Financial Management and Accountability Orders 2008 (Cth)
Financial Management and Accountability Orders 2008
I, LINDSAY TANNER, Minister for Finance and Deregulation, make these Orders under section 63 of the Financial Management and Accountability Act 1997.
Dated May 2nd 2008
LINDSAY TANNER
Minister for Finance and Deregulation
Contents
Part 1Preliminary 1
1.1Name of Orders 1
1.2Commencement 1
1.3Revocation of Financial Management and Accountability Orders 2005 1
1.4Definitions 1
Part 2Special responsibilities of Chief Executives 2
2.1Audit Committee (Act, section 46) 2
2.2Fraud control report to responsible Minister (Act, section 45; FMA Regulations, regulation 19) 2
2.3Accounts and records (Act, section 48) 3
2.4Estimates 3
2.5Use of a Commonwealth credit card for particular purposes (Act, section 60; FMA Regulations, regulation 21) 3
2.6 Chief Executive may delegate powers 4
2.7 Finance Chief Executive may delegate powers 4
Part 3Care and custody of public money 5
3.1 Prompt banking of received money (Act, section 10) 5
3.2Public money in non-bankable currency (Act, section 10) 5
3.3Withdrawals from official accounts and internal transfers between accounts (Act, section 13) 5
Part 4Care and custody of public property 7
4.1Custody etc of securities (Act, section 40) 7
Part 5Business Operations 8
5.1Business operation of an Agency 8
Part 6Transferring Leave Entitlements 9
6.1 Payments for leave entitlements when employees move between Agencies etc 9
Part 7Savings and Transitional Provisions 11
7.1Actions taken and instruments made under the 2005 Orders 11
7.2Payments made before registration under order 6.4 of the 2005 Orders 11
7.3References to 2005 Orders in instruments 11
7.4 Meaning of 2005 Orders 11
Part 1 Preliminary
1.1 Name of Orders
1.1.1 These Orders are the Financial Management and Accountability Orders 2008.
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 2007.
Note Transitional and savings provisions, set out in Part 7 of these Orders, relate to the retrospective operation of these Orders, in particular Part 6 “Transferring Leave Entitlements”.
1.3 Revocation of previous Orders
1.3.1 The Financial Management and Accountability Orders 2005 are revoked.
Note Transitional and savings provisions, relating to the previous Orders, are set out in Part 7 of these Orders.
1.4 Definitions
1.4.1 In these Orders:
Act means the Financial Management and Accountability Act 1997.
Finance Chief Executive means the Secretary of the Department of Finance and Deregulation.
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 order 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 orders 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.
Note The Agency’s accounts and records are subject to separately prepared Orders made by the Finance Minister (and generally updated annually) in relation to the preparation of financial statements.
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 or a Commonwealth credit card number 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.
2.7 Finance Chief Executive may delegate powers
2.7.1The Finance Chief Executive may, by written instrument, delegate to an official any powers and functions given to the Finance Chief Executive under these Orders.
2.7.2 In exercising powers or functions under the delegation, the official must comply with any directions of the Finance Chief Executive.
Note Order 2.7 is included, to avoid doubt, in relation to specific powers and functions of the Finance Chief Executive, such as under Order 2.3 (Estimates) and Order 5.1 (Business operation of an Agency)
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 order 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 order 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, if no appropriation and drawing right is relied on in relation to the transfer.
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 in a manner, approved by the Chief Executive.
3.3.3 An official may withdraw an amount from an official account for the purpose of spending that amount under an appropriation, if the official has been issued with a relevant drawing right under paragraph 27(1)(a) of the Act.
3.3.4 In order 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 Orders 3.3.1 and 3.3.2 enable officials to effect internal transfers (including within an agency) of public money in circumstances in which no real or notional payment is being made and no appropriation is required, for example, where an Agency transfers money from one of their own official accounts to another (or to the custody of an official), or money is transferred from the Official Public Account to an Agency's account.
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 Care and custody of public property
4.1 Custody etc of securities (Act, section 40)
4.1.1 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 4.1 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 5 Business Operations
5.1 Business operation of an Agency
5.1.1 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.
Note The determination of activities as a business operation of an Agency has implications for reporting and audit under Orders made by the Finance Minister in relation to the preparation of financial statements.
Part 6 Transferring leave entitlements
6.1 Payments for leave entitlements when employees move between Agencies etc
Broad application of the Order
6.1.1 This order applies if
(a) an employee in an Agency (the old employer) moves to another Agency, a Commonwealth authority or the High Court of Australia, (the new employer); and
(b) some or all of the employee’s leave entitlements are transferred to the new employer as part of the employee’s move; and
(c) the move is not a direct consequence of the transfer of a government function.
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.
Payment within 30 days of a correctly rendered invoice
6.1.2 Within 30 days of the receipt of a correctly rendered invoice from the new employer, the old employer must pay to the new employer an amount equal to the sum of the value, worked out on the basis of the employee’s salary immediately before leaving the old employer, 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.
Note Where, for example, an employee has moved from the old employer to the new employer for a short period (and will be returning to the old employer), the employers may agree that it is not efficient for the new employer to send an invoice and for the old employer to pay an amount under order 6.1.2 (as long as the employee will not be deprived of access to relevant leave).
Agencies to co-operate
6.1.3 The old employer must give reasonable assistance necessary for the new employer to prepare the invoice for the purposes of order 6.1.2, including information in writing about the employee’s entitlements.
Specific rules affecting members of the Defence Force
6.1.4 If:
(a) the employee was engaged in the old employer as a member of the Defence Force; and
(b) the employee is engaged in the new employer 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 the new employer; and
(d) the employee’s salary, immediately before moving from the old employer, is greater than the employee’s salary immediately on moving to the new employer;
the value of the employee’s long service leave entitlement is to be worked out on the basis of the employee’s salary immediately on moving to the new employer.
Definitions for transferring leave entitlements
6.1.5In this order:
Commonwealth authority has the same meaning as in the Commonwealth Authorities and Companies Act 1997.
employee includes a member of the Defence Force, a statutory office‑holder, and a person engaged under one of the following Acts (as amended from time to time):
Air Force Act 1923;
Australian Bureau of Statistics Act 1975;
Australian Federal Police Act 1979;
Australian Prudential Regulation Authority Act 1998;
Australian Securities and Investments Commission Act 2001;
Australian Security Intelligence Organisation Act 1979;
Commonwealth Electoral Act 1918;
Defence Act 1903;
Director of Public Prosecutions Act 1983;
Family Law Act 1975;
Naval Defence Act 1910;
Governor-General Act 1974;
High Court of Australia Act 1979;
Intelligence Services Act 2001;
Members of Parliament (Staff) Act 1984;
Office of National Assessments Act 1977;
Parliamentary Service Act 1999; and
Public Service Act 1999.
Note FMA Regulation 4(1)(c) provides that “a person employed, under the Members of Parliament (Staff) Act 1984, on the staff of an office-holder or a Senator or Member is allocated to the Department of State to which the money out of which the person’s remuneration is paid is appropriated”. That agency is currently the Department of Finance and Deregulation.
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
Part 7 Savings and Transitional Provisions
7.1 Actions taken and instruments made under the 2005 Orders
7.1.1 Any action, including the making of an instrument, done under the authority of a provision or group of provisions of the 2005 Orders is taken to have been done under the authority of the corresponding provision or group of provisions of the Financial Management and Accountability Orders 2008.
Note This includes delegations made by a Chief Executive or the Finance Chief Executive, and determinations by the Finance Chief Executive specifying an activity of an Agency as a business operation.
7.2 Payments made before registration under order 6.4 of the 2005 Orders
7.2.1 If an Agency made a payment in compliance with order 6.4 of the 2005 Orders:
(a) on or after 1 July 2007; and
(b) before the date these Orders were registered;
that payment is taken to have been made in compliance with Part 6 of these Orders.
7.3 References to 2005 Orders in instruments
7.3.1 A reference in an instrument to:
(a) the 2005 Orders; or
(b) a provision or group of provisions of those Orders;
is taken to include a reference to the Financial Management and Accountability Orders 2008 and the corresponding provision or group of provisions of those Orders (unless there is no such corresponding provision or group of provisions)
7.3.2 In this order, instrument means an instrument of a legislative character (including a legislative instrument) or administrative character, or any other document.
7.4 Meaning of 2005 Orders
7.4.1In this Part:
2005 Orders means the Financial Management and Accountability Orders 2005.
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