EXPLANATORY STATEMENT
STATUTORY RULES NO 105 OF 1983
Issued by the Authority of the Minister for Finance.
The attached Statutory Rules amend the Finance (Overseas) Regulations made under sections 63 and 71(1) of the Audit Act 1901. Details of the amendments are as follows.
FINANCE (OVERSEAS) REGULATION 10
Previously, sub-regulation 10(3) required that a cashier for an overseas office must pay all moneys received by him into a bank account. However, in some countries the banking of local cash collections by foreign representatives is prohibited under those countries banking regulations Sub-regulation 10(3) has been amended, therefore, to permit the Secretary to the Department of Finance to give directions to a cashier at an overseas office as to how he should deal with moneys received in a country where local banking is not permitted.
FINANCE (OVERSEAS) REGULATION 29
Regulation 29 has been amended to provide that where the Secretary to the Department of Finance directs, pursuant to new sub-regulation 10(3), that a cashier for an overseas office should retain moneys received by him, those moneys shall be held by the cashier as an advance and be used by him for purposes of the kind specified in paragraph (3)(a) of regulation 29 ie for the payment of accounts in cash, to purchase stamps or postal orders or to cash cheques for payees.
FINANCE (OVERSEAS) REGULATION 32
To ensure that proper control is maintained over moneys which are held as an advance by a cashier pursuant to new sub-regulation 29(1A), regulation 32 has been amended to provide that a cashier for an overseas office shall furnish such information or take such steps as may be required by directions given by the Permanent Head of the Department responsible for the establishment of the overseas office.
As the consequence of the introduction of this new sub-regulation 32(1), the previously numbered sub-regulation 32(1) is now sub-regulation 32(1A).
FINANCE (OVERSEAS) REGULATION 33
Because advances referred to in sub-regulation 29(1A) are to be dealt with in accordance with directions to be given by the Permanent Head pursuant to sub-regulation 32(1), the provisions of regulation 33, concerning the review of advances, should not apply. Accordingly, sub-regulation 33(1) has been amended to exempt such advances from the operation of regulation 33.
FINANCE (OVERSEAS) REGULATION 13
Paragraph (3)(a) of regulation 13 has been repealed. That paragraph prescribed payments of salary (and payments in the nature of salary) as a type of payment to which regulation 13 applied, and which were, therefore, subject to only a limited check before payment.
The repeal means that for manually prepared payments of salary the more rigorous checks required under regulation 12 will have to be performed before such a claim may be paid.
Overview
The Statutory Rules 1983 (No. 105), issued under the authority of the Minister for Finance, amend the Finance (Overseas) Regulations 1983 made under the Audit Act 1901. This legislative amendment addresses a gap in the existing regulatory framework concerning the handling of funds by Australian government cashiers operating in overseas offices, particularly where local banking regulations prohibit the deposit of local cash collections by foreign representatives. The policy objective is to provide the Department of Finance with the flexibility to issue directives to cashiers in these unique circumstances, ensuring that financial operations comply with both Australian and local laws while maintaining financial integrity. The Australian Parliament enacted these regulations to ensure that overseas operations of Australian government offices adhere to both domestic and international financial regulations, thereby mitigating risks associated with non-compliance and ensuring the effective management of public funds.
Scope and Application
The Statutory Rules, issued under the authority of the Minister for Finance, amend the Finance (Overseas) Regulations, which are made under sections 63 and 71(1) of the Audit Act 1901. These amendments primarily focus on the procedures for handling moneys received by cashiers at overseas offices, particularly in countries where local banking of such funds by foreign representatives is prohibited. The amendments provide the Secretary to the Department of Finance with the authority to issue directions to overseas cashiers on how to manage received moneys under these circumstances. The changes also detail the conditions under which these funds should be treated as advances, specifying their permissible uses and the accountability measures to be followed. Additionally, the amendments exempt these advances from certain review provisions, ensuring that the regulations do not conflict with the new directives. The repealed provisions now require more stringent checks for manually prepared salary payments, aligning them with the general checks required under other regulations.
Key Provisions
The Finance (Overseas) Regulations, as amended, introduce several key changes aimed at better aligning the financial practices of overseas offices with local regulations. Under the amended Finance (Overseas) Regulation 10, the Secretary to the Department of Finance can now issue directions to cashiers in overseas offices on how to handle moneys received when local banking is prohibited by the host country's regulations (10(3)). This amendment permits the retention of moneys as an advance, subject to the cashier using them for specified purposes such as paying accounts in cash, purchasing stamps or postal orders, or cashing cheques for payees (29(1A)).
The amendments also require cashiers to comply with directives from the Permanent Head of the relevant Department to ensure proper control over these funds. This includes furnishing information or taking steps as required by the Permanent Head (32(1)). Furthermore, these advances are exempt from the review provisions outlined in Regulation 33 (33(1)). With the repeal of Regulation 13(3)(a), payments of salary and similar payments now require the more rigorous checks stipulated in Regulation 12, ensuring a consistent and thorough review process for all payments made by overseas offices.
These regulatory amendments impose specific obligations on overseas office cashiers and the Department of Finance. Cashiers must now follow any directions given by the Secretary or the Permanent Head regarding the handling and control of funds. They must also ensure that any retained moneys are used strictly for the specified purposes outlined in Regulation 29(1A). The Department of Finance is tasked with providing clear and detailed directions to facilitate compliance with local banking regulations while maintaining control over financial transactions.
Failure to comply with these regulations can result in serious consequences. While specific offences and penalties are not detailed in the amendments, breaches of financial regulations can typically lead to both civil and criminal liabilities under the broader legislative framework of the Audit Act 1901. Penalties could include fines, legal action, or other administrative sanctions, depending on the severity and nature of the breach. These consequences underscore the importance of adhering to the new directives and maintaining rigorous financial oversight in overseas offices.