Audit Regulations (Amendment)

Overview

The Statutory Rules 1988, issued under the authority of the Minister for Finance, amend the Audit Regulations 1987 to address specific financial provisions concerning accounts, audit, and annual reports as outlined in the Audit Act 1901. This Act provides the framework for the financial oversight of public authorities, enabling the Governor-General to make regulations for carrying out its provisions. The amendments are intended to ensure the appropriate application of Part XI of the Audit Act to the ACT Institute of Technical and Further Education, alter the reporting period for the ACT Gaming and Liquor Authority, and remove references to the now-abolished ACT House of Assembly. By applying Division 3 of Part XI to the ACT Institute of Technical and Further Education, the regulations accommodate the unique nature of the Institute's operations, which do not adhere to commercial practice, while also ensuring compliance with specific financial reporting requirements. The policy objective is to maintain accurate and relevant financial reporting standards for public authorities, facilitating effective governance and accountability.

Scope and Application

The Audit Regulations, pursuant to the authority granted under Section 71 of the Audit Act 1901, have been amended to apply Division 3 of Part XI of the Act to the ACT Institute of Technical and Further Education, with certain modifications. The Institute, being a body corporate established by the ACT Institute of Technical and Further Education Ordinance 1987, was deemed appropriate to be subject to provisions that do not require it to keep accounts in accordance with commercial practice. Consequently, the application of Sections 63K and 63L of the Act to the Institute has been modified to include references to trust moneys or trust property, and transactions relating to these. Additionally, the annual reports for the Institute are to be in respect of the academic year rather than the financial year, and details of any directions given by the appropriate Minister under subsection 6(3) of the ACT Institute of Technical and Further Education Ordinance 1987 must be included in the Institute’s annual report. The Regulations have also been amended to change the period covered by the first report of the ACT Gaming and Liquor Authority to the period from 30 June 1987 to 30 June 1988, addressing the impracticality of the previous shorter reporting period. Furthermore, the Regulations have been updated to remove references to the ACT House of Assembly, given its abolition by the repeal of the House of Assembly Ordinance 1979 through the Advisory Council Ordinance 1986.

Key Provisions

The main sections of the Statutory Rules amend the Audit Regulations in three significant ways. Firstly, Division 3 of Part XI of the Audit Act 1901 is applied to the ACT Institute of Technical and Further Education (section 63K, 63L, and 63M), with certain modifications. Secondly, the period to be covered by the first report of the ACT Gaming and Liquor Authority is changed from 30 June 1987 to 30 June 1988 (section 63H). Lastly, certain changes are made to reflect the abolition of the ACT House of Assembly, such as removing references to the ACT House of Assembly in sections 63G and 63M. The obligations and requirements imposed by the Statutory Rules are specific to each entity governed by the Audit Regulations. For the ACT Institute of Technical and Further Education, the regulations mandate that it adhere to Division 3 of Part XI, modified to include references to trust money or trust property and to report on the academic year rather than the financial year. For the ACT Gaming and Liquor Authority, the regulations require the first report to cover a full year, specifically from 30 June 1987 to 30 June 1988, to enhance its utility for comparative purposes. For both entities, the regulations also stipulate the inclusion of details of any ministerial directions in their annual reports. With the abolition of the ACT House of Assembly, these reports no longer need to be tabled in the ACT House of Assembly but must still be submitted to the relevant Minister and tabled in both Houses of Parliament. The Statutory Rules also detail the consequences of non-compliance with the amended Audit Regulations. Although specific offences, penalties, or civil/criminal consequences are not explicitly stated within the Explanatory Statement, breaches of the Audit Regulations can generally lead to administrative penalties, fines, or other enforcement actions as per the Audit Act 1901. The maximum penalties would depend on the severity of the breach and the discretion of the relevant authorities in enforcing compliance.