EXPLANATORY STATEMENT
STATUTORY RULES 1984 NO. 125
ISSUED ON THE AUTHORITY OF THE MINISTER FOR FINANCE
The attached Statutory Rules amend the Audit Regulations made under sub-section 71(1) of the Audit Act 1901. The Statutory Rules:-
• repeal the existing Schedule I and replace it with a new Schedule I;
• add six ACT Statutory Authorities to those authorities to which Part XI of the Audit Act 1901, as modified in the Audit Regulations, applies;
• amend the Audit Regulations as a consequence of amendments made to sub-sections 63D(2), 63E(2) and 63J(3) of the Audit Act 1901 by the Audit Amendment Act 1984;
• omit from the Audit Regulations certain unnecessary modifications to Part XI in its application to the ACT Schools Authority, the Building and Construction Industry Long Service Leave Board and the National Exhibition Centre Trust; and
• add two bodies to the Schedule of bodies to which section 70BA of the Audit Act applies.
The detail of the amendments is as follows.
APPLICATION OF PART XI OF THE AUDIT ACT 1901.
Part XI of the Audit Act 1901 contains provisions relating to annual reports, financial statements, audit, banking, investments, etc that have common application to public bodies that are declared by the Audit Regulations to be bodies to which Part XI applies.
The Statutory Rules amend the Audit Regulations by applying Part XI of the Audit Act, with effect from 1 July 1984, to the following ACT Statutory Authorities:-
Division 2 of Part XI - Bodies required to keep accounts in accordance with commercial practice.
Canberra Commercial Development Authority
Canberra Theatre Trust
Milk Authority of the Australian Capital Territory
Division 3 of Part XI - Bodies not required to keep accounts in accordance with commercial practice.
Bush Fire Council
Capital Territory Health Commission
Legal Aid Commission (ACT)
Section 63C of the Audit Act provides that Divisons 2 and 3 of Part XI of the Act may be modified by the regulations in their application to bodies to which either Division is declared to apply. In its application to the foregoing authorities, Part XI is modified as follows:-
• Section 63J, which pertains to bank accounts, does not apply to either the Bush Fire Council or the Legal Aid Commission (ACT) since it is not appropriate that those authorities be empowered to operate bank accounts outside the Commonwealth Public Account.
• Directions given under the relevant Ordinance, by the appropriate Minister, to the Canberra Theatre Trust, the Capital Territory Health Commission or the Milk Authority of the ACT are to be included in that authority’s annual report.
• Each authority’s annual report and financial statement are to be laid before the ACT House of Assembly as well as before each House of Parliament.
• Similarly, but with the exception of the report on the Legal Aid Commission (ACT), a copy of the Auditor-General’s report on each authority is to be laid before the ACT House of Assembly.
The above modifications to the reporting provisions are ‘standard’ provisions for ACT authorities.
SUB-SECTIONS 63D(2), 63E(2) AND 63J(3) OF THE AUDIT ACT
Amendments previously effected to the Audit Regulations modified sub-sections 63D(3), 63E(2) and 63J(3) in their application to the ACT Schools Authority, the Building and Construction Industry Long Service Leave Board and the National Exhibition Centre Trust. The modifications corrected technical deficiences in those sub-sections.
Subsequently, the Audit Amendment Act 1984 included amendments to sub-sections 63D(3), 63E(2) and 63J(3) which rectified the deficiences in those sections. Accordingly, the modifications in the Audit Regulations, which will become redundant when the amendment to the Audit Act comes into operation on 1 July 1984, will be omitted with effect from that date.
SUB-SECTIONS 63(1)(c), 63H(1) AND 63M(1)
Previously the Audit Regulations also included modifications to sub-sections 63(1)(c), 63H(1) and 63M(1) to correct supposed deficiencies in those sub-sections (similar to those in sub-sections 63D(3), 63E(2) and 63J(3). Legal advice, however, has confirmed that the sub-sections are not so deficient and the modifications have been omitted from the Audit Regulations.
REGULATIONS FOR THE PURPOSES OF SECTION 70BA
The Statutory Rules add the Army and Air Force Canteen Service Board of Management and the Australian Centre for International Agricultural Research to Schedule II of the Regulations that lists bodies declared under section 70BA of the Audit Act.
Schedule II lists bodies in respect of which the Auditor-General may authorise another officer to sign the reports on those bodies. This power of authorization does not affect the Auditor-General’s overall responsibility for the conduct of the audits undertaken and the Auditor-General has given the undertaking that he will sign personally an audit report on a declared body, should particular circumstances warrant such action.