Financial Management and Accountability Amendment Regulations 2001 (No. 2) 2001 No. 198
EXPLANATORY STATEMENT
STATUTORY RULES 2001 No. 198
Issued by the Authority of the Minister for Finance and Administration
Financial Management and Accountability Act 1997
Financial Management and Accountability Amendment Regulations 2001 (No. 2)
The attached Statutory Rules make regulations under subsection 65(1) of the Financial Management and Accountability Act 1997 (the Act) to amend the Financial Management and Accountability Regulations.
The Regulations amend Schedule 1 to the Principal Regulations which lists the Agencies which are prescribed for the purposes of the definition of "Agency" in section 5 of the Act. In addition to Departments of State and Departments of the Parliament, section 5 of the Act includes in the definition of "Agency", "a prescribed Agency", being an organisational unit which is to be regarded, for the purposes of the Act, as a separate Agency from the Department of State within the portfolio. Regulation 5 of the Principal Regulations prescribes all such Agencies by reference to the Schedule to the regulations. The Schedule names those Agencies, defines the persons which they comprise and specifies the Agency Chief Executive.
Details of the regulation are as follows:
Regulation 1
This advises that the name of the regulations is the Financial Management and Accountability Amendment Regulations 2001 (No. 2).
Regulation 2
This provides that the amendments commenced on 1 July 2001. The retrospective commencement date is in accordance with section 48(2) of the Acts Interpretation Act 1901 and will not affect the rights of a person (other than the Commonwealth or an authority of the Commonwealth) or impose liabilities on a person (other than the Commonwealth or an authority of the Commonwealth) in respect of anything done or omitted to be done before the date of commencement.
Regulation 3
This provides that Schedule 1 amends the Financial Management and Accountability Regulations 1997.
Schedule 1
[1] Schedule 1, after item 114A
This item inserts a new item 114B in Schedule 1 to make the Australian Research Council a prescribed agency. Having regard to the nature and operation of the Australian Research Council, it is considered appropriate that it should be financially independent of the Department of Education, Training and Youth Affairs for the purposes of the Act.
[2] Schedule 1, item 133
This item substitutes new items 132B and 133 in Schedule 1 to make the National Office for Information Economy a prescribed agency and amends the reference to the Office of Asset Sales and IT Outsourcing to refer to the Office of Asset Sales and Commercial Support. Having regard to the nature and operation of the National Office for Information Economy, it is considered appropriate that it should be financially independent of the Department of Communication, Information Technology and the Arts for the purposes of the Act. The reference to the Office of Asset Sales and IT Outsourcing is amended to refer to the Office of Asset Sales and Commercial Support to reflect its change of name as a consequence the gazettal of an order dated 16 May 2001 by the Governor-General pursuant to section 65 of the Public Service Act 1999. This amendment also updates who comprises the agency.
Overview
The Financial Management and Accountability Amendment Regulations 2001 (No. 2) were enacted to address the need for financial independence of certain agencies from their respective parent departments, as defined under the Financial Management and Accountability Act 1997. These regulations, issued under the authority of the Minister for Finance and Administration, amend the Financial Management and Accountability Regulations 1997 to prescribe the Australian Research Council and the National Office for Information Economy as separate financial entities. This legislative change ensures that these agencies operate with greater autonomy, thereby aligning their financial management with their specific operational needs and objectives, rather than being constrained by the broader financial policies of their parent departments. The policy objective behind these amendments is to enhance the efficiency and effectiveness of financial management within these agencies by recognising their unique roles and responsibilities.
Scope and Application
The Financial Management and Accountability Amendment Regulations 2001 (No. 2) amends the Financial Management and Accountability Regulations 1997 to update the list of prescribed agencies under the Financial Management and Accountability Act 1997. The Act applies to agencies within the Australian Public Service, including Departments of State and Departments of the Parliament, as well as prescribed agencies that are organisational units regarded as separate from the relevant Department of State for the purposes of the Act. These regulations specifically modify Schedule 1 of the Principal Regulations to include the Australian Research Council as a prescribed agency, ensuring its financial independence from the Department of Education, Training and Youth Affairs. Additionally, the regulations recognise the National Office for Information Economy as a prescribed agency, separate from the Department of Communication, Information Technology and the Arts, and update the reference to the Office of Asset Sales and IT Outsourcing to reflect its name change to the Office of Asset Sales and Commercial Support. The amendments commenced on 1 July 2001 and do not affect the rights or liabilities of any person in respect of actions taken before this date, in accordance with section 48(2) of the Acts Interpretation Act 1901.
Key Provisions
The Financial Management and Accountability Amendment Regulations 2001 (No. 2) primarily aim to amend the Financial Management and Accountability Regulations 1997 by introducing new prescribed agencies. Regulation 1 names the regulations as the Financial Management and Accountability Amendment Regulations 2001 (No. 2). Regulation 2 specifies that these amendments commenced on 1 July 2001, with a retrospective commencement date that aligns with section 48(2) of the Acts Interpretation Act 1901. This date does not affect the rights or liabilities of any person other than the Commonwealth or an authority of the Commonwealth in respect of actions taken before the commencement date. Regulation 3 indicates that Schedule 1 amends the Financial Management and Accountability Regulations 1997.
Schedule 1 introduces new items to the list of prescribed agencies. Item 114B makes the Australian Research Council a prescribed agency, recognising its need for financial independence from the Department of Education, Training and Youth Affairs. Similarly, item 133 substitutes new items 132B and 133 to make the National Office for Information Economy a prescribed agency, ensuring it is financially independent from the Department of Communication, Information Technology and the Arts. This item also updates the reference from the Office of Asset Sales and IT Outsourcing to the Office of Asset Sales and Commercial Support, reflecting a name change that took effect following a Governor-General’s order dated 16 May 2001 under the Public Service Act 1999.
The regulations impose specific obligations on the prescribed agencies by defining them as separate entities from their respective departments for the purposes of the Financial Management and Accountability Act 1997. This separation requires these agencies to maintain financial independence and accountability, ensuring they operate with their own financial frameworks and governance structures. These prescribed agencies must adhere to the financial management standards and accountability measures outlined in the Act. Furthermore, they must ensure that their operations and financial activities are transparent and comply with the regulatory requirements set forth by the Financial Management and Accountability Regulations.
Breaches of the Financial Management and Accountability Act 1997 can lead to both civil and criminal consequences. The Act stipulates that failure to comply with its provisions may result in penalties. However, the specific offences, penalties, or civil/criminal consequences for breach are not detailed within the provided excerpt. It is essential to refer to the Act itself or relevant legal commentaries for a comprehensive understanding of the potential penalties, which may include fines or imprisonment, depending on the severity and nature of the breach. The Act’s regulatory framework aims to enforce accountability and transparency in financial management across the prescribed agencies, ensuring adherence to the standards and regulations governing public sector financial operations.