Financial Management and Accountability Amendment Regulations 2004 (No. 2)

Overview

The Financial Management and Accountability Amendment Regulations 2004 (No. 2) were enacted to address the need to update the list of prescribed Agencies under the Financial Management and Accountability Act 1997. This was necessitated by the abolition of certain agencies, specifically the Australian Government Information Management Office, the Australian Greenhouse Office, and the National Oceans Office, pursuant to changes under the Public Service Act 1999. The regulations were issued under the authority of the Minister for Finance and Administration to ensure compliance with the Act by removing these agencies from Schedule 1 of the Financial Management and Accountability Regulations 1997. The policy objective of these amendments is to streamline the framework for managing public funds and property by aligning the list of prescribed Agencies with the current organisational structure of the government. The Regulations were made to give effect to the Government's decision to reallocate responsibilities of the abolished agencies to other departments, specifically transferring the AGIMO to the Department of Finance and Administration and the AGO and NOO to the Department of the Environment and Heritage. By removing references to the defunct agencies from the regulations and the relevant schedules, the Government ensures that the Financial Management and Accountability Act continues to operate effectively within the current administrative context. These amendments reflect the Government's commitment to maintaining robust financial management and accountability practices across all public agencies.

Scope and Application

The Financial Management and Accountability Amendment Regulations 2004 (No. 2) pertains to the prescribed entities under the Financial Management and Accountability Act 1997, specifically modifying the list of prescribed Agencies, thereby impacting the Chief Executives and officials of these Agencies. The amendment removes the Australian Government Information Management Office (AGIMO), the Australian Greenhouse Office (AGO), and the National Oceans Office (NOO) from the list of prescribed Agencies, reflecting their abolition as Executive Agencies under the Public Service Act 1999. These Regulations are instrumental in effectuating the government's decision to reassign the responsibilities of the AGIMO to the Department of Finance and Administration, and those of the AGO and the NOO to the Department of the Environment and Heritage. The Regulations commenced upon their notification in the Gazette, aligning with the legislative intent to streamline the management of public money and public property within the Commonwealth of Australia.

Key Provisions

The Financial Management and Accountability Amendment Regulations 2004 (No. 2) make specific changes to the Financial Management and Accountability Regulations 1997 by removing certain agencies from the list of prescribed agencies. According to section 5 of the Financial Management and Accountability Act 1997, these regulations are necessary to define the scope of agencies subject to the Act’s rules regarding the management of public money and property. The amendments, which are detailed in Schedule 1, remove the Australian Government Information Management Office (AGIMO), the Australian Greenhouse Office (AGO), and the National Oceans Office (NOO) from the list of prescribed agencies, reflecting their abolition as Executive Agencies under the Public Service Act 1999. This change aligns with the government's decision to transfer their responsibilities to other departments, namely the Department of Finance and Administration for AGIMO, and the Department of the Environment and Heritage for AGO and NOO. The obligations and requirements imposed by these regulations on the remaining agencies are largely unchanged; however, they now no longer apply to the three agencies that have been removed. The regulations ensure that the responsibilities for financial management and accountability are correctly assigned to the appropriate departments, facilitating an orderly transition of duties and ensuring continuity in the management of public funds and property. Agencies that remain subject to these regulations must adhere to the established financial management frameworks, which include proper accounting, reporting, and compliance with any additional directives issued by the relevant authorities. Breaching the provisions of the Financial Management and Accountability Act 1997 can lead to both civil and criminal consequences, depending on the nature and severity of the breach. Under section 10 of the Act, an officer or employee of an agency who wilfully or recklessly fails to comply with the Act can be subject to disciplinary action. This may include dismissal or other penalties as determined by the relevant authority. Additionally, any person who is found to have engaged in fraudulent activities or other serious breaches may face criminal charges. The Act does not specify maximum penalties for civil or criminal breaches but indicates that penalties can include fines and imprisonment, with the exact penalties determined by the courts. These provisions are intended to enforce compliance and deter any malfeasance in the management of public funds and property.