Part 2 Public finance administration
(1) The Treasurer shall cause to be kept accounts relating to the Consolidated Fund, the Special Deposits Account and such other money as the Treasurer may determine under such separate heads as the Treasurer may direct.(2) In spite of any other Act or law, the Treasurer is not required to cause any account in, or relating to, the Consolidated Fund or the Special Deposits Account to be kept in the Treasury.(3) An account referred to in any Act or law relating to the Consolidated Fund or the Special Deposits Account, and in or at the Treasury immediately before the date of the commencement of this subsection, is from that date to be caused to be kept by the Treasurer in accordance with subsection (1), either in the Treasury or outside the Treasury.
6 Preparation of consolidated financial statements and general government sector financial statements
(1) As soon as practicable after the end of each financial year, the Treasurer is to prepare:(a) consolidated financial statements for the State as at 30 June in that financial year, being a whole of government financial report for the State prepared in accordance with Australian Accounting Standards, and(b) financial statements for the general government sector as at 30 June in that financial year, being a financial report for the general government sector prepared in accordance with Australian Accounting Standards.(2) The consolidated financial statements and general government sector financial statements may be presented in a single report, in such form or manner as the Treasurer may determine.(3) The Treasurer may combine, include or amalgamate with, or present together with, in such form or manner as the Treasurer may determine, or attach to, the statements required to be prepared under this section such other reports as the Treasurer may determine.(4) On or before 15 September, the Treasurer is to transmit the statements prepared under this section in relation to the preceding financial year to the Auditor-General.
8 Monthly statements and half-yearly reviews
(1) The Treasurer is to publicly release a statement for each month (a monthly statement), by the end of the following month, setting out the budget time projections and year-to-date balances for the major general government sector aggregates disclosed in the Budget.(2) The Treasurer may delay the release of a monthly statement if, at or near the time at which the statement would otherwise be released, other key reporting documents are (or are to be) released, such as the Budget, the half-yearly review (referred to in subsection (3)), the consolidated financial statements and the general government sector financial statements.(3) The Treasurer is to publicly release a statement (the half-yearly review) by 31 December in each year containing:(a) revised projections for the current financial year and an explanation of any significant variation in those revised projections from the original budget time projections, and(b) revised forward estimates, for major aggregates, over 3 years, and(c) the latest economic projections for the current financial year and an explanation of any significant variation from the budget time projections contained in the Budget Papers.(4) The half-yearly review is to be based on actual results as at the end of the previous October.(5) The Treasurer may determine to change the presentation in a monthly statement or the half-yearly review from that adopted in the preceding Budget.(6) The Treasurer is to present a copy of a determination made under subsection (5) to the Legislative Assembly on a day within 14 days after making the determination, if the Legislative Assembly is sitting on that day.(7) If at the time when the Treasurer seeks to present a copy of a determination to the Legislative Assembly the Legislative Assembly is not sitting, the Treasurer is to present a copy of the determination to the Clerk of the Legislative Assembly to be dealt with in accordance with section 63C.(8) The Treasurer may include such other matters in a monthly statement or the half-yearly review as the Treasurer determines.
Division 2 Accounting arrangements
(1) The Treasurer may, from time to time, issue directions to accounting officers and officers of an authority with respect to the principles, practices and procedures to be observed in the administration of the financial affairs of the State and may, at any time, amend, vary or cancel a direction so issued.(2) Without limiting the generality of subsection (1), the Treasurer may issue directions relating to:(a) the accounting for receipts and payments of money,(b) money recoverable by the State,(c) the recording, issue and control of public property and other property,(d) the sale and disposition of public property and other property,(e) banking arrangements,(f) the writing off of debts,(g) the preparation of the consolidated financial statements, general government sector financial statements and other financial reports,(h) the preparation of estimates,(i) the commitment of expenditure,(j) the control and management of budget allocations,(k) budgeting and accounting,(k1) the establishment and operation of working accounts within the Special Deposits Account,(l) the insurance and protection of public property and other property,(m) controls for computer-based accounting systems,(n) the form and content of financial reports and the accounting policies to be observed in preparing those reports,(o) the payment, into an account in the Special Deposits Account for an authority, of a percentage (not being less than 50 per cent) of the proceeds of a sale or lease of a surplus asset vested in, used by or under the control of the authority,(p) the purposes for which an authority may expend proceeds referred to in paragraph (o), being purposes in connection with the acquisition or maintenance of capital assets, and(q) the transfer of funds, for the settlement of a claim by one authority against another authority, between accounts maintained by the Treasury for the purposes of those authorities, notwithstanding any Act relating to the appropriation of those funds.(3) A provision of a direction issued under this section may:(a) apply generally or be limited in its application by reference to specified exceptions or factors,(b) apply differently according to different factors of a specified kind, or(c) authorise any matter or thing to be from time to time determined, applied or regulated by any specified person, group of persons or body,or may do any combination of those things.(4) A direction issued under this section shall not apply to or in respect of:(a) (Repealed)(b) a university, or(c) a person, group of persons or body prescribed for the purposes of this section.
10 Treasurer’s expenditure control authority
(1) The Treasurer may, from time to time, issue a Treasurer’s expenditure control authority regulating the expenditure of money from the Consolidated Fund.(2) A Treasurer’s expenditure control authority may:(a) be a standing authority regulating the expenditure of money in general terms,(b) be limited as to the period during which it may operate to regulate the expenditure of money,(c) be limited as to the nature of the transactions in respect of which money may be expended,(d) be limited to a particular transaction or series of transactions, or(e) be contained in the Treasurer’s directions or in a separate instrument.(3) A reference in this section to the regulation of the expenditure of money includes a reference to the commitment of money for expenditure.
(1) The Head of an authority shall ensure that there is an effective system of internal control over the financial and related operations of the authority, including:(a) management policies and requirements made by the provisions of this Act and the prescribed requirements,(b) sound practices for the efficient, effective and economical management of functions by each organisational branch or section within the authority,(c) a system of authorisation and recording and procedures adequate to provide accounting control in relation to assets, liabilities, receipts and expenses,(d) proper segregation of functional responsibilities, and(e) procedures to review the adequacies of and compliance with the system of internal control.(2) Wherever practicable, the Head of an authority shall establish and maintain an effective internal audit organisation which shall be responsible to the Head of an authority for:(a) the regular appraisal of the adequacy of and compliance with the system of internal control,(b) the review of operations or programs to ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned, and(c) the reporting directly at regular intervals to the Head of the authority as to the result of any appraisal, inspection, investigation, examination or review made by the internal audit organisation.(3) The Head of an authority shall supervise the preparation and maintenance of an accounting manual for use within the authority.(4) To the extent of any inconsistency between the provisions of the regulations or the Treasurer’s directions and the provisions of an accounting manual, the provisions of the regulations or the Treasurer’s directions, as the case may require, shall, to the extent of the inconsistency, prevail.
12 Commitment etc of expenditure
(1) Expenditure shall be committed or incurred by an officer of an authority only within the limits of a delegation in writing conferred on the officer by a person entitled to make the delegation.(2) An officer of an authority who commits or incurs expenditure shall be responsible for the exercise of due economy.(3) An officer of an authority must not, without the authorisation of the Treasurer, incur any liability that would result in a payment out of the Consolidated Fund in excess of the amount to be provided out of the Consolidated Fund in accordance with an Appropriation Act or this Act.(4) Nothing in this or any other section of this Act prevents an officer of an authority from being authorised to commit or incur expenditure that is legally available for the use of any authority.
12A Minister may delegate or authorise other Ministers to delegate expenditure of money appropriated etc to Minister
(1) A Minister to whom a sum of money is appropriated out of the Consolidated Fund for a use or purpose (whether by an annual Appropriation Act or other Act) may:(a) delegate to another Minister or to an officer of any authority, or(b) authorise another Minister to delegate to an officer of any authority,the committing or incurring of expenditure from the sum so appropriated.(2) A Minister who is authorised to make payments for a use or purpose from any account in the Special Deposits Account may:(a) delegate to another Minister or to an officer of any authority, or(b) authorise another Minister to delegate to an officer of any authority,the committing or incurring of expenditure from the money in that account.(3) This section has effect for the purposes of section 12 and any other law of the State.
An officer of an authority shall not authorise the payment of an account:(a) unless the account has been approved for payment by a person who is duly authorised to approve the payment, or(b) otherwise than in accordance with the Treasurer’s directions.
(1) The Treasurer may establish a working account for an authority within the Special Deposits Account.(2) Despite the provisions of any other Act, the Treasurer may authorise an authority to retain in a working account money received by it from the following:(a) the provision of goods or services (or both),(b) donations and contributions,(c) any other sources authorised by the Treasurer,instead of paying it into the Consolidated Fund.
(1) This section does not apply to or in respect of an authority:(a) to which the Unclaimed Money Act 1995 applies, or(b) in respect of which, by or under any Act by which the authority is appointed, constituted or regulated, provision is made for the regulation, payment or appropriation of unclaimed money.(2) Except in so far as the regulations may otherwise provide, money which, by virtue of the office or employment of an officer of an authority, has come into the possession or under the control of the officer for or on account of or for the use or benefit of a person other than the authority and:(a) which has been unclaimed for a period of 3 months, or(b) in respect of which a claim has been made but is not, on the expiration of a period of 2 years after the money came into the possession of or under the control of the officer being proceeded with,shall be paid into the Consolidated Fund.(3) (Repealed)(4) Where the Treasurer is satisfied that a person is entitled to money which has been paid into the Consolidated Fund pursuant to subsection (2), the money is, by virtue of this subsection, appropriated from the Consolidated Fund for the purpose of enabling its payment to the person and the Treasurer may withdraw the money from the Consolidated Fund and pay the money to the person accordingly.
Division 3 Public banking and investment arrangements
15 Agreement with bank, building society or credit union
(1) The Treasurer may agree with any bank, building society or credit union upon such terms and conditions as the Treasurer may think fit for:(a) the receipt, custody, payment and transmission of public money,(b) the inscription, management and payment of interest on the public debt within or without New South Wales,(c) the making of advances, the charges relating to advances and the interest payable by or to the bank, building society or credit union upon balances or advances, and(d) the conduct of the banking business of the State generally.(2) An agreement referred to in subsection (1) shall not be made to have effect within New South Wales for more than 1 year unless it contains a provision that it may be terminated at any time on the giving of 6 months’ notice.
16 Accounts to be kept in banks, building societies or credit unions
(1) Authorities may open such accounts in such banks, building societies and credit unions and on such terms as the Treasurer determines for the banking of public money.(2) Money of authorities that is in such accounts with a bank, building society or credit union is, if the accounts are accounts of the kind referred to in section 5 (1), subject to any arrangement between the bank, building society or credit union and the Treasurer under which the bank, building society or credit union is authorised to set off, in accordance with the agreement, the credit and debit balances in the accounts. This subsection applies despite any Act or law.
17 Official account not to be opened without authority
(1) An accounting officer shall not, without the authorisation in writing of the Treasurer, open an account with a bank, building society or credit union for the payment or receipt of public money.(2) A bank, building society or credit union shall not, without the authorisation in writing of the Treasurer, permit an accounting officer to open an account referred to in subsection (1), or to have an overdraft on such an account.(3) The Treasurer may permit a statutory body (being a person, group of persons or body specified in Schedule 2) to operate and keep funds in an account referred to in subsection (1).(4) If permission is given under subsection (3), the Treasurer may:(a) close any account within the Special Deposits Account established in relation to the statutory body, and(b) transfer any balance in that account to the account referred to in subsection (3).(5) Subsections (3) and (4) have effect notwithstanding the provisions of any other Act.
An accounting officer collecting or receiving public money is to bank the money collected or received in accordance with this Act, the regulations and any directions of the Treasurer.
The several accounts of the Treasurer in any one bank, building society or credit union shall, for interest purposes, be considered as one account.
Without limiting any authority granted by or under any other Act to invest public money, any such money may be invested:(a) on deposit with a bank and on deposit with, or by way of withdrawable shares in, a building society or credit union,(b) in the purchase of a bill of exchange that is drawn, accepted or endorsed by a bank, building society or credit union,(c) in a loan to a person who is a dealer in the short term money market and in relation to whom, at the time the loan is made, the Reserve Bank of Australia stands as lender of last resort,(d) in the purchase of securities, the repayment of which is guaranteed by the Government of New South Wales or of the Commonwealth, or(e) in any prescribed investment.
Division 4 Appropriation provisions
21 Money not to be paid out unless authorised
Money shall not be drawn from:(a) the Consolidated Fund, except under the authority of an Act of Parliament, or(b) an account within the Special Deposits Account, except for the purposes of the account and under such authority as may be applicable to the constitution of the account.
(1) A provision of any Act which appropriates money from the Consolidated Fund for a specified purpose operates only to the extent necessary to meet any shortfall in the cost of meeting that purpose after the application of money for that purpose from a working account established under section 13A.(2) A provision of any Act (other than an Appropriation Act) which appropriates money from the Consolidated Fund for a specified purpose shown in the Estimates of the Consolidated Fund operates only to the extent necessary to meet any shortfall in the cost of meeting that purpose after the appropriation of money for that purpose under an Appropriation Act.(3) In this section:Appropriation Act means an Act with the object of appropriating sums of money for the ordinary annual services of the Government or capital works and services of the Government, or both.
22 Expenditure for certain services or works
(1) Notwithstanding section 21, where, after an Act is passed in respect of a financial year appropriating money out of the Consolidated Fund to meet the requirements of that financial year, the exigencies of Government so require, the Treasurer may, with the approval of the Governor, determine that there shall be paid from the Consolidated Fund, in anticipation of appropriation by Parliament, such additional sums as may be necessary in the public interest to provide for expenditure of a recurrent nature or for capital works and services.(2) Details of the sums paid from the Consolidated Fund pursuant to a determination under subsection (1) shall be included in any Bill introduced with the object of appropriating sums of money for the ordinary annual services of the Government or capital works and services of the Government during the financial year next succeeding the financial year in respect of which the sums were paid from the Consolidated Fund pursuant to the determination.
22A The Revenue Equalisation Account
(1) The Treasurer may establish a Revenue Equalisation Account within the Special Deposits Account.(2) The Treasurer may, with the approval of the Governor, transfer from the Consolidated Fund to the Revenue Equalisation Account such sums as the Treasurer may determine.(3) The sums that may be transferred from the Consolidated Fund to the Revenue Equalisation Account pursuant to this section are in addition to any sums that may be so transferred pursuant to any Act appropriating money from the Consolidated Fund.(4) Details of the sums transferred from the Consolidated Fund to the Revenue Equalisation Account pursuant to this section shall be included in any Bill introduced with the object of appropriating sums of money for the ordinary annual services of the Government or capital works and services of the Government during the financial year next succeeding that in which the transfer occurs.(5) Money shall not be drawn from the Revenue Equalisation Account otherwise than by way of transfer from that Account to the Consolidated Fund.
23 Lapsing of appropriation of revenue
(1) Except as provided by subsection (2), every appropriation out of the Consolidated Fund for any financial year shall lapse and cease to have any effect for any purpose at the close of that year.(2) Where, in relation to any appropriation for salaries or wages or payments in the nature of salaries or wages, an amount, not exceeding:(a) the total of the sums required to meet so much of those salaries, wages or payments as is chargeable in respect of that part of the pay period current at 30 June in any year which terminates on that day, and(b) the total of the sums required to meet so much of those salaries, wages or payments as is, pursuant to a lawful determination made on or before 30 June in any such year, required to meet salaries, wages or payments for that pay period or any pay period occurring before that pay period, or both,is transferred to the credit of a suspense account within the Special Deposits Account, and the amount so transferred is thereafter applied in or towards meeting those salaries, wages or payments for that pay period or those pay periods, as the case may require, the amount so transferred shall, for the purposes of this section, be deemed to have been applied during the financial year in relation to which the appropriation was made.
23A Transfers in relation to commitments
(1) If:(a) goods or services chargeable to an appropriation out of the Consolidated Fund for any financial year have not been paid by 30 June in that year, and(b) the Treasurer or a person specified for the time being in a Treasurer’s direction is of the opinion that the goods or services might reasonably have been expected to be paid for by that date,the Treasurer or person may approve the transfer of the amount involved to the credit of a suspense account within the Special Deposits Account, and the amount so transferred shall thereafter, except as provided by subsection (3), be applied in or towards meeting the cost of the goods or services.(2) Any amount transferred under subsection (1) shall, notwithstanding section 23 (1), be deemed to have been applied during the preceding financial year.(3) Any amounts or portions of amounts transferred under subsection (1) which have not been applied for the purpose required by 30 September first occurring after that financial year shall be repaid to the Consolidated Fund.(4) The Treasurer shall, as soon as practicable, after 30 June in each year, prepare, for inclusion in the consolidated financial statements, a statement accounting for transfers made under subsection (1) during the preceding financial year.
24 Transfer of functions between Departments etc
(1) Notwithstanding the provisions of any Appropriation Act, where, after the passing of an Appropriation Act for any financial year the responsibility for a service or function for which an appropriation is made in the Appropriation Act for that year is transferred, the appropriation shall not lapse and may be issued and applied, in accordance with such determination as may be made by the Treasurer, for or towards the service or function the responsibility for which is transferred.(2) The Treasurer shall lay or cause to be laid before the Legislative Assembly, within 6 sitting days after the determination is made under subsection (1), details of the appropriation the subject of the determination.(3) If the Legislative Assembly passes a resolution, of which notice has been given within 6 sitting days of the Legislative Assembly after the details of an appropriation the subject of a determination under subsection (1) have been laid before it, disallowing the appropriation or any part thereof, the appropriation or part thereof ceases to have effect.(4) For the purposes of this section, sitting days shall be counted whether or not they occur in the same session.(5) Where the Treasurer has made a determination under subsection (1) in relation to an appropriation, the Treasurer shall prepare the consolidated financial statements for the financial year in relation to which the determination is made as if the whole of the appropriation in respect of which the determination is made had been applied in accordance with the determination as from the beginning of that financial year.
25 Payments authorised on lapse of appropriation
If, before the close of any financial year, no Act is passed appropriating money out of the Consolidated Fund to meet the requirements of the next succeeding financial year, the Treasurer may pay such sums as may be necessary to meet those requirements, subject to the following provisions:(a) the authority of the Treasurer under this section shall cease upon the passing of the Appropriation Act for the next succeeding financial year, and shall not extend beyond the period of the first 3 months of that succeeding financial year,(b) upon the passing of the Appropriation Act, all payments made under the authority of this section shall be regarded and treated for all purposes as payments made out of the money appropriated by that Act,(c) the payments made under the authority of this section shall not exceed, in total, such amount as would be equivalent to one quarter of the amount appropriated under the Appropriation Act for the immediately preceding financial year, adjusted by two-thirds of the percentage change in:(i) except as provided by subparagraph (ii)—the Consumer Price Index (All Groups Index) for Sydney issued by the Australian Statistician, or(ii) where some other group of numbers or of amounts relating to the price of goods and services, which is issued by the Australian Statistician, is prescribed for the purposes of this subparagraph—the group of numbers or of amounts so prescribed,for the quarter of that year commencing on and including 1 January and ending on and including the next succeeding 31 March from the corresponding quarter of the previous year,(d) when the estimates of expenditure for that succeeding financial year have been presented to Parliament, and the rate of expenditure in those estimates is, in any case, lower than the rate of expenditure authorised in the Appropriation Act for the last preceding financial year, the payments made under the authority of this section shall not exceed those lower rates.
26 Power to vary the annual appropriation
(1) If the Commonwealth, in any financial year:(a) provides for the making of a specific purpose payment not included in the receipts and payments estimates of the State for the financial year,(b) provides for an increase in the amount of a specific purpose payment in excess of the amount shown in the receipts and payments estimates of the State for the financial year, or(c) does not provide the whole of the amount of a specific purpose payment as shown in the receipts and payments estimates of the State for the financial year,the Treasurer may amend the appropriate receipts and payments estimates of the State for that year as if the Treasurer had received advice from the Commonwealth, at the time those estimates were presented to Parliament, that:(d) the specific purpose payment or the increase in the amount of the specific purpose payment would have been provided to the State by the Commonwealth in that year, or(e) the whole of the amount of the specific purpose payment would not have been provided to the State by the Commonwealth in that year,as the case requires.(2) Where, under subsection (1), the Treasurer amends the appropriate receipts and payments estimates of the State for a financial year to provide for the making of a specific purpose payment or an increase or decrease in the amount of a specific purpose payment, appropriations for that year for the purpose of the specific purpose payment may, as the case may require, be made, increased or decreased accordingly.(3) The Treasurer shall lay or cause to be laid before the Legislative Assembly, within 6 sitting days of the day on which the estimates are amended under subsection (1), a copy of the estimates as so amended.(4) For the purposes of this section, sitting days shall be counted, whether or not they occur in the same session.
27 Loan money to be carried to Consolidated Fund
(1) All money borrowed under the authority of any loan Act, except money borrowed by way of overdraft under the authority of clause 5 of Part I of the Financial Agreement solely for temporary purposes, shall be carried to the Consolidated Fund.(2) Money borrowed by way of overdraft under the authority of clause 5 of Part I of the Financial Agreement solely for temporary purposes shall not be expended except in accordance with the provisions of this or any other Act.(3) In this section, Financial Agreement means the Financial Agreement set forth in the Schedule to the Financial Agreement Ratification Act 1928 as varied from time to time.
27A Preparation and presentation of Budget Papers
(1) The Budget Papers are to be presented on a basis that covers the general government sector.(2) The primary financial statements in the Budget Papers are to be prepared in accordance with Australian Accounting Standards and presented in a format that accords with Australian Accounting Standards.(3) The Treasurer may determine that the standards referred to in subsection (2) should be departed from if the Treasurer is of the opinion that the departure is necessary in a particular case to present an accurate view of the financial position detailed in the Budget Papers.(4) The Treasurer is to prepare a report on any such departure containing details of, and reasons for, the departure and the report is to be tabled in each House of Parliament with the Budget Papers.(5) It is not necessary for the Budget Papers to be presented so as to include notes within the meaning of Australian Accounting Standards.(6) In this section:primary financial statements in the Budget Papers means the financial statements referred to in section 27AA (2) (e).
(1) The budget aggregates relating to the general government sector are to be for a 6-year period comprising the Budget year, the 2 prior years and the 3 forward years.(2) The Budget Papers are to include the following:(a) a Budget policy statement that includes the following:(i) the matters required to be included in the Budget Papers by section 8 of the Fiscal Responsibility Act 2012,(ii) 4-year projections (being for the Budget year and 3 forward years) of all major economic and financial variables,(b) revised estimates for the year prior to the budget year, and an explanation of any significant variations in major aggregates from the Budget estimates for that year, for the general government sector,(c) information about the results and services and total expenses of each service group,(d) financial statements prepared in accordance with the Uniform Presentation Framework,(e) the following financial statements:(i) a statement of financial position for the general government sector,(ii) an operating statement for the general government sector,(iii) a cash flow statement for the general government sector.(f) (Repealed)(3) The Budget Papers may include any other matters.(4) In this section, Uniform Presentation Framework means the framework for financial reporting:(a) that is based on reporting conventions for the time being of the Australian Bureau of Statistics for its GFS reporting, and(b) that is agreed by the Australian Loan Council from time to time.
27AB Time at which Budget is to be presented to Parliament
(1) The Budget Papers for a budget year are to be tabled in the Legislative Assembly before the end of the prior financial year, except as provided by this section.(2) If:(a) the Legislative Assembly is not sitting in the last 2 months of the financial year prior to the budget year, or(b) there is a State election in the financial year prior to the budget year,the Budget Papers may be tabled in the Legislative Assembly as soon as possible within the budget year.