Financial Management and Accountability Orders 1997 (Cth)
Financial Management and Accountability Orders 1997
made under section 63 of the
Financial Management and Accountability Act 1997
This compilation was prepared on 2 July 2001
taking into account amendments up to Financial Management and Accountability Amendment Orders 2001 (No. 2)
Prepared by the Office of Legislative Drafting,
Attorney-General’s Department, Canberra
Contents
Page
Part 1 Preliminary
1.1 Name of Orders [see Note 1] 3
1.2 Commencement [see Note 1] 3
1.3 Interpretation 3
Part 2 Special responsibilities of Chief Executives
2.1 Audit Committee 4
2.2 Fraud Control Report to Responsible Minister 4
2.3 Accounts and records 4
2.4 Estimates 5
2.5 Use of a Commonwealth credit card for particular purposes 5
2.6 Chief Executive may delegate powers 5
Part 3 Care and custody of public money
3.1 Prompt banking of Received Money 7
3.2 Public Money in non-bankable currency 7
3.3 Withdrawals from, including internal transfers between, official accounts 7
Part 4 Payment of public money
4.1 Agency Appropriation Advice 8
Part 5 Care and custody of public property
5.1 Custody etc of securities 9
Part 5A Annual financial statements
Part 6 Miscellaneous
6.1 Compliance with instructions issued by the Chief Executive of another Agency 11
6.2 Business Operation of an Agency 11
6.3 Finance Chief Executive may delegate powers 11
6.4 Payments for leave entitlements when employees move between Agencies etc on or after 1 July 2001 11
6.5 Payments for leave entitlements of employees who moved between Agencies etc after 15 December 1999 and before 1 July 2001 12
Schedule 1 Prescribed form 14
Notes 16
Part 1 Preliminary
1.1 Name of Orders [see Note 1]
These Orders are the Financial Management and Accountability Orders 1997.
Note The requirements for annual financial statements prepared by the Chief Executive of an Agency under section 49 of the Act are specified in separate Orders made under subssection 63 (1) of the Act for each financial year.
1.2 Commencement [see Note 1]
These Orders commence on the same day as the Financial Management and Accountability Act 1997.
1.3 Interpretation
In these Orders, unless the contrary intention appears:
Act means the Financial Management and Accountability Act 1997.
Auditor-General means the Auditor-General for the Commonwealth.
Commonwealth authority means a Commonwealth authority within the meaning of the Commonwealth Authorities and Companies Act 1997.
Finance Chief Executive means the Secretary to the Department of Finance and Administration.
FMA Regulations means the Financial Management and Accountability Regulations.
non-bankable currency means:
(a) a currency that cannot be banked; or
(b) a currency the banking of which would, in the opinion of the Chief Executive of the Agency by which it is received, involve significant costs or administrative difficulty.
official account means a bank account mentioned in section 9 of the Act.
Part 2 Special responsibilities of Chief Executives
2.1 Audit Committee
2.1.1 The terms of reference for an Audit Committee established under section 46 of the Act must include particulars of membership, frequency of meetings, functions and responsibilities of the Committee.
2.1.2 The functions and responsibilities of an Audit Committee include:
(a) the approval of internal annual and strategic audit plans of the Agency;
(b) the review of all audit reports involving matters of concern to senior management of the Agency, including the identification and dissemination of good practices;
(c) the provision of advice to the Chief Executive on action to be taken on matters of concern raised in a report of the internal auditors or in a report of the Auditor-General concerning the Agency;
(d) as far as practicable, the coordination of audit programs conducted by internal auditors and the programs conducted by the Auditor-General; and
(e) the provision of advice to the Chief Executive on the preparation and review of financial statements of the Agency.
2.2 Fraud Control Report to Responsible Minister
2.2.1 A Chief Executive must prepare a report on fraud control for the Agency, as soon as practicable after the review period referred to in the Fraud Control Policy of the Commonwealth and the guidelines issued by the Minister for Justice under regulation 19 of the FMA Regulations.
2.2.2A report prepared under suborder 2.2.1 must include the following documents prepared having regard to guidelines issued by the Minister for Justice under regulation 19 of the FMA Regulations:
(a) a report providing:
(i) an assessment of risks for fraud on the agency; and
(ii) if a fraud control plan has been previously prepared, an assessment of that previous fraud control plan; and
(b) a fraud control plan prepared having regard to information contained in an assessment report prepared under paragraph (a).
2.2.3 As soon as practicable after preparing a report under suborder 2.2.1, the Chief Executive must give the report to the Minister responsible for the Agency.
2.3 Accounts and records
For the purposes of section 48 of the Act, a Chief Executive must ensure that the accounts and records of the Agency properly record and explain the Agency’s transactions and financial position and that, without limiting the generality of this obligation, must ensure that the accounts and records are kept in a way that:
(a) records the receipt and expenditure of public money on a daily basis; and
(b) enables information to be provided to the Finance Chief Executive when required by the Finance Chief Executive:
(i) on Commonwealth financial affairs to be included in budget and related documentation; and
(ii) on the financial affairs of the Agency for the preparation of aggregate reporting for the Commonwealth; and
(c) enables the preparation of financial statements in accordance with section 49 of the Act; and
(d) allows those financial statements to be conveniently and properly audited in accordance with the Act; and
(e) ensures that moneys are only expended for the purpose for which they are appropriated; and
(f) ensures the limit on any appropriation is not exceeded.
2.4 Estimates
2.4.1 A Chief Executive must prepare budget estimates for each financial year, and for any other periods directed by the Finance Chief Executive.
2.4.2 The estimates must be:
(a) prepared in the form specified by the Finance Chief Executive; and
(b) provided as required by the Finance Chief Executive.
2.5 Use of a Commonwealth credit card for particular purposes
2.5.1 A Chief Executive may:
(a) authorise a holder of a Commonwealth credit card to use the card to pay a claim that includes both official and coincidental private expenditure; and
(b) specify arrangements for the holder of that credit card to reimburse the Commonwealth for that coincidental private expenditure.
2.5.2 The holder of the Commonwealth credit card must pay to the Commonwealth the amount paid by the Commonwealth for the coincidental private expenditure.
2.5.3 The amount payable to the Commonwealth under this order is recoverable as a debt in a court of competent jurisdiction.
[Under section 60 of the Act, use of the card for other than official purposes or not in accordance with an authorisation under Order 2.5 of these Orders carries a penalty.]
2.6 Chief Executive may delegate powers
2.6.1 The Chief Executive of an Agency may, by written instrument, delegate to an official any of the Chief Executive’s powers and functions under these Orders (including powers delegated to the Chief Executive by the Finance Chief Executive but not including this power of delegation).
2.6.2 In exercising powers or functions under the delegation, the official must comply with any directions of the Chief Executive.
Part 3 Care and custody of public money
3.1 Prompt banking of Received Money
3.1.1 An official who receives money in a bankable currency that becomes public money upon receipt must pay the money into an official account as soon as practicable, but in any case not later than:
(a) the next banking day; or
(b) a banking day approved by the Chief Executive.
3.1.2 In this order 3.1:
banking day means a day on which a bank is open to the public for general banking business.
[Order 3.1 of these Orders is required by section 10 of the Act which imposes a penalty for failure to promptly bank public money as required by the Finance Minister’s Orders.]
3.2 Public Money in non-bankable currency
An official who receives money in a non-bankable currency that becomes public money upon receipt must ensure the protective custody of that money.
3.3 Withdrawals from, including internal transfers between, official accounts
3.3.1 An official may withdraw an amount from an official account for the purposes of depositing the amount into another official account.
3.3.2 An official may withdraw an amount from an official account for the purpose of establishing or reimbursing a cash advance established for the purpose, and maintained in such a manner, as is approved by the Chief Executive.
3.3.3 An official may withdraw an amount from an official account, as authorised by a valid drawing right.
3.3.4 In this order 3.3:
cash advance means public money, in the custody or control of an official, held outside an official account, for the purpose of making payments of public money in cash.
[1. Suborders 3.3.1 and 3.3.2 enable officials to effect internal transfers of public money in circumstances where this money will be retained by the Commonwealth.
2. In all circumstances, as covered by Order 3.3.3 where the outcome of the transaction will be an outflow from the Commonwealth, a valid drawing right will be required.]
Part 4 Payment of public money
4.1 Agency Appropriation Advice
4.1.1 The Finance Chief Executive may prepare, and give to a Chief Executive, an advice in accordance with the form prescribed in Schedule 1, that issues out of the Consolidated Revenue Fund amounts of public money that are appropriated by an Annual Appropriation Act and available to be applied by the Chief Executive subject to any conditions consistent with the terms of the appropriations.
4.1.2 In this order 4.1:
Annual Appropriation Act means the Appropriation (Parliamentary Departments) Acts and the Appropriation Acts in respect of a particular financial year.
Part 5 Care and custody of public property
5.1 Custody etc of securities
An official who receives any bonds, debentures or other securities (collectively known for the purpose of this order as securities) must:
(a) issue a receipt for the securities received;
(b) maintain a register of the securities received; and
(c) ensure the protective custody of the securities.
[Order 5.1 is required by section 40 of the Act which imposes a penalty for failure to deal with securities in accordance with the Finance Minister’s Orders.]
Part 5A Annual financial statements
Part 6 Miscellaneous
6.1 Compliance with instructions issued by the Chief Executive of another Agency
An official who uses another Agency to perform a financial task must comply with an instruction by the Chief Executive of the other Agency about performance of the task.
6.2 Business Operation of an Agency
6.2.1 The Finance Chief Executive may issue a determination specifying the activity or activities of an Agency to be treated as a business operation of an Agency.
6.3 Finance Chief Executive may delegate powers
6.3.1The Finance Chief Executive may, by written instrument, delegate to an official any powers and functions given to the Finance Chief Executive under these Finance Minister’s Orders
6.3.2 In exercising powers or functions under the delegation, the official must comply with any directions of the Finance Chief Executive.
6.4 Payments for leave entitlements when employees move between Agencies etc on or after 1 July 2001
6.4.1 This order applies if an ongoing employee in an Agency (Agency 1):
(a) moves to another Agency or a Commonwealth authority (Agency 2) as an ongoing employee on or after 1 July 2001; or
(b) moves to Agency 2 on a temporary basis on or after 1 July 2001 and later becomes an ongoing employee in Agency 2 without having ceased to perform duties in Agency 2.
Note Agency is defined in section 5 of the Act. It includes a Department of State, a Department of the Parliament and an Agency prescribed by the Financial Management and Accountability Regulations 1997. Commonwealth authority is defined in order 1.3.
6.4.2 However, this order does not apply if the move is a direct consequence of the transfer of a government function.
6.4.3 Subject to suborders 6.4.4 and 6.4.7, Agency 1 must pay to Agency 2 an amount equal to the sum of the value, worked out on the basis of the employee’s salary immediately before leaving Agency 1, of:
(a) the employee’s annual leave entitlement at that time; and
(b) 95% of the employee’s long service leave entitlement at that time.
6.4.4 If:
(a) the employee was engaged in Agency 1 as a member of the Defence Force; and
(b) the employee is engaged in Agency 2 in a capacity other than as a member of the Defence Force; and
(c) the employee is not legally entitled to any long service leave immediately before becoming engaged in Agency 2; and
(d) the employee’s salary, immediately before moving from Agency 1, is greater than the employee’s salary on moving to Agency 2;
the value of the employee’s long service leave entitlement is to be worked out on the basis of the employee’s salary on moving to Agency 2.
6.4.5 The amount must be paid to Agency 2 within 30 days after the employee becomes an ongoing employee in Agency 2.
6.4.6 Agency 1 must give to Agency 2 a written statement explaining how the amount has been worked out.
6.4.7 Agency 1 is not required to pay an amount to Agency 2 under this order if the entitlement to which the amount relates is not transferred to Agency 2 as part of the move of the employee.
6.4.8 In this order:
long service leave entitlement, for an employee, means:
(a) the period of long service leave to which the employee is legally entitled; or
(b) if the employee is not legally entitled to any long service leave, the amount worked out by multiplying the notional amount of long service leave to which the employee is entitled for a year of service by the weighting factor set out in the following table that applies to the number of years of service the employee has completed.
Years of service
Weighting factor
Less than 1 0.5 At least 1 but less than 2 0.6 At least 2 but less than 4 0.7 At least 4 but less than 6 0.8 At least 6 but less than 8 0.9 At least 8 1.0
ongoing employee includes a member of the Defence Force.
6.5 Payments for leave entitlements of employees who moved between Agencies etc after 15 December 1999 and before 1 July 2001
6.5.1 This order applies if:
(a) an ongoing employee in an Agency (Agency 1) moved to another Agency or a Commonwealth authority (Agency 2) after 15 December 1999 and before 1 July 2001; and
(b) Agency 1 paid to Agency 2 an amount for the annual leave or long service leave entitlements of the employee.
6.5.2 Agency 2 must repay the amount mentioned in paragraph 6.5.1 (b) to Agency 1 before 1 August 2001.
6.5.3 In this order:
ongoing employee includes a member of the Defence Force.
Schedule 1 Prescribed form
(order 4.1)
Agency Appropriation Advice
To: The Chief Executive, [the name of the Agency headed by the Chief Executive]
You are advised that you are authorised to make payments or incur expenses for the purposes of each appropriation approved from time to time by the Parliament applicable to [the name of the Agency] subject to the following:
(a) where as a result of a transfer of a function of an Agency the Finance Minister directs, under section 32 of the Financial Management and Accountability Act 1997, that all or part of an appropriation is to be transferred from one agency to another, the amounts of the original appropriations by the Parliament are to be adjusted accordingly;
(b) where an agreement with the Finance Minister has been entered into pursuant to section 31 of the Financial Management and Accountability Act 1997 in respect of a particular appropriation item, the amount of the appropriation is taken to be increased in accordance with the agreement, and on the conditions set out in the agreement;
(c) where the Finance Minister issues a determination under the Appropriation Acts in respect of additions to appropriations for adjustments or borrowings of Departmental items or the Advance to the Finance Minister, the amount of the appropriation is adjusted in accordance with that determination;
(d) where the responsible Presiding Officer issues a determination under the Appropriation (Parliamentary Departments) Acts in respect of additions to appropriations for adjustments or borrowings of Departmental items or the Advance to the responsible Presiding Officer, the amount of the appropriation is adjusted in accordance with that determination;
(e) where the Finance Minister makes a direction reducing the amount issued out of the Consolidated Revenue Fund in respect of a particular appropriation, the amount of the appropriation is reduced accordingly.
Finance Chief Executive
Notes to the Financial Management and Accountability Orders 1997
Note 1
The Financial Management and Accountability Orders 1997 (in force under section 63 of the Financial Management and Accountability Act 1997) as shown in this compilation is amended as indicated in the Tables below.
For application, saving or transitional provisions see Table A.
Table of Orders
| Title | Date of notification | Date of | Application, saving or | |
| Financial Management and Accountability Orders 1997 | 17 Dec 1997 (see Gazette 1997, No. GN50) | (see (a) and Gazette 1997, No. GN49) | ||
| Financial Management and Accountability Orders Amendment 1998 | 15 June 1998 (see Gazette 1998, No. S278) | (b) | — | |
| Financial Management and Accountability Orders (Amendment) 1998 | 22 July 1998 (see Gazette 1998, No. GN29) | 1 July 1998 | — | |
| Financial Management and Accountability Orders (Amendment) 1998 | — | (c) | — | |
| Financial Management and Accountability Orders (Amendment) 1999 | 1 July 1999 (see Gazette 1999, No. S299) | (d) | — | |
| Financial Management and Accountability Orders (Amendment) 1999 (No. 2) | 11 Aug 1999 (see Gazette 1999, No. GN32) | 11 Aug 1999 | — | |
| Financial Management and Accountability Amendment Orders 1999 (No. 3) | 1 Sept 1999 (see Gazette 1999, No. GN35) | (e) | — | |
| Financial Management and Accountability Orders (Amendment) 1999 (No. 4) | 27 Oct 1999 (see Gazette 1999, No. GN43) | 27 Oct 1999 | — | |
| Financial Management and Accountability Amendment Orders 2000 (No. 1) | 8 Nov 2000 (see Gazette 2000, No. GN44) | 8 Nov 2000 | O. 3 | |
| Financial Management and Accountability Amendment Orders 2001 (No. 1) | 27 June 2001 (see Gazette 2001, No. GN25) | 1 July 2001 | — | |
| Financial Management and Accountability Amendment Orders 2001 (No. 2) | 27 June 2001 (see Gazette 2001, No. GN25) | (f) | — | |
(a) Order 1.2 of the Financial Management and Accountability Orders 1997 provides as follows:
These Orders commence on the same day as the Financial Management and Accountability Act 1997.
The Financial Management and Accountability Act 1997 commenced on 1 January 1998.
(b) The Financial Management and Accountability Orders 1997 were amended by the Financial Management and Accountability Orders (Amendment) 1998, order 2 of which provides as follows:
These Orders apply to the preparation of financial statements pursuant to section 49 of the Financial Management and Accountability Act 1997 for the reporting periods ending on or after 30 June 1998.
(c) The Financial Management and Accountability Orders 1997 were amended by the Financial Management and Accountability Orders (Amendment) 1998, order 1 of which provides as follows:
These Orders apply to the preparation of financial statements pursuant to section 49 of the Financial Management and Accountability Act 1997 for the reporting periods ending on or after 30 June 1999.
(d) The Financial Management and Accountability Orders 1997 were amended by the Financial Management and Accountability Orders (Amendment) 1999, order 2 of which provides as follows:
These Orders commence on the same day as the Financial Management Legislation Amendment Act 1999.
The Financial Management Legislation Amendment Act 1999 commenced on 1 July 1999.
(e) The Financial Management and Accountability Orders 1997 were amended by the Financial Management and Accountability Amendment Orders 1999 (No. 3), order 2 of which provides as follows:
These Orders apply to the preparation of financial statements under section 49 of the Financial Management and Accountability Act 1997 in relation to financial years ending on or after 30 June 2000.
(f) The Financial Management and Accountability Orders 1997 were amended by the Financial Management and Accountability Amendment Orders 2001 (No. 2), order 2 of which provides as follows:
These Orders commence on the commencement of the Financial Management and Accountability (Financial Statements 2000–2001) Orders.
The Financial Management and Accountability (Financial Statements 2000–2001) Orders commenced on 27 June 2001.
Table of Amendments
| ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted | |
| Provision affected | How affected |
| O. 1.1....................................... | rs. 2001 No. 1 |
| Note to o.1.1.......................... | ad. 2001 No. 2 |
| O. 1.3....................................... | am. 1999 No. 1; 2001 No. 1 |
| O. 2.3....................................... | am. 1999 No. 1 |
| O. 3.1.1................................... | rs. 1999 No. 1 |
| O. 3.2....................................... | rs. 1999 No. 1 |
| O. 3.3....................................... | rep. 1999 No. 1 |
| O. 3.4.1................................... renumbered o. 3.3.1 | rs. 1999 No. 1 |
| O. 3.4.2................................... renumbered o. 3.3.2 | rs. 1999 No. 1 |
| O. 3.4.3................................... renumbered o. 3.3.3 | rs. 1999 No. 1 |
| O. 3.4.4................................... renumbered o. 3.3.4 | rs. 1999 No. 1 |
| O. 4.1.1................................... | rs. 1999 No. 1 |
| O. 4.1.2, 4.1.3........................ | rep. 1999 No. 1 |
| O. 4.2.1................................... | rs. 1999 No. 1 |
| O. 4.2.2................................... | rep. 1999 No. 1 |
| Part 5A.................................... | ad. 1998 No. 2 |
| O. 5A.1 ................................... | rep. 2001 No. 2 |
| Note to o. 5A.1....................... | ad. 1999 No. 3 |
| rep. 2001 No. 2 | |
| O. 6.2.2................................... | rep. 1999 No. 1 |
| O. 6.3.1, 6.3.2........................ | ad. 1998 No. 1 |
| rep. 1999 No. 2 | |
| O. 6.3.1................................... renumbered o. 6.4.1 | 1998 No. 1 |
| O. 6.4.1................................... renumbered o. 6.3.1 | 1999 No. 2 |
| O. 6.3.2................................... renumbered o. 6.4.2 | 1998 No. 1 |
| O. 6.4.2................................... renumbered o. 6.3.2 | 1999 No. 2 |
| O. 6.4, 6.5 .............................. (oo. 6.4.1–6.4.8) | ad. 2001 No. 1 |
| Oo. 6.4.1–6.4.8 ..................... | ad. 2001 No. 1 |
| Oo. 6.5.1–6.5.3 ..................... | ad. 2001 No. 1 |
| Schedule 1............................. | rs. 1999 No. 1 |
| am. 1999 No. 4 | |
| Schedule 2............................. | ad. 1998 No. 1 |
| rs. 1998 No. 3; 1999 No. 3; 2000 No. 1 | |
| rep. 2001 No. 2 | |
Table A Application, saving or transitional provisions
Financial Management and Accountability Amendment Orders 2000 (No. 1)
Application
These Orders apply to the preparation of financial statements under section 49 of the Financial Management and Accountability Act 1997 in relation to financial year ending on or after 30 June 2001.
0
0
0