Audit Regulations (Amendment)

Overview

The Audit Regulations (Amendment) and Finance Regulations (Amendment) 1987, issued under the authority of the Minister for Finance, were enacted to make specific amendments to the Audit Regulations and the Finance Regulations made pursuant to the Audit Act 1901. The purpose of these amendments is to update the regulatory framework in line with changes in statutory authorities and to address operational difficulties in the certification of payments under the Finance Regulations. This was achieved by adding certain authorities and bodies to the list in the Audit Regulations, reflecting changes in legislation and the cessation of operations of some bodies, and by modifying the criteria for certifying payments in the Finance Regulations to allow for more flexible assessment of the value of work done. These amendments ensure that the regulatory requirements remain relevant and practicable within the current legislative and operational environment.

Scope and Application

The Audit Regulations (Amendment) and Finance Regulations (Amendment) 1987, issued under the authority of the Minister for Finance, amend the Audit Regulations and the Finance Regulations made under the Audit Act 1901. These regulations extend to various authorities and bodies, including statutory authorities and other entities such as the Australian Capital Territory Health Authority and the Australian Institute of Health. The amendments to the Audit Regulations specifically update the list of authorities and bodies to which section 70BA of the Audit Act applies, reflecting legislative changes and the cessation of operations of certain bodies. The Audit Regulations enable the Auditor-General to authorise officers to sign reports required by law to be directed to a Minister for specific authorities, while reports mandated to be sent directly to Parliament remain personally signed by the Auditor-General. In the Finance Regulations, regulation 56 has been altered to allow the Departmental Secretary or an authorised officer to exercise judgement in assessing the value of work in progress, rather than requiring an exact statement of that value. This amendment aims to address difficulties arising from the previous strict requirement, while maintaining the need for certification that contract payments will not exceed the total contract price.

Key Provisions

The key operative sections of the Audit Act 1901, as amended by these Statutory Rules, primarily concern the regulation of statutory authorities and the delegation of signing authority for certain reports (sections 70BA and Schedule to Audit Regulations). Section 70BA allows the Auditor-General to authorise an officer to sign reports on behalf of the Auditor-General, which are required by law to be directed to a Minister in respect of particular authorities and other bodies. The Schedule to the Audit Regulations lists these authorities and bodies, which has been amended to include the Australian Capital Territory Health Authority, Australian Institute of Family Studies, Australian Institute of Health, Australian Meat and Livestock Research and Development Corporation, Australian Nuclear Science and Technology Organisation, Australian Pork Corporation, Australian Sports Commission, Australian Trade Commission, Bush Fire Council, Federal Airports Corporation, Legal Aid Commission (ACT), National Museum of Australia, and National Occupational Health and Safety Commission. It also removes references to authorities and bodies that have either changed or ceased to exist. These amendments impose obligations on the listed authorities and bodies to ensure that they comply with any relevant reporting requirements directed to Ministers. The Auditor-General's role in authorising an officer to sign these reports on behalf of the Auditor-General is also clearly defined, ensuring that the proper channels of communication and accountability are maintained. Additionally, the Finance Regulations have been amended to allow for a more flexible assessment of the value of work done for periodic or progress payments, as opposed to requiring an exact value, thereby providing more practical application of the regulation. For breaches of these regulations, the Act and Regulations do not explicitly state offences, penalties, or consequences. However, failure to comply with the reporting requirements or the amended Finance Regulations could potentially lead to broader legal consequences under other applicable laws, such as the Public Sector Management Act 1994 or the Financial Management and Accountability Act 1997. The exact penalties would depend on the specific nature and severity of the breach, as well as the relevant laws under which it is prosecuted.