Financial Management and Accountability Amendment Regulations 2007 (No. 5)

Overview

The Financial Management and Accountability Amendment Regulations 2007 (No. 5) were enacted to amend the Financial Management and Accountability Regulations 1997. This was done in response to the creation of the Office of the Workplace Ombudsman and the Workplace Authority on 1 July 2007, as prescribed by the Workplace Relations Amendment (A Stronger Safety Net) Act 2007. The issue addressed by these Regulations was the outdated listing of the Office of Workplace Services (OWS) in the Principal Regulations, which needed to be rectified to reflect the current organisational structure. The Regulations were issued under the authority of the Minister for Finance and Administration, and they ensure that the list of prescribed agencies in Schedule 1 of the Principal Regulations is updated accordingly. The policy objective is to maintain an accurate and current framework for the proper management of public money and public property by aligning the regulatory definitions with the current administrative setup.

Scope and Application

The Financial Management and Accountability Amendment Regulations 2007 (No. 5) amend the Financial Management and Accountability Regulations 1997 to reflect the legislative changes arising from the creation of two new agencies, the Office of the Workplace Ombudsman and the Workplace Authority, which replaced the Office of Workplace Services (OWS). The FMA Act applies to prescribed agencies, which include bodies, organisations, or groups of persons that are prescribed by regulations, such as the OWS, which was previously included in Schedule 1 of the Principal Regulations. These regulations are necessary for carrying out or giving effect to the FMA Act and provide a framework for the proper management of public money and public property by Chief Executives and officials of FMA Act agencies. The Regulations commenced on the day after they were registered on the Federal Register of Legislative Instruments, and they do not require further consultation as they are of a minor or machinery nature and do not substantially alter existing arrangements. The removal of OWS from Schedule 1 of the Principal Regulations reflects the changes made by the Workplace Relations Amendment (A Stronger Safety Net) Act 2007, which prescribed the new agencies in Schedule 1 but did not remove OWS.

Key Provisions

The Financial Management and Accountability Amendment Regulations 2007 (No. 5) introduce several key amendments to the Financial Management and Accountability Regulations 1997. The most notable change is the removal of the Office of Workplace Services (OWS) from the schedule of prescribed agencies (Regulation 3, Schedule 1, Item [1]). This amendment aligns the regulations with the recent legislative changes that established the Office of the Workplace Ombudsman and the Workplace Authority to replace OWS. These changes reflect the government's restructuring of workplace services agencies. The amendments impose specific obligations on the entities governed by the Financial Management and Accountability Act 1997. These entities must now comply with the new regulations that prescribe the Office of the Workplace Ombudsman and the Workplace Authority as the recognised agencies. As a result, Chief Executives and officials of these agencies must ensure that their financial management and accountability practices conform to the requirements of the FMA Act and its regulations. This includes maintaining proper records, ensuring transparency in financial dealings, and adhering to the prescribed governance frameworks. Failure to comply with the Financial Management and Accountability Act 1997 and its regulations can result in various consequences, including both civil and criminal penalties. The Act allows for enforcement actions against agencies and individuals who breach its provisions. Civil penalties may include fines, while criminal penalties could involve imprisonment or substantial fines, depending on the severity of the breach. The specific penalties are detailed within the FMA Act, but they serve as a deterrent to ensure adherence to the prescribed financial management standards. The Regulations were made under the authority of the Minister for Finance and Administration and came into effect on the day after they were registered on the Federal Register of Legislative Instruments (Regulation 2). The process of creating these Regulations involved consultation with relevant departments, such as the Department of Employment and Workplace Relations. Given that the Regulations are of a minor or machinery nature and do not substantially alter existing arrangements, no further consultation was deemed necessary. This streamlined approach ensures that the legislative changes are implemented efficiently while maintaining the integrity of the financial management framework.