The Parliament of New Zealand enacts as follows:
This Act is the Public Finance Amendment Act 2013.
(1)
Part 2 comes into force on 1 July 2014.
(2)
The rest of this Act comes into force on the day after the date on which it receives the Royal assent.
This Act amends the Public Finance Act 1989 (the principal Act).
In section 1A(2)(d), after “departments,”, insert “departmental agencies,”.
“departments,”
“departmental agencies,”
In section 1A(2)(d), replace “and organisations named or described in Schedule 4” with “Schedule 4 organisations, and Schedule 4A companies”.
“and organisations named or described in Schedule 4”
“Schedule 4 organisations, and Schedule 4A companies”
(3)
In section 1A(2)(e), replace “organisations named or described in Schedule 4” with “Schedule 4 organisations and Schedule 4A companies”.
“organisations named or described in Schedule 4”
“Schedule 4 organisations and Schedule 4A companies”
In section 2(1), insert in their appropriate alphabetical order:
appropriation administrator,—
in relation to an appropriation made to the Crown, means the department that administers the appropriation on behalf of the appropriation Minister; and
in relation to an appropriation made to an Office of Parliament, means that Office of Parliament
appropriation Minister,—
in relation to an appropriation made to an Office of Parliament, means the Speaker; and
in relation to an appropriation administered by the Office of the Clerk of the House of Representatives or the Parliamentary Service, means the Speaker; and
in relation to any other appropriation, means the Minister responsible for that appropriation
category,—
in relation to expenses, means a grouping of similar or related expenses; and
in relation to capital expenditure, means a grouping of similar or related items of capital expenditure
In section 2(1), definition of chief executive, after paragraph (a), insert:
in the case of a departmental agency, the person holding office under section 31 of the State Sector Act 1988 as the chief executive of the departmental agency:
In section 2(1), definition of Crown or the Sovereign, paragraph (c)(iii), after “State-Owned Enterprises Act 1986”, insert “; or”.
“State-Owned Enterprises Act 1986”
“; or”
(4)
In section 2(1), definition of Crown or the Sovereign, after paragraph (c)(iii), insert:
a Schedule 4 organisation; or
a Schedule 4A company; or
a mixed ownership model company
(5)
In section 2(1), definition of department, replace paragraph (a) with:
means—
a department (as defined in section 27A(1) and (2) of the State Sector Act 1988); or
the New Zealand Defence Force; or
the New Zealand Police; or
the New Zealand Security Intelligence Service; or
the Parliamentary Counsel Office; or
the Office of the Clerk of the House of Representatives; or
the Parliamentary Service; but
(6)
departmental,—
in relation to expenses, means expenses incurred by a department or an Office of Parliament; and
in relation to capital expenditure, means capital expenditure incurred by a department or an Office of Parliament
departmental agency has the meaning given in section 27A of the State Sector Act 1988 (see also section 27B of that Act)
host department, in relation to a departmental agency, has the meaning given in section 27A(1) and (2) of the State Sector Act 1988
lend money—
includes—
deferring payment for any goods or services supplied or works constructed for any person, organisation, or government; and
entering into hire purchase agreements or agreements that are of the same or a substantially similar nature; and
entering into finance lease arrangements or arrangements that are of the same or a substantially similar nature; but
does not include selling or supplying goods or services on credit for a period of 90 days or less from the date the credit is supplied
non-departmental,—
in relation to expenses, means expenses incurred on behalf of the Crown, other than by a department or an Office of Parliament; and
in relation to capital expenditure, means capital expenditure incurred on behalf of the Crown, other than by a department or an Office of Parliament
permanent legislative authority,—
in relation to incurring expenses or capital expenditure, means an express authority given by or under an Act other than an Appropriation Act to incur expenses or capital expenditure without further appropriation (see, for example, section 65H(2), which relates to certain finance expenses, and section 9 of the Ombudsmen Act 1975, which relates to salaries and allowances of Ombudsmen); and
in relation to spending public money, means an express authority given by or under an Act to spend public money without further authority (see, for example, section 6)
(7)
In section 2(1), definition of public money,—
after “received by”, insert “or on behalf of”; and
“received by”
“or on behalf of”
delete “or money received and held by Crown entities”.
“or money received and held by Crown entities”
(8)
In section 2(1), replace the definition of responsible Minister with:
responsible Minister means,—
in relation to an Office of Parliament, to the Office of the Clerk of the House of Representatives, or to the Parliamentary Service, the Speaker:
in relation to any other department, the Minister for the time being responsible for the financial performance of the department:
in relation to a Schedule 4 organisation, the Minister for the time being responsible for the financial performance of the organisation:
in relation to a Schedule 4A company, the Minister and the other shareholding Minister or Ministers
(9)
Schedule 4 organisation means an organisation named or described in Schedule 4
Schedule 4A company means a company named in Schedule 4A
After section 2, insert:
Schedule 1 contains application, savings, and transitional provisions relating to amendments made to this Act after 1 January 2013 (see section 88).
Replace section 3A with:
The Governor-General may, by Order in Council made on the recommendation of the Minister, amend Schedule 4—
to add the name or description of—
any body, office (except an Office of Parliament), or officer established by or under an Act; or
any trust that is created by the Crown by deed of trust or in respect of which the Crown has appointed, or has the power to appoint, a majority of the trustees:
to apply to an organisation any provision of the Crown Entities Act 2004 that appears in Schedule 4 (other than section 165 of that Act):
to disapply to an organisation any provision of the Crown Entities Act 2004 that appears in Schedule 4:
to substitute the name of an organisation in recognition of a change in its name:
to remove the name or description of an organisation.
The Minister must recommend that an Order in Council be made to remove the name or description of an organisation from Schedule 4 if, and only if, the Minister is satisfied that—
the organisation has become a company or a Crown entity; or
in the case of a body, office, or officer established by or under an Act, the body, office, or officer has been disestablished; or
in the case of a trust,—
the trust has been wound up; or
the Crown no longer has the power to appoint a majority of the trustees.
The Governor-General may, by Order in Council made on the recommendation of the Minister, amend Schedule 4A—
to add the name of a company that meets the following criteria:
Ministers of the Crown hold, on behalf of the Crown, more than 50% of the issued ordinary shares in the capital of the company; and
shares in the company are not listed on a registered market (within the meaning of the Securities Markets Act 1988); and
the company is not a Crown entity or a State enterprise named in Schedule 1 of the State-Owned Enterprises Act 1986:
to apply to a company any provision of the Crown Entities Act 2004 that appears in Schedule 4A (other than section 165 of that Act):
to disapply to a company any provision of the Crown Entities Act 2004 that appears in Schedule 4A:
to substitute the name of a company in recognition of a change in its name:
to remove the name of a company.
The Minister must recommend that an Order in Council be made to remove the name of a company from Schedule 4A if the Minister is satisfied that—
the company has been removed from the register of companies kept under the Companies Act 1993; or
the company no longer meets the criteria set out in subsection (1)(a).
Replace section 4(2)(b)(ii) with:
After section 4, insert:
The authority given by an Imprest Supply Act to incur expenses or capital expenditure in a financial year in advance of appropriation is an authority under an Act for the purposes of sections 4(1) and 26C(1).
However, subsection (1) does not apply unless an appropriation for the expenses or capital expenditure is made before the end of the financial year.
After section 7, insert:
An appropriation is made to the Crown or an Office of Parliament.
In the case of an appropriation made to the Crown,—
a Minister (the appropriation Minister) is responsible for the appropriation; and
the appropriation must be administered by 1 department (the appropriation administrator) on behalf of the appropriation Minister; and
if the appropriation is an appropriation for departmental expenses or a multi-category appropriation, any other department may incur expenses against the appropriation—
at the direction of the appropriation Minister; or
with the agreement of the appropriation administrator.
Despite subsection (2)(a), the Speaker is responsible for any appropriation administered by the Office of the Clerk of the House of Representatives or the Parliamentary Service.
In the case of an appropriation made to an Office of Parliament,—
the Speaker is responsible for the appropriation; and
the appropriation must be administered by that Office of Parliament.
In section 11(2), after “in accordance with an appropriation”, insert “, or other authority,”.
“in accordance with an appropriation”
“, or other authority,”
In section 19(1), after “a department”, insert “, a departmental agency,”.
“a department”
“, a departmental agency,”
In section 19(4), after “department”, insert “, departmental agency,”.
“department”
“, departmental agency,”
Repeal section 20.
Repeal section 25(3).
In section 26Z(1), after “department”, insert “, any departmental agency,”.
“, any departmental agency,”
In section 26Z(4), after “department”, insert “, departmental agency,”.
Replace section 27(3)(b) with:
all Schedule 4 organisations:
all Schedule 4A companies:
In section 29A(1), after “department”, insert “, any departmental agency,”.
In section 29A(4), after “department”, insert “, departmental agency,”.
In section 29B, replace “this Act” with “this Act,”.
“this Act”
“this Act,”
In the heading to section 31, after “House of Representatives”, insert “and published”.
“House of Representatives”
“and published”
In section 31(3), after “published”, insert “, on an Internet site maintained by or on behalf of the Treasury,”.
“published”
“, on an Internet site maintained by or on behalf of the Treasury,”
After section 31(3), insert:
The Secretary must ensure that the annual financial statements, the audit report, and the statement of responsibility remain available on that Internet site for inspection by members of the public for at least 5 financial years after the financial year to which the annual financial statements relate.
In section 31A(4), after “published”, insert “, on an Internet site maintained by or on behalf of the Treasury,”.
After section 31A(4), insert:
The Secretary must ensure that the monthly financial statements remain available on that Internet site for inspection by members of the public for at least 5 financial years after the financial year to which the monthly financial statements relate.
Repeal section 31B.
In the Part 4 heading, after “departments”, insert “and departmental agencies”.
“departments”
“and departmental agencies”
Replace sections 33 to 36 and the cross-heading above section 34 with:
In this Part, the following activities, bodies, and statutory offices must be taken to be part of a department:
any activities, other than activities performed by a natural person or separate legal entity, that are funded by way of appropriation administered by the department:
any bodies or statutory offices, other than natural persons or separate legal entities, that are funded by way of appropriation administered by the department.
The chief executive of a department—
is responsible to the responsible Minister for the financial management, financial performance, and financial sustainability of the department; and
must comply with any lawful financial actions required by the Minister or the responsible Minister.
The chief executive of a department that administers an appropriation—
is responsible to the appropriation Minister for what is achieved with departmental expenses and departmental capital expenditure under that appropriation; and
is responsible for advising the appropriation Minister on the efficiency and effectiveness of any departmental expenses or departmental capital expenditure under that appropriation.
However, if a department other than the appropriation administrator, or any departmental agency, incurs departmental expenses or departmental capital expenditure against the appropriation at the direction of the appropriation Minister (under section 7C(2)(c)(i)), then the chief executive of that department or departmental agency, rather than the chief executive of the appropriation administrator, has the responsibility specified in subsection (2)(a) in respect of that expenditure.
The chief executive of a department is responsible for—
the financial management of, and financial reporting on, appropriations for non-departmental expenses and non-departmental capital expenditure administered by the department; and
advising the appropriation Minister on the efficiency and effectiveness of expenditure under those appropriations; and
the financial management of, and financial reporting on, assets, liabilities, and revenue managed by the department on behalf of the Crown; and
advising the Minister responsible for those assets, liabilities, and revenue on their performance.
The chief executive of a department is responsible to the responsible Minister for ensuring that the department complies with the reporting requirements imposed on the department by or under this or any other Act.
The chief executive of a departmental agency is responsible, to the Minister for the time being responsible for the performance of the departmental agency, for ensuring that the departmental agency complies with the reporting requirements imposed on the departmental agency by or under this or any other Act.
In the heading to section 37, delete “departmental”.
“departmental”
Replace section 37(1) with:
The chief executive of a department or departmental agency may request any specified person to supply to the chief executive any information that is necessary to enable the chief executive to carry out his or her responsibilities in relation to the department or departmental agency (as applicable) under sections 34 to 36.
In section 37(3), after “department”, insert “or departmental agency”.
“or departmental agency”
Replace sections 43 and 44 with:
As soon as practicable after the end of each financial year, each department must prepare a report on the operations of the department for that financial year, excluding operations on which any departmental agency hosted by the department is required to report under section 43A.
Not later than 15 working days after receiving an audit report under section 45D, the department must provide the annual report and the audit report to its responsible Minister.
This section does not limit any provision in any other Act that requires the chief executive of a department to provide an annual report, but the chief executive need not provide a separate report under each enactment.
As soon as practicable after the end of each financial year, each departmental agency must prepare a report on the operations of the departmental agency for that financial year.
As soon as practicable after the end of the financial year, but not later than 15 working days after the audit date (as defined in section 44(6)), the departmental agency must provide the annual report and any applicable audit report to—
the Minister for the time being responsible for the performance of the departmental agency; and
the responsible Minister for the departmental agency’s host department.
This section does not limit any provision in any other Act that requires the chief executive of a departmental agency to provide an annual report, but the chief executive need not provide a separate report under each enactment.
A responsible Minister must present to the House of Representatives—
the annual report of a department for which he or she is the responsible Minister and any applicable audit report; and
the annual report of any departmental agency hosted by a department for which he or she is the responsible Minister and any applicable audit report.
The responsible Minister (or the Minister referred to in subsection (3)(b), if applicable) must comply with subsection (1)—
not later than 15 working days after the audit date; or
if Parliament is not in session, as soon as possible after the commencement of the next session of Parliament.
A Minister other than the responsible Minister may present an annual report and audit report (if any) to the House of Representatives if—
those reports are presented in a document that includes another report or other information (see subsection (5)); and
that other Minister is responsible for presenting that other report or information.
A department or departmental agency must publish its annual report and any applicable audit report—
as soon as practicable after the annual report has been presented to the House of Representatives, but, if subsection (2)(b) applies, not later than 15 working days after the audit date; and
in accordance with the manner (if any)—
prescribed by regulations made under this Act; or
specified in instructions issued by the Minister under section 80A.
The annual report of a department or departmental agency may be presented or published in a document that includes any other report or information, whether or not that other report or information relates to the department or departmental agency, but only if each report or set of information is separately identifiable within that document.
In this section,—
audit date means,—
in the case of a department, the date on which the department receives an audit report; and
in the case of a departmental agency, the date on which the departmental agency’s host department receives an audit report
audit report means an audit report under section 45D.
After section 45(2), insert:
(2A)
However, a department’s annual report need not include information that any departmental agency hosted by the department is required to include in its annual report under section 45AA.
After section 45, insert:
The annual report of a departmental agency must contain the following information in respect of the financial year to which it relates:
an assessment of the departmental agency’s operations; and
an assessment of the departmental agency’s progress in relation to any of the host department’s future operating intentions that are relevant to the departmental agency; and
information about the departmental agency’s management of its organisational health and capability; and
any other matters that relate to or affect the departmental agency’s operations that the departmental agency is required, has undertaken, or wishes to report on in its annual report.
The annual report of a departmental agency must identify the departmental agency’s host department.
The annual report must be dated and signed on behalf of the departmental agency by its chief executive.
Replace section 45H(1) with:
This subpart applies to the following entities:
a department and any other entity that must provide an annual report that includes audited annual financial statements for presentation to the House of Representatives; and
a departmental agency; and
an entity that must provide audited annual financial statements (rather than an annual report) for presentation to the House of Representatives.
In section 45H(2), replace “subsection (1)(b)” with “subsection (1)(c)”.
“subsection (1)(b)”
“subsection (1)(c)”
Replace sections 45I to 45K with:
The Minister may (at the Minister’s discretion) exempt an entity that is established during the last 4 months of a financial year from the obligation to provide an annual report for that financial year.
Despite subsection (1), an entity that administers an appropriation must, after the end of that financial year, provide the following statements and report as if they were an annual report:
the statements of expenses and capital expenditure required by section 45B(2)(c) and (d); and
an audit report on those statements.
An entity that is exempted under subsection (1) must, after the end of the entity’s first full financial year, provide an annual report that covers the period from the date on which the entity is established until the end of the entity’s first full financial year.
To avoid doubt, the annual report referred to in subsection (3) must contain the information required to be included in the entity’s annual report, except that the information must be in respect of the period referred to in that subsection.
Subsections (1) to (4) also apply to an entity that, during the last 4 months of a financial year, becomes subject to the requirement to provide an annual report for presentation to the House of Representatives.
An entity that is disestablished must provide a final report for the period—
commencing at the start of the financial year in which the entity is disestablished; and
ending on the date on which the entity is disestablished (the disestablishment date).
The final report must be—
prepared as if it were an annual report; and
provided not later than 3 months after the disestablishment date.
If the Minister is satisfied that it is necessary or expedient to transfer some or all of the responsibility for providing a final report to another party,—
the Minister may approve the transfer of that responsibility; and
if the Minister does so, each party with responsibility for providing the final report must sign the statement of responsibility for the report in respect of the matters in the report for which the party is responsible.
An entity that ceases to be subject to the requirement to provide an annual report for presentation to the House of Representatives must provide a final report for the period—
commencing at the start of the financial year in which the entity ceases to be subject to the requirement to provide an annual report; and
ending on the date on which the entity ceases to be subject to the requirement to provide an annual report (the specified date).
provided not later than 3 months after the specified date.
Despite subsection (2)(b), the Minister may allow the entity to provide the final report later than 3 months after the specified date on any conditions that the Minister thinks fit.
Replace sections 45M and 45N and the subpart 2 heading in Part 5 with:
The following sections of the Crown Entities Act 2004, and any regulations that apply to the matters referred to in those sections, apply to a Schedule 4 organisation as if the organisation were a Crown entity under that Act:
sections 133 and 134 (which relate to supply of information):
sections 154 to 156 (which relate to annual financial statements, statements of responsibility, and audit reports):
section 158 (which relates to bank accounts):
if there is a tick in a column of the table in Schedule 4 of this Act alongside the name or description of the organisation, the section indicated in the heading of that column:
if section 139 of the Crown Entities Act 2004 (which is the obligation to prepare a statement of intent) applies to the organisation under paragraph (d), sections 138 and 141 to 149 of that Act (which also relate to statements of intent):
if section 150 of the Crown Entities Act 2004 (which is the obligation to prepare, present, and publish an annual report) applies to the organisation under paragraph (d), sections 151 (other than subsection (1)(b)), 152, and 154 to 157 of that Act (which also relate to annual reports).
The responsible Minister for a Schedule 4 organisation that is required, under subsection (1)(d), to produce a statement of service performance under section 153 of the Crown Entities Act 2004 must present that statement to the House of Representatives with the annual financial statements required under subsection (1)(b).
If a Schedule 4 organisation is established or regulated under an Act, the provisions applied by this section apply to the organisation subject to any express negation or modification of the provision in that Act.
The Minister may exempt a Schedule 4 organisation, for 1 or more financial years or until further notice, from any of the requirements in sections 141, 151, and 152 of the Crown Entities Act 2004, other than the requirements in section 151(1)(c) to (e).
If the Minister considers that it is necessary or desirable to grant an exemption under this section, the Minister may grant the exemption—
by notice in writing to the organisation; and
on any conditions that the Minister thinks fit.
After section 45O, insert:
The following provisions of the Crown Entities Act 2004 apply to a Schedule 4A company as if the company were a Crown entity company under the Crown Entities Act 2004:
section 79 (which relates to formation and acquisition of shares):
sections 81 and 82 (which require a constitution to be presented to the House of Representatives), except that section 81 must be read as if it required the constitution to contain a statement to the effect that the company is a company named in Schedule 4A of the Public Finance Act 1989:
sections 83 and 84 (which relate to the shareholding Minister), except that, if the company is not 100% Crown-owned, the references in section 84 to a shareholding Minister must be read as if they were references to the shareholders:
section 85 (which relates to the interface between the Crown Entities Act 2004 and the Companies Act 1993 and other Acts in respect of Crown entity companies):
if the company is 100% Crown-owned,—
section 88 (which sets out the shareholding Ministers’ role):
section 88A (which sets out the monitor’s role):
sections 89 to 92, 94, and 95 (which relate to appointment, removal, and duties of board members), except that, if the company is not 100% Crown-owned, the reference in section 94(1) to duties owed to the shareholding Ministers must be read as a reference to duties owed to shareholders:
sections 96, 97, and 99 (which relate to subsidiaries):
section 100 (which relates to the acquisition of shares or interests in companies, trusts, and partnerships, etc):
section 102 (which relates to the interface between the Crown Entities Act 2004 and the Companies Act 1993 and other Acts in respect of Crown entity subsidiaries):
sections 107 to 111 and 113 (which relate to directions under section 107 of the Crown Entities Act 2004):
section 114 (which relates to government directions):
section 118 (which is the obligation to be a good employer):
sections 132 to 135 (miscellaneous provisions):
sections 136 to 157 (which relate to reporting obligations):
if there is a tick in a column of the table in Schedule 4A of this Act alongside the name of the company, the section indicated in the heading of that column.
In the case of a Schedule 4A company that is not 100% Crown-owned, subsection (1)(n) does not prevent the shareholders from agreeing on a process for minority shareholders to be involved in the process of preparing, reviewing, or amending the statement of intent or statement of performance expectations referred to in sections 136 to 157 of the Crown Entities Act 2004, but only if the agreed process is not inconsistent with those sections.
For the purposes of subsections (1) and (2), a Schedule 4A company is 100% Crown-owned if Ministers of the Crown, on behalf of the Crown, hold 100% of the issued ordinary shares in the capital of the company.
For the purposes of section 107(2)(a) of the Crown Entities Act 2004, Schedule 4A companies may be treated as a category of Crown entities.
If a Schedule 4A company is established or regulated under an Act, the provisions applied by this section apply to the company subject to any express negation or modification of the provision in that Act.
In section 49(1)(a), replace “or an organisation named or described in Schedule 4” with “, a Schedule 4 organisation, or a Schedule 4A company”.
“or an organisation named or described in Schedule 4”
“, a Schedule 4 organisation, or a Schedule 4A company”
In section 49(1)(b), replace “or of an organisation named or described in Schedule 4” with “, a Schedule 4 organisation, or a Schedule 4A company”.
“or of an organisation named or described in Schedule 4”
In section 65I(3), after “Crown Bank Account”, insert “or, if the Minister directs, a Departmental Bank Account”.
“Crown Bank Account”
“or, if the Minister directs, a Departmental Bank Account”
Replace section 65K with:
Except as expressly authorised by any Act, the Crown must not lend money to a person or an organisation.
Repeal section 65N.
Replace section 65Z(1)(a) and (b) with:
is not within the scope, amount, or period of any appropriation, or other authority, by or under an Act; or
is, for any other reason, unlawful.
In section 65ZA(1), replace paragraphs (a) and (b) with:
In section 65ZD(2)(b), replace “the person” with “a person”.
“the person”
“a person”
Replace section 65ZD(3) with:
If the contingent liability of the Crown under a guarantee or an indemnity given by the Minister under subsection (1) exceeds $10 million, the Minister must, as soon as practicable after giving the guarantee or indemnity, present a statement to the House of Representatives that the guarantee or indemnity has been given.
Replace section 65ZE(3) with:
If the contingent liability of the Crown under a guarantee or an indemnity given by a department under subsection (1) exceeds $10 million, the responsible Minister must, as soon as practicable after the guarantee or indemnity is given, present to the House of Representatives a statement that the guarantee or indemnity has been given.
Replace section 67(2) with:
All trust money must, as soon as practicable after being identified as trust money, be lodged in a Trust Bank Account.
Replace section 71AA(1)(b) with:
conferred on the Minister by this Act and delegated to the Secretary by the Minister.
In section 73(1), replace “or an organisation named or described in Schedule 4” with “a Schedule 4 organisation, or a Schedule 4A company”.
“a Schedule 4 organisation, or a Schedule 4A company”
In section 74(1), replace “or organisation named or described in Schedule 4” with “Schedule 4 organisation, or Schedule 4A company”.
“or organisation named or described in Schedule 4”
“Schedule 4 organisation, or Schedule 4A company”
In section 74(3), replace “or Crown entity” with “Crown entity, organisation, or company”.
“or Crown entity”
“Crown entity, organisation, or company”
Replace section 75(2) with:
If the Minister or any department or departmental agency, on the application of any person, performs an act under subsection (1), the Minister, department, or departmental agency is entitled to charge the person all reasonable fees and costs incurred.
In section 75(3), replace “in this section shall derogate from” with “in subsection (1) or (2) limits”.
“in this section shall derogate from”
“in subsection (1) or (2) limits”
After section 75(3), insert:
If the Minister, a department, or a departmental agency performs an act under subsection (1) that involves the transfer or disposal of property or a right, that transfer or disposal may be made without further authority than this section.
If the Minister, a department, or a departmental agency performs an act under subsection (1) that involves the spending of public money, that money may be paid out of a Crown Bank Account without further authority than this section.
Subsections (4) and (5) do not affect the validity of anything done before those subsections come into force.
In section 76(2), replace “who” with “who,”.
“who”
“who,”
Replace section 80(1) with:
Subject to the provisions of this Act and of any regulations made under this Act, the Treasury may—
issue instructions to departments or departmental agencies for the purpose specified in section 81(1)(a); and
issue instructions to departments for all or any of the purposes specified in section 81(1)(ab), (b), (bc), (bd), and (c) to (e).
In section 80(2), after “department”, insert “or departmental agency” in each place.
After section 80A(3)(a)(i), insert:
a departmental agency; or
Replace section 80A(3)(a)(iii) with:
a Schedule 4A company; and
Replace section 80A(4) with:
A chief executive of a department, a departmental agency, an Office of Parliament, a Schedule 4 organisation, a Schedule 4A company, or any other entity referred to in section 27(3) must comply with any instructions issued under this section to the extent that the instructions apply to that department, departmental agency, Office, organisation, company, or entity.
In section 81(1)(a), after “departments”, insert “, departmental agencies,”.
“, departmental agencies,”
Replace section 81(1)(ac) with:
prescribing minimum requirements concerning the publication of information that departments, departmental agencies, Offices of Parliament, Schedule 4 organisations, and Schedule 4A companies must publish under this Act:
In section 81(1)(b), replace “or organisations named or described in Schedule 4” with “Schedule 4 organisations, or Schedule 4A companies”.
“or organisations named or described in Schedule 4”
“Schedule 4 organisations, or Schedule 4A companies”
Replace section 81(1)(ba) with:
prescribing the non-financial reporting standards that Ministers, departments, departmental agencies, Offices of Parliament, Schedule 4 organisations, or Schedule 4A companies must apply and the form in which they must provide the information they are required to present to the House of Representatives under this Act:
In section 82(1)(a), replace “departments or organisations named or described in Schedule 4” with “departments, departmental agencies, Schedule 4 organisations, or Schedule 4A companies”.
“departments or organisations named or described in Schedule 4”
“departments, departmental agencies, Schedule 4 organisations, or Schedule 4A companies”
Repeal section 83.
Repeal sections 85 to 87.
Replace section 88 with:
The application, savings, and transitional provisions set out in Schedule 1, which relate to amendments made to this Act after 1 January 2013, have effect for the purposes of this Act.
Replace Schedule 1 with the Schedule 1 set out in Schedule 1 of this Act.
Repeal Schedule 2.
In Schedule 4, repeal the items relating to the following organisations:
Crown Asset Management Limited:
Crown Fibre Holdings Limited:
Dispute Resolution Services Limited:
Health Benefits Limited:
Learning State Limited:
The Network for Learning Limited:
Research and Education Advanced Network New Zealand Limited:
Southern Response Earthquake Services Limited:
Tāmaki Redevelopment Company Limited:
Transferee companies under the New Zealand Railways Corporation Restructuring Act 1990 in which the Crown holds 50% or more of the issued ordinary shares.
In Schedule 4, item relating to New Zealand Game Bird Habitat Trust Board, column relating to section 153 of the Crown Entities Act 2004, delete the tick.
In Schedule 4, item relating to Reserves Boards as defined in section 2 of the Reserves Act 1977, column relating to section 153 of the Crown Entities Act 2004, delete the tick.
After Schedule 4, insert the Schedule 4A set out in Schedule 2 of this Act.
The enactments listed in Schedule 3 are consequentially amended in the manner indicated in that schedule.
In section 2(1), definition of Budget, replace “first Appropriation Bill” with “main Appropriation Bill”.
“first Appropriation Bill”
“main Appropriation Bill”
In section 2(1), definition of Estimates, replace “first Appropriation Bill that relates to” with “main Appropriation Bill for”.
“first Appropriation Bill that relates to”
“main Appropriation Bill for”
In section 2(1), repeal the definition of impact.
In section 2(1), repeal the definition of multi-class output expense appropriation.
In section 2(1), definition of other expenses, replace paragraph (b) with:
benefits or related expenses; or
In section 2(1), repeal the definition of outcome.
In section 2(1), definition of type, replace “section 7(1)” with “section 7A(1)”.
“section 7(1)”
“section 7A(1)”
main Appropriation Bill, in respect of a financial year, means the first Appropriation Bill that relates to that financial year, and main Appropriation Act has a corresponding meaning
multi-category appropriation means an appropriation described in section 7A(1)(g)
In section 2(1), definition of permanent legislative authority (as inserted by section 5 of this Act), replace “section 65H(2)” with “section 65ZH”.
“section 65H(2)”
“section 65ZH”
Replace section 7 with:
All expenses and capital expenditure to be incurred in any financial year must be allocated to one of the appropriation types set out in section 7A(1) within a Vote specified in an Appropriation Act.
An appropriation must be an appropriation for—
1 category of output expenses; or
1 category of benefits or related expenses; or
1 category of borrowing expenses; or
1 category of other expenses; or
1 category of capital expenditure; or
expenses and capital expenditure to be incurred by an intelligence and security department; or
2 or more categories of 1 or more of the following:
output expenses:
other expenses:
non-departmental capital expenditure.
For the purposes of this section,—
a category of output expenses must not include both departmental and non-departmental expenses; and
a category of other expenses must not include both departmental and non-departmental expenses; and
a category of capital expenditure must not include both departmental and non-departmental capital expenditure.
A multi-category appropriation described in section 7A(1)(g)—
must be approved by the Minister; and
must include only categories of expenses or non-departmental capital expenditure that contribute to a single overarching purpose.
Replace section 9(2)(a) with:
the scope of a multi-category appropriation is the scope of each of the individual categories of expenses or non-departmental capital expenditure included in that appropriation; and
In the heading to section 12, replace “first Appropriation Bill” with “main Appropriation Bill”.
In section 12, replace “first Appropriation Bill that relates to” with “main Appropriation Bill for”.
After section 12, insert:
The Crown must not make a capital injection to a department (other than an intelligence and security department) or an Office of Parliament unless the capital injection is authorised under an Appropriation Act.
The authority to make the capital injection—
is limited by the amount specified for the capital injection by that Appropriation Act; and
must not be exceeded, except as provided for in section 25A.
The authority given by an Imprest Supply Act to make a capital injection in a financial year in advance of authorisation under an Appropriation Act must be treated as an authority under an Appropriation Act for the purposes of sections 12A and 26CA.
However, subsection (1) does not apply unless the capital injection is authorised under an Appropriation Act before the end of the financial year.
Replace the heading to section 13 with “Estimates and supporting information must be presented with main Appropriation Bill”.
“Estimates and supporting information must be presented with main Appropriation Bill”
In section 13(2),—
delete “other” in each place; and
“other”
replace “section 15” with “sections 15 to 15F”.
“section 15”
“sections 15 to 15F”
Replace sections 14 and 15 with:
The Estimates must state, for each appropriation sought in the main Appropriation Bill for a financial year and each appropriation authorised for that financial year by an Appropriation Act,—
the Vote to which the appropriation relates; and
the appropriation Minister; and
the appropriation administrator; and
the type of the appropriation (in terms of section 7A(1)); and
in the case of a multi-category appropriation, the overarching purpose of the appropriation (in terms of section 7B(b)); and
the amount authorised by the appropriation (in terms of section 8); and
the scope of the appropriation (in terms of section 9); and
the period of the appropriation (in terms of section 10), but only if the period is more than 1 financial year.
The Estimates must state, for each appropriation authorised by a permanent legislative authority against which it is proposed to incur expenses or capital expenditure in the financial year to which the Estimates relate,—
the authority for the appropriation; and
the information specified in subsection (1)(a) to (h), other than subsection (1)(f); and
the amount forecast to be incurred under the appropriation.
The Estimates must state,—
for each department, the responsible Minister for the department; and
for each department other than an intelligence and security department, the amount of capital injections authorised to be made to the department for the financial year to which the Estimates relate.
The Minister may, in addition to the information referred to in this section, include in the Estimates any further information that the Minister considers necessary or desirable.
The supporting information for the main Appropriation Bill must include, for the total in each Vote of each type of appropriation,—
voted departmental and non-departmental expenses or capital expenditure for the financial year to which the Appropriation Bill relates; and
comparative voted and estimated actual expenses or capital expenditure for the previous financial year; and
comparative actual expenses or capital expenditure for each of the 4 financial years that preceded the previous financial year; and
projected expenses or capital expenditure for each of the 3 financial years following the financial year to which the Appropriation Bill relates.
However, if the Vote has been restructured 1 or more times since the beginning of the period in respect of which supporting information is required under subsection (1), then the comparative information required under that subsection must, to the extent practicable, be prepared as if the restructuring had occurred before the beginning of that period.
For the purposes of subsection (2), a Vote has been restructured if—
it has been combined with, or separated from, any other Vote; or
an appropriation, or a category within a multi-category appropriation, has been moved into the Vote from, or moved out of the Vote into, any other Vote; or
a category of expenses or non-departmental capital expenditure has been moved into or out of a multi-category appropriation within the Vote.
The supporting information for the main Appropriation Bill for a financial year must include the information specified in subsections (2) and (3), including any information required by section 15B, for—
each appropriation sought in the Bill; and
each appropriation authorised for that financial year by an Appropriation Act; and
each appropriation authorised by a permanent legislative authority against which it is proposed to incur expenses or capital expenditure in that financial year.
The following information is required for each appropriation:
a concise explanation of what the appropriation is intended to achieve; and
1 of the following:
the end-of-year performance information details described in section 15C:
if the Minister has, under section 15D, granted an exemption from the end-of-year performance information requirements, the Minister’s reasons for granting the exemption.
The following additional information is required for each category of a multi-category appropriation:
a concise explanation of what the category is intended to achieve; and
projected expenses or non-departmental capital expenditure to be incurred for the category; and
comparative projected and estimated actual expenses or non-departmental capital expenditure for the category for the previous financial year.
However,—
in the case of an appropriation for expenses and capital expenditure to be incurred by an intelligence and security department, subsection (2)(a) and (c) do not apply; and
in the case of an appropriation for borrowing expenses, subsection (2)(c) does not apply.
This section applies if—
section 15A requires the supporting information for the main Appropriation Bill for a financial year to include, for an appropriation or a category within a multi-category appropriation, comparative information for the previous financial year; and
that appropriation or category (the new appropriation or category) does not directly correspond to an appropriation or category for the previous financial year.
The comparative information for the new appropriation or category must include all comparable expenses or capital expenditure.
The comparative information for the new appropriation or category must also, to the extent practicable,—
identify each previous appropriation or category that includes comparable expenses or capital expenditure; and
identify the amount of comparable expenses or capital expenditure for that previous appropriation or category.
In this section, comparable expenses or capital expenditure, in relation to a new appropriation or category, means voted or projected (as applicable) and estimated actual expenses or capital expenditure for a previous appropriation or category that would, if the new appropriation or category had been authorised for the previous financial year, have been within the scope of the new appropriation or category.
The end-of-year performance information details for an appropriation (see section 15A(2)(c)(i)) are—
a concise explanation of how performance against the appropriation will be assessed; and
in the case of a multi-category appropriation, a concise explanation of how performance against each category of the appropriation will be assessed; and
who, in accordance with subsection (2), will provide information at the end of the financial year on what has been achieved with the appropriation; and
the document in which the end-of-year performance information will be presented to the House of Representatives.
End-of-year performance information on an appropriation must be provided,—
for a multi-category appropriation, by the appropriation administrator; and
for an appropriation described in subsection (3), by the appropriation Minister; and
for any other appropriation, by a department, a departmental agency, an Office of Parliament, or a Crown entity.
Subsection (2)(b) applies in respect of an appropriation for non-departmental expenses, or non-departmental capital expenditure, from which resources will be provided to a person or an entity other than a department, a departmental agency, an Office of Parliament, or a Crown entity.
The Minister may grant an exemption from the end-of-year performance information requirements in respect of an appropriation for departmental output expenses, or a category of departmental output expenses within a multi-category appropriation, if the Minister is satisfied that the appropriation or category relates exclusively to outputs supplied by a department to 1 or more other departments.
The Minister may grant an exemption from the end-of-year performance information requirements in respect of an appropriation for non-departmental expenses or non-departmental capital expenditure, or a category of non-departmental expenses or non-departmental capital expenditure within a multi-category appropriation, if the Minister is satisfied that—
the appropriation or category is one from which resources will be provided to a person or an entity other than a department, a departmental agency, an Office of Parliament, or a Crown entity; and
1 of the following applies:
key performance information relevant to the appropriation or category will be otherwise readily available to the House of Representatives:
end-of-year performance information for the appropriation or category is not likely to be informative in the light of the nature of the transaction or causal event giving rise to the expenses or capital expenditure:
the amount of the annual appropriation (or its annual average equivalent if the appropriation is a multi-year or permanent appropriation) or the projected amount of the expenses or non-departmental capital expenditure in the category (or its annual average equivalent if the category is part of a multi-year or permanent appropriation) is less than $5 million for expenses or less than $15 million for capital expenditure.
An exemption under this section may be granted for 1 or more financial years or until further notice.
The Minister’s reasons for granting an exemption must be included in the supporting information for an Appropriation Bill (see section 15A(2)(c)(ii)).
In subsection (2)(b)(iii),—
multi-year appropriation means an appropriation authorised to apply for more than 1 financial year (see section 10)
permanent appropriation means an appropriation authorised by a permanent legislative authority.
The supporting information for the main Appropriation Bill must include, for each capital injection authorised for the financial year to which the Appropriation Bill relates,—
the department to which the capital injection is to be made; and
a concise explanation of what the capital injection is to be used for; and
the amount of the capital injection.
Subsection (1) does not apply to a capital injection to an intelligence and security department.
The Minister may, in addition to the information referred to in sections 15 to 15E, include in the supporting information for the main Appropriation Bill any further information that the Minister considers necessary or desirable.
In the heading to section 16, after “Supplementary Estimates”, insert “and supporting information”.
“Supplementary Estimates”
“and supporting information”
In section 16(a), replace “first Appropriation Bill” with “main Appropriation Bill”.
In section 16, insert as subsection (2):
The Minister must also present to the House of Representatives the supporting information referred to in sections 17A and 17B at the same time that he or she presents the Supplementary Estimates under subsection (1), unless that supporting information is already contained in the Supplementary Estimates.
Replace section 17 with:
The Supplementary Estimates for a financial year must include—
the information specified in section 14(1) for—
each appropriation sought in an Appropriation Bill relating to that financial year; and
the information specified in section 14(2) for each appropriation authorised by a permanent legislative authority against which it is proposed to incur expenses or capital expenditure in that financial year.
The Supplementary Estimates must state,—
for each department other than an intelligence and security department, the amount of capital injections authorised to be made to the department for the financial year.
The Minister may, in addition to the information referred to in this section, include in the Supplementary Estimates any further information that the Minister considers necessary or desirable.
The supporting information for a supplementary Appropriation Bill must include,—
for each new appropriation, the information (excluding comparative information) specified in section 15A; and
for each existing appropriation, any change to the information (excluding comparative information) specified in section 15A that was most recently included in the supporting information for an Appropriation Act in respect of the appropriation.
comparative information means the information specified in section 15A(2)(b) and (3)(c)
existing appropriation, in relation to a supplementary Appropriation Bill for a financial year, means an appropriation for which the information specified in section 15A is included in the supporting information for an Appropriation Act relating to that financial year
new appropriation, in relation to a supplementary Appropriation Bill for a financial year, means—
an appropriation—
that is sought in that Bill; and
for which the information specified in section 15A is not included in the supporting information for any Appropriation Act relating to that financial year; or
that is authorised by a permanent legislative authority to incur expenses or capital expenditure; and
against which it is proposed to incur expenses or capital expenditure in that financial year; and
for which the information specified in section 15A is not included in the supporting information for any Appropriation Act relating to that financial year.
for each new capital injection, the information specified in section 15E; and
for each existing capital injection, any change to the information specified in section 15E that is included in the supporting information for an Appropriation Act relating to that financial year.
existing capital injection, in relation to a supplementary Appropriation Bill and a financial year, means a capital injection for which the information specified in section 15E is included in the supporting information for an Appropriation Act relating to that financial year
new capital injection, in relation to a supplementary Appropriation Bill and a financial year, means a capital injection—
that is authorised for that financial year; and
for which the information specified in section 15E is not included in the supporting information for any Appropriation Act relating to that financial year.
This section does not apply to a capital injection to an intelligence and security department.
Replace section 18(1) with:
This section applies if the Minister proposes to significantly change the format or content of—
the Estimates (see section 14); or
the supporting information for a main Appropriation Bill (see sections 15 to 15E); or
the Supplementary Estimates (see section 17); or
the supporting information for a supplementary Appropriation Bill (see sections 17A and 17B).
Replace section 19(1)(a) to (c) with:
the Estimates; or
Replace section 19(3)(a) and (b) with:
the Estimates and the supporting information for a main Appropriation Bill (see section 13); and
the Supplementary Estimates and the supporting information for a supplementary Appropriation Bill (see section 16).
After section 19, insert:
This section applies to the department, departmental agency, Office of Parliament, or Crown entity (performance reporter) most recently identified in the supporting information for an Appropriation Act as providing end-of-year performance information on an appropriation for a financial year.
As soon as practicable after the end of each financial year, the performance reporter must prepare the information that is required by section 19C.
Not later than 15 working days after the performance reporter receives an audit report on the information under section 45D of this Act or section 156 of the Crown Entities Act 2004 (as applicable),—
the performance reporter must, unless the performance reporter is the appropriation administrator, provide the information and the audit report to the appropriation administrator; and
the appropriation administrator must provide the information and the audit report to the appropriation Minister; and
the appropriation Minister must ensure that the information and the audit report are presented to the House of Representatives in the document most recently specified for that purpose in the supporting information for an Appropriation Act.
If Parliament is not in session, subsection (3)(c) does not apply, but the appropriation Minister must ensure that, as soon as possible after the commencement of the next session of Parliament, the information and the audit report are presented to the House of Representatives in the document most recently specified for that purpose in the supporting information for an Appropriation Act.
The performance reporter must ensure that the information is published as soon as practicable after the information is presented to the House of Representatives, or, if subsection (4) applies, not later than 15 working days after receiving the audit report.
This section applies to the appropriation Minister most recently identified in the supporting information for an Appropriation Act as providing end-of-year performance information on an appropriation for a financial year.
Within 4 months after the end of the financial year, the appropriation Minister must—
prepare the information that is required by section 19C; and
ensure that the information is presented to the House of Representatives in the document most recently specified for that purpose in the supporting information for an Appropriation Act.
If Parliament is not in session, subsection (2)(b) does not apply, but the appropriation Minister must ensure that, as soon as possible after the commencement of the next session of Parliament, the information is presented to the House of Representatives in the document most recently specified for that purpose in the supporting information for an Appropriation Act.
The appropriation Minister must ensure that the information is published as soon as practicable after the information is presented to the House of Representatives, or, if subsection (3) applies, not later than 4 months after the end of the financial year.
The end-of-year performance information for an appropriation must include the following:
an assessment of what has been achieved with the appropriation in the financial year; and
a comparison of the actual expenses or capital expenditure incurred in relation to the appropriation in the financial year with the expenses or capital expenditure that were appropriated or forecast to be incurred.
In the case of a multi-category appropriation, subsection (1)(a) and (b) must be read as if the references in those paragraphs to an appropriation included a reference to each category of expenses or capital expenditure within that appropriation.
The end-of-year performance information for an appropriation must be prepared in accordance with generally accepted accounting practice, to the extent that the information is of a form or nature for which provision is made in financial reporting standards that form part of generally accepted accounting practice.
Repeal section 22(2) to (4).
Repeal section 23.
In section 24(1), after “A department”, insert “other than an intelligence and security department”.
“A department”
“other than an intelligence and security department”
After section 25, insert:
The Minister may approve a capital injection to meet an emergency or disaster described in section 25(1).
A capital injection approved under subsection (1) may be made despite not being authorised under an Appropriation Act and despite section 12A.
A statement about any capital injection made under subsection (2) in any financial year that has not been authorised in an Appropriation Act (other than a capital injection to an intelligence and security department) must be included in—
the annual financial statements of the Government; and
an Appropriation Bill for confirmation by Parliament.
Subsection (3) does not limit the validity of any capital injection made under this section.
In section 26(1)(a), replace “section 7(1)(e)” with “section 7A(1)(e)”.
“section 7(1)(e)”
“section 7A(1)(e)”
After section 26C, insert:
The making of a capital injection without authority under an Appropriation Act or approval under section 25A is unlawful, unless it is validated by Parliament in an Appropriation Act.
The Minister must, on the introduction of any Appropriation Bill that seeks validation by Parliament of any capital injection made without authority under an Appropriation Act or approval under section 25A, present to the House of Representatives a report that sets out—
the amount of each capital injection so made; and
an explanation by the responsible Minister for the department to which the capital injection was made.
In the heading to section 26D, after “appropriation”, insert “and capital injections made in excess of, or without, authorisation”.
“appropriation”
“and capital injections made in excess of, or without, authorisation”
Replace section 26D(1) with:
This section applies to—
any expenses that have, or capital expenditure that has, been incurred—
without appropriation or other authority; or
in excess of an existing appropriation or other authority; and
any capital injection (other than a capital injection to an intelligence and security department) that has been made—
without authority under an Appropriation Act or approval under section 25A; or
in excess of an existing authority under an Appropriation Act or an existing approval under section 25A.
In section 26D(2), replace “or capital expenditure” with “, capital expenditure, or capital injection”.
“or capital expenditure”
“, capital expenditure, or capital injection”
Replace section 26D(2)(b) with:
the annual report of the administering department for the financial year in accordance with section 45A(c) and (e).
Replace section 26E with:
Before an appropriation in a Vote administered by an Office of Parliament may be included in an Appropriation Bill for a financial year, the chief executive of the Office concerned must prepare and submit to the House of Representatives the following information:
an estimate of expenses and capital expenditure to be incurred for—
each proposed appropriation; and
each proposed category of expenses or non-departmental capital expenditure within a multi-category appropriation; and
the revenue of the Office (including the revenue associated with each proposed expenses appropriation and each proposed category of expenses within a multi-category appropriation).
Before an authorisation for a capital injection to be made to an Office of Parliament may be included in an Appropriation Bill for a financial year, the chief executive of the Office concerned must submit to the House of Representatives the amount of the proposed capital injection.
The House of Representatives, after considering the information provided under subsections (1) and (2), may for each Office of Parliament commend to the Governor-General, by way of an address,—
the estimates referred to in subsection (1)(a); and
the capital injection referred to in subsection (2).
The House of Representatives may, in that address, request that the estimates be included as a Vote, and the capital injection be authorised, in an Appropriation Bill for that year.
If the Vote or authorisation is included in an Appropriation Bill for that year, this Part applies, with all necessary modifications, as if references to a department were references to an Office of Parliament.
An alteration to the Vote or authorisation during that year is subject to the provisions of this section.
Replace section 27(2)(c)(ii) and (iii) with:
a statement of unappropriated expenses and capital expenditure and unauthorised capital injections (excluding any capital injection to an intelligence and security department):
a statement of emergency expenses and capital expenditure incurred under section 25 and emergency capital injections (excluding any capital injection to an intelligence and security department) made under section 25A:
Repeal section 32A.
Replace sections 38 to 41 and the cross-heading above section 38 with:
A department must provide to its responsible Minister—
information on the department’s strategic intentions that complies with this section and section 40; and
a statement of responsibility for the information, signed by the department’s chief executive.
The information—
must relate to the forthcoming financial year and at least the following 3 financial years; and
may also relate to the remainder of the current financial year.
The information must identify the period to which it relates.
The department must provide the information—
at least once in every 3-year period, unless the Minister has granted an extension of time under section 41; and
in the case of a new department, as soon as practicable, but not later than 6 months, after the date on which the department is established; and
if there has been a significant change in the nature or scope of the department’s functions, as soon as practicable, but not later than 6 months, after that change.
Despite subsection (4)(a), the department must comply with subsection (1) as soon as practicable if the information most recently provided by the department under this section—
becomes out of date because of a material change in the department’s strategic intentions; or
is otherwise false or misleading in a material particular.
A department’s responsible Minister may, if that Minister considers it necessary or desirable, require the department to provide new information on strategic intentions at any time.
Information on strategic intentions provided under this section must comply with sections 38 and 40.
The responsible Minister may require the information to relate to the remainder of the current financial year in addition to the forthcoming financial year and at least the following 3 financial years.
A department must, as soon as practicable after providing information on its strategic intentions to its responsible Minister, publish the information on an Internet site maintained by or on behalf of the department.
However, the department must not publish the information—
in the period of 3 months before the Minister delivers the Budget for the first full financial year to which the information relates; or
if the Minister gives less than 3 months’ notice of the day on which he or she will deliver that Budget, in the period commencing on the day on which the Minister gives that notice and ending when the Minister delivers the Budget.
In the case of information provided by an intelligence and security department, the responsible Minister must forward a copy of the information, as soon as practicable after receiving it, to the members of the Intelligence and Security Committee established under the Intelligence and Security Committee Act 1996.
In the case of information provided by any other department, the responsible Minister (or the Minister referred to in subsection (6), if applicable) must present the information to the House of Representatives—
in the same document as the department’s annual report for the financial year before the first full financial year to which the information relates; or
in any other document, in which case the information must be presented as soon as practicable after the responsible Minister receives it and not later than the date on which the annual report described in paragraph (a) is presented.
However, the responsible Minister (or the Minister referred to in subsection (6), if applicable) must not present the information to the House of Representatives in the period described in subsection (2).
A Minister other than the responsible Minister may present the information to the House of Representatives if—
the information is presented in a document that includes other information; and
that other Minister is responsible for presenting that other information.
Information presented to the House of Representatives under subsection (4) must be accompanied by a statement signed by the responsible Minister stating,—
in the case of the Office of the Clerk of the House of Representatives or the Parliamentary Service, that the information is consistent with the policies and performance expectations of the responsible Minister; or
in the case of any other department, that the information is consistent with the policies and performance expectations of the Government.
The information required under section 38 must, for the period to which it relates, set out the strategic objectives that the department intends to achieve or contribute to (strategic intentions).
The information must also, for the period to which it relates,—
explain the nature and scope of the department’s functions and intended operations; and
identify any departmental agencies hosted by the department; and
explain how the department intends to manage its functions and operations to meet its strategic intentions; and
set out and explain any other matters that—
are reasonably necessary to achieve an understanding of the department’s strategic intentions and capability; or
may be specified by the Minister or the responsible Minister for the purposes of subparagraph (i).
If a department is likely to have a significant change in the nature or scope of its functions, the Minister may grant the department an extension, of up to 1 year, of the period specified in section 38(4)(a).
However, the Minister must not grant an extension unless the Minister is satisfied that the extension will enable the department to improve the quality of the information on strategic intentions that the department provides to its responsible Minister.
If a department is likely to be disestablished, the Minister may grant the department a waiver of the requirements in section 38.
As soon as practicable after granting an extension or a waiver, the Minister must present to the House of Representatives notice of the extension or waiver and the Minister’s reasons for granting it.
Repeal section 42.
Replace section 45 with:
The annual report of a department must provide the information that is necessary to enable an informed assessment to be made of the department’s performance during the financial year, including how well the department is managing the resources it controls.
The annual report of a department must contain the following information in respect of the financial year to which it relates:
an assessment of the department’s operations (excluding operations on which any departmental agency hosted by the department is required to report under section 43A); and
an assessment of the department’s progress in relation to its strategic intentions; and
information about the department’s management of its organisational health and capability; and
statements of expenses and capital expenditure for the department that comply with section 45A; and
annual financial statements for the department that comply with section 45B; and
a statement of responsibility that complies with section 45C; and
any other matters that relate to or affect the department’s operations that the department is required, has undertaken, or wishes to report on in its annual report.
The annual report of a department must also contain, in respect of the financial year after the financial year to which the annual report relates, forecast financial statements for the department that comply with section 45BA.
The annual report of a department must identify any departmental agencies hosted by the department.
The annual report must be dated and signed on behalf of the department by its chief executive.
In section 45AA(1)(b), as inserted by section 27 of this Act, replace “future operating intentions” with “strategic intentions”.
“future operating intentions”
“strategic intentions”
Replace section 45A with:
A department’s annual report must include—
a statement of the budgeted and actual expenses and capital expenditure incurred against—
each appropriation administered by the department; and
each category of expenses or non-departmental capital expenditure included in a multi-category appropriation administered by the department; and
for each appropriation administered by the department, details of the document in which the end-of-year performance information for the appropriation for the previous financial year (if required) is presented to the House of Representatives; and
a statement of expenses and capital expenditure incurred without appropriation or other authority, or in excess of an existing appropriation or other authority, in relation to the activities of, or appropriations administered by, the department, together with an explanation of the reasons for the unappropriated expenses and capital expenditure; and
a statement of the amount of any capital injection authorised, under an Appropriation Act, to be made to the department compared with the actual amount of any capital injection made to the department; and
a statement of any capital injection made to the department without authority, or in excess of an existing authority, under an Appropriation Act, together with an explanation of the reasons for the unauthorised capital injection.
In section 45B(2)(b), delete “; and”.
“; and”
Repeal section 45B(2)(c) and (d).
After section 45B, insert:
A department’s forecast financial statements must be prepared in accordance with generally accepted accounting practice.
In addition to what is required by generally accepted accounting practice, a department’s forecast financial statements must include—
a statement of all significant assumptions underlying the forecast financial statements; and
any other information or explanations needed to fairly reflect the forecast financial operations and financial position of the department.
Replace section 45C with:
A statement of responsibility relating to the annual report of a department must include—
a statement of the responsibility of the department’s chief executive for the preparation of the financial statements, and statements of expenses and capital expenditure, and for the judgements expressed in them; and
a statement of the responsibility of the department’s chief executive for having in place a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting; and
a statement of the responsibility of the department’s chief executive for ensuring that end-of-year performance information on each appropriation administered by the department is provided in accordance with sections 19A to 19C, whether or not that information is included in the annual report; and
a statement of the responsibility of the department’s chief executive for the accuracy of any end-of-year performance information prepared by the department (see section 19A), whether or not that information is included in the annual report; and
a statement that, in the opinion of the department’s chief executive,—
the financial statements fairly reflect the financial position and operations of the department for the reporting period; and
the forecast financial statements fairly reflect the forecast financial position and operations of the department for the financial year to which the forecast financial statements relate.
A statement of responsibility for the annual report of a departmental agency must include—
a statement that, in the opinion of the chief executive of the departmental agency, the annual report fairly reflects the operations, progress, and organisational health and capability of the departmental agency; and
a statement of the responsibility of the departmental agency’s chief executive for the accuracy of any end-of-year performance information prepared by the departmental agency (see section 19A), whether or not that information is included in the annual report.
A statement of responsibility must be signed by the chief executive of the department or departmental agency (as applicable).
In section 45D(1)(a), replace “statement of service performance” with “statements of expenses and capital expenditure”.
“statement of service performance”
“statements of expenses and capital expenditure”
After section 45D(1), insert:
(1A)
The department or departmental agency most recently identified in the supporting information for an Appropriation Act as providing end-of-year performance information on an appropriation for a financial year must, within 2 months after the end of that financial year, forward that information to the Auditor-General.
In section 45D(2)(a), after “statements referred to in subsection (1)(a)”, insert “and the information referred to in subsections (1)(a) and (1A)”.
“statements referred to in subsection (1)(a)”
“and the information referred to in subsections (1)(a) and (1A)”
In section 45D(2)(b), after “department”, insert “or departmental agency (as the case may be)”.
“or departmental agency (as the case may be)”
In section 45E(1)(a), replace “section 40(e)(ii)” with “section 40(2)(d)(ii)”.
“section 40(e)(ii)”
“section 40(2)(d)(ii)”
In section 45E(1)(b), replace “sections 41 and 45B(1) and (2)(a) and (b)” with “sections 45B and 45BA”.
“sections 41 and 45B(1) and (2)(a) and (b)”
“sections 45B and 45BA”
In section 45E(1)(c)(ii), delete “; and”.
Repeal section 45E(1)(d).
Replace section 45E(2) with:
Section 39 (which requires information provided by a department on its strategic intentions to be presented to the House of Representatives and to be published) does not apply to an intelligence and security department.
However, subsection (2) does not affect the obligations of the responsible Minister of an intelligence and security department under section 39(3).
Section 45A(d) and (e) (which requires statements of expenses and capital expenditure to include statements relating to capital injections) does not apply to an intelligence and security department.
Replace section 45F with:
This Part applies to an Office of Parliament, subject to subsection (2) and with the following (and any other necessary) modifications:
references to a department must be read as references to an Office of Parliament; and
references to the Auditor-General must be read as references to an auditor appointed by the House of Representatives to audit the financial statements, statements of expenses and capital expenditure, and end-of-year performance information of Offices of Parliament; and
section 40(2)(d) must be read as if an Office of Parliament were not required to comply with the requirement for the information on strategic intentions to set out and explain any other matters that may be specified by the Minister or responsible Minister, but were instead required to have regard to those matters in the preparation of that information; and
section 41 must be read as if the references in that section to the Minister were references to the Speaker.
Section 39(7)(b) (which requires the information on strategic intentions to be accompanied by a statement that the information is consistent with the policy and performance expectations of the Government) does not apply to an Office of Parliament.
Repeal section 45G.
Replace section 45I(2)(a), as inserted by section 29 of this Act, with:
the statements and details required by section 45A; and
In section 45L(2)(a), replace “statement of service performance” with “statement of performance”.
“statement of performance”
In section 45M(1)(e), as inserted by section 30 of this Act, replace “sections 138 and 141 to 149” with “sections 138, 139A, 139, 141, and 144 to 149A”.
“sections 138 and 141 to 149”
“sections 138, 139A, 139, 141, and 144 to 149A”
In section 45M(1)(f), as inserted by section 30 of this Act, replace “157” with “157A”.
“157”
“157A”
In section 45M(2), as inserted by section 30 of this Act, replace “statement of service performance” with “statement of performance”.
In section 45N(1), as inserted by section 30 of this Act, after “141,”, insert “149E,”.
“141,”
“149E,”
In section 45OA(1)(n) and (2), as inserted by section 31 of this Act, replace “157” with “157A”.
Repeal section 61.
Replace section 65D(2) with:
In this section and section 65ZH, public security does not include a guarantee or an indemnity on behalf of or in the name of the Crown given under this Act or any other enactment.
Repeal section 65E.
Repeal section 65H(2).
Repeal section 65J.
After section 65ZG, insert:
Any expenses incurred in connection with any of the following matters may be incurred without further appropriation, and must be paid without further authority, than this section:
Expenses in respect of money borrowed by the Crown
negotiating the borrowing of money by the Crown:
undertaking, managing, servicing, converting, or repaying borrowing described in paragraph (a):
Expenses in respect of securities
issuing a public security in respect of the Crown:
executing, redeeming, or varying a public security described in paragraph (c):
Expenses relating to derivative transactions of the Crown
negotiating a derivative transaction of the Crown:
managing, servicing, or making payments under a derivative transaction described in paragraph (e):
Expenses relating to investment
negotiating an investment referred to in section 65I:
placing, managing, servicing, or converting an investment referred to in section 65I.
In this section, expenses—
duties, taxes, premiums, bonuses, fees, interests, and commissions; and
any expenses incurred on personnel and equipment necessary in connection with the matters set out in subsection (1); but
does not include expenses incurred in connection with—
money borrowed by the Crown under a hire purchase agreement, a finance lease agreement, or any agreement that is of the same nature as or a substantially similar nature to either of those agreements; or
a guarantee or an indemnity on behalf of or in the name of the Crown given under this Act or any other enactment.
In Schedule 4, column heading relating to section 153 of the Crown Entities Act 2004, replace “SSP” with “SP”.
“SSP”
“SP”
The enactments listed in Schedule 4 are consequentially amended in the manner indicated in that schedule.
s 53
ss 2A, 88
In this schedule,—
2013/14 financial year means the financial year ending with 30 June 2014
2014/15 financial year means the financial year ending with 30 June 2015
amendment Act means the Public Finance Amendment Act 2013
commencement date means the date on which the amendment Act comes into force
new provision means a provision of this Act as amended or inserted by the amendment Act, and new section has a corresponding meaning
old provision means a provision of this Act as in force immediately before its amendment or repeal by the amendment Act, and old section has a corresponding meaning.
This clause applies to any provision of this Act that—
relates to a financial year; and
is amended on 1 July 2014 by Part 2 of the amendment Act.
The provision must,—
to the extent that it relates to the 2014/15 financial year and subsequent financial years, be treated as if it were amended on the commencement date rather than 1 July 2014; and
to the extent that it relates to previous financial years, be treated as if it were not amended on 1 July 2014.
This clause is subject to clause 3.
Despite clause 2, in the 2013/14 financial year,—
old section 7(1) must be read as if it included, as a type of appropriation, a multi-category appropriation described in new section 7A(1)(g) (as inserted by section 59 of the amendment Act); and
any new provision that relates to a multi-category appropriation must, for the purposes of the multi-category appropriation and any expenses or capital expenditure incurred under it, be treated as if it were amended on the commencement date.
Despite clause 2, old section 45 must be read as if it included a requirement for a department’s annual report for the 2013/14 financial year to include forecast financial statements for the 2014/15 financial year that comply with new section 45BA (as inserted by section 86 of the amendment Act).
A department must provide to its responsible Minister, under new section 38 (as inserted by section 80 of the amendment Act), information on its strategic intentions for the 2014/15 financial year and at least the following 3 financial years.
A department must comply with subclause (1) not later than the day on which it provides, to its responsible Minister, its annual report for the 2013/14 financial year.
Clauses 1 to 3 of Schedule 1AAA of the Crown Entities Act 2004 (the CEA transitional schedule) apply to Schedule 4 organisations and Schedule 4A companies, except that references in clause 1 of the CEA transitional schedule to a Crown entity must be read as if they were references to a Schedule 4 organisation or a Schedule 4A company (as applicable).
If new section 139 of the Crown Entities Act 2004 applies to a Schedule 4 organisation or a Schedule 4A company, then clause 4 of the CEA transitional schedule also applies to the organisation or company, except that references in that clause to a Crown entity must be read as if they were references to a Schedule 4 organisation or a Schedule 4A company (as applicable).
Despite section 45OA(1)(g), section 97 of the Crown Entities Act 2004 (which sets out rules that apply to a parent Crown entity in respect of its subsidiaries) does not apply to Crown Fibre Holdings Limited in respect of a specified subsidiary.
For the purposes of subclause (1), specified subsidiary means a subsidiary that, on the commencement date, is a company with no shareholders other than—
Crown Fibre Holdings Limited; and
the Crown; and
Chorus Limited:
Enable Services Limited:
Northpower Limited:
Waikato Networks Limited:
a wholly owned subsidiary of Chorus Limited, Enable Services Limited, Northpower Limited, or Waikato Networks Limited.
This clause is repealed on the close of 30 June 2021.
Despite new section 45OA(1)(n),—
sections 138 to 144, 145(a) and (b), and 146 of the Crown Entities Act 2004 do not apply to TRCL’s first statement of intent; and
sections 145(c) and 149—
do not apply to TRCL’s first statement of intent; but
apply to an amendment to TRCL’s first statement of intent.
If TRCL’s first statement of intent includes information described in section 141(1)(b), (c), (d), (f), (g), or (h) or section 142(1)(b) (a specified provision) of the Crown Entities Act 2004, section 147 of that Act applies as if the information were included in TRCL’s first statement of intent under the specified provision.
In this clause, TRCL’s first statement of intent means Tāmaki Redevelopment Company Limited’s statement of intent for the 2013/14 financial year.
s 56
ss 3AB, 45OA
Note: A tick alongside the name of a company means that the section of the Crown Entities Act 2004 that appears above the tick applies to that company.
s 57
In section 4, definition of Crown entity, paragraph (b), after “Schedule 4”, insert “, or a company named in Schedule 4A,”.
“Schedule 4”
“, or a company named in Schedule 4A,”
In section 93B(1A)(a), delete “, and comprising the same statements that are required by section 42(2) of the Public Finance Act 1989 as if the Fund were a Crown entity”.
“, and comprising the same statements that are required by section 42(2) of the Public Finance Act 1989 as if the Fund were a Crown entity”
In section 2(1), definition of Crown entity, paragraph (b), after “Schedule 4”, insert “, or a company named in Schedule 4A,”.
In section 49A, definition of government agency, paragraph (b), after “Schedule 4”, insert “or 4A”.
“or 4A”
In section YA 1, definition of Venture Investment Fund, replace “Schedules 4, 5, and 6 of the Public Finance Act 1989” with “Schedule 2 of the Crown Entities Act 2004”.
“Schedules 4, 5, and 6 of the Public Finance Act 1989”
“Schedule 2 of the Crown Entities Act 2004”
In section 5(1), definition of public organisation, after paragraph (ca), insert:
a company named in Schedule 4A of the Public Finance Act 1989:
Repeal section 18.
In section 39(4), replace “65J” with “65ZH(1)(g) and (h)”.
“65J”
“65ZH(1)(g) and (h)”
In Schedule 1, Part 2, insert in its appropriate alphabetical order “Companies named in Schedule 4A of the Public Finance Act 1989”.
“Companies named in Schedule 4A of the Public Finance Act 1989”
In Schedule 1, Part 2, repeal the items relating to Crown Asset Management Limited, Crown Fibre Holdings Limited, Dispute Resolution Services Limited, Health Benefits Limited, Learning State Limited, Research and Education Advanced Network New Zealand Limited, and Southern Response Earthquake Services Limited.
Repeal section 36(5).
In Schedule 1, insert in its appropriate alphabetical order “Companies named in Schedule 4A of the Public Finance Act 1989”.
After regulation 5(1)(d), insert:
s 104
In Schedule 2, clause 74, replace “section 39” with “section 43”.
“section 39”
“section 43”
In section 14(3), replace “section 39” with “section 44”.
“section 44”
In Schedule 1, clause 16(b), replace “section 14 or section 15” with “sections 14 to 15A and 15E”.
“section 14 or section 15”
“sections 14 to 15A and 15E”
In section 170(1), replace “section 39” with “section 43”.
In section 171(1), replace “section 39” with “section 43”.
2 July 2013
Divided from State Sector and Public Finance Reform Bill (Bill 55–2) by committee of the whole House as Bill 55–3B
10 July 2013
Third reading
17 July 2013
Royal assent
This Act is administered by the Treasury.