February 2008 report to the Legislative Assembly
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Northern Territory. Auditor-General's Office -- Periodicals; Finance, Public -- Northern Territory -- Accounting -- Periodicals; Northern Territory -- Appropriations and expenditures -- Periodicals
Northern Territory Auditor-General's Office
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44 Auditor-General for the Northern Territory February 2008 Report Analysis of the Treasurers Annual Financial Statement cont From the table shown above, 2006-07 saw: An improvement in the total public sector net debt position, primarily as a result of a strong increase in the level of investments, loans and placements, with the movements in other components also contributing to the improvement. A decline in net financial worth, due largely to the increase in the value of unfunded superannuation liabilities. An increase in net worth as a result of the increase in the net carrying amounts of non-financial assets. Some care needs to be exercised when considering the net worth and net financial worth of the General Government sector as one of the most material assets consists of equity the value of the reported net assets of the Public Non-Financial Corporations (PNFC) Sector and the Public Financial Corporations (PFC) Sectors that are deemed to be controlled by the General Government Sector through the Central Holding Authority. The value of this asset class at 30 June 2007 was $1,069.9 million. This asset is, in the case of the PNFC Sector, essentially illiquid and its underlying value to the General Government Sector is ultimately dependant upon the value of the dividend and tax equivalent payments received by the General Government Sector. For 2006-07, the General Government sector received $16.7 million by way of dividends ($28.4 million in 2005-06) and $24.0 million by way of tax equivalent payments ($22.1 million in 2005-06) from both the PNFC and PFC sectors. The Central Holding Authority The Governments Budget is framed around a set of principles that are sometimes referred to as the purchaser-provider model. Under this approach, Ministers are deemed to purchase outputs from agencies so as to achieve a set of higher order outcomes determined by the Government. The Government is also viewed as the owner of, and lender to, agencies and, in that capacity, makes equity advances and loans to agencies. From an accounting perspective the various roles of purchaser and funder are performed by the Central Holding Authority (CHA) and the relationship between the CHA and agencies is depicted in Figure 9.