EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO. 303
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 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 those public bodies to which Part XI is declared, either by regulation or by an act, 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 declare the Canberra Public Cemetery - Gungahlin - Trust and the Canberra Public Cemetery - Woden - Trust to be bodies to which Division 3 of Part XI of the Act applies. Given those bodies’ powers and functions it is appropriate that they are not required to keep accounts in accordance with commercial practice.
In its application to the Trusts, sub-section 63M(3) has been modified to require that copies of the relevant reports of the Trusts shall be tabled in the ACT House of Assembly as well as in both Houses of Parliament.
Overview
The Statutory Rules 1985 No. 303, issued under the authority of the Minister for Finance, amend the Audit Regulations to address a gap in the financial provisions of the Audit Act 1901 for specific entities. The purpose of these amendments is to declare the Canberra Public Cemetery - Gungahlin - Trust and the Canberra Public Cemetery - Woden - Trust as bodies to which Division 3 of Part XI of the Audit Act applies. This adjustment is appropriate given that these entities are not required to keep accounts in accordance with commercial practice. In line with this change, the amendments modify sub-section 63M(3) to mandate that copies of the relevant reports from these Trusts must be tabled in the ACT House of Assembly as well as in both Houses of Parliament. This legislative update ensures that the financial oversight and reporting requirements are tailored to the unique functions and powers of these public entities.
Scope and Application
The Statutory Rules 1985 No. 303, issued under the authority of the Minister for Finance, amend the Audit Regulations made under the Audit Act 1901. These amendments specifically declare the Canberra Public Cemetery – Gungahlin – Trust and the Canberra Public Cemetery – Woden – Trust as bodies to which Division 3 of Part XI of the Act applies. This application is appropriate given the powers and functions of these trusts, as they are not required to keep accounts in accordance with commercial practice. Part XI of the Act encompasses financial provisions concerning accounts, audit, and annual reports, which are designed for common application to public bodies, subject to modifications by regulations. The trusts are subject to the audit and financial reporting requirements outlined in Division 3, tailored to bodies that do not maintain accounts in accordance with commercial practice. Furthermore, the amendments modify sub-section 63M(3) to include the requirement that copies of the relevant reports of the trusts be tabled in the ACT House of Assembly as well as in both Houses of Parliament.
Key Provisions
The main sections of the Statutory Rules provide amendments to the Audit Regulations under sub-section 71(1) of the Audit Act 1901, as authorised by section 63C of the Act. Section 63C(2) allows for the declaration of bodies incorporated for a public purpose by an Ordinance of the ACT to be subject to either Division 2 or 3 of Part XI of the Act, with modifications as necessary. These rules specifically declare the Canberra Public Cemetery - Gungahlin - Trust and the Canberra Public Cemetery - Woden - Trust to be subject to Division 3 of Part XI, which applies to authorities that are not required to keep accounts in accordance with commercial practice (sections 63C(2) and 63M(3)).
The obligations imposed by these rules include the requirement that the Canberra Public Cemetery - Gungahlin - Trust and the Canberra Public Cemetery - Woden - Trust must comply with the financial provisions outlined in Division 3 of Part XI of the Act. This means they must adhere to the requirements for financial reporting and audits, but without the stringent commercial practice standards that Division 2 entails. Additionally, these Trusts are required to table copies of their relevant reports in the ACT House of Assembly as well as in both Houses of Parliament, as stipulated in the modified sub-section 63M(3) (section 63M(3)).
Any breach of the requirements set out in the Audit Act 1901 and the amended Audit Regulations could result in civil or criminal consequences. Although the specific offences and penalties are not detailed in the Explanatory Statement, it is understood that breaches of the Audit Act could potentially lead to legal action. The penalties for such breaches could range from fines to more severe criminal charges, depending on the nature and severity of the offence. These penalties are designed to ensure compliance with the financial and auditing provisions outlined in the Act.