EXPLANATORY STATEMENT
Select Legislative Instrument 2006 No. 53
Subject - Financial Management and Accountability Act 1997
Financial Management and Accountability Amendment Regulations 2006 (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 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 purpose of the Regulations is to prescribe the Office of Workplace Services under the Act.
The Governor-General, by order in the Gazette, has established the Office of Workplace Services as an Executive Agency under section 65 of the Public Service Act 1999.
As a newly prescribed agency, the Office of Workplace Services is financially autonomous from the Department of Employment and Workplace Relations under the Act for the proper management of public money and public property within its control or custody.
Further details of the Regulations are in the Attachment.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Regulations commenced on 27 March 2006.
In accordance with section 17 of the Legislative Instruments Act 2003, the Department of Employment and Workplace Relations and the Department of the Prime Minister and the Cabinet were consulted in the preparation of the Regulations.
Authority: Subsection 65(1) of the Financial Management and Accountability Act 1997.
ATTACHMENT
Details of the Financial Management and Accountability Amendment Regulations 2006 (No. 1)
Regulation 1 - Name of Regulations
This regulation provides that the title of the Regulations is the Financial Management and Accountability Amendment Regulations 2006 (No. 1).
Regulation 2 - Commencement
This regulation provides for the Regulations to commence on 27 March 2006.
Regulation 3 - Amendment of Financial Management and Accountability Regulations 1997
This regulation provides that the Financial Management and Accountability Regulations 1997 (the Principal Regulations) would be amended as set out in Schedule 1.
Schedule 1 – Amendment
Item [1] – Schedule 1, Part 1, after item 140AA
Item 140AB is inserted to prescribe the Office of Workplace Services. The Office of Workplace Services comprises the Director and staff engaged under the Public Service Act 1999.
The Regulations also insert a reference to Note A of Schedule 1 to the Principal Regulations. The reference indicates that the Office of Workplace Services is also an Executive Agency for the purposes of the Public Service Act 1999.
Item [2] – Schedule 1, Part 1, Note A
Note A of Schedule 1 to the Principal Regulations is updated to include the Office of Workplace Services in the list of Executive Agencies established by order of the Governor-General made under section 65 of the Public Service Act 1999.
Overview
The Financial Management and Accountability Amendment Regulations 2006 (No. 1) were enacted to address the need for clear financial management and accountability frameworks for newly established agencies within the Australian public sector. Enacted by the Governor-General under subsection 65(1) of the Financial Management and Accountability Act 1997, these regulations aimed to ensure that the Office of Workplace Services, as an Executive Agency established under the Public Service Act 1999, adheres to the same financial management standards as other prescribed agencies. This was necessary to maintain the integrity and transparency of public financial management, ensuring that the Office of Workplace Services operates autonomously and efficiently within the legislative framework. The policy objective was to integrate the Office of Workplace Services into the existing regulatory structure, thereby promoting accountability and proper stewardship of public resources.
Scope and Application
The Financial Management and Accountability Amendment Regulations 2006 (No. 1) amend the Financial Management and Accountability Regulations 1997 to include the Office of Workplace Services as a prescribed agency under the Financial Management and Accountability Act 1997. This amendment ensures that the Office of Workplace Services, which comprises the Director and staff engaged under the Public Service Act 1999, adheres to the Act’s framework for the proper management of public money and public property. The Regulations were made pursuant to subsection 65(1) of the Financial Management and Accountability Act 1997, allowing the Governor-General to prescribe matters necessary for the Act's implementation. As a newly prescribed agency, the Office of Workplace Services is financially autonomous from the Department of Employment and Workplace Relations, further solidifying its distinct management under the Act. These Regulations commenced on 27 March 2006, and the preparation involved consultations between the Department of Employment and Workplace Relations and the Department of the Prime Minister and Cabinet, as required by the Legislative Instruments Act 2003.
Key Provisions
The Financial Management and Accountability Amendment Regulations 2006 (No. 1) amend the Financial Management and Accountability Regulations 1997 by prescribing the Office of Workplace Services as an Agency under the Financial Management and Accountability Act 1997 (the Act). The main provisions of the Regulations are found in Regulation 3 and Schedule 1. Regulation 3 specifies that the Regulations will amend the Principal Regulations as outlined in Schedule 1, while Schedule 1 itself contains two amendments. The first amendment (Item 140AB) adds the Office of Workplace Services to the list of prescribed Agencies in Part 1, and the second amendment (Note A) updates the list of Executive Agencies in Part 1, also including the Office of Workplace Services.
The Regulations impose certain obligations on the Office of Workplace Services as a prescribed Agency under the Act. These obligations include ensuring the proper management of public money and public property within its control or custody, in accordance with the provisions of the Act and any relevant regulations. This encompasses maintaining accurate financial records, exercising prudent financial management, and ensuring that public funds are used for authorised purposes only. Additionally, the Office of Workplace Services must comply with any other requirements or guidelines issued by the relevant authorities, such as the Department of Employment and Workplace Relations.
Failure to comply with the provisions of the Act or the Regulations may result in various consequences. Civil or criminal penalties may be imposed for breaches of the Act, depending on the nature and severity of the offence. For example, individuals found guilty of misusing public funds or engaging in corrupt practices may face fines or imprisonment. Additionally, agencies that fail to comply with the requirements of the Act may be subject to financial penalties or other enforcement actions, such as the recovery of misappropriated funds. The maximum penalties for offences under the Act vary depending on the specific provision that has been breached and may include substantial fines and/or imprisonment terms.