Public Finance Act 1989

  • not the latest version

Reprint as at 28 September 2018

Coat of Arms of New Zealand

Public Finance Act 1989

Public Act
 
1989 No 44
Date of assent
 
26 July 1989
Commencement
 
see section 1
Note

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

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

This Act is administered by the Treasury.

Contents

Title [Repealed]
1Short Title and commencement
1APurpose
2Interpretation
2AProvisions affecting application of amendments to this Act
3Act to bind Crown
3AAMeaning of generally accepted accounting practice [Repealed]
3APower to amend Schedule 4
3ABPower to amend Schedule 4A
3BPower to amend Schedule 5 to reflect name changes
3CPower to amend Schedule 5 to restore company to State-Owned Enterprises Act 1986
3DPower to amend Schedule 6 to reflect name changes
Part 1
Appropriations
Requirement for appropriations
4Expenses or capital expenditure must not be incurred unless in accordance with appropriation or statutory authority
4AAuthority to incur expenses or capital expenditure under Imprest Supply Act
5Public money must not be spent unless in accordance with statutory authority
6Authority to spend public money
7Expenses and capital expenditure must be allocated to appropriation type
7AAppropriation types
7BRequirements for multi-category appropriations
7CResponsibility for, and administration and use of, appropriations
8Appropriation limited by amount
9Appropriation limited by scope
9ASupplementary Estimates [Repealed]
9BPower of Secretary to obtain information [Repealed]
10Appropriation limited by period
11Expenses or payments authorised other than by Appropriation Act
12Timing of main Appropriation Bill for financial year
Requirements for capital injections
12ACapital injections must be authorised
12BAuthority to make capital injections under Imprest Supply Act
Information requirements for appropriations
13Estimates and supporting information must be presented with main Appropriation Bill
14Content of Estimates
15Main Appropriation Bill: supporting information relating to Votes
15AMain Appropriation Bill: supporting information relating to appropriations
15BComparative information requirements if no directly corresponding appropriation or category
15CEnd-of-year performance information requirements
15DExemptions from end-of-year performance information requirements for certain categories of expenses and capital expenditure
15EMain Appropriation Bill: supporting information relating to capital injections
15FMinister may present further supporting information
16Supplementary Estimates and supporting information must be presented with Supplementary Appropriation Bill
17Content of Supplementary Estimates
17ASupplementary Appropriation Bill: supporting information relating to appropriations
17BSupplementary Appropriation Bill: supporting information relating to capital injections
18Minister must consult on proposal to change format or content of information presented with Appropriation Bills
19Power of Secretary to obtain information
Reporting on appropriations: end-of-year performance information
19AProvision of end-of-year performance information other than by Ministers
19BProvision of end-of-year performance information by Ministers
19CRequirements for end-of-year performance information
Other provisions relating to appropriations
20Departments may incur output expenses for, or on behalf of, other departments [Repealed]
21Expenses restricted by revenue
22Operating surplus of department
23Net assets of departments must be confirmed [Repealed]
24Movements within departmental statement of financial position
25Expenses or capital expenditure may be incurred in emergencies
25ACapital injections may be made in emergencies
26Minister may determine terms and conditions of capital injections
26ATransfer of resources between output expense appropriations
26BMinister may approve expenses or capital expenditure to be incurred in excess of existing appropriation
26CExpenses or capital expenditure incurred without appropriation or other authority requires validation by Parliament
26CACapital injections made without authority or approval require validation by Parliament
26DReporting requirements in relation to expenses or capital expenditure incurred in excess of, or without, appropriation and capital injections made in excess of, or without, authorisation
Application of this Part to Offices of Parliament
26EApplication of this Part to Offices of Parliament
Part 2
Fiscal responsibility
Preliminary
26FInterpretation
26GPrinciples of responsible fiscal management
26HGenerally accepted accounting practice
Fiscal strategy report
26IFiscal strategy report
26JContents of fiscal strategy report: long-term objectives
26KContents of fiscal strategy report: short-term intentions
26KAContents of fiscal strategy report: management of the Crown’s resources
26LContents of fiscal strategy report: other matters
Budget policy statement
26MBudget policy statement
Statement on long-term fiscal position
26NStatement on long-term fiscal position
Investment statement
26NAInvestment statement
Economic and fiscal updates
26OEconomic and fiscal update
26PEconomic forecasts
26QFiscal forecasts
26RAnnual statement of tax policy changes
26SHalf-year economic and fiscal update
26TPre-election economic and fiscal update
Disclosure requirements for economic and fiscal updates
26UDisclosure of policy decisions and other circumstances that may influence future fiscal situation
26VLimits on disclosure requirements
Statement of responsibility
26WRequirements for statement of responsibility
Miscellaneous
26XCertain statements and updates may be published in advance of presentation to House of Representatives
26YPublication and availability of reports, statements, or updates
26ZPower of Secretary to obtain information
Part 3
Reporting by Government reporting entity
27Annual financial statements of Government
28Half-year financial statements of the Crown [Repealed]
29Responsibility for annual financial statements of Government
29APower of Secretary to obtain information
29BAuditor-General to be auditor of Government reporting entity
30Audit report
31Annual financial statements must be presented to House of Representatives and published
31AMonthly financial statements of Government
31BPublication, inspection, and purchase of financial statements of Government reporting entity [Repealed]
32Monthly cash flow statements [Repealed]
32AAdditional reports in relation to non-departmental appropriations [Repealed]
Part 4
Reporting by departments and departmental agencies
33Extended meaning of department for purpose of Part 4
Responsibilities of chief executives
34Responsibilities of chief executives: financial management of departmental matters
34AForecast financial statements of departments [Repealed]
35Responsibilities of chief executives: financial management of non-departmental matters
36Responsibilities of chief executives: reporting
Power of chief executives to obtain information
37Power of chief executives to obtain information
Reporting requirements: information on strategic intentions
38Departments must provide information on strategic intentions
38AResponsible Minister may require department to provide information on strategic intentions at any time
39Obligation to publish and present information on strategic intentions
40Requirements for information on strategic intentions
41Minister may grant extension of time for, or waive, requirement to provide information on strategic intentions
41ASpecial provisions in relation to annual financial statements of school Board of Trustees [Repealed]
41BSpecial provisions in relation to annual financial statements of Boards under Reserves Act 1977 [Repealed]
41CDraft statement of intent [Repealed]
41DContents of statement of intent [Repealed]
41ECompleted statement of intent [Repealed]
41FLaying of statement of intent before House of Representatives [Repealed]
41GPower of responsible Minister to require Crown entity to modify statement of intent [Repealed]
41HPower of Crown entity to modify statement of intent [Repealed]
41IAnnual report of Crown entities named or described in Schedule 6 [Repealed]
42Information on future operating intentions must include statement of responsibility [Repealed]
Reporting requirements—Annual reports
43Departments must prepare annual reports
43ADepartmental agencies must prepare annual reports
44Obligation to present and publish annual reports
44ALaying before House of Representatives of financial statements of Crown entities (other than school Boards of Trustees and Reserves Boards) [Repealed]
44BAnnual report in relation to schools’ sector [Repealed]
44CAnnual financial statements of school Boards of Trustees [Repealed]
44DAnnual financial statements of Reserves Boards [Repealed]
45Contents of annual report of department
45AAContents of departmental agency annual report
45AStatements of expenses and capital expenditure
45BAnnual financial statements
45BAForecast financial statements
45CStatement of responsibility
45DAudit report
Miscellaneous
45EApplication of this Part to intelligence and security departments
45FApplication of this Part to Offices of Parliament
45GThis Part modified for purpose of applying Part to Offices of Parliament [Repealed]
Part 5
Special reporting requirements
Subpart 1—Special annual reporting requirements
45HApplication of subpart
45IFirst annual report for newly established entities
45JFinal annual report for disestablished entities
45KFinal annual report for entities that cease to be subject to requirement to provide annual report
45LMinister may allow certain information to be included in another entity’s annual report if operations transferred
Subpart 2—Application of Crown Entities Act 2004 to Schedule 4 organisations
45MApplication of Crown Entities Act 2004 to Schedule 4 organisations
45NExemptions from certain sections of Crown Entities Act 2004 for Schedule 4 organisations
45OSpecial provisions relating to Reserves Boards
Part 5AAA
Non-listed companies in which the Crown is majority or sole shareholder
45OAApplication of Crown Entities Act 2004 to non-listed companies in which the Crown is majority or sole shareholder
Part 5A
Mixed ownership model companies
Preliminary provisions
45PDefinitions of mixed ownership model company and other terms
45QTreaty of Waitangi (Te Tiriti o Waitangi)
51% Crown control
45RRestriction on reduction of the Crown’s holding below 51% control
10% limit
45S10% limit on holdings by persons other than the Crown
45TEffect of exceeding 10% limit
45UExemption from 10% limit for trustee corporations and nominee companies, etc
45VPower of FMA to remove exemption from 10% limit for trustee corporations, nominee companies, etc
Continuing application of certain provisions
45WCertain provisions of State-Owned Enterprises Act 1986 and other enactments continue to apply
Part 6
Borrowing, securities, derivatives, investment, banking, and guarantees
Subpart 1—Borrowing
Limits on borrowing by the Crown
46The Crown must not borrow except under statute
47Minister may borrow on behalf of the Crown if in public interest
48Power to borrow must not be delegated
49The Crown not liable for debts of Crown entities, etc
Appointment of borrowing agents
50Minister may appoint agents for purpose of borrowing money
51Appointment of borrowing agents does not prevent exercise of power by Minister
52Borrowings must be taken to be lawful
52ACrown not to issue securities except under statute [Repealed]
53Borrowing agents may delegate powers
Terms and conditions of borrowing
54Minister may determine terms and conditions of borrowing
55Charge on public revenues
56Power to borrow by issue of series of similar securities
57Power to vary borrowings of the Crown
58Conversion of money borrowed by the Crown
58AAuthority for the giving by the Crown of guarantees and indemnities [Repealed]
59Minister may appoint underwriters, managers, etc, for borrowings of the Crown
Payments relating to borrowings
60Payment of principal and interest on money borrowed by the Crown
61Expenses in respect of money borrowed by the Crown [Repealed]
Subpart 2—Securities
Limits on the Crown issuing securities
62The Crown must not issue securities except under statute
63Minister may issue securities for money borrowed by the Crown
64Issue or variation of security taken to be lawful
Terms and conditions of securities
65Securities must be in name of Sovereign
65APower to vary public securities
65BIssue of new public security on loss, damage, or destruction of public security
65CExecution of securities
Payments relating to securities
65DPayments under public securities
65EExpenses in respect of securities [Repealed]
Subpart 3—Derivatives
Limits on the Crown entering into derivatives
65FThe Crown must not enter into derivatives
65GMinister may enter into derivatives if in public interest
Payments relating to derivatives
65HPayments relating to derivatives of the Crown
Subpart 4—Investment
Investment of public money
65IInvestment of public money
65JPayment of expenses relating to investment [Repealed]
Limits on lending by the Crown
65KThe Crown must not lend money except under statute
65LMinister may lend money to persons or organisations if in public interest
65MMinister may lend money to foreign government
65NAuthority to lend money includes authority to defer payments [Repealed]
65ORepayment of money lent by the Crown
65PAppropriation required for lending
65QSecurities relating to lending must be in name of Sovereign
Subpart 5—Banking
Crown Bank Accounts
65RCrown Bank Accounts
Departmental Bank Accounts
65SDepartmental Bank Accounts
65TDirections relating to operation of Departmental Bank Accounts
General
65UPayment into Bank Accounts
65VRequirements for payment of money out of Bank Accounts
65WPowers of Minister or Treasury in relation to Crown Bank Account and Departmental Bank Account
65XStatement of accounts must be sent to Treasury or Auditor-General
65YTreasury must report on all expenses and capital expenditure incurred with or without appropriation or other statutory authority
65ZAuditor-General may direct Ministers to report to House of Representatives in cases involving unlawful expenses, etc
65ZAAuditor-General may stop payments out of Bank Accounts
65ZBApplication of this subpart to Offices of Parliament
Subpart 6—Guarantees and indemnities
Limits on giving by the Crown of guarantees and indemnities
65ZCGuarantee or indemnity by the Crown must not be given except under statute
65ZDMinister may give guarantee or indemnity if in public interest
65ZEDepartments may give guarantee or indemnity specified in regulations if in public interest
Other provisions relating to guarantees and indemnities
65ZFRecovery of money paid under guarantee
65ZGPayments in respect of guarantees or indemnities
Subpart 7—Permanent legislative authority for payment of certain expenses
65ZHPermanent legislative authority for payment of certain expenses
Part 7
Trust money
66Trust money
67Establishment of bank accounts for trust money
68Investment of trust money
69Payment of interest on trust money
70Unclaimed trust money
Part 7A
Security and intelligence departments
[Repealed]
70AInterpretation [Repealed]
Appropriations
70BNature of appropriation required [Repealed]
70CEstimates [Repealed]
Banking and investment
70DDepartmental Bank Accounts [Repealed]
70EPayment into Bank Accounts [Repealed]
70FPower of Minister or Treasury in relation to Crown Bank Account and Departmental Bank Account [Repealed]
Reporting
70GAnnual financial statements [Repealed]
70HHalf-yearly financial statements [Repealed]
70ITabling of financial statements [Repealed]
70JInformation to be provided to Treasury [Repealed]
70KTreasury instructions [Repealed]
Part 8
General provisions
71AADelegation of Secretary’s powers
71Payments on behalf of governments and international organisations
72Payments on behalf of local authorities
73Payment of fines to local authorities and other organisations that conduct prosecutions
74Unclaimed money
75Minister may exercise powers relating to bona vacantia
76Offences
77Penalties for offences
78Time for commencing proceedings
79Information to be provided to Treasury
80Treasury instructions
80AMinister of Finance instructions
81Regulations, Orders in Council, and notices
82Consultation and approval requirements for regulations or instructions relating to reporting standards
83Abolition of certain accounts [Repealed]
84Registration of public securities, local authority stock, and other stock
85Government stock in United Kingdom [Repealed]
86Consequential amendments [Repealed]
87Repeals [Repealed]
88Application, savings, and transitional provisions relating to amendments to Act
Schedule 1
Application, savings, and transitional provisions relating to amendments made to Act after 1 January 2013
Schedule 2
Enactments repealed
[Repealed]
Schedule 3
Liabilities, and categories of liabilities, not included in definition of contingent liability
[Repealed]
Schedule 4
Organisations for the purposes of subpart 2 of Part 5
Schedule 4A
Non-listed companies in which Crown is majority or sole shareholder
Schedule 5
Mixed ownership model companies
Schedule 6
Legal entities created by Treaty of Waitangi settlement Acts
Schedule 7
Crown entities subject to section 16
[Repealed]
Public Finance Amendment Act 2004
Reprint notes
Title [Repealed]

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