Financial Management and Accountability Amendment Regulations 2007 (No. 2)

Overview

The Financial Management and Accountability Amendment Regulations 2007 (No. 2) were enacted to address gaps in the regulatory framework concerning the management of public money and public property, specifically by updating the names of certain Commonwealth offices and establishing the Private Health Insurance Ombudsman (PHIO) as a prescribed Agency under the Financial Management and Accountability Act 1997 (FMA Act). This legislative instrument was issued by the Minister for Finance and Administration in accordance with subsection 65(1) of the FMA Act. The primary policy objective of these Regulations is to ensure alignment and consistency in the naming conventions of Commonwealth offices and to integrate the PHIO within the regulatory framework, thereby enhancing governance and accountability. The Regulations amend the Financial Management and Accountability Regulations 1997 to reflect these changes, ensuring that the PHIO is recognised as a financially autonomous entity under the FMA Act.

Scope and Application

The Financial Management and Accountability Amendment Regulations 2007 (No. 2) are a legislative instrument issued under the authority of the Minister for Finance and Administration to amend the Financial Management and Accountability Regulations 1997 (Principal Regulations) in relation to the Financial Management and Accountability Act 1997 (FMA Act). These Regulations apply specifically to Australian Government agencies and focus on two key amendments: the renaming of the Commonwealth Ombudsman Office to the Office of the Commonwealth Ombudsman and the establishment of the Private Health Insurance Ombudsman (PHIO) as a prescribed agency under the Principal Regulations. These amendments align the naming conventions with other similar bodies and move the PHIO governance in alignment with executive management arrangements consistent with the FMA Act. The Regulations, which came into effect on different dates for each amendment, are intended to ensure that these agencies operate under the proper management of public money and public property as stipulated by the FMA Act.

Key Provisions

The Financial Management and Accountability Amendment Regulations 2007 (No. 2) introduce significant changes to the governance and naming conventions of certain Australian government agencies, as per section 65(1) of the Financial Management and Accountability Act 1997 (FMA Act). Specifically, Regulation 1 sets the title of these Regulations, while Regulation 2 outlines their commencement dates. The amendment concerning the Commonwealth Ombudsman Office, which changes its name to the "Office of the Commonwealth Ombudsman", commenced on the day after the Regulations were registered on the Federal Register of Legislative Instruments. On the other hand, the amendment concerning the Private Health Insurance Ombudsman (PHIO) commences on the Ombudsman conversion time, which is defined in subsection 27(1) of the Private Health Insurance (Transitional Provisions and Consequential Amendments) Act 2007. Under these Regulations, the Financial Management and Accountability Regulations 1997 are amended as per Schedules 1 and 2. Schedule 1 removes the Commonwealth Ombudsman Office from item 120 of the Principal Regulations and inserts the Office of the Commonwealth Ombudsman after item 137AA. This ensures consistency in naming conventions with other similar bodies, such as the Office of the Official Secretary to the Governor-General and the Office of the Inspector-General of Intelligence and Security. Schedule 2, which commences on the Ombudsman conversion time, inserts item 140AC to prescribe the PHIO as comprising the Private Health Insurance Ombudsman mentioned in section 238-1 of the Private Health Insurance Act 2007 and the staff mentioned in section 253-45 of the same Act. The PHIO remains an independent statutory office holder, financially autonomous from the Department of Health and Ageing under the FMA Act for the proper management of public money and public property within its control or custody. The Regulations impose obligations and requirements on the agencies they govern, ensuring that the Office of the Commonwealth Ombudsman and the PHIO adhere to the FMA Act's framework of rules for the proper management of public money and public property. The agencies must ensure transparency, accountability, and proper financial management, as per the provisions of the FMA Act. The amendments aim to streamline governance arrangements and align them with executive management structures, as recommended by Mr John Uhrig AC's report on the corporate governance of Commonwealth statutory authorities and office holders. Failure to comply with the provisions of the FMA Act and these Regulations may result in civil or criminal consequences. The specific penalties for non-compliance are not detailed in the Explanatory Statement but would be in line with the penalties prescribed under the FMA Act. The FMA Act provides for various offences, including breaches of financial management and accountability provisions, which may result in fines and, in some cases, imprisonment. The maximum penalties for these offences depend on the severity of the breach and the specific provision violated. It is essential for the agencies governed by these Regulations to adhere to the stipulated obligations and requirements to avoid potential legal consequences.