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Budget 2011-12 Budget Paper No.3 The Budget



Budget 2011-12 Budget Paper No.3 The Budget

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Tabled paper 1279


Tabled Papers for 11th Assembly 2008 - 2012; Tabled Papers; ParliamentNT




Tabled By Delia Lawrie


Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.




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2 Overview manage resources. Budget Paper No.3 covers agencies and government business divisions that are subject to the FMA and included in the Territorys budget sector. The FMA provides the rules that govern the monitoring and management of the budgets for each agency and government business division during the year. In this regard, the FMA specifies accountability and approval requirements for budget variations in situations where unforeseen circumstances arise during the year, or where Government functions are redistributed between agencies. The FMA also specifies agency and government business division internal control requirements, asset safeguarding, financial transaction and bank account rules, and financial reporting obligations. The Power and Water Corporation is not included in Budget Paper No.3. It is a government owned corporation and is subject to the financial provisions of the Government Owned Corporations Act, not the FMA. For reference, a list of Northern Territory Government Ministers and their respective Ministerial portfolios, as they apply from 1January 2011, is provided at the end of this overview. Financial Management Framework The Territorys financial management framework is based on outputs and the accrual methodology for budgeting, accounting and reporting, with performance management as a central tenet. The use of an accrual outputbased framework ensures the Territorys financial management systems are contemporary and consistent with the frameworks of other jurisdictions across Australia. Agencies Outputs and Key Deliverables The framework provides a uniform approach for the 201112 Budget and reflects agency output structures and key deliverables, including modifications made to align changes in functions and activities as a result of administrative rearrangements during 201011. The main change was the restructure of the Department of Health and Families into two new agencies, the Department of Health and the Departmentof Children and Families. For those agencies where changes have been made, the 201011 Budget and Estimate have been backcast to 1July2010 to enable comparisons with the 201112 Budget. Each output includes a series of key deliverables, with measures established to enable an assessment of performance. Agency annual reports will record actual performance against the estimates published in BudgetPaperNo.3 and will provide explanations of significant variations. Government Businesses Business Lines and Performance Although government business divisions (GBDs) are expected to operate on a commercial basis, they remain subject to the financial framework and accountabilities contained in the FMA, with the chief executive officer of a GBD accountable to the responsible Minister for financial performance. Commercial practices that have been implemented for GBDs are: the requirement to fully attribute costs and to be subject to similar government taxes (including tax equivalents), fees and charges as privately owned businesses; adoption of efficient pricing methods which account for costs;