Financial Management and Constitution Acts …FILE/581253bi1.docx · Web viewOCPC Victoria, Word 2007, Template Release 17/11/2017 (PROD) Act Act No. Clause Page Endnotes Financial

Financial Management and Constitution Acts Amendment Bill 2017

TABLE OF PROVISIONSClause Page

Part 1—Preliminary 1

1 Purposes 12 Commencement 2

Part 2—Financial Management Act 1994 4

3 Definitions 44 Relevant Minister 85 Section 6 repealed 86 Directions 97 New sections 8A and 8B inserted 98 Part 2 repealed 109 Heading to Part 3 substituted 1010 Sections 13 and 14 repealed 1011 Accounts of departments 1012 New section 15A inserted 1113 Section 16 substituted 1114 Section 17 substituted 1215 Section 18 substituted 1416 Heading to Part 4 substituted 1517 Sections 19 to 22 repealed 1518 Section 23 substituted 1519 Principles of sound financial management 1720 Budget update 1721 Annual financial report 1822 Quarterly financial report 1923 Transmission of documents to Parliament 1924 Section 28 substituted 2025 Section 29 substituted 2326 Section 30 substituted 2427 Sections 31 to 32 repealed 2428 Section 33 substituted 2529 Section 34 repealed 2730 Section 35 substituted 2731 Temporary advances to authorities 30

PARLIAMENT OF VICTORIA

581253B.I-28/11/2017 BILL LA INTRODUCTION 28/11/20171

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32 New section 36A inserted 3033 Issue of money out of Public Account 3134 Section 38 substituted 3235 Section 39 substituted 3336 Annual budget estimates 3337 New section 40DA inserted 3338 Charge for indemnities 3439 New sections 41 and 41A inserted 3540 Accountable officer 3841 Chief finance and accounting officer and other persons 3942 Section 44A substituted 4043 Report of operations and financial statements to be prepared 4244 New sections 45A and 45B inserted 4245 Tabling requirements 4546 Financial statements 4547 Information 4648 Minister may direct public body to submit financial statements 4649 Composite reports 4650 Annual reports of State-owned corporations and other bodies 4651 New section 53B inserted 4752 Heading to Part 7A substituted 4853 Specified entities 4854 Establishment of Victorian Government Purchasing Board 4855 Section 54B substituted 4856 Powers of Board 5057 Delegation 5158 Minister's directions 5159 Supply policies 5160 Section 54M substituted 5261 Minister may lease land or premises for other Ministers 5362 Writing off 5363 Liability in respect of loss or damage 5364 Regulations 5365 New section 65 inserted 5566 New sections 66 to 68 inserted 5567 Schedule 1 repealed 59

Part 3—Constitution Act 1975 60

68 Definitions 6069 Divisions 1 and 2 of Part V substituted 61

Part 4—Consequential amendments 65

70 Project Development and Construction Management Act 1994 6571 Public Administration Act 2004 6572 Victorian Industry Participation Policy Act 2003 65

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Part 5—Repeal of amending Act 66

73 Repeal of amending Act 66═════════════

Endnotes 67

1 General information 675

A Bill for an Act to amend the Constitution Act 1975 and the Financial Management Act 1994 in order to provide that the Public

Account, Consolidated Fund and Trust Fund are maintained under the Constitution Act 1975, to amend the Financial Management

Act 1994 to provide for the funding of departments and the application of appropriations from the Consolidated Fund, to make

consequential amendments to certain other Acts and for other purposes.

The Parliament of Victoria enacts:

Part 1—Preliminary1 Purposes

The purposes of this Act are—

(a) to provide that the Public Account, Consolidated Fund and Trust Fund are maintained under the Constitution Act 1975; and

Introduced in the Assembly



PARLIAMENT OF VICTORIA

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(b) to amend the Financial Management Act 1994 to reform financial management processes including—

(i) to provide for the funding of departments and the application of appropriations from the Consolidated Fund; and

(ii) to require financial statements and reports prepared under that Act to comply with Australian Accounting Standards; and

(iii) to provide for the receipt of funds from other jurisdictions; and

(iv) to enable the Minister to determine the reporting period for certain reports and statements prepared under that Act; and

(v) to provide for the accountability of senior officers of departments and public bodies; and

(vi) to rename the Victorian Government Purchasing Board as the Victorian Government Procurement Board; and

(c) to consequentially amend certain other Acts.

2 Commencement

(1) Subject to subsection (2), this Act comes into operation on 1 July 2019.

(2) The following provisions of this Act come into operation on 1 July 2018—

(a) this Part;

(b) section 3(2), (3), (4) and (6);

(c) section 5;

(d) section 6(1);

Clause Page


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(e) sections 11(1), 13, 19, 20, 22, 23 and 34;

(f) sections 37 to 50;

(g) sections 52 to 64;

(h) section 65;

(i) sections 70 to 73.

Clause Page


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Part 2—Financial Management Act 19943 Definitions

(1) Insert the following definitions in section 3 of the Financial Management Act 1994—

"annual appropriation Act means—

(a) an Act that, before it received the Royal Assent, was an Annual Appropriation Bill within the meaning of section 65 of the Constitution Act 1975; and

(b) an Act that appropriates the Consolidated Fund for purposes relating to the Parliament for a financial year;

Consolidated Fund has the same meaning as in the Constitution Act 1975;

Public Account has the same meaning as in the Constitution Act 1975;

Trust Account has the same meaning as in the Constitution Act 1975;

Trust Fund has the same meaning as in the Constitution Act 1975;

Working Account, in relation to a department, means the Trust Account established under section 23(1) for that department.".

(2) Insert the following definitions in section 3 of the Financial Management Act 1994—

"Australian Accounting Standards means the accounting standards issued by the Australian Accounting Standards Board as in force from time to time;

Part 2—Financial Management Act 1994



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Department Head has the same meaning as in the Public Administration Act 2004;

public construction has the same meaning as in the Project Development and Construction Management Act 1994;

relevant public entity has the same meaning as in section 13A of the Public Administration Act 2004;".

(3) In section 3 of the Financial Management Act 1994, for the definition of Board substitute—

"Board means the Victorian Government Procurement Board continued under section 54A(1);".

(4) In section 3 of the Financial Management Act 1994, in the definition of chief finance and accounting officer omit "and accounting".

(5) In section 3 of the Financial Management Act 1994, for the definition of department substitute—

"department means a department established by an Order under section 10 of the Public Administration Act 2004;".

(6) In section 3 of the Financial Management Act 1994, the following definitions are repealed—

(a) authorised deposit-taking institution;

(b) financial year.

(7) In section 3 of the Financial Management Act 1994, for the definition of public body substitute—




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"public body means, subject to a determination under subsection (2)—

(a) a body corporate that is—

(i) a public entity within the meaning of the Public Administration Act 2004; or

(ii) a special body within the meaning of the Public Administration Act 2004; or

(iii) an Administrative Office within the meaning of the Public Administration Act 2004; and

(b) the Victorian Public Sector Commission established under section 37 of the Public Administration Act 2004; and

(c) the Office of Public Prosecutions continued under section 39 of the Public Prosecutions Act 1994; and

(d) Victoria Police within the meaning of the Victoria Police Act 2013; and

(e) the office of the Ombudsman within the meaning of the Ombudsman Act 1973; and

(f) Court Services Victoria; and

(g) the Judicial Commission within the meaning of the Constitution Act 1975; and

(h) the Judicial College of Victoria established under section 4 of the Judicial College of Victoria Act 2001; and




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(i) the Victorian Auditor-General's Office within the meaning of the Audit Act 1994; and

(j) a University established by an Act of the Parliament of Victoria; and

(k) a body corporate of which the State has control, within the meaning of Australian Accounting Standards, and to which—

(i) the government of another State or a Territory has the right to appoint a member; or

(ii) a person or body is authorised to appoint a member under the law of another State or a Territory; and

(l) an entity determined to be a public body for the purposes of this definition under subsection (2);".

(8) In section 3 of the Financial Management Act 1994, in paragraph (c) of the definition of the relevant Minister—

(a) after "public body" insert "or entity";

(b) for "the Minister" substitute "the person".

(9) At the end of section 3 of the Financial Management Act 1994 insert—

"(2) The Minister may determine, by notice published in the Government Gazette, that an entity of which the State has control, within the meaning of the Australian Accounting Standards, is or is not a public body for the purposes of the definition of public body.




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(3) Subject to this or any other Act, an unincorporated entity of which the State has control, within the meaning of the Australian Accounting Standards, is taken to form part of a department if—

(a) the relevant Minister of that department is the Minister responsible for administering the entity; and

(b) the entity is not a department or public body; and

(c) under the Australian Accounting Standards relevant to the entity—

(i) the entity is not taken to be a public body; and

(ii) the entity's financial statements do not form part of the financial statements of any public body.".

4 Relevant Minister

At the end of section 5 of the Financial Management Act 1994 insert—

"(2) The Governor in Council, may, by Order, declare a person other than a Minister to be the relevant Minister in relation to—

(a) a public body; or

(b) an entity, other than a public body, for the purposes of a specified provision of this Act that applies to that entity.".

5 Section 6 repealed

Section 6 of the Financial Management Act 1994 is repealed.




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6 Directions

(1) In section 8(1) of the Financial Management Act 1994, for "chief finance and accounting officer" substitute "chief finance officer".

(2) In section 8(2) of the Financial Management Act 1994, after "the regulations" insert "or any determination made under section 53B(3) or (4)".

(3) Section 8(4) of the Financial Management Act 1994 is repealed.

(4) In section 8(5) of the Financial Management Act 1994—

(a) omit "in the Trust Fund";

(b) for "another Act" substitute "any other Act".

7 New sections 8A and 8B inserted

After section 8 of the Financial Management Act 1994 insert—

"8A Application of Act and regulations

The Minister may determine, by notice published in the Government Gazette, that a provision of this Act (other than a provision of Part 3, 4 or 6) or a regulation made under section 59 applies or does not apply to a department or public body specified in the notice.

8B Application of Subordinate Legislation Act 1994

Parts 3A and 5A of the Subordinate Legislation Act 1994 apply to a notice under section 3(2), 8A or 53B(3) or (4) as if it were a legislative instrument within the meaning of that Act.".




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8 Part 2 repealed

Part 2 of the Financial Management Act 1994 is repealed.

9 Heading to Part 3 substituted

For the heading to Part 3 of the Financial Management Act 1994 substitute—

"Part 3—Accounts of departments and investment of money in

Public Account".10 Sections 13 and 14 repealed

Sections 13 and 14 of the Financial Management Act 1994 are repealed.

11 Accounts of departments

(1) In section 15(1) of the Financial Management Act 1994, for "an authorised deposit-taking institution or institutions" substitute "one or more ADI".

(2) After section 15(3) of the Financial Management Act 1994 insert—

"(4) In this section—

department means any entity for the purposes of which the Treasurer is authorised by an annual appropriation Act to issue an amount from the Consolidated Fund.".




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12 New section 15A inserted


"15A Payment of departments' expenses, liabilities and obligations from Public Account

(1) If an expense, liability or obligation of a department becomes due and payable—

(a) the Treasurer must pay out of the Public Account into an account opened under section 15 by the department an amount necessary to enable the department to meet that expense, liability or obligation; and

(b) that amount is to be deducted from—

(i) the Working Account for the department; or

(ii) any Trust Account from which the department is required or permitted to make the payment.

(2) In this section—


13 Section 16 substituted

For section 16 of the Financial Management Act 1994 substitute—

"16 Receipt of public money

A person who collects or receives public money must, in accordance with the




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regulations and directions, daily or at such intervals as the Minister determines, pay the money into—

(a) if required by or under this or any other Act to be paid into an account that does not form part of the Public Account, that account; or

(b) in any other case, the Public Account.".



"17 Receipt of money from different jurisdictions

(1) This section applies to money that—

(a) is received or receivable by—

(i) the State; or

(ii) an entity, the transactions of which form part of the transactions of the State for the purposes of section 24(2)(b); and

(b) is provided by a different jurisdiction under an agreement between the State or an entity described in paragraph (a) and that jurisdiction; and

(c) is required by or under an Act to be paid into the Public Account and credited to the Consolidated Fund; and

(d) is not provided for in an annual appropriation Act for that year as an amount that may be issued by the Treasurer from the Consolidated Fund.




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(2) Subject to subsection (3), the Treasurer may issue out of the Consolidated Fund an amount equal to or less than an amount of money to which this section applies and either—

(a) credit that amount to a Trust Account; or

(b) pay out of the Public Account that amount and credit it to an account or fund other than a Trust Account.

(3) The Treasurer may not credit or pay out an amount of money under subsection (2) unless—

(a) in the case of the credit of an amount to a Trust Account, the amount is to be credited to a Trust Account from which a Minister is authorised to make payments for the purposes of the agreement between the different jurisdiction and the State; and

(b) the credit or payment is made in accordance with the agreement; and

(c) the total amount of credits or payments made in respect of that amount does not exceed the amount to which this section applies.

(4) For the purposes of subsection (2), the Consolidated Fund is to the necessary extent appropriated accordingly.


different jurisdiction means—

(a) the Commonwealth; or

(b) another State or a Territory; or




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(c) a municipal council; or

(d) the government of a jurisdiction outside Australia.".



"18 Investment of money in Public Account

(1) The Minister may invest any money from the Public Account in any manner that is consistent with the Treasury Corporation of Victoria Act 1992, the Borrowing and Investment Powers Act 1987 or any other Act.

(2) Subject to subsection (3), interest or earnings received from the investment of any money under subsection (1)—

(a) must be paid into the Public Account; and

(b) must be credited to the Consolidated Fund.

(3) If an Act or a determination made under section 93(3) of the Constitution Act 1975 provides that interest or earnings received from the investment of money from a Trust Account under subsection (1) must be credited to that account, the interest and earnings must be credited to that Trust Account.

(4) The investment of any money under subsection (1) is not taken to be a transaction on the Consolidated Fund or any Trust Account for the purposes of any Act.




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18A Liability under guarantees

If any borrowing or other contract or agreement or the performance of any other contract or agreement is by any Act declared to be guaranteed by the Government of Victoria—

(a) any amount required by the Minister or the Treasurer for fulfilling the guarantee must be paid out of the Consolidated Fund, which is to the necessary extent appropriated accordingly; and

(b) any amount received or recovered by the Minister or the Treasurer in respect of any amount paid by the Minister or the Treasurer under paragraph (a) must be paid into the Consolidated Fund.".

16 Heading to Part 4 substituted

For the heading to Part 4 of the Financial Management Act 1994 substitute—

"Part 4—Departmental Working Accounts".

17 Sections 19 to 22 repealed

Sections 19, 20, 21 and 22 of the Financial Management Act 1994 are repealed.



"23 Departmental Working Accounts

(1) The Minister administering section 93(1) of the Constitution Act 1975 must establish




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one Trust Account for each department that is to be the Working Account for the department.

(2) The Working Account for a department is to be used for the following purposes—

(a) to receive money transferred to the Working Account for the department by or under this or any other Act;

(b) to provide for the payments of amounts that are required, by or under this or any other Act, to be paid from the Public Account into an account that does not form part of the Public Account in order to meet the department's expenses, liabilities and obligations.

(3) The balance of money in the Working Account of a department may be less than zero.

(4) Nothing in this section prevents the Minister administering section 93(1) of the Constitution Act 1975 establishing Trust Accounts for the purposes of a department in addition to the Working Account.






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19 Principles of sound financial management

(1) After section 23D(1)(a) of the Financial Management Act 1994 insert—

"(ab) establish, maintain and implement systems and procedures to achieve effective management of public resources and best value for money;".

(2) After section 23D(1)(d) of the Financial Management Act 1994 insert—

"(da) ensure that financial management decisions made by departments and public bodies have regard to the Government's strategic priorities;".

(3) After section 23D(2) of the Financial Management Act 1994 insert—

"(3) The principle of sound financial management set out in subsection (1)(da) does not apply to an entity that is not subject to the control or direction of a Minister.".

20 Budget update

(1) In section 23L(1) of the Financial Management Act 1994, for "The Minister" substitute "Subject to subsection (3), the Minister".

(2) After section 23L(2) of the Financial Management Act 1994 insert—

"(3) Subsection (1) does not apply in relation to a financial year if a pre-election budget update prepared in accordance with Division 6 is released within 3 months before the due date for the budget update for that financial year.".




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21 Annual financial report

(1) Section 24(2)(d) of the Financial Management Act 1994 is repealed.

(2) In section 24(2)(f) of the Financial Management Act 1994 omit "or 31".

(3) In section 24(2)(g)(i) and (iii) of the Financial Management Act 1994, for "section 32 in respect of unused appropriation" substitute "section 28D in respect of unapplied appropriation".

(4) For section 24(2)(h) of the Financial Management Act 1994 substitute—

"(h) must include—

(i) details of amounts advanced in respect of the financial year as a result of a determination under section 35;

(ii) a statement of the purposes for which the amounts referred to in subparagraph (i) were expended;

(ha) must include—

(i) details of amounts appropriated in respect of the next financial year under section 35A;

(ii) a statement of the reasons for which the amounts appropriated under section 35A were applied;".

(5) After section 24(2)(l) of the Financial Management Act 1994 insert—

"(la) must include details of directions made under section 93(7) of the Constitution Act 1975 during the financial year;".




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22 Quarterly financial report

(1) For section 26(2B) of the Financial Management Act 1994 substitute—

"(2B) The quarterly financial report for the quarter ending on 31 December in a financial year must include, in addition to the statements referred to in subsection (2)(a) to (d) for that quarter, the statements referred to in subsection (2)(a) to (d) for the period of 6 months ending on 31 December, unless those statements are included in the mid-year report prepared under section 25 for the financial year.".

(2) For section 26(3A) of the Financial Management Act 1994 substitute—

"(3A) The quarterly financial report for the quarter ending on 30 June in a financial year must include, in addition to the statements referred to in subsection (2)(a) to (d) for that quarter, the statements referred to in subsection (2)(a) to (d) for the period of 12 months ending on 30 June, unless those statements are included in the annual financial report prepared under section 24 for the financial year.".

23 Transmission of documents to Parliament

In Column 2 of the Table to section 27D(3) of the Financial Management Act 1994, for "15 November" substitute "15 December".




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"28 Definitions

(1) In this Part—

department means any entity for the purposes of which the Treasurer is authorised by an annual appropriation Act to issue an amount from the Consolidated Fund.

(2) For the purposes of this Part, subject to any declaration made under section 5, a reference to the relevant Minister is a reference to—

(a) in relation to the Department of Legislative Council, the President of the Legislative Council; or

(b) in relation to the Department of Legislative Assembly, the Speaker of the Legislative Assembly; or

(c) in relation to a department of the Parliament, the President of the Legislative Council and the Speaker of the Legislative Assembly acting jointly; or

(d) in the case of Court Services Victoria, the Courts Council acting with the consent of the Treasurer and Attorney-General.

28A Application of money for specified purpose

For the purposes of this Act, if this or any other Act requires, authorises or deems an amount of money to be appropriated from the Consolidated Fund for a specified




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purpose, the Treasurer is taken to have applied that amount for that purpose at the time the amount is deducted from the Consolidated Fund.

28B Transactions following application of appropriated money

If an Act requires, authorises or deems an amount of money to be appropriated from the Consolidated Fund for a specified purpose, on the application of the amount, it is to be credited to the Working Account of the department to which the purpose relates, unless that amount is required or authorised by or under any Act—

(a) to be credited to one or more Trust Accounts that are not Working Accounts; or

(b) to be paid out of the Public Account into one or more accounts that do not form part of the Public Account.

28C Determination that amount has not been applied

(1) The Treasurer may, if an amount has been applied for a specified purpose in respect of a department and credited to the Working Account for that department, determine that the amount is not applied.

(2) Subject to subsection (3), a determination under subsection (1) that an amount is not applied may be made—

(a) during the financial year in which the transactions required under subsection (4) are recorded; or

(b) as soon as practicable after the end of that financial year.




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(3) A determination under subsection (1) that an amount is not applied must be made before the submission of the financial statements of the department under section 45(2) for the financial year in which the transactions required under subsection (4) are recorded.

(4) If the Treasurer determines under subsection (1) that an amount is not applied, that amount must be—

(a) deducted from the Working Account for the department; and

(b) credited to the Consolidated Fund.

28D Unapplied appropriation

(1) If the relevant Minister is satisfied that an amount appropriated for a financial year for a specified purpose in respect of a department is not applied, or is not likely to be applied, in that year, the relevant Minister, with the consent of the Treasurer, may determine that the amount, or a part of it, may not be applied in that financial year but may be applied for that specified purpose in the next financial year.

(2) If the Minister makes a determination under subsection (1), the amount appropriated for the department for the next financial year is taken to be increased accordingly.

(3) The Minister must not make a determination under subsection (1) in relation to an amount, or part of an amount, that has previously been subject to a determination under that subsection.




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28E Payments from Working Accounts for goods or services required for the provision of outputs

If a department (the first department) agrees to provide another department (the second department) with any goods or services the second department requires to provide outputs, the amount of any payment required to be made to the first department under the agreement must—

(a) be deducted from the Working Account for the second department; and

(b) be credited to the Working Account for the first department.".



"29 Appropriation of certain revenue and asset proceeds

(1) This section applies if an annual appropriation Act provides that this section applies in relation to an amount to be appropriated from the Consolidated Fund in respect of a department.

(2) To the extent and subject to the conditions agreed to by the Treasurer and the relevant Minister, revenue receivable from the provision of outputs by the department is taken to have been appropriated for the purposes of the provision of outputs by the department.

(3) To the extent and subject to the conditions agreed to by the Treasurer and the relevant Minister, proceeds received from the sale of assets by the department are taken to have




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been appropriated for the purposes of additions to the net asset base of the department.".



"30 Transfer between departmental appropriations

(1) The relevant Minister in relation to a department, with the consent of the Treasurer, may determine that an amount or part of an amount that an annual appropriation Act authorises the Treasurer to issue from the Consolidated Fund for a specified purpose in respect of that department may be transferred to, and applied for, another specified purpose in respect of that department.

(2) The relevant Minister must be satisfied, before making a determination under subsection (1), that—

(a) the amount to be transferred is not required for the purpose for which it was originally specified; and

(b) the amount authorised to be issued by the annual appropriation Act for the specified purpose to which the amount is to be transferred is insufficient for that purpose.".

27 Sections 31 to 32 repealed

Sections 31, 31A and 32 of the Financial Management Act 1994 are repealed.




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"33 Asset investment

(1) This section applies to money credited to the Working Account of a department that—

(a) is provided for in an annual appropriation Act for the purposes of the provision of outputs by the department; and

(b) has been applied.

(2) This section applies to the following as if they compose a single department—

(a) the Joint House Committees established by section 5 of the Parliamentary Committees Act 2003;

(b) the Parliamentary Budget Office established by section 17A of the Parliamentary Administration Act 2005;

(c) the Victorian Auditor-General's Office within the meaning of the Audit Act 1994;

(d) all departments of the Parliament.

(3) The total amount that may be paid from the Public Account in each financial year from a department's depreciation equivalent to which this section applies for the purposes of investment in assets by the department must not exceed the sum of—

(a) the closing depreciation equivalent balance of the department for the preceding financial year; and




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(b) the amount reported as depreciation expense in the comprehensive operating statement of the department for the financial year.

(4) The total amount that may be paid from the Public Account in each financial year from a department's accumulated operating surplus to which this section applies for the purposes of investment in assets by the department must not exceed the amount determined for the purposes of this subsection by the Treasurer in consultation with the relevant Minister in relation to the department.

(5) In this section, a reference to an investment in assets by a department includes, but is not limited to—

(a) payment of liabilities or obligations incurred for the provision of assets; and

(b) transfer by the department of an amount to an entity that is a relevant public entity in relation to the Department Head for the purpose of enabling that entity to invest in assets; and

(c) additions to the net asset base of the department.


closing depreciation equivalent balance, in relation to a financial year, means the sum of the following—

(a) the depreciation equivalent balance for the preceding financial year;

(b) the depreciation equivalent movement for the financial year;




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comprehensive operating statement, in relation to a financial year, means a statement of information of a department's revenue and expenditure for the financial year that is prepared on the same basis as a statement of the department's estimated revenue and expenditure that forms part of the statement of information prepared under section 40(1) for that financial year;

depreciation equivalent movement, in relation to a financial year, means the amount reported as depreciation expense in the comprehensive operating statement of the department for the financial year minus the amount paid from the Public Account during the financial year from the department's depreciation equivalent to which this section applies for the purposes of investment in assets.".

29 Section 34 repealed

Section 34 of the Financial Management Act 1994 is repealed.



"35 Supplementation of amounts issued for specified purposes

(1) If an annual appropriation Act authorises the Treasurer to issue an amount from the Consolidated Fund for a specified purpose in respect of a department, the Treasurer may, after consultation with the relevant Minister, determine that a further amount




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is to be advanced from the Consolidated Fund to that department for that purpose.

(2) An amount advanced under this section must be added to the Working Account for the department.

(3) The total of amounts advanced under this section in a financial year must not exceed 1% of the total amount that the Treasurer is authorised to issue by the annual appropriation Act in respect of that year.

(4) An amount advanced under this section must be repaid before the end of the second financial year following the financial year in which the advance is made.

35A Supplementation for salaries and related costs

(1) This section applies if—

(a) in respect of a financial year, the amount payable for salaries and related costs by a department is increased as the result of an Act or determination; and

(b) the amounts appropriated through the annual appropriation Act are insufficient to provide for the payment of the increased amount payable by the department in respect of salaries and related costs.

(2) If this section applies, the Treasurer may issue from the Consolidated Fund an amount not exceeding the increased amount payable in respect of the salaries and related costs




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of the department in addition to the amount issued under the annual appropriation Act.

(3) The Consolidated Fund is appropriated to the extent necessary for the purposes of this section.


determination includes any—

(a) regulation; or

(b) award, order or determination of a person or body authorised to determine minimum salaries or wages under any law of the Commonwealth or of the State; or

(c) agreement approved in accordance with the Fair Work (Registered Organisations) Act 2009 of the Commonwealth or the Fair Work Act 2009 of the Commonwealth; or

(d) agreement entered into by or on behalf of the State;

salaries and related costs includes the following—

(a) wages or other amounts in the nature of salary;

(b) payments by way of overtime or penalty rates or in lieu of long service leave;

(c) payments for retiring gratuities, superannuation contributions, annual leave loadings, payroll tax payments or WorkCover policy premiums.".




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31 Temporary advances to authorities

(1) For section 36(1)(a) of the Financial Management Act 1994 substitute—

"(a) advances to authorities not exceeding at any time an amount estimated by the Minister to be sufficient to meet one month's expenses in respect of the ordinary annual services within the meaning of section 65 of the Constitution Act 1975;".

(2) In section 36(1)(b) of the Financial Management Act 1994—

(a) omit "special";

(b) omit "pending adjustment when payment is made".

(3) For section 36(3) of the Financial Management Act 1994 substitute—

"(3) The issue or repayment of money under this section is not taken to be a transaction on the Consolidated Fund or any Trust Account for the purposes of any Act.".

32 New section 36A inserted


"36A Advances from Trust Fund to Consolidated Fund

(1) The Treasurer may advance an amount to the Consolidated Fund from a Trust Account if—

(a) that Trust Account is established under section 93(1) of the Constitution Act 1975; and




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(b) one of the purposes for which the Trust Account is established is to make advances to the Consolidated Fund.

(2) The amount of an advance under subsection (1) must—

(a) be deducted from the Trust Account from which the advance is made; and

(b) be credited to the Consolidated Fund.

(3) The Consolidated Fund is appropriated to the extent necessary to enable the repayment of an amount advanced under subsection (1).".

33 Issue of money out of Public Account

(1) For section 37(1)(a) of the Financial Management Act 1994 substitute—

"(a) money required for payment by the Minister under an agreement with a different jurisdiction within the meaning of section 17, if section 17 does not apply to that money;".

(2) In section 37(1) of the Financial Management Act 1994, for "the Government or authority or public body" substitute "that jurisdiction, the State or the authority or public body, as the case requires".


"(3) The amount of any interest paid into the Public Account under subsection (2) must be credited to the Consolidated Fund.




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(4) The issue of money under this section, or the repayment of that money, is not taken to be a transaction on the Consolidated Fund or any Trust Account for the purposes of any Act.".



"38 Borrowing of money for Public Account

(1) If at any time the Minister is satisfied that the money in the Public Account is insufficient to provide for a payment that is authorised to be made from the Public Account, the Minister may, subject to this or any other Act, borrow money and pay it into the Public Account for the purposes of making that payment.

(2) All money borrowed under this section must be paid back from the Public Account—

(a) as soon as practicable after the Minister is satisfied that sufficient funds are available in the Public Account; and

(b) before the end of the financial year following the financial year in which the money was borrowed.

(3) Any interest paid on money borrowed under this section must—

(a) be paid out of the Public Account; and

(b) be deducted from the Consolidated Fund, which is appropriated by that amount.".




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"39 Investments may be offset against borrowed money

(1) This section applies if, at a particular time—

(a) money from the Public Account is invested with an entity under section 18(1); and

(b) money borrowed under section 38 is owing to that entity.

(2) Subject to subsection (3), if this section applies the Minister may offset some or all of the money invested with the entity against money owing to that entity.

(3) The Minister may offset money under subsection (2) only to the extent that an offset does not reduce the money earned by an investment from a Trust Account if the money earned from the investment is required to be credited to that account.".

36 Annual budget estimates

Section 40(3) of the Financial Management Act 1994 is repealed.

37 New section 40DA inserted

After section 40D of the Financial Management Act 1994 insert—

"40DA Treasurer must not give indemnity unless alternative indemnity previously sought

The Treasurer must not give an indemnity under section 40C or 40D to a person or an entity against a liability unless the Treasurer is satisfied either that exceptional




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circumstances exist that justify the giving of the indemnity or that—

(a) the person or entity has previously sought to arrange insurance or an indemnity against that liability—

(i) if the Victorian Managed Insurance Authority may provide insurance or an indemnity to that person or entity under the Victorian Managed Insurance Authority Act 1996, with the Victorian Managed Insurance Authority; or

(ii) with a corporation authorised under a law of the Commonwealth to provide that type of insurance or indemnity; and

(b) the Victorian Managed Insurance Authority or that corporation, as the case requires—

(i) has declined to provide the person or entity with the indemnity or insurance; or

(ii) has offered to provide the person or entity with the indemnity or insurance but not on reasonable commercial terms.".

38 Charge for indemnities

(1) In section 40F of the Financial Management Act 1994, for "a trust account in the Trust Fund established under section 19" substitute "a Trust Account".




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(2) At the end of section 40F of the Financial Management Act 1994 insert—

"(2) Before determining an amount for payment for the purposes of subsection (1), the Treasurer must consult with the Minister responsible for approving the premiums determined by the Victorian Managed Insurance Authority under section 24(1) of the Victorian Managed Insurance Authority Act 1996.

(3) An amount paid to the Treasurer under subsection (1) must be paid into the Public Account and—

(a) if the Treasurer or an Act requires the amount to be credited to a specified Trust Account, the money in that Trust Account is increased accordingly; or

(b) in any other case, the Consolidated Fund is increased accordingly.".

39 New sections 41 and 41A inserted

Before section 42 of the Financial Management Act 1994 insert—

"41 Definitions

In this Part—

independent public body means—

(a) Court Services Victoria; or

(b) the Victorian Auditor-General's Office within the meaning of the Audit Act 1994; or

(c) the office of the Ombudsman within the meaning of the Ombudsman Act 1973; or




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(d) the Victorian Electoral Commission; or

(e) the Independent Broad-based Anti-corruption Commission established under section 12 of the Independent Broad-based Anti-corruption Commission Act 2011; or

(f) the Victorian Inspectorate within the meaning of the Victorian Inspectorate Act 2011; or

(g) the Judicial Commission within the meaning of Part IIIAA of the Constitution Act 1975; or

(h) the Judicial College of Victoria established under section 4 of the Judicial College of Victoria Act 2001;

reporting period means, in relation to a department or public body—

(a) the reporting period determined under section 45B for the department or public body; or

(b) if no reporting period has been determined for the department or public body, a financial year;

responsible body means—

(a) in the case of a public body with a statutory board or equivalent governing body established under a provision of an Act or enactment, that board or governing body; or




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(b) in relation to any other department or public body, that department or public body's accountable officer;

responsible Minister means—

(a) in relation to a department, the Minister or Ministers responsible for any part of that department; or

(b) in relation to an independent public body, the responsible body of the independent public body; or

(c) in relation to any other public body, the Minister or Ministers for the time being administering the provision of the Act or enactment that establishes that body.

41A Responsible body

(1) The responsible body of a department or public body is responsible for the financial management, financial performance and financial sustainability of the department or public body to—

(a) the responsible Minister of that department or public body; and

(b) to the extent specified under this or any other Act—

(i) in the case of the responsible body of a department, the Department Head of the Department of Treasury and Finance; or

(ii) in the case of the responsible body of a public body, any Department Head in relation to whom the public body is a relevant public entity.




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(2) Subject to subsection (3), the function of the responsible body of a department or public body is, as far as they relate to the department or public body, to further in a financially efficient and effective manner—

(a) the objectives and functions of the Government of the State; and

(b) the purpose and objectives of an Act that is relevant to the department or public body.

(3) Subsection (2)(a) does not apply to an independent public body.".

40 Accountable officer

(1) In section 42(2)(a) of the Financial Management Act 1994, for "department head" substitute "Department Head".


"(3) The accountable officer of a department or public body is responsible, to the extent specified under this or any other Act, for the financial management, financial performance and financial sustainability of the department or public body to—

(a) the responsible body of the department or public body; and

(b) the responsible Minister of the department or public body; and

(c) to the extent specified under this or any other Act—

(i) in the case of the accountable officer of a department, the Department Head of the




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Department of Treasury and Finance; or

(ii) in the case of the accountable officer of a public body, any Department Head in relation to whom the public body is a relevant public entity.

(4) The accountable officer of a department or public body must—

(a) manage the public resources for which the department or public body is responsible in a financially efficient and effective manner; and

(b) establish and maintain effective controls and reporting mechanisms for matters relating to the financial management of the department or public body; and

(c) ensure that the person designated to be the chief finance officer of the department or public body is able to meet the responsibilities of that position under this or any other Act.".

41 Chief finance and accounting officer and other persons

(1) Insert the following heading to section 43 of the Financial Management Act 1994—

"Chief finance officer".


(a) in paragraph (a), for "chief finance and accounting officer;" substitute "chief finance officer.";

(b) paragraphs (b) and (c) are repealed.




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"(3) The chief finance officer of a department or public body is responsible, to the extent specified under this or any other Act, for the financial management, financial performance and financial sustainability of the department or public body to—

(a) the responsible body of the department or public body; and

(b) the responsible Minister of the department or public body; and

(c) in the case of the chief finance officer of a department, the Department Head of the Department of Treasury and Finance; and

(d) in the case of the chief finance officer of a public body, any Department Head in relation to whom the public body is a relevant public entity.".

42 Section 44A substituted

For section 44A of the Financial Management Act 1994 substitute—

"44A Accountable officer must provide financial information

The accountable officer of a department or public body must—

(a) promptly provide information to the responsible body or responsible Minister of the department or public body or the Department Head of the




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Department of Treasury and Finance if—

(i) the responsible body, the responsible Minister or that Department Head has requested that information; or

(ii) the accountable officer considers the responsible body, the responsible Minister or that Department Head should be aware of that information; and

(b) in the case of the accountable officer of a public body, promptly provide information to any Department Head in relation to whom the public body is a relevant public entity if—

(i) the Department Head has requested that information; or

(ii) the accountable officer considers the Department Head should be aware of that information.

44AB Information on operational risks

(1) The chief finance officer of a public body must promptly provide the chief finance officer of any department, if the public body is a relevant public entity in relation to the Department Head of that department, with—

(a) details of the risks that may have a material impact on the financial position or performance of the State; and

(b) any related information subsequently requested by the chief finance officer.




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(2) On receiving information under subsection (1), the chief finance officer must promptly provide that information to the Department Head of the Department of Treasury and Finance.".

43 Report of operations and financial statements to be prepared

(1) In section 45(1) of the Financial Management Act 1994, for "financial year" (wherever occurring) substitute "reporting period".

(2) In section 45(2) of the Financial Management Act 1994, for "financial year" substitute "reporting period".

(3) Section 45(4) of the Financial Management Act 1994 is repealed.

44 New sections 45A and 45B inserted


"45A Preparation of report of operations and financial statements for superseded entity

(1) This section applies if—

(a) a department or public body (the superseded entity) has ceased to exist; and

(b) if the superseded entity had not ceased to exist, the preparation of a report of operations or financial statements would be required under section 45.

(2) If this section applies, a final report of operations or final financial statements must be prepared by—

(a) the person or public body who would be required under section 45 to prepare a report of operations or financial




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statements for the department or public body to which the functions of the superseded entity have been transferred; or

(b) if the functions of the superseded entity have not been transferred, a person designated in writing by the Minister, in consultation with the relevant Minister for the superseded entity, for the purposes of this section; or

(c) in any other case—

(i) the relevant Minister or accountable officer of the department in relation to the Department Head of which the superseded entity was a relevant public entity; or

(ii) if the superseded entity was not a relevant public entity in relation to the Department Head of any department, the Minister or the accountable officer for the Department of Treasury and Finance.

(3) A final report of operations or final financial statements prepared under this section must be certified, in the manner approved by the Minister, by the person or public body who prepares the report.

45B Minister may determine reporting period

(1) The Minister may determine in writing that a period other than a financial year is the reporting period for a department or public body, or a class of departments or public bodies, for the purposes of its first or final




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report of operations and financial statements under section 45.

(2) A determination made under subsection (1) for a department or public body, or a class of departments or public bodies, applies despite any reporting period set out in any other Act for the purposes of the department or public body's first or final report of operations and financial statements.

(3) Subject to subsection (4), the Minister may determine in writing that a period other than a financial year is the reporting period for a department or public body, or a class of departments or public bodies, for the purposes of its reports of operations and financial statements under section 45.

(4) The Minister may not make a determination under subsection (3) for a department or public body, or a class of departments or public bodies, if the reporting period for the purposes of the department or public body's reports of operations and financial statements is set out in any other Act.

(5) A determination under subsection (1) or (3) must specify—

(a) the day on which the reporting period is to end; and

(b) the time of day at which the reporting period is to end.

(6) A determination under subsection (1) must not determine a period to be a reporting period for a department or public body unless—




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(a) the period is less than 2 years; and

(b) the period—

(i) begins at the time the department or public body comes into existence and ends immediately before the start of a financial year or reporting period determined for the department or public body under subsection (3); or

(ii) begins immediately following the end of a financial year or reporting period determined for the department or public body under subsection (3) and ends at the time the department or public body ceases to exist.".

45 Tabling requirements

(1) In section 46(1) of the Financial Management Act 1994, for "financial year" (where twice occurring) substitute "reporting period".

(2) In section 46(2) of the Financial Management Act 1994, for "financial year" substitute "reporting period".

46 Financial statements

In section 49 of the Financial Management Act 1994—

(a) in paragraph (c), for "financial year" substitute "reporting period";

(b) in paragraph (d), for "that year" substitute "that reporting period".




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47 Information

In section 50 of the Financial Management Act 1994—

(a) for "financial years" substitute "reporting periods";

(b) for "future years" substitute "future reporting periods".

48 Minister may direct public body to submit financial statements

In section 52(2) of the Financial Management Act 1994, for "financial year" substitute "reporting period".

49 Composite reports

In section 53(1) of the Financial Management Act 1994, for "financial year" substitute "reporting period".

50 Annual reports of State-owned corporations and other bodies

(1) In section 53A(1) of the Financial Management Act 1994, after "Act 1992" insert "or a corporation that is a public body".

(2) In section 53A(4) of the Financial Management Act 1994, for "financial year" (where twice occurring) substitute "reporting period".

(3) In section 53A(5) of the Financial Management Act 1994—

(a) for "31 October" (where first occurring) substitute "the day that is 4 months after the end of the reporting period";

(b) for "31 October" (where second occurring) substitute "that day".

(4) In section 53A(6) of the Financial Management Act 1994, for "financial year" substitute




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"reporting period".

51 New section 53B inserted

After section 53A of the Financial Management Act 1994 insert—

"53B Application of accounting standards

(1) Subject to subsection (2) and any determination under subsection (3) or (4), a financial statement or report prepared under this Act must be consistent with an Australian Accounting Standard that applies to the entity.

(2) Subsection (1) does not apply to the extent that an Australian Accounting Standard prevents the preparation of an annual report in accordance with section 53(1)(b).

(3) The Minister may determine, by notice published in the Government Gazette, that all or part of an Australian Accounting Standard does not apply to a department or public body specified in the notice.

(4) The Minister may determine, by notice published in the Government Gazette, that a specified accounting practice applies in place of all or part of an Australian Accounting Standard specified in a notice under subsection (3) in respect of the department or public body specified in that notice.

(5) A determination under subsection (3) or (4) must be consistent with the regulations.".

52 Heading to Part 7A substituted




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For the heading to Part 7A of the Financial Management Act 1994 substitute—

"Part 7A—Procurement management".

53 Specified entities

In section 54AA(3) of the Financial Management Act 1994, for "supply policy" substitute "procurement policy".

54 Establishment of Victorian Government Purchasing Board

(1) Insert the following heading to section 54A of the Financial Management Act 1994—

"Victorian Government Procurement Board".

(2) For section 54A(1) of the Financial Management Act 1994 substitute—

"(1) The Victorian Government Purchasing Board established under this section as in force immediately before 1 July 2018 is continued as the Victorian Government Procurement Board, subject to and in accordance with this Act.".

55 Section 54B substituted

For section 54B of the Financial Management Act 1994 substitute—

"54B Functions of Board

The Board has the following functions—

(a) to provide advice to the Minister on policies relating to the procurement of goods and services by departments and specified entities;

(b) after consultation with the Minister, to prepare, make, amend and revoke




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procurement policies;

(c) to provide advice and information to departments and specified entities on their implementation of procurement policies;

(d) to foster best practice capability, efficiency and effectiveness for people, processes, governance and systems in the procurement of goods and services by departments and specified entities;

(e) at the request of the Minister or the accountable officer of a department or specified entity, to review any matter related to the procurement of goods and services by the department or specified entity and to recommend any improvements that the Board considers appropriate;

(f) to review a department or specified entity's compliance with procurement policies and directions given by the Minister under section 8;

(g) to report the findings of reviews under paragraph (f) to the Minister and to the accountable officer of the department or specified entity;

(h) any other functions conferred on the Board by this or any other Act.".

56 Powers of Board




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(1) For section 54C(2) of the Financial Management Act 1994 substitute—

"(2) Without limiting subsection (1), the Board may—

(a) require accountable officers of departments and specified entities to undertake an internal audit to assess compliance by departments and specified entities with procurement policies and Ministerial directions that relate to procurement and provide internal audit reports to the Board; and

(b) require accountable officers of departments and specified entities to provide the Board with information or data relating to procurement; and

(c) exercise any other powers conferred on the Board by this Act or the regulations.".

(2) In section 54C(3) of the Financial Management Act 1994—

(a) for "An accountable officer" substitute "The accountable officer of a department or specified entity";

(b) for paragraph (a) substitute—

"(a) internal audit reports referred to in subsection (2)(a);";

(c) for paragraph (b) substitute—

"(b) information or data referred to in subsection (2)(b).".

57 Delegation




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In section 54J of the Financial Management Act 1994—

(a) after "a member of the Board" insert ", or a person employed by the Board,";

(b) in paragraph (a), for "compliance audits to be undertaken under section 54C(2)(d)" substitute "internal audits to be undertaken under section 54C(2)(a)";

(c) in paragraph (b), for "supply policies" substitute "procurement policies".

58 Minister's directions

For section 54K(2) of the Financial Management Act 1994 substitute—

"(2) A copy of any direction must be included in the report of the Board's operations during the reporting period in which the direction is given prepared under section 45.".

59 Supply policies

(1) Insert the following heading to section 54L of the Financial Management Act 1994—

"Procurement policies".

(2) In section 54L(1) of the Financial Management Act 1994—

(a) for "The Board" substitute "After consultation with the Minister, the Board";

(b) for "supply" (where twice occurring) substitute "procurement";

(c) omit "and the management and disposal of goods by departments and specified entities".

(3) In section 54L(2), (3) and (4) of the Financial Management Act 1994, for "supply" substitute "procurement".




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60 Section 54M substituted

For section 54M of the Financial Management Act 1994 substitute—

"54M Procurement principles

The procurement of any goods, services or works (including public construction) by or on behalf of a department or public body must be undertaken consistently with the following principles—

(a) the value for money of the procurement, taking into account—

(i) the total benefits and costs over the life of the goods, services or works procured; and

(ii) environmental, social and economic factors; and

(iii) any risk related to the procurement;

(b) accountability for procurement commensurate with appropriate levels of authority and responsibility;

(c) probity through the application of integrity, ethical behaviour, fairness and transparency in the conduct of procurement processes;

(d) scalability so that procurement governance policies and processes are appropriate and efficient, taking into account the capability of available resources and the complexity of the procurement undertaken.".

61 Minister may lease land or premises for other Ministers




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(1) Insert the following heading to section 54O of the Financial Management Act 1994—

"Minister may obtain lease or licence over land or premises for other Ministers".

(2) In section 54O of the Financial Management Act 1994, for "take on lease, on any terms and conditions the Minister thinks fit," substitute "obtain, on any terms and conditions the Minister thinks fit, a lease or licence over".

62 Writing off

In section 55 of the Financial Management Act 1994, for "chief finance and accounting officer" substitute "chief finance officer".

63 Liability in respect of loss or damage

(1) In section 57(3) of the Financial Management Act 1994, for "chief finance and accounting officer" (where twice occurring) substitute "chief finance officer".


64 Regulations

(1) After section 59(1)(b) of the Financial Management Act 1994 insert—

"(ba) financial performance planning for and financial performance management of authorities and public bodies;

(bb) policies, systems and procedures for the assessment of, or the provision of advice relating to, the financial performance of authorities and public bodies by a responsible body, an accountable officer or a chief finance officer;




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(bc) policies, systems and procedures for the provision of advice or the taking of any corrective or preventative action following an audit conducted under the Audit Act 1994;".

(2) After section 59(1)(d) of the Financial Management Act 1994 insert—

"(da) compliance by a department or public body, or class of department or public body, with Australian Accounting Standards;".

(3) For section 59(1)(i) of the Financial Management Act 1994 substitute—

"(i) policies, systems and procedures for the procurement of goods and services for or on behalf of the State or by or on behalf of departments or public bodies;

(ia) subject to consultation with the Minister responsible for the administration of Part 4 of the Project Development and Construction Management Act 1994, policies, systems and procedures for the procurement of any public construction by or on behalf of the State or by or on behalf of departments or public bodies;

(ib) procedures for the application of appropriations;".

(4) In section 59(1A) of the Financial Management Act 1994, for "another Act" substitute "any other Act".





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(a) for "statement of accounting standards or" substitute "accounting standard or other";

(b) paragraphs (a), (b), (c) and (e) are repealed.

65 New section 65 inserted


"65 Financial Management and Constitution Acts Amendment Act 2017—determinations

Despite the repeal of section 6 by the Financial Management and Constitution Acts Amendment Act 2017, a determination under that section that is in force immediately before the commencement of section 5 of that Act continues to have effect as if it were a determination made under section 45B.".

66 New sections 66 to 68 inserted

At the end of Part 9 of the Financial Management Act 1994 insert—

'66 Financial Management and Constitution Acts Amendment Act 2017—general transitional provisions

(1) Balances recorded for the Consolidated Fund immediately before the commencement of section 69 of the Financial Management and Constitution Acts Amendment Act 2017 are taken to be recorded for the Consolidated Fund as continued under Division 2 of Part V of the Constitution Act 1975.

(2) Trust Accounts existing immediately before the commencement of section 69 of the Financial Management and Constitution Acts Amendment Act 2017 (whether or not




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established by an Act) continue as Trust Accounts under Part V of the Constitution Act 1975.

(3) Subject to section 67, balances recorded for a Trust Account immediately before the commencement of section 69 of the Financial Management and Constitution Acts Amendment Act 2017 are taken to be recorded for that Trust Account as continued under Part V of the Constitution Act 1975.

(4) Despite the amendment of the definition of department in section 3 by the Financial Management and Constitution Acts Amendment Act 2017, Part 7A continues to have effect, as if that definition had not been so amended, in relation to a prescribed office within the meaning of the Public Administration Act 2004.

(5) Despite the amendment of the definition of public body in section 3 by the Financial Management and Constitution Acts Amendment Act 2017, Part 7 as in force immediately before the commencement of section 3(7) of the Financial Management and Constitution Acts Amendment Act 2017 continues to have effect in relation to a public body within the meaning of paragraph (c) of that definition as in force immediately before that commencement.

(6) Section 93(5) of the Constitution Act 1975 as inserted by the Financial Management and Constitution Acts Amendment Act 2017 applies to a Trust Account established under section 19(1) or 23(1) existing immediately before the commencement of section 69 of the




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Financial Management and Constitution Acts Amendment Act 2017.

(7) Despite the commencement of the Financial Management and Constitution Acts Amendment Act 2017, this Act as in force immediately before 1 July 2019 applies in respect of the preparation of any annual financial report, mid-year report or quarterly financial report—

(a) required to be prepared for the financial year ending 30 June 2019 or any part of that financial year; and

(b) that has not been prepared immediately before 1 July 2019.

(8) For the purposes of section 33 as substituted by section 28 of the Financial Management and Constitution Acts Amendment Act 2017, the closing depreciation equivalent balance for each department for the financial year ending 30 June 2019 is the amount determined by the Treasurer in consultation with the relevant Minister in relation to the department.

67 Financial Management and Constitution Acts Amendment Act 2017—Working Accounts

(1) This section applies to a Trust Account established—

(a) under section 23(1) existing immediately before the commencement of section 18 of the Financial Management and Constitution Acts Amendment Act 2017; and

(b) for a nominated department within the meaning of section 23(5) as




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in force immediately before that commencement that is not a department within the meaning of section 23(5) as in force on that commencement.

(2) Despite the amendment of section 23 by the Financial Management and Constitution Acts Amendment Act 2017, section 23(2), (3), (4) and (5), as in force immediately before the commencement of section 18 of the Financial Management and Constitution Acts Amendment Act 2017, continue to have effect in relation to a Trust Account to which this section applies as if section 23 had not been so amended.

68 Financial Management and Constitution Acts Amendment Act 2017—opening balance of Working Accounts

(1) The Minister administering section 93(1) of the Constitution Act 1975, on establishing a Working Account under section 23(1) for a department, must record as the opening balance of that Working Account the sum of—

(a) an amount that represents the opening balance, as at 1 July 2019, of the account of the Department of Treasury and Finance known as "45000—SAU Inter-Entity Account"; and

(b) subject to subsection (2), an amount determined by the Treasurer to fairly represent the balance, as at the end of the financial year ending 30 June 2019, of the expenses, liabilities and obligations incurred by the department for purposes determined by the Treasurer, in relation to which an




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appropriation of the Consolidated Fund has not been applied as at that date.

(2) The total of all amounts determined by the Treasurer for the purposes of subsection (1)(b) must not exceed $2 billion.

(3) Details of any transactions under this section must be reported in the quarterly financial report for the quarter ending 30 September 2019 transmitted under section 27D.

(4) The Consolidated Fund is appropriated to the extent necessary for the purposes of this section.'.

67 Schedule 1 repealed

Schedule 1 to the Financial Management Act 1994 is repealed.




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Part 3—Constitution Act 197568 Definitions

(1) In section 5 of the Constitution Act 1975, for the definition of Consolidated Fund substitute—

"Consolidated Fund means the account known as the Consolidated Fund established and kept under section 9(1) of the Financial Management Act 1994 as in force immediately before the commencement of section 8 of the Financial Management and Constitution Acts Amendment Act 2017;".

(2) In section 5 of the Constitution Act 1975, in the definition of total pension entitlement, for "that day." substitute "that day;".

(3) Insert the following definitions in section 5 of the Constitution Act 1975—

"Public Account means the Public Account opened and maintained under section 14 of the Financial Management Act 1994 as in force immediately before the commencement of section 10 of the Financial Management and Constitution Acts Amendment Act 2017;

Trust Account means an account established in the Trust Fund by or under an Act;

Trust Fund means the account known as the Trust Fund that comprises all Trust Accounts.".




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69 Divisions 1 and 2 of Part V substituted

For Divisions 1 and 2 of Part V of the Constitution Act 1975 substitute—

"Division 1—Public Account89 Public Account

(1) The Minister must maintain the Public Account in accordance with this Act.

(2) Money that is required or authorised under this or any other Act to be credited to or deducted from the Consolidated Fund or a Trust Account must be paid into or out of the Public Account.

(3) An amount of money paid into or out of the Public Account under subsection (2) must be credited to, or deducted from, the Consolidated Fund or the Trust Account, as the case may be.

90 Administration of the Public Account

(1) Money in the Public Account must be deposited in an account with an ADI.

(2) The Minister may, subject to this or any other Act, direct that—

(a) the Public Account is to be deposited in a different account with an ADI; and

(b) the first account is to be closed.

Division 2—The Consolidated Fund91 The Consolidated Fund

(1) The Consolidated Fund is continued in accordance with this Act.




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(2) Money must be credited to the Consolidated Fund if—

(a) the money is—

(i) raised by or on behalf of or received by the State; or

(ii) payable under an Act on behalf of the State to a person who is employed by or under an Act or holds an office or place established by or under an Act; and

(b) the money is not required or authorised by or under an Act to be credited to—

(i) a Trust Account; or

(ii) an account that does not form part of the Public Account.

(3) The balance of the Consolidated Fund may be less than zero.

92 Power to appropriate the Consolidated Fund

(1) The Consolidated Fund may be appropriated by or under an Act for the purposes specified in that Act.

(2) The Consolidated Fund may not be appropriated except by or under this or any other Act.

(3) An amount may not be deducted from the Consolidated Fund except by or under this or any other Act.

(4) The correction of an error in any record of the balance of the Consolidated Fund is not, for the purposes of this section, taken to be—




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(a) an appropriation of the Consolidated Fund for the purposes of this section; or

(b) a deduction from the Consolidated Fund.

Division 2A—The Trust Fund93 The Trust Fund

(1) The Minister may establish Trust Accounts in the Trust Fund and define the purposes for which they are established.

(2) All money in an account that is a Trust Account for the purposes of this section is taken to be money in the Trust Fund.

(3) Subject to this or any other Act, the Minister may determine that interest or earnings received from the investment of any money from a Trust Account is to be credited to that Trust Account.

(4) Money from a Trust Account may not be expended except for the purpose for which that Trust Account is established or under the authority of this or any other Act.

(5) The Minister may direct that a Trust Account be closed and, after all liabilities of the Trust Account have been met, the Trust Account must be closed accordingly.

(6) Subsection (5) does not apply in relation to an account in the Trust Fund established under an Act other than this Act.

(7) The Minister may direct that the following be credited to another Trust Account or to the Consolidated Fund—

(a) any money in a Trust Account that is not required for the purposes for which that Trust Account is established;




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(b) the balance of a Trust Account closed under this section.

(8) Subject to this or any other Act, a transaction must not be made on the Public Account if—

(a) that transaction would require a deduction to be made from a Trust Account; and

(b) the deduction would leave the balance of the Trust Account at less than zero.

(9) The correction of an error in any record of the balance of the Trust Fund or a Trust Account is not taken to be a transaction on the Trust Fund or Trust Account for the purposes of this section.".




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Part 4—Consequential amendments70 Project Development and Construction

Management Act 1994

(1) In section 3(1) of the Project Development and Construction Management Act 1994, for the definition of public body substitute—

"public body has the same meaning as in the Financial Management Act 1994;".

(2) Insert the following heading to section 31 of the Project Development and Construction Management Act 1994—

"Inconsistency with procurement policies".

(3) In section 31 of the Project Development and Construction Management Act 1994, for "supply policy" substitute "procurement policy".

71 Public Administration Act 2004

After section 16(1)(ja) of the Public Administration Act 2004 insert—

"(k) the chairperson in relation to the Board within the meaning of the Financial Management Act 1994;".

72 Victorian Industry Participation Policy Act 2003

In section 8(a) of the Victorian Industry Participation Policy Act 2003, for "Purchasing Board" substitute "Procurement Board".




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Part 5—Repeal of amending Act73 Repeal of amending Act

This Act is repealed on 1 July 2020.Note

The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984).

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Endnotes1 General information

See www.legislation.vic.gov.au for Victorian Bills, Acts and current authorised versions of legislation and up-to-date legislative information.

By Authority. Government Printer for the State of Victoria.

Endnotes



http://www.legislation.vic.gov.au/

Documents

Financial Management and Constitution Acts …FILE/581253bi1.docx · Web viewOCPC Victoria, Word 2007, Template Release 17/11/2017 (PROD) Act Act No. Clause Page Endnotes Financial