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Legislative Assembly for the ACT: 1997 Week 7 Hansard (26 June) . . Page.. 2329 ..

Clause 5, will amend the Financial Management Act to include these important principles in law.

Clause 6 and 7 deal with transfers of funds between and within appropriations. The Act currently contains a 3% threshold limit.

Amounts being transferred above the threshold and between appropriations must be tabled in the Assembly. Amounts being transferred above the threshold, but within appropriations, are approved by the Treasurer by instrument tabled in the Assembly.

This amendment proposes to change the materiality threshold to 5% which is in accordance with generally accepted accounting practice.

The Financial Management Act is intended to facilitate a framework in accordance with generally accepted accounting practice and this change will ensure it aligns more closely to the Australian Accounting Standards particularly with regard materiality.

Where an appropriation has been classified as Territorial money in error and is properly controlled and related to departmental outputs, there is currently no provision in the Financial Management Act to correct this error.

There is also no provision to correct an error when appropriations are related to departmental outputs but should have been classified as Territorial moneys.

The amendment in subclause 15A provides that the Treasurer, may by instrument tabled in the Assembly, correct these errors.

Mr Speaker, a critical aspect of our financial management reform is to enhance decision making and accountability to the Assembly and community by making Agency Heads through their Ministers responsible for the services that they provide to the Government on behalf of the community.

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