EXPLANATORY STATEMENT
SUBJECT - AUDIT ACT 1901
- AUDIT REGULATIONS (AMENDMENT)
- FINANCE REGULATIONS (AMENDMENT)
1987 No. 227
ISSUED ON THE AUTHORITY OF THE MINISTER FOR FINANCE
Subsection 71(1) of the Audit Act 1901 (the Act) provides that the Governor-General may make regulations (not inconsistent with the provisions of the Act) for carrying out the provisions of the Act. The attached Statutory Rules amend the Audit Regulations and the Finance Regulations which were made pursuant to that provision.
Details of the amendments are as follows:
AUDIT REGULATIONS
The attached Statutory Rules declare certain statutory authorities and other bodies to be authorities or bodies to which section 70BA of the Audit Act 1901 applies.
Section 70BA provides for the Auditor-General to authorise an officer to sign, on his behalf, reports which are required by law to be directed to a Minister in respect of particular authorities and other bodies nominated by regulations. The authorities and bodies currently prescribed are included in the Schedule to the Audit Regulations.
That Schedule is amended by including the following authorities.
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
National Occupational Health and Safety Commission
Pork Promotion Committee
and by deletion of the current references to:
Aboriginal Land Fund Commission
Aboriginal Loans Commission
Australian Atomic Energy Commission
Australian Canned Fruits Sales Promotion
Australian Egg Board
Capital Territory Health Commission
Curriculum Development Centre
Legislative Drafting Institute
Museum of Australia
Services Canteens Trust Fund
The above deletions are necessary to reflect changes in the legislation dealing with those authorities or because a particular body has ceased to operate. In addition, the Health Authority Ordinance 1985, the Australian Nuclear Science and Technology Organisation Act 1987 and the National Museum of Australia Act 1980, as amended by the Statute Law (Miscellaneous Provisions) Act (No 1) 1986, effectively substituted the Australian Capital Territory Health Authority; the Australian Nuclear Science and Technology Organisation and the National Museum of Australia for the Capital Territory Health Commission; the Australian Atomic Energy Commission; and the Museum of Australia respectively.
Reports which by law are required to be sent directly to Parliament are not affected by the Audit Regulations and will continue to be signed personally by the Auditor-General.
FINANCE REGULATIONS
Previously regulation 56 provided that a claim for a periodic or progress payment should not be certified until the Departmental Secretary, or an authorised officer, has certified that the amount of the claim, together with the total amount of certificates previously given did not exceed the total amount to be paid under this contract or the value of work done to date. The absolute nature of that requirement gave rise to difficulties in that it was not always possible to accurately assess the value of work done.
Regulation 56 has been amended to remove the requirement that the actual value of work in progress, (or goods or services rendered) be stated and provides instead for the Departmental Secretary or authorised officer to exercise judgement as to that value. The requirement for certification that the total contract price will not be exceeded by the payment remains.