EXPLANATORY STATEMENT
SUBJECT: AUDIT ACT 1901
FINANCE REGULATIONS (AMENDMENT)
1987 No. 191
ISSUED ON THE AUTHORITY OF THE MINISTER FOR FINANCE
Sub-section 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 Finance Regulations made pursuant to these provisions.
Details of the amendments are as follows.
Application of Regulations
The amendments in Regulation 1 permit the testing and development of alternative processing techniques and work practices in computer based financial management information systems. A pilot study is to be undertaken at Defence establishments in South Australia and the Victorian naval establishment HMAS Cerberus.
The pilot scheme will test and assess the usefulness of a computer based accounting system being developed for the Department of Defence with potential for application to other departments and government agencies.
For the study to be effective and comprehensive, Parts II, IIA and III of the existing Finance Regulations need to be suspended to provide flexibility in accounting arrangements which is necessary for the system to be extensively tested. The alternative controls required will be established as necessary by directions issued under the authority of regulation 127A.
Regulation 2 amends existing Finance Regulation 127A to preserve the power of the Minister for Finance, the Secretary of the Department of Finance and the Secretary of the Department of Defence to issue directions (pursuant to sub-sections 71(1)(a)-(g) of the Audit Act) on the accounting procedures to operate during the period of the pilot study. The insertion of sub-regulation 127A(4A) ensures that these powers will not be limited throughout the duration of the pilot study.