an officer liable under
section 49 to pay an amount to the relevant authority, the
responsible person may direct an investigation to be held by a
person authorised in writing by the responsible person.
20 (3) For the purposes of the investigation, the authorised person has
all the powers conferred on a special inquirer by the Public
Sector Management Act 1994 sections 12 and 13 and
Schedule 3, and those provisions apply to and in relation to --
(a) the authorised person as if he or she were a special
25 inquirer under that Act; and
(b) the investigation as if it were a special inquiry under
that Act.
(4) Within the period specified by the responsible person, the
authorised person is to --
30 (a) complete the investigation; and
(b) prepare a report setting out the relevant facts and
findings; and
page 33
Financial Management Bill 2006
Part 3 Funds management
Division 6 Write-offs and recoveries
s. 51
(c) send the report to the responsible person.
(5) Without limiting subsection (4) and subject to any requirements
prescribed by the regulations relating to the rules of natural
justice (including any duty of procedural fairness), the report
5 may include a recommendation that the officer be held liable
under section 49 to pay a specified amount to the relevant
authority.
(6) After considering the report and anything else prescribed by the
regulations, and having regard to all the circumstances of the
10 case, the responsible person is to determine --
(a) that the official loss occurred in circumstances that make
the officer liable under section 49 and the amount the
officer is liable to pay to the relevant authority; or
(b) that no further action is to be taken in relation to the
15 matter.
(7) The responsible person is to give written notice of the
determination to the officer.
(8) In determining the amount that an officer is liable to pay under
subsection (6)(a), the responsible person --
20 (a) may have regard to mitigating facts or circumstances
relevant to the official loss or to the officer; and
(b) may determine that the officer is liable to pay only so
much as is just and equitable of the amount that, apart
from this subsection, the officer would be liable to pay.
page 34
Financial Management Bill 2006
Accountable authorities Part 4
s. 52
Part 4 -- Accountable authorities
52. Agencies to have accountable authority
An agency is to have an accountable authority who is
responsible to the Minister for the financial management of the
5 services under the control of the agency.
53. Functions of accountable authorities
(1) Without limiting section 52, an accountable authority of an
agency has the functions of --
(a) ensuring that the agency operates in a manner that is
10 efficient and economic and achieves the agency's
objectives; and
(b) ensuring that the agency complies with this Act, the
Treasurer's instructions and any other written law that
applies to the agency; and
15 (c) having the custody, control and management of, and
accounting for, all the public property or other property
under the control of the agency; and
(d) unless otherwise directed in writing by the Treasurer,
developing and maintaining an effective internal audit
20 function for the agency.
(2) The accountable authority of an agency also has any other
function given to the accountable authority under this Act or
another written law.
54. Accountable authorities for departments
25 (1) Subject to subsection (2), the chief executive officer of a
department is the accountable authority of the department.
page 35
Financial Management Bill 2006
Part 4 Accountable authorities
s. 55
(2) While a declaration of a sub-department under section 56(2) has
effect in respect of an entity that forms a part of a department,
the chief executive officer of the department --
(a) is not responsible to the Minister for the financial
5 management of the services under the control of the
entity; and
(b) is not the accountable authority in relation to those
services.
55. Accountable authorities for statutory authorities
10 (1) Subject to subsection (2), the person or body (however
described) having the general direction and control of, and the
overall responsibility for, the operations of a statutory authority
is the accountable authority of the statutory authority.
(2) If the Treasurer considers that there is, or may be, some doubt
15 as to the application of subsection (1) to a particular statutory
authority, the Treasurer may, by notice published in the Gazette,
appoint a person or body to be the accountable authority of the
statutory authority.
(3) On the publication of a notice under subsection (2), the person
20 or body appointed is to assume and perform all the functions
conferred on an accountable authority under this Act.
56. Declarations by Treasurer as to agencies and accountable
authorities
(1) For the purposes of this section, the "prescribed conditions",
25 in relation to an entity, are the conditions that --
(a) the entity forms a part of a department; and
(b) the entity maintains separate accounts; and
(c) the entity is the subject of --
(i) a separate division within the estimates; or
30 (ii) a separate head of expenditure created by a
determination under section 25(2)(b); or
page 36
Financial Management Bill 2006
Accountable authorities Part 4
s. 56
(iii) expenditure authorised under section 27(1);
and
(d) the holder of an office in the department, who is not the
chief executive officer of the department, has functions
5 in relation to the entity under --
(i) a written law; or
(ii) a delegation made under the Public Sector
Management Act 1994 section 33 by that chief
executive officer.
10 (2) The Treasurer may declare that, for the purposes of this Act --
(a) an entity that satisfies the prescribed conditions is a
sub-department; and
(b) the holder of an office referred to in subsection (1)(d) is
the accountable authority of the sub-department.
15 (3) If, after a declaration is made under subsection (2) in relation to
a sub-department and its accountable authority, the entity that
comprises the sub-department ceases to satisfy any of the
prescribed conditions, the declaration is revoked by operation of
this subsection.
20 (4) If the holder of an office has been declared to be an accountable
authority on the basis of a delegation referred to in
subsection (1)(d)(ii), the chief executive officer who made the
delegation is to notify the Treasurer immediately if the
delegation is amended or revoked.
25 (5) The Treasurer may at any time revoke a declaration under
subsection (2).
(6) Part 5 Division 3 applies in relation to the revocation of a
declaration under subsection (2) as if a reference in that
Division to the abolition of an agency were a reference to that
30 revocation.
page 37
Financial Management Bill 2006
Part 4 Accountable authorities
s. 57
57. Chief finance officer
(1) The accountable authority of an agency --
(a) is to ensure that, for the agency, an office, post or
position is designated chief finance officer; and
5 (b) is to advise the Treasurer and the Auditor General of the
office, post or position so designated.
(2) The chief finance officer of an agency is responsible to the
accountable authority for --
(a) the preparation of financial information to facilitate the
10 discharge of statutory reporting obligations of the
agency; and
(b) the provision of advice on the effectiveness of
accounting and financial management information
systems and financial controls in meeting the
15 requirements of the agency; and
(c) the provision of advice concerning the financial
implications of, and financial risks to, the agency's
current and projected services; and
(d) the development of strategic options for the future
20 financial management and capability of the agency; and
(e) the development of financial management skills within
the agency.
58. Accountable authorities to ensure agencies have financial
management system
25 The accountable authority of an agency is to ensure that the
agency has, or has access to, a financial management system
that complies with the requirements prescribed by the
Treasurer's instructions.
page 38
Financial Management Bill 2006
Reports Part 5
Treasurer's reports Division 1
s. 59
Part 5 -- Reports
Division 1 -- Treasurer's reports
59. Treasurer's reports and statements
The Treasurer's duties with respect to financial reports and
5 statements are set out in the Government Financial
Responsibility Act 2000.
Division 2 -- Annual reports by agencies
60. Interpretation for sections 60 and 61
(1) In this section and section 61 --
10 "affiliated body", of an agency, means --
(a) a body --
(i) that is formed or incorporated by an
instrument under a written law or by
administrative action; and
15 (ii) that is financially dependent on the agency;
and
(iii) that is not subject to the operational control of
the agency as a consequence of the
independent exercise of control over its
20 operations under authority provided for in the
instrument that formed or created the body or
by subsequent amendment of that instrument;
and
(iv) that is not a subsidiary body or a related body
25 of an agency nor itself an agency;
or
(b) a body that is determined by the Treasurer, by written
notice given to the agency, to be an affiliated body of
the agency;
page 39
Financial Management Bill 2006
Part 5 Reports
Division 2 Annual reports by agencies
s. 60
"operational control", of an agency in relation to a body,
means that the agency has the capacity to exercise direction
over the operation of the body;
"related body", of an agency, means --
5 (a) a body --
(i) that is formed or incorporated under a written
law or by administrative action taken
independently of the agency; and
(ii) that is financially dependent on the agency;
10 and
(iii) that is subject to the operational control of the
agency; and
(iv) that is not a subsidiary body of an agency nor
itself an agency;
15 or
(b) a body that is determined by the Treasurer, by written
notice given to the agency, to be a related body of the
agency;
"subsidiary body", of an agency, means --
20 (a) a body --
(i) that is a company as defined in the
Commonwealth Corporations Act 2001
section 9 or formed or incorporated under
equivalent laws of a place other than a State
25 or Territory; and
(ii) in respect of which the agency has the
capacity to dominate decision making,
directly or indirectly, in relation to the
financial and operating policies of the body so
30 as to enable the body to operate with the
agency in pursuing the agency's objectives;
and
page 40
Financial Management Bill 2006
Reports Part 5
Annual reports by agencies Division 2
s. 61
(iii) that is not itself an agency;
or
(b) a body that is declared under an Act to be a
subsidiary of the agency and is not itself an agency;
5 or
(c) a body that is determined by the Treasurer, by written
notice given to the agency, to be a subsidiary of the
agency.
(2) Despite the definitions of "affiliated body" and "related body"
10 in subsection (1), the regulations may prescribe that, for the
purposes of this Part, a specified body is taken not to be an
affiliated body or a related body of a specified agency.
(3) In subsection (2) --
"specified" means specified in the regulations.
15 61. Annual reports by accountable authorities
(1) After the end of each financial year the accountable authority of
an agency is to prepare an annual report that contains --
(a) financial statements for the financial year; and
(b) key performance indicators; and
20 (c) a report on the operations of the agency during the
financial year; and
(d) any information prescribed by the Treasurer's
instructions; and
(e) if applicable, the reports referred to in subsections (2)
25 and (3); and
(f) any other information required by a written direction
given by the Minister.
(2) The accountable authority of an agency is to include in the
annual report for a financial year covered by a resource
30 agreement a report on the extent to which the agency achieved
any objectives described in the resource agreement.
page 41
Financial Management Bill 2006
Part 5 Reports
Division 2 Annual reports by agencies
s. 62
(3) An agency that --
(a) is a department or statutory authority; and
(b) has an affiliated body or a related body,
is to include in the annual report for a financial year a report on
5 the affiliated body or related body that contains in respect of the
financial year the information prescribed by the Treasurer's
instructions.
(4) Unless an Act provides otherwise, the financial year of an
agency ends on 30 June.
10 (5) An agency that has a subsidiary body is to exercise its control
over that subsidiary body so as to ensure that the accountable
authority of the agency is provided with all the information
relating to the subsidiary body that the accountable authority
needs to comply with this section, section 62 and the
15 Treasurer's instructions.
62. Financial statements
(1) Unless the Treasurer approves otherwise, the financial
statements referred to in section 61(1)(a) are to be prepared in
accordance with the accounting standards and other
20 requirements issued by the Australian Accounting Standards
Board.
(2) Without limiting subsection (1), the financial statements
referred to in section 61(1)(a) --
(a) are to include --
25 (i) any financial statements and information
prescribed by the Treasurer's instructions; and
(ii) any other financial information required by a
written direction given by the Minister;
and
30 (b) are to be certified in the manner prescribed by the
Treasurer's instructions.
page 42
Financial Management Bill 2006
Reports Part 5
Annual reports by agencies Division 2
s. 63
(3) In subsection (1) --
"Australian Accounting Standards Board" means the body of
that name continued in existence under the Commonwealth
Australian Securities and Investments Commission
5 Act 2001.
63. Accountable authorities to submit financial reports and
other information
(1) The accountable authority of an agency is to submit to the
Auditor General --
10 (a) the financial statements and key performance indicators
referred to in section 61(1)(a) and (b); and
(b) any other information referred to in section 61(1)(d) that
is required by the Treasurer's instructions to be
submitted to the Auditor General under this subsection.
15 (2) The accountable authority of an agency is to submit to the
Minister --
(a) the annual report prepared by the accountable authority
under section 61(1); and
(b) unless the audit of the agency's accounts in respect of
20 the relevant financial year has been dispensed with
under the Auditor General Act 2006 section 14(2) -- a
copy of the opinion of the Auditor General prepared and
signed under section 15 of that Act.
64. Minister to table accountable authority's report
25 (1) The Minister is to cause to be laid before each House of
Parliament, or dealt with under section 83, within the prescribed
period after the end of a financial year of an agency --
(a) a copy of the annual report for the financial year
prepared by the accountable authority of the agency
30 under section 61; and
(b) unless the audit of the agency's accounts in respect of
the financial year has been dispensed with under the
page 43
Financial Management Bill 2006
Part 5 Reports
Division 2 Annual reports by agencies
s. 65
Auditor General Act 2006 section 14(2) -- a copy of the
opinion of the Auditor General prepared and signed
under section 15 of that Act.
(2) In subsection (1) --
5 "prescribed period" means --
(a) 90 days; or
(b) any shorter period that is prescribed by the
regulations for the purposes of this definition.
65. Minister to inform Parliament if annual report and Auditor
10 General's opinion cannot be tabled on time
(1) If the Minister is not able to cause a copy of an annual report
and if applicable, the opinion of the Auditor General referred to
in section 64(1) to be laid before each House of Parliament, or
dealt with under section 83, within the prescribed period after
15 the end of a financial year of an agency, the Minister is to
inform both Houses of Parliament, on or before the expiry of
that period, of --
(a) the Minister's inability to do so; and
(b) the reasons for that inability; and
20 (c) the anticipated date on which those documents will be
tabled.
(2) If the Minister is not able to comply with subsection (1) in
respect of a House of Parliament because that House is not then
sitting, the Minister is to inform that House as required by that
25 subsection as soon as is practicable after the expiry of the
prescribed period.
(3) In this section --
"prescribed period" means the prescribed period referred to in
section 64.
page 44
Financial Management Bill 2006
Reports Part 5
Reporting on abolition of agencies Division 3
s. 66
Division 3 -- Reporting on abolition of agencies
66. Terms used in this Division
In this Division --
"abolition", of an agency that is a department or
5 sub-department, means --
(a) the abolition of the agency; or
(b) the amalgamation of the agency with one or more
other departments or sub-departments; or
(c) the division of the agency into 2 or more departments
10 or sub-departments;
"final report" means a report prepared and submitted under
section 68(3)(b);
"reporting officer" means a person appointed by the Treasurer
under section 68(1).
15 67. Purpose of this Division
The purpose of this Division is to secure proper accountability
on the abolition of an agency.
68. Reporting on abolition of agency
(1) Before, on or after the abolition of an agency, the Treasurer is to
20 appoint a person to perform the duties set out in this section.
(2) If the abolition takes effect at the end of a financial year of the
agency, the reporting officer is to comply with the provisions of
sections 61 and 63 in respect of the agency --
(a) for that financial year; and
25 (b) to the extent that those provisions have not been
complied with for any earlier financial year of the
agency.
page 45
Financial Management Bill 2006
Part 5 Reports
Division 3 Reporting on abolition of agencies
s. 69
(3) If the abolition takes effect at a time other than the end of a
financial year of the agency, the reporting officer is to --
(a) comply with the provisions of sections 61 and 63 in
respect of the agency to the extent that those provisions
5 have not been complied with for any financial year of
the agency that ended before the abolition; and
(b) prepare and submit to the Minister a report in respect of
the agency for the period starting from the end of the
last financial year of the agency to have ended before
10 the abolition and ending with the abolition.
(4) The Treasurer may give the reporting officer written directions
as to the preparation and submission of the final report.
(5) On appointment under subsection (1), the reporting officer has a
duty to prepare and submit any report required under this
15 section and to comply with any directions given by the
Treasurer under subsection (4).
69. Content of final report
(1) The reporting officer is to include in the final report --
(a) financial statements of the kind referred to in
20 section 61(1)(a); and
(b) information of the kind referred to in section 61(1)(f).
(2) The reporting officer is also to include in the final report, to the
extent that it is practicable for the reporting officer to do so --
(a) information of the kind referred to in section 61(1)(b)
25 and (d); and
(b) a report of the kind referred to in section 61(1)(c); and
(c) if applicable, reports of the kind referred to in
section 61(1)(e).
page 46
Financial Management Bill 2006
Reports Part 5
Reporting on abolition of agencies Division 3
s. 70
70. Directions by Treasurer
(1) Directions given by the Treasurer for the purposes of this
Division may include directions --
(a) that specify information to be included in the final
5 report; and
(b) so far as is necessary to enable the purposes of this
Division to be achieved effectively and without delay --
that modify the application of Division 2 and any related
regulations to the final report; and
10 (c) that relate to any supplementary and incidental matters
that the Treasurer thinks desirable to ensure proper
accountability in respect of the abolished agency; and
(d) if the abolition of the agency takes effect otherwise than
on 30 June in any year -- that specify the date by which
15 the final report is to be prepared and submitted to the
Minister; and
(e) if there is no Minister responsible or there is doubt as to
whether there is a Minister responsible -- that specify
(after necessary consultations) the Minister who is to be
20 the Minister for the purposes of the application of
sections 61, 64 and 83 to the final report.
(2) The Treasurer may amend or cancel a direction given for the
purposes of this Division.
71. Reporting officers entitled to reasonable assistance and
25 facilities and access to accounts
(1) For the purposes of this Division, the reporting officer is entitled
to be provided with reasonable assistance and facilities and to
have full and free access at all reasonable times to all accounts
and any other information, documents and records, in the
30 possession of any person, that the reporting officer considers
necessary for those purposes.
page 47
Financial Management Bill 2006
Part 5 Reports
Division 3 Reporting on abolition of agencies
s. 72
(2) The reporting officer may make copies of, or take extracts from,
any of those accounts, documents or records or make a record of
any of that information.
(3) A person who has possession of any accounts, information,
5 documents or records of the kind referred to in subsection (1)
must at any reasonable time, on the request of the reporting
officer, produce any of those accounts, documents or records, or
any of that information, specified in the request.
Penalty: a fine of $10 000.
10 72. Reporting officers to submit financial statements and
information to Auditor General
(1) Subject to any directions given by the Treasurer for the
purposes of this Division, the reporting officer is to submit for
the opinion of the Auditor General --
15 (a) the financial statements referred to in section 69(1)(a);
and
(b) the information (if applicable) referred to in
section 69(2)(a).
(2) Subject to any necessary modifications, this Act applies to those
20 financial statements and that information (if applicable) in the
same way that it applies to --
(a) financial statements referred to in section 61(1)(a); and
(b) information referred to in section 61(1)(b) and (d).
(3) Sections 64, 65 and 83 apply to the final report in the same way
25 that they apply to an annual report referred to in section 61, but
the prescribed period referred to in section 64(1) is taken to be
14 days after the final report is submitted to the Minister.
page 48
Financial Management Bill 2006
Miscellaneous Part 6
Delegations and authorisations Division 1
s. 73
Part 6 -- Miscellaneous
Division 1 -- Delegations and authorisations
73. Term used in this Division
In this Division --
5 "Treasury Corporation official" means a person employed or
engaged for the purposes of the Western Australian
Treasury Corporation established by the Western
Australian Treasury Corporation Act 1986.
74. Delegation by Treasurer
10 (1) The Treasurer may delegate to a Minister any power or duty of
the Treasurer under another provision of this Act.
(2) The Treasurer may delegate to an officer of the Treasury any
power or duty of the Treasurer under another provision of
this Act.
15 (3) The Treasurer may delegate to a Treasury Corporation official
the power of the Treasurer under section 37.
75. Delegation by Ministers
A Minister may delegate to an officer of the Treasury any power
or duty delegated to the Minister under section 74(1).
20 76. Delegation and authorisation by Under Treasurer
(1) The Under Treasurer may delegate to a Treasury Corporation
official any power of the Treasurer under section 37 delegated
to the Under Treasurer under section 74(2).
(2) The Under Treasurer may authorise an officer of the Treasury to
25 exercise or perform any power or duty --
(a) delegated to the Under Treasurer under section 74(2); or
(b) conferred on the Under Treasurer by the Treasurer's
instructions.
page 49
Financial Management Bill 2006
Part 6 Miscellaneous
Division 1 Delegations and authorisations
s. 77
77. General provisions about delegations and authorisations
(1) A delegation under this Division or an authorisation under
section 76(2) is to be in writing signed by the person making the
delegation or giving the authorisation.
5 (2) A person exercising or performing a power or duty --
(a) that has been delegated to the person under this
Division; or
(b) that the person is authorised to exercise or perform
under section 76(2),
10 is taken to do so in accordance with the terms of the delegation
or authorisation unless the contrary is shown.
(3) A person (the "delegate") exercising or performing a power or
duty --
(a) that has been delegated to the delegate under this
15 Division; or
(b) that the delegate is authorised to exercise or perform
under section 76(2),
is to do so in accordance with any directions given to the
delegate by the person --
20 (c) who delegated the power or duty to the delegate; or
(d) who authorised the delegate to exercise or perform the
power or duty.
(4) The Interpretation Act 1984 sections 58 and 59 apply to an
authorisation under section 76(2) in the same way as they apply
25 to a delegation.
(5) Unless the contrary is proved, it is to be presumed that a
document purporting to have been signed by a delegate of the
Treasurer, a Minister or the Under Treasurer, or by a person
authorised by the Under Treasurer under section 76(2), was
30 signed by a person who at the time --
(a) was such a delegate or was so authorised; and
page 50
Financial Management Bill 2006
Miscellaneous Part 6
Treasurer's instructions Division 2
s. 78
(b) was authorised to sign it.
(6) Nothing in this Division limits the ability of the Treasurer, a
Minister or the Under Treasurer to perform a function through
an officer or agent.
5 Division 2 -- Treasurer's instructions
78. Treasurer's instructions
(1) The Treasurer may issue, amend or revoke instructions
concerning the principles, practices and procedures to be
complied with in the financial management of the State.
10 (2) The Treasurer's instructions are not to be inconsistent with
this Act.
(3) A person who is an accountable authority or an officer is to
comply with the Treasurer's instructions.
(4) The Treasurer is to cause notice to be published in the Gazette
15 of the issue, amendment or revocation of Treasurer's
instructions, but a notice under this subsection does not need to
include the text of the instructions or amendments.
(5) The validity of the Treasurer's instructions is not affected by
any failure to comply with subsection (4).
20 Division 3 -- Miscellaneous powers and duties
79. Treasurer's power to require information
(1) The Treasurer may require the accountable authority or an
officer of an agency to provide the Treasurer with any
information relating to the financial management of the agency
25 that the Treasurer thinks necessary for the purposes of this Act.
(2) A person given a direction under subsection (1) is to provide the
information to the Treasurer in the manner and form directed by
the Treasurer.
page 51
Financial Management Bill 2006
Part 6 Miscellaneous
Division 3 Miscellaneous powers and duties
s. 80
80. Act of grace payments
(1) If the Treasurer is satisfied that it is appropriate to do so because
of special circumstances, the Treasurer may authorise an
amount to be paid to a person even though the payment would
5 not otherwise be authorised by law or required to meet a legal
liability.
(2) The Treasurer cannot authorise the payment under this section
of an amount that exceeds the amount prescribed by the
regulations for the purposes of this subsection unless that
10 payment is approved by the Governor.
(3) A payment under this section may be made subject to conditions
and, if any such condition is breached, the amount paid may be
recovered as a debt due to the State in a court of competent
jurisdiction.
15 (4) A request or recommendation to make a payment under this
section may be made to the Treasurer in accordance with the
Treasurer's instructions.
81. Certain actions and arrangements not to be taken or
entered into
20 The Minister and the accountable authority of an agency are to
ensure that --
(a) no action is taken or omitted to be taken; and
(b) no contractual or other arrangement is entered into,
by or on behalf of the Minister or agency that would prevent or
25 inhibit the provision by the Minister to Parliament of
information concerning any conduct or operation of the agency.
82. Minister to report decisions not to provide certain
information about agencies
(1) If the Minister decides that it is reasonable and appropriate not
30 to provide to Parliament certain information concerning any
conduct or operation of an agency, then within 14 days after
page 52
Financial Management Bill 2006
Miscellaneous Part 6
General Division 4
s. 83
making the decision the Minister is to cause written notice of
the decision --
(a) to be laid before each House of Parliament or dealt with
under section 83; and
5 (b) to be given to the Auditor General.
(2) A notice under subsection (1)(a) is to include the Minister's
reasons for making the decision that is the subject of the notice.
Division 4 -- General
83. Supplementary provision about laying documents before
10 Parliament
(1) If --
(a) at the start of a period referred to in section 23(5), 64(1)
or 82(1) in respect of a document a House of Parliament
is not sitting; and
15 (b) the Minister is of the opinion that that House will not sit
during that period,
the Minister is to transmit a copy of the document to the Clerk
of that House and, in the case of the transmission of a copy of
an annual report and opinion referred to in section 64(1), the
20 Minister is to make the report and opinion available to the
public.
(2) A copy of a document transmitted to the Clerk of a House is to
be regarded as having been laid before that House.
(3) The laying of a copy of a document that is regarded as having
25 occurred under subsection (2) is to be recorded in the Minutes,
or Votes and Proceedings, of the House on the first sitting day
of the House after the Clerk received the copy.
84. Regulations
The Governor may make regulations prescribing all matters that
30 are required or permitted by this Act to be prescribed, or are
page 53
Financial Management Bill 2006
Part 6 Miscellaneous
Division 4 General
s. 85
necessary or convenient to be prescribed for giving effect to the
purposes of this Act.
85. Review of Act
(1) The Minister is to carry out a review of the operation and
5 effectiveness of this Act as soon as is practicable after --
(a) the fifth anniversary of its commencement; and
(b) the expiry of each 5 yearly interval after that
anniversary.
(2) In the course of a review under subsection (1) the Minister is to
10 consider and have regard to --
(a) whether there is a need for this Act to continue; and
(b) any other matters that appear to the Minister to be
relevant to the operation and effectiveness of this Act.
(3) The Minister is to prepare a report based on a review under
15 subsection (1) and, as soon as is practicable after the report is
prepared, is to cause a copy of it --
(a) to be laid before each House of Parliament; and
(b) to be given to the Joint Standing Committee on Audit.
(4) The Joint Standing Committee on Audit --
20 (a) is to carry out a review of the report; and
(b) in the course of that review, may consider and have
regard to any matters that appear to the Joint Standing
Committee on Audit to be relevant to the report or the
operation and effectiveness of this Act.
25 (5) The Joint Standing Committee on Audit is to prepare a report
based on the review and, as soon as is practicable after the
report is prepared, is to cause it to be laid before the Legislative
Council and the Legislative Assembly.
page 54
Financial Management Bill 2006
Statutory authorities Schedule 1
Schedule 1 -- Statutory authorities
[s. 3 and 6]
Agricultural Practices Board of Western Australia
Agricultural Produce Commission
5 Animal Resources Authority
Armadale Redevelopment Authority
Botanic Gardens and Parks Authority
Building and Construction Industry Training Board
Bunbury Water Board
10 Busselton Water Board
Central TAFE
Central West TAFE
Challenger TAFE
Coal Industry Superannuation Board
15 Commissioner of Main Roads
Construction Industry Long Service Leave Payments Board
Corruption and Crime Commission
Country High School Hostels Authority
Country Housing Authority
20 Curriculum Council
Curtin University of Technology
CY O'Connor College of TAFE
Disability Services Commission
East Perth Redevelopment Authority
25 Economic Regulation Authority
Edith Cowan University
Fire and Emergency Services Authority of Western Australia
Fire and Emergency Services Superannuation Board
Forest Products Commission
30 Gaming and Wagering Commission of Western Australia
Gascoyne Development Commission
Gold Corporation
Goldfields-Esperance Development Commission
Government Employees' Housing Authority
35 Government Employees Superannuation Board
page 55
Financial Management Bill 2006
Schedule 1 Statutory authorities
Great Southern Development Commission
Great Southern TAFE
Heritage Council of Western Australia
Agencies established under the Hospitals and Health Services Act 1927
5 section 7B
Hospital boards constituted under the Hospitals and Health Services Act 1927
section 15 and the Minister in relation to any public hospital
controlled by the Minister under section 7 of that Act
Insurance Commission of Western Australia
10 Keep Australia Beautiful Council (W.A.)
Kimberley TAFE
Kimberley Development Commission
Landcare Trust
Law Reform Commission of Western Australia
15 Legal Aid Commission of Western Australia
Legal Contribution Trust
Legal Costs Committee
Local Health Authorities Analytical Committee
Lotteries Commission
20 Metropolitan Cemeteries Board
Midland Redevelopment Authority
Mid West Development Commission
Minerals and Energy Research Institute of Western Australia
Murdoch University
25 Office of Health Review
Parliamentary Inspector of the Corruption and Crime Commission
Peel Development Commission
Perth International Centre for Application of Solar Energy
Perth Market Authority
30 Perth Theatre Trust
Pilbara Development Commission
Pilbara TAFE
Potato Marketing Corporation of Western Australia
Professional Combat Sports Commission
35 Professional Standards Council
page 56
Financial Management Bill 2006
Statutory authorities Schedule 1
Public Transport Authority of Western Australia
Public Trustee
Racing and Wagering Western Australia
Racing Penalties Appeal Tribunal of Western Australia
5 Real Estate and Business Agents Supervisory Board
Recreation Camps and Reserve Board
Rottnest Island Authority
Rural Business Development Corporation
Screen West (Inc.)
10 Settlement Agents Supervisory Board
Small Business Development Corporation
South West Development Commission
South West Regional College of TAFE
State Government Insurance Corporation
15 State Supply Commission
Subiaco Redevelopment Authority
Swan Bells Foundation Incorporated
Swan River Trust
Swan TAFE
20 The Aboriginal Affairs Planning Authority
The Agriculture Protection Board of Western Australia
The Anzac Day Trust
The Board of the Art Gallery of Western Australia
The Burswood Park Board
25 The Coal Miners' Welfare Board of Western Australia
The Eastern Goldfields Transport Board
The Library Board of Western Australia
The National Trust of Australia (W.A.)
The Queen Elizabeth II Medical Centre Trust
30 The State Housing Commission
The University of Western Australia
The Western Australian Museum
Trustees of the Public Education Endowment
Water and Rivers Commission
35 West Coast TAFE
Western Australian Alcohol and Drug Authority
Western Australian Building Management Authority
page 57
Financial Management Bill 2006
Schedule 1 Statutory authorities
Western Australian Coastal Shipping Commission
Western Australian Gas Disputes Arbitrator
Western Australian Greyhound Racing Association
Western Australian Health Promotion Foundation
5 Western Australian Institute of Sport
Western Australian Meat Industry Authority
Western Australian Planning Commission
Western Australian Sports Centre Trust
Western Australian Tourism Commission
10 Western Australian Treasury Corporation
Wheatbelt Development Commission
WorkCover Western Australia Authority
Zoological Parks Authority
page 58
Financial Management Bill 2006
Modifications to the Act as to certain administrations Schedule 2
Schedule 2 -- Modifications to the Act as to certain
administrations
[s. 5(2)]
The provisions of the Act specified in column 1 are modified and have effect for the
5 purposes of section 5(2) as if they were in the form set out opposite in column 2.
Column 1 Column 2
Section Modified form
21 21. (1) The Treasurer may direct that a special purpose account
operated by an agency, other than a special purpose account
established by an Act, be closed.
48 48. (4) The accountable authority of an agency may, with the prior
approval of the Governor, write off relevant amounts that
are greater than the monetary limit prescribed for the
purposes of subsection (2), subject to any conditions
prescribed by the regulations.
52 52. The accountable authority of an agency is responsible for
the financial management of the services under the control
of the agency.
54 54. (1) The accountable authority of the agency taken to be
constituted under section 5(1) by the administration of --
(a) the Legislative Council is the Clerk of the
Legislative Council; or
(b) the Legislative Assembly is the Clerk of the
Legislative Assembly; or
(c) the Parliamentary Services Department is the
Executive Manager (however designated) of the
Parliamentary Services Department; or
(d) the Parliamentary Commissioner for Administrative
Investigations is the chief executive officer of the
department of the Public Service principally
assisting in the administration of the Parliamentary
Commissioner Act 1971; or
(e) the Information Commissioner is the chief executive
officer of the department of the Public Service
principally assisting in the administration of the
Freedom of Information Act 1992,
page 59
Financial Management Bill 2006
Schedule 2 Modifications to the Act as to certain administrations
Column 1 Column 2
Section Modified form
and the accountable authority of an agency taken to be
constituted under section 5(1) by the administration of a
body or office that is the subject of regulations referred to
in that provision is the person appointed, in writing, by the
Treasurer to be the accountable authority of that agency.
61 61. (1) After the end of each financial year the accountable
authority of an agency is to prepare an annual report that
contains --
(a) financial statements for the financial year; and
(b) key performance indicators; and
(c) a report on the operations of the agency during the
financial year; and
(d) any information prescribed by the Treasurer's
instructions; and
(e) if applicable, the reports referred to in
subsections (2) and (3).
62 62. (2) Without limiting subsection (1), the financial statements
referred to in section 61(1)(a) --
(a) are to include any financial statements and
information prescribed by the Treasurer's
instructions; and
(b) are to be certified in the manner prescribed by the
Treasurer's instructions.
63 63. (2) The accountable authority of an agency is to submit to the
Treasurer --
(a) the annual report prepared by the accountable
authority under section 61(1); and
(b) unless the audit of the agency's accounts in respect
of the relevant financial year has been dispensed
with under the Auditor General Act 2006
section 14(2) -- a copy of the opinion of the Auditor
General prepared and signed under section 15 of
that Act.
page 60
Financial Management Bill 2006
Modifications to the Act as to certain administrations Schedule 2
Column 1 Column 2
Section Modified form
64 64. (1) The accountable authority of an agency is to transmit to
both Houses of Parliament within the prescribed period
after the end of a financial year of the agency --
(a) copies of the annual report for the financial year
prepared by the accountable authority under
section 61(1); and
(b) unless the audit of the agency's accounts in respect
of the financial year has been dispensed with under
the Auditor General Act 2006 section 14(2) -- a
copy of the opinion of the Auditor General prepared
and signed under section 15 of that Act.
65 65. (1) If the accountable authority of an agency is not able to
transmit copies of the annual report and, if applicable, the
opinion of the Auditor General referred to in section 64(1)
to both Houses of Parliament within the prescribed period
after the end of the financial year, the accountable authority
is to inform both Houses of Parliament, on or before the
expiry of that period, of --
(a) the accountable authority's inability to do so; and
(b) the reasons for that inability; and
(c) the anticipated date on which those documents will
be transmitted.
65. (2) If the accountable authority of an agency is not able to
comply with subsection (1) in respect of a House of
Parliament because that House is not then sitting, the
accountable authority is to inform that House as required by
that subsection as soon as is practicable after the expiry of
the prescribed period.
For the purposes of section 5(2), Part 3 Division 5 does not have effect.
page 61
Financial Management Bill 2006
Schedule 3 Modifications to the Act as to the Office of the Auditor General
Schedule 3 -- Modifications to the Act as to the Office of
the Auditor General
[s. 5(3)]
The provisions of the Act specified in column 1 are modified and have effect for the
5 purposes of section 5(3) as if they were in the form set out opposite in column 2.
Column 1 Column 2
Section Modified form
21 21. (1) The Treasurer may direct that a special purpose account
operated by the Office of the Auditor General, other than a
special purpose account established by an Act, be closed.
48 48. (4) The accountable authority of the Office of the Auditor
General may, with the prior approval of the Governor, write
off relevant amounts that are greater than the monetary
limit prescribed for the purposes of subsection (2), subject
to any conditions prescribed by the regulations.
52 52. The accountable authority of the Office of the Auditor
General is responsible for the financial management of the
services under the control of the Office of the Auditor
General.
54 54. (1) The Auditor General is the accountable authority of the
Office of the Auditor General.
61 61. (1) After the end of each financial year the accountable
authority of the Office of the Auditor General is to prepare
an annual report that contains --
(a) financial statements for the financial year; and
(b) key performance indicators; and
(c) a report on the operations of the Office of the
Auditor General during the financial year; and
(d) any information prescribed by the Treasurer's
instructions unless, in the opinion of the Auditor
General, this information would compromise the
Auditor General's independence; and
(e) if applicable, the reports referred to in
subsections (2) and (3).
page 62
Financial Management Bill 2006
Modifications to the Act as to the Office of the Auditor General Schedule 3
Column 1 Column 2
Section Modified form
62 62. (2) Without limiting subsection (1), the financial statements
referred to in section 61(1)(a) --
(a) are to include any financial statements and
information prescribed by the Treasurer's
instructions; and
(b) are to be certified in the manner prescribed by the
Treasurer's instructions.
63 63. (2) After receiving the opinion of the independent auditor
appointed in accordance with the Auditor General Act 2006
section 38, the Auditor General is to transmit copies of the
annual report for a financial year prepared by the
accountable authority under section 61(1) together with a
copy of the opinion of the independent auditor to both
Houses of Parliament within 90 days after the end of the
financial year.
65 65. (1) If the Auditor General is not able to transmit copies of the
annual report and the opinion of the independent auditor
referred to in section 63(2) to both Houses of Parliament
within 90 days after the end of the financial year, the
Auditor General is to inform both Houses of Parliament, on
or before the expiry of that period, of --
(a) the Auditor General's inability to do so; and
(b) the reasons for that inability; and
(c) the anticipated date on which those documents will
be transmitted.
65. (2) If the Auditor General is not able to comply with
subsection (1) in respect of a House of Parliament because
that House is not then sitting, the Auditor General is to
inform that House as required by that subsection as soon as
is practicable after the expiry of the period referred to in
that subsection.
For the purposes of section 5(3), Part 3 Division 5 and section 64 do not have effect.
page 63
Financial Management Bill 2006
Defined Terms
Defined Terms
[This is a list of terms defined and the provisions where they are defined.
The list is not part of the law.]
Defined Term Provision(s)
abolition......................................................................................................... 66
accountable authority........................................................................................ 3
affiliated body ............................................................................................60(1)
agency.............................................................................................................. 3
agency special purpose account ........................................................................ 3
annual estimates .........................................................................................40(1)
Appropriation Act ............................................................................................ 3
Australian Accounting Standards Board......................................................62(3)
authorised person .......................................................................................51(1)
bank................................................................................................................. 3
Consolidated Account....................................................................................... 3
current year ................................................................................................24(1)
delegate......................................................................................................77(3)
department ....................................................................................................... 3
determination .............................................................................................23(1)
final report ..................................................................................................... 66
general purpose ..........................................................................................25(1)
investment..................................................................................................38(1)
Joint Standing Committee on Audit .................................................................. 3
loss ................................................................................................................ 47
Minister ........................................................................................................... 3
officer .............................................................................................................. 3
official loss ................................................................................................51(1)
official money ................................................................................................ 47
official property.............................................................................................. 47
operating account .......................................................................................26(1)
operational control......................................................................................60(1)
other money ...........................................................................................3, 15(2)
other property................................................................................................... 3
prescribed conditions..................................................................................56(1)
prescribed period............................................................................. 64(2), 65(3)
prescribed receipts......................................................................................23(1)
previous year..............................................................................................24(1)
public authority ..........................................................................................28(2)
Public Bank Account........................................................................................ 3
Public Bank Account Interest Earned Account .................................................. 3
Public Ledger ................................................................................................... 3
public money.................................................................................................... 3
public property................................................................................................. 3
page 64
Financial Management Bill 2006
Defined Terms
regulated payment ......................................................................................32(2)
regulated transfer........................................................................................32(2)
related body ...............................................................................................60(1)
relevant accountable authority ....................................................................36(1)
relevant amounts ........................................................................................48(1)
relevant authority ........................................................................................... 47
relevant commitment ..................................................................................26(1)
relevant person ...........................................................................................36(1)
relevant service ..........................................................................................21(3)
reporting officer ............................................................................................. 66
resource agreement........................................................................................... 3
responsible person ......................................................................................51(1)
special purpose account .................................................................................... 3
specified.....................................................................................................60(3)
statutory authority ............................................................................................ 3
statutory authority money ................................................................................. 3
sub-department................................................................................................. 3
subsidiary body ..........................................................................................60(1)
the estimates..................................................................................................... 3
Treasurer.......................................................................................................... 3
Treasurer's instructions .................................................................................... 3
Treasury........................................................................................................... 3
Treasury Corporation official.......................................................................... 73
Under Treasurer ............................................................................................... 3
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