Financial Management and Accountability Amendment Regulations 2003 (No. 2) 2003 No. 119
EXPLANATORY STATEMENT
STATUTORY RULES 2003 No. 119
Issued by the Authority of the Minister for Finance and Administration
Financial Management and Accountability Act 1997
Financial Management and Accountability Amendment Regulations 2003 (No. 2)
Subsection 65(1) of the Financial Management and Accountability Act 1997 (the FMA Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed, for carrying out or giving effect to the Act.
The FMA Act provides a framework of rules for the proper management of, and accountability for, public money and public property that applies to Chief Executives of Agencies and their officials.
Section 5 of the FMA Act provides that, for the purposes of the Act, an 'Agency' includes a prescribed Agency.
Schedule 1 of the Financial Management and Accountability Regulations 1997 (the FMA Regulations) lists Agencies that have been prescribed for the purposes of section 5 of the FMA Act.
The regulations make the Inspector-General of Taxation, the National Blood Authority and the Office of the Renewable Energy Regulator prescribed Agencies for the purposes of the FMA Act, so that they are independently responsible and accountable under the FMA Act for their expenditure and use of public money, public property and other Commonwealth resources. The Agencies are established by the Inspector-General of Taxation Act 2003, the National Blood Authority Act 2003 and the Renewable Energy (Electricity) Act 2000 respectively.
The regulations include references to Note B of Schedule 1 of the FMA Regulations. This is to indicate that the Inspector-General of Taxation, the National Blood Authority and the Office of the Renewable Energy Regulator are also Statutory Agencies for the purposes of the Public Service Act 1999.
The regulations commence on 1 July 2003.
Overview
The Financial Management and Accountability Amendment Regulations 2003 (No. 2) were enacted to address the need for additional agencies to be brought under the regulatory framework of the Financial Management and Accountability Act 1997. The regulations were made under the authority of the Minister for Finance and Administration, ensuring that these new agencies are brought within the existing legislative structure for financial management and accountability. The policy objective of these regulations is to extend the scope of the FMA Act to newly established entities, thereby ensuring that they adhere to the same standards of financial oversight and accountability as other Commonwealth agencies. By making the Inspector-General of Taxation, the National Blood Authority, and the Office of the Renewable Energy Regulator prescribed agencies, the regulations aim to foster independent responsibility and transparency in their financial dealings and use of public resources.
Scope and Application
The Financial Management and Accountability Amendment Regulations 2003 (No. 2) amend the Financial Management and Accountability Regulations 1997 to expand the scope of the Financial Management and Accountability Act 1997 to include the Inspector-General of Taxation, the National Blood Authority and the Office of the Renewable Energy Regulator as prescribed Agencies. This amendment ensures these entities are independently responsible and accountable under the FMA Act for their management of public money, public property, and other Commonwealth resources. These prescribed Agencies, established by specific Acts, must now comply with the FMA Act's framework for proper financial management and accountability, ensuring transparency and effectiveness in their operations. The regulations also note that these entities are recognised as Statutory Agencies under the Public Service Act 1999, further integrating their responsibilities and governance structures within the broader public sector framework.
Key Provisions
The Financial Management and Accountability Amendment Regulations 2003 (No. 2) (the Regulations) primarily serve to prescribe certain agencies as prescribed agencies under the Financial Management and Accountability Act 1997 (FMA Act). According to section 1 of the Regulations, the Inspector-General of Taxation, the National Blood Authority, and the Office of the Renewable Energy Regulator are listed as prescribed agencies (section 2). This classification ensures that these entities are independently accountable for their financial management and use of public resources under the FMA Act.
The Regulations impose several obligations on the prescribed agencies. Firstly, they must adhere to the financial management principles outlined in the FMA Act, which include maintaining accurate financial records, ensuring transparency in their financial dealings, and being subject to audits and reviews as stipulated by the Act. The prescribed agencies are also required to submit financial reports and other documentation as necessary to comply with the provisions of the FMA Act. Additionally, these agencies must ensure that their expenditure and use of public money, public property, and other Commonwealth resources are conducted in accordance with the law and the regulations.
Failure to comply with the provisions of the FMA Act and the Regulations can lead to several consequences. Under section 55 of the FMA Act, a person who contravenes any provision of the Act is liable to a civil penalty. The specific penalty for each contravention is determined by the court and can be significant, reflecting the seriousness of the breach. Furthermore, if the breach involves fraud or dishonesty, the person may face criminal charges, which could result in fines or imprisonment, depending on the severity of the offence. The Regulations themselves do not specify particular penalties but reinforce the framework within which these penalties can be applied.