Reprint as at 28 July 2014

Public Finance Act 1989

Public Act1989 No 44
Date of assent26 July 1989
Commencementsee section 1

Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Treasury.


Contents

Title [Repealed]

1 Short Title and commencement

1A Purpose

2 Interpretation

2A Provisions affecting application of amendments to this Act

3 Act to bind Crown

3AA Meaning of generally accepted accounting practice [Repealed]

3A Power to amend Schedule 4

3AB Power to amend Schedule 4A

3B Power to amend Schedule 5 to reflect name changes

3C Power to amend Schedule 5 to restore company to State-Owned Enterprises Act 1986

3D Power to amend Schedule 6 to reflect name changes

Part 1
Appropriations

Requirement for appropriations

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

4A Authority to incur expenses or capital expenditure under Imprest Supply Act

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

6 Authority to spend public money

7 Expenses and capital expenditure must be allocated to appropriation type

7A Appropriation types

7B Requirements for multi-category appropriations

7C Responsibility for, and administration and use of, appropriations

8 Appropriation limited by amount

9 Appropriation limited by scope

9A Supplementary Estimates [Repealed]

9B Power of Secretary to obtain information [Repealed]

10 Appropriation limited by period

11 Expenses or payments authorised other than by Appropriation Act

12 Timing of main Appropriation Bill for financial year

Requirements for capital injections

12A Capital injections must be authorised

12B Authority to make capital injections under Imprest Supply Act

Information requirements for appropriations

13 Estimates and supporting information must be presented with main Appropriation Bill

14 Content of Estimates

15 Main Appropriation Bill: supporting information relating to Votes

15A Main Appropriation Bill: supporting information relating to appropriations

15B Comparative information requirements if no directly corresponding appropriation or category

15C End-of-year performance information requirements

15D Exemptions from end-of-year performance information requirements for certain categories of expenses and capital expenditure

15E Main Appropriation Bill: supporting information relating to capital injections

15F Minister may present further supporting information

16 Supplementary Estimates and supporting information must be presented with Supplementary Appropriation Bill

17 Content of Supplementary Estimates

17A Supplementary Appropriation Bill: supporting information relating to appropriations

17B Supplementary Appropriation Bill: supporting information relating to capital injections

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

19 Power of Secretary to obtain information

Reporting on appropriations: end-of-year performance information

19A Provision of end-of-year performance information other than by Ministers

19B Provision of end-of-year performance information by Ministers

19C Requirements for end-of-year performance information

Other provisions relating to appropriations

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

21 Expenses restricted by revenue

22 Operating surplus of department

23 Net assets of departments must be confirmed [Repealed]

24 Movements within departmental statement of financial position

25 Expenses or capital expenditure may be incurred in emergencies

25A Capital injections may be made 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

26CA Capital injections made without authority or approval require validation by Parliament

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

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

26KA Contents of fiscal strategy report: management of the Crown's resources

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

Investment statement

26NA Investment statement

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 Publication 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 and published

31A Monthly financial statements of Government

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

32 Monthly cash flow statements [Repealed]

32A Additional reports in relation to non-departmental appropriations [Repealed]

Part 4
Reporting by departments and departmental agencies

33 Extended meaning of department for purpose of Part 4

Responsibilities of chief executives

34 Responsibilities of chief executives: financial management of departmental matters

35 Responsibilities of chief executives: financial management of non-departmental matters

36 Responsibilities of chief executives: reporting

Power of chief executives to obtain information

37 Power of chief executives to obtain information

Reporting requirements: information on strategic intentions

38 Departments must provide information on strategic intentions

38A Responsible Minister may require department to provide information on strategic intentions at any time

39 Obligation to publish and present information on strategic intentions

40 Requirements for information on strategic intentions

41 Minister may grant extension of time for, or waive, requirement to provide information on strategic intentions

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 [Repealed]

Reporting requirements—Annual reports

43 Departments must prepare annual reports

43A Departmental agencies must prepare annual reports

44 Obligation to present and publish annual reports

45 Contents of annual report of department

45AA Contents of departmental agency annual report

45A Statements of expenses and capital expenditure

45B Annual financial statements

45BA Forecast 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 [Repealed]

Part 5
Special reporting requirements

Subpart 1Special annual reporting requirements

45H Application of subpart

45I First annual report for newly established entities

45J Final annual report for disestablished entities

45K Final annual report for entities that cease to be subject to requirement to provide annual report

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

Subpart 2Application of Crown Entities Act 2004 to Schedule 4 organisations

45M Application of Crown Entities Act 2004 to Schedule 4 organisations

45N Exemptions from certain sections of Crown Entities Act 2004 for Schedule 4 organisations

45O Special provisions relating to Reserves Boards

Part 5AAA
Non-listed companies in which the Crown is majority or sole shareholder

45OA Application of Crown Entities Act 2004 to non-listed companies in which the Crown is majority or sole shareholder

Part 5A
Mixed ownership model companies

Preliminary provisions

45P Definitions of mixed ownership model company and other terms

45Q Treaty of Waitangi (Te Tiriti o Waitangi)

51% Crown control

45R Restriction on reduction of the Crown's holding below 51% control

10% limit

45S 10% limit on holdings by persons other than the Crown

45T Effect of exceeding 10% limit

45U Exemption from 10% limit for trustee corporations and nominee companies, etc

45V Power of FMA to remove exemption from 10% limit for trustee corporations, nominee companies, etc

Continuing application of certain provisions

45W Certain provisions of State-Owned Enterprises Act 1986 and other enactments continue to apply

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

Subpart 1Borrowing

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 [Repealed]

Subpart 2Securities

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 [Repealed]

Subpart 3Derivative 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 4Investment

Investment of public money

65I Investment of public money

65J Payment of expenses relating to investment [Repealed]

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 [Repealed]

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 5Banking

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 6Guarantees 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

Subpart 7Permanent legislative authority for payment of certain expenses

65ZH Permanent legislative authority for payment of certain expenses

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 [Repealed]

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

85 Government stock in United Kingdom [Repealed]

86 Consequential amendments [Repealed]

87 Repeals [Repealed]

88 Application, savings, and transitional provisions relating to amendments to Act

Schedule 1
Application, savings, and transitional provisions relating to amendments made to Act after 1 January 2013

Schedule 2
Enactments repealed

[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 4A
Non-listed companies in which Crown is majority or sole shareholder

Schedule 5
Mixed ownership model companies

Schedule 6
Legal entities created by Treaty of Waitangi settlement Acts

Schedule 7
Crown entities subject to section 16

[Repealed]

Public Finance Amendment Act 2004

Reprint notes


Title  [Repealed]

  • Title: repealed, on 25 January 2005, by section 3 of the Public Finance Amendment Act 2004 (2004 No 113).