EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO. 132
The attached Statutory Rules amend the Audit Regulations made under sub-section 71(1) of the Audit Act 1901 (the Act) for the purposes of section 63C of the Act.
Sub-section 63C(2) of the Act provides that a body incorporated for a public purpose by an Ordinance of the ACT may be declared, by regulations made under sub-section 71(1), to be an authority to which either Division 2 or 3 of Part XI of the Act applies, subject to any modifications made by the regulations to the relevant Division in its application to that authority.
Part XI of the Act sets out financial provisions concerning accounts, audit and annual reports that are designed to have common application to public bodies to which Part XI is declared, by regulation, to apply. Division 2 contains provisions which are appropriate to an authority which is required to keep accounts in accordance with commercial practice. Division 3 contains those provisions which are appropriate to an authority which is not required to keep accounts in accordance with commercial practice.
The amendments to the Audit Regulations are as follows:-
Australian Capital Territory Health Authority
The previous Regulations declared that Division 3 of Part XI applied to the Capital Territory Health Commission (the Commission). However, the Capital Territory Health Commission was abolished by the Health Services Ordinance 1985 (No 3 of 1985) and a new body called the Australian Capital Territory Health Authority (the Authority) established in its stead.
Accordingly, Part 1 of Schedule 1 has been amended by omitting the former references to the Commission and by including a new reference to the Authority which declares that Authority to be subject to Division 3. The Part also provides that the relevant Minister in relation to the Authority shall be the Minister for Health.
In addition, Part VII of Schedule 1, which modified Division 3 in its application to the Commission has been omitted.
A new Part 1A has been included to modify Division 3 in its application to the Authority. The modifications are that:-
• the report required under section 63M of the Audit Act shall include any direction given by the Minister for Health to the Authority under sub-section 7(4) of the Health Services Ordinance 1975; and
• that the financial statements and Auditor-General’s Report in respect of the Authority shall be tabled in the Australian Capital Territory House of Assembly as well as placed before both Houses of Parliament.
Canberra Theatre Trust
In the previous regulations the Canberra Theatre Trust (the Trust) was made subject to Division 2. In view of the powers, functions and manner of operation of the Trust, it is now considered more appropriate for the Trust to maintain its accounts in the manner required by a non-commercial authority.
Accordingly, Part I of Schedule 1 has been amended to declare the Trust to be subject to Division 3. Part VI has also been amended to modify Division 3 in its application to the Trust by requiring:-
• that the Trust’s Annual Report shall set out any direction given by the Minister for Territories to the Trust under section 20 of the Canberra Theatre Trust Ordinance 1965; and
• that the annual report and the financial statements of the Trust and the Auditor-General’s Report thereon shall be laid before the Australian Capital Territory House of Assembly as well as tabled in both Houses of Parliament.
Other Amendments
Other amendments of a drafting nature have also been made.