Finance Regulations (Amendment)

Overview

The Statutory Rules 1984 No. 127, issued by the authority of the Minister for Finance, address amendments to the Finance Regulations made under sub-section 71 (1) of the Audit Act 1901. The amendments were enacted to ensure the Finance Regulations appropriately cover notional items introduced by the Audit Amendment Act 1984, to streamline the handling of purely administrative overseas matters, and to include new authorities such as the Australian Federal Police and the Prices Surveillance Authority within the scope of the Audit Act and Finance Regulations. These changes aim to enhance financial control, ensure compliance with the Audit Act, and provide necessary independence for specified authorities in their financial administration.

Scope and Application

The Finance Regulations, as amended by these Statutory Rules, apply to various entities and individuals involved in the financial administration of Commonwealth entities. This includes officers and departments responsible for the management of public funds, as well as specific authorities such as the Australian Federal Police and the Prices Surveillance Authority, which are now subject to the Audit Act and Finance Regulations. The geographic scope of the Act is national, as it pertains to the financial administration of the Commonwealth government. The Act extends its application to notional items introduced by the Audit Amendment Act 1984, ensuring that these items are subject to the same financial oversight as other expenditure categories. Additionally, the Finance Regulations now explicitly exclude certain administrative matters that are specifically governed under the Finance (Overseas) Directions. These amendments enhance the comprehensiveness of financial regulation by incorporating new categories of expenditure and clarifying the jurisdictional boundaries of different regulatory instruments.

Key Provisions

The Statutory Rules (No. 127) made under the Audit Act 1901 primarily amend the Finance Regulations to accommodate recent legislative changes and administrative refinements. Regulation 4 has been updated to include notional items as part of the definition of 'head of expenditure'. This follows the introduction of the concept of notional items by the Audit Amendment Act 1984, which allows the Minister for Finance to direct that certain sub-divisions in appropriation acts be treated as divided into notional items for auditing and regulatory purposes. Regulation 5A has been revised to clarify that the Finance Regulations do not apply to matters governed by the Finance (Overseas) Regulations or Finance (Overseas) Directions, facilitating more streamlined administrative processes for overseas matters that are not of public interest. Additionally, Regulation 6A now lists the Australian Federal Police and the Prices Surveillance Authority as prescribed authorities, ensuring these entities are subject to the Audit Act and Finance Regulations independently of their respective parent departments. Lastly, sub-paragraphs 44A(1)(c)(i) and 47(3)(a)(i) have been amended to extend the application of certain expenditure controls to Special Appropriations, ensuring that officers cannot incur obligations or certify payments without sufficient appropriation under the relevant head of expenditure, even for special appropriations. These amendments impose specific obligations on the parties and entities governed by the Finance Regulations. For instance, the inclusion of notional items within the definition of 'head of expenditure' means that all such items are now subject to the same financial controls and auditing processes as physical items. The clarification in Regulation 5A relieves the Finance Regulations from applying to certain overseas matters, thereby allowing for more efficient governance of international financial dealings. The addition of the Australian Federal Police and Prices Surveillance Authority to Regulation 6A ensures these bodies operate with financial independence and accountability, free from undue departmental influence. Furthermore, the extension of expenditure controls to Special Appropriations under sub-paragraphs 44A(1)(c)(i) and 47(3)(a)(i) mandates that all financial obligations, including those from special funds, adhere to the same appropriation and certification requirements as regular appropriations. Breaches of the amended Finance Regulations may lead to various legal consequences. Although the Statutory Rules do not explicitly detail penalties, violations of the Finance Regulations typically result in civil or criminal penalties under the Audit Act 1901. For civil penalties, officers found in breach may face fines or other civil sanctions as determined by the relevant authorities. Criminal penalties may include imprisonment, fines, or both, depending on the severity of the breach. The exact penalties are generally prescribed in the Audit Act 1901 or related legislation, but the potential for significant fines and custodial sentences underscores the importance of compliance with the amended regulations.