EXPLANATORY STATEMENT
Select Legislative Instrument 2006 No. 153
Minute No. 13 of 2006 - Minister for Finance and Administration
Subject - Financial Management and Accountability Act 1997
Financial Management and Accountability Amendment Regulations 2006 (No.6 )
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 National Health and Medical Research Council (NHMRC) under the Act.
As a newly prescribed Agency, the NHMRC 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 commencement of Parts 1 and 2 of Schedule 1 to the National Health and Medical Research Council Amendment Act 2006.
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. 6)
Regulation 1 - Name of Regulations
This regulation provides that the title of the Regulations is the Financial Management and Accountability Amendment Regulations 2006 (No. 6).
Regulation 2 - Commencement
This regulation provides for the Regulations to commence on the commencement of Parts 1 and 2 of Schedule 1 to the National Health and medical Research Council Amendment Act 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) are amended as set out in Schedule 1.
Schedule 1 – Amendment
Item [1] – Schedule 1, Part 1, after item 130
Item 131
Item 131 is inserted to prescribe the NHMRC. The NHMRC comprises:
- the Chief Executive Officer mentioned in section 6 of the National Health and Medical Research Council Act 1992; and
- the Chair and other members of the Council of the NHMRC mentioned in Section 20 of that Act; and
- the members of the Principal Committees established under Section 35 of that Act; and
- the members of any working committees established under section 39 of that Act; and
- the staff mentioned in Section 45 of that Act; and
- consultants engaged under Section 46 of that Act; and
- the Commissioner of Complaints mentioned in Section 55 of that Act; and
- a person assisting the Chief Executive Officer; or the Council; or a committee; or the Commissioner of Complaints; in the performance of functions under the Act; and
- members of the NHMRC Licensing Committee established under Section 13 of the Research Involving Human Embryos Act 2002.
The proposed Regulations also insert a reference to Note B of Schedule 1 to the Principal Regulations. The reference indicates that the NHMRC is also a Statutory Agency for the purposes of the Public Service Act 1999.
Overview
The Financial Management and Accountability Amendment Regulations 2006 (No. 6) were enacted to amend the Financial Management and Accountability Regulations 1997 under the authority of Subsection 65(1) of the Financial Management and Accountability Act 1997. The primary objective of these regulations is to prescribe the National Health and Medical Research Council (NHMRC) as a prescribed agency under the Act, ensuring that it operates with financial autonomy from the Department of Health and Ageing for the proper management of public money and property within its control or custody. This legislative instrument addresses the need to clarify the NHMRC's status and responsibilities within the existing framework of financial management and accountability for public agencies. The Regulations were prepared with consultation from the Department of Health and Ageing in accordance with the Legislative Instruments Act 2003, and they commenced on the same date as Parts 1 and 2 of Schedule 1 to the National Health and Medical Research Council Amendment Act 2006.
Scope and Application
The Financial Management and Accountability Amendment Regulations 2006 (No. 6) amend the Financial Management and Accountability Regulations 1997 to prescribe the National Health and Medical Research Council (NHMRC) as an Agency under the Financial Management and Accountability Act 1997. This means the NHMRC is now subject to the framework of rules established by the Act for the proper management of public money and public property. The NHMRC includes the Chief Executive Officer, the Chair and other members of the Council, members of Principal and working committees, staff, consultants, the Commissioner of Complaints, and any person assisting these roles, as well as members of the NHMRC Licensing Committee. As a newly prescribed Agency, the NHMRC is financially autonomous from the Department of Health and Ageing. The Regulations commenced on the same day as Parts 1 and 2 of Schedule 1 to the National Health and Medical Research Council Amendment Act 2006. The scope of the Act extends to all individuals and entities listed within the NHMRC, and it applies nationally as a Commonwealth Act. The Act does not specify exclusions, exemptions, or thresholds in the provided text, but it does allow for further prescription through subordinate instruments as necessary.
Key Provisions
The Financial Management and Accountability Amendment Regulations 2006 (No. 6) serve to prescribe the National Health and Medical Research Council (NHMRC) under the Financial Management and Accountability Act 1997 (the Act). According to Regulation 3, the Financial Management and Accountability Regulations 1997 (the Principal Regulations) are amended to include the NHMRC in Schedule 1, Part 1, item 131 (Regulation 2). The NHMRC is described as comprising the Chief Executive Officer, the Chair and other members of the Council, members of the Principal and any working committees, the staff, consultants, the Commissioner of Complaints, persons assisting in the performance of functions, and members of the NHMRC Licensing Committee. This amendment underscores the NHMRC's financial autonomy from the Department of Health and Ageing for managing public money and property.
The obligations imposed by the Regulations on the NHMRC and its officers are extensive and revolve around the proper management and accountability of public funds and property. As a prescribed Agency under the Act, the NHMRC is required to adhere to the financial management rules set out in the Act, ensuring transparency, accountability, and efficiency in its operations. This includes maintaining accurate records, providing regular financial reports, and ensuring compliance with budgetary constraints and financial regulations. The NHMRC must also ensure that its activities align with the objectives and policies set by the government, maintaining high standards of integrity and probity in all financial dealings.
In terms of offences and penalties, the Act and the Regulations do not specify particular offences or penalties for breaches. However, any breach of the financial management and accountability requirements could potentially lead to disciplinary action against officers and officials of the NHMRC, as well as possible legal action for mismanagement of public funds. The severity of such consequences would depend on the nature and extent of the breach, and the specific provisions of the Act and any related legislation. The overarching aim is to uphold the integrity and efficiency of public financial management within the NHMRC, ensuring that public money is used responsibly and effectively for the benefit of health and medical research in Australia.
The Regulations also stipulate that the NHMRC is recognised as a Statutory Agency for the purposes of the Public Service Act 1999, as indicated by the reference to Note B of Schedule 1 to the Principal Regulations. This recognition reinforces the NHMRC's status and responsibilities, aligning it with broader public service standards and governance frameworks. By being prescribed under both the Financial Management and Accountability Act and the Public Service Act, the NHMRC is subject to rigorous oversight and accountability measures, ensuring that it operates within the legal and financial frameworks established by the Australian government. The Regulations thus play a crucial role in defining the NHMRC's role, responsibilities, and operational standards within the public sector.