Financial Management and Accountability Amendment Regulations 2008 (No. 1)

Overview

The Financial Management and Accountability Amendment Regulations 2008 (No. 1) were introduced to update and amend the Financial Management and Accountability Regulations 1997, which are subsidiary legislation under the Financial Management and Accountability Act 1997. Enacted by the Australian Parliament, the FMA Act establishes rules for the management of public money and property by Chief Executives and officials of agencies covered by the Act. The 2008 Regulations were made under the authority of the Minister for Finance and Deregulation and aim to ensure the regulations remain current with administrative changes and accurately reflect the current organisational structure. These amendments include updating references to the former Department of Finance and Administration to the Department of Finance and Deregulation, adjusting terminology to align with the Public Service Act 1999, and incorporating the new Murray-Darling Basin Authority to manage water resources in the Murray-Darling Basin. The regulations were developed with consultation from relevant entities, such as IP Australia and the Department of Environment, Water, Heritage and the Arts, ensuring they reflect current administrative practices and needs.

Scope and Application

The Financial Management and Accountability Amendment Regulations 2008 (No. 1) are subordinate legislation that apply to various agencies prescribed under the Financial Management and Accountability Act 1997 (FMA Act). These agencies include entities such as IP Australia and the newly established Murray-Darling Basin Authority, which are responsible for the management of public money and property. The Regulations primarily serve to update and refine the administrative framework for these agencies by making necessary adjustments following changes in administrative arrangements and the renaming of the Department of Finance and Administration to the Department of Finance and Deregulation. The scope of these Regulations extends to correcting and clarifying certain delegations of powers, ensuring that the FMA Act continues to operate effectively within the updated governmental structure. Geographically, these Regulations apply nationally, given their connection to the FMA Act, which is a Commonwealth Act. They do not establish new exclusions or thresholds but rather refine existing provisions to maintain the integrity and efficiency of financial management across prescribed agencies. The Regulations also reflect the abolition of the former Department of Industry, Tourism and Resources, ensuring that IP Australia remains appropriately referenced. The commencement dates for the Regulations vary, with most provisions taking effect immediately upon registration, while specific provisions related to the Murray-Darling Basin Authority align with the commencement of relevant sections in the Water Act 2007.

Key Provisions

The Financial Management and Accountability Amendment Regulations 2008 (No. 1) primarily focus on making administrative amendments to the Financial Management and Accountability Regulations 1997, as required due to changes in administrative arrangements and the establishment of new agencies. These amendments are consequential to the December 2007 changes to administrative arrangements and the creation of the Murray-Darling Basin Authority. Regulation 3 of the Principal Regulations, which originally referred to the Department of Finance and Administration, has been updated to refer to the Department of Finance and Deregulation, reflecting its renaming on 3 December 2007. Similarly, the expression “Secretary to the Department” in regulation 3 has been amended to “Secretary of the Department”, in line with the Public Service Act 1999. Regulation 26 has also been clarified to allow Chief Executives to subdelegate both "powers or functions" delegated to them by the Finance Minister, rather than just "powers". Furthermore, the Regulations have updated references to the former Department of Industry, Tourism and Resources, which was abolished on 3 December 2007, and now refer to IP Australia as an agency. The Director-General of IP Australia continues to be the Chief Executive of IP Australia for the purposes of the FMA Act. Additionally, the Regulations prescribe the new Murray-Darling Basin Authority for the purposes of the FMA Act. The obligations imposed on the agencies and entities governed by these Regulations include adhering to the updated references and definitions provided, ensuring that the administrative changes reflect the current departmental structure and responsibilities, and maintaining compliance with the requirements of the Financial Management and Accountability Act 1997. Agencies must ensure their financial management practices align with the provisions outlined in the Act and Regulations, particularly in terms of delegation of powers and functions by the Finance Minister and the Secretary of the Department. The Murray-Darling Basin Authority, as a newly prescribed agency, must also comply with these financial management requirements to effectively manage water resources in the Murray-Darling Basin. There are no specific offences, penalties, or civil/criminal consequences outlined in the Regulations themselves. However, any breaches of the Financial Management and Accountability Act 1997 or its Regulations could result in civil or criminal consequences depending on the nature of the breach. For instance, breaches of the FMA Act could lead to disciplinary actions against officials, financial penalties, or even criminal charges if the breach involves fraudulent or corrupt conduct. The exact penalties would depend on the severity of the breach and would be determined under the relevant sections of the FMA Act. It is important for agencies and their Chief Executives to ensure strict compliance with the Act and Regulations to avoid any potential penalties or consequences.