Financial Management of Parliament Bill [B 74–2008]Briefing to Select Committee of Finance

22 October 2008

•Definitions

•Objects of Act

•Transparency, accountability, sound management

•Consultative relationship with NT

•Oversight

•Norms and standards for provincial legislatures

Interpretation and Objects

•Joint committee

•Executive Authority

•Secretary to Parliament is Accounting Officer

•Accountable to Executive Authority

•Subject to oversight by joint committee

•General financial management functions

•Written performance agreement

•Acting accounting officer appointed by Executive Authority

•System of delegation

•Fiduciary duties

Oversight, Executive Authority and Administration of Act

Planning and Budgeting

•Accounting Officer prepares:−Strategic plan−Annual performance plan−Annual budget

•Executive Authority tables for referral to joint committee•Expenditure before annual budget is passed •Unauthorised expenditure•Virement – Executive Authority may make regulations•Unspent funds

Cash management and investment

•In accordance with policy that Executive Authority must prescribe•Accounting Officer must establish systems and procedures•Bank accounts•Restrictions on borrowing•Requisitioning of funds

Financial management

•Asset and liability management

•Revenue management

•Debtor management – policy for write-off and interest

•Expenditure management – creditors

−Method of payment

−Within 30 days of receiving invoice

−Accounts closed monthly and reconciled

•Regulations by Executive Authority for support to Members and political parties

•Transfers

•Executive directives with financial implications

Supply chain management

•Executive Authority prescribe policy – Accounting Officer implements

•Consideration of unsolicited offers only in terms of policy

•Tenders not recommended

•Prohibition on contracts

•Schedule 3 peremptory

Audit committee and internal audit

•Audit Committee appointed by Executive Authority

•Audit charter

•Accounting Officer must establish and internal audit unit which must report quarterly on its performance against the audit plan

Reporting and auditing

•Monthly, quarterly, and mid-year

•Annual report

−Based on performance plan

−Annual financial statements

−Auditor-General’s report

−Audit Committee’s report

•Tabled and referred to joint committee

Other

•Regulations and instructions

•Financial misconduct

•Offences

•Repeal of legislation

•Commencement – also transitional arrangements in Schedule 4

Applicability to provincial legislatures

•Clause 3 read with Schedule 1•Peremptory norms and standards•Wording used is wide in respect of executive authority and accounting officer

Code of Ethics for Executive Authority

•Additional to Code of Conduct for Assembly and Permanent Council Members•Does not apply to provincial legislatures