Office of the Auditor General

Financial Management Act 2004

Financial Management Act

PART 7 – ACCOUNTABILITY

Division 1 – Whole of government

Quarterly appropriation statements

43 - (1) The Minister must table in the House of Representatives a quarterly appropriation statement for each of the first, third and fourth quarters of a financial year.

(2) The quarterly appropriation statement for a quarter must be tabled -

(a) within 2 months after the end of the quarter; or

(b) if the House is not sitting in the last 7 days of the second month after the quarter and the report has not been tabled, within 3 sitting days of the House after the end of that second month.

(3) The quarterly appropriation statement for a quarter of a financial year must include –

(a) for each head of appropriation, a statement specifying the matters set out in subsection (4); and

(b) for the whole of government, a statement specifying the matters set out in subsection (5).

(4) The statement for each head of appropriation must specify the following –

(a) the actual expenditure for the quarter;

(b) the cumulative actual expenditure for the financial year to the end of the quarter (except in the case of the first quarter);

(d) the amount appropriated for the financial year, including details of reportable authorisations relating to that head of appropriation;

(e) the budget sector agency administering the appropriation.

(5) The statement for the whole of government must specify the following –

(a) the total actual expenditure for the quarter;

(b) the total cumulative actual expenditure for the financial year to the end of the quarter (except in the case of the first quarter);

(d) the total amount appropriated for the financial year.

Mid-year fiscal statement

44 – (1) The Minister must table in the House of Representatives a mid-year fiscal statement for the first 6 months of each financial year.

(2) The mid-year fiscal statement for the period of 6 months must be tabled -

(a) within 2 months after the end of the period; or

(b) if the House is not sitting in the last 7 days of the second month after the period and the report has not been tabled, within 3 sitting days of the House after the end of that second month.

(3) The mid-year fiscal statement for the period of 6 months must include a statement specifying–

(a) for each head of appropriation, a statement specifying the matters set out in subsection (4); and

(b) for the whole of government, a statement specifying the matters set out in subsection (5).

(4) The statement for each head of appropriation must specify -

(a) the expenditure for the period of 6 months;

(b) the projected expenditure for the financial year;

(c) the amount appropriated for the financial year, including details of reportable authorisations relating to that head of appropriation;

(d) the budget sector agency administering the appropriation.

(5) The statement for the whole of government must specify the following –

(a) the total revenue and total expenditure, and the surplus or deficit, for the period of 6 months, compared with the revenue and expenditure, and the surplus or deficit, for the corresponding period of the previous financial year;

(b) the projected total revenue and total expenditure, and the projected surplus or deficit, for the financial year, compared with the actual revenue and expenditure, and surplus or deficit, for the previous financial year.

Annual reports

45 – (1) The Minister must table in the House of Representatives a whole of government annual report for each financial year .

(2) The annual report for a financial year must be tabled within 9 months after the end of that year or within a longer period approved for that year by resolution of the House of Representatives.

(3) The annual report for a financial year must include –

(a) the whole of government financial statements referred to in section 46 ;

(b) the annual appropriation statement referred to in section 47 ; and

(4) The chief executive officer of the Ministry of Finance is responsible for the preparation of whole of government annual reports and the statements required to be included in them.

Whole of government financial statements

46 - (1) The whole of government financial statements required to be included in the whole of government annual report for a financial year must include –

(a) for financial years where the Minister is satisfied that relevant reliable accrual information is available –

(i) a statement of financial position;

(ii) a statement of financial performance;

(iii) a statement of changes in net assets;

(iv) a cash flow statement; and

(v) notes on significant accounting policies,

prepared in accordance with international accounting standards relevant to whole of government reporting on an accrual basis; or

(b) for financial years where the Minister is satisfied that relevant reliable accrual information is not available –

(i) one or more statements of receipts and payments;

(ii) a statement of assets and liabilities, including details of cash balances , investments , sinking funds and borrowings; and

(iii) a statement of contingent liabilities .

(2) The whole of government financial statements must –

(a) be signed by the chief executive officer of the Ministry of Finance; and

(b) be as audited by the Auditor-General and be accompanied by the Auditor-General's audit opinion.

Annual appropriation statement

47 - (1) The annual appropriation statement required to be included in the whole of government annual report for a financial year must –

(a) show the actual revenue and expenditure , and surplus or deficit, for the financial year ;

(b) show the corresponding revenue estimates and appropriations for the financial year ; and

(2) The annual appropriation statement must -

(a) be signed by the chief executive officer of the Ministry of Finance; and

(b) be as audited by the Auditor-General and be accompanied by his or her audit opinion.

Annual budget statement

48 – (1) The annual budget statement required to be included in the whole of government annual report for a financial year must –

(a) show the revenue , expenditure , and surplus or deficit, for each of the 2 previous financial years;

(b) show the estimated revenue , expenditure , and surplus or deficit, for the financial year;

(d) provide a disaggregation of revenue , estimated revenue and projected revenue by economic type;

(e) provide a disaggregation of expenditure , estimated expenditure and expenditure by economic type; and

(f) include a statement comparing, for each type of financial target or limit specified in the most recently tabled strategic policy statement under section 12 –

(i) that target or limit;

(ii) any revisions specified in the budget statement or statements under section 13 of that target or limit; and

(iii) the actual results.

(2) The annual budget statement is to be prepared as far as practicable in accordance with internationally accepted standards.

Division 2 – Budget sector agencies

Annual reports

49 – (1) Each budget sector agency must prepare and make publicly available, for each financial year , an annual report in the manner and times required by the Finance Instructions .

(2) The annual report must –

(a) be provided to the responsible Minister within the time set by the Finance Instructions or within a further time approved by the responsible Minister and allowed by the Finance Instructions ; and

(b) be tabled in the House of Representatives by the responsible Minister .

(3) The annual report must be tabled –

(a) within one week of its being received by the responsible Minister ; or

(b) if the House of Representatives is not sitting in the last 3 days of that week and the report has not been tabled , within 3 sitting days of the House after the end of that week.

(4) The annual report of a budget sector agency for a financial year must –

(a) demonstrate the agency's performance during the year in terms of its outputs and of its contributions to outcomes ;

(b) include the agency's annual financial statements referred to in section 50 ; and

(5) The annual report required by this section for a budget sector agency may be included in the annual report (if any) required by or under another Act for the agency, but the composite report must comply with the requirements of this section.

(6) In this section –

“ the responsible Minister ” for a budget sector agency means the Minister responsible for the agency or a Minister determined by the Finance Instructions.

Annual financial statements

50 – (1) The annual financial statement required to be included in the annual report for a budget sector agency must be prepared in the manner and times required by the Finance Instructions , and contain the particulars required by or under the Finance Instructions .

(2) The annual financial statement for a budget sector agency must –

a) be signed by the chief executive officer of the agency or by a person specified for that purpose in the Finance Instructions ; and

b) be audited by the Auditor-General and be accompanied by his or her audit opinion.

Annual reports

51 - (1) Each off-budget state entity must, subject to the regulations, prepare, submit and publish an annual report under this section for each financial year .

(2) An off-budget state entity's annual report for a financial year under this section must –

(a) be prepared, submitted and published in the manner and times required by the regulations;

(b) be tabled in the House of Representatives in the manner and time required by the regulations;

(d) include other information required by the regulations.

(3) The annual report required by this section for an off-budget state entity may be included in any annual report required under other legislation applying to the entity, but the composite report (including its preparation, submission, publication and tabling) must comply with the requirements of this Division.

(4) The regulations may provide that specified requirements of this section or of regulations made for the purposes of this section do not apply to a particular state entity or class of state entities.

Annual financial statements

52 - (1) The annual financial statements required to be included in the annual report for an off-budget state entity must –

(a) be the financial statements prepared under other legislation applying to the entity; or

(b) if paragraph (a) does not apply, be prepared in the manner and times required by the regulations and contain the particulars required by or under the regulations.

(2) The annual financial statement for an off-budget state entity must –

(a) be signed by the chairperson and the chief executive officer of the entity or by persons specified for that purpose in the regulations; and

(b) be as audited under the applicable requirements of the Audit Act (Cap. 70).

(3) In this section –

“ chairperson ”

This Division not to apply to certain state entities

53. This Division does not apply to government commercial companies or commercial statutory authorities .

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