SPECIAL INSTRUCTION REGARDING SPECIAL PUBLIC MONEY 2003/01
Financial Management and Accountability Act 1997
Section 16 (1)
I, Nick Minchin, Minister for Finance and Administration, issue this Special Instruction regarding special public money under section 16 (1) of the Financial Management and Accountability Act 1997 (FMA Act) to agencies as defined by section 5 of the FMA Act.
(2) This Special Instruction applies only if:
(a) an Agency holds special public money that is also subject to Trust Law; and
(b) the trust instrument does not require the trustee to physically hold the special public money separate from other moneys.
(3) The Agency must bank the special public money in the appropriate official bank account in accordance with the requirements of the FMA Act and the Financial Management and Accountability (Finance Minister to Chief Executives) Delegation 2003 (the delegation), as amended.; and
(4) Money that can be deposited in an SPM Account, as detailed in the delegation (as amended), is to be deposited into the Official Public Account (OPA) in line with the Agency Banking Framework Guidance Manual.
(5) Money that can be deposited in an Exempt SPM Account, as detailed in the delegation (as amended), is to be deposited into a bank account the Agency establishes with its transactional banker in line with the Agency Banking Framework Guidance Manual.
(6) The effect of these requirements is that special public money subject to trust law will not be held in a separate official bank account and may be held in the OPA.
(7) The Agency must be able to identify at all times, through separate ledgers in its accounting records, the amounts standing to the credit of each trust.
_____________________________
Nick Minchin
Dated: 27 October 2003