EXPLANATORY STATEMENT
Select Legislative Instrument 2009 No. 329
Issued by the authority of the Minister for Finance and Deregulation
Financial Management and Accountability Act 1997
Financial Management and Accountability Amendment Regulations 2009 (No. 7)
The Financial Management and Accountability Act 1997 (FMA Act) provides a framework of rules for the proper management of public money and public property by Chief Executives and officials of FMA Act agencies.
Subsection 65(1) of the FMA Act provides that the Governor-General may make regulations prescribing matters required or permitted by the FMA Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the FMA Act.
Section 5 of the FMA Act provides that for the purposes of the FMA Act, a prescribed Agency means a body, organisation or group of persons prescribed by the Regulations for the purposes of that definition. Agencies are currently prescribed in Schedule 1 to the Financial Management and Accountability Regulations 1997 (the Principal Regulations).
The Regulations amend Schedule 1 to the Principal Regulations to prescribe the Australian National Preventive Health Agency (ANPHA) as a new Statutory Agency under the Public Service Act 1999 (PS Act). The Australian National Preventive Health Agency Act 2009 establishes ANPHA from 1 January 2010, to provide evidence-based policy advice on preventive health, and to administer social marketing and other health- related programs.
The Regulations also amend Schedule 1 to the Principal Regulations to update the prescribed Agency details of the Australian Sports Anti-Doping Authority (ASADA). ASADA is an existing prescribed Agency under the FMA Act and a Statutory Agency under the PS Act established by the Australian Sports Anti-Doping Authority Act 2006. Its role is to administer the Australian Government’s sports anti-doping program. The changes to the Principal Regulations reflect the changes to ASADA’s governance structure commencing from 1 January 2010, in accordance with the Australian Sports Anti-Doping Authority Amendment Act 2009.
The FMA Act specifies no conditions that need to be met before the power to make the Regulations may be exercised.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
In accordance with section 17 of the Legislative Instruments Act 2003, consultation was undertaken with the Department of Health and Ageing.
The Regulations commence on 1 January 2010.
Overview
The Financial Management and Accountability Amendment Regulations 2009 (No. 7), issued under the authority of the Minister for Finance and Deregulation, amend the Financial Management and Accountability Regulations 1997 to update the list of prescribed agencies under the Financial Management and Accountability Act 1997. The purpose of these amendments is to incorporate the Australian National Preventive Health Agency (ANPHA) as a new statutory agency, reflecting its establishment under the Australian National Preventive Health Agency Act 2009 to provide evidence-based policy advice on preventive health and administer health-related programs. Additionally, the Regulations update the details of the Australian Sports Anti-Doping Authority (ASADA) to align with its revised governance structure under the Australian Sports Anti-Doping Authority Amendment Act 2009. The enactment of these Regulations ensures that the financial management framework continues to appropriately encompass new and restructured agencies within the public sector.
Scope and Application
The Financial Management and Accountability Amendment Regulations 2009 (No. 7) pertain to the Financial Management and Accountability Act 1997, which governs the appropriate management of public funds and assets by Chief Executives and officials of designated agencies. These regulations extend the scope of prescribed agencies to include the Australian National Preventive Health Agency (ANPHA) and update the details of the Australian Sports Anti-Doping Authority (ASADA). ANPHA, established by the Australian National Preventive Health Agency Act 2009, aims to provide evidence-based policy advice on preventive health and administer related health programs. ASADA, established under the Australian Sports Anti-Doping Authority Act 2006, is tasked with administering the Australian Government's sports anti-doping program. The regulations are necessary to reflect the new governance structure of ASADA as per the Australian Sports Anti-Doping Authority Amendment Act 2009, and they come into effect on 1 January 2010.
Key Provisions
The Financial Management and Accountability Amendment Regulations 2009 (No. 7) under the Financial Management and Accountability Act 1997 (FMA Act) primarily serve to update and expand the list of prescribed agencies under the FMA Act by amending Schedule 1 of the Financial Management and Accountability Regulations 1997 (Principal Regulations). These regulations establish the Australian National Preventive Health Agency (ANPHA) as a new Statutory Agency under the Public Service Act 1999 (PS Act) and update the details of the Australian Sports Anti-Doping Authority (ASADA) to reflect changes in its governance structure. The purpose of these amendments is to ensure that the financial management and accountability framework of the FMA Act appropriately encompasses new and existing agencies involved in public health and sports integrity.
The Regulations impose specific obligations and requirements on ANPHA and ASADA as prescribed agencies under the FMA Act. For ANPHA, the obligations include adhering to the financial management and accountability standards set out by the FMA Act, ensuring the proper management of public money and public property, and maintaining transparency and accountability in its operations. For ASADA, the Regulations require the agency to implement the updated governance structure, which aligns with the changes mandated by the Australian Sports Anti-Doping Authority Amendment Act 2009. Both agencies must ensure compliance with the FMA Act, including the preparation and presentation of financial statements and the maintenance of proper records and accounts.
Breaches of the requirements set out in the FMA Act and the Financial Management and Accountability Amendment Regulations 2009 (No. 7) can result in both civil and criminal consequences. Under the FMA Act, individuals who fail to comply with the financial management and accountability standards may face civil penalties, including fines. The maximum penalty for each offence varies depending on the nature of the breach but can be significant. Additionally, officers of the prescribed agencies who are responsible for the management and administration of the agencies' finances and who fail to comply with the FMA Act may be subject to criminal penalties, including imprisonment and fines. The severity of these penalties underscores the importance of adherence to the financial management and accountability standards outlined in the FMA Act.