Finance Regulations (Amendment)

Overview

The Finance Regulations (Amendment) 1994 No. 365, issued under the authority of the Minister for Finance, amends Finance Regulation 6A which was made under the Audit Act 1901. The primary objective of this amendment is to address the need for specific branches of the Australian Public Service to be independently subject to the provisions of the Audit Act and its subsidiary legislation. By amending Regulation 6A, the branch of the Australian Public Service in relation to which the Director of Professional Services Review has the powers of a Departmental Secretary is declared a prescribed authority. This change ensures that the branch can conduct its own financial administration independently of the Department of the responsible Minister, thereby providing the necessary autonomy and accountability as required by the Act. The amendment was enacted by the Parliament of Australia to rectify the gap in the regulatory framework, ensuring that certain branches of the public service are subject to the same financial oversight and compliance standards as other prescribed authorities.

Scope and Application

The Finance Regulations (Amendment) 1994 No. 365, issued under the authority of the Minister for Finance, amends Finance Regulation 6A pursuant to subsection 71(1) of the Audit Act 1901. This Act pertains to entities that are prescribed authorities, which include bodies corporate or unincorporated bodies established under an enactment, and branches of the Australian Public Service as specified in the regulations. The amendment specifically designates a branch of the Australian Public Service, where the Director of Professional Services Review holds the powers of a Departmental Secretary, as a prescribed authority. This ensures that the designated branch will be subject to the Act and its subsidiary legislation independently, allowing it to conduct its financial administration autonomously from the Department of the relevant Minister. The geographic or jurisdictional reach of the Act extends to all prescribed authorities within Australia, including relevant branches of the Australian Public Service.

Key Provisions

The primary operative sections of the Finance Regulations (Amendment) 1994 No. 365 involve amendments to Finance Regulation 6A (section 1). This regulation, originally made under subsection 71(1) of the Audit Act 1901 (the Act), declares certain bodies and branches of the Australian Public Service as prescribed authorities. Specifically, the amendment extends this declaration to the branch of the Australian Public Service in relation to which the Director of Professional Services Review has the powers of a Departmental Secretary. This amendment ensures that this branch will be subject to the Act and its subsidiary legislation independently of the Department of the responsible Minister. Under these regulations, the obligations imposed on the parties or entities governed include adherence to the financial administration requirements stipulated by the Audit Act 1901 and its subsidiary legislation. As prescribed authorities, these entities must conduct their financial operations in compliance with the Act, ensuring transparency, accountability, and adherence to financial regulations. The declaration of the Director of Professional Services Review’s branch as a prescribed authority necessitates that it manages its finances independently from the relevant Minister’s Department, thereby enhancing governance and financial oversight. The Act imposes a series of requirements on these prescribed authorities. They must maintain proper financial records, implement internal controls, and ensure that their financial administration is conducted in accordance with the regulations. These entities are also obligated to provide regular financial reports and audits as required by the Audit Act 1901. The independence of the Director of Professional Services Review’s branch from the relevant Minister’s Department mandates that it operates with a defined scope of authority and responsibility, ensuring a clear demarcation of financial management practices. In terms of offences, penalties, or consequences for breach, the Act and the Finance Regulations outline stringent measures. Any breach of the financial administration requirements can lead to civil or criminal consequences. The penalties may include fines, imprisonment, or both, depending on the severity of the breach. For instance, under the Audit Act 1901, individuals found guilty of serious breaches can face significant fines and imprisonment. The exact penalties are detailed in the respective sections of the Act and the subsidiary legislation, which provide a comprehensive framework for enforcement and compliance.