Financial Management and Accountability Amendment Regulations 2008 (No. 5)

Overview

The Financial Management and Accountability Amendment Regulations 2008 (No. 5) were enacted to update the governance structure of the Murray-Darling Basin Authority, reflecting its absorption of the functions previously managed by the Murray-Darling Basin Commission. This change aligns with the intergovernmental agreement on the Murray-Darling Basin Reform, which was signed by the Council of Australian Governments to establish a new governance framework for the Murray-Darling Basin. The regulations were issued under the authority of the Minister for Finance and Deregulation and are intended to ensure that the proper management of public money and public property by Chief Executives and officials of FMA Act agencies is maintained during this transition. The policy objective is to streamline the governance of the Murray-Darling Basin while upholding the standards set forth in the Financial Management and Accountability Act 1997.

Scope and Application

The Financial Management and Accountability Amendment Regulations 2008 (No. 5) pertain to the management of public money and public property by the Chief Executives and officials of agencies subject to the Financial Management and Accountability Act 1997 (FMA Act). These regulations are applicable to any prescribed agencies, which are bodies, organisations, or groups of persons designated by the regulations and listed in Schedule 1 to the Financial Management and Accountability Regulations 1997. Notably, these regulations have been modified to reflect the altered composition of the Murray-Darling Basin Authority, integrating the functions of the Murray-Darling Basin Commission as part of the Intergovernmental Agreement on the Murray-Darling Basin Reform. The regulations also provide a framework for the implementation of the FMA Act, allowing for the specification of matters necessary for its execution. The scope of these regulations is national, given the federal nature of the FMA Act and the overarching agreement among Australian governments. Any exclusions or exemptions from the application of these regulations are not specified in the explanatory statement, but they are subject to the broader provisions of the FMA Act and any relevant subordinate instruments.

Key Provisions

The Financial Management and Accountability Amendment Regulations 2008 (No. 5) (Amendment Regulations) primarily amend the composition of the Murray-Darling Basin Authority (MBDA) to reflect its new governance structure, as per the Intergovernmental Agreement (IGA) on Murray-Darling Basin Reform signed by the Council of Australian Governments. Regulation 1 of the Amendment Regulations specifies the new membership of the MBDA to ensure it aligns with the requirements of the IGA. Regulation 2 makes a consequential amendment to the definition of "MBDA" in the Financial Management and Accountability Regulations 1997 (Principal Regulations). Regulation 3 ensures that the Principal Regulations continue to apply to the MBDA, now that its functions have been absorbed from the Murray-Darling Basin Commission. These changes are intended to streamline the governance and management of the Murray-Darling Basin under the new regime established by the IGA. The Amendment Regulations impose specific obligations on the MBDA, particularly concerning its governance structure and the manner in which it must operate under the FMA Act. For example, the new composition of the MBDA, as prescribed by the Amendment Regulations, must reflect the intergovernmental agreement and its associated governance framework. The MBDA is required to adhere to the financial management and accountability standards outlined in the FMA Act, ensuring that public money and property are managed properly. The Amendment Regulations also require the MBDA to comply with any other relevant regulations and directives issued by the Minister for Finance and Deregulation or other relevant authorities. The overarching aim is to ensure that the MBDA operates efficiently and effectively within the framework established by the IGA and the FMA Act. The Amendment Regulations do not explicitly state any new offences or penalties for breach. However, any failure by the MBDA or its members to comply with the FMA Act or the regulations made under it could result in civil or criminal consequences. Under the FMA Act, offences related to improper management of public money or property can attract significant penalties. For instance, section 67 of the FMA Act provides for penalties of up to 10,000 penalty units for serious breaches, which translates to a substantial financial penalty given that one penalty unit is currently AUD 222. Additionally, individuals found guilty of certain offences may face imprisonment. The precise consequences would depend on the specific nature of the breach and the provisions of the FMA Act that are contravened.