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.
Overview
The Statutory Rules 1985 No. 132, enacted by the Australian Capital Territory, amend the Audit Regulations under the Audit Act 1901 to address the legislative changes resulting from the establishment of the Australian Capital Territory Health Authority and the Canberra Theatre Trust. These amendments ensure that the new entities are appropriately subject to the relevant divisions of Part XI of the Audit Act, which outlines the financial provisions concerning accounts, audit and annual reports applicable to public bodies. The amendments reflect the different operational mandates of these bodies, with the Health Authority being subject to Division 3, which pertains to non-commercial accounts, and the Canberra Theatre Trust transitioning to the same division for similar reasons. This change in regulation is necessary to align the legislative framework with the current organisational structures and operational mandates of these entities, thereby maintaining effective oversight and compliance with financial reporting standards.
Scope and Application
The Audit Regulations, as amended by Statutory Rules 1985 No. 132, apply to certain authorities incorporated for a public purpose within the Australian Capital Territory, specifically the Australian Capital Territory Health Authority and the Canberra Theatre Trust. These amendments are made under the authority granted by the Audit Act 1901 and are designed to ensure that the financial provisions concerning accounts, audit and annual reports are appropriately applied to these entities. The regulations modify which divisions of Part XI of the Act apply to these authorities, with Division 3 being applied to the Australian Capital Territory Health Authority and Division 2 being applied to the Canberra Theatre Trust, reflecting their respective operations and requirements. These amendments also specify that the financial statements and Auditor-General’s reports for these authorities must be tabled in the Australian Capital Territory House of Assembly and placed before both Houses of Parliament, ensuring transparency and accountability. The regulations are subject to further modifications through subordinate instruments, which may further refine the application of the Act to these entities.
Key Provisions
The main operative sections of the Statutory Rules (No. 132) are focused on amending the Audit Regulations to update the application of specific divisions within Part XI of the Audit Act 1901. Section 1 of Schedule 1 replaces references to the Capital Territory Health Commission with the Australian Capital Territory Health Authority, aligning with the new entity established by the Health Services Ordinance 1985. This change ensures that the Authority is subject to Division 3, which applies to authorities not required to keep accounts in accordance with commercial practice. Section 2 of Schedule 1 modifies the application of Division 3 for the Canberra Theatre Trust, changing it from Division 2 to Division 3, recognising the Trust's non-commercial nature. Additionally, Section 3 and Section 4 of Schedule 1 detail specific requirements for the Authority and the Trust regarding the inclusion of ministerial directions in their annual reports and the tabling of these reports in the Australian Capital Territory House of Assembly and both Houses of Parliament.
The obligations imposed by these regulations primarily involve the Australian Capital Territory Health Authority and the Canberra Theatre Trust. The Authority is required to include any direction given by the Minister for Health under sub-section 7(4) of the Health Services Ordinance 1975 in its annual report, and it must also table its financial statements and the Auditor-General's Report before the Australian Capital Territory House of Assembly and both Houses of Parliament. Similarly, the Trust must include any direction given by the Minister for Territories under section 20 of the Canberra Theatre Trust Ordinance 1965 in its annual report and table its financial statements and the Auditor-General's Report before the Australian Capital Territory House of Assembly and both Houses of Parliament.
There are no specific offences, penalties, or civil/criminal consequences mentioned in the text for breaches of these regulations. The Statutory Rules focus on the procedural requirements and reporting obligations for the Authority and the Trust. However, it is implicit that failure to comply with these requirements may lead to administrative or oversight actions by the relevant authorities. The absence of explicit penalties in the text suggests that the focus is on ensuring compliance through proper reporting and oversight mechanisms.