EXPLANATORY STATEMENT
Select Legislative Instrument 2006 No. 77
Minute No. of 2006 - Minister for Finance and Administration
Subject - Financial Management and Accountability Act 1997
Financial Management and Accountability Amendment Regulations 2006 (No. 3)
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 Cancer Australia under the Act.
Cancer Australia is established by section 6 of the Cancer Australia Act 2006.
As a newly prescribed Agency, Cancer Australia is financially autonomous from the Department of Health and Ageing 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 the day after they were registered on the Federal Register of Legislative Instruments.
In accordance with section 17 of the Legislative Instruments Act 2003, the Department of Health and Ageing was consulted in the preparation of the Regulations.
Authority: Subsection 65(1) of the Financial Management and Accountability Act 1997.
ATTACHMENT
Details of the proposed Financial Management and Accountability Amendment Regulations 2006 (No. 3)
Regulation 1 - Name of Regulations
This regulation provides that the title of the Regulations is the Financial Management and Accountability Amendment Regulations 2006 (No. 3).
Regulation 2 - Commencement
This regulation provides for the Regulations to commence on the day after they are registered on the Federal Register of Legislative Instruments.
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 117AB
Item 117AC is inserted to prescribe Cancer Australia. Cancer Australia comprises the Chief Executive Officer, staff engaged under the Public Service Act 1999, consultants (if any) and the Advisory Council established under section 24 of the Cancer Australia Act 2006.
The Regulations also insert a reference to Note B of Schedule 1 to the Principal Regulations. The reference indicates that Cancer Australia is also a Statutory Agency for the purposes of the Public Service Act 1999.
Overview
The Financial Management and Accountability Amendment Regulations 2006 (No. 3) were introduced to address the need for Cancer Australia, a body established by the Cancer Australia Act 2006, to be prescribed under the Financial Management and Accountability Act 1997. The objective of the Financial Management and Accountability Act 1997 is to provide a framework for the proper management of public money and public property by Chief Executives and officials of Agencies. The Regulations were made under the authority of Subsection 65(1) of the Act, which allows the Governor-General to prescribe matters required or permitted by the Act. These Regulations aim to ensure that Cancer Australia, as a newly prescribed Agency, operates with financial autonomy from the Department of Health and Ageing. The Regulations were developed in consultation with the Department of Health and Ageing, as required by Section 17 of the Legislative Instruments Act 2003.
Scope and Application
The Financial Management and Accountability Amendment Regulations 2006 (No. 3) pertain to the Financial Management and Accountability Act 1997, providing a structured framework for the effective management of public money and property for prescribed agencies. These regulations specifically address the financial autonomy of Cancer Australia, which is established under the Cancer Australia Act 2006. Cancer Australia, as a newly prescribed agency, is now subject to the Act for the proper management of public funds and assets within its control or custody. The regulations were formulated under the authority of Subsection 65(1) of the Act and commenced on the day following their registration on the Federal Register of Legislative Instruments. They amend the Financial Management and Accountability Regulations 1997 by inserting Cancer Australia into Schedule 1, thereby acknowledging its status as a Statutory Agency under the Public Service Act 1999. This legislative amendment ensures that Cancer Australia adheres to the financial management standards outlined in the Act.
Key Provisions
The Financial Management and Accountability Amendment Regulations 2006 (No. 3) introduce provisions under the Financial Management and Accountability Act 1997. These Regulations specifically prescribe Cancer Australia as an Agency for the purposes of the Act. Section 3 of the Regulations mandates the amendment of the Financial Management and Accountability Regulations 1997, adding Cancer Australia to the list of prescribed Agencies in Schedule 1. This inclusion ensures that Cancer Australia is subject to the same financial management and accountability framework as other prescribed Agencies.
Cancer Australia, as a newly prescribed Agency, must adhere to the financial management and accountability provisions set out in the Act. This includes ensuring the proper management and custody of public money and public property. The obligations imposed on Cancer Australia involve maintaining transparent and accountable financial practices, including the preparation and submission of financial reports to the relevant authorities. Additionally, Cancer Australia must comply with the guidelines and directives issued by the Minister for Finance and Administration to ensure adherence to financial management standards.
Breaches of the Financial Management and Accountability Act 1997 may result in both civil and criminal consequences. For instance, Section 65 of the Act allows for the imposition of penalties for non-compliance, which may include fines. The specific penalties are determined based on the nature and severity of the breach, with the maximum penalties set out in the Act. Furthermore, officers of Cancer Australia, such as the Chief Executive Officer, may face personal liability for any financial mismanagement or misconduct, potentially leading to criminal charges and imprisonment, depending on the circumstances of the breach.
It is important to note that the Regulations were prepared in consultation with the Department of Health and Ageing, as required by Section 17 of the Legislative Instruments Act 2003. This ensures that the provisions are aligned with the overall legislative framework and objectives, particularly concerning the management of public funds and property within Cancer Australia. The Regulations came into effect on the day following their registration on the Federal Register of Legislative Instruments, ensuring timely implementation of the prescribed requirements.