Financial Management and Accountability Amendment Regulation 2013 (No. 8)

Administered by Department of Finance

Legislation au F2013L01819 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Select Legislative Instrument No. 232, 2013

 

Issued by the Authority of the Minister for Finance

 

 Financial Management and Accountability Act 1997

 

Financial Management and Accountability Amendment

Regulation 2013 (No. 8)

 

The Financial Management and Accountability Act 1997 (the FMA Act) provides a framework of rules for the proper management of public money and public property by Chief Executives and officials of FMA Act agencies.  The FMA Act applies to Commonwealth Departments of State and their staff, parliamentary departments and their staff, and prescribed agencies.

 

Subsection 65(1) of the FMA Act provides that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to that Act.

 

Section 5 of the FMA Act provides that, for the purposes of the FMA Act, a prescribed agency means a body, organisation or group of persons prescribed by the regulations for the purposes of that definition.  Agencies are prescribed in Schedule 1 to the Financial Management and Accountability Regulations 1997 (the Principal Regulations). 

 

The Australian Agency for International Development (AusAID) is an Executive Agency, established by Order under section 65 of the Public Service Act 1999.  Schedule 1 to the Principal Regulations specifies AusAID as a prescribed agency for the purposes of the FMA Act.  On 18 September 2013, the Prime Minister, the Hon Tony Abbott MP, announced that he would recommend to the Governor-General that AusAID be integrated into the Department of Foreign Affairs and Trade. 

 

The Regulation amends Schedule 1 to the Principal Regulations to remove AusAID as a prescribed agency for the purposes of the FMA Act following its abolition as an Executive Agency and integration into the Department of Foreign Affairs and Trade. 

 

Details of the Regulation are set out at Attachment A.  A Statement of Compatibility with Human Rights is at Attachment B. 

 

The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.  The Regulation commences on 1 November 2013. 

 

Consultation

In accordance with section 17 of the Legislative Instruments Act 2003, consultation has taken place with the Department of Foreign Affairs and Trade, AusAID and the Department of the Prime Minister and Cabinet.  A regulation impact statement is not required as the Regulation only applies to FMA Act Agencies and does not adversely affect the private sector. 

Details of the Financial Management and Accountability Amendment Regulation 2013 (No. 8)

 

Section 1 – Name of Regulation

 

This section provides that the title of the Regulation is the Financial Management and Accountability Amendment Regulation 2013 (No. 8).

 

Section 2 – Commencement

 

This section provides that the Regulation commences on 1 November 2013. 

 

Section 3 – Authority

 

This section provides that the Regulation is made under the Financial Management and Accountability Act 1997 (FMA Act).

 

Section 4 – Schedule(s)

 

This section provides that the Financial Management and Accountability Regulations 1997 (the Principal Regulations) are amended as set out in Schedule 1 to the Regulation.

 

Schedule 1 – Amendments

 

Item 1 – Item 102 of Schedule 1

 

This item amends Schedule 1 to the Principal Regulations to remove the Australian Agency for International Development (AusAID) as a prescribed agency for the purposes of the FMA Act.  This follows the abolition of AusAID as an Executive Agency under the Public Service Act 1999 and its integration with the Department of Foreign Affairs and Trade.

 

Item 2 – Schedule 1 (note A)

 

This item is a consequential amendment and removes the reference to the Australian Agency for International Development from Note A which lists the Executive Agencies which are prescribed under the Principal Regulations. 

 

 

 

Statement of Compatibility with Human Rights

Prepared in accordance with part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

 

Financial Management and Accountability Amendment Regulation 2013 (No. 8)

 

This Regulation is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Legislative Instrument

 

The Financial Management and Accountability Act 1997 (the FMA Act) provides a framework of rules for the proper management of public money and public property by Chief Executives and officials of FMA Act agencies.  The FMA Act applies to Commonwealth Departments of State and their staff, parliamentary departments and their staff, and prescribed agencies.  Agencies are prescribed in Schedule 1 to the Financial Management and Accountability Regulations 1997 (the FMA Regulations). 

 

This Regulation amends the FMA Regulations to remove the Australian Agency for International Development (AusAID) from Schedule 1.  This follows the integration of AusAID with the Department of Foreign Affairs and Trade.

 

Human rights implications

 

The Regulation does not engage any of the applicable rights or freedoms.

 

Conclusion

 

This regulation is compatible with human rights as it does not raise any human rights issues.

 

 

 

signed

 

Senator the Hon Mathias Cormann

 

Minister for Finance

Overview

The Financial Management and Accountability Amendment Regulation 2013 (No. 8) was issued under the authority of the Minister for Finance to amend the Financial Management and Accountability Regulations 1997, responding to the administrative restructuring of the Australian Agency for International Development (AusAID). The Financial Management and Accountability Act 1997 provides a comprehensive framework for the management of public funds and property by Chief Executives and officials of specified agencies, including Commonwealth Departments of State, parliamentary departments, and prescribed agencies. Pursuant to the authority granted by the FMA Act, the Governor-General can make regulations necessary for implementing the Act, which are initially set out in the Financial Management and Accountability Regulations 1997. The 2013 Amendment Regulation updates Schedule 1 of the Principal Regulations by removing AusAID as a prescribed agency, reflecting its abolition as an Executive Agency and subsequent integration into the Department of Foreign Affairs and Trade. The regulation, which commenced on 1 November 2013, ensures alignment of financial management practices following the organisational changes, while a Statement of Compatibility with Human Rights confirms that the regulation does not engage with any human rights issues.

Scope and Application

The Financial Management and Accountability Amendment Regulation 2013 (No. 8) amends the Financial Management and Accountability Regulations 1997, specifically removing the Australian Agency for International Development (AusAID) from the list of prescribed agencies under the Financial Management and Accountability Act 1997 (FMA Act). This change reflects AusAID's abolition as an Executive Agency under the Public Service Act 1999 and its integration into the Department of Foreign Affairs and Trade. The amendment applies to all Commonwealth Departments of State, parliamentary departments, and prescribed agencies, ensuring that financial management practices remain consistent and effective across the public sector. The regulation is designed to align with the current administrative structure of the Commonwealth and does not affect the private sector. It is compatible with human rights as it does not engage any applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Financial Management and Accountability Amendment Regulation 2013 (No. 8) (the Regulation) amends the Financial Management and Accountability Regulations 1997 (the Principal Regulations) by removing the Australian Agency for International Development (AusAID) from Schedule 1 (items 1 and 2). This change reflects the decision to integrate AusAID into the Department of Foreign Affairs and Trade, thereby altering the scope of the FMA Act to exclude AusAID as a prescribed agency. These amendments are effective from 1 November 2013, as stipulated in section 2 of the Regulation. The obligations and requirements imposed by the FMA Act on its agencies, including AusAID prior to its integration, centre on the proper management of public money and property. These agencies are mandated to adhere to stringent financial management practices, ensuring transparency, accountability, and efficiency in the use of public funds. The FMA Act and its accompanying regulations set forth detailed guidelines and standards that these agencies must follow to maintain compliance and uphold the integrity of public financial management. Breaches of the provisions outlined in the FMA Act and the Principal Regulations may result in significant consequences. While the explanatory statement does not explicitly detail the penalties for violations, the FMA Act itself includes a range of offences that can lead to both civil and criminal penalties. For instance, section 69 of the FMA Act outlines offences such as misapplication of public money, which can attract severe penalties including substantial fines and imprisonment. The precise penalties depend on the nature and severity of the offence, but they can be substantial, reflecting the seriousness with which the Act treats breaches of financial management standards. The Regulation itself does not introduce new offences or penalties, but by amending the Principal Regulations to remove AusAID, it ensures that the regulatory framework remains current and aligned with the structural changes within the public sector. This amendment is necessary to prevent any legal or administrative inconsistencies that might arise from the continued application of the FMA Act to AusAID post its integration into the Department of Foreign Affairs and Trade. The compatibility statement attached to the Regulation confirms that the amendments do not engage any of the human rights and freedoms recognised or declared in the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011.

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