FINANCIAL MANAGEMENT LEGISLATION AMENDMENT ACT 2005 (NO. 52 OF 2005)

Australian Capital Territory Numbered Acts

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FINANCIAL MANAGEMENT LEGISLATION AMENDMENT ACT 2005 (NO. 52 OF 2005) - SECT 38

Part 8

substitute

Part 8 Financial provisions for territory authorities

54 Application—pt 8

(1) This part applies to the following territory authorities:

• ACT Gambling and Racing Commission

• ACT Health Promotion Authority

• ACT Insurance Authority

• ACTION Authority

• Australian Capital Territory Public Cemeteries Authority

• Australian Capital Tourism Corporation

• Building and Construction Industry Training Fund Authority

• Canberra Institute of Technology

• Cleaning Industry Long Service Leave Authority

• Construction Industry Long Service Leave Authority

• Cultural Facilities Corporation

• Exhibition Park Corporation

• Independent Competition and Regulatory Commission for the Australian Capital Territory

• Land Development Agency

• Legal Aid Commission (A.C.T.)

• Public Trustee for the Australian Capital Territory

• Stadiums Authority

• University of Canberra.

(2) This part also applies to a territory authority prescribed by the financial management guidelines.

55 Responsibilities of chief executive officers of territory authorities

(1) This section applies to a territory authority if the authority does not have a governing board.

Note Section 76 (2) sets out the territory authorities that have governing boards.

(2) The chief executive officer of the territory authority is responsible, under the responsible Minister, for the efficient and effective financial management of the authority.

(3) Without limiting subsection (2), the chief executive officer of the territory authority is responsible, under the responsible Minister, for ensuring the following:

(a) that the expenses incurred by the authority are properly authorised;

(b) that, if an appropriation is made in relation to the authority, any amount of the appropriation spent by the authority is spent in accordance with the appropriation;

(c) that, as far as practicable, the operations of the authority during a financial year are consistent with, and comparable to, the estimates in the authority's statement of intent for the year.

(d) that payments made by the authority are properly authorised and correctly made;

(e) that the staff of the authority comply with the requirements of this Act;

Note A reference to an Act includes a reference to the statutory instruments made or in force under the Act, including in this case the financial management guidelines (see Legislation Act, s 104).

(f) that proper accounts and records are kept of the transactions and affairs of the authority in accordance with generally accepted accounting principles;

(g) that adequate control is maintained over the assets of the authority and assets under the authority's control;

(h) that adequate control is maintained over the incurring of liabilities by the authority.

(4) A report prepared by the territory authority under the Annual Reports (Government Agencies) Act 2004 for a financial year must include an explanation of material variations between the actual results of the authority for the year and the estimates in the authority's statement of intent for the year.

56 Responsibilities of governing boards of territory authorities

(1) This section applies to a territory authority if the authority has a governing board.

Note Section 76 (2) sets out the territory authorities that have governing boards.

(2) The governing board of the territory authority is responsible, under the responsible Minister, for the efficient and effective financial management of the authority.

(3) Without limiting subsection (2), the governing board of the territory authority is responsible, under the responsible Minister, for ensuring the following:

(a) that expenses incurred by the authority are properly authorised;

(b) that, if an appropriation is made in relation to the authority, any amount of the appropriation spent by the authority is spent in accordance with the appropriation;

(c) that, as far as practicable, the operations of the authority during a financial year are consistent with, and comparable to, the estimates in the authority's statement of intent for the year;

(d) that payments made by the authority are properly authorised and correctly made;

(e) that the staff of the authority comply with the requirements of this Act;

Note A reference to an Act includes a reference to the statutory instruments made or in force under the Act, including in this case the financial management guidelines (see Legislation Act, s 104).

(f) that proper accounts and records are kept of the transactions and affairs of the authority in accordance with generally accepted accounting principles;

(g) that adequate control is maintained over the assets of the authority and assets under the authority's control;

(h) that adequate control is maintained over the incurring of liabilities by the authority.

57 Banking accounts of territory authorities

(1) A territory authority may open 1 or more banking accounts for the purposes of the authority.

(2) A territory authority must at all times keep at least 1 banking account.

(3) A banking account of a territory authority must not, without the Treasurer's written approval, be opened or kept otherwise than with an authorised deposit-taking institution with which an agreement is in force under section 32 (Agreement for the conduct of banking for Territory).

58 Investment by territory authorities

(1) Funds not immediately required for the purposes of a territory authority may be invested—

(a) on deposit with an authorised deposit-taking institution; or

(b) in Territory, State or Commonwealth securities; or

(d) in an investment prescribed for this paragraph.

(2) However, the funds of the territory authority may only be invested under this section to increase or protect the financial wealth of the authority.

(3) Transfers between the territory banking account and the banking account of a territory authority to facilitate investments may be made without appropriation.

(4) Interest received by the Treasurer for the investment of funds of a territory authority must be paid to the territory authority.

(5) However, if an investment of funds of a territory authority is made or managed by a department, the department may deduct from the interest received by the department for the investment—

(a) a fee charged by the department for making or managing the investment; and

(b) expenses reasonably incurred by the department in making or managing the investment.

(6) Interest that is to be paid to a territory authority under subsection (4) may be paid direct to the territory authority or through the territory banking account.

(7) If interest to be paid to a territory authority is paid into the territory banking account under subsection (6), the interest may be paid to the authority from that account without further appropriation.

(8) This section does not apply to money held on trust by a territory authority.

59 Borrowing by territory authorities

(1) The Treasurer may, on the terms and conditions the Treasurer considers appropriate—

(a) borrow money for a territory authority; or

(b) lend public money to a territory authority.

(2) A borrowing may be secured by the territory authority's assets approved by the Treasurer for this section.

(3) A territory authority may arrange an overdraft or credit facility only with the written approval of the Treasurer.

(4) A loan under subsection (1) (b) may be made only from—

(a) money appropriated for the purpose of making the loan; or

(b) money appropriated for purposes that include the purpose of making the loan.

(5) However, subsection (4) does not apply to an overdraft or credit facility for a territory authority from the territory banking account that is approved, in writing, by the Treasurer for the authority.

(6) The Treasurer may approve an overdraft or credit facility for a territory authority under subsection (5) only if satisfied that it is for a purpose consistent with a function of the authority.

(7) An approval under subsection (5) must state, for the overdraft or credit facility—

(a) each purpose for which it may be used; and

(b) the maximum amount that may be outstanding at any time; and

(i) the repayment of principal; and

(ii) the interest rate; and

(iii) the repayment of interest.

(8) An approval under subsection (5) may also state any other condition that the Treasurer requires.

(9) An approval under subsection (5) is a disallowable instrument.

Note A disallowable instrument must be notified, and presented to the Legislative Assembly, under the Legislation Act.

(10) An overdraft or credit facility approved under subsection (5) must be reviewed annually by the Treasurer.

60 Guarantees by territory authorities

A territory authority may only give a guarantee with the written approval of the Treasurer.

61 Territory authority statements of intent

(1) A territory authority must give the Treasurer a statement (a statement of intent ) for each financial year.

(2) A territory authority must consult the responsible Minister in preparing a statement of intent.

(3) A territory authority must show the responsible Minister a copy of the proposed statement of intent, and take into consideration any comment by the Minister, before giving it to the Treasurer.

(4) A statement of intent must be—

(a) in the form the Treasurer requires; and

(b) as agreed between the relevant person for the authority and the Treasurer; and

(5) A statement of intent for a financial year must include the following:

(a) the financial statements required under the financial management guidelines;

(b) a statement of the objectives of the authority for the year, and each of the next 3 financial years;

(c) a statement of the nature and scope of the activities to be carried out by the authority during the year, and each of the next 3 financial years;

(d) the performance criteria and other measures by which the performance of the authority may be assessed against its objectives for the year, and each of the next 3 financial years;

(e) an assessment of the performance (or estimated performance) of the authority in the previous financial year against its objectives for that year;

(f) the results of any review under section 59 (10) in the previous financial year of an overdraft or credit facility approved for the authority;

(g) any other information the Treasurer directs.

(6) In this section:

"relevant person", for a territory authority, means—

(a) if the authority has a governing board—the chair of the governing board; or

(b) if the authority does not have a governing board—the chief executive officer.

62 Presentation of statements of intent of territory authorities

(1) The Treasurer must present to the Legislative Assembly, with the budget papers for a financial year, a statement of intent for each territory authority for the year.

(2) If the Treasurer does not present to the Legislative Assembly, with the budget papers for a financial year, a statement of intent for a territory authority, the Treasurer must—

(a) as soon as practicable after the budget papers are presented, explain to the Legislative Assembly why the statement of intent was not presented; and

(b) present the statement of intent to the Legislative Assembly as soon as practicable after presenting the budget papers.

63 Annual financial statements of territory authorities

(1) As soon as practicable after the end of each financial year, each territory authority must prepare annual financial statements for its operations during the year.

(2) The annual financial statements must be prepared in accordance with generally accepted accounting principles and in a form that facilitates a comparison between the financial operations of the territory authority during the financial year and the estimates of the operations in the authority's statement of intent for the year.

(3) The annual financial statements must include—

(a) the financial statements required under the financial management guidelines; and

(b) if a change was made during the year to the conditions of a capital injection set out under section 12A (1) (c) (ii) (Territory authority and territory-owned corporation budgets) in a statement included in a proposed budget for the authority for a financial year—a statement of the change and the reasons for it; and

(c) any other statement necessary to fairly reflect the financial operations of the authority during the year and its financial position at the end of the year.

64 Responsibility for annual financial statements of territory authorities

(1) The annual financial statements of a territory authority for a financial year must have endorsed on them, or attached to them, a statement of responsibility signed by the relevant person for the authority.

(2) The statement of responsibility must—

(a) include a statement of the relevant person's responsibility for the preparation of the annual financial statements and the judgments exercised in preparing them; and

(b) state that, in the relevant person's opinion, the financial statements fairly reflect the financial operations of the authority during the financial year and the financial position of the authority at the end of the year.

(3) In this section:

"relevant person", for the territory authority, means—

(a) if the authority has a governing board—the chair of the governing board; or

(b) if the authority does not have a governing board—the chief executive officer.

65 Audit of annual financial statements of territory authorities

(1) The chief executive officer of a territory authority must give the auditor-general the annual financial statements of the authority for a financial year within the prescribed period after the end of the year.

(2) The financial statements given to the auditor-general must have endorsed on them, or attached to them, the statement of responsibility made for them under section 64.

(3) The auditor-general must give the chief executive officer an audit opinion about the financial statements as soon as practicable after the auditor-general receives them.

66 Annual financial statements of territory authorities to be included in annual reports etc

A report prepared under the Annual Reports (Government Agencies) Act 2004 for a territory authority for a financial year must include, or have attached to it—

(a) the authority's annual financial statements for the year; and

(b) the audit opinion under section 65 (3) about the financial statements.

67 Treasurer may require interim financial statements etc for territory authorities

(1) The Treasurer may, in writing, direct the relevant person for a territory authority to give the responsible Minister of the authority and the Treasurer financial or other statements relating to the authority for each month, quarter or other stated period of the year.

(2) The relevant person must prepare the statements required by the direction and give them to the responsible Minister and Treasurer within 1 month after the day the person receives the direction or, if a longer period for compliance is stated in the direction, within the longer period.

(3) In this section:

"relevant person", for a territory authority, means—

(a) if the authority has a governing board—the chair of the governing board; or

(b) if the authority does not have a governing board—the chief executive officer.

68 Statements of performance of territory authorities

(1) As soon as practicable after the end of each financial year, each territory authority must prepare a statement of the performance of the authority in meeting the objectives in the authority's statement of intent for the year.

(2) The statement must assess the performance by reference to the performance criteria and other measures included in the statement of intent in accordance with section 61 (5) (d).

(3) For a prescribed territory authority, the statement must also include a statement of the performance of the authority in providing each class of outputs provided by it during the year and, in particular—

(a) compare the performance of the territory authority in providing each class of the outputs with the forecast of the performance in the authority's budget for the year; and

(b) give particulars of the extent to which the performance criteria set out in the budget for the provision of the outputs were met.

(4) In this section:

"budget", for the territory authority, means the budget for the authority for the financial year presented to the Legislative Assembly under section 10 (c) (Budget papers) and, if that budget has been amended under this Act, the budget as amended.

"prescribed territory authority" means a territory authority prescribed for section 12A (1) (b) (Territory authority and territory-owned corporation budgets).

69 Responsibility for territory authority statements of performance

(1) A statement of performance of a territory authority for a financial year must have endorsed on it, or attached to it, a statement of responsibility signed by the relevant person for the authority.

(2) The statement of responsibility must—

(a) include a statement of the relevant person's responsibility for the preparation of the statement of performance and the judgments exercised in preparing them; and

(b) state that, in the relevant person's opinion, the statement of performance fairly reflects the performance of the authority during the financial year.

(3) In this section:

"relevant person", for the territory authority, means—

(a) if the authority has a governing board—the chair of the governing board; or

(b) if the authority does not have a governing board—the chief executive officer.

70 Scrutiny of territory authority statements of performance

(1) The chief executive officer of a territory authority must give the auditor-general the authority's statement of performance for a financial year within the prescribed period after the end of the year.

(2) The statement of performance given to the auditor-general must have endorsed on it, or attached to it, the statement of responsibility made for it under section 69.

(3) The auditor-general must give the chief executive officer a report about the statement of performance as soon as practicable after the auditor-general receives it.

(4) The report must be prepared in accordance with the financial management guidelines.

71 Territory authority statements of performance to be included in annual reports etc

A report prepared under the Annual Reports (Government Agencies) Act 2004 for a territory authority for a financial year must include, or have attached to it—

(a) the authority's statement of performance for the year; and

(b) the auditor-general's report under section 70 (3) about the statement of performance.

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