Public Finance Act 1989

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Reprint as at 28 September 2018

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.

	Title [Repealed]
1	Short Title and commencement
1A	Purpose
2	Interpretation
2A	Provisions affecting application of amendments to this Act
3	Act to bind Crown
3AA	Meaning of generally accepted accounting practice [Repealed]
3A	Power to amend Schedule 4
3AB	Power to amend Schedule 4A
3B	Power to amend Schedule 5 to reflect name changes
3C	Power to amend Schedule 5 to restore company to State-Owned Enterprises Act 1986
3D	Power to amend Schedule 6 to reflect name changes
	Part 1 Appropriations
	Requirement for appropriations
4	Expenses or capital expenditure must not be incurred unless in accordance with appropriation or statutory authority
4A	Authority to incur expenses or capital expenditure under Imprest Supply Act
5	Public money must not be spent unless in accordance with statutory authority
6	Authority to spend public money
7	Expenses and capital expenditure must be allocated to appropriation type
7A	Appropriation types
7B	Requirements for multi-category appropriations
7C	Responsibility for, and administration and use of, appropriations
8	Appropriation limited by amount
9	Appropriation limited by scope
9A	Supplementary Estimates [Repealed]
9B	Power of Secretary to obtain information [Repealed]
10	Appropriation limited by period
11	Expenses or payments authorised other than by Appropriation Act
12	Timing of main Appropriation Bill for financial year
	Requirements for capital injections
12A	Capital injections must be authorised
12B	Authority to make capital injections under Imprest Supply Act
	Information requirements for appropriations
13	Estimates and supporting information must be presented with main Appropriation Bill
14	Content of Estimates
15	Main Appropriation Bill: supporting information relating to Votes
15A	Main Appropriation Bill: supporting information relating to appropriations
15B	Comparative information requirements if no directly corresponding appropriation or category
15C	End-of-year performance information requirements
15D	Exemptions from end-of-year performance information requirements for certain categories of expenses and capital expenditure
15E	Main Appropriation Bill: supporting information relating to capital injections
15F	Minister may present further supporting information
16	Supplementary Estimates and supporting information must be presented with Supplementary Appropriation Bill
17	Content of Supplementary Estimates
17A	Supplementary Appropriation Bill: supporting information relating to appropriations
17B	Supplementary Appropriation Bill: supporting information relating to capital injections
18	Minister must consult on proposal to change format or content of information presented with Appropriation Bills
19	Power of Secretary to obtain information
	Reporting on appropriations: end-of-year performance information
19A	Provision of end-of-year performance information other than by Ministers
19B	Provision of end-of-year performance information by Ministers
19C	Requirements for end-of-year performance information
	Other provisions relating to appropriations
20	Departments may incur output expenses for, or on behalf of, other departments [Repealed]
21	Expenses restricted by revenue
22	Operating surplus of department
23	Net assets of departments must be confirmed [Repealed]
24	Movements within departmental statement of financial position
25	Expenses or capital expenditure may be incurred in emergencies
25A	Capital injections may be made in emergencies
26	Minister may determine terms and conditions of capital injections
26A	Transfer of resources between output expense appropriations
26B	Minister may approve expenses or capital expenditure to be incurred in excess of existing appropriation
26C	Expenses or capital expenditure incurred without appropriation or other authority requires validation by Parliament
26CA	Capital injections made without authority or approval require validation by Parliament
26D	Reporting requirements in relation to expenses or capital expenditure incurred in excess of, or without, appropriation and capital injections made in excess of, or without, authorisation
	Application of this Part to Offices of Parliament
26E	Application of this Part to Offices of Parliament
	Part 2 Fiscal responsibility
	Preliminary
26F	Interpretation
26G	Principles of responsible fiscal management
26H	Generally accepted accounting practice
	Fiscal strategy report
26I	Fiscal strategy report
26J	Contents of fiscal strategy report: long-term objectives
26K	Contents of fiscal strategy report: short-term intentions
26KA	Contents of fiscal strategy report: management of the Crown’s resources
26L	Contents of fiscal strategy report: other matters
	Budget policy statement
26M	Budget policy statement
	Statement on long-term fiscal position
26N	Statement on long-term fiscal position
	Investment statement
26NA	Investment statement
	Economic and fiscal updates
26O	Economic and fiscal update
26P	Economic forecasts
26Q	Fiscal forecasts
26R	Annual statement of tax policy changes
26S	Half-year economic and fiscal update
26T	Pre-election economic and fiscal update
	Disclosure requirements for economic and fiscal updates
26U	Disclosure of policy decisions and other circumstances that may influence future fiscal situation
26V	Limits on disclosure requirements
	Statement of responsibility
26W	Requirements for statement of responsibility
	Miscellaneous
26X	Certain statements and updates may be published in advance of presentation to House of Representatives
26Y	Publication and availability of reports, statements, or updates
26Z	Power of Secretary to obtain information
	Part 3 Reporting by Government reporting entity
27	Annual financial statements of Government
28	Half-year financial statements of the Crown [Repealed]
29	Responsibility for annual financial statements of Government
29A	Power of Secretary to obtain information
29B	Auditor-General to be auditor of Government reporting entity
30	Audit report
31	Annual financial statements must be presented to House of Representatives and published
31A	Monthly financial statements of Government
31B	Publication, inspection, and purchase of financial statements of Government reporting entity [Repealed]
32	Monthly cash flow statements [Repealed]
32A	Additional reports in relation to non-departmental appropriations [Repealed]
	Part 4 Reporting by departments and departmental agencies
33	Extended meaning of department for purpose of Part 4
	Responsibilities of chief executives
34	Responsibilities of chief executives: financial management of departmental matters
34A	Forecast financial statements of departments [Repealed]
35	Responsibilities of chief executives: financial management of non-departmental matters
36	Responsibilities of chief executives: reporting
	Power of chief executives to obtain information
37	Power of chief executives to obtain information
	Reporting requirements: information on strategic intentions
38	Departments must provide information on strategic intentions
38A	Responsible Minister may require department to provide information on strategic intentions at any time
39	Obligation to publish and present information on strategic intentions
40	Requirements for information on strategic intentions
41	Minister may grant extension of time for, or waive, requirement to provide information on strategic intentions
41A	Special provisions in relation to annual financial statements of school Board of Trustees [Repealed]
41B	Special provisions in relation to annual financial statements of Boards under Reserves Act 1977 [Repealed]
41C	Draft statement of intent [Repealed]
41D	Contents of statement of intent [Repealed]
41E	Completed statement of intent [Repealed]
41F	Laying of statement of intent before House of Representatives [Repealed]
41G	Power of responsible Minister to require Crown entity to modify statement of intent [Repealed]
41H	Power of Crown entity to modify statement of intent [Repealed]
41I	Annual report of Crown entities named or described in Schedule 6 [Repealed]
42	Information on future operating intentions must include statement of responsibility [Repealed]
	Reporting requirements—Annual reports
43	Departments must prepare annual reports
43A	Departmental agencies must prepare annual reports
44	Obligation to present and publish annual reports
44A	Laying before House of Representatives of financial statements of Crown entities (other than school Boards of Trustees and Reserves Boards) [Repealed]
44B	Annual report in relation to schools’ sector [Repealed]
44C	Annual financial statements of school Boards of Trustees [Repealed]
44D	Annual financial statements of Reserves Boards [Repealed]
45	Contents of annual report of department
45AA	Contents of departmental agency annual report
45A	Statements of expenses and capital expenditure
45B	Annual financial statements
45BA	Forecast financial statements
45C	Statement of responsibility
45D	Audit report
	Miscellaneous
45E	Application of this Part to intelligence and security departments
45F	Application of this Part to Offices of Parliament
45G	This Part modified for purpose of applying Part to Offices of Parliament [Repealed]
	Part 5 Special reporting requirements
	Subpart 1—Special annual reporting requirements
45H	Application of subpart
45I	First annual report for newly established entities
45J	Final annual report for disestablished entities
45K	Final annual report for entities that cease to be subject to requirement to provide annual report
45L	Minister may allow certain information to be included in another entity’s annual report if operations transferred
	Subpart 2—Application of Crown Entities Act 2004 to Schedule 4 organisations
45M	Application of Crown Entities Act 2004 to Schedule 4 organisations
45N	Exemptions from certain sections of Crown Entities Act 2004 for Schedule 4 organisations
45O	Special provisions relating to Reserves Boards
	Part 5AAA Non-listed companies in which the Crown is majority or sole shareholder
45OA	Application of Crown Entities Act 2004 to non-listed companies in which the Crown is majority or sole shareholder
	Part 5A Mixed ownership model companies
	Preliminary provisions
45P	Definitions of mixed ownership model company and other terms
45Q	Treaty of Waitangi (Te Tiriti o Waitangi)
	51% Crown control
45R	Restriction on reduction of the Crown’s holding below 51% control
	10% limit
45S	10% limit on holdings by persons other than the Crown
45T	Effect of exceeding 10% limit
45U	Exemption from 10% limit for trustee corporations and nominee companies, etc
45V	Power of FMA to remove exemption from 10% limit for trustee corporations, nominee companies, etc
	Continuing application of certain provisions
45W	Certain provisions of State-Owned Enterprises Act 1986 and other enactments continue to apply
	Part 6 Borrowing, securities, derivatives, investment, banking, and guarantees
	Subpart 1—Borrowing
	Limits on borrowing by the Crown
46	The Crown must not borrow except under statute
47	Minister may borrow on behalf of the Crown if in public interest
48	Power to borrow must not be delegated
49	The Crown not liable for debts of Crown entities, etc
	Appointment of borrowing agents
50	Minister may appoint agents for purpose of borrowing money
51	Appointment of borrowing agents does not prevent exercise of power by Minister
52	Borrowings must be taken to be lawful
52A	Crown not to issue securities except under statute [Repealed]
53	Borrowing agents may delegate powers
	Terms and conditions of borrowing
54	Minister may determine terms and conditions of borrowing
55	Charge on public revenues
56	Power to borrow by issue of series of similar securities
57	Power to vary borrowings of the Crown
58	Conversion of money borrowed by the Crown
58A	Authority for the giving by the Crown of guarantees and indemnities [Repealed]
59	Minister may appoint underwriters, managers, etc, for borrowings of the Crown
	Payments relating to borrowings
60	Payment of principal and interest on money borrowed by the Crown
61	Expenses in respect of money borrowed by the Crown [Repealed]
	Subpart 2—Securities
	Limits on the Crown issuing securities
62	The Crown must not issue securities except under statute
63	Minister may issue securities for money borrowed by the Crown
64	Issue or variation of security taken to be lawful
	Terms and conditions of securities
65	Securities must be in name of Sovereign
65A	Power to vary public securities
65B	Issue of new public security on loss, damage, or destruction of public security
65C	Execution of securities
	Payments relating to securities
65D	Payments under public securities
65E	Expenses in respect of securities [Repealed]
	Subpart 3—Derivatives
	Limits on the Crown entering into derivatives
65F	The Crown must not enter into derivatives
65G	Minister may enter into derivatives if in public interest
	Payments relating to derivatives
65H	Payments relating to derivatives of the Crown
	Subpart 4—Investment
	Investment of public money
65I	Investment of public money
65J	Payment of expenses relating to investment [Repealed]
	Limits on lending by the Crown
65K	The Crown must not lend money except under statute
65L	Minister may lend money to persons or organisations if in public interest
65M	Minister may lend money to foreign government
65N	Authority to lend money includes authority to defer payments [Repealed]
65O	Repayment of money lent by the Crown
65P	Appropriation required for lending
65Q	Securities relating to lending must be in name of Sovereign
	Subpart 5—Banking
	Crown Bank Accounts
65R	Crown Bank Accounts
	Departmental Bank Accounts
65S	Departmental Bank Accounts
65T	Directions relating to operation of Departmental Bank Accounts
	General
65U	Payment into Bank Accounts
65V	Requirements for payment of money out of Bank Accounts
65W	Powers of Minister or Treasury in relation to Crown Bank Account and Departmental Bank Account
65X	Statement of accounts must be sent to Treasury or Auditor-General
65Y	Treasury must report on all expenses and capital expenditure incurred with or without appropriation or other statutory authority
65Z	Auditor-General may direct Ministers to report to House of Representatives in cases involving unlawful expenses, etc
65ZA	Auditor-General may stop payments out of Bank Accounts
65ZB	Application of this subpart to Offices of Parliament
	Subpart 6—Guarantees and indemnities
	Limits on giving by the Crown of guarantees and indemnities
65ZC	Guarantee or indemnity by the Crown must not be given except under statute
65ZD	Minister may give guarantee or indemnity if in public interest
65ZE	Departments may give guarantee or indemnity specified in regulations if in public interest
	Other provisions relating to guarantees and indemnities
65ZF	Recovery of money paid under guarantee
65ZG	Payments in respect of guarantees or indemnities
	Subpart 7—Permanent legislative authority for payment of certain expenses
65ZH	Permanent legislative authority for payment of certain expenses
	Part 7 Trust money
66	Trust money
67	Establishment of bank accounts for trust money
68	Investment of trust money
69	Payment of interest on trust money
70	Unclaimed trust money
	Part 7A Security and intelligence departments [Repealed]
70A	Interpretation [Repealed]
	Appropriations
70B	Nature of appropriation required [Repealed]
70C	Estimates [Repealed]
	Banking and investment
70D	Departmental Bank Accounts [Repealed]
70E	Payment into Bank Accounts [Repealed]
70F	Power of Minister or Treasury in relation to Crown Bank Account and Departmental Bank Account [Repealed]
	Reporting
70G	Annual financial statements [Repealed]
70H	Half-yearly financial statements [Repealed]
70I	Tabling of financial statements [Repealed]
70J	Information to be provided to Treasury [Repealed]
70K	Treasury instructions [Repealed]
	Part 8 General provisions
71AA	Delegation of Secretary’s powers
71	Payments on behalf of governments and international organisations
72	Payments on behalf of local authorities
73	Payment of fines to local authorities and other organisations that conduct prosecutions
74	Unclaimed money
75	Minister may exercise powers relating to bona vacantia
76	Offences
77	Penalties for offences
78	Time for commencing proceedings
79	Information to be provided to Treasury
80	Treasury instructions
80A	Minister of Finance instructions
81	Regulations, Orders in Council, and notices
82	Consultation and approval requirements for regulations or instructions relating to reporting standards
83	Abolition of certain accounts [Repealed]
84	Registration of public securities, local authority stock, and other stock
85	Government stock in United Kingdom [Repealed]
86	Consequential amendments [Repealed]
87	Repeals [Repealed]
88	Application, savings, and transitional provisions relating to amendments to Act
	Schedule 1 Application, savings, and transitional provisions relating to amendments made to Act after 1 January 2013
	Schedule 2 Enactments repealed [Repealed]
	Schedule 3 Liabilities, and categories of liabilities, not included in definition of contingent liability [Repealed]
	Schedule 4 Organisations for the purposes of subpart 2 of Part 5
	Schedule 4A Non-listed companies in which Crown is majority or sole shareholder
	Schedule 5 Mixed ownership model companies
	Schedule 6 Legal entities created by Treaty of Waitangi settlement Acts
	Schedule 7 Crown entities subject to section 16 [Repealed]
	Public Finance Amendment Act 2004
	Reprint notes

Title [Repealed]

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

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Public Finance Act 1989

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