EXPLANATORY STATEMENT
Select Legislative Instrument 2006 No. 351
Minute No. 24 of 2006 - Minister for Finance and Administration
Subject - Financial Management and Accountability Act 1997
Financial Management and Accountability Amendment Regulations 2006 (No. 9)
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 Regulation prescribes the Australian Commission for Law Enforcement Integrity (ACLEI). The Law Enforcement Integrity Commissioner Act 2006 established the Office of the Integrity Commissioner – an independent statutory office appointed by the Governor-General and responsible for investigating allegations and suspicions of corruption in Commonwealth law enforcement agencies.
As a prescribed agency, ACLEI is financially autonomous from the Attorney‑General’s Department (AGD). The Commissioner, as Chief Executive of ACLEI, is directly accountable under the FMA Act for the proper management of public money and public property.
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 have been made to commence on the commencement of Sections 3 to 224 of the Law Enforcement Integrity Commissioner Act 2006.
The amendment Regulation only affects Australian Government agencies, and consultation has therefore included relevant agencies such as AGD and the Office of Regulation Review, who have advised that the Regulation Impact Statement is not required.
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. 9)
Regulation 1 - Name of Regulations
This regulation provides that the title of the Regulations is the Financial Management and Accountability Amendment Regulations 2006 (No. 9).
Regulation 2 - Commencement
This regulation provides for the Regulations to commence on the commencement of Sections 3 to 224 of the Law Enforcement Integrity Commissioner 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 107
Item 107AA is inserted to prescribe ACLEI, which comprises the staff members mentioned in section 11 of the Law Enforcement Integrity Commissioner Act 2006.
The Integrity Commissioner is the Chief Executive for the purposes of the FMA Act.
The proposed Regulations also insert a reference to Note B of Schedule 1 to the Principal Regulations. The reference indicates that ACLEI is also a Statutory Agency for the purposes of the Public Service Act 1999.
Overview
The Financial Management and Accountability Amendment Regulations 2006 (No. 9) were enacted to amend the Financial Management and Accountability Regulations 1997, expanding the scope of agencies covered under the Financial Management and Accountability Act 1997. This amendment was necessitated by the establishment of the Australian Commission for Law Enforcement Integrity (ACLEI) under the Law Enforcement Integrity Commissioner Act 2006. The objective of the amendment is to ensure that ACLEI, an independent statutory office responsible for investigating allegations and suspicions of corruption in Commonwealth law enforcement agencies, is included as a prescribed agency under the Act, thereby ensuring that it adheres to the financial management and accountability standards set forth by the legislation. The Regulations were made under the authority of subsection 65(1) of the Financial Management and Accountability Act 1997, and they commenced on the commencement of sections 3 to 224 of the Law Enforcement Integrity Commissioner Act 2006.
Scope and Application
The Financial Management and Accountability Amendment Regulations 2006 (No. 9) amends the Financial Management and Accountability Regulations 1997 to prescribe the Australian Commission for Law Enforcement Integrity (ACLEI) as an agency under the Financial Management and Accountability Act 1997 (FMA Act). This amendment ensures that ACLEI, being established by the Law Enforcement Integrity Commissioner Act 2006, is recognised as a prescribed agency for the purposes of the FMA Act. As a prescribed agency, ACLEI operates with financial autonomy from the Attorney-General’s Department and its Chief Executive, the Commissioner, is directly accountable for the proper management of public money and public property. These regulations apply solely to Australian Government agencies, and no Regulation Impact Statement was deemed necessary following consultations with relevant agencies. The Regulations came into effect on the commencement of Sections 3 to 224 of the Law Enforcement Integrity Commissioner Act 2006.
Key Provisions
The Financial Management and Accountability Amendment Regulations 2006 (No. 9) primarily focus on updating the list of prescribed agencies under the Financial Management and Accountability Act 1997 (FMA Act). The main operative sections (Regulations 1 to 3) establish the title of the regulations, set the commencement date, and detail the amendments to the Financial Management and Accountability Regulations 1997 (Principal Regulations). Specifically, Regulation 3 amends the Principal Regulations by inserting a new item (item 107AA) into Schedule 1 to prescribe the Australian Commission for Law Enforcement Integrity (ACLEI) as a prescribed agency under the FMA Act.
These regulations impose obligations on the Chief Executive of ACLEI, who, as the Integrity Commissioner, is directly accountable for the proper management of public money and public property. This includes ensuring that all financial activities comply with the requirements of the FMA Act and any other applicable legislation. Additionally, ACLEI, being a prescribed agency, is required to maintain financial records and conduct audits as stipulated by the FMA Act, ensuring transparency and accountability in its financial operations.
Failure to comply with the provisions of the FMA Act can lead to civil and criminal consequences. Under the FMA Act, breaches of financial management rules can result in disciplinary action against public officers, including dismissal or suspension. Furthermore, serious breaches may lead to criminal charges, with penalties including fines and imprisonment. The precise penalties depend on the nature and severity of the offence, but they can be significant, reflecting the importance of financial integrity and accountability in public administration.