s.18Responsible financial management
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Section 18Part 2 — Establishment, Capital and Administration of Authority

Responsible financial management

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The Board shall manage the financial performance of the Authority in accordance with the principles set out in this section.
The policies and decisions of the Board shall be consistent with the principles of responsible financial management set out in subsection (3), and the impact of those decisions on the Authority's financial performance and position shall be measured using accrual accounting.
The Authority shall administer the health care facilities and programmes according to the following principles of financial management —
the Authority's revenue (inclusive of any amounts received as continuing operational funding requirements obtained in accordance with section 6(1) and inclusive of any revenue arising from the Authority's ability to vary its fees in accordance with section 17(1)), less the Authority's total expenses (measured using generally accepted accounting practice) shall be positive, subject to the fact that in accordance with section 17(1), fee increases that may be required to ensure that revenue exceeds expenses, do not take effect until ninety days after the announcement of the intended fee increases;
the Authority's total assets (inclusive of any amount of capital injections obtained in accordance with section 6(1)) less the Authority's total liabilities (measured using generally accepted accounting practice) shall be positive;
cash reserves in the reserve fund shall be maintained at a level no less than the estimated expenses (measured using generally accepted accounting practice) for ninety days, subject to the fact that the Authority has until the 1st July, 2004 to comply therewith or such other date as the Cabinet may decide; and
the financial risks, including contingent liabilities, facing the Authority should be managed prudently so as to minimise the likelihood of any such risk resulting in an expense or liability to the Authority or the Government.

Defined Terms

responsible financial managementaccrual accountingcontingent liabilities

Cross References

Referenced By