EXPLANATORY STATEMENT
STATUTORY RULES 1982 NO 148
ISSUED ON THE AUTHORITY OF THE MINISTER FOR FINANCE
SUBJECT - AUDIT ACT 1901 - AUDIT REGULATIONS (AMENDMENT)
The attached Statutory Rules amend the Audit Regulations made under sub-section 71(1) of the Audit Act 1901. The Statutory Rules:
• declare the National Exhibition Centre Trust (previously, the Canberra Showground Trust) to be an authority to which Division 2 of Part XI of the Audit Act applies (regulation 2(1));
• modify Division 2 of Part XI of the Audit Act (as authorised by sub-section 63C(2) of the Act) in that Division’s application to the National Exhibition Centre Trust (regulation 2(2)); and
• for the purposes of section 70BA of the Act, change the name of the Canberra Showground Trust in Schedule 2 to the Audit Regulations to the National Exhibition Centre Trust (regulation 3).
Part XI of the Audit Act sets out standard financial provisions concerning accounts, audit by the Auditor-General and annual reports. Division 2 of Part XI is appropriate for an authority required to keep accounts in accordance with commercial practice.
The modifications to Division 2 of Part XI of the Act will require the National Exhibition Centre Trust to include in its annual report details of any approvals or directions given by the appropriate Minister during the year to which a report relates. The modifications also provide that any Ministerial approval of bank accounts, manner of investment or financial statements will apply only to the Trust, and not to other authorities, and that, in addition to being tabled in Parliament, the annual reports of the Trust be tabled in the ACT House of Assembly.
Section 70BA of the Act provides that the regulations may declare a body to be a body to which that section applies. The effect of such a declaration is that the Auditor-General may authorise another officer to sign a report on the body that the Auditor-General is required by other legislation to submit to a Minister. Regulation 3 in the Statutory Rules changes the name of the Canberra Showground Trust to the National Exhibition Centre Trust.
Regulation 1 provides that the regulations shall come into operation on 1 July 1982, the date from which amendments to the Canberra Showground Trust Ordinance came into operation.
Overview
The Audit Regulations (Amendment) Statutory Rules 1982 were enacted to modify the application of Division 2 of Part XI of the Audit Act 1901 to the National Exhibition Centre Trust, formerly known as the Canberra Showground Trust. This legislative amendment was introduced to address the need for the Trust to adhere to commercial accounting practices and to ensure transparency and accountability in its financial dealings. Issued on the authority of the Minister for Finance, the policy objective of these Statutory Rules is to align the Trust's financial reporting and auditing requirements with those of other authorities under the Audit Act. The rules also mandate that any ministerial approvals related to the Trust's financial operations be specific to the Trust and not extend to other authorities. Furthermore, the annual reports of the Trust are required to be tabled both in the Parliament and in the ACT House of Assembly. These amendments came into effect on 1 July 1982, aligning with the date when changes to the Canberra Showground Trust Ordinance were enacted.
Scope and Application
The Audit Regulations (Amendment) Statutory Rules 1982 amend the Audit Regulations made under the Audit Act 1901, specifically concerning the National Exhibition Centre Trust, formerly known as the Canberra Showground Trust. These Statutory Rules apply to the Trust as an authority governed by Division 2 of Part XI of the Audit Act, which outlines standard financial provisions concerning accounts, audits by the Auditor-General, and annual reports. The amendments declare the National Exhibition Centre Trust as an authority subject to Division 2 of Part XI of the Audit Act, which is appropriate for entities required to maintain accounts according to commercial practices. The changes to Division 2 of Part XI require the Trust to detail any ministerial approvals or directions in its annual reports, ensuring these apply exclusively to the Trust and not to other authorities. Additionally, the annual reports must be tabled in both Parliament and the ACT House of Assembly. The Statutory Rules also update the name of the Canberra Showground Trust to the National Exhibition Centre Trust in Schedule 2 of the Audit Regulations. These amendments came into effect on 1 July 1982.
Key Provisions
The Audit Regulations (Amendment) Statutory Rules 1982 No. 148, issued under the authority of the Minister for Finance, introduce significant changes to the application of the Audit Act 1901. Primarily, these amendments pertain to the National Exhibition Centre Trust (formerly known as the Canberra Showground Trust) and involve modifications to Division 2 of Part XI of the Audit Act (regulations 2(1) and 2(2)). This division applies to authorities required to maintain accounts in accordance with commercial practice.
Under these regulations, the National Exhibition Centre Trust is now subject to specific financial provisions that mandate the inclusion of certain details in its annual report. Specifically, the Trust must detail any approvals or directions issued by the relevant Minister during the year of the report (regulation 2(2)). Additionally, any ministerial approvals regarding bank accounts, investment methods, or financial statements will only apply to the Trust and not to other authorities (regulation 2(2)). Furthermore, these annual reports must be tabled in both Parliament and the ACT House of Assembly (regulation 2(2)).
The obligations imposed on the National Exhibition Centre Trust are stringent. The Trust is required to adhere to commercial accounting practices and maintain detailed records of any ministerial directives related to its financial operations. The Trust must also ensure that its annual reports include comprehensive details of ministerial approvals and directions, which are tabled in both federal and territory legislative bodies. This dual reporting requirement ensures transparency and oversight at multiple levels of government.
Failure to comply with the provisions of the Audit Act 1901 as amended by these regulations can result in significant consequences. While the specific penalties are not detailed within the Explanatory Statement, the general framework of the Audit Act 1901 provides for both civil and criminal penalties for non-compliance. Civil penalties may include fines, while criminal penalties could involve imprisonment, reflecting the seriousness with which the Act treats breaches of its financial oversight provisions.