Financial Management and Accountability Amendment Regulations 2003 (No. 1)

Overview

The Financial Management and Accountability Amendment Regulations 2003 (No. 1) were enacted to address the need for clearer separation of roles within the Aboriginal and Torres Strait Islander Commission (ATSIC). The regulations, issued under the authority of the Minister for Finance and Administration, amend the Financial Management and Accountability Regulations 1997 to include the Aboriginal and Torres Strait Islander Services (ATSIS) as a prescribed Agency under the Financial Management and Accountability Act 1997 (FMA Act). This legislative change aims to separate the policy and priority-setting functions of ATSIC from the decision-making process concerning the allocation of funds to organisations and individuals, which is now to be handled by ATSIS. This separation is intended to enhance transparency and accountability in decision-making processes and reduce the perception of conflicts of interest. By establishing ATSIS as a prescribed Agency, the regulations support ATSIC and ATSIC Regional Councils in adopting a more strategic role in public policy concerning Aboriginal and Torres Strait Islander peoples, encompassing both programs directly managed by ATSIS and those run by other entities.

Scope and Application

The Financial Management and Accountability Amendment Regulations 2003 (No. 1) extend the application of the Financial Management and Accountability Act 1997 (FMA Act) by including the Aboriginal and Torres Strait Islander Services (ATSIS) as a prescribed Agency. This legislative amendment applies to ATSIS as an entity and its officials who are now subject to the FMA Act's stringent financial management and accountability requirements. The Act itself governs the proper management of public money and public property for Chief Executives of Agencies and officials of Agencies, and the inclusion of ATSIS under this Act ensures that these specific entities and individuals are held to the same standards of financial management and accountability as other Commonwealth agencies. The amendment aims to enhance transparency, accountability, and the perception of impartiality in the allocation of funds, particularly in the context of Aboriginal and Torres Strait Islander services. The amendment also aligns with the broader strategy of separating policy and priority-setting roles from specific fund allocation decisions, thereby reducing potential conflicts of interest. The regulations are effective from 1 July 2003 and align with the proposed establishment of ATSIS as an Executive Agency under the Public Service Act 1999.

Key Provisions

The Financial Management and Accountability Amendment Regulations 2003 (No. 1) amends the Financial Management and Accountability Regulations 1997 by adding the Aboriginal and Torres Strait Islander Services (ATSIS) as a prescribed Agency under section 5 of the Financial Management and Accountability Act 1997 (FMA Act). This amendment is made pursuant to the authority granted by subsection 65(1) of the FMA Act, which allows the Governor-General to make regulations necessary for the implementation of the Act. Under paragraph 16A(a) of the Acts Interpretation Act 1901, this regulatory power can be exercised by the person administering the Government of the Commonwealth. The obligations and requirements imposed by the FMA Act on agencies, including ATSIS, focus on the proper management of public money and property. Chief Executives and officials of agencies must adhere to these rules, ensuring transparency and accountability in financial management. The designation of ATSIS as a prescribed agency under the FMA Act enhances this accountability by separating ATSIC's policy and priority-setting role from its decision-making role in fund allocation. This separation aims to ensure that funding decisions are made impartially and transparently, thereby minimising any potential conflicts of interest. Furthermore, this arrangement enables ATSIC and its Regional Councils to adopt a more strategic approach to policy-making, considering both ATSIS-managed programs and those managed by other bodies. The Regulations also aim to complement the proposed establishment of ATSIS as an Executive Agency under the Public Service Act 1999. This dual status under both the FMA Act and the Public Service Act 1999 ensures that ATSIS is subject to stringent financial management and accountability standards while also aligning with broader public service governance frameworks. In the event of non-compliance with the requirements of the FMA Act, several consequences may arise. The Act provides for both civil and criminal penalties for breaches. Civil penalties may include financial penalties or orders for restitution, while criminal penalties can include fines or imprisonment, depending on the severity of the breach. The maximum penalties are determined by the specific provisions of the FMA Act and other relevant legislation, reflecting the seriousness of ensuring proper financial management and accountability in public administration.