Financial Management and Accountability Amendment Regulations 2011 (No. 1)

Overview

The Financial Management and Accountability Amendment Regulations 2011 (No. 1) were enacted to address the need for integrating civilian specialists working under the Australian Civilian Corps into the financial management framework of the Financial Management and Accountability Act 1997 (FMA Act). These specialists, who are engaged temporarily for work in crisis environments overseas, were previously not explicitly covered under the FMA Act. The Regulations were introduced by the Minister for Finance and Deregulation, pursuant to subsection 65(1) of the FMA Act, which allows for the prescription of matters necessary for carrying out or giving effect to the Act. The policy objective of these amendments was to ensure that all employees, including those engaged under the Australian Civilian Corps Act 2011, are subject to the financial management arrangements prescribed in the FMA Act, thus enhancing the accountability and proper management of public resources. Consultation with relevant officers at AusAID was conducted, and it was determined that a Regulatory Impact Statement was not necessary due to the minimal impact on business and individuals.

Scope and Application

The Financial Management and Accountability Amendment Regulations 2011 (No. 1) pertain to the Financial Management and Accountability Act 1997, which establishes the rules for the proper management of public funds and property by Chief Executives and officials within agencies governed by the FMA Act. The Regulations amend the Financial Management and Accountability Regulations 1997 to include employees of the Australian Civilian Corps as officials within the Australian Agency for International Development (AusAID). These employees are civilian specialists temporarily employed by the Commonwealth to work in crisis environments overseas. By incorporating the Australian Civilian Corps employees into the definition of "employee" under the FMA Regulations, these personnel are now subject to the financial management arrangements stipulated in the FMA Act. The Regulations also reorder the list of Acts under the definition of "employee" and update the description of AusAID to include persons engaged under section 19 of the Australian Civilian Corps Act 2011. The changes were made after consultation with relevant AusAID officers, and a Regulatory Impact Statement was deemed unnecessary due to the low regulatory impact of the amendments. The Regulations are effective from the commencement of section 3 of the Australian Civilian Corps Act 2011.

Key Provisions

The Financial Management and Accountability Amendment Regulations 2011 (No. 1) introduce specific amendments to the Financial Management and Accountability Regulations 1997, primarily concerning the inclusion of the Australian Civilian Corps within the regulatory framework. Under the Financial Management and Accountability Act 1997 (FMA Act), Chief Executives and officials of designated agencies are subject to rules ensuring the proper management of public money and property. Section 65(1) of the FMA Act empowers the Governor-General to make regulations that are required or necessary for the Act's execution. The Regulations amend the FMA Regulations to classify Australian Civilian Corps employees as officials within the Australian Agency for International Development (AusAID). These Regulations make significant changes to the definition of "employee" in the FMA Regulations, incorporating individuals engaged under the Australian Civilian Corps Act 2011. This inclusion aligns the financial management practices of Australian Civilian Corps employees with those of other Commonwealth employees, ensuring they adhere to the financial management arrangements prescribed by the FMA Act. Additionally, the Regulations reorder the list of Acts under the definition of "employee" from alphabetical to chronological order, enhancing clarity and consistency in the regulatory text. The Regulations also amend the description of AusAID to explicitly include persons engaged under section 19 of the Australian Civilian Corps Act 2011. This amendment ensures that all employees of AusAID, including those from the Australian Civilian Corps, are uniformly governed by the financial management provisions outlined in the FMA Act. These changes were developed after consultation with relevant officers at AusAID, ensuring that the agency's prescribed status and operational requirements were accurately reflected in the regulatory framework. In terms of obligations, the Regulations impose the same financial management responsibilities on Australian Civilian Corps employees as on other officials within FMA Act agencies. This includes adherence to financial reporting, accountability, and audit requirements. The Regulations ensure that these employees are subject to the same standards of financial management and oversight as other Commonwealth employees, maintaining the integrity and accountability of public funds used in crisis environments overseas. Breaching the provisions of the FMA Act or the FMA Regulations can lead to various civil and criminal consequences. While the Regulations themselves do not specify penalties, the FMA Act provides for offences and penalties for non-compliance. For instance, unauthorised expenditure or misuse of public funds can result in criminal charges, with potential penalties including fines and imprisonment. Additionally, civil penalties may apply for breaches of financial management requirements, with the severity of penalties depending on the nature and extent of the breach. The precise penalties are determined by the courts, taking into account the specific circumstances of each case.