Financial Management and Accountability Orders 2005 (Cth)
Financial Management and Accountability Orders 2005
I, NICK MINCHIN, Minister for Finance and Administration, make these Orders under section 63 of the Financial Management and Accountability Act 1997.
Dated 29 June 2005
NICK MINCHIN
Minister for Finance and Administration
Contents
Part 1Preliminary
1.1Name of Orders 3
1.2Commencement 3
1.3Revocation of Financial Management and Accountability Orders 1997 3
1.4Definitions 3
Part 2Special responsibilities of Chief Executives
2.1Audit Committee (Act, section 46) 4
2.2Fraud control report to responsible Minister (Act, section 45; FMA Regulations, regulation 19) 4
2.3Accounts and records (Act, section 48) 5
2.4Estimates 5
2.5Use of a Commonwealth credit card for particular purposes (Act, section 60; FMA Regulations, regulation 21) 5
2.6Chief Executive may delegate powers 6
Part 3Care and custody of public money
3.1Prompt banking of received money (Act, section 10) 7
3.2Public money in non-bankable currency (Act, section 10) 7
3.3Withdrawals from official accounts and internal transfers between accounts (Act, section 13) 7
Part 4Payment of public money
4.1Agency Appropriation Advice 9
Part 5Care and custody of public property
5.1Custody etc of securities (Act, section 40) 10
Part 6Miscellaneous
6.1Compliance with instructions issued by the Chief Executive of another Agency 11
6.2Business operation of an Agency 11
6.3Finance Chief Executive may delegate powers 11
6.4Payments for leave entitlements when employees move between Agencies etc on or after 1 July 2001 11
Schedule 1Prescribed Form 13
Part 1 Preliminary
1.1 Name of Orders
1.1.1 These Orders are the Financial Management and Accountability Orders 2005.
Note The requirements for annual financial statements, prepared by the Chief Executive of an Agency under section 49 of the Financial Management and Accountability Act 1997, are specified in separate Orders made under subsection 63 (1) of the Act.
1.2 Commencement
1.2.1 These Orders commence on 1 July 2005.
1.3 Revocation of Financial Management and Accountability Orders 1997
1.3.1 The Financial Management and Accountability Orders 1997 are revoked.
1.4 Definitions
1.4.1 In these Orders:
Act means the Financial Management and Accountability Act 1997.
Commonwealth authority has the same meaning as in the Commonwealth Authorities and Companies Act 1997.
Finance Chief Executive means the Secretary of the Department of Finance and Administration.
FMA Regulations means the Financial Management and Accountability Regulations 1997.
responsible Minister, in relation to an Agency, means the Minister responsible for the Agency.
Note Other words and phrases used in these Orders are defined in section 5 of the Act, including Agency, official and official account.
Part 2 Special responsibilities of Chief Executives
2.1 Audit Committee (Act, section 46)
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; and
(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; and
(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; and
(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.
2.1.3 In suborder 2.1.2:
Auditor-General means the Auditor-General for the Commonwealth under section 7 of the Auditor-General Act 1997.
2.2 Fraud control report to responsible Minister (Act, section 45; FMA Regulations, regulation 19)
2.2.1 A Chief Executive must prepare a report on fraud control for the Agency at least every 2 years, as referred to in the Commonwealth Fraud Control Guidelines.
2.2.2The report must include the following documents, prepared having regard to the Commonwealth Fraud Control Guidelines:
(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;
(b) a fraud control plan prepared having regard to information contained in the assessment report prepared under paragraph (a).
2.2.3 As soon as practicable after preparing the report, the Chief Executive must give the report to the Agency’s responsible Minister.
2.2.4 In suborders 2.2.1 and 2.2.2:
Commonwealth Fraud Control Guidelines means the guidelines made under regulation 19 of the FMA Regulations, as in force or existing when these Orders commence.
2.3 Accounts and records (Act, section 48)
2.3.1 For the purposes of section 48 of the Act, a Chief Executive must ensure that the Agency’s accounts and records properly record and explain the Agency’s transactions and financial position, and, 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 (Act, section 60; FMA Regulations, regulation 21)
2.5.1 A Chief Executive may:
(a) authorise a holder of a Commonwealth credit card to use the Commonwealth credit card to pay a claim that includes both official and coincidental private expenditure; and
(b) specify arrangements for the holder of the Commonwealth 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.
2.5.4 In this order:
Commonwealth credit card:
(a) means a Commonwealth credit card as defined in subsection 60 (3) of the Act; and
(b) includes a Commonwealth credit card number mentioned in subsections 60 (1) and (2) of the Act.
Note Under section 60 of the Act, use of a Commonwealth credit card otherwise than for 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 (Act, section 10)
3.1.1 An official who receives public money in a bankable currency (including money that becomes public money upon receipt) must bank the money 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 suborder 3.1.1:
banking day means a day on which a bank is open to the public for general banking business.
Note 1 Order 3.1 of these Orders is required by section 10 of the Act, which imposes a penalty for a failure to bank public money as required by these Orders.
Note 2 Section 10 of the Act provides that money includes cheques and similar instruments.
Note 3 Section 11 of the Act provides that an official must not deposit public money in any account other than an official account.
3.2 Public money in non-bankable currency (Act, section 10)
3.2.1An official who receives public money in a non-bankable currency (including money that becomes public money upon receipt) must ensure the protective custody of that money.
3.2.2 In suborder 3.2.1:
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.
Note 1 Order 3.2 of these Orders is required by section 10 of the Act, which imposes a penalty for a failure to bank public money as required by these Orders.
Note 2 Section 10 of the Act provides that money includes cheques and similar instruments.
3.3 Withdrawals from official accounts and internal transfers between accounts (Act, section 13)
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 a purpose, and maintained a manner, 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 suborder 3.3.2:
cash advance means public money, in the custody or control of an official, and held outside an official account, for a purpose of making payments of public money in cash.
Note 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.
Note 2 Under section 13 of the Act, a withdrawal of money from an official account that is not authorised by these Orders carries a penalty.
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 suborder 4.1.1:
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 (Act, section 40)
5.1.1 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; and
(b) maintain a register of all securities received; and
(c) ensure the protective custody of the securities.
Note Order 5.1 is required by section 40 of the Act, which imposes a penalty for a failure to deal with securities in accordance with these Orders.
Part 6 Miscellaneous
6.1 Compliance with instructions issued by the Chief Executive of another Agency
6.1.1 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 the 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 that are 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 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 FMA Regulations. Commonwealth authority is defined in order 1.4.1.
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 suborders 6.4.3 and 6.4.4:
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.
Schedule 1 Prescribed Form
(suborder 4.1.1)
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
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