THE LEGISLATIVE ASSEMBLY FOR THE
AUSTRALIAN CAPITAL TERRITORY

Financial Management (Transfer of Funds) Direction 2016 (No 1)
DI2016-5
EXPLANATORY STATEMENT

Presented by
Mr Andrew Barr MLA
Treasurer

FINANCIAL MANAGEMENT ACT 1996 SECTION 14A(2)(b)

The Financial Management Act 1996 Section 14A(2)(b) is the mechanism for the transfer of funds from capital injection to other appropriations.

Under Section 14A(2)(b) transfers from Capital Injection to Net Cost of Outputs in any financial year that exceed the threshold of 5 per cent or $500,000 (whichever is larger) can only be made through an authorisation in the form of a disallowable instrument. 

The disallowable instrument must be presented in the Legislative Assembly no later than six sitting days after its notification day.

This allows the Assembly power to pass a resolution to disallow the transfer, if required. 

Financial Management Act Section 14A (2)(b)

This Instrument transfers $11.9 million of Health Directorate Capital Injection appropriation to Net Cost of Outputs appropriation.

The transfer relates to the capital funding originally appropriated for the forward design of inpatient facilities at the Canberra Hospital campus under the project title of ‘Clinical Services and Inpatient Unit Design and Infrastructure Expansion’ (CSIUDIE) to be reallocated to the ACT Health System Innovation Program (SIP), formally known as the ACT Health Transformational Reform Program.

The SIP aims to improve access to health services, increase efficiency and free up hospital capacity through contemporary service delivery solutions and models of care.  The SIP will be delivered across seven key organisation wide themes, including;

-	Access;
-	Quality;
-	Mental Health;
-	Innovation and Sustainability;
-	Strategic Partners;
-	Infrastructure; and
-	Culture.

The remaining funds in CSIUDIE are sufficient to complete the project, including the Emergency Department expansion in 2015-16, providing improved inpatient facilities at the Canberra Hospital.