Finance Regulations (Amendment)

Overview

The Finance Regulations (Amendment) 1986 No. 183 amends the regulations made under the Audit Act 1901 to address certain administrative issues and incorporate recent legislative changes. Enacted by the Parliament of Australia, the amendments primarily aim to streamline and clarify the regulatory framework governing financial transactions and statutory authorities within the Commonwealth. For instance, the Merit Protection and Review Agency is now recognised as a prescribed authority under the Act, ensuring it is subject to the same auditing and financial oversight as other government departments. Furthermore, the amendments refine administrative processes, such as the handling of Purchase Orders, by shifting certain minor regulatory tasks from ministerial approval to departmental directives, thereby enhancing efficiency. These changes collectively support the policy objective of maintaining a transparent, efficient, and accountable financial management system within the Australian government.

Scope and Application

The Audit Act 1901, as amended by the Finance Regulations (Amendment) 1986, applies to a range of statutory authorities within the Commonwealth, specifically those prescribed for the purposes of the Act and Regulations. These include the Merit Protection and Review Agency, which was added to the list of prescribed authorities through the amendments. This addition reflects the agency's role and establishes it as a Department for the purposes of the Act. The Act and its Regulations also cover the conduct and transactions of these authorities, particularly in relation to procurement processes and financial oversight. Geographically, the application of the Act is national, as it is a Commonwealth statute. The amendments to the Finance Regulations clarify certain administrative details and responsibilities, such as the handling of Purchase Orders and the publication of contract summaries in the Gazette, and ensure that these matters are directed by the Secretary of the Department of Finance. Notably, certain exclusions and thresholds apply, such as the requirement for contracts with a liability of not less than $2000 to be published in the Gazette, although this is now managed through Directions from the Department of Finance rather than the Regulations.

Key Provisions

The main operative sections of the Finance Regulations (Amendment) 1986 No. 183 include Regulation 1, which adds the Merit Protection and Review Agency to the list of prescribed authorities under the Audit Act 1901 (subsection 71(1)). This amendment recognises the Merit Protection and Review Agency as a statutory authority for the purposes of the Act and Regulations. Regulation 2 repeals sub-regulation 52A(2), which previously required Purchase Orders to be prepared in triplicate and numbered consecutively, unless approved by the Minister. Instead, these administrative details are to be handled through Directions issued by the Secretary of the Department of Finance. Regulation 3 clarifies sub-regulation 53(1) by specifying that the Secretary referred to is the Secretary of the Department of Finance. This ensures that when a contract for supplies exceeds $2000 in liability, the Secretary or the Chairman of the Tender Board shall publish a contract summary in the Gazette. Regulation 4 makes formal amendments by replacing "The Commonwealth Public Account" with "the Commonwealth Public Account" in certain regulations. The obligations imposed by these amendments include ensuring that the Merit Protection and Review Agency is recognised as a prescribed authority under the Audit Act 1901. Parties must now follow Directions from the Secretary of the Department of Finance for administrative matters related to Purchase Orders, rather than relying on Ministerial approval. Additionally, the Secretary of the Department of Finance is responsible for publishing contract summaries in the Gazette when the Commonwealth’s liability exceeds $2000. This involves clearly identifying the responsible Secretary and ensuring compliance with the specified details in the Gazette. Any breach of the provisions in these regulations could lead to civil or criminal consequences, though specific offences and penalties are not detailed in the explanatory statement. However, given the nature of these amendments, non-compliance might result in administrative penalties or legal action for failing to adhere to prescribed procedures and Directions. The maximum penalties would depend on the specific nature of the breach and the discretion of the relevant authorities in enforcing the Audit Act 1901 and the Finance Regulations.