Financial Management and Accountability Amendment Regulations 2009 (No. 5)

Overview

The Financial Management and Accountability Amendment Regulations 2009 (No. 5) were enacted to update the Financial Management and Accountability Regulations 1997, reflecting legislative changes and ministerial decisions concerning the status of various agencies under the Financial Management and Accountability Act 1997 (FMA Act). This was achieved by the Minister for Finance and Deregulation under the authority of the FMA Act, which mandates the regulation-making power to prescribe matters necessary for the proper management of public money and property. The primary objective of these regulations was to align the prescribed agencies with current legislative and operational realities, ensuring the FMA Act's provisions appropriately govern the financial management practices of relevant entities. The Amendment Regulations updated the Principal Regulations to reflect the renaming of the Australian Customs and Border Protection Service, and the establishment of the Australian Transport Safety Bureau, Fair Work Australia, and the Office of the Fair Work Ombudsman as prescribed agencies under the FMA Act. Simultaneously, the regulations removed Biosecurity Australia, the Dairy Adjustment Authority, the Office of the Workplace Ombudsman, and the Australian Fair Pay Commission Secretariat from the list of prescribed agencies, in accordance with recent legislative amendments that transferred their functions to other entities or abolished them altogether. These changes were designed to streamline the regulatory framework, ensuring it accurately represents the current landscape of agencies subject to the FMA Act.

Scope and Application

The Financial Management and Accountability Amendment Regulations 2009 (No. 5) are subsidiary legislation made under the Financial Management and Accountability Act 1997 (FMA Act). These regulations amend the Financial Management and Accountability Regulations 1997 to reflect legislative changes and ministerial decisions concerning the establishment, abolition, or renaming of prescribed agencies. The Amendment Regulations have a Commonwealth jurisdiction and apply to prescribed agencies within the FMA Act framework. This encompasses entities responsible for managing public money and property, including statutory authorities and government departments. The regulations came into effect in stages, with Regulations 1 to 3 and Schedule 1 commencing on 1 July 2009, and Regulation 4 and Schedule 2 commencing on 31 July 2009. The amendment includes the insertion of new agencies such as the Australian Transport Safety Bureau, Fair Work Australia, and the Office of the Fair Work Ombudsman, while removing others like Biosecurity Australia, the Dairy Adjustment Authority, the Office of the Workplace Ombudsman, and the Australian Fair Pay Commission Secretariat. The Australian Crime Commission was also inserted into Schedule 3 of the Principal Regulations, thereby modifying the application of the FMA Act to it as a prescribed law enforcement agency for operational money.

Key Provisions

The Financial Management and Accountability Amendment Regulations 2009 (No. 5) introduce significant changes to the Financial Management and Accountability Regulations 1997 (Principal Regulations), primarily in response to legislative changes and ministerial decisions. Regulation 1 names these regulations, while regulation 2 specifies the commencement dates: Regulations 1 to 3 and Schedule 1 took effect on 1 July 2009, and regulation 4 and Schedule 2 commenced on 31 July 2009. Regulation 3 and 4 state that the schedules amend the Principal Regulations by updating the list of prescribed agencies under the Financial Management and Accountability Act 1997 (FMA Act). This amendment reflects the establishment, abolition, or renaming of certain agencies. The obligations and requirements imposed by these regulations are primarily concerned with the accurate identification and management of prescribed agencies under the FMA Act. The updated list ensures that Chief Executives and officials of these agencies are subject to the proper management of public money and public property as stipulated by the FMA Act. This includes agencies such as the Australian Transport Safety Bureau, Fair Work Australia, and the Office of the Fair Work Ombudsman, which are newly prescribed by the Amendment Regulations. Conversely, agencies such as Biosecurity Australia, the Dairy Adjustment Authority, the Office of the Workplace Ombudsman, and the Australian Fair Pay Commission Secretariat have been removed from the list of prescribed agencies, reflecting their abolition or reassignment of functions to other departments. In terms of breaches and penalties, the FMA Act itself outlines the consequences for non-compliance with its provisions. While the Amendment Regulations do not introduce new offences, they ensure that the proper framework is in place for the enforcement of the FMA Act. Non-compliance by Chief Executives and officials of prescribed agencies could potentially result in civil or criminal consequences, including fines and imprisonment, depending on the severity of the breach. The FMA Act provides for penalties that can be applied in cases of mismanagement or misuse of public funds, with maximum penalties outlined in the relevant sections of the Act. The Amendment Regulations ensure that the scope of prescribed agencies under the FMA Act remains current and reflective of legislative changes. By amending the Principal Regulations to include new agencies and remove obsolete ones, these regulations facilitate the effective management and accountability of public funds and property. Compliance with the updated list is crucial for maintaining the integrity of financial management within prescribed agencies.