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Legislative Assembly for the ACT: 1997 Week 7 Hansard (26 June) . . Page.. 2330 ..

This includes cash management, accordingly subclause 34A will allow closing balances in Departmental Bank Accounts (whether positive or negative) to be carried forward at the end of each financial year.

If the balance is positive, it should be made available for expenditure without further appropriation. If the balance is negative, the department will be required to implement a strategy, as soon as possible, to deal with the overdraft.

This amendment will encourage Departments to manage the balance of the departmental bank account. There will be a greater tendency to see departmental budget management as a longer-term issue (including the accumulation of savings or the management of debt where appropriate).

Departmental Bank Accounts may have notionally high account balances and the Departments have an expectation of earning interest on those balances. However, the Financial Management Act, in its current form, prevents this from occurring because it only allows the Central Financing Unit (CFU) to pass on interest earned in the Territorial Bank Account. Clause 10 will address this anomaly and further encourage more efficient cash management.

The Financial Management Act does not address the issue of unclaimed Trust moneys. The amendment at subclause 53A allows money that is unclaimed after 6 years to be swept from Departmental Trust Accounts to the Territory Bank Account.

It also contains a provision which allows the Territory to repay money to the Trustee if a proven claim for the money is received.

In addition, subclauses 53B and C provide a mechanism for appeal to the Administrative Appeals Tribunal.

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