Financial Management of Parliament Bill B 742008

1
Financial Management of Parliament Bill B
742008 Briefing to Select Committee of
Finance 22 October 2008
2
Interpretation and Objects

• Definitions
• Objects of Act
• Transparency, accountability, sound management
• Consultative relationship with NT
• Oversight
• Norms and standards for provincial legislatures

3
Oversight, Executive Authority and Administration
of Act

• Joint committee
• Executive Authority
• Secretary to Parliament is Accounting Officer
• Accountable to Executive Authority
• Subject to oversight by joint committee
• General financial management functions
• Written performance agreement
• Acting accounting officer appointed by Executive
  Authority
• System of delegation
• Fiduciary duties

4
Planning and Budgeting

• Accounting Officer prepares
• Strategic plan
• Annual performance plan
• Annual budget
• Executive Authority tables for referral to joint
  committee
• Expenditure before annual budget is passed
• Unauthorised expenditure
• Virement Executive Authority may make
  regulations
• Unspent funds

5
Cash management and investment

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

6
Financial management

• Asset and liability management
• Revenue management
• Debtor management policy for write-off and
  interest
• Expenditure management creditors
• Method of payment
• Within 30 days of receiving invoice
• Accounts closed monthly and reconciled
• Regulations by Executive Authority for support to
  Members and political parties
• Transfers
• Executive directives with financial implications

7
Supply chain management

• Executive Authority prescribe policy Accounting
  Officer implements
• Consideration of unsolicited offers only in terms
  of policy
• Tenders not recommended
• Prohibition on contracts
• Schedule 3 peremptory

8
Audit committee and internal audit

• Audit Committee appointed by Executive Authority
• Audit charter
• Accounting Officer must establish and internal
  audit unit which must report quarterly on its
  performance against the audit plan

9
Reporting and auditing

• Monthly, quarterly, and mid-year
• Annual report
• Based on performance plan
• Annual financial statements
• Auditor-Generals report
• Audit Committees report
• Tabled and referred to joint committee

10
Other

• Regulations and instructions
• Financial misconduct
• Offences
• Repeal of legislation
• Commencement also transitional arrangements in
  Schedule 4

11
Applicability to provincial legislatures

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

12
Code of Ethics for Executive Authority

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