Territory Stories

Debates Day 4 - Tuesday 20 August 2002



Debates Day 4 - Tuesday 20 August 2002

Other title

Parliamentary Record 6


Debates for 9th Assembly 2001 - 2005; ParliamentNT; Parliamentary Record; 9th Assembly 2001 - 2005




Made available by the Legislative Assembly of the Northern Territory





Publisher name

Legislative Assembly of the Northern Territory

Place of publication


File type



Attribution International 4.0 (CC BY 4.0)

Copyright owner

Legislative Assembly of the Northern Territory



Parent handle


Citation address


Page content

DEBATES - Tuesday 20 August 2002 Madam Speaker, I commend the bills to honourable members. Debate adjourned. FINANCIAL MANAGEMENT AMENDMENT BILL (Serial 88) Bill present and read a fhst time. Ms MARTIN (Treasurer): Madam Speaker, I move that the bill be now read a second time. The Financial Management Act was introduced in 1995 and has undergone a number of minor amendments since that time, generally to aid administrative efficiency in financial management practices. The amendments contained in this bill are of greater substance and are designed to give authority to key aspects of the Working for Outcomes fiamework. As members are aware, Working for Outcomes is the new financial and performance management fiamework currently being implemented across government agencies and is the most significant program of financial reform since the introduction of the Financial Management Act. The new fiamework represents a major shift in focus in the way in which agencies receive appropriation and the way in which agencies are accountable for theh performance in delivering services to the community. The fiamework is also fundamentally different from the existing cash-based input-focussed framework in the current Financial Management Act. The new framework will commence for the 2002-03 financial year and will be implemented in stages over a number of years. This bill therefore represents the first in a series of amendments that will be requhed to provide legislative authority for Working for Outcomes. The Financial Management Act currently recognises only one type of appropriation in the form of allocation to an activity. Further, the term allocation is defined in relation to gross expenditure which means that agencies can only spend agency revenue if they have obtained the appropriate allocation coverage, and are requhed to seek approval for additional allocation if agency revenue increases. Compared with the current act, there are three fundamental differences in the way in which appropriation is provided to agencies under the Working for Outcomes framework. First, separate categories of appropriation for agencies designed as either being outputs or capital purposes; second, appropriation at a whole-of-agency level; and third, output appropriation net of agency revenue. In order to reflect the changed appropriation arrangements in the act, the bill contains amendments to introduce the concept of purpose which relates to a purpose of funding. This concept provides a mechanism to enable the classification of appropriation into separate categories. The two categories of appropriation that will apply to agencies are output appropriation and capital appropriation. Additionally, the bill modifies the definition of allocation to redefine appropriation in relation to funding from the Central Holding Authority rather than in the context of gross agency expenditure and to delete the reference to activity. These changes facilitate provision of appropriation net of agency revenue and at the whole-of-agency level. Flowing from these changes, the bill makes consequential amendments to other definitions and sections in the act, to delete reference to activity and incorporate the concept of purpose. The changed appropriation arrangements also necessitate changes to the budget variation processes prescribed in the act. In particular, the draft bill replaces the current requhements relating to transfers between activities with more contemporary provisions that focus on appropriation purpose and agencies in prescribing requhements for budget variation processes. As indicated, the bill also introduces the Working for Outcomes concept of a Central Holding Authority. The Central Holding Authority is the name of the parent body that will supercede and replace the consolidated revenue account as the central pool of funds from which appropriation payments, approved by parliament, by the Appropriation Act, will be paid to agencies. In addition, the Central Holding Authority will make whole-of-govemment payments such as superannuation and interest on the Territorys borrowings. Given the Central Holding Authoritys specific and unique role and limited functions, it is not appropriate for it to be created as an agency. However, it is necessary for accountability and control reasons, that payments from the Central Holding Authority are authorised in much the same way that payments made by an agency are authorised by an accountable officer. 2163

Aboriginal and Torres Strait Islander people are advised that this website may contain the names, voices and images of people who have died, as well as other culturally sensitive content. Please be aware that some collection items may use outdated phrases or words which reflect the attitude of the creator at the time, and are now considered offensive.

We use temporary cookies on this site to provide functionality.
By continuing to use this site without changing your settings, you consent to our use of cookies.