Untitled document

Financial Management (Amendment) Act 1998

Act No. 1/1998

TABLE OF PROVISIONS

Section Page

1.	Purpose	1
2.	Commencement	1
3.	Principal Act	2
4.	Definitions	2
5.	Change of heading to Part 3	2
6.	New section 13 substituted	2

13. Public ledger 2

7.	Trust Fund	3
8.	Departmental working accounts	3
9.	Annual financial statement	3
10.	Budget management	3
11.	New sections 30 to 36 substituted	4

30.	Transfer between items of departmental appropriation	4
31.	Transfer between items of Parliamentary appropriation	5
32.	Unused appropriation	6
33.	Appropriation to meet certain obligations	7
34.	Reduction in amount applied to meet future payments	8
35.	Temporary advances	8
36.	Temporary advances to authorities	9

12.      Further amendments with respect to budget management and

budget estimates 10
13.	New section 44A inserted 10

44A. Accountable officer of public body must provide financial

information 11

14.	Further terminological amendments	11
15.	Regulations and directions	11
16.	Repeal of spent provisions	12
17.	Transitional provision in respect of 1997/98 annual reports	12

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NOTES 13

i

Victoria

No. 1 of 1998

Financial Management (Amendment)

Act 1998†

[Assented to 31 March 1998]

The Parliament of Victoria enacts as follows:

1. Purpose

The main purpose of this Act is to amend the accrual output budgeting.

2. Commencement

This Act comes into operation on 1 July 1998.

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3. Principal Act

In this Act the Financial Management Act 1994	No. 18/1994. Reprint No. 2
is called the Principal Act.	as at 19 June 1997.

4. Definitions

In section 3 of the Principal Act—

(a) after the definition of "public body" insert— ' "outputs" means goods produced or

services provided by or on behalf of an

authority or public body;';

(b) the definition of "services" is repealed.

5. Change of heading to Part 3

For the heading to Part 3 substitute—

"PART 3—PUBLIC LEDGER AND PUBLIC

ACCOUNT".

6. New section 13 substituted

For section 13 of the Principal Act substitute—
"13. Public ledger

The Minister must ensure that a ledger is established and maintained to record—

(a) transactions on the Public Account; and

(b)	expenses and obligations incurred that are to be met out of the Public Account; and
(c)	such other transactions and such account balances as the Minister determines.".

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7. Trust Fund

In section 19(5) of the Principal Act before "the
Consolidated Fund" insert "another Trust

Account or to".

8. Departmental working accounts

In section 23 of the Principal Act for "services"

(wherever occurring) substitute "outputs".

9. Annual financial statement

In section 25 of the Principal Act—

(a) for paragraph (b) substitute— "(b) must present fairly the transactions on

the Public Account and other financial
transactions of the State in respect of
the financial year and the financial
position of the State as at the end of the

financial year;";

(b) for paragraph (g) substitute— "(g) must include details of—

(i)  amounts appropriated in respect of the financial year as a result of a determination under section 32 in the preceding financial year;

(ii)

the application during the any such determination applies;".

10. Budget management

In the Principal Act—

(a) in section 28—

(i)  in sub-section (1) for "to the recurrent services and works and purposes" substitute "for the purposes";

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(ii)  in sub-section (2)(a) for "the purpose of expenditure" substitute "purposes";

(iii)  in sub-section (2)(b) for "expenditure" substitute "allocation";

(iv)  in sub-section (3) for "to the services" substitute "for the purposes";

(b) in section 29—

(i)  for "an item of expenditure of a department" substitute "an item in respect of a department";

(ii)  in paragraph (a) for "services" substitute "outputs";

(c) after section 29(a) insert— "(ab) from sales of assets shown in the

accounts of that department; or".

11. New sections 30 to 36 substituted

For sections 30, 31, 32, 33, 34, 35 and 36 of the
Principal Act substitute—

"30. Transfer between items of departmental

appropriation

(1) The relevant Minister in relation to a

department, with the consent of the amount appropriated for an item in a Schedule to an annual appropriation Act in respect of the department may be transferred to, and applied for the purposes of, another such item.

(2) The relevant Minister must be of the opinion,

before making a determination under sub-
section (1), that—

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(a)	the amount to be transferred from an item is not required for the purposes of that item; and
(b)	the amount assigned to the item to which the amount is to be transferred is insufficient for the purposes of that item.

(3) A relevant Minister (other than the Minister

administering this section) who makes a
determination under sub-section (1) must
ensure that particulars of the transfer are
given to the Minister administering this
section as soon as possible.

31.  Transfer between items of Parliamentary appropriation

(1) The Presiding Officers—

(a) may determine that part of an amount appropriated for an item in a Schedule to an annual appropriation Act in

respect of a department of the applied for the purposes of, a corresponding item in that Schedule in respect of another department of the Parliament;

(b) may determine, with the consent of the Treasurer, that part of an amount appropriated for an item in a Schedule to an annual appropriation Act in respect of a department of the Parliament may be transferred to, and applied for the purposes of, another item in that Schedule in respect of that or another department.

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(2) The Presiding Officers must be of the

opinion, before making a determination

under sub-section (1), that—

(a)	the amount to be transferred from an item is not required for the purposes of that item; and
(b)	the amount assigned to the item to which the amount is to be transferred is insufficient for the purposes of that item.

(3) The Presiding Officers must ensure that

particulars of a transfer under sub-section (1)
are given to the Minister administering this
section as soon as possible.

(4) In this section, a reference to the Presiding Officers is a reference to—

(a)	in relation to a transfer referred to in sub-section (1)(b) in respect of the Department of Legislative Council, the President of the Legislative Council;
(b)	sub-section (1)(b) in respect of the Department of Legislative Assembly,

in relation to a transfer referred to in Assembly;

(c) in any other case, the President of the Legislative Council and the Speaker of the Legislative Assembly acting jointly.

32. Unused appropriation

(1) If an amount appropriated for a financial

year for an authority or for a department of
the Parliament is not applied, or is not likely
to be applied, in that year, the Minister may
determine that the amount, or part of it, may
not be applied in that financial year but may

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be applied for the authority or department (as
the case requires) in the next financial year.

(2) A determination under sub-section (1) must be made before the end of the financial year to which it relates.

(3) If the Minister makes a determination under sub-section (1), the amount appropriated for the authority or for the department of the

Parliament (as the case requires) in respect of the next financial year is deemed to have been increased accordingly.

(4) An amount to which a determination under

sub-section (1) applies must be shown in the
statement prepared under section 40 for the
next financial year.

33. Appropriation to meet certain obligations
(1) If an amount is applied in a financial year for

the purpose of an item in Schedule 1 to the annual appropriation Act for that year, the Consolidated Fund is appropriated to the

extent necessary to enable money, not future financial year in discharge of the expenses or obligations, or in furtherance of the arrangements, to which the amount applied relates.

exceeding the total of the amount applied or
such lesser amount as is determined by the

(2) If an amount is applied in a financial year for

annual appropriation Act for that year in
respect of depreciation of an asset, the

the purpose of an item in Schedule 1 to the extent necessary to enable money, not exceeding the total of the amount applied or such lesser amount as is determined by the

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Minister under section 34, to be paid in a future financial year in respect of the acquisition of assets.

(3) Sub-sections (1) and (2) apply in respect of

an amount applied under an annual appropriation Act for 1998/99 or a subsequent financial year.

34.  Reduction in amount applied to meet future payments

(1) If the Minister is satisfied that all or part of

an amount applied in a financial year for the
purpose of an item in Schedule 1 to the
annual appropriation Act for that year is no
longer required for that purpose, the Minister
may determine that the amount so applied be
reduced accordingly.

(2) If the Minister makes a determination under sub-section (1), the amount appropriated for the purpose of the relevant item is reduced

by an amount equal to the amount reduced in

accordance with that determination.

35. Temporary advances
(1) There may be issued temporarily out of the

Public Account in a financial year any money (not exceeding in total 0·5% of the total amount appropriated by the annual appropriation Act for that year) required to be provided for advances to the Minister to enable him or her to meet urgent claims before Parliamentary sanction is obtained.

(2) All money issued under sub-section (1) must be paid back into the Public Account

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immediately Parliamentary sanction is

obtained.

(3) All expenses and obligations met from

money issued under sub-section (1) must be included in the expenses and obligations of the financial year in respect of which the

advances were made.

(4) If—

(a)	Parliamentary sanction has not been obtained for the expenses or obligations during the financial year in which an advance under this section was made; and
(b)	the Minister considers it necessary or expedient to carry forward any part of the unused advance to the accounts of the next financial year—

the Minister may do so, and must include a statement of the reasons for doing so in the statement of operations under Part 5 in

respect of the financial year.

36. Temporary advances to authorities
(1) There may be issued temporarily out of the

Public Account any money required to provide—

(a)	advances to authorities not exceeding at any time an amount estimated by the Minister to be sufficient to meet one month's expenses, but no such advances may be made unless Parliamentary sanction has been obtained (whether under this or any other Act) for the incurring of those expenses;
(b)	special advances to authorities of specific amounts for specific purposes

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s. 13

Act No. 1/1998

pending adjustment when payment is
made.

(2) All money issued under this section must be

paid back into the Public Account in the
financial year in which the money was
issued unless otherwise approved by the
Minister.".

12.  Further amendments with respect to budget management and budget estimates

(1) In the Principal Act—

(a) in section 37(1) omit "and applied temporarily";

(b) in section 37(2)—

(i) omit "and applied";

(ii)  in paragraph (b) for "sums are" substitute "money is";

(c) in section 38(2) omit "but in any case within the financial year in which the advances are made";

(d) in section 40(1)—

(i)  in paragraph (b) for "money" substitute "amount";

(ii)  in paragraph (c) after "receipts" insert "and receivables".

(2) After section 40(2) of the Principal Act insert— '(3) In this section—

"department" includes a department of the

Parliament.'.

13.  New section 44A inserted

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After section 44 of the Principal Act insert—

"44A. Accountable officer of public body must

provide financial information

(1) The accountable officer of a public body must provide to the relevant Minister in relation to the public body or to the Minister

administering this section any financial
information requested by the relevant
Minister or Minister administering this

section (as the case may be).

(2) Directions under section 8 may be given in

relation to the provision of financial information under sub-section (1).".

14. Further terminological amendments

In the Principal Act—

(a)	in section 46(2) for "cash payments from all sources made by the department or public body in" substitute "expenses and obligations of the department or public body in respect of";
(b)	in section 53A(6) for "cash payments from all sources made by the body in" substitute "expenses and obligations of the body in

respect of";

(c) in sections 54B(a), 54C(2)(e) and 54L(1) omit ", works".

15. Regulations and directions

(1) In section 59(1) of the Principal Act—

(a) for paragraph (f) substitute— "(f) the management and disposal or writing

off of the assets (other than money) and liabilities of the State and the recording

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of and accounting for those assets and liabilities;";

(b) in paragraph (i) omit ", works".

(2) After section 59(1) of the Principal Act insert—

"(1A) For the avoidance of doubt, the power to

make regulations under sub-section (1) for or
with respect to public money or the Public
Account extends to regulations with respect
to money in a Trust Account in the Trust
Fund that is established by or under another

Act.".

16. Repeal of spent provisions

In the Principal Act sections 60 and 61 are repealed.

17.  Transitional provision in respect of 1997/98 annual reports

At the end of section 62A of the Principal Act
insert—

"(2) Despite the commencement of the Financial

Management (Amendment) Act 1998—

(a)	the financial statement under section 24 in respect of the financial year 1997/98; and
(b)	the report of operations and financial statements of a department or public body under Part 7 in respect of that

financial year—

must be prepared as if that Act had not come

into operation.".

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Financial Management (Amendment) Act 1998

Notes Act No. 1/1998

NOTES

†

Minister's second reading speech—

Legislative Assembly: 26 February 1998

Legislative Council: 17 March 1998

The long title for the Bill for this Act was "to amend the Financial
Management Act 1994 with respect to accrual output budgeting and for
other purposes."