Finance Regulations (Amendment)

Overview

The Audit Regulations (Amendment) and Finance Regulations (Amendment) 1987 (C2004L00864) were issued under the authority of the Minister for Finance to amend the Audit and Finance Regulations made pursuant to the Audit Act 1901. The purpose of these amendments was to update the lists of statutory authorities and bodies to which certain provisions of the Audit Act apply, as well as to modify the certification process for progress payments in the Finance Regulations. The policy objective behind these changes was to reflect legislative and operational changes in the listed authorities and to provide more flexibility in assessing the value of work done for progress payments, ensuring the regulations remain relevant and effective in their application.

Scope and Application

The Audit Regulations (Amendment) and Finance Regulations (Amendment) 1987, made under the authority of the Minister for Finance, amend the Audit Regulations and Finance Regulations to align with changes in the legislative landscape and the operational status of various authorities and bodies. The Audit Regulations specifically update the list of statutory authorities and bodies to which section 70BA of the Audit Act 1901 applies, enabling the Auditor-General to delegate the signing of certain reports to authorised officers. The updated Schedule includes the Australian Capital Territory Health Authority, the Australian Institute of Family Studies, and other entities, while removing references to defunct or restructured bodies such as the Aboriginal Land Fund Commission and the Australian Atomic Energy Commission. This amendment ensures the regulations remain current and relevant. Concurrently, the Finance Regulations have been modified to provide flexibility in the certification of periodic or progress payments by allowing the Departmental Secretary or an authorised officer to exercise discretion in determining the value of work in progress, thereby addressing the challenges posed by the previous strict requirement. These amendments are instrumental in refining the administrative processes under the Audit Act 1901 and the Finance Regulations.

Key Provisions

The main sections of the Audit Regulations (Amendment) and Finance Regulations (Amendment) Statutory Rules clarify which authorities and bodies are subject to specific audit requirements and how certain financial certifications are managed. Under the Audit Regulations (Amendment), section 70BA of the Audit Act 1901 now applies to several additional statutory authorities and bodies (section 4). These include the Australian Capital Territory Health Authority, the Australian Institute of Family Studies, the Australian Institute of Health, and several others listed in the Schedule to the Audit Regulations. This amendment means that reports which must be sent to a Minister can be signed by an officer authorised by the Auditor-General on his behalf. Conversely, the Schedule has been updated to remove certain authorities and bodies that are no longer in operation or have been replaced by other entities. The Finance Regulations (Amendment) modifies regulation 56, which deals with the certification of claims for periodic or progress payments. Previously, a claim could only be certified if the exact value of work done was known and confirmed to not exceed the total contract amount. This amendment removes the necessity of stating the exact value of work in progress, instead allowing the Departmental Secretary or an authorised officer to use their judgement to determine the value. The obligations imposed by these amendments are primarily administrative and procedural. Authorities and bodies now subject to section 70BA must ensure that reports directed to Ministers are appropriately signed by authorised officers. This change streamlines the reporting process and ensures compliance with audit requirements. The amendment to regulation 56 in the Finance Regulations relieves some of the burden on certifying officers by allowing them to use their discretion in determining the value of work done, provided that the total contract price is not exceeded. This change is intended to make the certification process more practical and less rigid. Breaches of the amended regulations may lead to various consequences. Under the Audit Regulations, failure to comply with the requirements for authorised officers signing reports could result in non-compliance with legislative mandates, potentially leading to inquiries or investigations. Under the Finance Regulations, improper certification of claims for periodic or progress payments could result in financial mismanagement or overpayments, leading to potential audits, investigations, and financial penalties. Although the Explanatory Statement does not specify penalties, breaches of these regulations could lead to administrative actions or legal proceedings, depending on the severity and intent of the non-compliance.