Public Finance Act 1989

  • not the latest version

Reprint as at 1 July 2008

Public Finance Act 1989

Public Act1989 No 44
Date of assent26 July 1989
Note

Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this eprint.

A general outline of these changes is set out in the notes at the end of this eprint, together with other explanatory material about this eprint.

This Act is administered in the Treasury.

Contents

Title

1 Short Title and commencement

1A Purpose

2 Interpretation

3 Act to bind Crown

3A Power to amend Schedule 4

3AA Meaning of generally accepted accounting practice [Repealed]

Part 1
Appropriations

Requirement for appropriations

4 Expenses or capital expenditure must not be incurred unless in accordance with appropriation or statutory authority

5 Public money must not be spent unless in accordance with statutory authority

6 Authority to spend public money

7 Separate appropriation required for types of expenses and capital expenditure

8 Appropriation limited by amount

9 Appropriation limited by scope

9A Supplementary Estimates [Repealed]

10 Appropriation limited by period

11 Expenses or payments authorised other than by Appropriation Act

12 Timing of first Appropriation Bill for financial year

Information requirements for appropriations

13 Estimates and other supporting information must be presented with first Appropriation Bill

14 Content of Estimates

15 Other supporting information for first Appropriation Bill

16 Supplementary Estimates must be presented with Supplementary Appropriation Bill

17 Content of Supplementary Estimates

18 Minister must consult on proposal to change format or content of information presented with Appropriation Bills

19 Power of Secretary to obtain information

Other provisions relating to appropriations

20 Departments may incur output expenses for, or on behalf of, other departments

21 Expenses restricted by revenue

22 Operating surplus of department

23 Net assets of departments must be confirmed

24 Movements within departmental statement of financial position

25 Expenses or capital expenditure may be incurred in emergencies

26 Minister may determine terms and conditions of capital injections

26A Transfer of resources between output expense appropriations

26B Minister may approve expenses or capital expenditure to be incurred in excess of existing appropriation

26C Expenses or capital expenditure incurred without appropriation or other authority requires validation by Parliament

26D Reporting requirements in relation to expenses or capital expenditure incurred in excess of, or without, appropriation

Application of this Part to Offices of Parliament

26E Application of this Part to Offices of Parliament

Part 2
Fiscal responsibility

Preliminary

26F Interpretation

26G Principles of responsible fiscal management

26H Generally accepted accounting practice

Fiscal strategy report

26I Fiscal strategy report

26J Contents of fiscal strategy report: long-term objectives

26K Contents of fiscal strategy report: short-term intentions

26L Contents of fiscal strategy report: other matters

Budget policy statement

26M Budget policy statement

Statement on long-term fiscal position

26N Statement on long-term fiscal position

Economic and fiscal updates

26O Economic and fiscal update

26P Economic forecasts

26Q Fiscal forecasts

26R Annual statement of tax policy changes

26S Half-year economic and fiscal update

26T Pre-election economic and fiscal update

Disclosure requirements for economic and fiscal updates

26U Disclosure of policy decisions and other circumstances that may influence future fiscal situation

26V Limits on disclosure requirements

Statement of responsibility

26W Requirements for statement of responsibility

Miscellaneous

26X Certain statements and updates may be published in advance of presentation to House of Representatives

26Y Notification and availability of reports, statements, or updates

26Z Power of Secretary to obtain information

Part 3
Reporting by Government reporting entity

27 Annual financial statements of Government

28 Half-year financial statements of the Crown [Repealed]

29 Responsibility for annual financial statements of Government

29A Power of Secretary to obtain information

29B Auditor-General to be auditor of Government reporting entity

30 Audit report

31 Annual financial statements must be presented to House of Representatives

31A Monthly financial statements of Government

31B Publication, inspection, and purchase of financial statements of Government reporting entity

32 Monthly cash flow statements [Repealed]

32A Additional reports in relation to non-departmental appropriations

Part 4
Reporting by departments

33 Interpretation

Responsibilities of chief executives

34 Responsibilities of departmental chief executives: financial management

34A Forecast financial statements of departments [Repealed]

35 Responsibilities of departmental chief executives: reporting

36 Departmental chief executives not responsible for financial performance of other entities

Power of chief executives to obtain information

37 Power of departmental chief executives to obtain information

Reporting requirements—information on future operating intentions

38 Departments must provide information on future operating intentions

39 Obligation to present and publish information on future operating intentions

40 Requirements for information on future operating intentions

41 Extra information required for first financial year

41A Special provisions in relation to annual financial statements of school Board of Trustees [Repealed]

41B Special provisions in relation to annual financial statements of Boards under Reserves Act 1977 [Repealed]

41C Draft statement of intent [Repealed]

41D Contents of statement of intent [Repealed]

41E Completed statement of intent [Repealed]

41F Laying of statement of intent before House of Representatives [Repealed]

41G Power of Responsible Minister to require Crown entity to modify statement of intent [Repealed]

41H Power of Crown entity to modify statement of intent [Repealed]

41I Annual report of Crown entities named or described in Schedule 6 [Repealed]

42 Information on future operating intentions must include statement of responsibility

Reporting requirements—annual reports

43 Departments must prepare annual reports

44 Obligation to present and publish departmental annual reports

44A Laying before House of Representatives of financial statements of Crown entities (other than school Boards of Trustees and Reserves Boards) [Repealed]

44B Annual report in relation to schools' sector [Repealed]

44C Annual financial statements of school Boards of Trustees [Repealed]

44D Annual financial statements of Reserves Boards [Repealed]

45 Contents of departmental annual report

45A Statement of service performance

45B Annual financial statements

45C Statement of responsibility

45D Audit report

Miscellaneous

45E Application of this Part to intelligence and security departments

45F Application of this Part to Offices of Parliament

45G This Part modified for purpose of applying Part to Offices of Parliament

Part 5
Special reporting requirements

Subpart 1—Special annual reporting requirements

45H Application of subpart

45I First annual report for newly established entities

45J Final annual report for disestablished entities

45K Timing of special annual reports, etc

45L Minister may allow certain information to be included in another entity's annual report if operations transferred

Subpart 2—Application of provisions of Crown Entities Act 2004 to organisations named or described in Schedule 4

45M Provisions of Crown Entities Act 2004 that apply to all Schedule 4 organisations

45N Some provisions of Crown Entities Act 2004 applied to some Schedule 4 organisations

45O Special provisions relating to Reserves Boards

Part 6
Borrowing, securities, derivative transactions, investment, banking, and guarantees

Subpart 1—Borrowing

Limits on borrowing by the Crown

46 The Crown must not borrow except under statute

47 Minister may borrow on behalf of the Crown if in public interest

48 Power to borrow must not be delegated

49 The Crown not liable for debts of Crown entities, etc

Appointment of borrowing agents

50 Minister may appoint agents for purpose of borrowing money

51 Appointment of borrowing agents does not prevent exercise of power by Minister

52 Borrowings must be taken to be lawful

52A Crown not to issue securities except under statute [Repealed]

53 Borrowing agents may delegate powers

Terms and conditions of borrowing

54 Minister may determine terms and conditions of borrowing

55 Charge on public revenues

56 Power to borrow by issue of series of similar securities

57 Power to vary borrowings of the Crown

58 Conversion of money borrowed by the Crown

58A Authority for the giving by the Crown of guarantees and indemnities [Repealed]

59 Minister may appoint underwriters, managers, etc, for borrowings of the Crown

Payments relating to borrowings

60 Payment of principal and interest on money borrowed by the Crown

61 Expenses in respect of money borrowed by the Crown

Subpart 2—Securities

Limits on the Crown issuing securities

62 The Crown must not issue securities except under statute

63 Minister may issue securities for money borrowed by the Crown

64 Issue or variation of security taken to be lawful

Terms and conditions of securities

65 Securities must be in name of Sovereign

65A Power to vary public securities

65B Issue of new public security on loss, damage, or destruction of public security

65C Execution of securities

Payments relating to securities

65D Payments under public securities

65E Expenses in respect of securities

Subpart 3—Derivative transactions

Limits on the Crown entering into derivative transactions

65F The Crown must not enter into derivative transactions

65G Minister may enter into derivative transactions if in public interest

Payments relating to derivative transactions

65H Payments relating to derivative transactions of the Crown

Subpart 4—Investment

Investment of public money

65I Investment of public money

65J Payment of expenses relating to investment

Limits on lending by the Crown

65K The Crown must not lend money except under statute

65L Minister may lend money to persons or organisations if in public interest

65M Minister may lend money to foreign government

65N Authority to lend money includes authority to defer payments

65O Repayment of money lent by the Crown

65P Appropriation required for lending

65Q Securities relating to lending must be in name of Sovereign

Subpart 5—Banking

Crown Bank Accounts

65R Crown Bank Accounts

Departmental Bank Accounts

65S Departmental Bank Accounts

65T Directions relating to operation of Departmental Bank Accounts

General

65U Payment into Bank Accounts

65V Requirements for payment of money out of Bank Accounts

65W Powers of Minister or Treasury in relation to Crown Bank Account and Departmental Bank Account

65X Statement of accounts must be sent to Treasury or Auditor-General

65Y Treasury must report on all expenses and capital expenditure incurred with or without appropriation or other statutory authority

65Z Auditor-General may direct Ministers to report to House of Representatives in cases involving unlawful expenses, etc

65ZA Auditor-General may stop payments out of Bank Accounts

65ZB Application of this subpart to Offices of Parliament

Subpart 6—Guarantees and indemnities

Limits on giving by the Crown of guarantees and indemnities

65ZC Guarantee or indemnity by the Crown must not be given except under statute

65ZD Minister may give guarantee or indemnity if in public interest

65ZE Departments may give guarantee or indemnity specified in regulations if in public interest

Other provisions relating to guarantees and indemnities

65ZF Recovery of money paid under guarantee

65ZG Payments in respect of guarantees or indemnities

Part 7
Trust money

66 Trust money

67 Establishment of bank accounts for trust money

68 Investment of trust money

69 Payment of interest on trust money

70 Unclaimed trust money

Part 7A
Security and intelligence departments

[Repealed]

70A Interpretation [Repealed]

Appropriations

70B Nature of appropriation required [Repealed]

70C Estimates [Repealed]

Banking and investment

70D Departmental Bank Accounts [Repealed]

70E Payment into Bank Accounts [Repealed]

70F Power of Minister or Treasury in relation to Crown Bank Account and Departmental Bank Account [Repealed]

Reporting

70G Annual financial statements [Repealed]

70H Half-yearly financial statements [Repealed]

70I Tabling of financial statements [Repealed]

70J Information to be provided to Treasury [Repealed]

70K Treasury instructions [Repealed]

Part 8
General provisions

71AA Delegation of Secretary's powers

71 Payments on behalf of governments and international organisations

72 Payments on behalf of local authorities

73 Payment of fines to local authorities and other organisations that conduct prosecutions

74 Unclaimed money

75 Minister may exercise powers relating to bona vacantia

76 Offences

77 Penalties for offences

78 Time for commencing proceedings

79 Information to be provided to Treasury

80 Treasury instructions

80A Minister of Finance instructions

81 Regulations, Orders in Council, and notices

82 Consultation and approval requirements for regulations or instructions relating to reporting standards

83 Abolition of certain accounts

84 Registration of public securities, local authority stock, and other stock

85 Government stock in United Kingdom

86 Consequential amendments

87 Repeals

88 Transitional provisions

Schedule 1
Enactments consequentially amended

Schedule 2
Enactments repealed

Schedule 3
Liabilities, and categories of liabilities, not included in definition of contingent liability

[Repealed]

Schedule 4
Organisations for the purposes of subpart 2 of Part 5

Schedule 5
Crown entities required to include statements of service performance in their annual financial statements

[Repealed]

Schedule 6
Crown entities required to prepare statements of intent

[Repealed]

Schedule 7
Crown entities subject to section 16

[Repealed]

Reprint notes

An Act to amend the law governing the use of public financial resources and to that end to—

  • (a) Provide a framework for Parliamentary scrutiny of the Government's management of the Crown's assets and liabilities, including expenditure proposals; and

  • (b) Establish lines of responsibility for the use of public financial resources; and

  • (c) Establish financial management incentives to encourage effective and efficient use of financial resources in departments and Crown entities; and

  • (d) Specify the minimum financial reporting obligations of the Crown, departments, and Crown entities; and

  • (e) Safeguard public assets by providing statutory authority and control for the raising of loans, issuing of securities, giving of guarantees, operation of bank accounts, and investment of funds

  • In the Long Title paragraphs (c) and (d) were amended, as from 21 December 1992, by section 2 Public Finance Amendment Act 1992 (1992 No 142) by substituting in both paragraphs the words “Crown entities” for the words “Crown agencies”.

BE IT ENACTED by the Parliament of New Zealand as follows: