OF PARLIAMENT VICTORIA
Financial Management (Amendment) Act 1998
Act No.
TABLE OF PROVISIONS
Clause 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
NOTES 13
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PARLIAMENT OF VICTORIA
A BILL
to amend the Financial Management Act 1994 with respect to
accrual output budgeting and for other purposes.
Financial Management (Amendment)
Act 1998
The Parliament of Victoria enacts as follows:
1. Purpose
The main purpose of this Act is to amend the
Financial Management Act 1994 with respect to
accrual output budgeting.
5 2. Commencement
This Act comes into operation on 1 July 1998.
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3. Principal Act
No. 18/1994. In this Act the Financial Management Act 1994
Reprint No. 2
is called the Principal Act.
as at 19 June
1997.
4. Definitions
5 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;';
10 (b) the definition of "services" is repealed.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".
15 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--
20 (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
25 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".
5 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--
10 (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
15 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
20 the financial year as a result of a
determination under section 32 in
the preceding financial year;
(ii) the application during the
financial year of amounts to which
25 any such determination applies;".
10. Budget management
In the Principal Act--
(a) in section 28--
(i) in sub-section (1) for "to the recurrent
30 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";
5 (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
10 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
15 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
20 appropriation
(1) The relevant Minister in relation to a
department, with the consent of the
Treasurer, may determine that part of an
amount appropriated for an item in a
25 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,
30 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
5 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
10 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
15 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
20 respect of a department of the
Parliament may be transferred to, and
applied for the purposes of, a
corresponding item in that Schedule in
respect of another department of the
25 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
30 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
5 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
10 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.
15 (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
20 President of the Legislative Council;
(b) in relation to a transfer referred to in
sub-section (1)(b) in respect of the
Department of Legislative Assembly,
the Speaker of the Legislative
25 Assembly;
(c) in any other case, the President of the
Legislative Council and the Speaker of
the Legislative Assembly acting jointly.
32. Unused appropriation
30 (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
that determine the amount, or part of it, may
35 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
5 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
10 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
15 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
20 Consolidated Fund is appropriated to the
extent necessary to enable money, not
exceeding the total of the amount applied or
such lesser amount as is determined by the
Minister under section 34, to be paid in a
25 future financial year in discharge of the
expenses or obligations, or in furtherance of
the arrangements, to which the amount
applied relates.
(2) If an amount is applied in a financial year for
30 the purpose of an item in Schedule 1 to the
annual appropriation Act for that year in
respect of depreciation of an asset, the
Consolidated Fund is appropriated to the
extent necessary to enable money, not
35 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
5 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
10 (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
15 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
20 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
25 money (not exceeding in total 05% 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
30 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
5 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
10 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
15 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
20 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
25 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
30 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
35 specific amounts for specific purposes
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pending adjustment when payment is
made.
(2) All money issued under this section must be
paid back into the Public Account in the
5 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
10 (1) In the Principal Act--
(a) in section 37(1) omit "and applied
temporarily";
(b) in section 37(2)--
(i) omit "and applied";
15 (ii) in paragraph (b) for "su...