Financial Management and Accountability Amendment Regulations 2004 (No. 3)

Overview

The Financial Management and Accountability Amendment Regulations 2004 (No. 3) were enacted to refine and update the existing Financial Management and Accountability Regulations 1997, under the authority of the Minister for Finance and Administration. The Regulations amend the Financial Management and Accountability Act 1997 to address specific issues such as updating the names of defence force cadet organisations in line with legislative changes, clarifying the allocation of individuals performing financial tasks for prescribed agencies, correcting references to AusAID, and aligning with recent amendments to the Australian Federal Police Act 1979 and the Trade Practices Act 1974. By making Biosecurity Australia a prescribed agency, the Regulations aim to enhance the independence of Biosecurity Australia and foster confidence among stakeholders in its capacity to develop science-based quarantine policies.

Scope and Application

The Financial Management and Accountability Amendment Regulations 2004 (No. 3) provide a framework for the proper management of public money and public property, applying to Chief Executives of Agencies and officials of Agencies under the Financial Management and Accountability Act 1997. These regulations, made pursuant to subsection 65(1) of the Act, specifically designate Biosecurity Australia as a prescribed Agency, thereby enhancing its independence and bolstering stakeholder confidence in its capacity to develop science-based quarantine policies. The amendment Regulations also update and correct references to various entities and legislative changes, including the Defence Legislation Amendment Act 2003, the Australian Federal Police and Other Legislation Amendment Act 2004, and the Trade Practices Amendment (Australian Energy Market) Act 2004. The regulations are designed to clarify and refine existing financial management regulations, ensuring they remain relevant and effective. The Regulations will commence on the date of their notification in the Gazette for certain provisions and on the commencement of Schedule 1 to the Trade Practices Amendment (Australian Energy Market) Act 2004 for others, as detailed in the Attachment.

Key Provisions

The Financial Management and Accountability Amendment Regulations 2004 (No. 3) (the amendment Regulations) primarily serve to update and clarify the existing Financial Management and Accountability Regulations 1997 (the Principal Regulations). One of the main changes introduced by the amendment Regulations is the designation of Biosecurity Australia (BA) as a prescribed Agency under the Financial Management and Accountability Act 1997 (the Act) (section 1). This amendment aims to enhance BA's independence and bolster stakeholder confidence in its capacity to formulate science-based quarantine policies. Additionally, the amendment Regulations update the names of defence force cadet organisations to reflect legislative changes made by the Defence Legislation Amendment Act 2003 (section 2). They also clarify that individuals performing financial tasks for prescribed Agencies are allocated to those Agencies but are not themselves prescribed Agencies (section 3). Furthermore, the amendment Regulations correct references to AusAID and align the Principal Regulations with changes introduced by the Australian Federal Police and Other Legislation Amendment Act 2004 and the Trade Practices Amendment (Australian Energy Market) Act 2004 (sections 4 and 5). The amendment Regulations impose certain obligations and requirements on prescribed Agencies and their officials. For instance, these entities must comply with the Act's provisions governing the management of public money and property (section 65(1)). Specifically, prescribed Agencies and their officials must adhere to the updated and clarified financial management guidelines set out in the amendment Regulations (section 6). These guidelines are designed to ensure the proper management and accountability of public funds and assets. Moreover, the amendment Regulations require prescribed Agencies to allocate individuals performing financial tasks to the relevant Agency, while also clarifying that these individuals are not themselves prescribed Agencies (section 3). Failure to comply with the requirements and obligations set out in the amendment Regulations may result in various civil or criminal consequences. While the amendment Regulations do not explicitly outline specific penalties for non-compliance, breaches of the Act or its regulations may result in civil or criminal liability under the applicable provisions of the Act (section 65(2)). In some cases, the Act may provide for penalties, fines, or other sanctions for non-compliance with its requirements. It is essential for prescribed Agencies and their officials to familiarise themselves with the relevant provisions of the Act and the amendment Regulations to ensure adherence to the stipulated financial management and accountability standards.