EXPLANATORY STATEMENT
1986 No. 297
SUBJECT: AUDIT ACT 1901
AUDIT REGULATIONS (AMENDMENT)
ISSUED ON THE AUTHORITY OF THE MINISTER FOR FINANCE
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(2) 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 BUSH FIRE COUNCIL
Since the ACT Bush Fire Council, together with other ACT Statutory Authorities, was made subject to Division 3 of Part XI of the Audit Act 1901 on 1 July 1984 it has become apparent that the Council now fulfills a far less independent role than was envisaged when the ACT Careless Use of Fire Ordinance was first enacted in 1933. The Council does not either own equipment or incur expenditure. The equipment used is provided by the Department of Territories and that department incurs all expenditure on bush fire matters.
In these circumstances it is considered inappropriate for the Council to prepare financial statements in accordance with Division 3 of the Act. More appropriately, what should be prepared is a statement of assets held by, or expenditure incurred by, the Department of Territories on bush fire activities.
Sub-section 63M has been modified, in its application to the Council, to facilitate the adoption of a more relevant form of reporting approved by the Minister for Territories in lieu of the Minister for Finance.
CANBERRA COMMERCIAL DEVELOPMENT AUTHORITY
The existing regulations include reference to the Canberra Commercial Development Authority (CCDA) (the Authority). As the Authority no longer exists, the regulations have been amended to provide for the omission of all references to the Authority.