Financial Management Act 2016

Financial Management Act 2016

This Act may be cited as the Financial Management Act 2016.

This Act commences on a day to be proclaimed.

In this Act, unless the contrary intention appears –

abolition of an Agency means – the abolition of the Agency; or the amalgamation of the Agency with one or more Agencies; or the division of the Agency into 2 or more Agencies;

accountable authority means a person from time to time holding or acting in – a position specified in Column 2 of Part 1 or 2 of Schedule 1, opposite an Agency specified in Column 1 of that Part of the Schedule; or the position of a person specified in an order under section 6(3) to be the accountable authority in relation to an entity;

accounts means – records, however compiled, recorded or stored, of transactions in respect of money, or other property, expressed in monetary units or, in the case of property, expressed in monetary units or other units of measurement; and any books, documents, writing, monetary forms, abstracts, vouchers and other records of any kind from which records mentioned in paragraph (a) have been compiled;

Agency means a Government department, State authority, body, organisation, or office, that is specified in Column 1 of Part 1 or 2 of Schedule 1;

Agency Trust Account means an Agency Trust Account established under section 18;

appropriate Minister– see section 4;

Appropriation Act means an Act which authorises the issue and application of any money from the Public Account to meet – the cost of the ordinary annual services of the Government; or expenditure on public works or the acquisition of any property required for public purposes; or the making of a loan authorised by law;

Auditor-General means a person holding the office of Auditor-General by virtue of section 9 of the Audit Act 2008;

Australian Accounting Standards means the standards made, or formulated, from time to time by the Australian Accounting Standards Board;

Australian Accounting Standards Board means the body of that name continued in existence under the Australian Securities and Investments Commission Act 2001 of the Commonwealth;

Budget Papers means – the speech, introducing an Appropriation Bill for a financial year, given by the Minister who introduces the Bill into the House of Assembly; and the papers that are tabled in Parliament in connection with that Bill;

entity includes – a Government Business Enterprise; and a State-owned Company; and a State authority that is not a Government Business Enterprise; and the council or board (however designated) of, or for, a corporation, body of persons, or institution, that is or are appointed by the Governor or a Minister of the Crown – but does not include an Agency specified in Part 1 or 2 of Schedule 1;

final report means a report prepared and submitted under section 46(3)(b);

financial year– means a period of 12 months ending on 30 June in any year; or if an Agency is required by any written law, or a direction given under section 43, to maintain financial records for any other period of 12 months, means, in relation to that Agency, that other period;

General Government Sector means the Agencies referred to in Column 1 of Part 1 or 2 of Schedule 1;

generally accepted accounting principles means the standard framework for financial reporting that is established in accordance with – the Australian Accounting Standards; and other requirements issued by the Australian Accounting Standards Board;

Government Business Enterprise means a statutory authority specified in Schedule 1 to the Government Business Enterprises Act 1995;

Government Finance Statistics means the Government Finance Statistics as established by the Australian Bureau of Statistics;

officer means a person who is – a State Service officer or State Service employee; or employed – by or in an Agency; or by the Governor-in-Council pursuant to the royal prerogative or pursuant to any written law; or for the purposes of an Agency pursuant to any written law – whether that person is employed under a contract of service or a contract for service and whether or not that person receives any remuneration for the employment;

other money means money collected, received or held by the State or an Agency for, or on behalf of, a person other than the State or an Agency;

other property means property that is held by the State or an Agency for, or on behalf of, a person other than the State or an Agency;

Public Account means the Public Account referred to in section 9;

public money means money collected, received or held by any person for, or on behalf of, the State or an Agency;

public property means all property, other than public money, held by a person for, or on behalf of, the State or an Agency;

regulations means regulations made and in force under this Act;

reporting officer means a person appointed by the Treasurer under section 46(1);

Secretary means the Secretary of the department responsible for the administration of this Act;

Specific Purpose Account means a Specific Purpose Account established under section 17(1);

State authority means any body or authority, whether incorporated or not, that is – established or constituted under a written law or under the royal prerogative; and a body, or authority, which, or of which the governing authority, wholly or partly comprises a person, or persons, appointed by the Governor, a Minister or another State authority;

State-owned Company means a company incorporated under the Corporations Act which is controlled by – the State; or a State authority; or another company which is itself controlled by the State or a State authority;

Treasurer's annual financial report means the annual financial report prepared by the Treasurer under section 40;

Treasurer's expenditure control authority means a Treasurer's expenditure control authority referred to in section 28;

Treasurer's Instructions means instructions issued by the Treasurer under section 51;

written law means – an Act passed by the Parliament of Tasmania and for the time being in force; and all subordinate legislation for the time being in force under any such Act; and any directions given under this Act; and any Treasurer's Instructions.

Subject to this section, for the purposes of this Act, the appropriate Minister in relation to an Agency is the Minister for the time being responsible for the administration of that Agency.

If more than one Minister has responsibility for the administration of an Agency, a reference in a provision of this Act to the appropriate Minister is to be taken, in so far as the provision applies to an activity, of that Agency, for which one of those Ministers has responsibility, to be a reference to that Minister.

A reference in this Act to the appropriate Minister in relation to an Agency is to be taken to be, if the Agency is – the Legislative Council – a reference to the President of the Legislative Council; or the House of Assembly – a reference to the Speaker of the House of Assembly; or the Legislature-General – a reference to the President and the Speaker acting jointly; or the Office of the Governor – a reference to the Minister administering the Governor of Tasmania Act 1982.

If there is doubt as to who is the Minister who has responsibility for the administration of an activity, the Treasurer is to determine who is to be the appropriate Minister in relation to that activity.

An accountable authority must, as far as is practicable, undertake the financial management of an Agency in a manner that is consistent with the principles of sound fiscal management.

In respect of the financial management of the State, the Government is to have regard to the principles of sound fiscal management.

The principles of sound fiscal management are the principles defined in the Charter of Budget Responsibility set out in the Charter of Budget Responsibility Act 2007.

The provisions of this Act apply to Agencies specified in Column 1 of Part 1 or 2 of Schedule 1.

The Treasurer may, by order, determine that this Act, or any specified provision of this Act, does not apply to an Agency, or to an organisation forming part of an Agency, specified in the order.

The Treasurer may, by order – determine that this Act, or any specified provision of this Act, applies to an entity – that is not specified in Part 1 or 2 of Schedule 1; and that is not a Government Business Enterprise or a State-owned Company; and determine who is to be the accountable authority for that entity.

An order made under subsection (2) or (3) may be expressed to be in force for a period specified in the order, in which case the order is in force for the period so specified and then ceases to have effect.

The provisions of sections 47(3), (3A), (4), (5), (6) and (7) of the Acts Interpretation Act 1931 apply to an order made under subsection (2) or (3) in the same manner as they apply to regulations.

If the enabling Act of an entity in respect of which an order has been made under subsection (3) contains provisions in respect of the financial management of the entity – those provisions are suspended during the period that the entity is subject to this Act, unless the Treasurer determines otherwise; or if the Treasurer determines that only some of those provisions are to be suspended, those provisions are suspended during the period that the entity is subject to this Act.

If the enabling Act of an Agency specified in Schedule 1 contains provisions in respect of the financial management of the Agency – those provisions are suspended, unless the Treasurer determines otherwise; or if the Treasurer determines that only some of those provisions are to be suspended, those provisions are suspended.

Nothing in this Act limits the application of Part IV of the Constitution Act 1934 or the powers of the House of Assembly and the Legislative Council that are described in that Part.

The provisions of this Act are in addition to, and not in derogation from, the provisions of the Financial Agreement Act 1994 and this Act is to be construed accordingly.

Nothing in this Act authorises – the commencement of a public work contrary to section 16 of the Public Works Committee Act 1914; or the commencement or continuation of any other work or undertaking contrary to any enactment requiring the specific authority of Parliament for that work or undertaking.

The Governor may, by order, amend Column 1 of Part 1 of Schedule 1 – by omitting the name of an Agency; or by inserting the name of another Agency, other than an Agency specified in Part 2 of that Schedule; or if the name of any Agency specified in Part 1 of Schedule 1 is changed, by omitting the name of that Agency and inserting its new name.

The Governor may, by order, amend Column 2 of Part 1 of Schedule 1 by inserting, opposite the name of an Agency, the title or other description of an office or by omitting or amending that title or other description.

The Governor may, by order, omit Part 1 of Schedule 1 and substitute a new Part 1.

For the purposes of this Act, the Public Account of the State comprises –

receipts of, and expenditure from, the General Government Sector, that do not form part of a Specific Purpose Account or an Agency Trust Account; and any Specific Purpose Accounts established under section 17.

The Treasurer must keep accounts of all transactions affecting the Public Account.

The system of accounting for all transactions affecting the Public Account is to be based on – generally accepted accounting principles; or Government Finance Statistics.

The Treasurer must properly record all expenditure from the Public Account.

An officer must not draw money from the Public Account except under the authority of this Act or some other Act.

Every appropriation out of the Public Account for any financial year lapses and ceases to have effect for any purpose at the close of that year.

The Treasurer may cause to be opened the accounts he or she considers necessary for the purpose of recording transactions in connection with the Public Account.

Except as otherwise provided by this or any other Act, all receipts of the State, including – all money received by the Treasurer after the commencement of this Act in repayment of advances or loans made, or money borrowed, for the public purposes of the State under an Act; and all money borrowed for the purposes of an Appropriation Act; and all money received from the Commonwealth; and all money received by the Treasurer from the sale of lands or other property belonging to the State; and all money received by an Agency, unless the Treasurer determines otherwise; and any other receipts determined by the Treasurer – are to be credited to the Public Account.

Any money borrowed by, or on behalf of, the State is to be recorded through an account of the State established for that purpose – by the Treasurer; or by an Agency, if the money has been borrowed pursuant to a determination under section 53.

If an Agency is unable to determine correctly the purpose for which any money has been paid to that Agency, the money is to be retained by the Agency until the Agency has determined the purpose or the Treasurer determines the purpose for which the money is to be applied.