Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698842747744.pdf (New Zealand)
Reprint as at 1 January 2014 Public Finance Act 1989 Public Act Date of assent Commencement 1989 No 44 26 July 1989 see section 1 Contents 1 1A 2 2A Title [Repealed] Short Title and commencement Purpose Interpretation Provisions affecting application of amendments to this Act Act to bind Crown 3 3AA Meaning of generally accepted accounting 3A 3AB 3B 3C practice [Repealed] Power to amend Schedule 4 Power to amend Schedule 4A Power to amend Schedule 5 to reflect name changes Power to amend Schedule 5 to restore company to State-Owned Enterprises Act 1986 Page 12 12 13 14 27 28 28 28 29 29 30 Note Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this reprint.
Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Treasury.
1 Public Finance Act 1989 Reprinted as at 1 January 2014 Part 1 Appropriations Requirement for appropriations Expenses or capital expenditure must not be incurred unless in accordance with appropriation or statutory authority Authority to incur expenses or capital expenditure under Imprest Supply Act Public money must not be spent unless in accordance with statutory authority Authority to spend public money Separate appropriation required for types of expenses and capital expenditure Responsibility for, and administration and use of, appropriations Appropriation limited by amount Appropriation limited by scope Supplementary Estimates [Repealed] Power of Secretary to obtain information [Repealed] Appropriation limited by period Expenses or payments authorised other than by Appropriation Act Timing of first Appropriation Bill for financial year Information requirements for appropriations Estimates and other supporting information must be presented with first Appropriation Bill Content of Estimates Other supporting information for first Appropriation Bill Supplementary Estimates must be presented with Supplementary Appropriation Bill Content of Supplementary Estimates Minister must consult on proposal to change format or content of information presented with Appropriation Bills Power of Secretary to obtain information Other provisions relating to appropriations Departments may incur output expenses for, or on behalf of, other departments [Repealed] Expenses restricted by revenue Operating surplus of department Net
 assets of departments must be confirmed 30 31 32 32 32 33 34 34 35 35 35 35 36 36 36 37 38 39 39 40 41 41 41 42 4 4A 5 6 7 7C 8 9 9A 9B Reprinted as at 1 January 2014 Public Finance Act 1989 24 25 26 26A Movements within departmental statement of financial position Expenses or capital expenditure may be incurred in emergencies Minister may determine terms and conditions of capital injections Transfer of resources between output expense appropriations 26C 26B
 Minister may approve expenses or capital expenditure to be incurred in excess of existing appropriation Expenses or capital expenditure incurred without appropriation or other authority requires validation by Parliament Reporting requirements in relation to expenses or capital expenditure incurred in excess of, or without, appropriation 26D Application of this Part to Offices of Parliament 26E Application of this Part to Offices of Parliament Part 2 Fiscal responsibility Preliminary 26F 26G 26H Interpretation Principles of responsible fiscal management Generally accepted accounting practice Fiscal strategy report Fiscal strategy report 26I Contents of fiscal strategy report: long-term objectives 26J 26K Contents of fiscal strategy report: short-term intentions 26KA Contents of fiscal strategy report: management of the Crown’s resources Contents of fiscal strategy report: other matters 26L 26M Budget policy statement Budget policy statement Statement on long-term fiscal position 26N Statement on long-term fiscal position 26NA Investment statement Investment statement 42 43 44 44 45 45 46 46 47 48 49 49 49 50 52 52 54 55 56 3 Public Finance Act 1989 Reprinted as at 1 January 2014 Economic and fiscal updates Economic and fiscal update Economic forecasts Fiscal forecasts Annual statement of tax policy changes Half-year economic and fiscal update Pre-election economic and fiscal update Disclosure requirements for economic and fiscal updates Disclosure of policy decisions
 and other circumstances that may influence future fiscal situation Limits on disclosure requirements 26O 26P 26Q 26R 26S 26T 26U 26V 26W Requirements for statement of responsibility Statement of responsibility 26X 26Y 26Z 27 28 29 29A 29B 30 31 Miscellaneous Certain statements and updates may be published in advance of presentation to House of Representatives Publication and availability of reports, statements, or updates Power of Secretary to obtain information Part 3 Reporting by Government reporting
 entity Annual financial statements of Government Half-year financial statements of the Crown [Repealed] Responsibility for annual financial statements of Government Power of Secretary to obtain information Auditor-General to be auditor of Government reporting entity Audit report Annual financial statements must be presented to House of Representatives and published 31A Monthly financial statements of Government 31B Publication, inspection, and purchase of financial statements of Government reporting entity [Repealed] Monthly cash flow statements [Repealed] Additional reports in relation to non-departmental appropriations 32 32A 4 56 57 57 59 59 60 61 62 63 64 65 65 66 68 68 69 70 70 70 71 73 73 73 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 4 Reporting by departments and departmental agencies Extended meaning of department for purpose of Part 4 Responsibilities of chief executives Responsibilities of chief executives: financial management of departmental matters Responsibilities of chief executives: financial management of non-departmental matters Responsibilities of chief executives: reporting Power of chief executives to obtain information Power of chief executives to obtain information Reporting requirements—Information on future operating intentions Departments must provide information on future operating intentions Obligation to present and publish information on future operating intentions Requirements for information on future operating intentions Extra information required for first financial year Special provisions in relation to annual financial statements of school Board of Trustees [Repealed] Special provisions in relation to annual financial statements of Boards under Reserves Act 1977 [Repealed] Draft statement of intent [Repealed] Contents of statement of intent [Repealed] Completed statement of intent [Repealed] Laying of statement of intent before House of Representatives [Repealed] Power of responsible Minister to require Crown entity to
 modify statement of intent [Repealed] Power of Crown entity to modify statement of intent [Repealed] Annual report of Crown entities named or described in Schedule 6 [Repealed] Information on future operating intentions must include statement of responsibility 33 34 35 36 37 38 39 40 41 41A 41B 41C 41D 41E 41F 41G 41H 41I 42 Reporting requirements—Annual reports 43 43A Departments must prepare annual reports Departmental agencies must prepare annual reports 74 75 75 76 76 77 78 79 80 81 81 81 81 81 81 81 82 82 82 82 83 5 Public Finance Act 1989 Reprinted as at 1 January 2014 Obligation to present and publish annual reports 44 45 Contents of departmental annual report 45AA Contents of departmental agency annual report 45A 45B 45C 45D Statement of service performance Annual financial statements Statement of responsibility Audit report 45E 45F 45G 45H 45I 45J 45K Miscellaneous Application of this Part to intelligence and security departments Application of this Part to Offices of Parliament This Part modified for purpose of applying Part to Offices of Parliament Part 5 Special reporting requirements Subpart 1—Special annual reporting requirements Application of subpart First annual report for newly established entities Final annual report for disestablished entities Final annual report for entities that cease to be subject to requirement to provide annual report 45L Minister may allow certain information to be included in another entity’s annual report if operations
 transferred Subpart 2—Application of Crown Entities Act 2004 to Schedule 4 organisations 45M Application of Crown Entities Act 2004 to Schedule 4 organisations Exemptions from certain sections of Crown Entities Act 2004 for Schedule 4 organisations Special provisions relating to Reserves Boards 45N 45O Part 5AAA Non-listed companies in which the Crown is majority or sole shareholder 83 85 86 86 87 87 88 88 90 91 92 92 93 94 94 95 97 97 45OA Application of Crown Entities Act 2004 to non-listed 98 companies
 in which the Crown is majority or sole shareholder 6 Reprinted as at 1 January 2014 Public Finance Act 1989 45P 45Q 45R 45S 45T 45U 45V Part 5A Mixed ownership model companies Preliminary provisions Definitions of mixed ownership model company and other terms Treaty of Waitangi (Te Tiriti o Waitangi) 51% Crown control Restriction on reduction of the Crown’s holding below 51% control 10% limit 10% limit on holdings by persons other than the Crown Effect of exceeding 10% limit Exemption from 10% limit for trustee corporations and nominee companies, etc Power of FMA to remove exemption from 10% limit for trustee corporations, nominee companies, etc Continuing application of certain provisions 100 101 101 102 102 103 104 45W Certain provisions of State-Owned Enterprises Act 1986 105 and other enactments continue to apply Part 6 Borrowing, securities, derivative transactions, investment, banking, and guarantees Subpart 1—Borrowing Limits on borrowing by the Crown 46 47 48 49 50 51 52 52A 53 The Crown must not borrow except under statute Minister may borrow on behalf of the Crown if in public interest Power to borrow must not be delegated The Crown not liable for debts of Crown entities, etc Appointment of borrowing agents Minister may appoint agents for purpose of borrowing money Appointment of borrowing agents does not prevent exercise of power by Minister Borrowings must be taken to be lawful Crown not to issue securities except under statute [Repealed] Borrowing agents
 may delegate powers 106 106 107 107 108 109 109 109 109 7 Public Finance Act 1989 Reprinted as at 1 January 2014 Terms and conditions of borrowing Minister may determine terms and conditions of borrowing Charge on public revenues Power to borrow by issue of series of similar securities Power to vary borrowings of the Crown Conversion of money borrowed by the Crown Authority for the giving by the Crown of guarantees and indemnities [Repealed] Minister may appoint underwriters, managers, etc, for borrowings
 of the Crown Payments relating to borrowings Payment of principal and interest on money borrowed by the Crown Expenses in respect of money borrowed by the Crown Subpart 2—Securities Limits on the Crown issuing securities The Crown must not issue securities except under statute Minister may issue securities for money borrowed by the Crown Issue or variation of security taken to be lawful 54 55 56 57 58 58A 59 60 61 62 63 64 Terms and conditions of securities 65 65A 65B 65C Securities must be in name of Sovereign Power to vary public securities Issue of new public security on loss, damage, or destruction of public security Execution of securities Payments relating to securities 65D 65E Payments under public securities Expenses in respect of securities Subpart 3—Derivative transactions Limits on the Crown entering into derivative transactions The Crown must not enter into derivative transactions 65F 65G Minister may enter into derivative transactions if in public interest Payments relating to derivative transactions Payments relating to derivative transactions of the Crown 65H 110 110 110 111 111 111 111 112 113 114 114 114 115 115 116 116 116 117 118 118 118 8 Reprinted as at 1 January 2014 Public Finance Act 1989 Subpart 4—Investment Investment of public money 65I 65J Investment of public money Payment of expenses relating to investment Limits on lending by the Crown The Crown must not lend money except under statute 65K 65L Minister may lend money to persons or
 organisations if in public interest 65M Minister may lend money to foreign government 65N Authority to lend money includes authority to defer payments [Repealed] Repayment of money lent by the Crown Appropriation required for lending Securities relating to lending must be in name of Sovereign 65O 65P 65Q Subpart 5—Banking Crown Bank Accounts 65R Crown Bank Accounts 65S 65T 65U 65V Departmental Bank Accounts Departmental Bank Accounts Directions relating to operation of Departmental Bank Accounts General Payment
 into Bank Accounts Requirements for payment of money out of Bank Accounts 119 119 120 120 120 121 121 121 121 122 122 123 123 124 65W Powers of Minister or Treasury in relation to Crown Bank 124 65X 65Y 65Z Account and Departmental Bank Account Statement of accounts must be sent to Treasury or Auditor-General Treasury must report on all expenses and capital expenditure incurred with or without appropriation or other statutory authority Auditor-General may direct Ministers to report to House of Representatives in cases involving unlawful expenses, etc 65ZA Auditor-General may stop payments out of Bank Accounts 65ZB Application of this subpart to Offices of Parliament 125 125 126 127 128 9 Public Finance Act 1989 Reprinted as at 1 January 2014 Subpart 6—Guarantees and indemnities Limits on giving by the Crown of guarantees and indemnities 65ZC Guarantee or indemnity by the Crown must not be given except under statute 65ZD Minister may give guarantee or indemnity if in public interest 65ZE Departments may give guarantee or indemnity specified in regulations if in public interest Other provisions relating to guarantees and indemnities 65ZF Recovery of money paid under guarantee 65ZG Payments in respect of guarantees or indemnities Part 7 Trust money 66 67 68 69 70 Trust money Establishment of bank accounts for trust money Investment of trust money Payment of interest on trust money Unclaimed trust money Part 7A Security and intelligence departments [Repealed] 70A
 Interpretation [Repealed] Appropriations [Repealed] 70B 70C Nature of appropriation required [Repealed] Estimates [Repealed] Banking and investment [Repealed] Departmental Bank Accounts [Repealed] Payment into Bank Accounts [Repealed] Power of Minister or Treasury in relation to Crown Bank Account and Departmental Bank Account [Repealed] Reporting [Repealed] Annual financial statements [Repealed] Half-yearly financial statements [Repealed] Tabling of financial statements [Repealed] Information to be provided to
 Treasury [Repealed] 70D 70E 70F 70G 70H 70I 70J 10 129 129 129 130 131 131 132 132 133 133 134 134 134 134 134 134 135 135 135 135 Reprinted as at 1 January 2014 Public Finance Act 1989 70K Treasury instructions [Repealed] Part 8 General provisions 72 73 71AA Delegation of Secretary’s powers 71 Payments on behalf of governments and international organisations Payments on behalf of local authorities Payment of fines to local authorities and other organisations that conduct prosecutions Unclaimed money Minister may exercise powers relating to bona vacantia Offences Penalties for offences Time for commencing proceedings Information to be provided to Treasury Treasury instructions 74 75 76 77 78 79 80 80A Minister of Finance instructions 81 82 Regulations, Orders in Council, and notices Consultation and approval requirements for regulations or instructions relating to reporting standards Abolition of certain accounts [Repealed] Registration of public securities, local authority stock, and other stock Government stock in United Kingdom [Repealed] Consequential amendments [Repealed] Repeals [Repealed] Application, savings, and transitional provisions relating to amendments to Act 83 84 85 86 87 88 Schedule 1 Application, savings, and transitional provisions relating to amendments made to Act after 1 January 2013 Schedule 2 Enactments repealed [Repealed] Schedule 3 Liabilities, and categories of liabilities, not included in definition of contingent liability [Repealed] 135 135
 136 136 137 138 138 139 140 141 141 142 142 144 147 148 148 148 149 149 149 150 155 155 11 Public Finance Act 1989 Reprinted as at 1 January 2014 Schedule 4 Organisations for the purposes of subpart 2 of Part 5 Schedule 4A Non-listed companies in which Crown is majority or sole shareholder Schedule 5 Mixed ownership model companies Schedule 6 Crown entities required to prepare statements of intent [Repealed] Schedule 7 Crown entities subject to section 16 [Repealed] 156 159 159 160 160 Title [Repealed]
 Title: Amendment Act 2004 (2004 No 113).
repealed, on 25 January 2005, by section 3 of the Public Finance 1 (1) (2) Short Title and commencement This Act may be cited as the Public Finance Act 1989.

Except as provided in this section, this Act shall be deemed to have come into force on 1 July 1989.

(3) [Repealed] (3A) [Repealed] (4) The amendment to section 19 of the Goods and Services Tax Act 1985 specified in Schedule 1 shall come into force on the day this Act receives the Royal assent.
(5) Where any document is made or thing is done, pursuant to the Public Finance Act 1977, during the period commencing on 1 July 1989 and ending with the day before the day on which this Act receives the Royal assent, such document or thing, if capable of being made or done under the provisions of this Act, shall be deemed to have been made or done pursuant to the provisions of this Act.

Section 1(2): substituted, on 5 March 1991, by section 2 of the Public Finance Amendment Act 1991 (1991 No 6).
12 Reprinted as at 1 January 2014 Public Finance Act 1989 s 1A Section 1(3): repealed, on 1 July 1994, by section 2 of the Public Finance Amendment Act 1994 (1994 No 18).

Section 1(3A): repealed, on 1 July 1994, by section 2 of the Public Finance Amendment Act 1994 (1994 No 18).

1A Purpose (1) (2) The purpose of this Act is to consolidate and amend the law governing the use of public financial resources.
To that end, this Act— (a) provides a framework for parliamentary scrutiny of— (i) (ii) the Government’s expenditure proposals; and the Government’s management of its assets and liabilities; and (b) (c) (d) (e) (ea) (f) establishes lines of responsibility for effective and effi- cient management of public financial resources; and specifies the principles for responsible fiscal manage- ment in the conduct of fiscal policy and requires regular reporting on the extent to which the Government’s fis- cal policy is consistent with those principles; and specifies the minimum financial and non-financial re- porting obligations of Ministers, departments, depart- mental agencies, Offices of Parliament, Schedule 4 or- ganisations, and Schedule 4A companies; and provides for the application of financial management in- centives and for the accountability of Schedule 4 organ- isations and Schedule 4A companies; and places limits on the ownership of the companies named in Schedule 5; and safeguards public assets by providing statutory author- ity and control for the— (i) (ii) (iii) (iv) (v) (vi) borrowing of money; and issuing of securities; and use of derivative transactions; and investment of funds; and operation of bank accounts; and giving of guarantees and indemnities.
Section 1A: inserted, on 25 January 2005, by section 4 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 1A(2)(d): amended, on 18 July 2013, by section 4(1) of the Public Finance Amendment Act 2013 (2013 No 50).

13 s 2 Public Finance Act 1989 Reprinted as at 1 January 2014 Section 1A(2)(d): amended, on 18 July 2013, by section 4(2) of the Public Finance Amendment Act 2013 (2013 No 50).
Section 1A(2)(e): amended, on 18 July 2013, by section 4(3) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 1A(2)(ea): inserted, on 30 June 2012, by section 4 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).
Interpretation In this Act, unless the context otherwise requires,— annual financial statements of the Government means the annual consolidated financial statements for the Government reporting entity prepared under section 27 appropriation administrator,— (a) in relation to an appropriation made to the Crown, means the department that administers the appropri- ation on behalf of the appropriation Minister; and in relation to an appropriation made to an Office of Par- liament, means that Office of Parliament (b) appropriation Minister,— (a) in relation to an appropriation made to an Office of Par- liament, means the Speaker; and in relation to an appropriation administered by the Of- fice of the Clerk of the House of Representatives or the Parliamentary Service, means the Speaker; and in relation to any other appropriation, means the Minis- ter responsible for that appropriation (b) (c) asset means an asset that is defined, recognised, and measured in accordance with generally accepted accounting practice Auditor-General has the meaning given to it by section 4 of the Public Audit Act 2001 bank, in relation to a bank operating within New Zealand, means the Reserve Bank of New Zealand or a registered bank under the Reserve Bank of New Zealand Act 1989 benefit means an amount of public money provided by the Crown for the benefit of some person borrow money— includes— (a) 2 (1) 14 Reprinted as at 1 January 2014 Public Finance Act 1989 s 2 (i) (ii) (iii) entering into hire purchase agreements or agree- ments that are of the same or a substantially sim- ilar nature; and entering into finance lease arrangements or ar- rangements that are of the same or a substantially similar nature; and accepting debt on assignment from other per- sons; but does not include the purchase of goods or services on credit, or the obtaining of an advance, through the use of a credit card or by a supplier supplying credit for the purchase of goods or services, for a period of 90 days or less from the date the credit card is used or the
 credit is supplied (b) borrowing expenses means any interest or other financing ex- penses in respect of any loan or under any public security Budget means the Minister’s statement in moving the second reading of the first Appropriation Bill for a financial year capital expenditure means the costs of assets acquired or de- veloped (including tangible, intangible, or financial assets and any ownership interest in entities, but excluding inventories) carrying amount has the meaning given to it under generally accepted accounting practice category,— (a) in relation to expenses, means a grouping of similar or related expenses; and in relation to capital expenditure, means a grouping of similar or related items of capital expenditure (b) chief executive means,— (a) in the case of a department, the head of the department and includes a chief executive appointed under the State Sector Act 1988: in the case of a departmental agency, the person holding office under section 31 of the State Sector Act 1988 as the chief executive of the departmental agency: in the case of a Crown entity, the chief executive officer of the Crown entity: (aa) (b) 15 s 2 Public Finance Act 1989 Reprinted as at 1 January 2014 (c) in the case of an Office of Parliament, the head of the Office concerned (c) class of outputs or class means a grouping of similar outputs commitment means future expenses and liabilities to be in- curred on contracts that have been entered into at balance date company means a company within the meaning of the Com- panies Act 1993 Crown or the Sovereign— (a) means the Sovereign in right of New Zealand; and (b) includes all Ministers of the Crown and all departments; but does not include— (i) (ii) (iii) an Office of Parliament; or a Crown entity; or a State enterprise named in Schedule 1 of the State-Owned Enterprises Act 1986; or a Schedule 4 organisation; or a Schedule 4A company; or a mixed ownership model company Crown Bank Account means any of the bank accounts
 opened and maintained under section 65R Crown entity has the meaning given to it by section 7(1) of the Crown Entities Act 2004 department— (a) means— (i) (iv) (v) (vi) (ii) (iii) (iv) (v) (vi) a department (as defined in section 27A(1) and (2) of the State Sector Act 1988); or the New Zealand Defence Force; or the New Zealand Police; or the New Zealand Security Intelligence Service; or the Parliamentary Counsel Office; or the Office of the Clerk of the House of Represen- tatives; or the Parliamentary Service; but (vii) does not include— (i) a body corporate or other legal entity that has the power to contract; or (b) 16 Reprinted as at 1 January 2014 Public Finance Act 1989 s 2 an Office of Parliament (ii) departmental,— (a) (b) in relation to expenses, means expenses incurred by a department or an Office of Parliament; and in relation to capital expenditure, means capital expend- iture incurred by a department or an Office of Parlia- ment departmental agency has the meaning given in section 27A of the State Sector Act 1988 (see also section 27B of that Act) Departmental Bank Account means any of the bank ac- counts opened, maintained, and operated under section 65S departmental revenue means revenue generated by a depart- ment or an Office of Parliament resulting from the supply by the department or Office of goods, services, rights, or money to other parties, including the Crown derivative transaction means— (a) a transaction that is a rate swap transaction, swap option, basis swap, forward rate transaction, interest rate option, foreign exchange transaction, cap trans- action, floor transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction, currency option, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, credit protection transaction, credit swap, credit default swap, credit default option, total return swap, credit spread transaction, forward purchase or sale of
 a security, or commodity or other financial instrument or interest (including an agreement or option that relates to any of these transactions); or a transaction that is similar to any transaction referred to in paragraph (a) that— (i) is currently, or in the future becomes, recurrently entered into in the financial markets; and is a forward, swap, future, option, or other derivative on 1 or more rates, currencies, com- modities, equity securities or other equity instru- ments, debt securities or other debt instruments, economic indices or measures of economic risk or value, environmental or climatic variable, or (ii) 17 (b) s 2 Public Finance Act 1989 Reprinted as at 1 January 2014 other benchmarks against which payments or deliveries are to be made Estimates means a statement in any form that— (a) describes and supports the appropriations being sought in the first Appropriation Bill that relates to a financial year; and (b) contains the information referred to in section 14 expenses means expenses measured in accordance with gen- erally accepted accounting practice; and includes costs financial year means a period of 12 months commencing on 1 July and ending with 30 June forecast financial statements means a set of statements that consists of— (a) (b) (c) (d) a forecast statement of financial performance; and a forecast statement of financial position; and a forecast statement of cash flows; and any other forecast financial statement required by gen- erally accepted accounting practice; and any other forecast financial statement required for a re- porting entity by any regulations made, or instructions issued, under this or any other Act (e) generally accepted accounting practice means— (a) (b) financial reporting standards (within the meaning of section 2 of the Financial Reporting Act 1993) so far as those standards apply to the Crown or the department or the Office of Parliament or the Crown entity, as the case may be: in relation to matters for which no
 provision is made in financial reporting standards (within the meaning of section 2 of the Financial Reporting Act 1993) and which are not subject to any applicable rule of law, accounting policies that— (i) are appropriate in relation to the Crown or the de- partment or the Office of Parliament or the Crown entity, as the case may be; and have authoritative support within the accounting profession in New Zealand (ii) 18 Reprinted as at 1 January 2014 Public Finance Act 1989 s 2 Government means the Executive Government of New Zealand Government reporting entity means— (a) (b) the Sovereign in right of New Zealand; and the legislative, executive, and judicial branches of the Government of New Zealand host department, in relation to a departmental agency, has the meaning given in section 27A(1) and (2) of the State Sector Act 1988 impact means the contribution made to an outcome by a spe- cified set of outputs, or actions, or both intelligence and security department means— (a) (b) lend money— (a) the New Zealand Security Intelligence Service; or the Government Communications Security Bureau includes— (i) deferring payment for any goods or services sup- plied or works constructed for any person, organ- isation, or government; and entering into hire purchase agreements or agree- ments that are of the same or a substantially sim- ilar nature; and entering into finance lease arrangements or ar- rangements that are of the same or a substantially similar nature; but (ii) (iii) (b) does not include selling or supplying goods or services on credit for a period of 90 days or less from the date the credit is supplied liability means a liability that is defined, recognised, and mea- sured in accordance with generally accepted accounting prac- tice local authority means a local authority within the meaning of the Local Government Act 2002 Minister means the Treasurer, or other Minister of the Crown who, under the authority of any warrant or with the authority of the Prime
 Minister, is for the time being responsible for the administration of this Act or particular provisions of this Act 19 s 2 Public Finance Act 1989 Reprinted as at 1 January 2014 mixed ownership model company has the meaning set out in section 45P multi-class output expense appropriation has the meaning given to it by section 7(3)(b) non-departmental,— (a) in relation to expenses, means expenses incurred on be- half of the Crown, other than by a department or an Of- fice of Parliament; and in relation to capital expenditure, means capital expend- iture incurred on behalf of the Crown, other than by a department or an Office of Parliament (b) Office of Parliament means the Parliamentary Commissioner for the Environment (and that Commissioner’s office), the Of- fice of Ombudsmen, and the Auditor-General operating surplus means the amount by which departmental revenue exceeds the expenses of a department other expenses means any expenses incurred by the Crown, a department, or an Office of Parliament that are other than— (a) (b) (c) outcome— (a) means a state or condition of society, the economy, or output expenses; or benefits or other unrequited expenses; or borrowing expenses the environment; and includes a change in that state or condition (b) output expenses— (a) includes the full cost of producing and supplying out- puts measured in accrual accounting terms; and includes the full allocation of overhead costs (b) outputs— (a) means goods or services that are supplied by a depart- ment, Crown entity, Office of Parliament, or other per- son or body; and includes goods or services that a department, Crown entity, Office of Parliament, or other person or body has agreed or contracted to supply on a contingent basis, but that have not been supplied (b) 20 Reprinted as at 1 January 2014 Public Finance Act 1989 s 2 permanent legislative authority,— (a) in relation to incurring expenses or capital expenditure, means an express authority given by or under an Act other
 than an Appropriation Act to incur expenses or capital expenditure without further appropriation (see, for example, section 65H(2), which relates to certain fi- nance expenses, and section 9 of the Ombudsmen Act 1975, which relates to salaries and allowances of Om- budsmen); and in relation to spending public money, means an ex- press authority given by or under an Act to spend public money without further authority (see, for example, sec- tion 6) (b) principles of responsible fiscal management has the mean- ing given to it by section 26G(1) public money means all money received by or on behalf of the Crown, including the proceeds of all loans raised on behalf of the Crown, and any other money that the Minister or the Secretary directs to be paid into a Crown Bank Account or Departmental Bank Account and any money held by an Office of Parliament; but does not include money held in trust as trust money public security means any security issued under section 63 or any provision of any other Act; and includes any loan or credit agreement, guarantee, indemnity, bond, note, debenture, bill of exchange, Treasury bill, Government stock, and any other security representing part of the public debt of New Zealand remeasurements— (a) means revisions of prices or estimates that result from revised expectations of future economic benefits or obligations that change the carrying amounts of assets or liabilities; but does not include— (i) (b) revisions that result from transactions or events that give rise to the initial recognition of assets or liabilities in the reporting period; or revisions that result from transactions or events directly attributable to actions or decisions taken by the Crown; or (ii) 21 s 2 Public Finance Act 1989 Reprinted as at 1 January 2014 (iii) (iv) expenses that arise from the consumption of as- sets during the reporting period; or interest income or interest expenses responsible Minister means,— (a) in relation to an Office of Parliament, to the
 Office of the Clerk of the House of Representatives, or to the Parliamentary Service, the Speaker: in relation to any other department, the Minister for the time being responsible for the financial performance of the department: in relation to a Schedule 4 organisation, the Minister for the time being responsible for the financial performance of the organisation: in relation to a Schedule 4A company, the Minister and the other shareholding Minister or Ministers (b) (c) (d) Schedule 4 organisation means an organisation named or de- scribed in Schedule 4 Schedule 4A company means a company named in Sched- ule 4A Secretary means the Secretary to the Treasury, being the chief executive of the Treasury Speaker means— (a) (b) the Speaker of the House of Representatives; or on the dissolution or expiration of Parliament until the first meeting of the new Parliament, the person holding the office of Speaker of the House of Representatives at the time of the dissolution or expiration, or, if there was at that time a vacancy in the office of Speaker of the House of Representatives or if the person holding that office at that time dies, the person holding the office of Deputy Speaker at the time of the dissolution or expir- ation subsidiary has the same meaning as in section 5 of the Com- panies Act 1993 Supplementary Estimates means a statement in any form that— (a) is presented to the House of Representatives in accord- ance with section 16; and 22 Reprinted as at 1 January 2014 Public Finance Act 1989 s 2 contains the information referred to in section 17 (b) Treasury means the department of that name and, in relation to any particular function, duty, or power, means the Secre- tary; and includes any person for the time being authorised, by the Secretary or otherwise, to exercise that function, duty, or power Treasury instructions means Treasury instructions issued under section 80 Trust Bank Account means a Trust Bank Account established under Part 7 trust money means
 trust money within the meaning of section 66(1) type, in relation to an appropriation, means any of the types of appropriations specified in section 7(1) Vote means an appropriation or a grouping of appropriations that is— (a) the responsibility of a designated Minister or Ministers and administered by 1 department; or the responsibility of the Speaker and administered by— (i) (ii) an Office of Parliament; or the Office of the Clerk of the House of Represen- tatives; or the Parliamentary Service working day means any day except— (a) (iii) (b) Saturday, Sunday, Good Friday, Easter Monday, Anzac Day, the Sovereign’s birthday, Labour Day, Waitangi Day; and if Waitangi Day or Anzac Day falls on a Saturday or a Sunday, the following Monday; and the day observed as anniversary day in Wellington; and a day in the period commencing on 25 December in one year and ending on 15 January in the next year.
(ab) (b) (c) [Repealed] [Repealed] [Repealed] (2) (3) (4) (5) Notwithstanding any other provision of this Act, where this Act provides that a power may be exercised by both the Min- 23 s 2 Public Finance Act 1989 Reprinted as at 1 January 2014 ister and the Secretary, the power may be exercised by the Sec- retary only in so far as the Minister has not otherwise directed.

Section 2: substituted, on 1 July 1994, by section 3(1) of the Public Finance Amendment Act 1994 (1994 No 18).
repealed, on Section 2(1) annual financial statements of the Crown: 25 January 2005, by section 5(1) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) annual financial statements of the Government: inserted, on 25 January 2005, by section 5(1) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) appropriation administrator: section 5(1) of the Public Finance Amendment Act 2013 (2013 No 50).
inserted, on 18 July 2013, by Section 2(1) appropriation Minister: inserted, on 18 July 2013, by section 5(1) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 2(1) asset: inserted, on 25 January 2005, by section 5(1) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) Audit Office: repealed, on 25 January 2005, by section 5(1) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(1) Auditor-General: inserted, on 25 January 2005, by section 5(1) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) borrow money: inserted, on 25 January 2005, by section 5(2) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) borrowing expenses: amended, on 12 December 2000, by section 3 of the Public Finance Amendment Act 2000 (2000 No 78).
Section 2(1) Budget: inserted, on 25 January 2005, by section 5(3) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) capital contribution: repealed, on 25 January 2005, by section 5(4) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) capital expenditure: inserted, on 25 January 2005, by section 5(4) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(1) carrying amount: inserted, on 25 January 2005, by section 5(4) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) category: inserted, on 18 July 2013, by section 5(1) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 2(1) chief executive paragraph (aa): section 5(2) of the Public Finance Amendment Act 2013 (2013 No 50).
inserted, on 18 July 2013, by Section 2(1) company: replaced, on 5 December 2013, by section 14 of the Companies Amendment Act 2013 (2013 No 111).

Section 2(1) contingent liability: repealed, on 25 January 2005, by section 5(5) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) cost: repealed, on 25 January 2005, by section 5(5) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(1) Crown or Her Majesty: repealed, on 25 January 2005, by section 5(6)(a) of the Public Finance Amendment Act 2004 (2004 No 113).

24 Reprinted as at 1 January 2014 Public Finance Act 1989 s 2 Section 2(1) Crown or the Sovereign: inserted, on 25 January 2005, by section 5(6)(a) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) Crown or the Sovereign paragraph (a): amended, on 25 January 2005, by section 5(6)(b) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(1) Crown or the Sovereign paragraph (c)(iii): amended, on 18 July 2013, by section 5(3) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 2(1) Crown or the Sovereign paragraph (c)(iv): inserted, on 18 July 2013, by section 5(4) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 2(1) Crown or the Sovereign paragraph (c)(v): inserted, on 18 July 2013, by section 5(4) of the Public Finance Amendment Act 2013 (2013 No 50).
Section 2(1) Crown or the Sovereign paragraph (c)(vi): inserted, on 18 July 2013, by section 5(4) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 2(1) Crown Bank Account: substituted, on 25 January 2005, by section 5(7) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) Crown entity: substituted, on 25 January 2005, by section 5(8) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(1) Crown entity group: repealed, on 25 January 2005, by section 5(8) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) department: substituted, on 25 January 2005, by section 5(9) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) department paragraph (a): replaced, on 18 July 2013, by section 5(5) of the Public Finance Amendment Act 2013 (2013 No 50).
Section 2(1) departmental: inserted, on 18 July 2013, by section 5(6) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 2(1) departmental agency: inserted, on 18 July 2013, by section 5(6) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 2(1) Departmental Bank Account: substituted, on 25 January 2005, by section 5(10) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(1) derivative transaction: inserted, on 25 January 2005, by section 5(11) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) Estimates: substituted, on 25 January 2005, by section 5(12) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) forecast financial statements: inserted, on 25 January 2005, by section 5(13) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(1) generally accepted accounting practice paragraph (a): amended, on 1 July 2011, by section 12 of the Financial Reporting Amendment Act 2011 (2011 No 22).

Section 2(1) generally accepted accounting practice paragraph (b): amended, on 1 July 2011, by section 12 of the Financial Reporting Amendment Act 2011 (2011 No 22).

Section 2(1) Government reporting entity: inserted, on 25 January 2005, by section 5(14) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(1) host department: inserted, on 18 July 2013, by section 5(6) of the Public Finance Amendment Act 2013 (2013 No 50).

25 s 2 Public Finance Act 1989 Reprinted as at 1 January 2014 Section 2(1) impact: Public Finance Amendment Act 2004 (2004 No 113).

inserted, on 25 January 2005, by section 5(14) of the Section 2(1) intelligence and security department: inserted, on 25 January 2005, by section 5(14) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(1) lend money: inserted, on 18 July 2013, by section 5(6) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 2(1) liability: substituted, on 25 January 2005, by section 5(15) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) local authority: substituted, on 1 July 2003, by section 262 of the Local Government Act 2002 (2002 No 84).

Section 2(1) Minister: substituted, on 25 June 1997, by section 2 of the Treasurer (Statutory References) Act 1997 (1997 No 20).
Section 2(1) mixed ownership model company: inserted, on 30 June 2012, by section 5 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).

Section 2(1) Mode B: repealed, on 25 January 2005, by section 5(16) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) Mode C: repealed, on 25 January 2005, by section 5(16) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(1) multi-class output expense appropriation: inserted, on 25 January 2005, by section 5(17) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) non-departmental: inserted, on 18 July 2013, by section 5(6) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 2(1) Office of Parliament: amended, on 25 January 2005, by section 5(18) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(1) Office of Parliament: amended, on 1 July 2001, by section 53 of the Public Audit Act 2001 (2001 No 10).

Section 2(1) other expenses: substituted, on 25 January 2005, by section 5(19) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) outcome: substituted, on 25 January 2005, by section 5(20) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(1) output expenses: inserted, on 25 January 2005, by section 5(20) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) outputs: substituted, on 25 January 2005, by section 5(20) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) permanent legislative authority: inserted, on 18 July 2013, by section 5(6) of the Public Finance Amendment Act 2013 (2013 No 50).
Section 2(1) principles of responsible fiscal management: inserted, on 25 January 2005, by section 5(20) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) public money: amended, on 18 July 2013, by section 5(7)(a) of the Public Finance Amendment Act 2013 (2013 No 50).

26 Reprinted as at 1 January 2014 Public Finance Act 1989 s 2A Section 2(1) public money: amended, on 18 July 2013, by section 5(7)(b) of the Public Finance Amendment Act 2013 (2013 No 50).
Section 2(1) public security: amended, on 25 January 2005, by section 5(21) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) purchased: repealed, on 25 January 2005, by section 5(22) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) raising a loan: repealed, on 25 January 2005, by section 5(22) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(1) remeasurements: inserted, on 25 January 2005, by section 5(23) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) responsible Minister: replaced, on 18 July 2013, by section 5(8) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 2(1) Schedule 4 organisation: inserted, on 18 July 2013, by section 5(9) of the Public Finance Amendment Act 2013 (2013 No 50).
Section 2(1) Schedule 4A company: inserted, on 18 July 2013, by section 5(9) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 2(1) subsidiary: replaced, on 5 December 2013, by section 14 of the Companies Amendment Act 2013 (2013 No 111).

Section 2(1) Supplementary Estimates: substituted, on 25 January 2005, by section 5(25) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(1) trading revenue: repealed, on 25 January 2005, by section 5(26) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) type: inserted, on 25 January 2005, by section 5(27) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) Vote: substituted, on 25 January 2005, by section 5(28) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(1) working day: added, on 25 January 2005, by section 5(29) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(1) working day paragraph (ab): inserted, on 1 January 2014, by section 8 of the Holidays (Full Recognition of Waitangi Day and ANZAC Day) Amendment Act 2013 (2013 No 19).

Section 2(2): repealed, on 25 January 2005, by section 5(30) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 2(3): repealed, on 25 January 2005, by section 5(30) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(4): repealed, on 25 January 2005, by section 5(30) of the Public Finance Amendment Act 2004 (2004 No 113).

2A Provisions affecting application of amendments to this Act Schedule 1 contains application, savings, and transitional pro- visions relating to amendments made to this Act after 1 Janu- ary 2013 (see section 88).

Section 2A: inserted, on 18 July 2013, by section 6 of the Public Finance Amendment Act 2013 (2013 No 50).
27 s 3 3 Public Finance Act 1989 Reprinted as at 1 January 2014 Act to bind Crown This Act shall bind the Crown.

Compare: 1977 No 65 s 3 3AA Meaning of generally accepted accounting practice [Repealed] Section 3AA: repealed (without coming into force), on 1 July 1994, by section 3(2)(a) of the Public Finance Amendment Act 1994 (1994 No 18).
3A Power to amend Schedule 4 (1) The Governor-General may, by Order in Council made on the recommendation of the Minister, amend Schedule 4— (a) to add the name or description of— (i) any body, office (except an Office of Parliament), or officer established by or under an Act; or any trust that is created by the Crown by deed of trust or in respect of which the Crown has appointed, or has the power to appoint, a majority of the trustees: (ii) (b) (c) (d) to apply to an organisation any provision of the Crown Entities Act 2004 that appears in Schedule 4 (other than section 165 of that Act): to disapply to an organisation any provision of the Crown Entities Act 2004 that appears in Schedule 4: to substitute the name of an organisation in recognition of a change in its name: to remove the name or description of an organisation.
(e) The Minister must recommend that an Order in Council be made to remove the name or description of an organisation from Schedule 4 if, and only if, the Minister is satisfied that— the organisation has become a company or a Crown en- (a) tity; or in the case of a body, office, or officer established by or under an Act, the body, office, or officer has been disestablished; or in the case of a trust,— (i) (ii) the trust has been wound up; or the Crown no longer has the power to appoint a majority of the trustees.
(b) (c) (2) 28 Reprinted as at 1 January 2014 Public Finance Act 1989 s 3B Section 3A: replaced, on 18 July 2013, by section 7 of the Public Finance Amendment Act 2013 (2013 No 50).
3AB Power to amend Schedule 4A (1) The Governor-General may, by Order in Council made on the recommendation of the Minister, amend Schedule 4A— (a) to add the name of a company that meets the following criteria: (i) Ministers of the Crown hold, on behalf of the Crown, more than 50% of the issued ordinary shares in the capital of the company; and shares in the company are not listed on a regis- tered market (within the meaning of the Secur- ities Markets Act 1988); and the company is not a Crown entity or a State en- terprise named in Schedule 1 of the State-Owned Enterprises Act 1986: (iii) (ii) (b) (c) (d) to apply to a company any provision of the Crown En- tities Act 2004 that appears in Schedule 4A (other than section 165 of that Act): to disapply to a company any provision of the Crown Entities Act 2004 that appears in Schedule 4A: to substitute the name of a company in recognition of a change in its name: to remove the name of a company.
(e) The Minister must recommend that an Order in Council be made to remove the name of a company from Schedule 4A if the Minister is satisfied that— (a) the company has been removed from the register of companies kept under the Companies Act 1993; or the company no longer meets the criteria set out in sub- section (1)(a).

(b) (2) Section 3AB: inserted, on 18 July 2013, by section 7 of the Public Finance Amendment Act 2013 (2013 No 50).
3B Power to amend Schedule 5 to reflect name changes The Governor-General may, by Order in Council, amend Schedule 5 to replace the name of any company in recognition of a change in its name.

29 s 3C Public Finance Act 1989 Reprinted as at 1 January 2014 Section 3B: inserted, on 30 June 2012, by section 6 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).
3C Power to amend Schedule 5 to restore company to (2) (1) State-Owned Enterprises Act 1986 The Governor-General may, by Order in Council, repeal the name of a company from Schedule 5 and insert the name of that company in Schedules 1 and 2 of the State-Owned Enter- prises Act 1986.
Every Order in Council made under subsection (1) must (un- less the amendment is redundant), and is empowered to, also— insert the name of that company in Part 2 of Schedule 1 (a) of the Ombudsmen Act 1975; and repeal the name of that company from Part B of Sched- ule 36 of the Income Tax Act 2007 and insert the name of that company in Part A of that schedule.
(3) An Order in Council may be made under this section only if the Governor-General in Council is satisfied, at the time of the making of the Order in Council, that 100% of the issued ordinary shares in the company are held by Ministers of the Crown on behalf of the Crown.

Section 3C: inserted, on 30 June 2012, by section 6 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).
(b) Part 1 Appropriations Part 1: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

Requirement for appropriations Heading: Amendment Act 2004 (2004 No 113).
inserted, on 25 January 2005, by section 7 of the Public Finance Expenses or capital expenditure must not be incurred unless in accordance with appropriation or statutory authority The Crown or an Office of Parliament must not incur expenses or capital expenditure, except as expressly authorised by an appropriation, or other authority, by or under an Act.
4 (1) 30 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 1 s 4A (2) In this section, expense does not include an expense that re- sults from— (a) (b) a remeasurement of an asset or a liability; or an operating loss incurred by— (i) (ia) (ii) (iia) (iii) (iv) (v) a Crown entity named or described in the Crown Entities Act 2004; or a Schedule 4 organisation; or a Schedule 4A company; or a mixed ownership model company listed in Schedule 5; or a State enterprise named in Schedule 1 of the State-Owned Enterprises Act 1986; or the Reserve Bank of New Zealand; or any other entity whose financial statements must be consolidated into the financial statements of the Government to comply with generally ac- cepted accounting practice.
Section 4: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 4(2)(b)(ia): inserted, on 18 July 2013, by section 8 of the Public Finance Amendment Act 2013 (2013 No 50).

Section 4(2)(b)(ii): replaced, on 18 July 2013, by section 8 of the Public Finance Amendment Act 2013 (2013 No 50).

Section 4(2)(b)(iia): inserted, on 30 June 2012, by section 7 of the Public Fi- nance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).
4A Authority to incur expenses or capital expenditure under (1) Imprest Supply Act The authority given by an Imprest Supply Act to incur ex- penses or capital expenditure in a financial year in advance of appropriation is an authority under an Act for the purposes of sections 4(1) and 26C(1).

(2) However, subsection (1) does not apply unless an appropri- ation for the expenses or capital expenditure is made before the end of the financial year.
Section 4A: inserted, on 18 July 2013, by section 9 of the Public Finance Amendment Act 2013 (2013 No 50).

31 Part 1 s 5 Public Finance Act 1989 Reprinted as at 1 January 2014 5 6 Public money must not be spent unless in accordance with statutory authority The Crown or an Office of Parliament must not spend public money, except as expressly authorised by or under an Act (in- cluding this Act).

Section 5: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
Authority to spend public money Public money may be spent, without further authority than this section, for the purpose of— (a) meeting expenses or capital expenditure incurred in ac- cordance with an appropriation or other authority by or under an Act; and the payment of goods and services tax in relation to those expenses or capital expenditure; and the repayment of debt of the Crown or an Office of Par- liament; and the settlement of liabilities of the Crown or an Office of Parliament.
(b) (d) (c) Section 6: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
7 Separate appropriation required for types of expenses and capital expenditure (a) (b) (1) A separate appropriation must be made for— each category of output expenses; and each category of benefits or other unrequited expenses; and each category of borrowing expenses; and each category of other expenses; and each category of capital expenditure; and expenses and capital expenditure to be incurred by each intelligence and security department.
(c) (d) (e) (f) (2) All expenses or capital expenditure to be incurred in any finan- cial year must be allocated to one of the types of appropriation set out in subsection (1) within a Vote specified in an Appro- priation Act.
32 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 1 s 7C (3) An output expense appropriation referred to in subsection (1)(a) must consist of— (a) a class of outputs to be supplied— by a department; or (i) to or on behalf of the Crown (other than by a (ii) department); or (b) if the Minister approves, more than 1 class of outputs (a multi-class output expense appropriation) to be supplied— (i) (ii) by a department; or to or on behalf of the Crown (other than by a department).
(4) However, if subsection (3)(b) applies, the Estimates or other supporting information that must be presented with the Appro- priation Bill in which the multi-class output expense appropri- ation is sought must,— (a) to the extent required by section 14 or, as the case may be, section 15, relate to each class of outputs in that appropriation; and explain why those classes of outputs have been grouped under that one appropriation.
(b) Section 7: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

7C Responsibility for, and administration and use of, appropriations (1) An appropriation is made to the Crown or an Office of Parlia- (2) ment.
In the case of an appropriation made to the Crown,— (a) (b) (c) a Minister (the appropriation Minister) is responsible for the appropriation; and the appropriation must be administered by 1 department (the appropriation administrator) on behalf of the ap- propriation Minister; and if the appropriation is an appropriation for departmental expenses or a multi-category appropriation, any other department may incur expenses against the appropri- ation— (i) at the direction of the appropriation Minister; or 33 Part 1 s 8 Public Finance Act 1989 Reprinted as at 1 January 2014 (ii) with the agreement of the appropriation adminis- trator.
(4) (3) Despite subsection (2)(a), the Speaker is responsible for any appropriation administered by the Office of the Clerk of the House of Representatives or the Parliamentary Service.

In the case of an appropriation made to an Office of Parlia- ment,— (a) (b) the Speaker is responsible for the appropriation; and the appropriation must be administered by that Office of Parliament.

Section 7C: inserted, on 18 July 2013, by section 10 of the Public Finance Amendment Act 2013 (2013 No 50).
Appropriation limited by amount The authority to incur expenses or capital expenditure pro- vided by an appropriation under an Appropriation Act— (a) is limited to the amount specified for the appropriation by or under that Act; and (b) may not be exceeded (except as provided for in section 25 or section 26A or section 26B).

Section 8: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
Appropriation limited by scope The authority to incur expenses or capital expenditure pro- vided by an appropriation— (a) (b) may not be used for any other purpose.
For the purposes of subsection (1),— (a) is limited to the scope of the appropriation; and the scope of a multi-class output expense appropriation is the scope of each of the individual classes of outputs included in that appropriation; and any variation made by the Minister of the terms and conditions of a capital injection to any entity referred to in section 27(3)(a) to (f) does not change the scope or purpose of that capital injection.
(b) Section 9: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

8 9 (1) (2) 34 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 1 s 11 9A Supplementary Estimates [Repealed] Section 9A: repealed, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
9B Power of Secretary to obtain information [Repealed] Section 9B: repealed, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

10 (1) Appropriation limited by period The authority to incur expenses or capital expenditure pro- vided by an appropriation under an Appropriation Act lapses at the end of the financial year to which the Act relates.
(2) However, if an Appropriation Act provides that the authority to incur expenses or capital expenditure applies for more than 1 financial year, that authority— (a) (b) lapses at the end of the period specified in the Act; and continues in force until the end of the period specified despite the repeal of the Act, unless the authority is ex- pressly varied, revoked, or replaced by an authority in another Appropriation Act.
(3) Despite subsection (2), the authority to incur expenses or cap- ital expenditure must not apply for more than 5 financial years.

Section 10: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
11 (1) (2) Expenses or payments authorised other than by Appropriation Act If an Act (other than an Appropriation Act) expressly provides for payments to be appropriated by or under that Act, any ex- pense or capital expenditure incurred that gives rise to the need for those payments may be incurred without further appropri- ation than this section.
Each expense or capital expenditure incurred in accordance with an appropriation, or other authority, by or under an Act (other than an Appropriation Act) must be managed and ac- counted for in the same manner as expenses or capital expend- iture incurred in accordance with an Appropriation Act.

35 Part 1 s 12 Public Finance Act 1989 Reprinted as at 1 January 2014 Section 11: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
Section 11(2): amended, on 18 July 2013, by section 11 of the Public Finance Amendment Act 2013 (2013 No 50).

Timing of first Appropriation Bill for financial year Except as otherwise provided by a resolution of the House of Representatives, the first Appropriation Bill that relates to a financial year must be introduced into the House of Represen- tatives before the end of the first month after the start of that financial year.
Section 12: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

Information requirements for appropriations Heading: Amendment Act 2004 (2004 No 113).
inserted, on 25 January 2005, by section 7 of the Public Finance Estimates and other supporting information must be presented with first Appropriation Bill The Minister must present to the House of Representatives the Estimates immediately after he or she has delivered the Budget, or at any time prior to that time on the same day.
The Minister must also present to the House of Representa- tives the other supporting information referred to in section 15 at the same time he or she presents the Estimates under sub- section (1), unless that other supporting information is already contained in the Estimates.

Section 13: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 13(1): amended, on 25 February 2012, by section 4 of the Public Fi- nance Amendment Act 2012 (2012 No 17).
Content of Estimates The Estimates must state,— (a) for each appropriation being sought in the first Appro- priation Bill for a financial year,— (i) (ii) the Vote to which the appropriation relates; and the Minister responsible for the appropriation; and 12 13 (1) (2) 14 (1) 36 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 1 s 15 (iii) (iv) (v) (vi) (vii) the department that will administer the Vote con- taining the appropriation; and the type of the appropriation (in terms of section 7); and the amount of each expense or capital expend- iture authorised by the appropriation (in terms of section 8); and the scope of the appropriation (in terms of section 9); and the period of the appropriation, but only if the period is more than 1 financial year (in terms of section 10); and (b) (c) for each department, the responsible Minister for the department; and for each department other than an intelligence and se- curity department, the projected balance of net assets for the department at the end of the financial year (in terms of section 23(1)(c)).
The Minister may, in addition to the information referred to in this section, include in the Estimates any further information that the Minister considers necessary or desirable.

Section 14: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
Other supporting information for first Appropriation Bill The other supporting information for the first Appropriation Bill must, for each appropriation, include— (a) a concise explanation of each appropriation (including the intended impacts, outcomes, or objectives of the ap- propriation); and the performance measures and forecast standards to be achieved for each class of outputs; and the forecast expenses to be incurred for each class of outputs within a multi-class output expense appropri- ation; and comparative voted and estimated actual expenses or capital expenditure for each appropriation for the pre- vious financial year.
(b) (c) (d) 37 (2) 15 (1) Part 1 s 16 Public Finance Act 1989 Reprinted as at 1 January 2014 The other supporting information must, for each Vote, in- clude— (a) comparative voted and estimated actual expenses or capital expenditure for the previous financial year, and comparative actual expenses or capital expenditure for each of the 4 financial years that preceded the previous financial year, for the total of each of the types of appropriation set out in section 7(1); and a summary of the financial activity relating to the Vote for the financial year to which the Appropriation Bill relates, and comparative budgeted and estimated actual figures for the previous financial year.
(b) The other supporting information must also include, for each category of expense or capital expenditure that is proposed to be incurred in accordance with an appropriation by an Act (other than an Appropriation Act),— (a) the information required, under subsection (1) and sec- tion 14 for each appropriation (except that the refer- ence in section 14(1)(a)(v) to the amount of each ex- pense or capital expenditure authorised by the appropri- ation must be read as a reference to the amount of each expense or capital expenditure forecast to be incurred under the appropriation); and the authority for that expense or capital expenditure.
(b) The Minister may, in addition to the information referred to in this section, present any further information that the Minister considers necessary or desirable.

Subsections (1)(a) and (b) and (2)(b) do not apply to an appro- priation made in accordance with section 7(1)(f).

Section 15: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
Supplementary Estimates must be presented with Supplementary Appropriation Bill The Minister must present to the House of Representatives the Supplementary Estimates on the day of the introduction of an Appropriation Bill that is other than— (a) the first Appropriation Bill for a financial year; or (2) (3) (4) (5) 16 38 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 1 s 18 (b) an Appropriation Bill that deals only with matters that relate to a previous financial year.
Section 16: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
17 (1) Content of Supplementary Estimates The Supplementary Estimates must,— (a) if information about an appropriation or department was provided in the Estimates or previous Supplementary Estimates for the same financial year, state any changes to the information about that appropriation or depart- ment that— (i) (ii) if information about an appropriation or department was not provided in the Estimates or previous Supplemen- tary Estimates for the same financial year, state the in- formation about that appropriation or department that is required under section 14. is required under section 14; and is contained in those Estimates; or (b) (2) If subsection (1)(b) applies, the Minister must also present the information about the appropriation that is required under sec- tion 15(1)(a) to (c).
Section 17: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

18 Minister must consult on proposal to change format or (1) (2) content of information presented with Appropriation Bills This section applies if the Minister proposes to significantly change the format or content of— (a) (b) the Estimates; or the other supporting information referred to in section 15; or the Supplementary Estimates.
(c) Before giving effect to the proposal, the Minister must— (a) submit the proposal to the Speaker (who must then pre- sent it to the House of Representatives); and consider any comments that he or she receives from— (i) the Speaker; or (b) 39 Part 1 s 19 Public Finance Act 1989 Reprinted as at 1 January 2014 (ii) any committee of the House of Representatives that considered the proposal.

Section 18: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
19 (1) Power of Secretary to obtain information The Secretary may request a department, a departmental agency, or an entity referred to in section 27(3)(a) to (f), or an entity that manages an asset or liability of the Crown, to supply to the Secretary any information that is necessary to enable the preparation of— (a) (b) the Estimates; and the other supporting information referred to in section 15; and the Supplementary Estimates.
(c) (2) A request under subsection (1)— (a) must be in writing; and (b) may state the date by which, and the manner in which, the information requested must be provided.

(3) If a date is specified under subsection (2)(b), that date must be reasonable having regard to the time limits prescribed by this Act for presenting to the House of Representatives— (a) the Estimates or other supporting information referred to in section 15; and the Supplementary Estimates.
(b) (4) A department, departmental agency, or entity to whom the re- quest is made must comply with the request.

Section 19: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 19(1): amended, on 18 July 2013, by section 12(1) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 19(4): amended, on 18 July 2013, by section 12(2) of the Public Finance Amendment Act 2013 (2013 No 50).
Other provisions relating to appropriations Heading: Amendment Act 2004 (2004 No 113).

inserted, on 25 January 2005, by section 7 of the Public Finance 40 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 1 s 22 20 21 (1) Departments may incur output expenses for, or on behalf of, other departments [Repealed] Section 20: repealed, on 18 July 2013, by section 13 of the Public Finance Amendment Act 2013 (2013 No 50).
Expenses restricted by revenue If a class of outputs is supplied by a department, output ex- penses may be incurred, without further appropriation than this section, up to the amount of revenue expected to be earned by that class of outputs from parties other than the Crown.
(2) However, subsection (1) applies only if— (a) (b) (c) the appropriation is limited to 1 class of outputs; and the appropriation to which the output expenses are to be charged is specified in an Appropriation Act for that year as being supplied under this section; and the approval of the Minister for the output expenses to be incurred under this section has been given.
(4) (3) Despite subsections (1) and (2), the Minister may direct that only part of the output expenses may be incurred to a level less than the amount of the revenue earned from parties other than the Crown.

This section does not authorise output expenses to be incurred, in respect of any class of outputs, that exceed the actual amount of revenue earned by that class of outputs from parties other than the Crown in any year.
In this section, a reference to the amount of revenue earned by a class of outputs from parties other than the Crown may include a reference to the amount of revenue earned by a class of outputs from another department.

Section 21: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
(5) 22 (1) Operating surplus of department Except as agreed between the Minister and the responsible Minister for a department, the department must not retain any operating surplus that results from its activities.

41 Part 1 s 23 Public Finance Act 1989 Reprinted as at 1 January 2014 (2) (3) (4) 23 (1) (2) The reported net asset holding of a department may increase as a result of a remeasurement without further authority than this section.
The amount of net asset holding in a department must not ex- ceed the most recent projected balance of net assets for that department at the end of the financial year, as set out in an Ap- propriation Act in accordance with section 23(1)(c).

Subsection (3) is subject to subsections (1) and (2).

Section 22: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
Net assets of departments must be confirmed Each Appropriation Bill that is introduced before the end of the financial year to which the Bill relates must include a schedule that shows for each department (other than an intelligence and security department)— (a) either of the following: (i) (ii) the most recently audited amount of net assets; or the most recently projected amount of net assets at the start of that financial year to which the appropriations sought in that Bill apply; and projected movements in net assets during that financial year; and the projected balance of net assets at the end of that financial year.
(b) (c) The projected movements in net assets referred to in subsec- tion (1)(b) must include as separate items— (a) (b) any projected capital injections and withdrawals; and any surpluses projected to be retained in accordance with section 22(1).

Section 23: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
24 Movements within departmental statement of financial position (1) A department may, without further appropriation than this sec- tion, use the proceeds of the sale or disposal of any of its assets, together with any working capital held by it, to purchase or de- velop assets.
42 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 1 s 25 (2) A department may, without further authority than this section, use the proceeds of the sale or disposal of its assets, together with any working capital held by it, to pay its liabilities.

Section 24: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
25 (1) (2) (3) (4) Expenses or capital expenditure may be incurred in emergencies This section applies if— (a) a state of emergency or state of civil defence emergency is declared under the Civil Defence Act 1983 or the Civil Defence Emergency Management Act 2002; or a situation occurs that affects the public health or safety of New Zealand or any part of New Zealand that the Government declares to be an emergency.
(b) The Minister may approve expenses or capital expenditure to be incurred to meet the emergency or disaster and, whether or not there is an appropriation by Parliament available for the purpose and despite sections 4, 8, and 9, the expenses or capital expenditure may be incurred accordingly.
[Repealed] Public money may be spent, without further authority than this section, for the purpose of meeting expenses or capital expend- iture incurred in accordance with subsection (2) that have not been appropriated.

(5) A statement about any expenses and capital expenditure in- curred under this section in any financial year that have not been appropriated must be included in— (a) (b) Subsection (5) does not limit the validity of any expenses or capital expenditure incurred under this section.
Section 25: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

the annual financial statements of the Government; and an Appropriation Bill for confirmation by Parliament.

(6) Section 25(3): repealed, on 18 July 2013, by section 14 of the Public Finance Amendment Act 2013 (2013 No 50).
43 Part 1 s 26 Public Finance Act 1989 Reprinted as at 1 January 2014 26 Minister may determine terms and conditions of capital (1) injections The Minister, after consultation with the Minister responsible for an entity, may— (a) determine the terms and conditions under which any capital injection authorised by an appropriation under section 7(1)(e) or any other authority is to be made to that entity; and vary those terms and conditions at any time.
(2) However, subsection (1)(b) does not apply in respect of a State enterprise named in Schedule 1 of the State-Owned Enter- prises Act 1986.

Section 26: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
(b) 26A Transfer of resources between output expense (1) appropriations The Governor-General may, by Order in Council, direct that an amount appropriated for an output expense appropriation in a Vote be transferred, without further appropriation than this section, to another output expense appropriation in that Vote if— (a) the amount transferred does not increase that appropri- ation for a financial year by more than 5%; and no other transfer under this section to that appropriation has occurred during that financial year; and the total amount appropriated for that financial year for all output expense appropriations in that Vote is unal- tered.
(b) (c) (3) (2) A clause that confirms the making of an Order in Council under subsection (1) in a financial year must be included in an Appropriation Bill that applies to that financial year.

Subsection (2) does not limit the validity of an Order in Coun- cil made under subsection (1) or the validity of any transfer made under that Order in Council.

Section 26A: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
44 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 1 s 26C 26B Minister may approve expenses or capital expenditure to (1) (2) (3) be incurred in excess of existing appropriation This section applies if the Minister considers that the incurring of expenses or capital expenditure in the last 3 months of any financial year that is in excess, but within the scope, of an existing appropriation by or under an Act should be approved.
The Minister may, in that financial year or not later than 3 months after the end of that financial year, approve in respect of that appropriation up to the greater of— an amount not exceeding $10,000; or (a) 2% of the total amount appropriated for that appropri- (b) ation.

Subsection (2) applies— (a) even though all or part of the expenses or capital ex- penditure may have been incurred; and despite sections 4 and 8.
(b) (4) Any expenses or capital expenditure that the Minister ap- proves under this section must be included, for confirmation by Parliament, in an Appropriation Bill that applies to that financial year.

Subsection (4) does not limit the validity of any expenses or capital expenditure incurred under this section.

Section 26B: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
(5) 26C Expenses or capital expenditure incurred without (1) (2) appropriation or other authority requires validation by Parliament The incurring of any expenses or capital expenditure without appropriation, or other authority, by or under an Act is unlaw- ful, unless it is validated by Parliament in an Appropriation Act.
The Minister must, on the introduction of any Appropriation Bill that seeks validation by Parliament of any expenses or capital expenditure incurred without appropriation, or other authority, by or under an Act, present to the House of Rep- resentatives a report that sets out— (a) the amount of each category of expenses or capital ex- penditure so incurred; and 45 Part 1 s 26D Public Finance Act 1989 Reprinted as at 1 January 2014 (b) the explanation of the Minister responsible for the ex- penses or capital expenditure.
Section 26C: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

26D Reporting requirements in relation to expenses or (1) capital expenditure incurred in excess of, or without, appropriation This section applies to any expenses or capital expenditure— that has been incurred without appropriation; or (a) that has been incurred in excess of an existing appropri- (b) ation.
(2) A statement that relates to any expenses or capital expenditure to which this section applies must be included in— (a) the annual financial statements of the Government for the financial year; and the annual financial statements of the administering de- partment for the financial year in accordance with sec- tion 45B(2)(d).

(b) Section 26D: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
Application of this Part to Offices of Parliament Heading: Amendment Act 2004 (2004 No 113).
inserted, on 25 January 2005, by section 7 of the Public Finance 26E Application of this Part to Offices of Parliament (1) Before an appropriation in a Vote administered by an Office of Parliament may be included in an Appropriation Bill for a financial year, the chief executive of the Office concerned must prepare and submit to the House of Representatives the following information: (a) an estimate of expenses and capital expenditure to be incurred for— each proposed appropriation; and (i) (ii) each class of outputs within an appropriation; and the projected balance of net assets (in terms of section 23(1)(c)); and (b) 46 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 2 s 26F (2) (3) (4) (c) the revenue of the Office (including the revenue asso- ciated with each proposed expenses appropriation and each output class).
The House of Representatives, after considering the informa- tion provided under subsection (1), may for each Office of Par- liament commend to the Governor-General, by way of an ad- dress, the estimates for each of the matters set out in subsection (1)(a) to (c).

The House of Representatives may, in that address, request that the estimates referred to in subsection (2) be included as a Vote in an Appropriation Bill for that year.
If that Vote is included in an Appropriation Bill for that year, this Part applies, with all necessary modifications, as if refer- ences to a department were references to an Office of Parlia- ment.

(5) An alteration to a Vote administered by an Office of Parlia- ment during a financial year is subject to the provisions of this section.

Section 26E: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
Part 2 Fiscal responsibility Part 2: substituted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

Preliminary Heading: Amendment Act 2004 (2004 No 113).
inserted, on 25 January 2005, by section 7 of the Public Finance 26F Interpretation If the context requires, references in this Part to total debt, total operating expenses, total operating revenues, and total net worth are references to the total fiscal aggregates of the forecast financial statements prepared in accordance with sec- tion 26Q.

Section 26F: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
47 Part 2 s 26G Public Finance Act 1989 Reprinted as at 1 January 2014 26G Principles of responsible fiscal management (1) The Government must pursue its policy objectives in accord- ance with the following principles (the principles of respon- sible fiscal management): (a) reducing total debt to prudent levels so as to provide a buffer against factors that may impact adversely on the level of total debt in the future by ensuring that, until those levels have been achieved, total operating expenses in each financial year are less than total oper- ating revenues in the same financial year; and once prudent levels of total debt have been achieved, maintaining those levels by ensuring that, on average, over a reasonable period of time, total operating ex- penses do not exceed total operating revenues; and achieving and maintaining levels of total net worth that provide a buffer against factors that may impact ad- versely on total net worth in the future; and (b) (c) (d) managing prudently the fiscal risks facing the Govern- (e) (f) ment; and when formulating revenue strategy, having regard to ef- ficiency and fairness, including the predictability and stability of tax rates; and when formulating fiscal strategy, having regard to the interaction between fiscal policy and monetary policy; and (g) when formulating fiscal strategy, having regard to its (h) likely impact on present and future generations; and ensuring that the Crown’s resources are managed effect- ively and efficiently.
(2) However, the Government may depart from the principles of responsible fiscal management if— (a) (b) the departure from those principles is temporary; and the Minister, in accordance with this Act, states— (i) the reasons for the departure from those prin- ciples; and the approach the Government intends to take to return to those principles; and the period of time that the Government expects to take to return to those principles.
(ii) (iii) 48 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 2 s 26J Section 26G: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 26G(1)(e): replaced, on 4 September 2013, by section 4 of the Public Finance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).

Section 26G(1)(f): inserted, on 4 September 2013, by section 4 of the Public Finance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).
Section 26G(1)(g): inserted, on 4 September 2013, by section 4 of the Public Finance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).

Section 26G(1)(h): inserted, on 4 September 2013, by section 4 of the Public Finance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).
26H Generally accepted accounting practice All financial statements and forecast financial statements in- cluded in reports and updates required under this Part must be prepared in accordance with generally accepted accounting practice.

Section 26H: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

Fiscal strategy report Heading: Amendment Act 2004 (2004 No 113).
inserted, on 25 January 2005, by section 7 of the Public Finance 26I Fiscal strategy report (1) (2) (3) The Minister must, in each financial year and in accordance with subsection (2), present to the House of Representatives a report on the Government’s fiscal strategy.

The Minister must present the fiscal strategy report immedi- ately after he or she has delivered the Budget for the financial year to which the report relates, or at any time prior to that time on the same day.
Sections 26J to 26L set out the contents of the fiscal strategy report.

Section 26I: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 26I(2): amended, on 25 February 2012, by section 5 of the Public Fi- nance Amendment Act 2012 (2012 No 17).
26J Contents of fiscal strategy report: long-term objectives (1) The fiscal strategy report must— 49 Part 2 s 26K Public Finance Act 1989 Reprinted as at 1 January 2014 (a) (b) (c) state the Government’s long-term objectives for fiscal policy and, in particular, for the following variables: (i) (ii) (iii) total operating expenses: total operating revenues: the balance between total operating expenses and total operating revenues: the level of total debt: the level of total net worth; and (iv) (v) explain how those long-term objectives accord with the principles of responsible fiscal management; and state the period to which those long-term objectives re- late (which must be a period of 10 or more consecutive financial years commencing with the financial year to which the fiscal strategy report relates).
(2) The fiscal strategy report must also— (a) (ii) assess the consistency of the long-term objectives re- ferred to in subsection (1)(a)— (i) with the long-term objectives in the most recent fiscal strategy report; or if the long-term objectives in the most recent fis- cal strategy report were amended in the budget policy statement most recently prepared under section 26M, with the long-term objectives stated in the statement; and (b) if the long-term objectives referred to in subsection (1)(a) are not consistent with the long-term objectives in the most recent fiscal strategy report or in the budget policy statement most recently prepared under section 26M, justify the departure of the long-term objectives referred to in subsection (1)(a) from the long-term objectives in the most recent fiscal strategy report or in the statement.
Section 26J: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
26K Contents of fiscal strategy report: short-term intentions (1) The fiscal strategy report must, for the financial year to which the report relates and at least the next 2 financial years, indicate explicitly, by the use of ranges, ratios, or other means, the 50 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 2 s 26K (2) (3) Government’s short-term intentions for each of the variables specified in section 26J(1)(a).
The fiscal strategy report must— (a) assess the consistency of the short-term intentions re- ferred to in subsection (1) with— (i) the principles of responsible fiscal management; and the long-term objectives referred to in section 26J(1)(a); and (ii) (b) if those short-term intentions are not consistent with the principles of responsible fiscal management or with the long-term objectives referred to in section 26J(1)(a) or with both, state— (i) the reasons for the departure of those short-term intentions from those principles or from those long-term objectives or from both; and the approach the Government intends to take to ensure that those short-term intentions become consistent with those principles and those long- term objectives; and the period of time that is expected to elapse be- fore those short-term intentions become consis- tent with those principles and those long-term ob- jectives.
(ii) (iii) The fiscal strategy report must also— (a) (ii) assess the consistency of the short-term intentions re- ferred to in subsection (1)— (i) with the short-term intentions indicated in the most recent fiscal strategy report; or if the short-term intentions indicated in the most recent fiscal strategy report were amended in the budget policy statement most recently prepared under section 26M, with the short-term intentions indicated in the statement; and (b) if the short-term intentions referred to in subsection (1) are not consistent with the short-term intentions in the most recent fiscal strategy report or in the budget policy statement most recently prepared under section 26M, justify the departure of the short-term intentions 51 Part 2 s 26KA Public Finance Act 1989 Reprinted as at 1 January 2014 referred to in subsection (1) from the short-term inten- tions in the most recent fiscal strategy report or in the statement.
Section 26K: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

26KA Contents of fiscal strategy report: management of the (1) Crown’s resources The fiscal strategy report must include details of the Govern- ment’s strategy for managing expenditure, assets, and liabil- ities in the period of at least 3 financial years commencing with the financial year to which the report relates.
(2) Details of the Government’s strategy for managing expend- iture, assets, and liabilities may include— (a) the outcomes sought from new or reallocated expend- iture, assets, and liabilities; and any expected change over time in the major components of expenditure, assets, and liabilities.

(b) Section 26KA: inserted, on 4 September 2013, by section 5 of the Public Fi- nance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).
26L Contents of fiscal strategy report: other matters (1) The fiscal strategy report must include— (a) an assessment of the extent to which the economic and fiscal update prepared under section 26O(1) is consis- tent with the short-term intentions referred to in section 26K(1); and if the economic and fiscal update departs from those short-term intentions, an explanation of the reasons for the departure; and an assessment of the extent to which the fiscal perform- ance of the Government, in the period since the most recent substantial change in the political party compo- sition of the administration, is consistent with the Gov- ernment’s fiscal strategy report (if any) for that period; and details of the Government’s revenue strategy, including the Government’s objectives for the tax system and tax policy.
(b) (c) (d) 52 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 2 s 26L (2) (3) (4) The fiscal strategy report must also include— (a) scenarios that— (i) contain projections of trends in the variables specified in section 26J(1)(a) (which projections must illustrate, for stated significant assump- tions, likely future progress towards achieving the long-term objectives referred to in that sec- tion); and explain the reasons for any significant differences from previous scenarios; and (ii) (b) (c) an assessment of the consistency of the scenarios with the long-term objectives referred to in section 26J(1)(a); and if the scenarios depart from the long-term objectives referred to in section 26J(1)(a), an explanation of the reasons for the departure.
The projections required by subsection (2)(a)(i) must relate to the period to which the long-term objectives referred to in section 26J(1)(a) relate (which must be a period of 10 or more consecutive financial years commencing with the finan- cial year to which the fiscal strategy report relates).

In subsection (1)(c), administration means the Ministers of the Crown for the time being.

Section 26L: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
Section 26L(1)(b): amended, on 4 September 2013, by section 6(1) of the Public Finance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).

Section 26L(1)(c): inserted, on 4 September 2013, by section 6(2) of the Public Finance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).

Section 26L(1)(d): inserted, on 4 September 2013, by section 6(2) of the Public Finance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).
Section 26L(4): inserted, on 4 September 2013, by section 6(3) of the Public Finance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).

Budget policy statement Heading: Amendment Act 2004 (2004 No 113).
inserted, on 25 January 2005, by section 7 of the Public Finance 53 Part 2 s 26M Public Finance Act 1989 Reprinted as at 1 January 2014 26M Budget policy statement (1) The Minister must present to the House of Representatives a budget policy statement— (a) (b) not later than 31 March in each financial year; or if Parliament is not in session on 31 March and a budget policy statement has not been presented in that financial year, as soon as possible after the commencement of the next session of Parliament.
The budget policy statement must, for the financial year com- mencing on 1 July after the statement is presented, state the broad strategic priorities by which the Government will be guided in preparing the Budget for that financial year, includ- ing— (a) the overarching policy goals that will guide the Govern- ment’s Budget decisions; and the policy areas that the Government will focus on in that year; and how the Budget for that year accords with the short-term intentions referred to in the most recent fiscal strategy report or the amended short-term intentions under sub- section (3).
(b) (c) The budget policy statement must,— (a) if the long-term objectives referred to in section 26J(1)(a) have changed from those stated in the most recent fiscal strategy report, indicate those amended long-term objectives and explain how they accord with the principles of responsible fiscal management; and if the short-term intentions referred to in section 26K(1) have changed from those indicated in the most recent fiscal strategy report, indicate those amended short-term intentions and explain how they accord with the prin- ciples of responsible fiscal management and the long- term objectives in the most recent fiscal strategy report or the amended long-term objectives under paragraph (a); and if the details of the Government’s strategy for managing expenditure, assets, and liabilities (see section 26KA) have changed from those stated in the most recent fiscal strategy report, indicate those amended details.
(b) (c) (2) (3) 54 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 2 s 26N Section 26M: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 26M(3)(b): amended, on 4 September 2013, by section 7(1) of the Pub- lic Finance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).

Section 26M(3)(c): inserted, on 4 September 2013, by section 7(2) of the Public Finance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).
Statement on long-term fiscal position Heading: Amendment Act 2004 (2004 No 113).

inserted, on 25 January 2005, by section 7 of the Public Finance 26N Statement on long-term fiscal position (1) Before the end of the second financial year after the com- mencement of this section and then at intervals not exceeding 4 years,— (a) the Treasury must prepare a statement on the long-term fiscal position; and the Minister must present each statement to the House of Representatives.
(b) (2) The statement must— (a) (b) relate to a period of at least 40 consecutive financial years commencing with the financial year in which the statement is prepared; and be accompanied by— (i) a statement of responsibility signed by the Secre- tary stating that the Treasury has, in preparing the statement under subsection (1), used its best pro- fessional judgments about the risks and the out- look; and a statement of all significant assumptions under- lying any projections included in the statement under subsection (1).
(ii) Section 26N: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

Investment statement Heading: inserted, on 4 September 2013, by section 8 of the Public Finance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).
55 Part 2 s 26NA Public Finance Act 1989 Reprinted as at 1 January 2014 26NA Investment statement (1) The Minister must, before the end of 2017 and then at intervals not exceeding 4 years, present to the House of Representatives an investment statement prepared by the Treasury.
The investment statement must— (a) describe and state the value of the Crown’s significant assets and liabilities; and state how those assets and liabilities have changed in value over time; and forecast how those assets and liabilities are expected to change in value in each of at least the next 2 financial years after the financial year in which the investment statement is presented; and identify any significant differences between the infor- mation specified in paragraphs (a) to (c) and the equiva- lent information reported in the most recent previous in- vestment statement.
(b) (c) (d) Section 26NA: inserted, on 4 September 2013, by section 8 of the Public Fi- nance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).

Economic and fiscal updates Heading: Amendment Act 2004 (2004 No 113).

inserted, on 25 January 2005, by section 7 of the Public Finance 26O Economic and fiscal update (1) The Minister must, in accordance with subsection (2), present to the House of Representatives an economic and fiscal update prepared by the Treasury for each financial year.
The Minister must present the economic and fiscal update im- mediately after he or she has delivered the Budget for the fi- nancial year to which the update relates, or at any time prior to that time on the same day.
The update must— (a) the financial year to which the update relates; and each of the next 2 financial years; and contain economic and fiscal forecasts that relate to— (i) (ii) contain a statement of tax policy changes in accordance with section 26R; and be accompanied by a statement of responsibility.
(b) (c) (2) (2) (3) 56 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 2 s 26Q (4) The update must state— (a) the day on which the contents of the update were fi- nalised; or the days on which the contents of different specified aspects of the update were finalised.

(b) Section 26O: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 26O(2): amended, on 25 February 2012, by section 6 of the Public Finance Amendment Act 2012 (2012 No 17).
26P Economic forecasts (1) The economic forecasts contained in the economic and fiscal update prepared under section 26O must, for each of the 3 fi- nancial years to which they relate, include forecasts of move- ments in New Zealand’s— (a) gross domestic product (including the major compo- nents of gross domestic product): consumer prices: unemployment and employment: current account position of the balance of payments.
(b) (c) (d) The economic forecasts must also include a statement of all significant assumptions underlying the forecasts.

Section 26P: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

26Q Fiscal forecasts (1) The fiscal forecasts contained in the economic and fiscal up- date prepared under section 26O must, for each of the 3 fi- nancial years to which they relate, include forecast financial statements.
In addition to the forecast financial statements required by sub- section (1), the fiscal forecasts must include— (a) a statement of borrowings that reflects the forecast bor- rowing activities for each of those financial years: any other statements that are necessary to fairly re- flect— (i) the forecast financial operations for each of those financial years; and (b) (2) (2) 57 (b) (c) (d) Part 2 s 26Q Public Finance Act 1989 Reprinted as at 1 January 2014 (ii) the forecast financial position at the end of each of those financial years.
The fiscal forecasts must also include— (a) a statement of commitments from the most recent monthly financial statements of the Government that are required to be prepared under section 31A; and a statement of specific fiscal risks of the Government as at the day on which the forecast financial statements are finalised— (i) that sets out specific fiscal risks that relate to— (A) the Government decisions and other cir- cumstances required by section 26U to be incorporated in the economic and fiscal update prepared under section 26O; and any other contingent liabilities (including any guarantees or indemnities given under any Act); and (B) (ii) that discloses the rules used to determine what is and is not a fiscal risk; and a statement of all significant accounting policies (in- cluding any changes from the accounting policies con- tained in the annual financial statements of the Govern- ment most recently presented to the House of Represen- tatives or published under section 31); and in relation to each forecast financial statement required by subsections (1) and (2)(a) and, if appropriate, sub- section (2)(b),— (i) comparative budgeted and estimated actual fig- ures for the financial year immediately before the first of the financial years to which the fiscal fore- casts relate; and comparative actual figures for the financial year that is 2 years before the first of the financial years to which the fiscal forecasts relate; and (ii) (e) (f) a statement of all significant assumptions underlying the fiscal forecasts; and a statement that shows the sensitivity of the fiscal ag- gregates to changes in economic conditions.
(3) 58 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 2 s 26S (4) The fiscal forecasts must be for the same reporting entity as the annual financial statements of the Government to be prepared under section 27 for the first of the financial years to which the fiscal forecasts relate.

Section 26Q: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
26R Annual statement of tax policy changes (1) The statement of tax policy changes contained in the economic and fiscal update prepared under section 26O must set out— a summary and quantitative assessment of tax policy (a) changes that have resulted in a material change to the tax revenue forecasts for the financial year to which the update relates and at least the next 2 financial years; and the basis for determining whether or not a particular tax policy change should be included in that summary.
(b) (2) In this section, tax policy change includes— (a) (b) a change in tax legislation that has been enacted since the most recent statement of tax policy changes pre- pared under this section; and a proposed change in tax legislation that has been ap- proved by the Government (whether set out in a Bill that has been introduced into the House of Representa- tives or otherwise).

Section 26R: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
26S Half-year economic and fiscal update (1) The Minister must, not earlier than 1 November nor later than 31 December in each financial year,— (a) arrange to be published a half-year economic and fiscal update prepared by the Treasury; and present the update to the House of Representatives.
(b) (2) However, if a half-year economic and fiscal update has not been presented by 31 December in a financial year because Parliament has not been in session since the date that the up- date was published, the Minister must present the half-year economic and fiscal update as soon as possible after the next meeting of Parliament.
59 Part 2 s 26T Public Finance Act 1989 Reprinted as at 1 January 2014 (3) The half-year economic and fiscal update must— (a) include the information required by sections 26O(3)(a) and (4), 26P, 26Q, and 26U to be included in the eco- nomic and fiscal update prepared under section 26O, ex- cept that— (i) the reference to estimated actual figures in sec- tion 26Q(3)(d)(i) must be read as if it were a ref- erence to actual figures; and the figures 26Q(3)(d)(ii) are not required; and be accompanied by a statement of responsibility.
required section actual (ii) by (b) (4) However, the Minister is not required to arrange the publica- tion of the half-year economic and fiscal update in any finan- cial year if, in the period of that financial year beginning on 1 October and ending on 31 December, a pre-election eco- nomic and fiscal update— (a) (b) Section 26S: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
has been published under section 26T; or is required to be published under that section.

26T Pre-election economic and fiscal update (1) The Minister must, not earlier than 30 working days, nor later than 20 working days, before the day appointed as polling day in relation to any general election of members of the House of Representatives, arrange to be published a pre-election eco- nomic and fiscal update prepared by the Treasury.
The pre-election economic and fiscal update must,— (a) except as provided in subsection (3), include the in- formation required by sections 26O(3)(a) and (4), 26P, 26Q, and 26U to be included in the economic and fiscal update prepared under section 26O; and (b) be accompanied by a statement of responsibility.
If, before the day on which a pre-election economic and fiscal update is required to be published under this section, the an- nual financial statements of the Government for the financial year immediately before the first of the financial years to which the fiscal forecasts relate have been presented to the House of Representatives or published under section 31,— (2) (3) 60 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 2 s 26U (4) (5) (a) (b) the reference to estimated actual figures in section 26Q(3)(d)(i) must be read as if it were a reference to actual figures; and the actual figures required by section 26Q(3)(d)(ii) are not required.
If the day of the dissolution of Parliament is less than 30 work- ing days before the day appointed as polling day in relation to the general election of members of the House of Representa- tives, the Minister must arrange for the pre-election economic and fiscal update required under this section to be published not later than 10 working days after the day of the dissolution of Parliament.
The Minister must, as soon as possible after the next meeting of Parliament, present to the House of Representatives a copy of the update published under this section.

Section 26T: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

Disclosure requirements for economic and fiscal updates Heading: Amendment Act 2004 (2004 No 113).
inserted, on 25 January 2005, by section 7 of the Public Finance 26U Disclosure of policy decisions and other circumstances that may influence future fiscal situation (2) (1) An economic and fiscal update prepared under section 26O or section 26S or section 26T must incorporate, to the fullest extent possible that is consistent with section 26V, all Gov- ernment decisions and all other circumstances that may have a material effect on the fiscal and economic outlook.
If the fiscal implications of Government decisions and other circumstances referred to in subsection (1) can be quantified for particular years with reasonable certainty by the day on which the forecast financial statements are finalised, the quan- tified fiscal implications of those Government decisions and other circumstances must be included in the forecast financial statements.
If the fiscal implications of Government decisions and other circumstances referred to in subsection (1) cannot be quan- (3) 61 Part 2 s 26V Public Finance Act 1989 Reprinted as at 1 January 2014 tified for or assigned to particular years with reasonable cer- tainty by the day on which the forecast financial statements are finalised, those Government decisions and other circum- stances must be disclosed in the statement of specific fiscal risks of the Government required by section 26Q(3)(b).
Section 26U: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
26V Limits on disclosure requirements Sections 26Q(2)(b) and 26U(1) do not apply to a decision, circumstance, or statement if the Minister, together with any other Minister designated for the purpose of this section, de- termines that— (a) to incorporate that decision, circumstance, or statement in an economic and fiscal update is likely— (i) to prejudice the substantial economic interests of New Zealand; or to prejudice the security or defence of New Zealand or the international relations of the Gov- ernment; or to compromise the Government in a material way in negotiation, litigation, or commercial activity; or to result in material loss of value to the Govern- ment; and (ii) (iii) (iv) (b) there is no reasonable or prudent way the Government can avoid this prejudice, compromise, or material loss,— (i) in the case of a circumstance, by making a deci- sion before the day on which the forecast finan- cial statements are finalised; or in the case of a decision or circumstance, by in- corporating in the update the fiscal implications of that decision or circumstance, or the nature of that decision or circumstance, but without refer- ence to its fiscal implications; or in the case of a statement, by incorporating that statement in the update.
(ii) (iii) Section 26V: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

62 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 2 s 26W Statement of responsibility Heading: Amendment Act 2004 (2004 No 113).
inserted, on 25 January 2005, by section 7 of the Public Finance 26W Requirements for statement of responsibility (1) The statement of responsibility required by section 26O or sec- tion 26S or section 26T must be signed by— (a) (b) the Minister; and any other Minister designated for all or any of the pur- poses of subsection (2)(a) to (c); and the Secretary.
(c) The statement of responsibility must comprise— (a) a statement by the Minister, and any other Minister des- ignated for the purpose of this paragraph, that the fol- lowing matters have been communicated to the Secre- tary: (i) (2) all policy decisions with material economic or fiscal implications that the Government has made before the day on which the contents of an eco- nomic and fiscal update or of the relevant aspect of the update were finalised; and all other circumstances with material economic or fiscal implications of which the Minister and that other Minister (if any) were aware before that day; and (ii) (b) a statement by the Secretary that the Treasury has sup- plied to the Minister, and to any other Minister desig- nated for the purpose of this paragraph, an economic and fiscal update— (i) that incorporates the fiscal and economic impli- cations of the decisions and circumstances re- ferred to in paragraph (a); but that does not incorporate any decisions, circum- stances, or statements that the Minister and any other Minister designated for the purpose of section 26V have determined under that section should not be incorporated in that update; and (ii) 63 Part 2 s 26X Public Finance Act 1989 Reprinted as at 1 January 2014 (c) (ii) (iii) a statement of the responsibility of the Minister, and of any other Minister designated for all or any of the purposes of this paragraph and paragraphs (a) and (b),— for the integrity of the disclosures contained in (i) the update; and for the consistency with the requirements of this Part of the information contained in the update; and for the omission from the update under section 26V of any decision, circumstance, or statement.
The statement referred to in subsection (2)(b) must be accom- panied by a statement that the economic and fiscal update has been prepared by the Treasury— (a) (b) using its best professional judgments; and on the basis of economic and fiscal information avail- able to it before the day on which the contents of the up- date or the relevant aspect of the update were finalised.

Section 26W: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).
(3) Miscellaneous Heading: Amendment Act 2004 (2004 No 113).
inserted, on 25 January 2005, by section 7 of the Public Finance 26X Certain statements and updates may be published in advance of presentation to House of Representatives The Minister may arrange for the following to be published in advance of their being presented to the House of Representa- tives: (a) (aa) (b) a budget policy statement under section 26M(1): an investment statement under section 26NA(1): a half-year economic and fiscal update under section 26S(1): a pre-election economic and fiscal update under section 26T(1).
(c) Section 26X: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 26X(aa): inserted, on 4 September 2013, by section 9 of the Public Finance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).
64 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 2 s 26Z 26Y Publication and availability of reports, statements, or (1) (2) (3) (4) updates The Minister must arrange for a specified document to be pub- lished on an Internet site maintained by or on behalf of the Treasury as soon as practicable after the specified document is— (a) published in advance of being presented to the House of Representatives (if permitted under section 26X); or if paragraph (a) does not apply, presented to the House of Representatives.
(b) The Secretary must ensure that the specified document re- mains available on the Internet site for inspection by members of the public for at least 5 financial years after the financial year (or, if the document relates to more than 1 financial year, the first financial year) to which the document relates.
Subsection (1)(a) is deemed to be satisfied if the advance pub- lication referred to in that paragraph includes publication on an Internet site maintained by or on behalf of the Treasury, but subsection (2) applies to the specified document.
In this section, specified document means— (a) (b) (c) a fiscal strategy report (see section 26I): a budget policy statement (see section 26M): a statement on the long-term fiscal position (see section 26N): an investment statement (see section 26NA): an economic and fiscal update (see section 26O): a half-year economic and fiscal update (see section 26S): a pre-election economic and fiscal update (see section 26T).
(d) (e) (f) (g) Section 26Y: replaced, on 4 September 2013, by section 10 of the Public Finance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).
26Z Power of Secretary to obtain information (1) The Secretary may request any department, any departmental agency, or any entity referred to in section 27(3)(a) to (f), or any entity that manages an asset or liability of the Government, to supply to the Secretary any information that is necessary to enable the preparation of any fiscal forecasts and projections 65 Part 3 s 27 Public Finance Act 1989 Reprinted as at 1 January 2014 referred to in sections 26L, 26N, 26NA, 26O, 26Q, 26S, and 26T.
(2) A request under subsection (1)— (3) (a) must be in writing; and (b) may state the date by which, and the manner in which, the information requested must be provided.

If a date is stated under subsection (2)(b), that date must be reasonable having regard to the time limits prescribed by this Act for presenting to the House of Representatives, or for pub- lishing, the report or update for which the information is being requested.
(4) A department, departmental agency, or entity to whom the re- quest is made must comply with the request.

Section 26Z: inserted, on 25 January 2005, by section 7 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 26Z(1): amended, on 4 September 2013, by section 11 of the Public Finance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).

Section 26Z(1): amended, on 18 July 2013, by section 15(1) of the Public Fi- nance Amendment Act 2013 (2013 No 50).
Section 26Z(4): amended, on 18 July 2013, by section 15(2) of the Public Fi- nance Amendment Act 2013 (2013 No 50).

Part 3 Reporting by Government reporting entity Part 3 heading: substituted, on 25 January 2005, by section 8 of the Public Finance Amendment Act 2004 (2004 No 113).
Annual financial statements of Government The Treasury must, as soon as practicable after the end of each financial year, prepare annual consolidated financial statements for the Government reporting entity for that finan- cial year.
The annual financial statements of the Government must— (a) be prepared in accordance with generally accepted ac- counting practice; and include the forecast financial statements prepared under section 26Q, for comparison with the actual financial statements; and (b) 27 (1) (2) 66 Reprinted as at 1 January 2014 (c) (3) Public Finance Act 1989 Part 3 s 27 (ii) (iii) include, in addition to those financial statements re- quired by generally accepted accounting practice,— (i) reflects the a statement of borrowings that borrowing activities for that year, including budgeted figures for that year and comparative actual figures for the previous financial year: a statement of unappropriated expenses and cap- ital expenditure: a statement of emergency expenses and capital expenditure incurred under section 25: a statement of trust money administered by de- partments and Offices of Parliament: any additional information and explanations needed to fairly reflect the consolidated financial operations of the Government reporting entity for the financial year and its consolidated finan- cial position at the end of that year.
The annual financial statements of the Government must in- clude the Government reporting entity’s interests in— (a) (iv) (v) all Crown entities named or described in the Crown Entities Act 2004: all Schedule 4 organisations: all Schedule 4A companies: all mixed ownership model companies listed in Sched- ule 5: all State enterprises named in Schedule 1 of the State- Owned Enterprises Act 1986: all Offices of Parliament: the Reserve Bank of New Zealand: any other entity whose financial statements must be consolidated into the financial statements of the Gov- ernment reporting entity to comply with generally ac- cepted accounting practice.
(ab) (b) (ba) (c) (d) (e) (f) Compare: 1989 No 44 s 27 Section 27: substituted, on 25 January 2005, by section 9 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 27(3)(ab): inserted, on 18 July 2013, by section 16 of the Public Finance Amendment Act 2013 (2013 No 50).

Section 27(3)(b): replaced, on 18 July 2013, by section 16 of the Public Finance Amendment Act 2013 (2013 No 50).
67 Part 3 s 28 Public Finance Act 1989 Reprinted as at 1 January 2014 Section 27(3)(ba): inserted, on 30 June 2012, by section 8 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).

Half-year financial statements of the Crown [Repealed] Section 28: repealed, on 12 December 2000, by section 4 of the Public Finance Amendment Act 2000 (2000 No 78).
Responsibility for annual financial statements of Government Every annual financial statement shall be accompanied by a statement of responsibility signed by the Minister, any other Minister designated by the Prime Minister for either or both of the purposes of paragraphs (a) and (d) of subsection (2), and the Secretary.
The statement of responsibility shall comprise— (a) a statement of the responsibility of the Minister, and of any other Minister designated by the Prime Minister for the purpose of this paragraph, for the integrity of the financial statements; and a statement of the Treasury’s responsibility for estab- lishing and maintaining a system of internal control de- signed to provide reasonable assurance that the transac- tions recorded are within statutory authority and prop- erly record the use of all public financial resources by the Government reporting entity; and a statement by the Secretary that the Treasury has pre- pared the financial statements in accordance with gen- erally accepted accounting practice; and a statement that, in the opinion of the Minister, and of any other Minister designated by the Prime Minister for the purpose of this paragraph, the financial statements fairly reflect the consolidated financial position and op- erations of the Government reporting entity for the re- porting period.
(b) (c) (d) Section 29: substituted, on 1 July 1994, by section 22 of the Public Finance Amendment Act 1994 (1994 No 18).

Section 29 heading: amended, on 25 January 2005, by section 10(1) of the Public Finance Amendment Act 2004 (2004 No 113).

28 29 (1) (2) 68 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 3 s 29A Section 29(1): substituted, on 25 June 1997, by section 2 of the Treasurer (Statu- tory References) Act 1997 (1997 No 20).
Section 29(1): amended, on 12 December 2000, by section 5 of the Public Fi- nance Amendment Act 2000 (2000 No 78).

Section 29(2)(a): substituted, on 25 June 1997, by section 2 of the Treasurer (Statutory References) Act 1997 (1997 No 20).

Section 29(2)(b): amended, on 25 January 2005, by section 10(2) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 29(2)(d): substituted, on 25 January 2005, by section 10(3) of the Public Finance Amendment Act 2004 (2004 No 113).
29A Power of Secretary to obtain information (1) The Secretary may request any department, any departmental agency, or any entity referred to in section 27(3)(a) to (f), or any entity that manages an asset or liability of the Government reporting entity that is included in the annual financial state- ments referred to in section 27, to supply to the Secretary any information that is necessary to enable— (a) the preparation of those financial statements and the monthly financial statements referred to in section 31A; or the Minister or the Secretary to meet their obligations under section 29.
(b) (2) A request under subsection (1)— (3) (a) must be in writing; and (b) may state the date by which, and the manner in which, the information requested must be provided.

If a date is stated under subsection (2)(b), that date must be reasonable having regard to the time limits prescribed by this Act for presenting to the House of Representatives, or for pub- lishing, the annual or monthly financial statements of the Gov- ernment.
(4) A department, departmental agency, or entity to whom the re- quest is made must comply with the request.

Section 29A: substituted, on 25 January 2005, by section 11 of the Public Fi- nance Amendment Act 2004 (2004 No 113).

Section 29A(1): amended, on 18 July 2013, by section 17(1) of the Public Fi- nance Amendment Act 2013 (2013 No 50).

Section 29A(4): amended, on 18 July 2013, by section 17(2) of the Public Fi- nance Amendment Act 2013 (2013 No 50).
69 Part 3 s 29B Public Finance Act 1989 Reprinted as at 1 January 2014 29B Auditor-General to be auditor of Government reporting entity For the purposes of this Act, the Government reporting entity is a public entity as defined in section 4 of the Public Audit Act 2001 and, in accordance with that Act, the Auditor-General is its auditor.

Section 29B: inserted, on 1 July 2001, by section 53 of the Public Audit Act 2001 (2001 No 10).
Section 29B heading: amended, on 25 January 2005, by section 12(1) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 29B: amended, on 18 July 2013, by section 18 of the Public Finance Amendment Act 2013 (2013 No 50).

Section 29B: amended, on 25 January 2005, by section 12(2) of the Public Fi- nance Amendment Act 2004 (2004 No 113).
Audit report The Treasury must forward the annual financial statements of the Government to the Auditor-General not later than the end of the second month following the end of the financial year to which those statements relate.

The Auditor-General must— (a) audit the annual financial statements of the Govern- ment; and provide an audit report on those statements to the Treas- ury within 30 days after receiving them.
(b) Section 30: substituted, on 25 January 2005, by section 13 of the Public Finance Amendment Act 2004 (2004 No 113).

Annual financial statements must be presented to House of Representatives and published The Treasury must forward the annual financial statements of the Government and the audit report to the Minister.
The Minister must present the annual financial statements and the audit report, together with the statement of responsibility, to the House of Representatives— (a) not later than 10 working days after the Treasury re- ceives the audit report; or if Parliament is not in session, as soon as possible after the commencement of the next session of Parliament.
(b) 30 (1) (2) 31 (1) (2) 70 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 3 s 31A (3) (4) The Minister must arrange for the annual financial statements, the audit report, and the statement of responsibility to be pub- lished, on an Internet site maintained by or on behalf of the Treasury,— (a) as soon as practicable after they have been presented to the House of Representatives; but in any case, not later than 15 working days after the audit report is provided to the Treasury.
(b) The Secretary must ensure that the annual financial statements, the audit report, and the statement of responsibility remain available on that Internet site for inspection by members of the public for at least 5 financial years after the financial year to which the annual financial statements relate.

Section 31: substituted, on 25 January 2005, by section 13 of the Public Finance Amendment Act 2004 (2004 No 113).
Section 31 heading: amended, on 18 July 2013, by section 19(1) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 31(3): amended, on 18 July 2013, by section 19(2) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 31(4): inserted, on 18 July 2013, by section 19(3) of the Public Finance Amendment Act 2013 (2013 No 50).
(2) 31A Monthly financial statements of Government (1) The Treasury must, as soon as practicable after the end of each month (except the first 2 months and the last month) in each financial year, prepare consolidated financial statements for the Government reporting entity for the period of the financial year to the end of the month concerned.
The monthly financial statements must— (a) be prepared in accordance with generally accepted ac- counting practice; and include, in addition to those financial statements re- quired by generally accepted accounting practice,— (i) (b) a statement of borrowings that reflects the bor- rowing activities for the period of the financial year to the end of the month concerned: any additional information and explanations needed to fairly reflect the consolidated financial operations of the Government reporting entity for the period of the financial year to the end (ii) 71 Part 3 s 31A Public Finance Act 1989 Reprinted as at 1 January 2014 (iii) of the month concerned and the consolidated financial position at the end of that month: in relation to the financial statements required by generally accepted accounting practice and the statement required by subparagraph (i),— (A) budgeted figures for the period of the fi- nancial year to the end of the month con- cerned: comparative actual figures for the period of the previous financial year to the end of the corresponding month.
(B) The monthly financial statements prepared under subsection (1) must be for the same Government reporting entity as the annual financial statements prepared under section 27 for the financial year to which the monthly financial statements relate.
The Minister must arrange for the monthly financial state- ments to be published, on an Internet site maintained by or on behalf of the Treasury, not later than,— (a) in the case of the financial statements to the end of November, the last day of January in the following year; and in the case of the financial statements to the end of De- cember, the last day of February in the following year; and in any other case, 6 weeks after the end of the period to which they relate.
(b) (c) The Secretary must ensure that the monthly financial state- ments remain available on that Internet site for inspection by members of the public for at least 5 financial years after the fi- nancial year to which the monthly financial statements relate.

Compare: 1989 No 44 ss 30–31A Section 31A: substituted, on 25 January 2005, by section 13 of the Public Fi- nance Amendment Act 2004 (2004 No 113).
Section 31A(4): amended, on 18 July 2013, by section 20(1) of the Public Fi- nance Amendment Act 2013 (2013 No 50).

Section 31A(5): inserted, on 18 July 2013, by section 20(2) of the Public Fi- nance Amendment Act 2013 (2013 No 50).
(3) (4) (5) 72 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 3 s 32A 31B Publication, inspection, and purchase of financial statements of Government reporting entity [Repealed] Section 31B: repealed, on 18 July 2013, by section 21 of the Public Finance Amendment Act 2013 (2013 No 50).

32 Monthly cash flow statements [Repealed] Section 32: repealed, on 21 December 1992, by section 22 of the Public Finance Amendment Act 1992 (1992 No 142).
32A Additional reports in relation to non-departmental (1) (2) (3) appropriations This section applies if, in any financial year, an Appropriation Act— (a) lists an appropriation or a class of outputs within an appropriation for which expenses or capital expenditure are to be incurred other than by departments or Offices of Parliament; and states that the appropriation or class of outputs is, in whole or part, subject to this section.
(b) The Minister responsible for each appropriation or class of outputs must, within 3 months of the end of that financial year, prepare and present to the House of Representatives a report that complies with subsection (3).
The report must include— (a) a statement of service performance prepared in accord- ance with generally accepted accounting practice in relation to that appropriation or class of outputs that compares the service performance that was achieved with the service performance that was forecast to be achieved; or if the type and scope of the appropriation is such that a statement of service performance is inappropriate, a statement of the results produced or achieved in relation to that appropriation that compares those results with the results that were forecast to be produced or achieved from the expenses or capital expenditure.
(b) 73 Part 4 s 33 Public Finance Act 1989 Reprinted as at 1 January 2014 (4) The report must also compare the actual expenses or capital expenditure incurred in relation to that appropriation or class of outputs with the expenses or capital expenditure that were appropriated or forecast to be incurred.
(5) Despite subsection (3), the report does not need to include a statement of service performance in relation to a part of an appropriation or a class of outputs on which another entity is required to report in its statement of service performance if an Appropriation Act that lists the appropriation or class of outputs so provides.

The Minister responsible for the appropriation or class of out- puts must arrange for the report to be published if he or she is requested to do so by the Minister.
Compare: 1989 No 44 s 32A (6) Section 32A: substituted, on 25 January 2005, by section 15 of the Public Fi- nance Amendment Act 2004 (2004 No 113).

Part 4 Reporting by departments and departmental agencies Part 4: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Part 4 heading: amended, on 18 July 2013, by section 22 of the Public Finance Amendment Act 2013 (2013 No 50).
Extended meaning of department for purpose of Part 4 In this Part, the following activities, bodies, and statutory of- fices must be taken to be part of a department: (a) any activities, other than activities performed by a nat- ural person or separate legal entity, that are funded by way of appropriation administered by the department: any bodies or statutory offices, other than natural per- sons or separate legal entities, that are funded by way of appropriation administered by the department.
Section 33: replaced, on 18 July 2013, by section 23 of the Public Finance Amendment Act 2013 (2013 No 50).

(b) 33 74 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 4 s 35 34 (1) (2) Responsibilities of chief executives Heading: replaced, on 18 July 2013, by section 23 of the Public Finance Amend- ment Act 2013 (2013 No 50).
Responsibilities of chief executives: financial management of departmental matters The chief executive of a department— (a) is responsible to the responsible Minister for the finan- cial management, financial performance, and financial sustainability of the department; and (b) must comply with any lawful financial actions required by the Minister or the responsible Minister.
The chief executive of a department that administers an appro- priation— (a) is responsible to the appropriation Minister for what is achieved with departmental expenses and departmental capital expenditure under that appropriation; and is responsible for advising the appropriation Minister on the efficiency and effectiveness of any departmental expenses or departmental capital expenditure under that appropriation.
(b) (3) However, if a department other than the appropriation admin- istrator, or any departmental agency, incurs departmental ex- penses or departmental capital expenditure against the appro- priation at the direction of the appropriation Minister (under section 7C(2)(c)(i)), then the chief executive of that depart- ment or departmental agency, rather than the chief executive of the appropriation administrator, has the responsibility spe- cified in subsection (2)(a) in respect of that expenditure.
Section 34: replaced, on 18 July 2013, by section 23 of the Public Finance Amendment Act 2013 (2013 No 50).
35 Responsibilities of chief executives: financial management of non-departmental matters The chief executive of a department is responsible for— (a) the financial management of, and financial reporting on, appropriations for non-departmental expenses and non- departmental capital expenditure administered by the department; and 75 Part 4 s 36 Public Finance Act 1989 Reprinted as at 1 January 2014 (b) (c) (d) advising the appropriation Minister on the efficiency and effectiveness of expenditure under those appropri- ations; and the financial management of, and financial reporting on, assets, liabilities, and revenue managed by the depart- ment on behalf of the Crown; and advising the Minister responsible for those assets, liabil- ities, and revenue on their performance.
Section 35: replaced, on 18 July 2013, by section 23 of the Public Finance Amendment Act 2013 (2013 No 50).

Responsibilities of chief executives: reporting The chief executive of a department is responsible to the re- sponsible Minister for ensuring that the department complies with the reporting requirements imposed on the department by or under this or any other Act.
The chief executive of a departmental agency is responsible, to the Minister for the time being responsible for the performance of the departmental agency, for ensuring that the departmental agency complies with the reporting requirements imposed on the departmental agency by or under this or any other Act.

Section 36: replaced, on 18 July 2013, by section 23 of the Public Finance Amendment Act 2013 (2013 No 50).
Power of chief executives to obtain information Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
Power of chief executives to obtain information The chief executive of a department or departmental agency may request any specified person to supply to the chief ex- ecutive any information that is necessary to enable the chief executive to carry out his or her responsibilities in relation to the department or departmental agency (as applicable) under sections 34 to 36.
36 (1) (2) 37 (1) (2) A request under subsection (1)— (a) must be in writing; and (b) may state the date by which, and the manner in which, the information requested must be provided.

76 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 4 s 38 (3) If a date is stated under subsection (2)(b), that date must be rea- sonable, having regard to the time limits prescribed by this Act or any other Act for the department or departmental agency to discharge its reporting obligations.
(4) A specified person to whom the request is made must comply with the request.

(5) Nothing in this section limits or affects the privilege against (6) self-incrimination.

In this section, specified person means a person who is re- sponsible for any activities, bodies, or statutory offices that, under section 33, are taken to be part of a department.

Section 37: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
Section 37 heading: amended, on 18 July 2013, by section 24(1) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 37(1): replaced, on 18 July 2013, by section 24(2) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 37(3): amended, on 18 July 2013, by section 24(3) of the Public Finance Amendment Act 2013 (2013 No 50).
Reporting requirements—Information on future operating intentions Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

38 Departments must provide information on future operating intentions (1) A department must, before the start of each financial year and not later than the date specified by its responsible Minister, provide information on the department’s future operating in- tentions.
The information must relate to the forthcoming financial year and, for the purposes of section 40, to at least the next 2 finan- cial years.
(2) (3) However, if the Government has announced that the depart- ment is to be disestablished or significantly restructured dur- ing the period referred to in subsection (2), the department may, with the agreement of its responsible Minister and the 77 Part 4 s 39 Public Finance Act 1989 Reprinted as at 1 January 2014 (4) 39 (1) (2) Minister, provide information under subsection (1) for a lesser period.
The department must provide the information to its respon- sible Minister who must forward a copy of it to,— (a) in the case of an intelligence and security department, the members of the Intelligence and Security Com- mittee established under the Intelligence and Security Committee Act 1996 as soon as practicable after the introduction of the first Appropriation Bill that relates to the financial year; or in the case of any other department, the Minister in time for him or her to present the information, as required by section 39.
(b) Section 38: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Obligation to present and publish information on future operating intentions The Minister must present the information for each depart- ment (other than an intelligence and security department) to the House of Representatives immediately after he or she has delivered the Budget for the financial year to which the infor- mation relates, or at any time prior to that time on the same day.
The information presented under subsection (1) must— (a) be taken to have been presented by the responsible Min- ister concerned; and be accompanied by— (i) (b) a statement signed by the responsible Minister stating that the information is consistent with the policies and performance expectations of the Government; and if section 38(3) applies, the explanation of the responsible Minister as to why the information was not presented for the period referred to in section 38(2).
(ii) (3) As soon as practicable after the information is presented under subsection (1), the department concerned must publish the in- formation in accordance with the manner (if any)— 78 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 4 s 40 prescribed by regulations made under this Act; or (a) (b) specified in instructions issued under this Act.

Section 39: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
Section 39(1): amended, on 25 February 2012, by section 7 of the Public Fi- nance Amendment Act 2012 (2012 No 17).
40 Requirements for information on future operating intentions The information required under section 38 must set out and explain for the period to which it relates— (a) (b) (c) (d) the nature and scope of the department’s functions and intended operations; and the specific impacts, outcomes, or objectives that the department seeks to achieve or to contribute to through its operations; and how the department intends to— (i) perform its functions and conduct its operations to achieve those impacts, outcomes, or object- ives; and effectively manage those functions and oper- ations within a changeable operating environ- ment; and (ii) the main measures and standards that the department in- tends to use to assess and report on matters relating to the department’s future performance, including, with- out limitation, the following matters: (i) the impacts, outcomes, or objectives achieved or contributed to by the department (including pos- sible unintended impacts or negative outcomes): the cost-effectiveness of the interventions that the department delivers or administers: the department’s organisational health and cap- ability to perform its functions and conduct its operations effectively; and (ii) (iii) (e) any other matters that— (i) are reasonably necessary to achieve an under- standing of the department’s operating intentions and direction; or 79 Part 4 s 41 Public Finance Act 1989 Reprinted as at 1 January 2014 (ii) may be specified by the Minister or the respon- sible Minister for the purposes of subparagraph (i).
Section 40: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
(b) (c) (d) (e) Extra information required for first financial year The information required under section 38 must include, for the first financial year of the period to which it relates,— (a) forecast financial statements for the department that have been prepared in accordance with generally ac- cepted accounting practice; and a statement of all significant assumptions underlying the forecast financial statements; and any other information or explanations needed to fairly reflect the department’s forecast financial operations and financial position; and comparative budgeted and estimated actual figures for the previous financial year for the forecast financial statements; and a statement of forecast service performance that— (i) describes each class of outputs the department proposes to supply during the financial year; and includes measures and forecast standards of out- put delivery for each class of outputs; and identifies the expected revenue to be earned and the proposed output expenses to be incurred for each class of outputs; and has been prepared in accordance with generally accepted accounting practice; and (ii) (iii) (iv) (f) any other measures and standards necessary to assess the department’s performance at the end of the financial year.
The information for each class of outputs that is included in a statement of forecast service performance in accordance with subsection (1)(e) must be agreed by the Minister responsible for the appropriation that includes that class of outputs.

Section 41: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
41 (1) (2) 80 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 4 s 41G 41A Special provisions in relation to annual financial statements of school Board of Trustees [Repealed] Section 41A: repealed, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
41B Special provisions in relation to annual financial statements of Boards under Reserves Act 1977 [Repealed] Section 41B: repealed, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

41C Draft statement of intent [Repealed] Section 41C: repealed, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
41D Contents of statement of intent [Repealed] Section 41D: repealed, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

41E Completed statement of intent [Repealed] Section 41E: repealed, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

41F Laying of statement of intent before House of Representatives [Repealed] Section 41F: repealed, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
41G Power of responsible Minister to require Crown entity to modify statement of intent [Repealed] Section 41G: repealed, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

81 Part 4 s 41H Public Finance Act 1989 Reprinted as at 1 January 2014 41H Power of Crown entity to modify statement of intent [Repealed] Section 41H: repealed, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
41I Annual report of Crown entities named or described in Schedule 6 [Repealed] Section 41I: repealed, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

42 (1) (2) Information on future operating intentions must include statement of responsibility The information required under section 38 must also include a statement of responsibility that is— (a) (b) signed by the department’s chief executive; and countersigned by the department’s chief financial offi- cer.
(b) The statement of responsibility must comprise— (a) a statement of the chief executive’s responsibility for the information; and a statement that certifies that the information is consis- tent with— (i) (ii) existing appropriations; and the appropriations set out in the first Appropri- ation Bill that relates to the financial year in ques- tion.

Section 42: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
Reporting requirements—Annual reports Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
Departments must prepare annual reports 43 (1) As soon as practicable after the end of each financial year, each department must prepare a report on the operations of the department for that financial year, excluding operations on 82 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 4 s 44 which any departmental agency hosted by the department is required to report under section 43A.
(3) (2) Not later than 15 working days after receiving an audit report under section 45D, the department must provide the annual report and the audit report to its responsible Minister.

This section does not limit any provision in any other Act that requires the chief executive of a department to provide an an- nual report, but the chief executive need not provide a separate report under each enactment.
Section 43: replaced, on 18 July 2013, by section 25 of the Public Finance Amendment Act 2013 (2013 No 50).

43A Departmental agencies must prepare annual reports (1) As soon as practicable after the end of each financial year, each departmental agency must prepare a report on the operations of the departmental agency for that financial year.
(2) As soon as practicable after the end of the financial year, but not later than 15 working days after the audit date (as defined in section 44(6)), the departmental agency must provide the annual report and any applicable audit report to— (a) the Minister for the time being responsible for the per- formance of the departmental agency; and the responsible Minister for the departmental agency’s host department.
(b) (3) This section does not limit any provision in any other Act that requires the chief executive of a departmental agency to pro- vide an annual report, but the chief executive need not provide a separate report under each enactment.

Section 43A: inserted, on 18 July 2013, by section 25 of the Public Finance Amendment Act 2013 (2013 No 50).
Obligation to present and publish annual reports 44 (1) A responsible Minister must present to the House of Repre- sentatives— (a) the annual report of a department for which he or she is the responsible Minister and any applicable audit re- port; and 83 Part 4 s 44 Public Finance Act 1989 Reprinted as at 1 January 2014 (2) (b) the annual report of any departmental agency hosted by a department for which he or she is the responsible Minister and any applicable audit report.
The responsible Minister (or the Minister referred to in subsec- tion (3)(b), if applicable) must comply with subsection (1)— not later than 15 working days after the audit date; or (a) if Parliament is not in session, as soon as possible after (b) the commencement of the next session of Parliament.
(3) A Minister other than the responsible Minister may present an annual report and audit report (if any) to the House of Repre- sentatives if— (a) those reports are presented in a document that includes another report or other information (see subsection (5)); and that other Minister is responsible for presenting that other report or information.
(b) (4) A department or departmental agency must publish its annual report and any applicable audit report— (a) as soon as practicable after the annual report has been presented to the House of Representatives, but, if sub- section (2)(b) applies, not later than 15 working days after the audit date; and in accordance with the manner (if any)— (i) (ii) prescribed by regulations made under this Act; or specified in instructions issued by the Minister under section 80A.
(b) The annual report of a department or departmental agency may be presented or published in a document that includes any other report or information, whether or not that other report or information relates to the department or departmental agency, but only if each report or set of information is separately iden- tifiable within that document.
In this section,— audit date means,— (a) in the case of a department, the date on which the de- partment receives an audit report; and (5) (6) 84 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 4 s 45 (b) in the case of a departmental agency, the date on which the departmental agency’s host department receives an audit report audit report means an audit report under section 45D.

Section 44: replaced, on 18 July 2013, by section 25 of the Public Finance Amendment Act 2013 (2013 No 50).
Contents of departmental annual report 45 (1) A department’s annual report must contain the following in- (c) (b) (d) (e) (f) formation in respect of the financial year to which it relates: (a) information on operations that complies with subsec- tion (2); and a statement of service performance in accordance with section 45A; and the annual financial statements for the department in accordance with section 45B; and the statement of responsibility in accordance with sec- tion 45C; and the audit report provided under section 45D; and any other matters that relate to or affect the department’s operations that the department is required, has under- taken, or wishes to report on in its annual report.
The annual report must provide the information that is neces- sary to enable an informed assessment to be made of the de- partment’s performance during the financial year (including an assessment against the intentions, measures, and standards set out at the start of the financial year in the information on the de- partment’s future operating intentions in accordance with sec- tions 40 and 41).
(2) (2A) However, a department’s annual report need not include infor- mation that any departmental agency hosted by the department is required to include in its annual report under section 45AA.

The annual report must be dated and signed on behalf of the department by its chief executive.

Section 45: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
(3) Section 45(2A): inserted, on 18 July 2013, by section 26 of the Public Finance Amendment Act 2013 (2013 No 50).
85 Part 4 s 45AA Public Finance Act 1989 Reprinted as at 1 January 2014 45AA Contents of departmental agency annual report (1) The annual report of a departmental agency must contain the following information in respect of the financial year to which it relates: (a) (b) (c) (d) an assessment of the departmental agency’s operations; and an assessment of the departmental agency’s progress in relation to any of the host department’s future operating intentions that are relevant to the departmental agency; and information about the departmental agency’s manage- ment of its organisational health and capability; and any other matters that relate to or affect the departmen- tal agency’s operations that the departmental agency is required, has undertaken, or wishes to report on in its annual report.
(2) (3) The annual report of a departmental agency must identify the departmental agency’s host department.

The annual report must be dated and signed on behalf of the departmental agency by its chief executive.

Section 45AA: inserted, on 18 July 2013, by section 27 of the Public Finance Amendment Act 2013 (2013 No 50).
45A Statement of service performance A department’s statement of service performance must— (a) be prepared in accordance with generally accepted ac- counting practice; and describe each class of outputs supplied by the depart- ment during the financial year; and include, for each class of outputs,— (i) (b) (c) the standards of delivery performance achieved by the department, as compared with the forecast standards included in the department’s statement of forecast service performance at the start of the financial year; and the actual revenue earned and output expenses in- curred, as compared with the expected revenues and proposed output expenses included in the de- (ii) 86 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 4 s 45C partment’s statement of forecast service perform- ance at the start of the financial year.
Section 45A: substituted, on 25 January 2005, by section 16 of the Public Fi- nance Amendment Act 2004 (2004 No 113).

45B Annual financial statements (1) A department’s annual financial statements must be prepared (2) in accordance with generally accepted accounting practice.
In addition to the financial statements required by generally accepted accounting practice, a department’s annual financial statements must include— (a) (b) (c) (d) any other information or explanations needed to fairly reflect the department’s financial operations and finan- cial position; and the forecast financial statements prepared at the start of the financial year, for comparison with the actual finan- cial statements; and a statement of actual expenses and capital expenditure incurred against— (i) each appropriation administered by the depart- ment; and each class of outputs included in each output ex- pense appropriation; and (ii) a statement of unappropriated expenses and capital ex- penditure incurred in relation to the activities of, or ap- propriations administered by, the department, together with an explanation of the reasons for the unappropri- ated expenses and capital expenditure.
Section 45B: substituted, on 25 January 2005, by section 16 of the Public Fi- nance Amendment Act 2004 (2004 No 113).
45C Statement of responsibility (1) The statement of responsibility must include— (a) a statement of the responsibility of the department’s chief executive for the preparation of the financial state- ments and statement of service performance, and for the judgments made in them; and a statement of the responsibility of the department’s chief executive for establishing a system of internal (b) 87 Part 4 s 45D Public Finance Act 1989 Reprinted as at 1 January 2014 (c) control designed to provide reasonable assurance as to the integrity and reliability of financial reporting; and a statement that, in the opinion of the department’s chief executive, the financial statements and statement of ser- vice performance fairly reflect the financial position and operations of the department for the reporting period.
(2) The statement of responsibility must be— (a) (b) signed by the department’s chief executive; and countersigned by the department’s chief financial offi- cer.

Section 45C: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
45D Audit report (1) A department must forward to the Auditor-General— (a) (b) its annual financial statements, statement of service per- formance, and any other information that the Auditor- General has agreed, or is required, to audit within 2 months after the end of each financial year; and its annual report in a timely manner to enable the Audi- tor-General to review that report before providing the audit report required under subsection (2)(b).
The Auditor-General must— (a) (b) audit the statements referred to in subsection (1)(a); and provide an audit report on them to the department within 3 months after the end of each financial year.

Section 45D: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

(2) Miscellaneous Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
45E Application of this Part to intelligence and security departments This Part applies to an intelligence and security department, subject to subsection (2) and with the following (and any other necessary) modifications: (1) 88 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 4 s 45E (a) (b) (c) section 40 must be read as if section 40(e)(ii) did not include a reference to the Minister; and sections 41 and 45B(1) and (2)(a) and (b) must be read as if those sections referred to the forecast or actual fi- nancial statements, prepared in accordance with gener- ally accepted accounting practice, that, in the opinion of the responsible Minister, will fairly reflect the depart- ment’s forecast or actual financial operations and finan- cial position for that financial year; and section 4J of the New Zealand Security Intelligence Ser- vice Act 1969 or, as the case may be, section 12 of the Government Communications Security Bureau Act 2003 is substituted (subject to all necessary modifica- tions) for sections 43 and 44, except that— (i) the report presented to the House of Representa- tives under section 4J(3) of the New Zealand Se- curity Intelligence Service Act 1969 or section 12(3) of the Government Communications Se- curity Bureau Act 2003 must include a statement that provides a record of the total of the actual expenses and capital expenditure incurred by the department for that year against the department’s appropriation for that financial year (that state- ment being a substitute for the financial state- ments submitted to the responsible Minister and the Intelligence and Security Committee); and the department must publish the report as soon as practicable after it has been presented to the House of Representatives; and (ii) (2) (d) sections 45C and 45D must be read as if the references to a statement of service performance were omitted.
The following provisions do not apply to an intelligence and security department: (a) section 39 (which requires information provided by a department on its future operating intentions to be pre- sented to the House of Representatives and to be pub- lished): 89 Part 4 s 45F Public Finance Act 1989 Reprinted as at 1 January 2014 (b) (c) (d) (e) section 41(1)(e) (which requires the information on fu- ture operating intentions to include a statement of fore- cast service performance): section 41(2) (which provides that the information in- cluded in a statement of forecast service performance must be agreed by the Minister responsible for the ap- propriation): section 45(1)(b) (which requires a department’s annual report to contain a statement of service performance): section 45A (which relates to the statement of service performance).
Section 45E: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
45F Application of this Part to Offices of Parliament (1) This Part applies to an Office of Parliament, subject to sub- section (2) and with the following (and any other necessary) modifications: (a) (b) (c) (d) references to a department must be read as references to an Office of Parliament; and references to the Auditor-General must be read as refer- ences to an auditor appointed by the House of Represen- tatives to audit the financial statements and statements of service performance of Offices of Parliament; and section 38 must be read in the manner indicated in sec- tion 45G; and section 40(e) must be read as if an Office of Parliament were not required to comply with the requirement for the report on future operating intentions to set out and explain any other matters that may be specified by the Minister or responsible Minister, but were instead re- quired to have regard to those matters in the preparation of that report.
Section 39(2)(b) (which requires the information on future op- erating intentions to be accompanied by a statement that the information is consistent with the policy and performance ex- pectations of the Government) does not apply to an Office of Parliament.

(2) 90 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 4 s 45G Section 45F: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
45G This Part modified for purpose of applying Part to Offices (1) of Parliament For the purposes of section 45F(1)(c), this Part must be read as if, for section 38(1), there were substituted the following subsection: “(1) An Office of Parliament must,— “(a) before the start of each financial year and not later than the date on which the Office submits to the House of Representatives the information required under section 26E(1), prepare and provide to the Speaker and the House of Representatives draft information about its fu- ture operating intentions; and “(b) before the start of each financial year,— “(i) have regard to any comments on the draft infor- mation that it receives from the Speaker or a com- mittee of the House of Representatives that con- sidered the matter; and “(ii) prepare final information about its future operat- ing intentions after complying with subparagraph (i).” (2) For the purposes of section 45F(1)(c), this Part must be read as if, for section 38(4), there were substituted the following subsection: “(4) An Office of Parliament must provide the final information to the Speaker, who must arrange for the final information to be presented to the House of Representatives, as required by section 39.” Section 45G: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
Part 5 Special reporting requirements Part 5: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

91 Part 5 s 45H Public Finance Act 1989 Reprinted as at 1 January 2014 Subpart 1—Special annual reporting requirements Subpart 1: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
45H Application of subpart (1) This subpart applies to the following entities: (a) a department and any other entity that must provide an annual report that includes audited annual financial statements for presentation to the House of Representa- tives; and a departmental agency; and an entity that must provide audited annual financial statements (rather than an annual report) for presenta- tion to the House of Representatives.
(b) (c) (2) (3) For the purposes of subsection (1)(c), this subpart must be read as if, with all necessary modifications, every reference to an annual report were a reference to audited financial statements.
In this section and sections 45I to 45K, provide, in relation to a report or set of statements, means to comply with the re- quirements of an Act (including this Act) for the report or, as the case may be, the set of statements to be— forwarded to an entity’s auditor; or (a) provided to a Minister; or (b) (c) presented to the House of Representatives.

Section 45H: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
Section 45H(1): replaced, on 18 July 2013, by section 28(1) of the Public Fi- nance Amendment Act 2013 (2013 No 50).

Section 45H(2): amended, on 18 July 2013, by section 28(2) of the Public Fi- nance Amendment Act 2013 (2013 No 50).

45I First annual report for newly established entities (1) The Minister may (at the Minister’s discretion) exempt an en- tity that is established during the last 4 months of a financial year from the obligation to provide an annual report for that financial year.
92 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 5 s 45J (2) Despite subsection (1), an entity that administers an appropri- ation must, after the end of that financial year, provide the fol- lowing statements and report as if they were an annual report: the statements of expenses and capital expenditure re- (a) quired by section 45B(2)(c) and (d); and an audit report on those statements.
(b) (4) (3) An entity that is exempted under subsection (1) must, after the end of the entity’s first full financial year, provide an annual report that covers the period from the date on which the entity is established until the end of the entity’s first full financial year.
To avoid doubt, the annual report referred to in subsection (3) must contain the information required to be included in the entity’s annual report, except that the information must be in respect of the period referred to in that subsection.

Subsections (1) to (4) also apply to an entity that, during the last 4 months of a financial year, becomes subject to the re- quirement to provide an annual report for presentation to the House of Representatives.
Section 45I: replaced, on 18 July 2013, by section 29 of the Public Finance Amendment Act 2013 (2013 No 50).

(5) 45J Final annual report for disestablished entities (1) An entity that is disestablished must provide a final report for the period— (a) commencing at the start of the financial year in which the entity is disestablished; and ending on the date on which the entity is disestablished (the disestablishment date).
(b) (2) (3) The final report must be— (a) (b) prepared as if it were an annual report; and provided not later than 3 months after the disestablish- ment date.
If the Minister is satisfied that it is necessary or expedient to transfer some or all of the responsibility for providing a final report to another party,— (a) the Minister may approve the transfer of that responsi- bility; and 93 Part 5 s 45K Public Finance Act 1989 Reprinted as at 1 January 2014 (b) if the Minister does so, each party with responsibility for providing the final report must sign the statement of responsibility for the report in respect of the matters in the report for which the party is responsible.
Section 45J: replaced, on 18 July 2013, by section 29 of the Public Finance Amendment Act 2013 (2013 No 50).
45K Final annual report for entities that cease to be subject to requirement to provide annual report (2) (b) (1) An entity that ceases to be subject to the requirement to pro- vide an annual report for presentation to the House of Repre- sentatives must provide a final report for the period— (a) commencing at the start of the financial year in which the entity ceases to be subject to the requirement to pro- vide an annual report; and ending on the date on which the entity ceases to be sub- ject to the requirement to provide an annual report (the specified date).
The final report must be— (a) (b) prepared as if it were an annual report; and provided not later than 3 months after the specified date.

(3) Despite subsection (2)(b), the Minister may allow the entity to provide the final report later than 3 months after the specified date on any conditions that the Minister thinks fit.
If the Minister is satisfied that it is necessary or expedient to transfer some or all of the responsibility for providing a final report to another party,— (a) (4) the Minister may approve the transfer of that responsi- bility; and if the Minister does so, each party with responsibility for providing the final report must sign the statement of responsibility for the report in respect of the matters in the report for which the party is responsible.
(b) Section 45K: replaced, on 18 July 2013, by section 29 of the Public Finance Amendment Act 2013 (2013 No 50).
45L Minister may allow certain information to be included in another entity’s annual report if operations transferred This section applies if— (1) 94 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 5 s 45M (a) (b) (c) an entity is disestablished during the entity’s financial year; and that entity’s operations are transferred to 1 or more en- tities; and those operations are, at the time of the transfer, to be carried out on substantially the same terms by the entity to whom they are transferred.
(2) (3) The Minister may exempt the entity from whom operations are transferred from the requirement to include in its final report— (a) (b) The Minister may grant an exemption under subsection (2)— (a) a statement of service performance; and a full report on its operations.
on the condition that— (i) the information referred to in subsection (2)(a) and (b) is subsequently included, at the end of that financial year, in the annual report of the en- tity to whom the operations are transferred; and the entity to whom those operations are trans- ferred has not been exempted under section 45I; and (ii) (b) only if the Minister is satisfied that the inclusion of that information in the other entity’s annual report in accord- ance with paragraph (a)(i) does not unreasonably com- promise accountability for the performance of those op- erations during that financial year.
Section 45L: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Subpart 2—Application of Crown Entities Act 2004 to Schedule 4 organisations Subpart 2: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Subpart 2 heading: replaced, on 18 July 2013, by section 30 of the Public Fi- nance Amendment Act 2013 (2013 No 50).
45M Application of Crown Entities Act 2004 to Schedule 4 (1) organisations The following sections of the Crown Entities Act 2004, and any regulations that apply to the matters referred to in those 95 Part 5 s 45M Public Finance Act 1989 Reprinted as at 1 January 2014 (b) (c) (d) (e) (f) sections, apply to a Schedule 4 organisation as if the organisa- tion were a Crown entity under that Act: (a) sections 133 and 134 (which relate to supply of infor- mation): sections 154 to 156 (which relate to annual financial statements, statements of responsibility, and audit re- ports): section 158 (which relates to bank accounts): if there is a tick in a column of the table in Schedule 4 of this Act alongside the name or description of the or- ganisation, the section indicated in the heading of that column: if section 139 of the Crown Entities Act 2004 (which is the obligation to prepare a statement of intent) applies to the organisation under paragraph (d), sections 138 and 141 to 149 of that Act (which also relate to statements of intent): if section 150 of the Crown Entities Act 2004 (which is the obligation to prepare, present, and publish an an- nual report) applies to the organisation under paragraph (d), sections 151 (other than subsection (1)(b)), 152, and 154 to 157 of that Act (which also relate to annual re- ports).
The responsible Minister for a Schedule 4 organisation that is required, under subsection (1)(d), to produce a statement of service performance under section 153 of the Crown Entities Act 2004 must present that statement to the House of Repre- sentatives with the annual financial statements required under subsection (1)(b).
If a Schedule 4 organisation is established or regulated under an Act, the provisions applied by this section apply to the or- ganisation subject to any express negation or modification of the provision in that Act.

Section 45M: replaced, on 18 July 2013, by section 30 of the Public Finance Amendment Act 2013 (2013 No 50).
(2) (3) 96 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 5 s 45O 45N Exemptions from certain sections of Crown Entities Act (1) (2) 2004 for Schedule 4 organisations The Minister may exempt a Schedule 4 organisation, for 1 or more financial years or until further notice, from any of the re- quirements in sections 141, 151, and 152 of the Crown Entities Act 2004, other than the requirements in section 151(1)(c) to (e).
If the Minister considers that it is necessary or desirable to grant an exemption under this section, the Minister may grant the exemption— (a) (b) Section 45N: replaced, on 18 July 2013, by section 30 of the Public Finance Amendment Act 2013 (2013 No 50).

by notice in writing to the organisation; and on any conditions that the Minister thinks fit.
(2) 45O Special provisions relating to Reserves Boards (1) Despite section 45M(2), section 150(3) and (4) of the Crown Entities Act 2004 does not apply to a Reserves Board (as de- fined by section 2 of the Reserves Act 1977) and accordingly, the Minister of Conservation is not required to present the an- nual financial statements of a Reserves Board to the House of Representatives.
The Minister of Conservation must, in each year, send to each member of Parliament copies of the annual financial state- ments of a Reserves Board that manages a reserve in the mem- ber’s electoral district.

The copies must be sent not later than 1 month after the date on which an audit report is provided by the Auditor-General on those financial statements.
The chief executive of the Department of Conservation must ensure that information about the financial performance of Re- serves Boards is, in each year, included in the annual report of the Department of Conservation.

Section 45O: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
(4) (3) 97 Part 5AAA s 45OA Public Finance Act 1989 Reprinted as at 1 January 2014 Part 5AAA Non-listed companies in which the Crown is majority or sole shareholder Part 5AAA: inserted, on 18 July 2013, by section 31 of the Public Finance Amendment Act 2013 (2013 No 50).
45OA Application of Crown Entities Act 2004 to non-listed companies in which the Crown is majority or sole shareholder The following provisions of the Crown Entities Act 2004 apply to a Schedule 4A company as if the company were a Crown entity company under the Crown Entities Act 2004: (a) section 79 (which relates to formation and acquisition of shares): sections 81 and 82 (which require a constitution to be presented to the House of Representatives), except that section 81 must be read as if it required the constitution to contain a statement to the effect that the company is a company named in Schedule 4A of the Public Finance Act 1989: sections 83 and 84 (which relate to the shareholding Minister), except that, if the company is not 100% Crown-owned, the references in section 84 to a share- holding Minister must be read as if they were references to the shareholders: section 85 (which relates to the interface between the Crown Entities Act 2004 and the Companies Act 1993 and other Acts in respect of Crown entity companies): if the company is 100% Crown-owned,— (i) section 88 (which sets out the shareholding Min- isters’ role): (ii) section 88A (which sets out the monitor’s role): sections 89 to 92, 94, and 95 (which relate to appoint- ment, removal, and duties of board members), except that, if the company is not 100% Crown-owned, the ref- erence in section 94(1) to duties owed to the sharehold- ing Ministers must be read as a reference to duties owed to shareholders: sections 96, 97, and 99 (which relate
 to subsidiaries): (b) (c) (d) (e) (f) (g) (1) 98 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 5AAA s 45OA (h) (i) (j) (k) (l) (m) (n) (o) (p) section 100 (which relates to the acquisition of shares or interests in companies, trusts, and partnerships, etc): section 102 (which relates to the interface between the Crown Entities Act 2004 and the Companies Act 1993 and other Acts in respect of Crown entity subsidiaries): sections 107 to 111 and 113 (which relate to directions under section 107 of
 the Crown Entities Act 2004): section 114 (which relates to government directions): section 118 (which is the obligation to be a good em- ployer): sections 132 to 135 (miscellaneous provisions): sections 136 to 157 (which relate to reporting obliga- tions): section 158 (which relates to bank accounts): if there is a tick in a column of the table in Schedule 4A of this Act alongside the name of the company, the sec- tion indicated in the heading of that column.
In the case of a Schedule 4A company that is not 100% Crown- owned, subsection (1)(n) does not prevent the shareholders from agreeing on a process for minority shareholders to be in- volved in the process of preparing, reviewing, or amending the statement of intent or statement of performance expectations referred to in sections 136 to 157 of the Crown Entities Act 2004, but only if the agreed process is not inconsistent with those sections.
For the purposes of subsections (1) and (2), a Schedule 4A company is 100% Crown-owned if Ministers of the Crown, on behalf of the Crown, hold 100% of the issued ordinary shares in the capital of the company.

For the purposes of section 107(2)(a) of the Crown Entities Act 2004, Schedule 4A companies may be treated as a category of Crown entities.
If a Schedule 4A company is established or regulated under an Act, the provisions applied by this section apply to the com- pany subject to any express negation or modification of the provision in that Act.

Section 45OA: inserted, on 18 July 2013, by section 31 of the Public Finance Amendment Act 2013 (2013 No 50).
99 (2) (3) (4) (5) Part 5A s 45P Public Finance Act 1989 Reprinted as at 1 January 2014 Part 5A Mixed ownership model companies Part 5A: inserted, on 30 June 2012, by section 9 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).

Preliminary provisions Heading: inserted, on 30 June 2012, by section 9 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).
45P Definitions of mixed ownership model company and other (1) (2) terms In this Act, mixed ownership model company means a com- pany listed in Schedule 5.
In this Part,— 10% limit has the meaning set out in section 45S Crown means Her Majesty the Queen in right of New Zealand excess securities means those shares or voting securities in which a person has a relevant interest in excess of the 10% limit FMA means the Financial Markets Authority established under section 6 of the Financial Markets Authority Act 2011 relevant interest has the meaning given to it by sections 5 to 6 of the Securities Markets Act 1988 security has the meaning set out in paragraph (a) of the defin- ition of that term in section 2(1) of the Securities Markets Act 1988 voting right means a currently exercisable right to cast a vote at meetings of shareholders of a company (and, for this pur- pose, a right is treated as currently exercisable even if section 45T(1)(c) applies to prevent its exercise), other than a right to vote that is exercisable only in 1 or more of the following cir- cumstances: (a) during a period in which a payment or distribution (or part of a payment or distribution) in respect of the se- curity that confers the voting right is in arrears or some other default exists: on a proposal that affects rights attached to the security that confers the voting right: (b) 100 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 5A s 45R (c) (d) (e) on a proposal to put the company into liquidation: during the liquidation of the company: in respect of a special, immaterial, or remote matter that is inconsequential to control of the company voting security means a security that confers a voting right.
Section 45P: inserted, on 30 June 2012, by section 9 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).

45Q Treaty of Waitangi (Te Tiriti o Waitangi) (1) Nothing in this Part shall permit the Crown to act in a manner that is inconsistent with the principles of the Treaty of Wai- tangi (Te Tiriti o Waitangi).

For the avoidance of doubt, subsection (1) does not apply to persons other than the Crown.
Compare: 1986 No 124 s 9 (2) Section 45Q: inserted, on 30 June 2012, by section 9 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).

51% Crown control Heading: inserted, on 30 June 2012, by section 9 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).
45R Restriction on reduction of the Crown’s holding below 51% control (1) No Minister who is a shareholder in a mixed ownership model company may take any of the following actions if it would result in the Crown having less than 51% control of the com- pany: (a) sell or otherwise dispose of any shares in, or voting securities of, the company held in the Minister’s name: permit shares in, or voting securities of, the company to be allotted or issued to any person.
(b) (2) A mixed ownership model company must not issue, acquire, or redeem shares in, or voting securities of, the company if the issue, acquisition, or redemption would result in the Crown having less than 51% control of the company.
(3) An issue, acquisition, or redemption of shares or voting secur- ities is invalid and of no effect to the extent that it breaches subsection (2) (and, if more than 1 person has participated in 101 Part 5A s 45S Public Finance Act 1989 Reprinted as at 1 January 2014 (4) an issue of shares or voting securities affected by this provi- sion, the invalidity applies to the issue of shares or voting se- curities to those persons on a pro-rata basis).
The Crown has less than 51% control of a mixed ownership model company, for the purposes of this section, if the Crown holds less than— (a) (b) Section 45R: inserted, on 30 June 2012, by section 9 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).

51% of any class of issued shares in the company; or 51% of any class of voting securities of the company.
10% limit Heading: inserted, on 30 June 2012, by section 9 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).

45S 10% limit on holdings by persons other than the Crown (1) No person (other than the Crown) may have a relevant interest in shares in, or voting securities of, a mixed ownership model company that comprise more than— (a) (b) In this Part, 10% limit means the maximum relevant interest permitted under subsection (1).

Subsection (1) is subject to section 45U.


Section 45S: inserted, on 30 June 2012, by section 9 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).

10% of a class of issued shares in the company; or 10% of a class of voting securities of the company.
(3) (2) 45T Effect of exceeding 10% limit (1) Every person who contravenes section 45S must— (a) comply with any written notice that the person receives from the mixed ownership model company requiring that the person sell or otherwise dispose of interests in excess securities of the company, or take any other steps that are specified, for the purpose of ensuring that the 10% limit is not exceeded; and (b) without limiting paragraph (a), take the steps that are ne- cessary to ensure that the person is no longer in contra- vention of that section at the end of 60 days after the 102 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 5A s 45U (c) date on which the person becomes aware, or ought to have become aware, of the contravention; and while the person contravenes that section, not exercise or control the exercise of the voting rights attaching to the excess securities.
(2) A person has no right to be paid a dividend or other distribution in respect of the excess securities (despite the Companies Act 1993).

(3) An exercise of a voting right in contravention of subsection (1)(c) is of no effect and must be disregarded in counting the votes concerned.
(4) However, subsections (1)(c) and (3) do not invalidate a reso- lution if the votes concerned were counted by the company in good faith and without knowledge that the voting rights were exercised in contravention of subsection (1)(c).
(5) Nothing in section 45S or this section limits or prevents the constitution of a mixed ownership model company from pro- viding for the 10% limit and the consequences of a person exceeding the 10% limit (including to implement, or to add to, the consequences set out in this section), and the company may, in accordance with the constitution, determine which shares or voting securities are the excess securities for the pur- poses of its application of this section.
Compare: 1988 No 234 s 36U Section 45T: inserted, on 30 June 2012, by section 9 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).
45U Exemption from 10% limit for trustee corporations and nominee companies, etc (1) A person (A) may exceed the 10% limit without contravening section 45S if— (a) A complies with both of the following subparagraphs: A exceeds the 10% limit merely because A holds (i) securities on behalf of another person in the or- dinary course of business as a trustee corporation or nominee company; and section 31(1)(b) of the Securities Markets Act 1988 currently applies to A (and so exempts A (ii) 103 Part 5A s 45V Public Finance Act 1989 Reprinted as at 1 January 2014 as a trustee corporation or a nominee company under that Act); or (b) A exceeds the 10% limit merely because A is attributed with (under section 5B of the Securities Markets Act 1988) the relevant interests of another person who is exempt from the 10% limit under paragraph (a) or this paragraph.
(2) A person to whom subsection (1)(a) applies must— (3) (a) (b) keep under continuing review the transactions of all per- sons for whom A holds securities of the mixed owner- ship model company in A’s name; and inform the mixed ownership model company if any of those persons exceeds the 10% limit.

The exemption under this section does not apply to a person who is currently designated under section 45V as no longer exempt.
Compare: 1988 No 234 ss 31–32A Section 45U: inserted, on 30 June 2012, by section 9 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).
45V Power of FMA to remove exemption from 10% limit for (1) trustee corporations, nominee companies, etc The FMA may, by notice in the Gazette, designate a person as no longer exempt under section 45U if it is satisfied that— (a) the person has not complied with the condition in sec- tion 45U(2); or the exemption is being used for the purpose or purposes of circumventing, evading, or defeating the operation of the 10% limit taking into account the nature, substance, and economic effect of the interest or relationship or other facts (and not the mere form).
(b) (2) The FMA may, by notice in the Gazette, revoke a designation under this section.

(3) A notice under this section takes effect from the date stated in the notice (which must not be earlier than the date of the Gazette notice).
Before designating a person as no longer exempt, the FMA must— (4) 104 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 5A s 45W (5) (6) (a) (b) do everything reasonably possible on its part to advise the person of the proposed designation; and give the person a reasonable opportunity to make sub- missions to the FMA on the proposal.

Subsection (4) does not apply to a designation if the FMA con- siders that it is desirable in the public interest for the exemption to be removed urgently.
Failure to comply with subsection (4) does not invalidate the designation.

Compare: 1988 No 234 ss 48C, 48D Section 45V: inserted, on 30 June 2012, by section 9 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).

Continuing application of certain provisions Heading: inserted, on 30 June 2012, by section 9 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).
45W Certain provisions of State-Owned Enterprises Act 1986 (1) (2) (b) and other enactments continue to apply Sections 22 to 30(1) of the State-Owned Enterprises Act 1986, the provisions listed in subsection (2), and any Order in Coun- cil made at any time under any of those provisions continue to apply to a mixed ownership model company, despite it ceasing to be a State enterprise, as if— (a) the company were a State enterprise and a company named in Schedule 2 of the State-Owned Enterprises Act 1986; and the Minister of Finance and the Minister responsible for that company were the shareholding Ministers for the company.
The provisions are— (a) the definition of State forest land in section 2(1) and sections 24(1) and (6), 24B(4) to (6), and 61(2) of the Conservation Act 1987: section 11 of the Crown Pastoral Land Act 1998: sections 8A to 8H of the Treaty of Waitangi Act 1975.

(b) (c) Compare: 1998 No 99 s 3(2), (4) Section 45W: inserted, on 30 June 2012, by section 9 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).
105 Part 6 s 46 Public Finance Act 1989 Reprinted as at 1 January 2014 Part 6 Borrowing, securities, derivative transactions, investment, banking, and guarantees Part 6: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Subpart 1—Borrowing Subpart 1 heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
Limits on borrowing by the Crown Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

46 The Crown must not borrow except under statute Except as expressly authorised by any Act, it is not lawful for— (a) (b) Section 46: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

the Crown to borrow money; or any person to lend money to the Crown.
47 Minister may borrow on behalf of the Crown if in public interest The Minister, on behalf of the Crown, may borrow money if it appears to the Minister to be necessary or expedient in the public interest to do so.

The Minister may borrow money from any person, organisa- tion, or government (either within or outside New Zealand).
Except as otherwise provided in any Act, all monies received as a result of money being borrowed under subsection (2) must be paid into— a Crown Bank Account; or (a) (b) if the Minister directs, a Departmental Bank Account.

Section 47: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
(1) (2) (3) 106 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 6 s 49 48 49 (1) Power to borrow must not be delegated Despite anything in the State Sector Act 1988, the Minister must not delegate the Minister’s power to borrow money under section 47.

Section 48: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
The Crown not liable for debts of Crown entities, etc The Crown is not liable to contribute towards the payment of any debts or liabilities of— (a) a Crown entity, a Schedule 4 organisation, or a Sched- ule 4A company; or a subsidiary of a Crown entity, a Schedule 4 organisa- tion, or a Schedule 4A company; or any entity in which a Crown entity has an interest; or any other agency or body corporate that is controlled or wholly owned by the Crown.
(b) (c) (d) (2) However, this section does not apply in relation to— (a) (b) (c) (d) any sum the Crown is liable to contribute under any Act; or any sum the Crown is liable to contribute under any guarantee or indemnity given by the Minister under section 65ZD or the Crown Retail Deposit Guarantee Scheme Act 2009; or any sum the Crown is liable to pay a creditor of a Crown entity, Crown subsidiary, other agency, or other body corporate, by virtue of a cause of action that the creditor has against the Crown; or any sum the Crown is liable to pay to a creditor of the Reserve Bank of New Zealand.
Section 49: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 49(1)(a): amended, on 18 July 2013, by section 32(1) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 49(1)(b): amended, on 18 July 2013, by section 32(2) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 49(2)(b): amended, on 13 September 2009, by section 10(2) of the Crown Retail Deposit Guarantee Scheme Act 2009 (2009 No 30).
107 Part 6 s 50 Public Finance Act 1989 Reprinted as at 1 January 2014 Appointment of borrowing agents Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
50 Minister may appoint agents for purpose of borrowing (1) money The Minister may appoint 2 or more persons to act on the Min- ister’s behalf as joint borrowing agents for any of the following purposes: (a) (b) (c) borrowing money under this Act: issuing securities for money borrowed under this Act: any other purpose that is connected with the matters referred to in paragraphs (a) and (b).
(2) An appointment under subsection (1)— (a) must be made by warrant signed by the Minister; and (b) may be made in respect of— (i) (ii) (iii) (iv) a specified officer or person; or officers or persons of a specified class; or the holder for the time being of a specified office or appointment; or the holders for the time being of a class of offices or appointments.

The number of persons acting as borrowing agents under this section must not be less than 2.
The Minister may, at any time, by instrument signed by the Minister,— (a) revoke or amend a warrant of appointment under this section; or reappoint a person as a borrowing agent; or appoint another person to replace a borrowing agent— (i) (ii) who resigns or dies.

whose appointment is revoked; or (b) (c) The Minister may give notice of an appointment, or revocation of appointment, of a borrowing agent under this section by any means of communication that he or she thinks fit.
Section 50: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

(3) (4) (5) 108 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 6 s 53 51 Appointment of borrowing agents does not prevent exercise of power by Minister The appointment by the Minister of a borrowing agent under section 50 does not prevent the exercise by the Minister of a power conferred by any Act or rule of law.
Section 51: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Borrowings must be taken to be lawful 52 (1) Any money that appears to have been borrowed by the Crown under this Act must be taken to have been lawfully borrowed within the powers conferred by this Act, and the person from whom the money was borrowed may not question whether, or to what extent, authority has been given or occasion has arisen for the exercise of those powers.
The fact that a borrowing agent exercises any powers relating to money borrowed by the Crown is, in the absence of proof to the contrary, conclusive evidence of his or her authority to do so.

Section 52: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

(2) 52A Crown not to issue securities except under statute [Repealed] Section 52A: repealed, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
Borrowing agents may delegate powers 53 (1) A borrowing agent appointed under section 50 may delegate all or any of the powers conferred on the borrowing agent by the Minister under that section subject to— the consent of the Treasury; and (a) the requirement under section 50(3) that the number of (b) persons acting as borrowing agents must not be less than 2.
(2) The delegation may— (a) be made by a borrowing agent acting jointly or severally with any other borrowing agent; and be made to 1 or more persons; and (b) 109 Part 6 s 54 Public Finance Act 1989 Reprinted as at 1 January 2014 (c) be subject to any conditions that the delegating agent, or agents, think fit.

Section 53: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
Terms and conditions of borrowing Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

54 Minister may determine terms and conditions of borrowing For the purposes of section 47, the Minister may borrow money on any terms and conditions that the Minister thinks fit.

Section 54: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
Charge on public revenues All principal, interest, and other money that is payable in re- lation to money borrowed by the Crown is a charge on, and payable out of, the revenues of the Crown equally and rateably with all other general borrowing obligations of the Crown.

Section 55: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
Power to borrow by issue of series of similar securities The power conferred on the Minister under section 47 includes the power to borrow money— (a) by way of the issue of public securities in 1 or more ser- ies (for example, Treasury bills or commercial paper); and under 1 or more agreements between the Crown and 1 or more specified banks, financial institutions, or security dealers.

(b) Section 56: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
55 56 110 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 6 s 59 57 (1) Power to vary borrowings of the Crown The Minister may, at any time, vary the terms and conditions of borrowings of the Crown with the consent, if necessary, of the person from whom the money was borrowed.
(2) At the request of the person from whom money was borrowed, the Minister may— (a) direct that the principal, or any interest payable in re- spect of the principal, be paid at a place in New Zealand or elsewhere that is other than the place otherwise pro- vided; and (b) revoke the direction and give other directions.

Section 57: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
58 (1) (2) Conversion of money borrowed by the Crown The Minister may, at any time, convert any money borrowed by the Crown into any other money borrowed by the Crown.

In exercising a power under subsection (1), the Minister— (a) may do so on any terms and conditions that the Minister thinks fit; and (b) must, if necessary, do so with the consent of, as the case may be,— (i) (ii) the person from whom the money was borrowed; or the holder of the securities issued in respect of the money borrowed.
Section 58: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

58A Authority for the giving by the Crown of guarantees and indemnities [Repealed] Section 58A: repealed, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
59 Minister may appoint underwriters, managers, etc, for (1) borrowings of the Crown The Minister, on behalf of the Crown, may enter into an agree- ment with a bank, financial institution, or other person for the 111 Part 6 s 60 Public Finance Act 1989 Reprinted as at 1 January 2014 an underwriter; or a manager; or a dealer; or a trustee; or a registrar; or a paying, fiscal, or other agent.
purpose of appointing the bank, institution, or person to act in any of the following capacities for, or in connection with, the borrowing of money under this Act: (a) (b) (c) (d) (e) (f) The Minister may enter into the agreement on any terms and conditions that the Minister thinks fit.

Section 59: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
Payments relating to borrowings Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
Payment of principal and interest on money borrowed by the Crown Subject to the provisions of this Act,— (a) all principal payable in respect of money borrowed by the Crown— (i) must be paid without further authority than this section; and (b) (ii) must be paid from a Crown Bank Account or, if the Minister directs, a Departmental Bank Ac- count; and all borrowing expenses in respect of money borrowed by the Crown may be incurred without further appropri- ation, and must be paid without further authority, than this section.
Subsection (1) does not apply to money borrowed by the Crown under— (a) hire purchase agreements or agreements that are of the same or a substantially similar nature; and finance lease arrangements or arrangements that are of the same or a substantially similar nature.

(b) (2) 60 (1) (2) 112 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 6 s 61 Section 60: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
negotiating the borrowing of money by the Crown; or undertaking the borrowing; or 61 Expenses in respect of money borrowed by the Crown (1) Any expenses incurred in connection with any of the follow- ing matters may be incurred without further appropriation, and must be paid without further authority, than this section: (a) (b) (c) managing the borrowing; or servicing the borrowing; or (d) converting the borrowing; or (e) (f) repaying the borrowing.
Subsection (1) does not apply to expenses incurred in connec- tion with money borrowed by the Crown under— (a) hire purchase agreements or agreements that are of the same or a substantially similar nature; and finance lease arrangements or arrangements that are of the same or a substantially similar nature.
(2) (b) (3) In this section, expenses includes— (a) (b) duties, taxes, premiums, bonuses, fees, interests, and commissions; and any expenses incurred on personnel and equipment ne- cessary for the performance of functions set out in sub- section (1).

Section 61: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Subpart 2—Securities Subpart 2 heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
Limits on the Crown issuing securities Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

113 Part 6 s 62 Public Finance Act 1989 Reprinted as at 1 January 2014 62 The Crown must not issue securities except under statute Except as expressly authorised by any Act, the Crown must not issue securities (whether for money borrowed or any other purpose).
Section 62: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

63 Minister may issue securities for money borrowed by the (1) (2) Crown This section applies if, under any Act, money is borrowed by the Crown for any purpose.

The Minister, on behalf of the Crown, may issue securities for that money in any manner and form that the Minister thinks fit.
Section 63: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
Issue or variation of security taken to be lawful 64 (1) A security that appears to have been issued or varied under this Act must be taken to have been lawfully issued or varied, as the case may be, within the powers conferred by this Act, and neither the lender nor the holder may question whether, or to what extent, authority has been given or occasion has arisen for the exercise of those powers.
(2) However, subsection (1) applies only if the security has been issued or varied by— the Minister; or (a) a person acting in accordance with a delegation under (b) the State Sector Act 1988; or borrowing agents appointed for the purpose under sec- tion 50.

(c) The fact that a borrowing agent exercises any powers relating to a security is, in the absence of proof to the contrary, conclu- sive evidence of his or her authority to do so.
Section 64: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

(3) 114 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 6 s 65A Terms and conditions of securities Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
65 (1) (2) Securities must be in name of Sovereign This section applies if— (a) either of the following circumstances applies: (i) a security is taken for an advance of money by the Crown; or a security is given for money borrowed by the Crown; and (ii) (b) the Act that authorises the borrowing does not provide otherwise as to in whose name the security must be taken or given.
If this section applies,— (a) (b) the security must be taken or given in the name of the Sovereign; and the Minister may, on behalf of the Sovereign, do any of the following things in respect of or in connection with the security that could be done by the Sovereign: (i) exercise any powers, functions, and rights (in- cluding any power of disposal); and undertake and perform any liabilities.

Section 65: substituted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
(ii) 65A Power to vary public securities (1) The Minister may, with the consent of the holder that may be necessary, at any time vary the terms and conditions of a public security.

(2) At the request of the holder of a public security, the Minister may— (a) direct that the principal, or any interest payable in re- spect of the principal, be paid at a place in New Zealand or elsewhere that is other than the place otherwise pro- vided; and (b) revoke the direction and give other directions.
Section 65A: substituted, on 25 January 2005, by section 16 of the Public Fi- nance Amendment Act 2004 (2004 No 113).

115 Part 6 s 65B Public Finance Act 1989 Reprinted as at 1 January 2014 65B Issue of new public security on loss, damage, or (1) (2) destruction of public security The Minister may direct the issue of a new public security to replace a public security that is lost, damaged, or destroyed if the Minister is satisfied, on receiving evidence, of the loss, damage, or destruction.
The Minister may give a direction under subsection (1) subject to any conditions that the Minister thinks fit.

Section 65B: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
65C Execution of securities (1) A security that must be executed by the Sovereign for the pur- poses of this Act must be executed for and on behalf of the Sovereign by— (a) (b) the Minister; or a person acting in accordance with a delegation under section 28 or section 41 of the State Sector Act 1988; or borrowing agents appointed for the purpose under sec- tion 50.
(c) (2) For the purposes of this section, it is enough if a facsimile of the signature of a person who is required to execute a security under this section is reproduced on the security.

Section 65C: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Payments relating to securities Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
65D Payments under public securities (1) Subject to the provisions of this Act,— (a) all principal payable under a public security— (i) must be paid without further authority than this section; and (b) (ii) must be paid from a Crown Bank Account; and all borrowing expenses incurred under a public security may be incurred without further appropriation, and must be paid without further authority, than this section.
116 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 6 s 65E (2) In this section and section 65E, public security does not in- clude a guarantee or indemnity given under section 65ZD, the Crown Retail Deposit Guarantee Scheme Act 2009, or sec- tion 125I of the Weathertight Homes Resolution Services Act 2006.

Section 65D: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
Section 65D(2): amended, on 23 July 2011, by section 8(2) of the Weathertight Homes Resolution Services (Financial Assistance Package) Amendment Act 2011 (2011 No 50).
65E Expenses in respect of securities (1) Any expenses incurred in connection with any of the following functions may be incurred without further appropriation, and must be paid without further authority, than this section: (a) (b) (c) (d) In this section, expenses includes— (a) issuing a public security in respect of the Crown; or executing the public security; or redeeming the public security; or varying the public security.
(2) duties, taxes, premiums, bonuses, fees, and commis- sions; and any expenses incurred on personnel and equipment ne- cessary for the performance of functions set out in sub- section (1).

(b) Section 65E: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Subpart 3—Derivative transactions Subpart 3: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
Limits on the Crown entering into derivative transactions Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

117 Part 6 s 65F Public Finance Act 1989 Reprinted as at 1 January 2014 65F The Crown must not enter into derivative transactions Except as expressly authorised by any Act, the Crown must not enter (either directly or through an intermediary) into a derivative transaction.
Section 65F: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

65G Minister may enter into derivative transactions if in (1) (2) public interest The Minister, on behalf of the Crown, may enter into a deriva- tive transaction if it appears to the Minister to be necessary or expedient in the public interest to do so.

The Minister may enter into a derivative transaction on any terms and conditions that the Minister thinks fit.
Section 65G: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Payments relating to derivative transactions Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
65H Payments relating to derivative transactions of the Crown (1) Any money that is required to be paid by the Crown under a derivative transaction— (a) must be paid without further authority than this section; and (b) must be paid from a Crown Bank Account or, if the Minister directs, a Departmental Bank Account.
(2) Any expenses incurred in connection with any of the follow- ing matters may be incurred without further appropriation, and must be paid without further authority, than this section: (a) negotiating a derivative transaction; or (b) managing the derivative transaction; or servicing the derivative transaction; or (c) (d) making payments under the derivative transaction.

Section 65H: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
118 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 6 s 65J Subpart 4—Investment Subpart 4: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Investment of public money Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
65I (1) (2) (3) Investment of public money The Treasury may, without further appropriation than this sec- tion, invest any money held in a Crown Bank Account or a Departmental Bank Account— (a) on deposit with a bank (whether in New Zealand or else- where) approved by the Minister for the purpose; or in public securities; or in any other securities that the Minister may approve for the purpose.
(b) (c) The Treasury may— (a) invest the money for any period and on any terms and conditions that it thinks fit; and (b) sell, or convert into money, any of the securities.

The following must be paid into a Crown Bank Account or, if the Minister directs, a Departmental Bank Account: all interest received from the investment; and (a) all money received from— (b) (i) (ii) the redemption or maturity of the investment; or the sale or conversion of the securities.
Section 65I: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 65I(3): amended, on 18 July 2013, by section 33 of the Public Finance Amendment Act 2013 (2013 No 50).
65J Payment of expenses relating to investment (1) All costs, charges, and expenses incurred in connection with any of the matters specified in subsection (2)— (a) may be incurred without further appropriation, and must be paid without further authority, than this section; and (b) must be paid from a Crown Bank Account or, if the Minister directs, a Departmental Bank Account.
119 Part 6 s 65K Public Finance Act 1989 Reprinted as at 1 January 2014 (2) negotiating an investment referred to in section 65I; or placing the investment; or The matters are— (a) (b) (c) managing the investment; or servicing the investment; or (d) (e) converting the investment.

Section 65J: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 65J(1)(b): amended, on 7 July 2010, by section 4 of the Public Finance Amendment Act 2010 (2010 No 78).
Limits on lending by the Crown Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

65K The Crown must not lend money except under statute Except as expressly authorised by any Act, the Crown must not lend money to a person or an organisation.

Section 65K: replaced, on 18 July 2013, by section 34 of the Public Finance Amendment Act 2013 (2013 No 50).
65L Minister may lend money to persons or organisations if (1) (2) in public interest The Minister, on behalf of the Crown, may lend money to a person or organisation (whether the person or organisation is in New Zealand or elsewhere) if it appears to the Minister to be necessary or expedient in the public interest to do so.

The Minister may lend the money under subsection (1) on any terms and conditions that the Minister thinks fit.
Section 65L: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

65M Minister may lend money to foreign government (1) The Minister, on behalf of the Crown, may lend money to the Government of another country for the purpose of assisting— (a) (b) The Minister may lend the money under subsection (1) on any terms and conditions that the Minister thinks fit.

the economic development of that country; or the welfare of the inhabitants of that country.
(2) 120 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 6 s 65Q Section 65M: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

65N Authority to lend money includes authority to defer payments [Repealed] Section 65N: repealed, on 18 July 2013, by section 35 of the Public Finance Amendment Act 2013 (2013 No 50).
65O Repayment of money lent by the Crown The Minister may, in relation to any money lent by the Crown under section 65L or section 65M,— (a) accept all money payable under the loan in any currency that the Minister thinks fit; and agree at any time to the variation of any security issued in respect of the loan.

(b) Section 65O: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
65P Appropriation required for lending Any lending under section 65L or section 65M must be made from a capital expenditure appropriation, or other authority, approved by Parliament for the purpose.

Section 65P: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

(2) 65Q Securities relating to lending must be in name of Sovereign (1) A security taken in respect of a loan under section 65L or sec- tion 65M must be taken in the name of the Sovereign.
The Minister may, on behalf of the Sovereign, do any of the following things in respect of, or in connection with, the se- curity that could be done by the Sovereign: (a) exercise any powers, functions, and rights (including any power of disposal); and undertake and perform any liabilities.

(b) Section 65Q: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
121 Part 6 s 65R Public Finance Act 1989 Reprinted as at 1 January 2014 Subpart 5—Banking Subpart 5: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Crown Bank Accounts Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

65R Crown Bank Accounts (1) (2) (3) The Treasury may open, maintain, and operate 1 or more Crown Bank Accounts at a bank or banks that the Minister may direct.
The Minister may specify the terms and conditions under which a Crown Bank Account is to be operated.

To avoid doubt, a reference to the Crown Bank Account in any other enactment must, unless the context otherwise requires, be read as a reference to a Crown Bank Account.

Section 65R: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
Departmental Bank Accounts Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

65S Departmental Bank Accounts (1) A department may open, maintain, and operate 1 or more De- partmental Bank Accounts at a bank or banks that the Minister or the Treasury may direct.
(2) However, an intelligence and security department may open, maintain, and operate 1 or more Departmental Bank Accounts at banks other than those to which a direction under subsection (1) relates if the responsible Minister for that department has given his or her written authority for the department to do so.
The responsible Minister may give the authority under subsec- tion (2) only if he or she is satisfied that the authority is needed to protect the security interests of the intelligence and security department.

Section 65S: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
(3) 122 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 6 s 65U 65T Directions relating to operation of Departmental Bank (1) Accounts The Minister or the Treasury may give directions on the terms and conditions under which a Departmental Bank Account must be operated.

(2) However, in the case of an intelligence and security depart- ment, the power conferred by subsection (1) must be exercised only on a basis agreed between the Minister and the respon- sible Minister for that department.
Section 65T: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

General Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

65U Payment into Bank Accounts (1) All public money is the property of the Crown and must be lodged in either a Crown Bank Account or a Departmental Bank Account.
(2) A department that operates a Departmental Bank Account must, subject to any directions given under section 65T, pay into that Account— (a) any money that,— (i) in the case of an intelligence and security depart- ment, is disbursed to the department by the Treas- ury on a basis agreed between the chief executive of the department and the Treasury; or in the case of any other department, is disbursed to the department by the Treasury; and (ii) (b) (c) all receipts relating to departmental revenue; and all receipts resulting from the sale or disposal of assets by the department.
(3) Any other public money that is not paid into a Departmental Bank Account must be paid into a Crown Bank Account.
(4) Without limiting any provisions of this Act, any money that is paid into a Crown or Departmental Bank Account in error, or in excess of the amount required for the purpose for which it was paid, may be paid out of that Bank Account to the person 123 Part 6 s 65V Public Finance Act 1989 Reprinted as at 1 January 2014 who is entitled to the payment without further authority than this section.

Section 65U: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
65V Requirements for payment of money out of Bank Accounts (1) Money must not be paid out of a Crown Bank Account or a Departmental Bank Account, except in accordance with an appropriation, or other authority, by or under an Act.

(2) Despite subsection (1), money may be transferred— (a) (b) between Crown Bank Accounts; or between Crown Bank Accounts and Departmental Bank Accounts.

Section 65V: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
65W Powers of Minister or Treasury in relation to Crown Bank (1) Account and Departmental Bank Account The Minister or the Treasury may request from any person or organisation any information in relation to a Crown Bank Account or a Departmental Bank Account.

(3) (2) A person or organisation to whom a request for information is made under subsection (1) must supply that information.
The Minister may, at any time, close or suspend the operation of— (a) (b) a Crown Bank Account; or after consultation with the responsible Minister, a De- partmental Bank Account.
The Minister or the Treasury may— (a) issue directions about any public money held in a Crown Bank Account or a Departmental Bank Ac- count; and transfer money in a Crown Bank Account to another Crown Bank Account or a Departmental Bank Account; and after consultation with the responsible Minister, direct a department that operates a Departmental Bank Account (b) (c) (4) 124 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 6 s 65Y (5) to transfer money in that account to a Crown Bank Ac- count or another Departmental Bank Account.
In the case of an intelligence and security department, the powers conferred on the Minister or the Treasury by subsec- tions (3) and (4) must be exercised on a basis agreed between the Minister and the responsible Minister for that department.

Section 65W: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
65X Statement of accounts must be sent to Treasury or Auditor-General A bank at which public money is kept must send to the Treas- ury or the Auditor-General the statements of account relating to that money that the Treasury or the Auditor-General may require, as the case may be.

Section 65X: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
65Y Treasury must report on all expenses and capital (1) (2) (3) expenditure incurred with or without appropriation or other statutory authority The Treasury must, within the time required under subsection (3), prepare and submit to the Auditor-General a report that sets out— (a) all actual expenses and capital expenditure incurred against an appropriation, or other authority, by or under an Act; and all actual expenses and capital expenditure incurred in excess of, or without, an appropriation, or other author- ity, by or under an Act.
(b) The report must also set out, for each appropriation, or other authority, by or under an Act, the balance between— (a) the amount of expenses and capital expenditure author- ised to be incurred; and the amount that was actually incurred.

(b) The time required is 3 working days after the Treasury receives the information from departments that is required for the prep- aration of the monthly financial statements of the Government reporting entity under section 31A.
125 Part 6 s 65Z Public Finance Act 1989 Reprinted as at 1 January 2014 (4) (5) (6) To avoid doubt, this section does not limit the powers of the Auditor-General, under Part 4 of the Public Audit Act 2001, to access information from a public entity or any person.

In this section, a reference to authority includes a reference to an authority in advance of an appropriation.
In this section and sections 65Z and 65ZA, a reference to the Auditor-General is a reference to the Auditor-General in his or her capacity as Controller and Auditor-General.

Section 65Y: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
(1) 65Z Auditor-General may direct Ministers to report to House of Representatives in cases involving unlawful expenses, etc The Auditor-General may direct a Minister to report to the House of Representatives if the Auditor-General has reason to believe that expenses or capital expenditure for which that Minister is responsible have been incurred for a purpose that— is not within the scope, amount, or period of any appro- (a) priation, or other authority, by or under an Act; or (b) is, for any other reason, unlawful.
The report must set out the following details: (a) (2) the nature and extent of any alleged breach of the ap- propriation or other authority that the Auditor-General has reason to believe has occurred; and the events that gave rise to the alleged breach; and the remedial action taken or proposed to be taken to correct the breach and prevent its recurrence.
(b) (c) (3) If the Minister is of the opinion that there has not been a breach, the report— (a) must set out the details specified in subsection (2)(a) and (b); and (b) must also state— (i) (ii) that the Minister is of that opinion; and the Minister’s reasons for that opinion.
The Minister responsible for the expenses or capital expend- iture must— (a) comply with the direction within 20 working days after receiving it; or (4) 126 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 6 s 65ZA (b) (c) if Parliament is not in session,— (i) publish the information required by subsection (2) or, as the case may be, subsection (3) in the Gazette within 20 working days after receiving the direction; and present the information to the House as soon as possible after the commencement of the next ses- sion of Parliament; or (ii) if the direction is made after the end of the financial year,— (i) comply with the direction by including the infor- mation required by subsection (2) or, as the case may be, subsection (3) in the report under section 26C; or comply with the direction within 20 working days after receiving it.
(ii) Section 65Z: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 65Z(1)(a): replaced, on 18 July 2013, by section 36 of the Public Fi- nance Amendment Act 2013 (2013 No 50).

Section 65Z(1)(b): replaced, on 18 July 2013, by section 36 of the Public Fi- nance Amendment Act 2013 (2013 No 50).
65ZA Auditor-General may stop payments out of Bank (1) (2) Accounts This section applies if the Auditor-General has reason to be- lieve that any money to be paid out of a Crown Bank Account or a Departmental Bank Account may be applied for a purpose that— (a) is not within the scope, amount, or period of any appro- priation, or other authority, by or under an Act; or is, for any other reason, unlawful.
(b) If this section applies, the Auditor-General may direct the Min- ister, the Treasury or, as the case may be, the department con- cerned to stop payments out of that Crown Bank Account or Departmental Bank Account.

Section 65ZA: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 65ZA(1)(a): replaced, on 18 July 2013, by section 37 of the Public Finance Amendment Act 2013 (2013 No 50).
127 Part 6 s 65ZB Public Finance Act 1989 Reprinted as at 1 January 2014 Section 65ZA(1)(b): replaced, on 18 July 2013, by section 37 of the Public Finance Amendment Act 2013 (2013 No 50).

65ZB Application of this subpart to Offices of Parliament (1) Despite section 65S, an Office of Parliament may open, main- tain, and operate a Departmental Bank Account at a bank or banks that may be agreed between the Office and the Treasury.
(2) Despite section 65U, an Office of Parliament may pay receipts from borrowings into a Departmental Bank Account that it operates.
This subpart, if the context requires, applies to that Depart- mental Bank Account as if— (a) (3) (b) (c) (d) references to a department were references to an Office of Parliament; and the money disbursed by the Treasury under section 65U(2)(a) were disbursed on a basis agreed between the chief executive of the Office concerned and the Secretary; and the powers of the Minister or the Treasury under section 65W in respect of a Departmental Bank Account were to be exercised on a basis agreed between the Minister and the Speaker; and the investment of money held in a Departmental Bank Account operated by an Office of Parliament, in accord- ance with section 65I, were on a basis agreed between the Treasury and the Office concerned.
Section 65ZB: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Subpart 6—Guarantees and indemnities Subpart 6: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Limits on giving by the Crown of guarantees and indemnities Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
128 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 6 s 65ZE 65ZC Guarantee or indemnity by the Crown must not be given except under statute Except as expressly authorised by any Act, it is not lawful for any person to give a guarantee or indemnity on behalf of or in the name of the Crown.

Section 65ZC: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
65ZD Minister may give guarantee or indemnity if in public (1) (2) (3) (4) interest The Minister, on behalf of the Crown, may give, in writing, a guarantee or indemnity to a person, organisation, or govern- ment if it appears to the Minister to be necessary or expedient in the public interest to do so.
The Minister may— (a) give the guarantee or indemnity on any terms and con- ditions that the Minister thinks fit; and in the case of a guarantee, give the guarantee in respect of the performance or non-performance of any duties or obligations by a person, organisation, or government.
(b) If the contingent liability of the Crown under a guarantee or an indemnity given by the Minister under subsection (1) exceeds $10 million, the Minister must, as soon as practicable after giving the guarantee or indemnity, present a statement to the House of Representatives that the guarantee or indemnity has been given.

The statement may contain any details about the guarantee or indemnity that the Minister considers appropriate.
Section 65ZD: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 65ZD(2)(b): amended, on 18 July 2013, by section 38(1) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 65ZD(3): replaced, on 18 July 2013, by section 38(2) of the Public Finance Amendment Act 2013 (2013 No 50).
65ZE Departments may give guarantee or indemnity specified in regulations if in public interest (1) A department, on behalf of or in the name of the Crown, may give, in writing, a guarantee or indemnity of a type specified in 129 Part 6 s 65ZF Public Finance Act 1989 Reprinted as at 1 January 2014 regulations made under section 81 to a person or organisation if it appears to the department to be necessary or expedient in the public interest to do so.
(2) A department must give the guarantee or indemnity on the (3) (4) (5) prescribed terms and conditions (if any).

If the contingent liability of the Crown under a guarantee or an indemnity given by a department under subsection (1) ex- ceeds $10 million, the responsible Minister must, as soon as practicable after the guarantee or indemnity is given, present to the House of Representatives a statement that the guarantee or indemnity has been given.
The statement may contain any details about the guarantee or indemnity that the responsible Minister considers appropriate.

This section does not limit section 65ZD.

Section 65ZE: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 65ZE(3): replaced, on 18 July 2013, by section 39 of the Public Finance Amendment Act 2013 (2013 No 50).
Other provisions relating to guarantees and indemnities Heading: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

65ZF Recovery of money paid under guarantee (1) Any money paid by the Crown under a guarantee given under section 65ZD or section 65ZE constitutes a debt due to the Crown from the person, organisation, or government for whom the guarantee was given.
(2) A debt referred to in subsection (1)— is recoverable in any court of competent jurisdiction: (a) (b) may be paid over any period of time and on any terms and conditions that the Minister thinks fit: (c) may be written down by the Minister (except that the debt must not be written down below its market value other than in accordance with an appropriation, or other authority, by or under an Act).

This section does not limit or affect any other rights that the Crown may have as guarantor.
(3) 130 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 7 s 66 Section 65ZF: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).
65ZG Payments in respect of guarantees or indemnities Any money paid by the Crown under a guarantee or indem- nity given under section 65ZD and any expenses incurred by the Crown in relation to the guarantee or indemnity may be incurred without further appropriation, and must be paid with- out further authority, than this section.
Compare: 1989 No 44 ss 18, 20, 23, 33(2), (3), 34, 44A(4), 44D, 46–48, 50–65, 70F Section 65ZG: inserted, on 25 January 2005, by section 16 of the Public Finance Amendment Act 2004 (2004 No 113).

Part 7 Trust money Part 7 heading: substituted, on 25 January 2005, by section 17 of the Public Finance Amendment Act 2004 (2004 No 113).
66 (1) Trust money The following money shall be deemed to be trust money: (a) money that is deposited with the Crown pending the completion of a transaction or dispute and which may become repayable to the depositor or payable to the Crown or any other person: all money that is paid into court for possible repayment to the payee or a third party, by virtue of any Act, rule, or authority whatsoever: all money that is paid to the Crown in trust for any pur- pose: (b) (c) (d) money that belongs to or is due to any person and is col- lected by the Crown pursuant to any agreement between the Crown and that person: unclaimed money that is due to or belongs to any person and is deposited with the Crown.
(e) (2) All trust money held by the Crown shall be accounted for sep- arately from public money.

(3) All trust money shall be the responsibility of the Treasury on behalf of the Crown.

131 Part 7 s 67 Public Finance Act 1989 Reprinted as at 1 January 2014 (4) (5) 67 (1) The Treasury may appoint a department or any agent to man- age some or all trust money on such terms and conditions as the Treasury from time to time determines.
The Crown or the agent appointed under subsection (4) may charge a fee for the management of trust money at such rate or rates as the Minister from time to time determines.

Such fee shall be payable from trust money held.


Compare: 1977 No 65 ss 42, 52 Establishment of bank accounts for trust money There shall be established at any bank or banks approved by the Minister a bank account or accounts to be known as Trust Bank Accounts, to be operated and maintained by the Treasury or by a department or any agent appointed by the Treasury.

(3) (2) All trust money must, as soon as practicable after being iden- tified as trust money, be lodged in a Trust Bank Account.
The Minister or the Treasury may give directions as to any terms and conditions under which a Trust Bank Account may be operated.

Section 67(2): replaced, on 18 July 2013, by section 40 of the Public Finance Amendment Act 2013 (2013 No 50).
68 (1) Investment of trust money The Treasury or any agent of the Crown appointed by the Treasury for the purpose may from time to time invest any trust money held by the Crown for such periods and on such terms and conditions as it thinks fit— (a) on deposit with any bank in New Zealand or any bank outside New Zealand approved by the Minister for the purpose; or in public securities; or in such other securities as the Minister may from time to time approve for the purpose— (b) (c) and may from time to time sell or convert into money any such securities.
(2) All proceeds of the investments and all money received from any sale or conversion of securities shall be deemed to be trust money.

132 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 7 s 70 (3) No person shall have any right of action against the Crown or any agent of the Crown in respect of any investment or non-investment of any money to which this section relates.
Payment of interest on trust money 69 (1) When any trust money held by the Crown becomes repayable to the depositor or payable to any other person entitled thereto, where it is practicable to do so there shall be added the amount of interest (if any) certified by the Treasury to have been earned thereon.
(2) Where interest has been earned on any trust money but it is not practicable to add that interest to the trust money to be repaid to the depositor or to be paid to any other person entitled thereto, that interest shall be deemed to be public money and shall be transferred to the Crown Bank Account.

Section 69(2): added, on 1 July 1994, by section 48 of the Public Finance Amendment Act 1994 (1994 No 18).
Unclaimed trust money 70 (1) Any trust money that is unclaimed for a period of 1 year (or such longer period as the Minister directs) after having be- come repayable to the depositor or payable to any other per- son entitled thereto, shall, together with interest (if any) added thereto pursuant to section 69, be deemed to be public money and shall be transferred to the Crown Bank Account.
If any person claims any trust money which has been deemed to be public money under this section, and establishes a claim to the satisfaction of the Treasury, the money shall be paid to that person out of the Crown Bank Account without further appropriation than this section.

(2) Part 7A Security and intelligence departments [Repealed] Part 7A: repealed, on 25 January 2005, by section 18 of the Public Finance Amendment Act 2004 (2004 No 113).
133 Part 7A s 70A Public Finance Act 1989 Reprinted as at 1 January 2014 70A Interpretation [Repealed] Section 70A: repealed, on 25 January 2005, by section 18 of the Public Finance Amendment Act 2004 (2004 No 113).

Appropriations [Repealed] Heading: repealed, on 25 January 2005, by section 18 of the Public Finance Amendment Act 2004 (2004 No 113).
70B Nature of appropriation required [Repealed] Section 70B: repealed, on 25 January 2005, by section 18 of the Public Finance Amendment Act 2004 (2004 No 113).

70C Estimates [Repealed] Section 70C: repealed, on 25 January 2005, by section 18 of the Public Finance Amendment Act 2004 (2004 No 113).

Banking and investment [Repealed] Heading: repealed, on 25 January 2005, by section 18 of the Public Finance Amendment Act 2004 (2004 No 113).
70D Departmental Bank Accounts [Repealed] Section 70D: repealed, on 25 January 2005, by section 18 of the Public Finance Amendment Act 2004 (2004 No 113).

70E Payment into Bank Accounts [Repealed] Section 70E: repealed, on 25 January 2005, by section 18 of the Public Finance Amendment Act 2004 (2004 No 113).
70F Power of Minister or Treasury in relation to Crown Bank Account and Departmental Bank Account [Repealed] Section 70F: repealed, on 25 January 2005, by section 18 of the Public Finance Amendment Act 2004 (2004 No 113).

134 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 8 s 71AA Reporting [Repealed] Heading: repealed, on 25 January 2005, by section 18 of the Public Finance Amendment Act 2004 (2004 No 113).
70G Annual financial statements [Repealed] Section 70G: repealed, on 25 January 2005, by section 18 of the Public Finance Amendment Act 2004 (2004 No 113).

70H Half-yearly financial statements [Repealed] Section 70H: repealed, on 21 December 1992, by section 35 of the Public Fi- nance Amendment Act 1992 (1992 No 142).

70I Tabling of financial statements [Repealed] Section 70I: repealed, on 25 January 2005, by section 18 of the Public Finance Amendment Act 2004 (2004 No 113).
70J Information to be provided to Treasury [Repealed] Section 70J: repealed, on 25 January 2005, by section 18 of the Public Finance Amendment Act 2004 (2004 No 113).

70K Treasury instructions [Repealed] Section 70K: repealed, on 25 January 2005, by section 18 of the Public Finance Amendment Act 2004 (2004 No 113).

Part 8 General provisions Part 8 heading: substituted, on 25 January 2005, by section 19 of the Public Finance Amendment Act 2004 (2004 No 113).
71AA Delegation of Secretary’s powers (1) The Secretary may delegate to the chief executive of a depart- ment (whether or not the department is listed in Schedule 1 of the State Sector Act 1988) any power— 135 Part 8 s 71 Public Finance Act 1989 Reprinted as at 1 January 2014 (a) (b) conferred on the Secretary by this Act; or conferred on the Minister by this Act and delegated to the Secretary by the Minister.
(3) (2) Without limiting subsection (1), the Secretary may delegate to the persons referred to in subsection (3) any power conferred on the Secretary by Part 6.

The persons are— (a) (b) (c) the Reserve Bank of New Zealand; or the Governor of the Reserve Bank of New Zealand; or the Deputy Governor of the Reserve Bank of New Zealand.

The Secretary’s power to delegate under this section is in add- ition to the Secretary’s powers under section 41(1) of the State Sector Act 1988.
Section 41(2) to (7) of the State Sector Act 1988 applies in relation to a delegation under this section as if it were a dele- gation made under section 41(1) of that Act.

Section 71AA: inserted, on 25 January 2005, by section 20 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 71AA(1)(b): replaced, on 18 July 2013, by section 41 of the Public Finance Amendment Act 2013 (2013 No 50).
Payments on behalf of governments and international organisations The Minister may from time to time, without further appro- priation than this section, pay out of the Crown Bank Account any money required for the purpose of making payments on behalf of the government of any other country, the United Na- tions, or any other international organisation.
Payments shall not be made under this section unless the Min- ister is satisfied that arrangements have been made for the government or other organisation concerned to repay any pay- ments made on its behalf.
Compare: 1977 No 65 s 101 Payments on behalf of local authorities The Minister may from time to time, out of money appropri- ated by Parliament for the purpose, pay out of the Crown Bank Account any money required for the purpose of defraying any (4) (5) 71 (1) (2) 72 (1) 136 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 8 s 73 charges or expenditure incurred by or on behalf of any local authority.
(2) All payments made under this section shall be repayable on such terms and conditions as the Minister thinks fit.

(3) Notwithstanding subsection (2), any expense incurred or sum of money paid by the Crown on behalf of, or at the request of, a local authority, and any money owing to the Crown by a local authority, may be deducted by the Crown from any subsidies or other money accruing or payable by the Crown to the local authority.
Compare: 1977 No 65 s 102 73 (1) (2) Payment of fines to local authorities and other organisations that conduct prosecutions Subject to subsection (2) and any other provision of any Act, where a local authority, or other organisation (other than a de- partment, an Office of Parliament, a Crown entity, a Sched- ule 4 organisation, or a Schedule 4A company) that is specif- ically empowered to do so by any Act, or any person on behalf thereof, prosecutes a person in a court of law in respect of an offence and the prosecution results in the imposition of a fine, the amount of the fine recovered shall be paid to the local au- thority or other organisation.
There shall be deducted from every amount payable to a local authority or other organisation under subsection (1) a sum equal to 10% thereof, and this sum shall be credited to the Crown Bank Account or a Departmental Bank Account: provided that, where any money awarded by a court in respect of any loss or damage is recovered as a fine, no deduction under this subsection shall be made in respect of that money.
Compare: 1977 No 65 s 103 Section 73(1): amended, on 18 July 2013, by section 42 of the Public Finance Amendment Act 2013 (2013 No 50).

Section 73(1): amended, on 25 January 2005, by section 21 of the Public Fi- nance Amendment Act 2004 (2004 No 113).

Section 73(2): amended, on 21 December 1992, by section 37(2) of the Public Finance Amendment Act 1992 (1992 No 142).
137 Part 8 s 74 Public Finance Act 1989 Reprinted as at 1 January 2014 Unclaimed money 74 (1) Unless otherwise provided in any Act, at the end of each fi- nancial year any money in any bank account of a department, Office of Parliament, Crown entity, Schedule 4 organisation, or Schedule 4A company that has remained unclaimed for a period of 6 years from the date it was payable to the person entitled thereto, shall be deposited with the Treasury.
(2) Notwithstanding section 66, all money deposited with the Treasury under subsection (1) shall be public money and be paid into the Crown Bank Account.

(3) When money is deposited with the Treasury under subsection (1), the department, Office of Parliament, Crown entity, or- ganisation, or company concerned shall supply the Treasury with such particulars concerning the money as the Treasury requires.
(5) (4) No person shall have any right of action against the Treasury or the Crown in respect of any investment or non-investment of any money to which this section relates.

If any person claims any money deposited with the Treasury under subsection (1) and establishes a claim to the satisfaction of the Treasury, the money shall be paid to the person out of the Crown Bank Account without further appropriation than this section.
(6) Where any money paid to any claimant under this section, is afterwards claimed by any other person, neither the Treasury nor the Crown shall be under any liability to such other person by reason of having paid money to the first claimant.

Compare: 1977 No 65 s 108 Section 74(1): amended, on 18 July 2013, by section 43(1) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 74(1): amended, on 25 January 2005, by section 22 of the Public Fi- nance Amendment Act 2004 (2004 No 113).
Section 74(3): amended, on 18 July 2013, by section 43(2) of the Public Finance Amendment Act 2013 (2013 No 50).
75 Minister may exercise powers relating to bona vacantia (1) Where any property or right belongs to the Sovereign as bona vacantia, the Minister may from time to time on behalf of the Sovereign, exercise any power, function, and right (includ- 138 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 8 s 76 (2) ing any power of disposal) and undertake and perform any obligation, in respect of or in connection with the property or right that could be exercised, undertaken, or performed by the Sovereign.
If the Minister or any department or departmental agency, on the application of any person, performs an act under subsec- tion (1), the Minister, department, or departmental agency is entitled to charge the person all reasonable fees and costs in- curred.

(3) Nothing in subsection (1) or (2) limits any other enactment or (4) (5) (6) rule of law.
If the Minister, a department, or a departmental agency per- forms an act under subsection (1) that involves the transfer or disposal of property or a right, that transfer or disposal may be made without further authority than this section.

If the Minister, a department, or a departmental agency per- forms an act under subsection (1) that involves the spending of public money, that money may be paid out of a Crown Bank Account without further authority than this section.
Subsections (4) and (5) do not affect the validity of anything done before those subsections come into force.

Compare: 1977 No 65 s 108; 1980 No 7 s 7 Section 75(1): amended, on 25 January 2005, by section 23 of the Public Fi- nance Amendment Act 2004 (2004 No 113).

Section 75(2): replaced, on 18 July 2013, by section 44(1) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 75(3): amended, on 18 July 2013, by section 44(2) of the Public Finance Amendment Act 2013 (2013 No 50).
Section 75(4): inserted, on 18 July 2013, by section 44(3) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 75(5): inserted, on 18 July 2013, by section 44(3) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 75(6): inserted, on 18 July 2013, by section 44(3) of the Public Finance Amendment Act 2013 (2013 No 50).
76 (1) Offences Every person commits an offence against this Act who, with- out reasonable excuse,— (a) refuses or fails to produce any information that is in that person’s possession or under that person’s control in re- 139 Part 8 s 77 Public Finance Act 1989 Reprinted as at 1 January 2014 lation to the financial management, financial perform- ance, or banking activities of a department or in relation to the management or control of any Crown asset or li- ability when required to do so pursuant to this Act; or resists or obstructs any person acting in the discharge of that person’s functions or duties or in the exercise of that person’s powers under this Act.
(b) (2) Every person commits an offence against this Act who,— (a) without reasonable excuse, refuses or neglects to pay any public money into a Crown Bank Account or a De- partmental Bank Account; or (b) without reasonable excuse, refuses or neglects to pay any trust money into a Trust Bank Account; or (c) makes any statement or declaration, or gives any infor- mation or certificate, required by or pursuant to this Act, knowing it to be false or misleading; or does any act for the purpose of procuring for that person or for any other person or organisation— (i) the improper payment of any public money or trust money; or the improper use of any public financial resource.
(ii) (d) Compare: 1977 No 65 s 109 Section 76(2): amended, on 18 July 2013, by section 45 of the Public Finance Amendment Act 2013 (2013 No 50).

Penalties for offences Every person who commits an offence against subsection (1) of section 76 is liable on conviction,— (a) in the case of an individual, to a fine not exceeding $2,000: in the case of a person or organisation other than an individual, to a fine not exceeding $5,000.
(b) Every person who commits an offence against subsection (2) of section 76 is liable on conviction,— (a) in the case of an individual, to imprisonment for a term not exceeding 12 months, or to a fine not exceeding $5,000: 77 (1) (2) 140 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 8 s 79 (b) in the case of a person or organisation other than an individual, to a fine not exceeding $15,000.
Compare: 1977 No 65 s 110 Section 77(1): amended, on 1 July 2013, by section 413 of the Criminal Pro- cedure Act 2011 (2011 No 81).

Section 77(2): amended, on 1 July 2013, by section 413 of the Criminal Pro- cedure Act 2011 (2011 No 81).

Time for commencing proceedings Despite anything to the contrary in section 25 of the Criminal Procedure Act 2011, the limitation period in respect of an of- fence against this Act ends on the date that is 2 years after the date on which the offence was committed.
Section 78: replaced, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Information to be provided to Treasury The Treasury may from time to time request information from a department in relation to the financial management, finan- cial performance, or banking activities of the department or in relation to the management or control of any Crown asset or liability.
78 79 (1) (2) Any request for information made in accordance with subsec- tion (1) shall be complied with by the department.
(3) Despite subsections (1) and (2), the Treasury may request in- formation under this section about an intelligence and security department— (a) only if the Secretary and the chief executive of that de- partment agree and only to the extent of that agreement; or if there is no agreement under paragraph (a), only if the Minister and the responsible Minister jointly decide that the Treasury may make the request.
(b) Compare: 1977 No 65 s 111 Section 79(3): added, on 25 January 2005, by section 24 of the Public Finance Amendment Act 2004 (2004 No 113).
141 Part 8 s 80 Public Finance Act 1989 Reprinted as at 1 January 2014 80 (1) Treasury instructions Subject to the provisions of this Act and of any regulations made under this Act, the Treasury may— (a) issue instructions to departments or departmental agen- cies for the purpose specified in section 81(1)(a); and issue instructions to departments for all or any of the purposes specified in section 81(1)(ab), (b), (bc), (bd), and (c) to (e).
(b) (2) A chief executive of a department or departmental agency must comply with any instructions issued under this section to the extent that the instructions apply to that department or departmental agency.
(3) Despite subsections (1) and (2), the Treasury may issue in- structions under this section to an intelligence and security de- partment— (a) only if the Secretary and the chief executive of that de- partment agree and only to the extent of that agreement; or if there is no agreement under paragraph (a), only if the Minister and the responsible Minister jointly decide that the Treasury may issue the instructions.
(b) (4) The Treasury must publish the instructions on the Internet as soon as practicable after issuing them.

Section 80: substituted, on 25 January 2005, by section 25 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 80(1): replaced, on 18 July 2013, by section 46(1) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 80(2): amended, on 18 July 2013, by section 46(2) of the Public Finance Amendment Act 2013 (2013 No 50).
80A Minister of Finance instructions (1) Subject to the provisions of this Act and of any regulations made under this Act, the Minister may issue instructions under subsection (3) for all or any of the purposes referred to in that subsection, rather than recommend the making of regulations under section 81.
In deciding whether to issue instructions under subsection (3) rather than recommend the making of regulations under sec- tion 81, the Minister must have regard to only— (2) 142 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 8 s 80A (3) (a) (b) the importance of the instructions, including whether the instructions have a material effect on the rights and interests of individuals: the subject matter of the instructions, including whether the instructions contain detailed or technical matters rather than matters of general principle: the application of the instructions, including whether the instructions apply principally to a particular group rather than to the general public.
The Minister may issue instructions,— (a) (c) for all or any of the purposes specified in section 81(1)(ac) or (ba), to— a department; or (i) a departmental agency; or (ia) an Office of Parliament; or (ii) a Schedule 4 organisation; or (iii) (iv) a Schedule 4A company; and for all or any of the purposes specified in section 81(1)(a), (b), or (c), to an entity referred to in section 27(3)(a) to (f).
(b) (4) A chief executive of a department, a departmental agency, an Office of Parliament, a Schedule 4 organisation, a Schedule 4A company, or any other entity referred to in section 27(3) must comply with any instructions issued under this section to the extent that the instructions apply to that department, depart- mental agency, Office, organisation, company, or entity.
(5) Any instructions issued under this section for the purposes of section 81(1)(ba) must be consistent, in the opinion of the Min- ister, with generally accepted accounting practice and any re- porting standard imposed by or under any other Act, to the extent that those matters are relevant to those instructions.
Instructions issued under this section are a disallowable instru- ment, but not a legislative instrument, for the purposes of the Legislation Act 2012 and must be presented to the House of Representatives under section 41 of that Act.

The Minister must notify the instructions in the Gazette, and publish them on the Internet, as soon as practicable after issu- ing them.
(7) (6) 143 Part 8 s 81 Public Finance Act 1989 Reprinted as at 1 January 2014 Section 80A: inserted, on 25 January 2005, by section 25 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 80A(3)(a)(ia): inserted, on 18 July 2013, by section 47(1) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 80A(3)(a)(iii): replaced, on 18 July 2013, by section 47(2) of the Public Finance Amendment Act 2013 (2013 No 50).
Section 80A(3)(a)(iv): inserted, on 18 July 2013, by section 47(2) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 80A(4): replaced, on 18 July 2013, by section 47(3) of the Public Fi- nance Amendment Act 2013 (2013 No 50).

Section 80A(6): replaced, on 5 August 2013, by section 77(3) of the Legislation Act 2012 (2012 No 119).
81 (1) Regulations, Orders in Council, and notices The Governor-General may from time to time, by Order in Council made on the recommendation of the Minister, make regulations for all or any of the following purposes: (a) requiring information to be supplied to the Treasury by departments, departmental agencies, and any entities re- ferred to in section 27(3)(a) to (f) to enable the Treas- ury to properly fulfil the functions imposed on it by the Government or any Act: (ac) (ab) prescribing the processes and data standards to be used when supplying the information required under para- graph (a): prescribing minimum requirements concerning the pub- lication of information that departments, departmental agencies, Offices of Parliament, Schedule 4 organisa- tions, and Schedule 4A companies must publish under this Act: prescribing particular accounting policies and financial statement representations that Ministers, departments, Offices of Parliament, Crown entities, Schedule 4 or- ganisations, or Schedule 4A companies must apply in their financial reporting: (b) (ba) prescribing the non-financial reporting standards that Ministers, departments, departmental agencies, Offices of Parliament, Schedule 4 organisations, or Sched- ule 4A companies must apply and the form in which they must provide the information they are required to present to the House of Representatives under this Act: 144 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 8 s 81 (bb) specifying the types of guarantees or indemnities that may be given by departments on behalf of or in the name of the Crown under section 65ZE: (bc) prescribing the terms and conditions that must apply to those guarantees or indemnities referred to in paragraph (bb): (f) (c) (e) (d) (bd) prescribing any other matters relating to those guaran- tees or indemnities referred to in paragraph (bb): regulating the collection, receipt, custody, issue, ex- penditure, control, and management of public money or trust money: regulating the accounting and financial management
 and control procedures relating to contracts of the Crown: regulating the custody and control by the Crown of pub- lic securities and securities representing the investment of public money; and providing for the appointment of custodians of such securities and prescribing their func- tions, duties, and powers: regulating the issue, registration, transfer, control, and redemption of Government stock or any other public securities issued within New Zealand: regulating the employment of Crown Solicitors (not be- ing members of the Public Service) for the conduct of the legal business of the Crown; and providing for the payment to such Crown Solicitors of such fees, allow- ances, and expenses as may be fixed or determined by or in accordance with the regulations: prescribing the fees, allowances, and expenses payable by the Crown to witnesses and interpreters in judicial proceedings; and empowering any specified person or persons to increase the fees in special cases: prescribing offences in respect of the contravention of, or non-compliance with, any regulations made under this Act or any requirement or direction made or given pursuant to any such regulations; and prescribing penal- ties not exceeding $2,000 in respect of any offences pre- scribed under this paragraph: (h) (g) (i) 145 Part 8 s 81 Public Finance Act 1989 Reprinted as at 1 January 2014 (j) providing for such other matters as are contemplated by or necessary for giving full effect to this Act and for the due administration thereof.
(2) Any Order in Council made under paragraph (g) of subsection (1), and any provision of any such order, may, to the extent that that order or that provision prescribes the fees, allowances, and expenses payable to Crown Solicitors, be expressed to apply in respect of work done by Crown Solicitors on and after any date, whether before or after the date of the making of the order or the date of the commencement of this Act.
(3) Without limiting any other provision of this Act, the Minis- ter may give notice in the Gazette of the exercise of any of the Minister’s powers under this Act, or of any direction, de- termination, requirement, or instruction given or made by the Minister under this Act.

Any notice given under this subsec- tion may at any time be varied or revoked by a subsequent notice.
(4) Any regulations made under this section must be consistent, in the opinion of the Minister, with generally accepted account- ing practice, and any reporting standard imposed by or under any other Act, to the extent that those matters are relevant to those regulations.

Compare: 1977 No 65 s 113(1), (1A), (3); 1986 No 67 s 9 Section 81(1): amended, on 25 January 2005, by section 26(1) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 81(1)(a): amended, on 18 July 2013, by section 48(1) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 81(1)(a): amended, on 25 January 2005, by section 26(2) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 81(1)(ab): inserted, on 25 January 2005, by section 26(3) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 81(1)(ac): replaced, on 18 July 2013, by section 48(2) of the Public Finance Amendment Act 2013 (2013 No 50).
Section 81(1)(b): substituted, on 25 January 2005, by section 26(4) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 81(1)(b): amended, on 18 July 2013, by section 48(3) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 81(1)(ba): replaced, on 18 July 2013, by section 48(4) of the Public Finance Amendment Act 2013 (2013 No 50).

Section 81(1)(bb): inserted, on 25 January 2005, by section 26(4) of the Public Finance Amendment Act 2004 (2004 No 113).
146 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 8 s 82 Section 81(1)(bc): inserted, on 25 January 2005, by section 26(4) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 81(1)(bd): inserted, on 25 January 2005, by section 26(4) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 81(4): added, on 25 January 2005, by section 26(5) of the Public Fi- nance Amendment Act 2004 (2004 No 113).
82 (1) (2) (3) (4) (5) (6) Consultation and approval requirements for regulations or instructions relating to reporting standards This section applies to— (a) any regulations that are proposed to be made under sec- tion 81(1)(ba) or any instructions that are proposed to be issued by the Minister to departments, departmen- tal agencies, Schedule 4 organisations, or Schedule 4A companies, under section 80A, for the purposes of sec- tion 81(1)(ba); and any regulations that are proposed to be made under sec- tion 81(1)(ac) or (ba) in relation to Offices of Parliament or any instructions that are proposed to be issued by the Minister to Offices of Parliament, under section 80A, for the purposes of section 81(1)(ac) or (ba).
(b) The Minister must prepare and submit to the Speaker a draft of any regulations or instructions to which this section applies.

The Speaker must present the draft regulations or instructions to the House of Representatives as soon as is reasonably prac- ticable.
In the case of regulations or instructions to which subsection (1)(a) applies, the Minister, after considering any comments of the Speaker or any committee of the House of Representa- tives that considered the draft regulations or instructions, may amend them as the Minister thinks fit.
In the case of regulations or instructions to which subsection (1)(b) applies, the Minister may recommend that the regula- tions be made or may issue the instructions only after they have been approved by resolution of the House of Representatives.

The Minister must, as soon as practicable after issuing in- structions to which subsection (1) applies, present them to the House of Representatives.
Compare: 2001 No 10 s 36 147 Part 8 s 83 Public Finance Act 1989 Reprinted as at 1 January 2014 83 84 Section 82: substituted, on 25 January 2005, by section 27 of the Public Finance Amendment Act 2004 (2004 No 113).

Section 82(1)(a): amended, on 18 July 2013, by section 49 of the Public Finance Amendment Act 2013 (2013 No 50).

Abolition of certain accounts [Repealed] Section 83: repealed, on 18 July 2013, by section 50 of the Public Finance Amendment Act 2013 (2013 No 50).
Registration of public securities, local authority stock, and other stock Notwithstanding the repeal by section 87 of— (a) (b) (c) [Repealed] Part 6A of the Reserve Bank of New Zealand Act 1964: section 4 of the Reserve Bank of New Zealand Amend- ment Act 1977 and so much of Schedule 3 as relates to section 109(2A) of the Local Authorities Loans Act 1951: section 4(5) of the Public Finance Amendment Act 1980,— (d) those provisions shall continue to apply to— (e) all public securities registered before the date on which regulations made under section 81(1)(f) come into force: [Repealed] all other stock.
(f) (g) Section 84(a): repealed, on 27 July 1996, by section 15(1) of the Local Gov- ernment Amendment Act (No 3) 1996 (1996 No 83).

Section 84(f): repealed, on 27 July 1996, by section 15(1) of the Local Govern- ment Amendment Act (No 3) 1996 (1996 No 83).

85 Government stock in United Kingdom [Repealed] Section 85: repealed, on 18 July 2013, by section 51 of the Public Finance Amendment Act 2013 (2013 No 50).
148 Reprinted as at 1 January 2014 Public Finance Act 1989 Part 8 s 88 86 87 88 (1) (2) Consequential amendments [Repealed] Section 86: repealed, on 18 July 2013, by section 51 of the Public Finance Amendment Act 2013 (2013 No 50).

Repeals [Repealed] Section 87: repealed, on 18 July 2013, by section 51 of the Public Finance Amendment Act 2013 (2013 No 50).
Application, savings, and transitional provisions relating to amendments to Act The application, savings, and transitional provisions set out in Schedule 1, which relate to amendments made to this Act after 1 January 2013, have effect for the purposes of this Act.

The application, savings, and transitional provisions relating to the amendment Acts specified in the first column of the fol- lowing table are set out in the Parts of Schedule 1 specified in the second column of the table.
Amendment Act Public Finance Amendment Act 2013 Public Finance (Fiscal Responsibility) Amendment Act 2013 Schedule 1 Part Part 1 Part 2 Section 88: replaced, on 18 July 2013, by section 52 of the Public Finance Amendment Act 2013 (2013 No 50).

Section 88(2): inserted, on 4 September 2013, by section 12 of the Public Fi- nance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).
149 Schedule 1 Public Finance Act 1989 Reprinted as at 1 January 2014 Schedule 1 Application, savings, and transitional provisions relating to amendments made to Act after 1 January 2013 ss 2A, 88 Schedule 1: replaced, on 18 July 2013, by section 53 of the Public Finance Amendment Act 2013 (2013 No 50).
Part 1 Provisions relating to Public Finance Amendment Act 2013 Schedule 1 Part 1 heading: inserted, on 4 September 2013, by section 13(2) of the Public Finance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).
Interpretation In this Part,— 2013/14 financial year means the financial year ending with 30 June 2014 2014/15 financial year means the financial year ending with 30 June 2015 amendment Act means the Public Finance Amendment Act 2013 commencement date means the date on which the amend- ment Act comes into force new provision means a provision of this Act as amended or inserted by the amendment Act, and new section has a corres- ponding meaning old provision means a provision of this Act as in force imme- diately before its amendment or repeal by the amendment Act, and old section has a corresponding meaning.
Schedule 1 clause 1: amended, on 4 September 2013, by section 13(3) of the Public Finance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).
General application of provisions relating to financial year Amendments made on 1 July 2014 apply to 2014/15 financial year and subsequent financial years This clause applies to any provision of this Act that— 1 2 (1) 150 Reprinted as at 1 January 2014 Public Finance Act 1989 Schedule 1 Part 1—continued (a) (b) relates to a financial year; and is amended on 1 July 2014 by Part 2 of the amendment Act.
(2) The provision must,— (a) to the extent that it relates to the 2014/15 financial year and subsequent financial years, be treated as if it were amended on the commencement date rather than 1 July 2014; and to the extent that it relates to previous financial years, be treated as if it were not amended on 1 July 2014.

(b) (3) This clause is subject to clause 3.
3 4 Multi-category appropriations may be used in 2013/14 financial year Despite clause 2, in the 2013/14 financial year,— (a) old section 7(1) must be read as if it included, as a type of appropriation, a multi-category appropriation described in new section 7A(1)(g) (as inserted by sec- tion 59 of the amendment Act); and any new provision that relates to a multi-category ap- propriation must, for the purposes of the multi-category appropriation and any expenses or capital expenditure incurred under it, be treated as if it were amended on the commencement date.
(b) Annual report for 2013/14 financial year must include forecast financial statements for 2014/15 financial year Despite clause 2, old section 45 must be read as if it included a requirement for a department’s annual report for the 2013/14 financial year to include forecast financial statements for the 2014/15 financial year that comply with new section 45BA (as inserted by section 86 of the amendment Act).
151 Schedule 1 Public Finance Act 1989 Reprinted as at 1 January 2014 Part 1—continued 5 First information on strategic intentions under new section 38 must relate to 2014/15 financial year and subsequent financial years (1) A department must provide to its responsible Minister, under new section 38 (as inserted by section 80 of the amendment Act), information on its strategic intentions for the 2014/15 financial year and at least the following 3 financial years.
(2) A department must comply with subclause (1) not later than the day on which it provides, to its responsible Minister, its annual report for the 2013/14 financial year.
6 (1) (2) Additional transitional provisions applicable to Schedule 4 organisations and Schedule 4A companies Additional transitional provisions applicable to Schedule 4 organisations and Schedule 4A companies Clauses 1 to 3 of Schedule 1AAA of the Crown Entities Act 2004 (the CEA transitional schedule) apply to Schedule 4 organisations and Schedule 4A companies, except that refer- ences in clause 1 of the CEA transitional schedule to a Crown entity must be read as if they were references to a Schedule 4 organisation or a Schedule 4A company (as applicable).
If new section 139 of the Crown Entities Act 2004 applies to a Schedule 4 organisation or a Schedule 4A company, then clause 4 of the CEA transitional schedule also applies to the organisation or company, except that references in that clause to a Crown entity must be read as if they were references to a Schedule 4 organisation or a Schedule 4A company (as ap- plicable).
7 Exception to section 45OA(1)(g) for Crown Fibre Holdings Limited in respect of certain subsidiaries (1) Despite section 45OA(1)(g), section 97 of the Crown Entities Act 2004 (which sets out rules that apply to a parent Crown entity in respect of its subsidiaries) does not apply to Crown Fibre Holdings Limited in respect of a specified subsidiary.
152 Reprinted as at 1 January 2014 Public Finance Act 1989 Schedule 1 Part 1—continued (2) For the purposes of subclause (1), specified subsidiary means a subsidiary that, on the commencement date, is a company with no shareholders other than— (a) (b) (c) Crown Fibre Holdings Limited; and the Crown; and 1 of the following: (i) (ii) (iii) Northpower Limited: (iv) Waikato Networks Limited: (v) Chorus Limited: Enable Services Limited: a wholly owned subsidiary of Chorus Limited, Enable Services Limited, Northpower Limited, or Waikato Networks Limited.
(3) This clause is repealed on the close of 30 June 2021.

8 Application of Crown Entities Act 2004 to Tāmaki Redevelopment Company Limited’s statement of intent for 2013/14 financial year (1) Despite new section 45OA(1)(n),— (a) (b) sections 138 to 144, 145(a) and (b), and 146 of the Crown Entities Act 2004 do not apply to TRCL’s first statement of intent; and sections 145(c) and 149— (i) do not apply to TRCL’s first statement of intent; but apply to an amendment to TRCL’s first statement of intent.
(ii) (2) (3) If TRCL’s first statement of intent includes information de- scribed in section 141(1)(b), (c), (d), (f), (g), or (h) or section 142(1)(b) (a specified provision) of the Crown Entities Act 2004, section 147 of that Act applies as if the information were included in TRCL’s first statement of intent under the specified provision.

In this clause, TRCL’s first statement of intent means Tā- maki Redevelopment Company Limited’s statement of intent for the 2013/14 financial year.
153 Schedule 1 Public Finance Act 1989 Reprinted as at 1 January 2014 Part 2 Provision relating to Public Finance (Fiscal Responsibility) Amendment Act 2013 Schedule 1 Part 2: inserted, on 4 September 2013, by section 13(4) of the Public Finance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).
9 (1) (2) (3) (4) Transitional provision relating to Public Finance (Fiscal Responsibility) Amendment Act 2013 In this clause, commencement date means the day on which the Public Finance (Fiscal Responsibility) Amendment Act 2013 comes into force.

Section 26M(3)(c) does not apply to a budget policy state- ment if the fiscal strategy report most recently presented to the House of Representatives was presented before the com- mencement date.
Section 26NA(2)(d) does not apply to the first investment statement presented to the House of Representatives under section 26NA.

This Part is repealed 4 years after the commencement date.

Schedule 1 clause 9: inserted, on 4 September 2013, by section 13(4) of the Public Finance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67).
154 Reprinted as at 1 January 2014 Public Finance Act 1989 Schedule 3 Schedule 2 Enactments repealed [Repealed] s 87 Schedule 2: repealed, on 18 July 2013, by section 54 of the Public Finance Amendment Act 2013 (2013 No 50).

Schedule 3 Liabilities, and categories of liabilities, not included in definition of contingent liability [Repealed] s 2(1) Schedule 3: repealed, on 25 January 2005, by section 31 of the Public Finance Amendment Act 2004 (2004 No 113).
155 1 5 6 Schedule 4 Organisations for the purposes of subpart 2 of Part 5 ss 3A, 45M, 45N Schedule 4: substituted, on 25 January 2005, by section 30 of the Public Finance Amendment Act 2004 (2004 No 113).

Note: A tick alongside the name of an organisation means that the section of the Crown Entities Act 2004 that appears above the tick applies to that organisation.
Name or description of organisation SOI Annual report SSP Securities Borrowing Guaran- tees Deriva- tives Surplus 139 150 153 161 162 163 164 165 Agricultural and Marketing Research and Development Trust Asia New Zealand Foundation Game Animal Council Leadership Development Centre Trust the Māori Trustee National Pacific Radio Trust New Zealand Fish and Game Council and Fish and Game Councils New Zealand Game Bird Habitat Trust Board New Zealand Government Property Corporation New Zealand Lottery Grants Board Name or description of organisation SOI Annual report SSP Securities Borrowing Guaran- tees Deriva- tives Surplus 139 150 153 161 162 163 164 165 Ngai Tahu Ancillary Claims Trust Pacific Co-operation Foundation Pacific Island Business Development Trust Reserves Boards as defined in section 2 of the Reserves Act 1977 Road Safety Trust Sentencing Council Te Ariki trust Schedule 4: amended, on 28 November 2013, by section 41(1) of the Game Animal Council Act 2013 (2013 No 98).
Schedule 4: amended, on 18 July 2013, by section 55 of the Public Finance Amendment Act 2013 (2013 No 50).

Schedule 4: amended, on 27 September 2012, by clause 3 of the Public Finance (The Network for Learning Limited) Order 2012 (SR 2012/222).

Schedule 4: amended, on 31 August 2012, by clause 3 of the Public Finance (Tāmaki Redevelopment Company Limited) Order 2012 (SR 2012/250).
Schedule 4: amended, on 18 April 2012, by clause 3 of the Public Finance (Southern Response Earthquake Services Limited) Order 2012 (SR 2012/70).

Schedule 4: amended, on 29 February 2012, by clause 3 of the Public Finance (Crown Asset Management Limited) Order 2012 (SR 2012/15).

Schedule 4: amended, on 1 July 2011, by clause 3 of the Public Finance (Dispute Resolution Services Limited) Order 2011 (SR 2011/230).
Schedule 4: amended, on 1 November 2010, by section 28 of the Local Government (Tamaki Makaurau Reorganisation) Act 2009 (2009 No 13).

Schedule 4: amended, on 30 July 2010, by clause 3 of the Public Finance (Health Benefits Limited) Order 2010 (SR 2010/212).

Schedule 4: amended, on 1 July 2010, by clause 3 of the Public Finance (Learning State Limited) Order 2010 (SR 2010/133).
Schedule 4: amended, on 14 January 2010, by clause 3 of the Public Finance (Crown Fibre Holdings Limited) Order 2009 (SR 2009/400).

Schedule 4: amended, on 24 December 2009, by clause 3 of the Public Finance (New Zealand Fast Forward Limited) Order 2009 (SR 2009/355).

Schedule 4: amended, on 1 July 2009, by section 30(1) of the Māori Trustee Amendment Act 2009 (2009 No 12).
Schedule 4: amended, on 4 June 2009, by section 93(3) of the Affiliate Te Arawa Iwi and Hapu Claims Settlement Act 2008 (2008 No 98).

Schedule 4: amended, on 1 July 2008, by clause 3 of the Public Finance (National Pacific Radio Trust) Order 2008 (SR 2008/167).

Schedule 4: amended, on 1 November 2007, by section 12 of the Sentencing Council Act 2007 (2007 No 25).
Schedule 4: amended, on 11 May 2006, by clause 3 of the Public Finance (Research and Education Advanced Network New Zealand Limited) Order 2006 (SR 2006/96).
Reprinted as at 1 January 2014 Public Finance Act 1989 Schedule 5 Schedule 4A Non-listed companies in which Crown is majority or sole shareholder ss 3AB, 45OA Schedule 4A: inserted, on 18 July 2013, by section 56 of the Public Finance Amendment Act 2013 (2013 No 50).
Note: A tick alongside the name of a company means that the section of the Crown Entities Act 2004 that appears above the tick applies to that company.
Sections of Crown Entities Act 2004 (relating to financial powers) 161 162 163 164 165 Company Crown Asset Management Limited Crown Fibre Holdings Limited Dispute Resolution Services Limited Health Benefits Limited The Network for Learning Limited Research and Education Advanced Network New Zealand Limited Southern Response Earthquake Services Limited Tāmaki Redevelopment Company Limited Schedule 5 Mixed ownership model companies s 45P Schedule 5: replaced, on 30 June 2012, by section 10 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).
Meridian Energy Limited Mighty River Power Limited Schedule 5: amended, on 30 August 2013, by section 8(3) of the State-Owned Enter- prises Amendment Act 2012 (2012 No 44).

Schedule 5: amended, on 8 March 2013, by section 8(4) of the State-Owned Enterprises Amendment Act 2012 (2012 No 44).
159 Schedule 6 Public Finance Act 1989 Reprinted as at 1 January 2014 Schedule 6 Crown entities required to prepare statements of intent [Repealed] ss 3A, 41C, 41D, 41I Schedule 6: repealed, on 25 January 2005, by section 31 of the Public Finance Amendment Act 2004 (2004 No 113).

Schedule 7 Crown entities subject to section 16 [Repealed] s 16 Schedule 7: repealed, on 25 January 2005, by section 31 of the Public Finance Amendment Act 2004 (2004 No 113).
160 Reprinted as at 1 January 2014 Public Finance Act 1989 Public Finance Amendment Act 2004 Public Act Date of assent Commencement 2004 No 113 21 December 2004 see section 2 1 (1) (2) 2 Title This Act is the Public Finance Amendment Act 2004.

In this Act, the Public Finance Act 1989 is called “the principal Act”.

Commencement This Act comes into force on 25 January 2005.
Transitional provisions 32 Application of provisions relating to financial year (1) Despite the enactment of this Act, any existing provisions of the principal Act that relate to a financial year continue to apply only in respect of— (a) either of the following: (i) (ii) the financial year ending on 30 June 2005; or a later financial year specified by the Governor- General by Order in Council made on the recom- mendation of the Minister of Finance; and (b) each previous financial year.
(2) Any provisions of the principal Act (as amended by this Act) that relate to a financial year must be read as if those provisions apply only in respect of— (a) either of the following: (i) (ii) the financial year commencing on 1 July 2005; or if a later financial year is specified by the Gov- ernor-General by Order in Council made under subsection (1)(a)(ii), the next financial year; and (3) each subsequent financial year.
(b) The Minister of Finance may make a recommendation under subsection (1)(a)(ii) only if he or she is satisfied that doing so 161 Public Finance Act 1989 Reprinted as at 1 January 2014 is reasonably necessary to maintain the integrity of the prep- aration of the Budget.

In this section, existing provisions of the principal Act means the provisions of the principal Act that were in force immediately before the commencement of this Act.
Reporting obligations in respect of financial year The reporting requirements and provisions that would have ap- plied if this Act had not been enacted continue to apply, in re- spect of the financial year specified in subsection (3), to a de- partment and an Office of Parliament, rather than the reporting requirements and provisions enacted by this Act or any other Act.
Therefore, for example, a department and an Office of Parlia- ment must comply with the requirements relating to annual fi- nancial statements, annual reports, and audits that were in the principal Act immediately before the commencement of this Act.

The financial year referred to in subsection (1) is— the financial year ending on 30 June 2005; or (a) if a later financial year is specified by the Gov- (b) ernor-General by Order in Council made under section 32(1)(a)(ii), that financial year.
To avoid doubt, this section does not limit section 32.

Section 198 of the Crown Entities Act 2004 applies to an or- ganisation named or described in Schedule 4.
Existing bank accounts, investments, borrowing, guarantees, and derivatives This section applies to any bank account, investment, borrow- ing, guarantee, or derivative transaction of an organisation that is named or described in Schedule 4 of the principal Act at the date of commencement of this Act that the organisation would be restricted from acquiring, giving, or entering into under this Act.
The bank account, investment, borrowing, guarantee, or derivative transaction is not affected by the enactment of this Act.

(4) 33 (1) (2) (3) (4) (5) 34 (1) (2) 162 Reprinted as at 1 January 2014 Public Finance Act 1989 (3) However, the terms of the investment, borrowing, guarantee, or derivative transaction may be amended, or any options re- sulting from the investment, borrowing, or derivative trans- action, may be taken up, only if permitted by the Minister of Finance.
35 (1) Regulations for transitional and savings purposes The Governor-General may, by Order in Council, make regu- lations prescribing transitional or savings provisions relating to the coming into force of this Act.

(2) Any transitional or savings provisions prescribed in regula- tions made under subsection (1) may be in addition to or in place of any of the provisions of sections 32 to 34.
36 References in trust deeds to section 25 of principal Act Every reference to section 25 of the principal Act that is in a trust deed at the date of commencement of this section must be read as a reference to section 161 of the Crown Entities Act 2004.

163 Notes Public Finance Act 1989 Reprinted as at 1 January 2014 Reprints notes 1 2 3 General This is a reprint of the Public Finance Act 1989 that incorporates all the amendments to that Act as at the date of the last amendment to it.
Legal status Reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by any amendments to that enactment.

Section 18 of the Legislation Act 2012 provides that this reprint, published in electronic form, will have the status of an official version once issued by the Chief Parliamentary Counsel under section 17(1) of that Act.

Editorial and format changes and Editorial made 26 http://www.pco.parliament.govt.nz/editorial-conventions/.
the Legislation Act to sections changes reprints powers format under 2012. using See the 24 of are to also 4 Amendments incorporated in this reprint Companies Amendment Act 2013 (2013 No 111): section 14 Game Animal Council Act 2013 (2013 No 98): section 41(1) Public Finance (Fiscal Responsibility) Amendment Act 2013 (2013 No 67) Public Finance Amendment Act 2013 (2013 No 50): Part 1 Holidays (Full Recognition of Waitangi Day and ANZAC Day) Amendment Act 2013 (2013 No 19): section 8 Legislation Act 2012 (2012 No 119): section 77(3) Public Finance (Tāmaki Redevelopment Company Limited) Order 2012 (SR 2012/250) Public Finance (The Network for Learning Limited) Order 2012 (SR 2012/222) Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45) State-Owned Enterprises Amendment Act 2012 (2012 No 44): section 8(1), (3), (4) Public Finance (Southern Response Earthquake Services Limited) Order 2012 (SR 2012/70) Public Finance (Crown Asset Management Limited) Order 2012 (SR 2012/15) Public Finance Amendment Act 2012 (2012 No 17) 164 Reprinted as at 1 January 2014 Public Finance Act 1989 Notes Criminal Procedure Act 2011 (2011 No 81): section 413 Weathertight Homes Resolution Services (Financial Assistance Package) Amendment Act 2011 (2011 No 50): section 8 Public Finance (Dispute Resolution Services Limited) Order 2011 (SR 2011/230) Financial Reporting Amendment Act 2011 (2011 No 22): section 12 Public Finance (Health Benefits Limited) Order 2010 (SR 2010/212) Public Finance Amendment Act 2010 (2010 No 78)
 Public Finance (Learning State Limited) Order 2010 (SR 2010/133) Public Finance (Crown Fibre Holdings Limited) Order 2009 (SR 2009/400) Public Finance (New Zealand Fast Forward Limited) Order 2009 (SR 2009/355) Crown Retail Deposit Guarantee Scheme Act 2009 (2009 No 30): section 10 Local Government (Tamaki Makaurau Reorganisation) Act 2009 (2009 No 13): section 28 Māori Trustee Amendment Act 2009 (2009 No 12): section 30(1) Affiliate Te Arawa Iwi and Hapu Claims Settlement Act 2008 (2008 No 98): section
 93(3) Public Finance (National Pacific Radio Trust) Order 2008 (SR 2008/167) Sentencing Council Act 2007 (2007 No 25): section 12 Public Finance (Research and Education Advanced Network New Zealand Limited) Order 2006 (SR 2006/96) Public Finance Amendment Act 2004 (2004 No 113) Maritime Transport Amendment Act 2004 (2004 No 98): section 11(3) Local Government Act 2002 (2002 No 84): section 262 Housing Corporation Amendment Act 1992 (1992 No 78): section 16(1) Public Audit Act 2001 (2001 No 10): section 53 Public Finance Amendment Act 2000 (2000 No 78) Treasurer (Statutory References) Act 1997 (1997 No 20): section 2 Local Government Amendment Act (No 3) 1996 (1996 No 83): section 15(1) Public Finance Amendment Act 1994 (1994 No 18) Public Finance Amendment Act 1992 (1992 No 142) Housing Corporation Amendment Act 1992 (1992 No 78): section 16(1) Public Finance Amendment Act (No 2) 1991 (1991 No 99) Public Finance Amendment Act 1991 (1991 No 6) Acts and Regulations Publication Act 1989 (1989 No 142): section 31(1) 12 Wellington, New Zealand: Published under the authority of the New Zealand Government—2014 165