Financial Management and Accountability Amendment Regulations 2008 (No. 4)

Overview

The Financial Management and Accountability Amendment Regulations 2008 (No. 4) were enacted to align the governance structures of the Australian Accounting Standards Board (AASB) and the Auditing and Assurance Standards Board (AUASB) with the Financial Management and Accountability Act 1997 (FMA Act). These regulations were introduced to address the need to transfer the AASB and AUASB from the Commonwealth Authorities and Companies Act 1997 to the FMA Act, reflecting their new roles and responsibilities as prescribed agencies under the FMA Act. The policy objective of these regulations is to ensure that the AASB and AUASB, now operating under the FMA Act, adhere to the same financial management standards and accountability frameworks as other Commonwealth entities. This legislative change was made in response to the Governance Review Implementation (AASB and AUASB) Act 2008, which facilitated the transition of these boards to the FMA Act regime. The regulations were issued under the authority of the Minister for Finance and Deregulation and were subject to consultation with relevant departments and bodies as required by the Legislative Instruments Act 2003.

Scope and Application

The Financial Management and Accountability Amendment Regulations 2008 (No. 4) apply to the Office of the Australian Accounting Standards Board (AASB) and the Office of the Auditing and Assurance Standards Board (AUASB), which have been prescribed as agencies under the Financial Management and Accountability Act 1997 (FMA Act). This legislative amendment follows the transfer of these bodies from the Commonwealth Authorities and Companies Act 1997 to the FMA Act, as stipulated by the Governance Review Implementation (AASB and AUASB) Act 2008. These regulations ensure that the AASB and AUASB are subject to the financial management and accountability framework provided by the FMA Act, which governs the proper management of public money and public property by Chief Executives and officials of FMA Act agencies. Notably, the Boards of the AASB and AUASB will not be required to prepare financial statements; instead, these will be prepared by the respective offices on their behalf. The Amendment Regulations were issued in accordance with the Legislative Instruments Act 2003, and consultation was undertaken with relevant stakeholders, including the Department of the Treasury and the former CAC Act bodies, due to the exclusive impact on government agencies.

Key Provisions

The Financial Management and Accountability Amendment Regulations 2008 (No. 4) (the Amendment Regulations) implement changes to the governance arrangements of the Australian Accounting Standards Board (AASB) and the Auditing and Assurance Standards Board (AUASB) by prescribing these entities under the Financial Management and Accountability Act 1997 (FMA Act). The main operative sections of these Regulations involve the prescribing of AASB and AUASB as agencies under the FMA Act, as stipulated in section 5 of the FMA Act. This amendment aligns with the provisions outlined in the Governance Review Implementation (AASB and AUASB) Act 2008, which transferred the governance of AASB and AUASB from the Commonwealth Authorities and Companies Act 1997 to the FMA Act. The Amendment Regulations impose certain obligations and requirements on the prescribed agencies, including the Office of the Australian Accounting Standards Board and the Office of the Auditing and Assurance Standards Board. These obligations are primarily concerned with financial management and accountability under the FMA Act. Specifically, while the Boards of AASB and AUASB themselves are not required to prepare financial statements, these will instead be prepared by the respective offices acting on behalf of the Boards. This ensures that the financial activities of AASB and AUASB are adequately managed and reported in accordance with the FMA Act. In terms of compliance and consequences, the Amendment Regulations do not explicitly state any specific offences, penalties, or civil/criminal consequences for breaches. However, as the AASB and AUASB are now subject to the FMA Act, any failure to comply with the financial management and accountability requirements stipulated in the FMA Act could potentially lead to enforcement actions under that Act. The FMA Act includes provisions for enforcement and compliance mechanisms, which could result in penalties for non-compliance, although the specific penalties would be determined in accordance with the provisions of the FMA Act itself.