Finance Regulations (Amendment) (Cth)

Statutory Rules 1989 No. 221

 

Finance Regulations2 (Amendment)

I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Audit Act 1901.

Dated 16 August 1989.

BILL HAYDEN

Governor-General

By His Excellency’s Command,

Peter Walsh

Minister of State for Finance

 

Commencement

1. Regulations 3, 4, 5, 6, 7 and 8 commence on 1 November 1989.

2. After Part II of the Finance Regulations the following Part is inserted:

“PART IIaa—PROCUREMENT OF SUPPLIES

Procurement guidelines

“42. The Minister for Administrative Services may issue guidelines about the procurement of supplies, including any matter affecting contracts to procure supplies.”.

Procurement guidelines

3. Regulation 42 of the Finance Regulations is amended by adding at the end the following subregulation:

 

(S.R. 254/89) Cat. No. 18/9.8.1989

 

“(2) Persons performing duties in relation to the procurement of supplies must have regard to the guidelines.”.

4. After regulation 42 of the Finance Regulations the following regulations are inserted in Part IIaa:

Open and effective competition

“43. (1) A person who decides how supplies are to be procured must choose methods that will promote open and effective competition to the extent practicable.

“(2) Where:

(a) a Minister gives a direction concerning procurement; and

(b) compliance with the direction would prevent the use of procurement methods that will promote open and effective competition to the extent practicable;

a person deciding those methods must nevertheless choose methods that will provide open and effective competition to the greatest extent practicable while complying with the direction.

Guidelines providing for gazettal to be mandatory

“43a. Where the guidelines mentioned in regulation 42 provide for a matter to be published in the Gazette, the matter must be so published.

Publication in the Gazette of details of contracts and standing offers

“43b.(1) Where the total estimated liability of the Commonwealth under a contract that includes a provision for the procurement of supplies to be procured or used in Australia is not less than $2,000, the person who entered into the contract must, as soon as practicable after the contract is entered into, publish in the Gazette details of the contract that are sufficient to identify:

(a) the supplier; and

(b) the supplies; and

(c) the total estimated liability.

“(2) The person who enters into a standing offer arrangement for supplies for the Commonwealth must, as soon as practicable after the arrangement is entered into, publish in the Gazettedetails of the standing offer that are sufficient to identify:

(a) the supplier; and

(b) the supplies; and

(c) the period of the offer; and

(d) the total estimated value.

“(3) The guidelines mentioned in regulation 42 may:

(a) specify other details of contracts or of standing offers that are to be published in the Gazette in the public interest; and

 

(b) provide for the manner in which the details are to be published in the Gazette; and

(c) specify a period within which the details are to be published in the Gazette.

“(4) The Secretary to the Department that is responsible for procurement of supplies may, in writing, direct that details of contracts or standing offers that, in his or her opinion, are exempt matters under the Freedom of Information Act 1982 are not to be published in the Gazette in accordance with this regulation.

“(5) In this regulation ‘standing offer’ means an arrangement under which a supplier will, during a specified period, provide supplies on specified terms after an order for a specified quantity of the supplies is given to the supplier.”.

5. Part IIA of the Finance Regulations is repealed and the following Part substituted:

“PART IIa—COMMITMENTS REQUIRING EXPENDITURE OF PUBLIC MONEYS

Conditions for approval of proposals to spend public moneys

“44a. (1) A person is not to approve a proposal to spend public moneys unless satisfied that:

(a) the proposal is in accordance with the policies of the Commonwealth; and

(b) the proposed expenditure will make efficient and effective use of the public moneys available for the Commonwealth programs implementing those policies.

“(2) Where approval of a proposal to spend public moneys is given otherwise than in a document, the person giving the approval must record the terms of the approval in a document as soon as practicable after giving the approval.

Conditions for entering into commitments

“44b. A person must not enter into a commitment requiring the expenditure of public moneys:

(a) unless a person who has authority to approve a proposal to spend the moneys has given that approval; and

(b) except in accordance with any terms specified in that approval; and

(c) unless the person who enters into the commitment is satisfied, after making such inquiries as are reasonable, that when the commitment is entered into:

(i) the Commonwealth is unable to obtain better value for the expenditure in all the circumstances; or

(ii) if compliance with a direction by a Minister prevents the

 

Commonwealth from obtaining better value for the expenditure in all the circumstances—the Commonwealth will obtain the best value that is possible while complying with the direction; and

(d) unless:

(i) funds for the expenditure have been appropriated; or

(ii) a provision for the appropriation of funds for the expenditure is included in a proposed law submitted to the Parliament; or

(iii) having regard to an appropriation that is expected to be submitted to the Parliament, the Minister has given approval in writing for the commitment to be entered into; and

(e) unless the funds so appropriated or to be appropriated will be sufficient to meet the expenditure together with all other expected expenditure to those funds.

Persons who may approve proposals to spend public moneys: Parliamentary Departments

“44c. (1) The following persons have authority to approve a proposal to spend public moneys under an appropriation for a Department of the Parliament:

(a) the President of the Senate in relation to expenditure under an appropriation for which he or she is responsible; and

(b) the Speaker of the House of Representatives in relation to expenditure under an appropriation for which he or she is responsible; and

(c) the President of the Senate and the Speaker of the House of Representatives in relation to expenditure under an appropriation for which they are responsible.

“(2) A person mentioned in subregulation (1) may, in writing, delegate his or her powers under that subregulation to an officer.

Rights and liabilities of parties not affected

“44d. The rights and liabilities of the parties to a commitment requiring the expenditure of public moneys are not affected only because the commitment is entered into in contravention of regulation 44b.”.

Repeal

6. Regulations 46, 46a, 47, 48, 50, 51, 52, 52aa, 52a, 53 and 93 of the Finance Regulations are repealed.

7. After regulation 131aof the Finance Regulations, the following regulation is inserted:

Probable exceeding of appropriations to be reported

“131b. Where:

(a) a person has responsibility in relation to:

 

(i) the entering into of a commitment requiring the payment of public moneys; or

(ii) the payment of public moneys; and

(b) having regard to the rate of commitment or payment of funds that have been or are proposed to be appropriated, the person has reason to believe that an appropriation or proposed appropriation is likely to be exceeded;

the person must report the matter to the Secretary to the Department responsible for the appropriation or proposed appropriation or to an officer authorised by that Secretary.”.

Schedule

8. The Schedule to the Finance Regulations is amended by omitting Forms 11 and 13.

NOTES

1. Notified in the Commonwealth of Australia Gazette on 23 August 1989.

2. Statutory Rules 1942 No. 523 as amended to date. For previous amendments see Note 2 to Statutory Rules 1989. No. 19 and see also Statutory Rules 1989 Nos. 19, 56 and 142.

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