Financial Management Act 1995 (Northern Territory)

The Financial Management Act 1995 establishes the Territory-level legal framework for public money and agency financial management in the Northern Territory. Its core mechanical functions are to create and govern the Public Account, to define the composition and use of that account (the Central Holding Authority and Operating Accounts), to allocate budgetary responsibilities to Accountable Officers, to regulate cash management, investment, lending and borrowing, and to set reporting, audit and internal control obligations.

Key mechanical changes effected by the Act are:

Establishment of the Public Account and its components (s 4), with the Central Holding Authority receiving all Territory receipts except those lawfully credited to Operating Accounts or Accountable Officers' Trust Accounts (s 5(1)).
Requirement that money be paid out of the Central Holding Authority only as authorised by an Appropriation Act, this Act or another Act (s 5(2)).
Creation of Agency Operating Accounts and Government Business Division Operating Accounts (s 6(1)) and the rules for receipts and payments to those accounts (s 6(2)-(3), (4)-(5)).
Specification of the Accountable Officer regime: who is an Accountable Officer (s 3(1)), their primary duties for agency financial management (s 13), constraints on committing expenditure (s 14), internal audit and accounting manual obligations (ss 15-16), and grounds for exemption (s 17).
Provision for a Treasurer’s Advance, its use and replenishment (ss 18-19, 19A), and a suite of transfer powers allowing the Treasurer to move appropriations between Purposes and Agencies subject to tabling requirements (ss 20-21).
Rules for official bank accounts, daily banking procedures and withdrawal authority (s 27-28), investment powers and permissible instruments and counterparties (s 29), and an explicit authorisation that certain investments or debt repayments need not be separately appropriated (s 30).

NORTHERN TERRITORY OF AUSTRALIA FINANCIAL MANAGEMENT ACT 1995 As in force at 1 July 2021 Table of provisions Part 1 Preliminary 1 Short title ......................................................................................... 1 2 Commencement .............................................................................. 1 3 Interpretation ................................................................................... 1 Part 2 Accounting framework 4 Public Account ................................................................................. 5 5 Central Holding Authority ................................................................. 5 6 Operating Accounts ......................................................................... 5 7 Accountable Officers' Trust Accounts .............................................. 6 8 Treasurer's quarterly financial statements ....................................... 7 9 Treasurer's annual financial statement ............................................ 7 10 Annual financial statements of Government Business Divisions .......................................................................................... 8 11 Other financial statements ............................................................... 8 12 Annual reports of agencies .............................................................. 9 Part 3 Accountable Officers 13 Duties of Accountable Officers ........................................................ 9 14 Money to be committed by Accountable Officer ............................ 10 15 Internal audit .................................................................................. 11 16 Accounting and property manuals ................................................. 11 17 Exemption of Accountable Officer ................................................. 12 Part 4 Budget management 18 Use of Treasurer's Advance .......................................................... 12 19 Increase or replenishment of Treasurer's Advance ....................... 12 19A Increase of funds available from Commonwealth .......................... 13 20 Transfer of appropriations.............................................................. 14 21 Appropriation accompanies transfer of business after redistribution .................................................................................. 14 24 Lapse of appropriation ................................................................... 15 26 Expenditure unclaimed .................................................................. 15 Part 5 Funds management 27 Official bank accounts ................................................................... 15

Financial Management Act 1995 ii 28 Withdrawal of money ..................................................................... 16 29 Investment of money ..................................................................... 16 30 No appropriation needed for investment or repayment of debt ...... 17 31 Lending .......................................................................................... 17 32 Borrowing ...................................................................................... 18 33 Other financial transactions ........................................................... 18 34 Guarantees and indemnities .......................................................... 19 35 Losses and waivers ....................................................................... 19 36 Capital structure and dividends ..................................................... 20 37 Ex gratia payments ........................................................................ 20 Part 6 Administration 38 Treasurer's Directions.................................................................... 20 39 Delegation ..................................................................................... 20 Part 7 Miscellaneous 41 Regulations.................................................................................... 21 Part 8 Transitional provisions for Financial Management Amendment Act 2009 42 Definition........................................................................................ 22 43 Application of this Act .................................................................... 22 44 References to Allocation ................................................................ 22 ENDNOTES

NORTHERN TERRITORY OF AUSTRALIA

As in force at 1 July 2021

FINANCIAL MANAGEMENT ACT 1995 An Act relating to the financial management of the Territory and certain Government business activities, and for related purposes Part 1 Preliminary 1 Short title This Act may be cited as the Financial Management Act 1995. 2 Commencement This Act shall come into operation on a date to be fixed by the Administrator by notice in the Gazette. 3 Interpretation (1) In this Act: Accountable Officer means: (a) in relation to an Agency – the chief executive officer (however described) of the Agency or a person whom the Treasurer declares in writing to be the Accountable Officer for the Agency for this Act; or (b) in relation to the Central Holding Authority – the person whom the Treasurer declares in writing to be the Accountable Officer of the Authority for this Act. Accountable Officer's Trust Account means an Accountable Officer's Trust Account established under section 7. accounts mean the records, however compiled, recorded or stored (whether in written or printed form or on film or by electronic process or otherwise) of transactions in respect of money or property held by or for the Territory or an Agency, and includes books, documents, writings, money forms, vouchers and other recorded information of any kind from which accounts have been compiled.

Part 1 Preliminary Financial Management Act 1995 2 Agency means a unit of government administration, or office or statutory corporation, nominated in an Administrative Arrangements Order as an Agency for the purposes of this Act, and includes, where the case requires, a part or division (by whatever name called) of an Agency. appropriation means: (a) an amount authorised to be paid from the Central Holding Authority pursuant to an Appropriation Act and includes any variation of that amount authorised in accordance with this or any other Act; or (b) an amount required by any other Act to be provided from the public moneys of the Territory. Appropriation Act includes a Supply Act, an annual Appropriation Act or an additional Appropriation Act which authorises an appropriation to a Purpose. audit includes the inspection, investigation, examination and review of accounts and systems. Central Holding Authority means the account by that name that forms part of the Public Account, as mentioned in section 4. employee, in relation to an Agency, means a person employed by or in the business of the Agency, and includes the Accountable Officer. expenditure means the payment of money for either actual or accrued expenses and includes an advance or transfer from an Operating Account. Government Business Division means an Agency, or a part of an Agency, that: (a) recovers a significant proportion of its operating costs through charges on users; and (b) is determined by the Treasurer to be a Government Business Division. internal control means the methods and procedures adopted within an Agency to do the following: (a) promote operational efficiency, effectiveness and economy; (b) safeguard its assets and manage its liabilities and contingent liabilities;

Part 1 Preliminary Financial Management Act 1995 3 (c) deter and protect against fraud; (d) maintain the accuracy and reliability of its accounting information; (e) ensure compliance with legislative provisions. loss includes the following: (a) a loss of or deficiencies in money or property held by or for the Territory or an Agency; (b) a loss arising out of the destruction, condemnation, obsolescence, abandonment, deterioration of or damage to property; (c) an irrecoverable overpayment and debts; (d) an expenditure made without lawful authority; (e) a loss of money due to failure to assess and levy revenue and other amounts receivable. money means cash or negotiable instruments collected, received or held by or due to a person for or on behalf of the Territory or an Agency or held in an official bank account and includes funds transferred electronically or by any other means. National Health Reform Agreement, see section 3(1) of the NHFP Act. NHFP account means either of the following established under the NHFP Act as an Operating Account for the Agency responsible for administering that Act: (a) the State Pool Account of the Territory; (b) the State Managed Fund of the Territory. NHFP Act means National Health Funding Pool and Administration (National Uniform Legislation) Act 2012. official bank account means an official bank account opened by the Treasurer in pursuance of section 27. Note See section 27(7).

Part 1 Preliminary Financial Management Act 1995 4 Operating Account means: (a) a Government Business Division Operating Account, or an Agency Operating Account, established under section 6(1); or (b) an NHFP account. Public Account means the account established under section 4. Purpose means a Purpose specified under an Appropriation Act, whether or not it is also designated under that Act as any of the following: (a) Output; (b) Capital; (c) Treasurer's Advance; (d) Commonwealth; (e) Interest, Taxes and Administration; (f) Employee Entitlements. receipts means money received into the Public Account and includes: (a) a transfer, advance or other remittance within the Public Account; and (b) the amount of the value of units in a unit trust held by or on behalf of the Territory credited to the Public Account; and (c) the amount of the value of funds managed on behalf of the Territory credited to the Public Account. securities include inscribed stock, debentures, bonds, debenture stock, notes and any other document creating, evidencing or acknowledging indebtedness (whether or not constituting a charge on property). Treasurer's Advance means the Purpose to which an appropriation is made, that may be used as mentioned in section 18. (2) A reference in this Act to a Minister in relation to an Agency (whether the relationship is by reference to the Accountable Officer, Operating Account or otherwise) is a reference to the Minister to whom the administration of the Agency, or the Act by or under which the Agency is established, is allotted under an Administrative

Part 2 Accounting framework Financial Management Act 1995 5 Arrangements Order or an Act. Part 2 Accounting framework 4 Public Account (1) The Treasurer shall establish and keep a Public Account of the receipts and expenditure of the Territory and Agencies. (2) The Public Account shall consist of: (a) the Central Holding Authority; and (b) the Operating Accounts. 5 Central Holding Authority (1) There shall be credited to the Central Holding Authority all money received by or on behalf of the Territory or an Agency except that required or permitted by or under this or any other Act to be credited to an Operating Account or to an Accountable Officer's Trust Account. (2) Money must not be paid from the Central Holding Authority except as authorised under an Appropriation Act, this Act or another Act. (3) Money payable by the Central Holding Authority for liabilities incurred or assumed by the Territory for employee entitlements must be paid out of the public moneys of the Territory and the appropriation for that Purpose is established or increased to the extent necessary. 6 Operating Accounts (1) The Treasurer shall establish for each Agency: (a) an Operating Account for each Government Business Division for which the Agency is responsible; and (b) an Agency Operating Account for all other functions of the Agency. Note for subsection (1) The definition of Operating Account in section 3(1) includes each of the NHFP accounts. However, a reference to an Operating Account established under this Act is a reference to an account established under subsection (1).

Part 2 Accounting framework Financial Management Act 1995 6 (2) There must be paid into an Operating Account the following to the extent applicable to that Operating Account: (a) payments from the Central Holding Authority in respect of the functions for which the Agency is responsible; (b) for an Operating Account for a Government Business Division – all receipts of the Government Business Division; (c) for an NHFP account – all receipts for the NHFP account including payments from the Commonwealth under the National Health Reform Agreement; (d) other categories of receipts as are from time to time agreed by the Treasurer and the Minister and specified in the Treasurer's Directions issued under section 38. (3) An amount of expenditure incurred may be paid from an Operating Account as follows: (a) for an Operating Account established under this Act – by the Accountable Officer of the Agency that performs the functions for which the Operating Account exists; (b) for an NHFP account – in accordance with the NHFP Act. (4) Subject to this Act and any other law of the Territory, if the Treasurer is satisfied at any time that there is available in an Agency Operating Account established under this Act a credit balance in excess of the amount reasonably required, the Treasurer may transfer the whole or a part of the excess from the Operating Account to the Central Holding Authority. (5) The Accountable Officer of an Agency must keep in relation to his or her Operating Account established under this Act the accounts that are specified in the Treasurer's Directions. 7 Accountable Officers' Trust Accounts (1) The Treasurer shall establish such Accountable Officer's Trust Accounts as are required by or under this Act or any other law in force in the Territory to be established for the receipt of money by the Territory or an Agency to be held in trust. (2) There shall be credited to an Accountable Officer's Trust Account all money required or permitted by this Act or any other law in force in the Territory to be held in trust by the Territory or an Agency.

Part 2 Accounting framework Financial Management Act 1995 7 (3) Money may be withdrawn from an Accountable Officer's Trust Account only for the purposes of the trust to which the money relates or for any other purpose authorised by this Act or any other law in force in the Territory. (4) Each Accountable Officer must keep in relation to his or her Accountable Officer's Trust Account the accounts that are specified in the Treasurer's Directions. 8 Treasurer's quarterly financial statements (1) As soon as practicable after the end of each of the first, second and third quarters of a financial year, the Treasurer must prepare in the form the Treasurer considers appropriate, and publish in the Gazette, financial statements for the quarter. (2) In preparing those financial statements, the Treasurer may have regard to what is required to be included in the final fiscal results report for the financial year under the Fiscal Integrity and Transparency Act 2001. 9 Treasurer's annual financial statement (1) The Treasurer must publicly release and table in the Legislative Assembly an annual financial statement for a financial year, in the form the Treasurer considers appropriate, within 4 months after the end of the financial year. (1A) If the Legislative Assembly is not sitting when an annual financial statement is publicly released, the statement must be tabled in the Legislative Assembly when it next sits. (2) The annual financial statement may incorporate the final fiscal results report for the financial year under the Fiscal Integrity and Transparency Act 2001. (3) The annual financial statement is to include reports on the following during the financial year: (a) all write-offs, waivers, postponements and gifts by the Treasurer under section 35; (b) all ex gratia payments directed by the Treasurer under section 37. (4) In tabling the annual financial statement, the Treasurer must include: (a) a signed copy of the statement; and

Part 2 Accounting framework Financial Management Act 1995 8 (b) a signed copy of the Auditor-General's report on the statement under the Audit Act 1995. 10 Annual financial statements of Government Business Divisions (1) The Accountable Officer of an Agency responsible for a Government Business Division must prepare a financial statement in respect of the Government Business Division: (a) within 2 months after the end of the financial year; or (b) by the end of another period determined by the Treasurer. (2) A financial statement under subsection (1) must be prepared in such form as the Treasurer directs and, unless the Treasurer directs otherwise, be prepared on commercial accounting principles. (3) The Accountable Officer must forward the financial statement to the Auditor-General who must audit the statement and report on the statement to the Minister and forward a copy of the report to the Accountable Officer. (4) The Minister must publicly release and table in the Legislative Assembly the financial statement and the Auditor-General's report within 4 months after the end of the financial year or another period determined by the Treasurer. (5) If the Legislative Assembly is not sitting when the financial statement and the Auditor-General's report are publicly released, the statement and the report must be tabled in the Legislative Assembly when it next sits. 11 Other financial statements (1) Subject to any other law of the Territory, the Accountable Officer of an Agency must, if the Treasurer directs the Accountable Officer to do so, prepare a financial statement in respect of the operations of, or specified functions of, the Agency for a financial year. (2) The financial statement for the financial year must be in the form the Treasurer directs and must be prepared: (a) within 2 months after the end of the financial year; or (b) by the end of another period determined by the Treasurer. (3) The Treasurer may direct the Accountable Officer of an Agency to submit the financial statement directed to be prepared under

Part 3 Accountable Officers Financial Management Act 1995 9 subsection (1) to the Auditor-General who must audit it and report on the statement to the Minister and forward a copy of the report to the Accountable Officer. (4) The Minister must publicly release and table in the Legislative Assembly the financial statement and any Auditor-General's report within 4 months after the end of the financial year or another period determined by the Treasurer. (5) If the Legislative Assembly is not sitting when the financial statement and any Auditor-General's report are publicly released, the statement and the report must be tabled in the Legislative Assembly when it next sits. 12 Annual reports of agencies All annual reports prepared under section 28 of the Public Sector Employment and Management Act 1993 shall contain financial statements prepared under section 10 or, where a relevant direction by the Treasurer has been given, under section 11. Part 3 Accountable Officers 13 Duties of Accountable Officers (1) The Accountable Officer of an Agency is responsible for the financial management of the Agency. (1A) The Accountable Officer of the Central Holding Authority is responsible for the financial management of the Central Holding Authority. (2) The Accountable Officer of an Agency must ensure that: (a) proper records of all transactions affecting the Agency are kept and that employees under his or her control observe the requirements of this Act, the Regulations and the Treasurer's Directions; and (b) procedures in the Agency are such as will at all times afford a proper internal control. (2A) The Accountable Officer of the Central Holding Authority must ensure that: (a) proper records of all transactions affecting the Central Holding Authority are kept and that the requirements of this Act, the Regulations and the Treasurer's Directions are observed; and

Part 3 Accountable Officers Financial Management Act 1995 10 (b) the Central Holding Authority's procedures are such as will at all times afford a proper internal control of the Central Holding Authority. (3) The Treasurer may, after consultation with the relevant Minister, issue a direction to the Accountable Officer of an Agency in relation to the financial management of the Agency. (4) An Accountable Officer, and an employee of the Agency, to whom a direction under subsection (3) applies must comply with the direction. (5) In complying with subsections (1) and (2), the Accountable Officer of the Agency responsible for administering the NHFP Act may rely on records kept under Part 4 of that Act about the NHFP accounts. 14 Money to be committed by Accountable Officer (1) Money shall not be committed for expenditure except by an Accountable Officer or by a person acting on the authority of an Accountable Officer. (2) The Accountable Officer of an Agency must not commit money for expenditure unless satisfied that, when payment in respect of the transaction falls due, there will be sufficient funds available in the relevant Operating Account to make the payment. (2A) The Accountable Officer of the Central Holding Authority must not commit money for expenditure unless satisfied that, when payment in respect of the transaction falls due, there will be sufficient funds available in the Central Holding Authority to make the payment. (3) The Minister may, in writing, direct the Accountable Officer of an Agency to commit money for an objective incidental to a function for which the Accountable Officer is responsible and, subject to subsection (2), the Accountable Officer shall comply with the direction. (4) The Accountable Officer of an Agency must not commit money for expenditure in a financial year if the expenditure would result in the Agency exceeding the Agency's final approved budget for the financial year. (5) Despite subsection (4), the Accountable Officer may commit money for expenditure in a financial year in excess of the Agency's final approved budget for the financial year if the Accountable Officer believes on reasonable grounds that the Agency will receive revenue that is equal to or greater than the value of the excess expenditure.

Part 3 Accountable Officers Financial Management Act 1995 11 (6) Subsection (4) does not apply in relation to money committed for expenditure that the Treasurer considers is eligible, in accordance with the Treasurer's Directions issued under section 38, for a portion of the Treasurer's Advance. (7) In this section: expense budget, for an Agency, means the Agency's total expense budget for a financial year that is specified in the budget papers tabled in the Legislative Assembly for the financial year, less an amount equal to the value of the Agency's non-cash items. final approved budget, for an Agency for a financial year, means the sum of: (a) the Agency's expense budget for the financial year as increased or decreased by a transfer or issue under section 18, 19A, 20 or 21; and (b) the greater of the following: (i) an amount equal to 1% of the amount under paragraph (a); (ii) $500 000. non-cash items means the items specified in the Treasurer's Directions issued under section 38 as non-cash items. 15 Internal audit (1) The Accountable Officer of an Agency shall ensure that the Agency has an adequate internal audit capacity to assist the Accountable Officer in the performance of his or her functions under this Act. (2) The person in charge of an internal audit of an Agency shall, as soon as practicable after completing the internal audit, report to the Accountable Officer of the Agency the result of the audit. (3) In complying with subsections (1) and (2), the records kept under Part 4 of the NHFP Act about the NHFP accounts may be relied on. 16 Accounting and property manuals The Accountable Officer of an Agency must issue and maintain an accounting and property manual for use by the employees of the Agency.

Part 4 Budget management Financial Management Act 1995 12 17 Exemption of Accountable Officer (1) The Administrator may, by instrument in writing, direct that an Accountable Officer need not comply with this Act or such provisions of or under this Act as are specified in the instrument, or need only to comply with a provision subject to such conditions as the Administrator thinks fit and specifies in the instrument, and while the direction remains in force the Accountable Officer need not comply with the Act or the provision, or shall comply subject to those conditions, as the case may be. (2) The Treasurer shall table a copy of an instrument under subsection (1) in the Legislative Assembly within 6 sitting days of the Assembly after the instrument is made. Part 4 Budget management 18 Use of Treasurer's Advance (1) The Treasurer may supplement an appropriation to a Purpose by transferring a portion of the Treasurer's Advance to that Purpose. (2) The Treasurer may transfer a proportion of the Treasurer's Advance to a Purpose to which no appropriation has been made by an Appropriation Act. 19 Increase or replenishment of Treasurer's Advance (1) If, because of reasons provided by the Treasurer, the Administrator is satisfied funds available in the Central Holding Authority will be in excess of requirements (excess funds) for a financial year, the Administrator may increase the appropriation to the Treasurer's Advance for the financial year. (1A) The amount of the increase for the financial year must not be more than the lesser of the following: (a) the amount of excess funds; (b) 5% of the total of appropriations provided by Appropriation Acts for the financial year (other than appropriations for a Purpose designated as Commonwealth). (2) The appropriation to the Treasurer's Advance may be increased in the course of a financial year by a transfer in accordance with section 20.

Part 4 Budget management Financial Management Act 1995 13 (3) The appropriation to the Treasurer's Advance may be replenished in the course of a financial year by the writing back to the Treasurer's Advance of amounts previously transferred to a Purpose and no longer required. (4) Where an increase in the appropriation to the Treasurer's Advance has been made under subsection (1), the Treasurer shall table in the Legislative Assembly, within 6 sitting days of the Assembly after the increase is made, a statement setting out: (a) the reasons given to the Administrator and referred to in that subsection; and (b) the amount by which the Treasurer's Advance has been increased. 19A Increase of funds available from Commonwealth (1) This section applies if the Treasurer is satisfied: (a) funds available in the Central Holding Authority for a financial year have been or will be increased under an Act of the Commonwealth or an arrangement between the Territory and the Commonwealth; and (b) the amount of the increase (increased funds) must be used in accordance with the Act or arrangement. (2) The Treasurer may, by written notice, authorise the issue of all or part of the amount of the increased funds so the amount to be issued is used in accordance with the Act or arrangement for the following: (a) a Purpose designated as Commonwealth in an existing appropriation for which the amount of appropriation is to be increased; (b) something that is a Purpose designated as Commonwealth in the notice. (3) The total of amounts authorised to be issued under subsection (2) in a financial year must not be more than the amount of increased funds for the financial year. (4) The appropriation for an amount authorised to be issued under subsection (2) is established or increased to the extent necessary.

Part 4 Budget management Financial Management Act 1995 14 (5) The Treasurer must table in the Legislative Assembly, within 6 sitting days after the date of a notice under subsection (2), a copy of the notice and a statement about any issue under the notice. (6) In this section: increased includes varied. 20 Transfer of appropriations (1) An excess appropriation available to a Purpose of an Agency may, in accordance with a written direction of the Treasurer, be transferred to one or more Purposes of another Agency or within the Agency, if the Treasurer is of the opinion that it is necessary to do so for the administration of government. (2) The Treasurer must table a direction under subsection (1) in the Legislative Assembly within 6 sitting days of the Assembly after the direction is given. 21 Appropriation accompanies transfer of business after redistribution (1) Where, after the passing of an Appropriation Act, the Administrator redistributes, in whole or in part, the public business amongst Agencies, the appropriate proportions, as determined by the Treasurer, of any appropriation involved must be transferred accordingly. (2) For the purposes of accounting: (a) receipts and expenditure relating to the public business redistributed under subsection (1) that are incurred before the redistribution occurred are taken to have occurred in the Agency to which the business is redistributed; and (b) payments in relation to the redistributed business that were made from the Central Holding Authority before the redistribution occurred are taken to have been provided to the Purpose of the Agency to which the business is redistributed that is the same category of Purpose as the Purpose to which the payments were made. (3) The Treasurer shall table in the Legislative Assembly, within 6 sitting days of the Assembly after the transfer in pursuance of subsection (1), a statement of the amounts of appropriation transferred under subsection (1).

Part 5 Funds management Financial Management Act 1995 15 24 Lapse of appropriation An appropriation in respect of a financial year: (a) is available for the financial year only; and (b) the balance of appropriation unexpended at the end of the financial year lapses and is not available for a subsequent financial year. 26 Expenditure unclaimed Subject to any other law of the Territory, expenditure that is unclaimed by the person entitled to it for such period after it becomes payable as the Treasurer determines shall be paid into the Central Holding Authority. Part 5 Funds management 27 Official bank accounts (1) The Treasurer must open an official bank account under the name "Northern Territory Government Account" and may, as he or she thinks fit, open other official bank accounts. (1A) An official bank account may only be opened under subsection (1) with an ADI. (2) A person shall not, except by the authority of the Treasurer, open an official bank account. (3) Except as otherwise provided by or under this or any other Act, all money shall be kept in an official bank account. (4) Overdraft accommodation shall not be granted on an official bank account except by the authority of the Treasurer. (5) All moneys collected or received by an employee of an Agency shall be paid daily, or at such other intervals of time as the Treasurer directs, to the credit of the Northern Territory Government Account or such other official bank account as the Treasurer directs. (6) Money received and paid into an official bank account that is later ascertained to be not so payable may, with the approval of an Accountable Officer, be withdrawn from the official bank account and paid to the person lawfully entitled to it.

Part 5 Funds management Financial Management Act 1995 16 (7) This section does not apply to a bank account opened and maintained as required under the NHFP Act. 28 Withdrawal of money Money shall be withdrawn by an Accountable Officer from an official bank account in accordance with the Treasurer's Directions and not otherwise. 29 Investment of money (1) The Treasurer: (a) may determine from time to time whether any, and if so what, amount of money standing at credit in an official bank account is available for investment; and (b) may invest the amount in such investments as are from time to time permitted by or under this Act, and for such periods, as the Treasurer thinks fit. (2) The Treasurer must not make an investment referred to in subsection (1) except as follows: (a) in securities of or guaranteed by the Government of the Territory, the Commonwealth or a State or another Territory of the Commonwealth; (b) in deposits, debentures, promissory notes or other securities of a statutory body the obligations of which are guaranteed by the Government of the Territory, the Commonwealth or a State or another Territory of the Commonwealth; (c) in deposits, debentures, promissory notes or other securities of a body corporate or an ADI, that maintains such minimum credit rating specified by the Treasurer as is published from time to time by a credit rating agency approved by the Treasurer; (d) whether secured or unsecured: (i) in capital market investments issued by a body corporate that maintains such minimum credit rating specified by the Treasurer as is published from time to time by a credit rating agency approved by the Treasurer; or (ii) in debentures, securities or other obligations of governments, government authorities or statutory bodies; or

Part 5 Funds management Financial Management Act 1995 17 (iii) in promissory notes made by a body corporate referred to in paragraph (c) or a statutory body whether constituted under an Act of the Territory, the Commonwealth or a State or another Territory of the Commonwealth; or (iv) in futures contracts traded on a prescribed financial market (as defined in section 9 of the Corporations Act 2001) and in forward exchange or interest rate agreements complying with such terms and conditions as the Treasurer determines; or (v) in notes, certificates, bonds, options, swaps, bills of exchange (specified by an entity specified in subsection (2)(a), (b) or (c)) and currency transactions in accordance with section 33(2); (e) with a dealer in the short term money market with established lines of credit with the Reserve Bank of Australia or a lender of last resort; (f) in such other investments as the Treasurer determines. (3) The Treasurer must table a determination under subsection (2)(f) in the Legislative Assembly within 6 sitting days of the Assembly after signing it. (4) Money received by the Treasurer as a result of an investment made under this section must be paid to the official bank account from which the money the subject of the investment was drawn. 30 No appropriation needed for investment or repayment of debt (1) Payments of money made by the Treasurer in accordance with section 29 may be made without appropriation of money for the payments so made. (2) Payments of money from the Central Holding Authority for the repayment of the principal owing on a debt may be made without appropriation of money for the payments. 31 Lending (1) The Treasurer may lend or advance money or otherwise make financial accommodation available to the Territory, an Agency, a local government council or other person. (1A) Money may be loaned under subsection (1) on the basis that if: (a) certain conditions of the loan are satisfied; and

Part 5 Funds management Financial Management Act 1995 18 (b) the approval of the Treasurer is obtained, the money loaned is not required to be repaid to the Territory. (2) The terms and conditions of lending shall be in accordance with the terms and conditions specified in the law authorising or permitting the advance. (3) The Accountable Officer of the Agency to which, or the relevant person to whom, the lending is made shall cause a record of the lending to be maintained. (4) The Accountable Officer shall review the record of the lending to ensure that lendings are properly repaid by the date on which they are due to be repaid. 32 Borrowing (1) The Treasurer may raise money or otherwise obtain financial accommodation in Australia or elsewhere for the Territory, an Agency, a local government council or other person. (2) No money shall be raised or financial accommodation otherwise obtained on the public credit of the Territory except by the authority of this Act or another law of the Territory. (3) Subject to this Act, the Territory may give security for the repayment of money raised or financial accommodation otherwise obtained on the public credit of the Territory and the payment of interest thereon. (4) All money raised or financial accommodation otherwise obtained by or on behalf of or received by the Territory pursuant to a financial agreement with the Commonwealth or otherwise on the public credit of the Territory shall be paid into an official bank account for credit to the Public Account. 33 Other financial transactions (1) The Treasurer may enter into interest rate swaps, currency swaps, hedge agreements, finance options, futures contracts or options, forward exchange rate agreements or analogous transactions, whether or not the transaction is entered into for the purpose of managing or protecting against a financial or currency risk. (2) Transactions relating to foreign currencies may be entered into with settlement fixed by reference to any time or circumstance.

Part 5 Funds management Financial Management Act 1995 19 34 Guarantees and indemnities (1) If in the opinion of a Minister, including the Treasurer, the Territory would benefit, that Minister may with the agreement of the Treasurer make arrangements for the Territory: (a) to give a guarantee, on the terms the Treasurer thinks fit, that a person's specified financial obligations will be fulfilled; or (b) to indemnify a person, on the terms the Treasurer thinks fit, for actual or potential liability in relation to the person's financial obligations. (2) Notwithstanding any other law of the Territory, an instrument effecting a guarantee or an indemnity referred to in subsection (1) shall be signed by the Treasurer, unless the Treasurer has agreed that it may be signed by the Minister or some other person on behalf of the Territory. 35 Losses and waivers (1) The Treasurer may write off: (a) irrecoverable amounts payable to the Territory or an Agency; (b) losses or deficiencies of money; or (c) the value of lost, deficient, condemned, unserviceable, abandoned or obsolete property. (2) The Treasurer may: (a) waive or postpone the right of the Territory or an Agency to: (i) the payment of an amount, or of an amount included in a class of amounts, payable to the Territory; or (ii) the recovery of any property or of property included in a class of property; or (b) dispose of property by way of gift where the Treasurer is satisfied that that course is the most appropriate action to be taken. (3) The power conferred by subsection (2) is in addition to, and does not derogate from, any other power conferred on the Treasurer by any other law of the Territory.

Part 6 Administration Financial Management Act 1995 20 36 Capital structure and dividends (1) The Treasurer may determine or alter the capital structure of an Agency or a Government Business Division, including by converting debt to equity, converting equity to debt, increasing equity, withdrawing equity, transferring assets and altering the equity base. (2) The Treasurer may determine that an Agency or a Government Business Division is to pay a dividend to the Territory, if he or she is satisfied that the Agency or Government Business Division has sufficient resources to do so. (3) A determination under subsection (1) or (2) may be made subject to the terms and conditions the Treasurer thinks fit. 37 Ex gratia payments (1) Notwithstanding anything contained in this Act, if the Treasurer is satisfied that, by reason of special circumstances, it is proper to do so, the Treasurer may direct the payment of an amount of money ex gratia. (2) Subsection (1) does not authorise a payment of money ex gratia unless the special circumstances arose in the course of the business of the Government of the Territory and unless money is lawfully available to make the payment. Part 6 Administration 38 Treasurer's Directions (1) The Treasurer may, from time to time, issue directions to Accountable Officers concerning the principles, practices and procedures to be observed in the administration of the financial affairs of the Territory and Agencies. (2) The Accountable Officer of an Agency, the Accountable Officer of the Central Holding Authority and each employee of an Agency must comply with the Treasurer's Directions. 39 Delegation (1) A person on whom a function is imposed or power conferred by or under this Act (whether by reference to an office or otherwise) may, by instrument in writing, delegate to a person or a person from time to time holding, acting in or performing the duties of a named office, designation or position any of those powers and functions, other than this power of delegation.

Part 7 Miscellaneous Financial Management Act 1995 21 (4) This section does not apply to: (a) the power to make regulations; (b) a power related to the investigation or detection of offences or unlawful acts; or (c) a power to delegate a power or function. Part 7 Miscellaneous 41 Regulations The Administrator may make regulations, not inconsistent with this Act, prescribing all matters: (a) required or permitted by this Act to be prescribed; or (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act, and in particular for or in relation to: (c) the collection, receipt, custody, issue, expenditure, due accounting for and care and management of all moneys by or on behalf of the Territory or an Agency and whether inside or outside of Australia; (d) the recording, examination, inspection and checking of all receipts and expenditures and the keeping of all necessary accounts and records; (e) the requirements in respect of records and documents; (f) the custody, issue, sale or other disposal and writing off of property and the proper accounting for and stocktaking of that property; (g) the liability of persons for or in relation to the loss of money or property of the Territory or an Agency and the repair and replacement of property damaged or destroyed; (h) the apportionment of such liability between persons; (j) the disposal of unclaimed property; (k) the inspection and examination by a person other than the Auditor-General and the checking of books, accounts, statements, returns, records and vouchers prepared and kept outside Australia in respect of money and property referred to

Part 8 Transitional provisions for Financial Management Amendment Act 2009 Financial Management Act 1995 22 in paragraph (c) outside of Australia; (m) the issue of securities or kinds of securities in relation to borrowings by the Territory, Agencies or other statutory corporations; (n) the inscription, transmission and transfer of such securities; (p) the payment of interest in respect of such borrowings; (q) the redemption of such securities; (r) the conduct and management of registries established for the purposes of this Act; and (s) imposing penalties, not exceeding 50 penalty units, for a breach of the Regulations. Part 8 Transitional provisions for Financial Management Amendment Act 2009 42 Definition In this Part: Allocation means an Allocation as defined in this Act immediately before the commencement of this section. 43 Application of this Act This Act applies in relation to an Appropriation Act that commences after the commencement of this section, including an Appropriation Act that provides for an appropriation in respect of a period before the commencement of this section. Note for section 43 The Appropriation (Additional for 2008-2009) Act 2009 provides for an appropriation in respect of a period before the commencement of this Act. 44 References to Allocation (1) Subsection (2) applies if: (a) a provision of an Act expressed or expresses an idea by using "Allocation"; and (b) the provision is amended and uses "appropriation". (2) The ideas must not be taken to be different merely because a different word is used.

Part 8 Transitional provisions for Financial Management Amendment Act 2009 Financial Management Act 1995 23 (3) In a document, a reference to "Allocation" is taken to be a reference to "appropriation" if the context permits.

ENDNOTES Financial Management Act 1995 24 ENDNOTES 1 KEY Key to abbreviations amd = amended od = order app = appendix om = omitted bl = by-law pt = Part ch = Chapter r = regulation/rule cl = clause rem = remainder div = Division renum = renumbered exp = expires/expired rep = repealed f = forms s = section Gaz = Gazette sch = Schedule hdg = heading sdiv = Subdivision ins = inserted SL = Subordinate Legislation lt = long title sub = substituted nc = not commenced 2 LIST OF LEGISLATION Financial Management Act 1995 (Act No. 4, 1995) Assent date 21 March 1995 Commenced 1 April 1995 (Gaz S13, 31 March 1995) Statute Law Revision Act 1997 (Act No. 17, 1997) Assent date 11 April 1997 Commenced 1 May 1997 (Gaz G17, 30 April 1997, p 2) Financial Institutions (Miscellaneous Amendments) Act 1997 (Act No. 23, 1997) Assent date 2 June 1997 Commenced 2 June 1997 Financial Management Amendment Act 1999 (Act No. 75, 1999) Assent date 23 December 1999 Commenced 26 January 2000 (Gaz G3, 26 January 2000, p 3) Financial Management Amendment Act 2001 (Act No. 7, 2001) Assent date 22 June 2001 Commenced 22 June 2001 Financial Management Amendment Act 2002 (Act No. 49, 2002) Assent date 9 October 2002 Commenced 9 October 2002 Financial Management Amendment Act 2003 (Act No. 27, 2003) Assent date 26 June 2003 Commenced 30 June 2003 (s 2) Financial Management Amendment Act 2009 (Act No. 15, 2009) Assent date 18 June 2009 Commenced 18 June 2009

ENDNOTES Financial Management Act 1995 25 National Health Funding Pool and Administration (National Uniform Legislation) Act 2012 (Act No. 21, 2012) Assent date 30 June 2012 Commenced 19 July 2012 (Gaz S36, 17 July 2012) Local Government Amendment Act 2014 (Act No. 19, 2014) Assent date 2 June 2014 Commenced s 16: 1 July 2014; s 18: 1 December 2014; rem: 2 June 2014, (s 2) Financial Integrity and Revenue Legislation Amendment Act 2021 (Act No. 18, 2021) Assent date 29 June 2021 Commenced 1 July 2021 (s 2) 3 SAVINGS AND TRANSITIONAL PROVISIONS s 6 Financial Management Amendment Act 2003 (Act No. 27, 2003) 4 GENERAL AMENDMENTS General amendments of a formal nature (which are not referred to in the table of amendments to this reprint) are made by the Interpretation Legislation Amendment Act 2018 (Act No. 22, 2018) to: ss 1, 3, 8, 9 and 12. 5 LIST OF AMENDMENTS s 3 amd No. 23, 1997, s 6; No. 75, 1999, s 4; No. 7, 2001, s 3; No. 49, 2002, s 3; No. 15, 2009, s 3; No. 21, 2012, s 33; No. 19, 2014, s 26 s 4 amd No. 49, 2002, s 4 s 5 amd No. 49, 2002, s 5; No. 27, 2003, s 4; No. 15, 2009, s 4 s 6 amd No. 17, 1997, s 8; No. 75, 1999, s 5; No. 49, 2002, s 6; No. 21, 2012, s 34 s 7 amd No. 75, 1999, s 6 s 8 amd No. 49, 2002, s 7 sub No. 27, 2003, s 5 s 9 amd No. 75, 1999, s 7 sub No. 27, 2003, s 5 amd No. 15, 2009, s 5; No. 18, 2021, s 4 s 10 amd No. 15, 2009, s 6; No. 18, 2021, s 5 s 11 amd No. 75, 1999, s 8; No. 49, 2002, s 8; No. 15, 2009, s 7; No. 18, 2021, s 6 s 13 amd No. 75, 1999, s 9; No. 49, 2002, s 9; No. 21, 2012, s 35 s 14 amd No. 49, 2002, s 10; No. 18, 2021, s 7 s 15 amd No. 49, 2002, s 11; No. 21, 2012, s 36 s 16 amd No. 17, 1997, s 8 sub No. 75, 1999, s 10 amd No. 49, 2002, s 12 s 18 amd No. 49, 2002, s 13; No. 15, 2009, s 15 s 19 amd No. 49, 2002, s 14; No. 15, 2009, s 8 s 19A ins No. 15, 2009, s 9 s 20 amd No. 49, 2002, s 15; No. 15, 2009, s 10 s 21 amd No. 49, 2002, s 16; No. 15, 2009, s 15 s 22 rep No. 15, 2009, s 11 s 23 amd No. 17, 1997, s 8; No. 75, 1999, s 11 rep No. 49, 2002, s 17

ENDNOTES Financial Management Act 1995 26 s 24 sub No. 15, 2009, s 12 s 25 sub No. 75, 1999, s 12 rep No. 49, 2002, s 17 s 26 amd No. 49, 2002, s 18 s 27 amd No. 23, 1997, s 6; No. 49, 2002, s 19; No. 15, 2009, s 15; No. 21, 2012, s 37 s 28 amd No. 75, 1999, s.13 s 29 amd No. 23, 1997, s 6; No. 49, 2002, s 20; No. 15, 2009, s 15 s 30 amd No. 49, 2002, s 21; No. 15, 2009, s 15 s 31 amd No. 75, 1999, s 14 s 34 amd No. 75, 1999, s 15; No. 15, 2009, s 15 s 36 sub No. 75, 1999, s 16 amd No. 49, 2002, s 22 s 38 amd No. 49, 2002, s 23 s 39 amd No. 15, 2009, s 15 s 40 amd No. 49, 2002, s 24; No. 15, 2009, s 15 rep No. 18, 2021, s 8 s 41 amd No. 49, 2002, s 25 pt 8 hdg sub No. 15, 2009, s 13 ss 42 – 44 sub No. 15, 2009, s 13 s 45 rep No. 15, 2009, s 13 s 46 ins No. 49, 2002, s 26 rep No. 15, 2009, s 13 sch rep No. 15, 2009, s 14

1 Financial Management Act 1995

The Act rests on several interlocking concepts that determine how public funds are handled operationally: the Public Account (s 4); the Central Holding Authority and Operating Accounts (ss 5-6); Accountable Officers (s 3(1), s 13); Appropriation and Purpose (s 3(1)); and Treasurer’s administrative powers (Treasurer’s Advance, Treasurer’s Directions). These are not abstract definitions; they govern how money moves and who may commit or control it.

Public Account and Central Holding Authority

The Treasurer must keep a Public Account of Territory receipts and expenditure (s 4(1)). The Public Account consists of the Central Holding Authority and Operating Accounts (s 4(2)). The Central Holding Authority is the principal repository: all money received by or on behalf of the Territory or an Agency must be credited to it unless another Act requires it to be credited elsewhere (s 5(1)). Payments from the Central Holding Authority are lawful only when authorised under an Appropriation Act, this Act or another Act (s 5(2)). The Central Holding Authority also funds employee entitlements and may require appropriations to be increased to meet those liabilities (s 5(3)).

Operating Accounts and NHFP accounts

The Treasurer establishes Operating Accounts for Agencies and for Government Business Divisions (s 6(1)). Receipts appropriate to those accounts are paid into them (s 6(2)), and expenditures may be paid from them by the relevant Accountable Officer (s 6(3)). NHFP accounts created under the NHFP Act are treated as Operating Accounts (s 3(1) definitions; s 6 note), and the Act permits reliance on NHFP records for compliance in certain respects (ss 13(5), 15(3), 16).

Accountable Officers and spending controls

Accountable Officers are defined as the chief executive or a person declared in writing by the Treasurer (s 3(1)). The Accountable Officer holds primary responsibility for agency financial management (s 13(1)) and must ensure the keeping of proper records and internal control systems (s 13(2)). Money may only be committed by an Accountable Officer or someone acting under their authority (s 14(1)). Accountable Officers must not commit funds unless satisfied that the relevant Operating Account or Central Holding Authority will have sufficient funds when payment falls due (s 14(2), 14(2A)). Accountable Officers must not commit expenditure that would cause the Agency to exceed its final approved budget for the financial year unless specific exceptions apply (s 14(4)-(6)). The Act defines final approved budget and expense budget, with non-cash items and specified margins (s 14(7) definitions).

Treasurer’s substantive fiscal levers

The Treasurer’s Advance is a Purpose to which an appropriation is made and may be used to supplement other appropriations (s 18). The Administrator may increase the appropriation to the Treasurer’s Advance if excess funds exist (s 19(1)) but only up to the lesser of the excess funds or 5% of total appropriations (s 19(1A)). The Treasurer may also authorise the issue of Commonwealth-derived funds in line with federal agreements and must table notices and statements when doing so (s 19A). The Treasurer may transfer excess appropriations between Purposes and Agencies when necessary for administration (s 20), and appropriations follow a redistribution of public business (s 21).

Investment, lending, borrowing and derivatives

The Treasurer can invest official bank account balances subject to permissible instruments and counterparty credit standards (s 29(1)-(2)), and must table determinations for any other investments (s 29(3)). Payments for investment and principal repayment of debt may be made without separate appropriation (s 30). The Treasurer can lend money to various public and private parties and may make loans conditional on forgiveness if conditions are met and Treasurer approval obtained (s 31(1), (1A)). Borrowing must be authorised by the Act or another law and all money raised on public credit must be paid into an official bank account (s 32).

Risk allocation, guarantees and remediation powers

Ministers with Treasurer agreement may arrange guarantees or indemnities on terms the Treasurer thinks fit (s 34(1)). Instruments of guarantee or indemnity must be signed by the Treasurer unless the Treasurer agrees otherwise (s 34(2)). The Treasurer may write off irrecoverable amounts and losses and may waive or postpone rights to payment or recovery of property, and may dispose of property by gift (s 35). Ex gratia payments require the Treasurer to be satisfied special circumstances arising in the course of government business make the payment proper and that funds are lawfully available (s 37).

Administrative and accountability architecture

Treasurer’s Directions set the detailed principles, practices and procedures for financial administration and are binding on Accountable Officers and employees (s 38(1)-(2)). The Treasurer must prepare and publish quarterly and annual financial statements (ss 8-9) and Government Business Divisions and other directed statements are prepared on Treasurer’s terms and audited by the Auditor-General (ss 10-11). Internal audit capacity is required within each Agency (s 15) and the Accountable Officer must issue an accounting and property manual (s 16). Delegations of powers under the Act are permitted in writing but not for certain functions and not for the power to make regulations or functions related to investigations (s 39).

These concepts form a unitary operating system: central cash pooling in the Central Holding Authority, decentralised execution through Accountable Officers subject to Treasurer’s Directions and controls, and strong executive discretion for the Treasurer over transfers, investments, guarantees, write‑offs and corporate capital levers.

Primary legal duties and operational consequences fall on three classes of actors: the Treasurer, Accountable Officers (and their employees), and Ministers. Secondary effects reach Agencies, Government Business Divisions, the Auditor‑General, the Legislative Assembly, banking counterparties (ADIs and credit-rated entities), recipients of grants, loans, guarantees and ex gratia payments, and the public via reporting.

Treasurer

The Treasurer is the central decision‑maker. The Treasurer establishes and keeps the Public Account (s 4), controls the Central Holding Authority (s 5), determines investment rules and permitted instruments (s 29), may issue Treasurer’s Directions (s 38), authorise transfers of appropriations and use of the Treasurer’s Advance (ss 18-21), sign guarantees and indemnities (s 34(2)), write off losses and make waivers and gifts (s 35), alter capital structure and require dividends from Agencies (s 36), direct ex gratia payments (s 37), and table financial statements and notices in the Legislative Assembly (ss 8-9, 19(4), 19A(5), 20(2), 21(3)). The Treasurer also must approve opening official bank accounts (s 27(1)-(2)) and prescribe investment counterparty standards (s 29(2)(c), (d)).

Accountable Officers and Agencies

Accountable Officers hold statutory responsibility for agency financial management (s 13(1)) and for maintaining proper records and internal controls (s 13(2)). They must ensure money is not committed except by themselves or authorised persons (s 14(1)) and must be satisfied that funds will be available when payment falls due before committing expenditure (s 14(2)). Accountable Officers must ensure internal audit capacity (s 15), maintain accounting and property manuals (s 16), and keep account records as required by Treasurer’s Directions (ss 6(5), 7(4)). They are the signatories for withdrawals from Operating Accounts, subject to Treasurer’s Directions (s 6(3), s 28). Agencies preparing Government Business Division statements must comply with Treasurer directions and are subject to Auditor-General audit (s 10).

Ministers and other officials

A Minister may direct an Accountable Officer in writing to commit money for functions incidental to the Agency’s role (s 14(3)), but Accountable Officers must still respect budget constraints (s 14(2), (4)-(6)). Ministers (including the Treasurer) may, with Treasurer agreement, arrange guarantees or indemnities for the Territory (s 34(1)). The Administrator has power to exempt Accountable Officers from compliance or parts of the Act (s 17), and those exemptions must be tabled by the Treasurer (s 17(2)).

Auditor‑General and Legislative Assembly

The Auditor‑General audits the Treasurer’s annual financial statement (s 9(4)(b)), audits Government Business Division statements and reports to the Minister and Accountable Officer (s 10(3)), and audits other financial statements directed by the Treasurer (s 11(3)). The Legislative Assembly receives and reviews financial statements and Treasurer tablings; the Act prescribes tabling timelines for statements, transfers and notices (ss 8-11, 19(4), 19A(5), 20(2), 21(3)).

Financial counterparties, recipients and public

Banking institutions authorised as ADIs may be appointed to hold official bank accounts (s 27(1A)). Investment counterparties must meet credit rating standards specified by the Treasurer (s 29(2)(c)-(d)). Entities receiving loans, guarantees, indemnities or ex gratia payments are affected by terms and approval processes in ss 31-37. The general public is affected via the transparency regime , quarterly statements (s 8), annual statements (s 9) and public release of Government Business Division financial statements (s 10(4)).

Who pays and who bears risk

Agencies bear operational compliance costs: record‑keeping, internal audit, accounting manuals, and meeting Treasurer’s Directions (ss 13-16, 38). The Territory as a whole bears fiscal risk from guarantees, lending, write‑offs, ex gratia payments and capital structure decisions made by the Treasurer (ss 31-37). Where the Treasurer issues guarantees or forgives loans after condition satisfaction (s 31(1A)), the Territory’s fiscal position can change without a direct parliamentary appropriation, although tabling and reporting obligations apply (s 19A(5), s 20(2)). Accountable Officers who permit unauthorised commitments or mismanage funds may face administrative or legal consequences under other Territory law; the Act requires tabling and Auditor‑General involvement but does not specify criminal penalties for breach of most operational provisions.

The Act creates specific duties for the Treasurer, Accountable Officers, Ministers and other officers and sets out rights in the form of authorisations, approvals and procedural protections. Below are the principal duties and the legal mechanisms that implement them.

Duties of the Treasurer

Maintain Public Account (s 4(1)).
Ensure Central Holding Authority and Operating Accounts exist and are credited appropriately (ss 4-6).
Determine permissible investments and invest official funds consistent with s 29(1)-(2); table any determinations under s 29(2)(f) (s 29(3)).
Prepare and publish quarterly and annual financial statements (ss 8-9); include write-offs, waivers and ex gratia payments in the annual statement (s 9(3)(a)-(b)); provide signed copies and the Auditor‑General’s report when tabling (s 9(4)).
Issue Treasurer’s Directions about principles, practices and procedures for financial administration, which bind Accountable Officers and employees (s 38(1)-(2)).
Authorise transfer of appropriations and the use of the Treasurer’s Advance subject to tabling obligations (ss 18-21).
Make lending, borrowing and guarantee arrangements consistent with ss 31-34, and exercise write‑off and waiver powers (s 35).
Sign guarantee or indemnity instruments unless otherwise agreed (s 34(2)).

Duties of Accountable Officers and Agencies

Responsible for the financial management of their Agency or of the Central Holding Authority where applicable (s 13(1), s 13(1A)).
Keep proper records and ensure internal control and compliance with this Act, the Regulations and Treasurer’s Directions (s 13(2), s 13(2A)).
Ensure internal audit capacity (s 15) and report internal audit outcomes (s 15(2)).
Issue and maintain an accounting and property manual (s 16).
Do not commit money except by themselves or authorised persons and ensure funds will be available when payment falls due (s 14(1)-(2A)). Do not exceed final approved budget without statutory exceptions (s 14(4)-(6)).
Prepare financial statements where directed (ss 10-11) and submit to Auditor‑General for audit where required (s 10(3), s 11(3)).

Duties of Ministers and Administrator

Ministers may direct Accountable Officers to commit money for incidental objectives but subject to budget rules (s 14(3)).
The Administrator may exempt Accountable Officers from compliance with the Act or conditions (s 17(1)); the Treasurer must table such an instrument (s 17(2)).

Rights, authorisations and procedural protections

Appropriation as the legal source of payment: money payable by the Central Holding Authority must be authorised by an Appropriation Act or this Act (s 5(2)); however, the Act explicitly allows certain payments (investment, debt repayment) without separate appropriation (s 30).
The Treasurer may decide to transfer a portion of the Treasurer’s Advance to an unappropriated Purpose (s 18(2)); but increases and transfers are subject to tabling requirements (s 19(4), s 20(2), s 19A(5)).
Accountable Officers have the right to rely on NHFP Act records when applicable (s 13(5), s 15(3), s 16 note).
Delegations may be made in writing for powers under the Act except the delegation power itself and specified excluded powers (s 39(1), (4)).

Constraints and procedural checks

Tabling requirements create parliamentary oversight of transfers, increases and notices (ss 19(4), 19A(5), 20(2), 21(3)).
Auditor‑General audit functions provide external audit oversight for Treasurer’s statements and Agency statements (ss 9(4), 10(3), 11(3)).
Investment rules require minimum credit ratings specified by the Treasurer and public tabling of determinations for “other investments” (s 29(2)(c)-(f), s 29(3)).
The Act requires the Treasurer to publish the quarterly and annual statements (ss 8-9), thereby making fiscal actions and write-offs publicly visible.

Practical rights and constraints to note

Accountable Officers retain statutory authority and duty to prevent unauthorised commitments (s 14); they are not passive implementers.
The Treasurer’s wide discretion is subject to tabling and audit obligations, but the Act centralises many budgetary levers in the Treasurer’s office.
Where the Treasurer agrees, loans may be made conditional upon forgiveness (s 31(1A)), creating a mechanism for transfers of public value without traditional appropriation processes, subject to internal procedural accountability.

The Act itself contains few prescriptive penalties for breaches of its operational obligations. Instead it creates reporting, auditing and tabling obligations and confers strong administrative powers on the Treasurer and the Administrator to control and correct financial practice. Enforcement in the form of criminal penalties under this Act is minimal; the main enforcement and accountability mechanisms are administrative and audit‑based.

Statutory penalties and regulation‑making power

The Act provides the Administrator with regulation‑making power and expressly permits the Regulations to impose penalties not exceeding 50 penalty units for breaches of the Regulations (s 41(s)). The Act does not itself specify criminal or civil penalties for most substantive breaches such as unauthorised commitments, improper investment or diversion of funds; those matters can be addressed by regulations or by other Territory laws.

Administrative enforcement: direction, tabling and audit

The Treasurer may issue directions to Accountable Officers; those directions are binding and non‑compliance is a breach of a statutory instrument (s 38(1)-(2)). Enforcement of Treasurer’s Directions will typically be administrative: remedial directions, reporting requirements, reallocation of funds, or referral to other processes within the public sector governance framework.
The Accountable Officer’s duty to keep proper records and internal controls (s 13(2)) and the obligation to provide internal audits (s 15) create repeated administrative checks. Internal audit reports must be provided to the Accountable Officer (s 15(2)), and the Auditor‑General audits external statements (ss 9(4), 10(3), 11(3)), which produces public audit findings and potential parliamentary scrutiny.
Tabling requirements for transfers, increases and notices (ss 19(4), 19A(5), 20(2), 21(3)) generate parliamentary visibility, which is a political and reputational enforcement mechanism.

Financial corrective powers vested in the Treasurer

The Treasurer can write off irrecoverable amounts, losses and deficiencies or the value of obsolete property (s 35(1)). The Treasurer can also waive or postpone rights to payment or recovery, and may dispose of property by gift (s 35(2)). Those powers are corrective rather than punitive and may be used to address accounting or recovery difficulties instead of imposing penalties.
Ex gratia payments are permitted where the Treasurer is satisfied special circumstances make them proper and funds are lawfully available (s 37). The annual financial statement must report all write‑offs, waivers and ex gratia payments (s 9(3)); reporting acts as a check.

Delegation limits and excluded powers

The delegation regime (s 39) allows operational delegation of powers but expressly excludes the power to make regulations, powers related to investigation or detection of offences, and the power to delegate. This preserves a chain of accountability for sensitive powers and prevents dilution of authority in enforcement functions (s 39(4)(a)-(c)).

What the Act does not do (as per its text)

The Act does not specify particular criminal sanctions for most breaches of the spending and investment rules; instead, it prescribes administrative oversight, audit, tabling and remedial powers. Where sanctions exist, they are likely to be found in Regulations made under s 41 or in other Territory legislation. Practitioners should check subordinate legislation and other applicable Territory laws for offence provisions and pecuniary penalties that may apply to misuse of public funds.

Practical enforcement pathways

Non‑compliance will typically be pursued through administrative channels: internal audit, Auditor‑General reports, Ministerial directions, tabling to the Legislative Assembly and possible referral to other legal or disciplinary mechanisms. The Treasurer’s ability to write off or waive amounts also shapes enforcement choices: sometimes financial relief or accommodation is the statutory route rather than prosecution.

The Act expressly references and integrates with several Territory and Commonwealth laws. These interactions are operational; they either displace or allow reliance on records created under other Acts, or they require coordination where Commonwealth funding or national arrangements are involved.

National Health Funding Pool and Administration (National Uniform Legislation) Act 2012 (NHFP Act)

NHFP accounts are defined as Operating Accounts in s 3(1) and are specifically referred to in s 6(1) and s 6 note. The Act allows Agency Accountable Officers to rely on records kept under Part 4 of the NHFP Act for compliance with ss 13 and 15 (ss 13(5), 15(3)) and for accounting and property manuals (s 16 note). Section 27(7) also notes that s 27 does not apply to accounts opened and maintained under the NHFP Act. These provisions create a specific carve‑out and mutual reliance arrangement between the Financial Management Act and the NHFP Act.

Fiscal Integrity and Transparency Act 2001 and Audit Act 1995

The Treasurer’s quarterly statements may have regard to requirements under the Fiscal Integrity and Transparency Act 2001 when preparing quarterly statements (s 8(2)). The annual financial statement may incorporate the final fiscal results report under that Act (s 9(2)). The Auditor‑General’s audit obligations are implemented through the Audit Act 1995; the Treasurer must include the Auditor‑General’s report on the annual financial statement when tabling (s 9(4)(b)). Government Business Division and other financial statements must be forwarded to and audited by the Auditor‑General (ss 10(3), 11(3)), which creates audit linkages to the Audit Act.

Public Sector Employment and Management Act 1993

Annual reports prepared under s 28 of the Public Sector Employment and Management Act 1993 must contain financial statements prepared under ss 10 or 11 where relevant (s 12). That creates a reporting chain between agency employment reporting obligations and the financial reporting scheme set out here.

Appropriation Acts and Supply Acts

The Act refers repeatedly to Appropriation Acts as the legal authorisation for payments from the Central Holding Authority (s 5(2)) and to Appropriation Acts as establishing Purposes to which appropriations are made, with the Treasurer’s Advance also being an appropriated Purpose (s 18). The Act’s tabling obligations and transfer powers are procedural complements to parliamentary appropriation scrutiny.

Administrative Arrangements and Ministerial allocations

Section 3(2) treats references to a Minister in relation to an Agency as a reference to the Minister to whom the administration is allotted under an Administrative Arrangements Order or Act. Section 21 deals with appropriation transfers after redistribution of public business by the Administrator. These provisions tie the Act into executive administrative structuring instruments.

Corporations Act 2001 and prescribed financial markets

The investment powers in s 29(2)(d)(iv) refer to futures contracts traded on a prescribed financial market as defined in s 9 of the Corporations Act 2001. This cross‑reference limits the scope of permissible derivatives to those traded on recognised markets under the Commonwealth Corporations Act framework.

Other Territory legislation and regulations

The Regulations under s 41 can prescribe detailed operational rules, recordkeeping, custody and disposal of property, inspection rights beyond the Auditor‑General, securities issuance and registry management, and may impose penalties up to 50 penalty units. The Act’s endnotes also list amending Acts and commencement dates, which practitioners must consult to track changes.

Practical interface consequences

Where Commonwealth funds are earmarked or conditions attach (s 19A), the Treasurer may authorise the issue of increased funds to Purposes designated as Commonwealth and must table notices and statements (s 19A(2)-(5)). This formalises the treatment of intergovernmental funds and enforces use in accordance with Commonwealth arrangements.
NHFP accounts enjoy special treatment; agencies administering health funding can rely on NHFP records for compliance rather than duplicate processes (ss 13(5), 15(3), 16 note). Practitioners dealing with health funding must therefore consult both statutes.

Overall, the Act is designed to operate as part of a statutory network: appropriation law, audit law, intergovernmental funding arrangements and sectoral statutes (such as NHFP) all intersect with its rules.

The source endnotes record the Act’s amendment history up to the reprint at 1 July 2021. Amendments have been periodic and cover definitional, procedural and structural changes. The endnotes list the amending Acts by name, year and where relevant, commencement dates and section references in the reprint.

Principal legislative changes recorded in the endnotes:

Financial Management Act 1995 (Act No. 4, 1995) original assent 21 March 1995; commenced 1 April 1995.
Statute Law Revision Act 1997 (Act No. 17, 1997), assent 11 April 1997; commenced 1 May 1997.
Financial Institutions (Miscellaneous Amendments) Act 1997 (Act No. 23, 1997), assent 2 June 1997; commenced 2 June 1997.
Financial Management Amendment Act 1999 (Act No. 75, 1999), assent 23 December 1999; commenced 26 January 2000. Multiple sections amended (see list under endnotes 5).
Financial Management Amendment Act 2001 (Act No. 7, 2001), assent 22 June 2001; commenced 22 June 2001.
Financial Management Amendment Act 2002 (Act No. 49, 2002), assent 9 October 2002; commenced 9 October 2002. Numerous substantive amendments noted across definitions, investments, Treasurer’s Directions and other provisions (see endnotes).
Financial Management Amendment Act 2003 (Act No. 27, 2003), assent 26 June 2003; commenced 30 June 2003 (s 2). Substitution and redesign of certain provisions recorded (e.g. s 8, s 9).
Financial Management Amendment Act 2009 (Act No. 15, 2009), assent 18 June 2009; commenced 18 June 2009. This amending Act introduced s 19A (increase of funds available from Commonwealth), and Part 8 transitional provisions (ss 42-44); it also amended s 6 and several other sections.
National Health Funding Pool and Administration (National Uniform Legislation) Act 2012 (Act No. 21, 2012), assent 30 June 2012; commenced 19 July 2012. This amending instrument incorporated NHFP account references and allowed reliance on NHFP records in several provisions.
Local Government Amendment Act 2014 (Act No. 19, 2014), assent 2 June 2014, with specified commencements in 2014 for particular sections.
Financial Integrity and Revenue Legislation Amendment Act 2021 (Act No. 18, 2021), assent 29 June 2021; commenced 1 July 2021. The endnotes list specific sections amended in 2021: s 9, s 10, s 11, s 14 and others.

The list of amendments in endnote 5 ties particular sections to specific amending Acts and section numbers within those amending Acts. For example, s 29 amendments are noted as made by No. 23, 1997; No. 49, 2002; No. 15, 2009 (endnote 5). The endnotes also note general formal amendments by the Interpretation Legislation Amendment Act 2018 to ss 1, 3, 8, 9 and 12 (endnote 4).

Transitional provisions

Part 8 contains transitional provisions for the Financial Management Amendment Act 2009, including definitions and application clauses (ss 42-44) and a note that Appropriation (Additional for 2008-2009) Act 2009 provides for an appropriation prior to commencement (s 43 note). The endnotes include savings and transitional references for earlier amendments (endnote 3).

Practitioner implications

The Act has been regularly amended to accommodate new policy regimes (for example the NHFP Act), to refine accounting and reporting timeframes, and to update investment and bank account rules. Anyone advising on current obligations should consult the reprint and the specific amending Acts listed in the endnotes, particularly for s 29 investment rules, s 14 spending limits, s 9 reporting timeframes and any recent changes reflected in the Financial Integrity and Revenue Legislation Amendment Act 2021.

The printed reprint and endnotes do not record any litigation decisions or cases under the Financial Management Act 1995. The statutory text itself does not cite judicial decisions. Consequently, the source contains no explicit litigation history to report.

What the absence in the source implies and how to proceed

The Act’s text and endnotes do not contain references to judicial interpretation, which means that any judicial development of its provisions must be identified by searching cases decided after the Act’s commencement and subsequent amendments. Relevant litigation, if any, might address:
- The scope of the Treasurer’s discretion in transfers, investments, write‑offs or guarantees (ss 18-21, 29, 34-35).
- The duties and potential liabilities of Accountable Officers for unauthorised commitments or failure to maintain records and internal controls (ss 13-14).
- Challenges to administrative decisions made under Treasurer’s Directions or to tabling and reporting processes.
- Disputes concerning the treatment of NHFP accounts and intergovernmental funding (ss 3(1) definitions, 6, 13, 15).

Recommended research approach

To establish litigation precedents applicable to this Act, practitioners should search Territory case law databases and decisions of relevant administrative tribunals for reported decisions citing the Financial Management Act 1995 or decisions concerning public finance in the Northern Territory. Given the interconnected statutory regime, relevant litigation could also involve the Audit Act 1995, the Fiscal Integrity and Transparency Act 2001, and sectoral statutes such as the NHFP Act.

Limitations of this note

Because the provided source contains no cases, this section does not list judicial interpretations. Any legal advice relying on judicial interpretation must be supplemented by an up‑to‑date case law search.

The Act contains several provisions that create operational traps or non‑obvious consequences for agencies, Accountable Officers and decision‑makers. These are practical “gotchas” drawn from the text and its mechanics.

Central Holding Authority pre‑eminence and exceptions

All receipts are credited to the Central Holding Authority unless another Act requires them to be credited to an Operating Account or Accountable Officer’s Trust Account (s 5(1)). Money must not be paid out of the Central Holding Authority except as authorised under an Appropriation Act, this Act or another Act (s 5(2)). Yet s 30 allows payments for investment and repayment of principal without appropriation. Practitioners must ensure that apparent exceptions are properly authorised and documented; otherwise, payments could lack clear appropriation authority.

Treasurer’s Advance ceiling and tabling formalities

The Administrator may increase the appropriation to the Treasurer’s Advance only if funds in the Central Holding Authority will be in excess of requirements and the increase is limited to the lesser of the excess funds or 5% of total appropriations (s 19(1)-(1A)). The Treasurer must table the reasons and amounts within 6 sitting days after an increase (s 19(4)). Failure to table may create political or parliamentary challenges; operational teams must schedule prompt tabling.

Budget commitment rules and revenue reliance exception

Accountable Officers must not commit money that would result in exceeding the Agency’s final approved budget (s 14(4)), but they may do so if they reasonably believe the Agency will receive revenue equal to or greater than the excess (s 14(5)). This creates a reliance path where expected revenue permits over‑commitments, but the “reasonable grounds” standard requires documented revenue forecasting and risk controls.

Treasurer’s Directions are binding and operationally broad

Treasurer’s Directions bind Accountable Officers and employees (s 38(2)). Operational compliance depends on reading and implementing these Directions, which may specify accounts to be kept (s 6(5), s 7(4)), non‑cash items and other accounting practice. Failure to conform to Directions is a statutory breach even though the Act itself does not specify criminal penalties for every breach.

Investment counterparty and instrument restrictions

The Treasurer must not invest except in specified classes (s 29(2)). For corporate issuers and capital market instruments, minimum credit ratings specified by the Treasurer and published by an approved credit rating agency are required (s 29(2)(c)-(d)). If agencies treat such investments as routine, they must ensure counterparty credit ratings meet the Treasurer’s published standards.

Delegation exclusions and signature requirements

The Act permits delegation in writing but excludes the power to delegate itself, the power to make regulations, and powers related to investigation or detection of offences (s 39(1), (4)). Guarantee or indemnity instruments must be signed by the Treasurer unless the Treasurer agrees otherwise (s 34(2)). Accountable Officers must ensure delegations are properly documented and that signature requirements for guarantees are observed.

Lapse of appropriation

Appropriations lapse at year’s end (s 24). Agencies that rely on any unspent balances must plan transfers or seek replenishment before year end, or risk cessation of authority to spend.

Ex gratia and write‑off reporting

The Treasurer may make ex gratia payments and write off losses (ss 35-37), but must report these in the annual financial statement (s 9(3)). Significant write‑offs or ex gratia payments will be visible in public accounts and subject to audit scrutiny.

NHFP carve‑outs and account exceptions

Section 27(7) excludes NHFP Act accounts from s 27 (official bank account rules). Agencies working with NHFP funds must align NHFP requirements with Financial Management Act obligations where the Act allows reliance on NHFP records (ss 13(5), 15(3)) and avoid duplicative processes that may create reconciliation issues.

Limited statutory penalties , reliance on regulations and other laws

The Act delegates penalty‑setting largely to Regulations (s 41) with a cap of 50 penalty units. Lack of explicit offence provisions for some operational breaches means enforcement actions may be administrative rather than criminal. Practitioners should check subordinate legislation and other statutes for specific sanctions.

Payments without appropriation

Section 30 permits payments for investment and repayment of principal without appropriation. That can change the apparent link between parliamentary appropriation oversight and cash operations; practitioners must record and report such transactions diligently to maintain transparency and auditability.

Tabling deadlines and parliamentary sitting timing

Several tabling requirements trigger within “6 sitting days” or within four months of year end (ss 9(1), 9(1A), 19(4), 19A(5), 20(2), 21(3)). If the Legislative Assembly is not sitting when a statement is publicly released, the statement must be tabled when the Assembly next sits (ss 9(1A), 10(5), 11(5)). Agencies and Treasury must coordinate to ensure timely public tabling and avoid non‑compliance with statutory timing.

These “gotchas” are operational, not merely theoretical. They affect who can lawfully spend, where funds must be recorded, when political and parliamentary oversight is engaged, and how investment and guarantee decisions must be documented.

This section sets out a practical, source‑grounded compliance checklist for Accountable Officers, Agency finance teams, and Treasury staff. Each compliance step references the statutory source provision so that actions can be matched to the Act.

Understand account architecture and receipts

Ensure all receipts are credited correctly: by default to the Central Holding Authority unless another Act requires an Operating Account or Accountable Officer’s Trust Account (s 5(1)). Where funds are credited to Operating Accounts, document the basis (s 6(2)).

Do not commit or spend without authority

Commit money only as Accountable Officer or by someone acting under your authority (s 14(1)). Before committing, be satisfied that funds will be available when payment falls due (s 14(2)-(2A)). Document the basis for satisfaction, especially where relying on expected revenue under s 14(5).

Maintain proper records and internal controls

Maintain accounts and records in the form specified in Treasurer’s Directions (ss 6(5), 7(4), 38(1)). Issue and maintain an accounting and property manual for staff guidance (s 16). Establish internal controls consistent with the Act’s internal control definition (s 3(1) internal control subparagraphs (a)-(e)).

Build and report internal audit capacity

Ensure adequate internal audit capacity and report internal audit outcomes promptly to the Accountable Officer (s 15(1)-(2)). Where NHFP accounts apply, coordinate reliance on NHFP records per s 15(3).

Follow Treasurer’s Directions and delegations

Read and implement Treasurer’s Directions; they are binding on Accountable Officers and employees (s 38(2)). Where delegations are made, ensure they are in writing and do not attempt to delegate excluded powers (s 39(1), (4)).

Budget compliance and approvals

Monitor the Agency’s final approved budget, ensure commitments do not exceed that budget (s 14(4)). If excess commitment is proposed relying on expected revenue, prepare robust, documented revenue forecasts and risk assessments to meet the “reasonable grounds” standard (s 14(5)). If expenditure may be eligible for the Treasurer’s Advance, check Treasurer’s Directions for eligibility criteria (s 14(6)).

Banking operations and restrictions

Open official bank accounts only with Treasurer authority and with an ADI for the Northern Territory Government Account (s 27(1)-(1A)). Ensure receipts are banked daily or at Treasurer‑directed intervals (s 27(5)). Withdrawals from official bank accounts must follow Treasurer’s Directions (s 28).

Investments and counterparty checks

Before investing official funds, confirm whether money is available for investment and ensure investments are limited to permitted classes (s 29(1)-(2)). Check minimum credit ratings as published by the Treasurer for corporate counterparties (s 29(2)(c)-(d)). For any “other investments” determined by the Treasurer, monitor the requirement for tabling such determinations (s 29(3)).

Lending, borrowing and derivatives procedures

Obtain appropriate authorisation for lending and review loan records and repayment schedules regularly (s 31(2)-(4)). Ensure borrowing on public credit is authorised by law (s 32(2)) and that all funds raised are paid into an official bank account (s 32(4)). Where derivatives or hedging transactions are used, verify they comply with s 33 and any Treasurer guidance on terms and counterparties.

Guarantees, indemnities and signature protocols

Guarantees or indemnities require Ministerial opinion that the Territory would benefit and the Treasurer’s agreement (s 34(1)). Instruments must be signed by the Treasurer unless the Treasurer agrees to another signatory (s 34(2)). Ensure legal and Treasury sign‑off before execution.

Losses, waivers and ex gratia payments

Escalate potential irrecoverable amounts, losses, or requests for waiver to Treasury early, as the Treasurer has exclusive power to write off or waive and to authorise gifts (s 35). For ex gratia payments ensure special circumstances arose in government business and verify lawful availability of funds before directing payments (s 37(1)-(2)). Record these transactions fully for inclusion in the annual financial statement (s 9(3)).

Financial statements, audit and tabling deadlines

Prepare quarterly and annual statements according to Treasury templates and timelines (ss 8-9). For annual statements, allow four months post-year end for preparation and tabling; if the Legislative Assembly is not sitting at publication, table when it next sits (s 9(1), (1A)). Government Business Divisions must prepare statements within two months or another period determined by the Treasurer and submit them to the Auditor‑General (s 10(1), (3)). For other directed statements, comply with Treasurer directions and audit requirements (s 11).

Documentation for transfers and increases

If a transfer of appropriation or increase to the Treasurer’s Advance is proposed, prepare the required written direction and supporting reasons for tabling within statutory timeframes (ss 19(4), 20(2), 21(3), 19A(5)). Ensure documentation demonstrates necessity for administration and compliance with statutory caps (s 19(1A)).

Reconciliation with NHFP and other statutory accounts

Where NHFP accounts are involved, reconcile practices with NHFP statutory requirements and rely on NHFP records as appropriate (s 13(5), s 15(3)). Check that s 27(7) exclusions for NHFP accounts are followed in bank account administration.

Regulatory compliance and penalties

Check the Regulations under s 41 and any instrumentmaking under Treasurer’s Directions for specific procedural or penalty obligations; the Act permits regulations to prescribe detailed accounting, custody, disposal, stocktaking, inspection and penalty rules.

Practical operational checklist for an Accountable Officer before committing funds:

Verify appropriation and Purpose authorisation (s 5(2), s 18).
Confirm operating account balance or Central Holding Authority availability (s 14(2), 14(2A), s 6(4)).
Check whether the expenditure would cause the Agency to exceed its final approved budget or whether revenue forecasts justify excess (s 14(4)-(5), s 14(7) definitions).
Ensure compliance with Treasurer’s Directions and internal approvals/delegations (s 38, s 39).
Document the decision, retain supporting records and prepare to report to internal audit and the Auditor‑General as required (ss 15, 10-11).

Following these steps aligns operational practice with the statutory architecture and ensures that financial actions are auditable, transparent and legally defensible under the Financial Management Act 1995.

Financial Management Act 1995

Plain English Summary

Deep Dive

What it does

Current sections

Financial Management Act 1995

Source text: opening excerpt

1 Financial Management Act 1995

Main concepts

Who it affects

Key duties and rights

Penalties and enforcement

How it interacts with other laws

Amendment history

Litigation history

Gotchas

How to comply