EXPLANATORY STATEMENT 1988 No. 318
(ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE)
AUDIT REGULATIONS (AMENDMENT)
Subsection 71(1) of the Audit Act 1901 (the Act) provides that the Governor-General may make regulations for carrying out of the provisions of the Act. These Statutory Rules amend the Audit Regulations which were made for the purposes of section 63C of the Act.
Subsection 63C(2) of the Act provides that a body incorporated for a public purpose by an Ordinance of the Australian Capital Territory may be declared by the regulations, made under subsection 71(1) of the Act, to be a public authority to which either Division 2 or 3 of Part XI applies, subject to any modifications made by the regulations to the relevant Division in its application to that Authority.
Part XI sets out the standard financial provisions on accounts, audit and annual reports that may be applied to incorporated bodies established by legislation. Division 2 contains provisions for a body which is required to keep its accounts in accordance with commercial practice. Division 3 contains those provisions appropriate to a body which is not required to keep its accounts in accordance with commercial practice.
The Electricity and Water Ordinance 1988 (the Ordinance) established the ACT Electricity and Water Authority (the Authority) as a body corporate, with perpetual succession, capable of acquiring, holding and disposing of real and personal property and of suing and of being sued in its corporate name.
These Statutory Rules declare the Authority as a body to which Division 2 of Part XI applies. Given that the functions of the Authority are commercial, it is appropriate that it should be required to keep accounts in accordance with commercial practice.
In addition, section 63H, in its application to the Authority, has been modified to provide that the report required under that section shall include details of any directions given to the Authority by the Minister for the Arts, Sport, the Environment, Tourism and Territories pursuant to sections 36 or 41 of the Ordinance.
A further amendment to the Audit Regulations is included in these Statutory Rules to modify section 63M in its application to the ACT Institute of Technical and Further Education (the Institute).
The ACT Institute of Technical and Further Education Ordinance 1987 provides in sections 8, 9 and 10 that the Institute shall not buy shares, etc., form partnerships or participate in joint ventures without written Ministerial approval. Also, where approval is given, the Minister (i.e. the Minister for the Arts, Sport, the Environment, Tourism and Territories) must prepare a statement setting out the particulars of the action taken and the reasons for it. This statement is to be tabled in each House of the Parliament within 15 sitting days of that House after-
the approved action takes place; or
if the Minister is of the opinion that the disclosure would adversely affect the Institute’s commercial interests - after the Minister ceases to be of that opinion.
Section 63H of the Act has been modified, in its application to the Institute, to provide that the Institute’s annual report shall record the number of instances where the Minister is of the opinion that disclosure of the details of approvals under the relevant sections of the Ordinance, would be detrimental to the interests of the Institute.