Explaining key terms and phrases

An accountable authority is the individual or body responsible for the financial management and performance of a Government Sector Finance (GSF) Act 2018 agency. The accountable authority is responsible to the minister for ensuring the agency’s compliance with the GSF Act.

The accountable authority for a GSF agency is defined in section 2.7 of the GSF Act. For a department, this is the secretary of the department. For other public service agencies, it is the head of the agency.

Data which reflects the actual spend to date. This is collected and published for each reporting period (monthly) in the current financial year.

The authority given by Parliament for the expenditure of monies from the Consolidated Fund, including for the annual services of government and the Legislature

Affiliated entities are NSW Government entities aligned with a department, including through Administrative Arrangement Orders and the Allocation of the Administration of Acts. See the Guide to the NSW Public Sector for further detail on NSW public sector governance.

Budget aggregates are summary indicators that provide information on the government's financial position.

A tool to monitor agency financial performance, and to control how funds are used, including targeting specific types of expenditure. The three budget controls in place are Net Cost of Services, Labour Expense Cap and the Capital Expenditure Authorisation Limit.

Document that supports decision-making and public accountability. It provides information about a problem, case for change, project viability and deliverability.

Expenditure relating to the acquisition or enhancement of property, plant and equipment (including land and buildings, plant and equipment and infrastructure systems) and intangibles (including computer software and easements). In New South Wales, capital expenditure also includes leases and assets acquired using service concession arrangements under the financial liability model.

A ceiling on the total capital expenditure that can be incurred by an agency in any year. 

The transfer of Budget Control Limits from the current financial year to future financial years to meet the revised delivery schedule of a program or project.

A ledger account that comprises all public money collected, received or held on behalf of the State, unless otherwise required by an Act.

This is the ledger into which the Government generally deposits taxes, tariffs, excises, fines, fees, loans, income from Crown assets and other revenues once collected, together with transfers from the Commonwealth Government, and from which it generally withdraws the money it requires to cover its expenditure.

Minister which receives the appropriation as detailed in the Appropriation Bill and authorises the Department to spend the appropriated funds.

An appraisal and evaluation technique that estimates the costs and benefits of a project or program in monetary terms.

A department is a government entity as listed in Part 1 of Schedule 1 to the Government Sector Employment Act 2013 (NSW).

A sub-committee of Cabinet which is responsible for determining the government’s policy in respect of budget management, fiscal strategy and all policy proposals with financial implications.

The three years following the ‘Budget Year’. It includes expenditure estimates and revenue forecasts.

An external assurance policy framework that assesses projects and programs based on risk in order to mandate and conduct independent expert reviews at key decision points, or Gates, as they go through the project or program lifecycle.

Agency responsible for the development and operation of an approved risk-based Framework for the assessment of projects and programs, co-ordination of Gateway Reviews and the reporting of performance.

An Australian Bureau of Statistics (ABS) classification of agencies that provide public services (such as health, education and police), or perform a regulatory function. General government agencies are funded mainly by taxation (directly or indirectly).

A government officer includes heads and employees of GSF agencies, statutory officers related to public service agencies, seconded workers, and others prescribed by regulations.

The Half-Yearly Review provides a mid-year update to the economic and financial assumptions released in the Budget. A Half-Yearly Review is required under the GSF Act.

Resources required to acquire, process, store and disseminate information. This includes stand-alone operational technology projects and programs.

Integrity agencies monitor certain aspects of government administration. Integrity agencies report to the Parliament and assist Parliament to hold the executive branch of government to account for its actions. See section 4.14A of the GSF Act for a definition of an integrity agency.

A ceiling on the total of employee related and contractor expenses that an agency can incur in any year.

The net cost by which an agency can operate in within any year when accounting for expenses and revenues. 

A discretionary decision by government that creates a new policy or changes existing policy. New policy proposals may or may not have a financial impact. 

Parameter and Technical Adjustments are a category of cost variation which involves adjustments beyond the control of an agency, such as increased demand or accounting changes.

The NSW Government’s core budget and financial management information technology platform, which details individual agency budgets and capital programs and is used to produce the budget aggregates.

A forecast of the expected financial position at the close of the financial year. These are collected at key periods during the year for publication.

A specific budget allocation that cannot be reallocated or repurposed for other priorities, ensuring that the funds are used exclusively for their intended purpose.

An ABS classification of agencies that have one, or more, of the following functions:

• that of a central bank
• the acceptance of demand time or savings deposits
• the authority to incur liabilities and acquire financial assets in the market on their own account.
   

An ABS classification of government-controlled agencies where user charges represent a significant proportion of revenue and the agencies operate within a broadly commercial orientation.

Expenditure on goods and services, which do not result in the creation of an asset. This includes salaries and wages, operating expenses and interest.

A brief document prepared by an agency to support an investment decision for lower cost, low risk proposals. It follows the general principles of a business case, including setting out a case for change, options, risks, costs and identification of benefits. It’s required for proposals valued over $10 million that don’t require a business case.

Government entities (mostly PNFCs) which have been established with a governance structure mirroring as far as possible that of a publicly listed company. NSW state owned corporations are scheduled under the State Owned Corporations Act 1989 (Schedule 5).