EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO. 302
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 Public Trustee for the Australian Capital Territory to be a body to which Division 3 of Part XI of the Act applies. Given that body’s powers and functions it is appropriate that it is not required to keep accounts in accordance with commercial practice.
In its application to the Public Trustee, sub-section 63M(3) has been modified to require that copies of the relevant reports of the Trustee shall be tabled in the ACT House of Assembly as well as in both Houses of Parliament.
Overview
The Statutory Rules 1985 No. 302, issued on the authority of the Minister for Finance, introduce amendments to the Audit Regulations under sub-section 71(1) of the Audit Act 1901. These amendments aim to address the specific requirements of the Public Trustee for the Australian Capital Territory by declaring it as a body to which Division 3 of Part XI of the Audit Act applies. This division includes financial provisions that are not based on commercial practice, aligning with the unique functions and powers of the Public Trustee. The policy objective of these amendments is to ensure that the Public Trustee adheres to appropriate financial regulations that reflect its public purpose and the nature of its operations.
The amendments modify sub-section 63M(3) to include the requirement that copies of the relevant reports of the Public Trustee must be tabled in the ACT House of Assembly as well as in both Houses of Parliament, ensuring transparency and accountability in accordance with legislative requirements. This regulatory change was enacted to bridge a gap in the application of financial regulations to the Public Trustee, ensuring that its activities are subject to suitable oversight and reporting standards.
Scope and Application
The Audit Regulations under the Audit Act 1901, amended by Statutory Rules 1985 No. 302, apply to the Public Trustee for the Australian Capital Territory, recognising its unique role and functions. This Act, along with its regulations, governs financial provisions concerning accounts, audit, and annual reports, ensuring that public entities are held to appropriate standards of accountability and transparency. The regulations specify that the Public Trustee, due to its distinct nature and the public purpose it serves, is subject to Division 3 of Part XI of the Act, which accommodates entities that do not adhere to commercial practice in their accounting. Notably, the amendments require that reports by the Public Trustee be tabled in the ACT House of Assembly as well as in both Houses of Parliament, ensuring comprehensive oversight and scrutiny. These regulations do not extend beyond the jurisdictional boundaries of the Australian Capital Territory, focusing specifically on entities incorporated for public purposes within this region.
Key Provisions
The primary operative sections of these Statutory Rules are sections 2 and 3. Section 2 amends the Audit Regulations made under section 71(1) of the Audit Act 1901 (the Act) to declare the Public Trustee for the Australian Capital Territory as a body to which Division 3 of Part XI of the Act applies (section 2(1)). This means that the Public Trustee will be subject to the financial provisions outlined in Division 3 of Part XI, which is appropriate given its powers and functions (section 2(2)). Section 3 further modifies sub-section 63M(3) to require that copies of the relevant reports of the Public Trustee are tabled in the ACT House of Assembly as well as in both Houses of Parliament (section 3(1)). This ensures transparency and accountability in the operations of the Public Trustee.
These amendments impose specific obligations on the Public Trustee. Firstly, they must comply with the financial provisions set out in Division 3 of Part XI of the Act, which include requirements for the preparation, audit and tabling of financial reports (section 2(2)). Secondly, they must ensure that copies of their relevant reports are tabled in the ACT House of Assembly and both Houses of Parliament, as per the modification to sub-section 63M(3) (section 3(1)). These obligations are designed to ensure the Public Trustee operates with transparency and accountability, given its role and functions.
There are no explicit offences, penalties, or civil/criminal consequences mentioned in the Statutory Rules for failure to comply with the amended Audit Regulations. However, non-compliance with the financial reporting requirements could potentially lead to administrative or legal consequences under the Audit Act 1901 or other relevant legislation. It is also important to note that failure to table reports as required could be seen as a breach of parliamentary privilege and may lead to parliamentary action. The exact consequences of such breaches would depend on the specific circumstances and the interpretation of the relevant provisions.