Financial Management and Accountability Amendment Regulations 2004 (No. 1) 2004 No. 57
EXPLANATORY STATEMENT
STATUTORY RULES 2004 No. 57
Issued by the Authority of the Minister for Finance and Administration
Financial Management and Accountability Act 1997
Financial Management and Accountability Amendment Regulations 2004 (No. 1)
Subsection 65(1) of the Financial Management and Accountability Act 1997 (the 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 Act provides a framework of rules for the proper management of public money and public property that applies to Chief Executives of Agencies and officials of Agencies.
Section 5 of the Act provides in part that, for the purposes of the Act, an 'Agency' includes a prescribed Agency. Agencies are prescribed for the purposes of the Act in Schedule 1 to the Financial Management and Accountability Regulations 1997 (the Principal Regulations).
The Regulations:
• make the National Offshore Petroleum Safety Authority (NOPSA) a prescribed Agency for the purposes of the Act from 1 July 2004; and
• change the name of the National Office for the Information Economy (NOIE), a prescribed Agency under the FMA Act, to the Australian Government Information Management Office (AGIMO) from 8 April 2004.
NOPSA was established by section 150XD of the Petroleum (Submerged Lands) Act 1967, with effect from 4 December 2003, noting that NOPSA will not have staff, personnel or perform any functions until it commences operations as a prescribed Agency.
The Regulations change the name of NOIE to AGIMO, which is to reflect amendments made to the Order creating NOIE as an Executive Agency under the Public Service Act 1999 which relates to the transfer of NOIE's functions relating to broader policy on the information economy to the Department of Communications, Information Technology and the Arts.
Schedule 1 of the Regulations inserts AGIMO into, and omits NOIE from, Schedule 1 to the Principal Regulations.
Schedule 2 of the Regulations inserts NOPSA into Schedule 1 to the Principal Regulations.
Schedule 1 of the Regulations, which inserts the amendments relating to AGIMO, commences on 8 April 2004. Schedule 2 of the proposed Regulations commences on 1 July 2004, so that NOPSA can deal with public money in its own right.
Overview
The Financial Management and Accountability Amendment Regulations 2004 (No. 1) were enacted to address the need to update the list of prescribed agencies under the Financial Management and Accountability Act 1997. These regulations were introduced to ensure that the Act effectively governs the management of public money and property for all relevant agencies. The Financial Management and Accountability Act 1997 provides a framework for the proper management of public funds and property, applying to chief executives and officials of agencies. The regulations were issued under the authority of the Minister for Finance and Administration to align the Act with changes in agency names and the establishment of new agencies, thereby maintaining the integrity and effectiveness of financial management and accountability across the public sector.
The regulations make the National Offshore Petroleum Safety Authority (NOPSA) a prescribed agency for the purposes of the Act, effective from 1 July 2004, and also change the name of the National Office for the Information Economy (NOIE) to the Australian Government Information Management Office (AGIMO), effective from 8 April 2004. These changes reflect the restructuring and renaming of agencies to better align with their functions and the evolving landscape of public administration. The regulations were designed to ensure that the Financial Management and Accountability Act 1997 continues to provide comprehensive oversight and accountability for public funds and property as new agencies are established and existing ones are restructured.
Scope and Application
The Financial Management and Accountability Amendment Regulations 2004 (No. 1) amends the Financial Management and Accountability Regulations 1997 by making the National Offshore Petroleum Safety Authority (NOPSA) a prescribed Agency for the purposes of the Financial Management and Accountability Act 1997, effective from 1 July 2004. This amendment means that NOPSA, which was established under the Petroleum (Submerged Lands) Act 1967, will now be subject to the rules and framework for the proper management of public money and public property as outlined in the Act. Additionally, the Regulations change the name of the National Office for the Information Economy (NOIE) to the Australian Government Information Management Office (AGIMO), reflecting the transfer of NOIE's functions to the Department of Communications, Information Technology and the Arts. This name change and the corresponding amendments to Schedule 1 of the Principal Regulations take effect from 8 April 2004. The Regulations extend the application of the Act to these new entities, ensuring they adhere to the same financial management standards as other prescribed Agencies.
Key Provisions
The Financial Management and Accountability Amendment Regulations 2004 (No. 1) primarily address two key provisions: the establishment of the National Offshore Petroleum Safety Authority (NOPSA) as a prescribed Agency under the Financial Management and Accountability Act 1997 (the Act) from 1 July 2004, and the renaming of the National Office for the Information Economy (NOIE) to the Australian Government Information Management Office (AGIMO) effective from 8 April 2004. These amendments are detailed in Schedule 1 and Schedule 2 of the Regulations, respectively.
Under the Act, a prescribed Agency is required to adhere to specific financial management and accountability rules. By making NOPSA a prescribed Agency, the Regulations ensure that it must comply with the financial management standards set forth in the Act. Similarly, the renaming of NOIE to AGIMO, reflecting the transfer of NOIE's functions to the Department of Communications, Information Technology and the Arts, is intended to streamline operations and ensure continuity in the management of public funds and property. The changes to the names and definitions in Schedule 1 and Schedule 2 are crucial for maintaining the integrity and effectiveness of the Act's regulatory framework.
The Regulations impose several obligations on the newly prescribed Agency, NOPSA, and the renamed AGIMO. For NOPSA, this includes adhering to the financial management and accountability standards stipulated in the Act, such as maintaining proper records, ensuring transparency in financial reporting, and safeguarding public property. AGIMO must also comply with these standards but with an additional focus on aligning its operations with the new policy objectives of the Department of Communications, Information Technology and the Arts.
Failure to comply with the provisions of the Act can result in significant legal consequences. The Act provides for both civil and criminal penalties for non-compliance. Civil penalties may include fines and restitution for any financial loss caused by the breach. Criminal penalties can include imprisonment for serious offences, with the maximum penalties varying depending on the nature and severity of the breach. The precise details of these penalties are outlined in the Act itself and may be subject to interpretation by the courts.
In summary, the Financial Management and Accountability Amendment Regulations 2004 (No. 1) establish NOPSA as a prescribed Agency and rename NOIE to AGIMO, both effective from specified dates. These changes are designed to ensure that these entities comply with the Act's financial management and accountability standards, thereby maintaining public trust and ensuring the effective use of public resources. Non-compliance with the Act's provisions can lead to severe civil and criminal penalties.